Abu Dhabi: By launching new services and solutions to meet business demands for the future, Etisalat is moving ahead with network investments as part of retaining its technological leadership and commitment to its customers.
In an exclusive interview with Gulf News, Engineer Saleh Abdullah Al Abdouli, Chief Executive Officer of Etisalat said, “this year at Gitex Technology Week 2013, our theme is ‘Together we make the world Smarter’, which is in line with our overall strategy in...mobilising for a better future.”
Al Abdouli said that with the continuous investments made by Etisalat, amounting to more than Dh19 billion, for laying out the extensive FTTH (Fibre To The Home) network, the UAE has a world-class telecommunications infrastructure.
FTTH is the concept of bringing high-speed networking, digital television and telephone services to residences using fibre optic cables.
“Till date, there are 9.9 million FTTH users in the UAE. It registered a 12 per cent growth compared to last year.”
“The TRA’s (Telecom Regulatory Authority) statistics for the first-half of this year [January-June 2013] showed that the number of fixed lines grew by 72,583, active mobile subscriptions rose by 917,684 and Internet subscriptions increased by 46,319. This translates to over 990,267 new telecom subscriptions in the first half of 2013, so the market is certainly there.” he said.
GN: The year 2013 has been a revolutionary year with the launch of new technologies and collaborations on various platforms. What should we expect from Etisalat at Gitex Technology Week 2013?
Al Abdouli: Telecom operators today have a significant role in creating a successful ecosystem for communities and the world. Etisalat has set a benchmark for the industry by launching new services and solutions to meet the business demands for today and tomorrow.
This year at Gitex Technology Week 2013, our theme is ‘Together we make the world Smarter’, which is in line with our overall strategy in leading the future and mobilising for a better tomorrow. The solutions on display clearly highlight the path the smart technology of the future will take as well as the impact of the telecom industry on the economy and government services in UAE.
As a completely integrated telecom operator Etisalat will be showcasing advanced ICT solutions that cater to the futuristic requirements and at the same time enable innovation in the country.
The highlight at this year’s event is ‘Smarter World’ showcasing ‘Smarter Solutions’ and ‘Smarter Technology’. The key pillars for Etisalat at Gitex are mainly Mobility, Healthcare, Hospitality, Education, Communication, Security, Energy, Government, Finance, Computing and Business solutions.
GN: ‘Smarter Technologies’ are being adopted by countries across the globe. Where do you think UAE stands on this global map and how are you helping the country achieve this goal?
Al Abdouli: The UAE government is already playing an active role in creating a ‘Smarter’ environment by promoting digitisation initiatives across key sectors e.g. health, education, energy and financial services among others. Etisalat’s recent partnership with RTA to launch the first NoL smart touch device for Dubai commuters utilising public transport is a testimony to this growing trend.
This is in line with our long term strategy to support mGovernment and initiatives raising the profile of the country, as well as impacting the lives of the people of the UAE.
The country already possesses key fundamentals that can foster ICT industry growth and competitiveness. The nation has a mature telecommunications ecosystem. In fact, the UAE is among the countries with the highest mobile penetration worldwide, currently exceeding 170 per cent, with competitive mobile retail prices. Keeping up with this trend, Etisalat realises that the future is based on services available via smart devices.
Furthermore, the UAE has a world-class telecommunications infrastructure. This was only possible due to the continuous investments made by Etisalat of more than Dh19 billion for laying out this extensive FTTH network. Etisalat has led globally set benchmarks in laying out the largest network with investments over three times the levels of developed markets.
This has also enhanced the role of UAE, a global leader in Fibre to the Home (FTTH) coverage and investments; coverage currently stands at 80 per cent of households with high broadband penetration (65 per cent), which along with broadband speeds that are considered to be amongst the highest rates worldwide.
GN: Etisalat has invested heavily in its fibre optic network in the country. What are your future plans in increasing this investment and how do you foresee your growth in this area?
Al Abdouli: Etisalat strategic decision to invest in the fibre to the home (FTTH) project was a long-term decision as it is key in sustaining our growth and achieving business objectives, it also contributes to the development of other sectors such as education, healthcare, business, banking, and hospitality. We are moving ahead with network investments as part of our technological leadership and commitment to give our customers the best network to deliver their needs and requirements
Five years ago, Etisalat made a brave, historic and strategic decision to implement the giant FTTH project. The total length of the fibre optical network that Etisalat currently deploys all over the UAE equates to more than five times the distance between the earth and the moon, consisting of a total of 3 million km of cable being deployed all over the country.
It’s no surprise that Etisalat’s investment of Dh19 billion in infrastructure qualified the UAE to be ranked number one in fibre optic penetration ahead of South Korea, USA and other European and Asian developed nations.
