A Tale of Communication Rev

8/2/2019 A Tale of Communication Rev.

1/21

American University of Ras Al Khaimah

Advanced Business Models

Dr. Mohammed Al Neyadi

BUSN 498

Presented By:Mona Mohammed Barhoum

1


2/21

Table of Contents

A Tale of Communication Revolution ....................................................................................................4The Story Of A Nation ............................................................................................................................5

Etisalats Logo tale ..................................................................................................................................6Commitment ....................................................................................................................................6

Culture shifts .............................................................................................................................. .....6

Inside Etisala UAE ..................................................................................................................................7Etisalats Business Unites .......................................................................................................................8Etisalats Vision UAE .........................................................................................................................8

A world where peoples reach is not limited by matter or distance......................................................8

Etisalats Mission UAE .......................................................................................................................8

Extend peoples reach to the beyond...................................................................................................8

Etisalats ValuesUAE ..........................................................................................................................9Etisalats Contribution to the UAE Community .....................................................................................9The African Land Of Natural Elements ................................................................................................11Inside Etisalat Nigeria .......................................................................................................................12Corporate Social Responsibility Nigeria ..........................................................................................12

The Vision Of Etisalats CSR...Nigeria ................................................................................ ..... ..... ...13

Etisalats CSR Mission... Nigeria ........................................................................................ ..... ..... ....13

Analysis & Criticisms ...........................................................................................................................14The Blocking Controversy ....................................................................................................................15BlackBerry Dispute ...............................................................................................................................16Etisalat Annual Report 2010 .................................................................................................................16Conclusion .............................................................................................................................................18

Abstract

2


3/21

Etisalat is one of the largest telecommunications companies in the world and the leading

operator in the Middle East and Africa, headquartered in the UAE. Etisalat

is the Middle East's largest operator and the GCC's third largest

corporation. With a market value of approximately Dhs. 84 billion (USD 23

billion) and annual revenues of over Dhs. 31 billion (USD 8.5 billion)

Etisalat is today on the verge of being numbered amongst the top tenoperators in the world.

Etisalat is a multinational, blue chip organization with operations in

eighteen countries across the Middle East, Africa and Asia, servicing over

140 million customers out of a total population of approximately two

billion people. An estimated 2 million people benefit from regular work

supplying Etisalat or its customers, including 53,000 who are directly

employed by the company. Etisalat now has access to a population of

more than two billion and its satellite network provides services over twothirds of the planet's surface.

This paper is dedicated to reveal the managerial diversity that can exist

within one multinational company as Etisalat. This paper unwraps a

comparison between Etisalat headquarters in the UAE and its operating

branch within Nigeria; in terms of vision, mission statement and most

importantly Etisalats social responsibility. I strongly believe that for a

business to survive and gain a significant market share in our emerging

world, it is highly vital to repay the community that contributed in the

success of a business. This concept is called the corporate socialresponsibility which constructs the foundation of modern management.

3


4/21

A Tale of Communication Revolution

Telecommunications is a general term for a vast array of technologies that send information over

distances. Mobile phones, land lines, satellite phones and voice over Internet protocol are all

telephony technologies, just one field of telecommunications. Radio,

television and networks are a few more examples of telecommunication.

While most people associate telecommunications with modern

technologies, the strict definition of the term encompasses primitive and

even ancient forms of telecommunication. Among these is the use of smoke

signals as a kind of visual telegraph. Puffs of smoke were time-released by

smothering a fire with a blanket, then quickly removing and replacing the blanket. Widely used by

the American Indians, smoke signals could communicate short messages over long distances,

assuming a clear line of sight.

Other forms of early telecommunications include relay fires or beacons. Used for mostly in warfare,

relay fires required a handful of men posted along a range of hilltops, with the last man closest to the

area where troop movement was expected. When armies were spotted in the distance, he would light

a bonfire. The fire could be seen from a good distance away by the next man in the relay, who would

in turn light his own bonfire, and so the fires were lit in succession along the range, creating an

effective telecommunications signal that traveled back over several miles in a relatively short period

of time. Finally, the last man in the relay would light a beacon to signal his army below that the

opponent was en-route.

