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Etisalat may restructure operations
21 February 2012
Falling profits means Etisalat board aims to reduce costs and control operating expenditures
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Etisalat
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Etisalat’s board has discussed restructuring and outsourcing plans, and steps to enhance the company’s service offerings. The UAE operator may restructure its operations, in line with its aim to cut costs. The operator has proposed a 60% dividend for 2011, equal to the figure for 2010.
Etisalat has recorded declining profits in seven of the past eight quarters, with its earnings from foreign units unable to compensate for deteriorating domestic revenues originating from price competition from rival operator Du and the trend of using VoIP services for international calls. Etisalat is looking to keep up with the growth in the ICT sectors.
Globally, operators are experiencing financial difficulties due to the rising costs of technology on one hand and the falling industry revenues on the other, said Etisalat. Telecom service providers are finding it more difficult to maintain revenue levels, particularly in emerging markets, due to intensifying competition and falling prices. Etisalat indicated that this strategy was expected to provide it with time, effort and financial benefits. GTB
Further reading from Global Telecoms Business:
Etisalat looks at Libyan operators 14 Feb 2012
Etisalat plans selling African towers 02 Feb 2012
Etisalat Egypt postpones share listing 14 Oct 2011
Du to launch LTE in December 2011 06 Oct 2011
Telefónica and Etisalat enter strategic partnership 22 Jul 2011