GN: Telecom operators globally and regionally are transitioning from a telecom carrier to a becoming a holistic service provider. Do you think Etisalat has made this transformation?
Al Abdouli: Etisalat has always strived in building the future for our subscribers by making the right investments in the right direction. The next generation network infrastructure, connectivity, systems, service delivery platforms and an array of forward looking solutions are delivered in conjunction with our partners to satisfy the needs of business and end-users.
Etisalat has continuously committed to transforming from a national telecommunications centric flagship carrier to a regional ICT experience provider, proactively initiating and spearheading progressive plans to benefit the national economy. Etisalat is stepping up to the challenges of evolving market dynamics, changing ICT trends and the need to meet shareholder and government aspirations.
GN: With the changing dynamics of the industry, how do you see the growth strategy change for the company?
Al Abdouli: Etisalat has set a benchmark in building the most advanced network as well as providing the best services and solutions to subscribers. This was only possible due to us constantly looking for end to end customer experience and delivering value for our customers. The support of our retail and wholesale partnerships have played a significant role in bringing faster time to market solutions that will be achieved through our continuous growth initiatives.
We have to be vigilant to market trends and pre-empt the next fad, customers want higher speeds and more content. Therefore, we introduced LTE enabled services and broadband at 100 and 300 Mbps speed. We are growing by giving the customers what they want and by willing to invest aggressively for the future.
GN: With the evolution of technology, launch of path-breaking technologies and innovating products, customers have also changed their preferences, how do you keep up with this change and shift in consumer choices?
Al Abdouli: Innovation is a key to launching products and services that keep up to changing customer requirements in the country. Etisalat has enabled an environment to incubate good ideas, nurture creativity that will build a strong foundation for digital services like ICT, machine to machine (m2m) and managed services. This also gives us a competitive advantage of a superior network performance, customer experience and value of money.
Investments in best of breed technologies are essential while coming up with novel solutions and product enhancements is paramount and will generate revenues on the short and medium terms.
GN: What can customers expect from Etisalat in the near future providing them value for money in both voice and data?
Al Abdouli: Etisalat is customer centric in essence. This is a guiding principle for us in developing the best solutions for our customer base that offer the best value for money across all our offerings.
We have revamped our consumer and enterprise offerings, making them more flexible and transparent to our customer while maintaining a rewarding relationship with them. For e.g., we launched the new per second billing plan this year where local calls were offered for free, subsidisation of business tablets and enrichment of our rewards programme.
Such examples demonstrate our determination to offer products and services that meet customer needs, and are part of an overall strategy to widen the horizon of value added services offered to customers.
Innovation as well is a driving force behind our strategy for the coming years. Accordingly, we will keep introducing more innovative products and services that meet the expectations of our sophisticated customer base and enrich their experience.
GN: UAE is one of the highest in broadband penetration globally, outranking major global markets, how do you see the landscape changing and impacting the lives of UAE subscribers?
Al Abdouli: Youth, high spending capacity and access to an up-to-date infrastructure has contributed to UAE becoming one of the most wired nations in the Arab World. Today 92 per cent of Internet subscriptions at home are broadband connections.
In UAE, currently 72 per cent of individuals have an internet connection, out of which 96 per cent of connections are provided by Etisalat.
This was only possible due to the long term investments made by Etisalat and the strategic vision of the leaders in the country. Currently, more than 80 per cent of the country is covered by fibre optics.
Technology is an integral part of the lives of the UAE citizen today, which has higher penetration than developed markets.
GN: With the maturity of telecom markets in the region and UAE, what do you think are the challenges to keep the momentum of growth and maintain a sustainable increase in subscribers and revenue?
Al Abdouli: The market in the UAE has grown exponentially due to the availability of the latest devices, technology and an up-to-date network. In fact, this is also reflected in Etisalat’s growth this year, there has been an upward trend in overall revenues this year. Until date, there are 9.9 million subscribers in the UAE, which is a 12 per cent growth compared to last year.
This is also reflected in the growth of the telecom sector in the UAE, which has continuously grown at a phenomenal rate. The half-year TRA statistics for January-June 2013 show that the number of fixed lines grew by 72,583, active mobile subscriptions rose by 917,684 and Internet subscriptions increased by 46,319. This translates to over 990,267 new telecom subscriptions in the first half of 2013, so the market is certainly there.
Additionally, data usage has increased dramatically in the UAE driven by the vastly-improved Internet access from handheld devices for social media and similar media, and further developments in this area will drive our business forward. This was only possible due to Etisalat’s understanding of various data requirements and being able to launch services to meet growing consumer demand.
One of the main challenges for the sector, which we hope will be addressed very soon, is the availability of 4G-enabled handsets to populate the LTE 4G network Etisalat has installed. Once this happens, we need to efficiently manage the high volumes of mobile broadband traffic that we anticipate and are prepared for.