Throughout the 19th century, telecommunications devices became more sophisticated with the

advent of electricity, leading to the telegraph, Morse code, and signal lamps. A signal lamp, the

optical version of the telegraph, is a powerful lamp with shutters that block the light in long or short

durations to translate to the dots and dashes of Morse code. A heliograph is another optical

telegraph, a mirror used to reflect light to mimic a signal lamp.

In the 20th century, telecommunications reached beyond our planet. In June 1969, the world

watched and listened as astronauts walked on the moon. Twenty years later, in August 1989, we

4
http://www.wisegeek.com/what-is-telephony.htmhttp://www.wisegeek.com/what-is-morse-code.htmhttp://www.wisegeek.com/what-is-morse-code.htmhttp://www.wisegeek.com/what-is-morse-code.htmhttp://www.wisegeek.com/what-is-a-heliograph.htmhttp://www.wisegeek.com/what-is-a-heliograph.htmhttp://www.wisegeek.com/what-is-telephony.htmhttp://www.wisegeek.com/what-is-morse-code.htmhttp://www.wisegeek.com/what-is-morse-code.htmhttp://www.wisegeek.com/what-is-a-heliograph.htm


5/21

would see pictures of Neptune arrive back from the Voyager2 spacecraft, riding radio waves that

traveled over roughly three billion miles (4.8 billion km) to reach us in a matter of a few hours.

Strides in telecommunications have changed the world immeasurably. While pockets of humankind

were once isolated from each other, people now have multiple ways to see and hear what is

occurring on the other side of the world in real time. Satellite technology, television, the Internet and

telephony keep the globe connected in a humming buzz of interactive voices and pictures. In short,

telecommunications has come a long way from smoke signals.

The Story Of A Nation

The UAE Federation was established in 1971. The seven emirates which united together gave birth

to the UAE are; Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ras Al Khaimah, and

Fujairah. The UAE has an open economy with one of the worlds highest per capita income and with

a sizeable annual trade surplus. Since 1973 the UAE has undergone a profound transformation to a

modern state with a high standard of living. The UAE membership in international organizations

reveals its commitment to open trade policies, market economy and unlimited support for the private

sectors role and initiative. The UAE economy is considered to be among the Gulfs most liberal

with no foreign debt, living standards in UAE are amongst the highest in the world with an economy

widely credited for being the most diversified in the region.

Today, the UAE has emerged as one of the most advanced nations in the world in terms of

infrastructure, economic opportunities and per capita income. With its business-

friendly modus operandi, high standards of living, tax-free regime and sizable

annual trade surplus, it is looked upon as a modern state with an appealing mix of

East and West, a most favored destination for settlers from the Middle East

Diaspora, South Asia and further afield. By progressively increasing spending on

job creation and infrastructure expansion, the UAE government is opening up itsutilities to greater private sector involvement too.

The UAE has one of the most advanced telecommunication networks in the world. In terms of

physical and electronic infrastructure, the UAE is among the best equipped nations in the world.

With the exception of rail transit, transportation infrastructure is highly developed, with an extensive

5
http://www.wisegeek.com/what-is-voyager-2.htmhttp://www.wisegeek.com/what-are-radio-waves.htmhttp://www.wisegeek.com/what-is-voyager-2.htmhttp://www.wisegeek.com/what-are-radio-waves.htm


6/21

network of roads, six international airports, and numerous world class port facilities along the

Persian Gulf. Telecommunications in the UAE are also among the best in the world. The two

telecommunications corporations in the UAE are Etisalat and Emirates Integrated

Telecommunications Company (EITC), operating under the trade name du.

Etisalats Logo tale

In its 30th year of operations, Etisalat, which enjoyed a monopoly, has made the UAE one of the

most wired nations in the region, with over 4.7 million subscribers, touching a 100 per cent mark, a

first in the region. Around 41.5 per cent of the population of the UAE have access to the internet.

Commitment

The new identity was unveiled at an event in Dubai, which was attended by senior dignitaries and

government officials, business leaders and media representatives.

"Etisalat is as vibrant as ever today, as it moves into its fourth decade of operation, and our new

identity strengthens our commitment towards achieving new levels of excellence in services offered

to our valued customers," said Mohammad Al Qamzi, CEO of Etisalat. "Our intention is to be the

best telecom operator not only locally, but also regionally and internationally. And our vision is tobe truly global. We have a stated aim of being among the top 20 telecom operators in the world by

2010. We are entering new markets across the world and what you see from today onwards is not

just a change of logo, but a significant shift at the core of the Corporation and a new direction for

Etisalat as a whole."

