Etisalat is planning further expansion of its GSM network to reach 2.3 million subscribers by end-2003 and thus finalising plans to introduce the revolutionary 3G technology and New Generation Networks (NGN) by the end of 2003, Ahmed Humaid Al Tayer, UAE Minister of Communications, said yesterday.

Also, three global telecom majors - Alcatel, Siemens and Ericsson - are in the race to secure a contract with Etisalat for providing 3G technology for which tests are scheduled to be completed by March this year.

"Today there are almost 1.9 million mobile subscribers in the UAE with a penetration of 62 mobiles per 100 inhabitants and this must surely be one of the highest anywhere in the world," he told a seminar adding that "these rates are on the increase and we think there is room for a penetration of between 70-80 per cent. Etisalat is planning further expansion of the GSM network to reach 2.3 million subscribers by end-2003."

Starting next March, Etisalat will undergo live UMTS (Universal Mobile Telecommunication Services) technology or 3G mobile technology trials, the minister told delegates at the Alcatel and Etisalat Networking Solutions Seminar.

Ali Salem Al Owais, president and CEO of Etisalat, told Gulf News on the sidelines that the three shortlisted technology providers will be completing their tests by March this year after which a selection will be made.

"The launch is scheduled for end-2003. We have ample time to select the vendor from three major equipment manufacturers - Alcatel, Siemens and Ericsson."

While an exact figure was not specified as investment in 3G technology, Al Owais said early last year Etisalat announced an investment outlay of Dh4 billion for technology upgradation and the new networks. "The 3G investment component is included in this," he said.

3G mobile technology provides mobile operators and customers numerous advantages over 2G as 3G leverages and combines IT, telecom and media, said Saleh Al Abdooli, manager, Engineering Mobile Systems, Etisalat.

"3G will not only provide high capacity and high speed for end-users but also multi-media messaging and other features," he said, adding that Etisalat will have a smooth migration from 2G to 3G technology.

Earlier this week, Etisalat launched the m-Net GPRS (general packet radio service), the latest stage on the road to 3G mobile technology. The service already has 1,000 subscribers and this number is set to grow rapidly, he added.

Data traffic is growing exponentially and by the year 2004, some 100 billion SMS' per month will take place through 3G technology, he stated.