Abu Dhabi: Etisalat's investment in Egypt proves low-income countries will not be "left behind" in the digital revolution, etisalat Chairman Mohammad Omran said yesterday.
Since an etisalat-led consortium purchased the third Egyptian mobile lic-ence in 2006 for $3.1 billion (Dh11.4 billion), a figure regarded by analysts then as an exaggeration, the country's market has grown from 25 to almost 70 mobile and fixed communication lines per 100 inhabitants, Omran said.
"There will be some gaps (between developed and developing markets)," Omran said in a panel discussion at the Abu Dhabi Media Summit. "Average revenues per user (in developing markets) are down, some times to $4 or $3. But with the expanded customer base, the average cost comes down too."
Despite operating in 18 countries, etisalat relies on the UAE market for 90 per cent of its revenues and 98 per cent of profits. The company has said it aims to reduce its dependence on its home market to 80 per cent by 2013.
The company has made public its discontent with its Pakistani operation for ARPUs that have dropped to $3. A recent report by the Egyptian investment bank EFG-Hermes estimated Egypt's ARPUs at $5-$6, compared with the UAE's figure at $49.
Omran said the shift to high speed mobile communications will require businesses to change their revenue models. In the case of banks, for example, lenders could take advantage of mobile banking by lowering fees in the same way the music industry adapted to selling records online, he said.
Hans Vestberg, president and CEO of Ericsson, said mobile operators will have to work with content providers, technology developers and regulators to make telecommunication more accessible to everyone. Western consumers have shown the willingness to pay more for new technologies while users in developing countries give sector businesses the markets they need for expansion, he said.