Culture shifts

The new identity reflects Etisalat's values of transparency, optimism, openness, simplicity andreliability. The green color in the logo signifies life, growth and renewal.

Green is the national color of the UAE, and Etisalat has a long and close association with its home

nationthe UAE. "By undergoing a culture shift at every level, we will establish ourselves as a truly

6


7/21

global telecom operator, a true ambassador of the UAE success story in the international market." Al

Qamzi added.

Inside Etisala UAEEtisalat is a UAE-based telecommunications services provider, currently operating in 18 countries

across Asia, the Middle East and Africa. As of November 2009, Etisalat is the 13th largest mobile

network operator in the world, with a total customer base of 100 million. A major player in this

public-private enterprise is Etisalat, the telecommunications giant of the UAE. The company has

been providing the latest telecommunications services including fixed and mobile telephony, TV and

internet to UAE since 1976. It has built up a modern telecom infrastructure and established itself as

an innovative and reliable operator in the region. Ranked among the Financial Times Top 500

Corporations in the world in terms of market capitalization and the

6th largest company in the Middle East in terms of capitalization

and revenues, Etisalat stands tall, a compelling factor in UAE's

advancement and modernization.

Etisalat is one of the Internet hubs in the Middle East (AS8966), providing connectivity to other

telecommunications operators in the region. It is also the largest carrier of international voice traffic

in the Middle East and Africa and the 12th largest voice carrier in the world. As of October 2008,

Etisalat has 510 roaming agreements covering 186 countries and enabling BlackBerry, 3G, GPRS

and voice roaming. Etisalat operates Points of Presence (PoP) inNew York, London, Amsterdam,

Frankfurt, Paris and Singapore. To this end, Etisalat at the root of the nation's vision for

globalization is the largest contributor outside the oil sector to the UAE Federal Government's

development programs worldwide. Etisalat has also won accolades from across the region for its

nationalization programme.

Etisalat aims to be one of the leading telecommunication companies in the world through its various

services including value added services and 3G services. Etisalat today has reached a 150% mobile

penetration level in the UAE with 6.3million customers, 1.32 million fixed line customers, and 2.5

million internet users. These achievements confirm that the UAE has the highest mobile penetration

level in the UAE.

7
http://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/Telecommunicationshttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Autonomous_system_(Internet)http://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/BlackBerryhttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/GPRShttp://en.wikipedia.org/wiki/Point_of_presencehttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Parishttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/UAEhttp://en.wikipedia.org/wiki/Telecommunicationshttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Autonomous_system_(Internet)http://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/BlackBerryhttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/GPRShttp://en.wikipedia.org/wiki/Point_of_presencehttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Parishttp://en.wikipedia.org/wiki/Singapore


8/21

Etisalats Business Unites

In addition to its telecommunication services provider and carrier unit, Etisalat incorporates multiple

business units (under the umbrella of Etisalat Services Holding LLC) whose headed by the Indian

HR head Recruitment operations, that is Miss. Keerti Saha that support the telecom's operations and

offer services to other operators and organizations, namely: training and consultancy

services(Etisalat Academy), SIM/smart card manufacturing and payment solutions (Ebtikar), data

clearing house services (EDCH), peering/voice and data transit (Emirates Internet Exchange -

EMIX), call center (The Contact Centre),cable TV (eVision), as well as submarine cable laying

services (eMarine). Etisalat is a major investor in Thuraya, a satellite geo-mobile communication

systems provider.

Etisalats Vision UAE

A world where peoples reach is not limited by matter or distance...

"Any sufficiently advanced technology is indistinguishable from magic, said Arthur C. Clarke in

his book Profiles of the Future, and with its vision of a connected world, Etisalat wants to create

nothing short of magic. As a telecommunications company, Etisalat has the power to keep people

connected at all times, anywhere in the world. And that's exactly the vision of the company- to

enable its customers to be unfettered by matters of distance. Etisalat envisages a world where its

people will effortlessly move around the world, staying in touch with family, making new friends as

they go, and developing new interests on the way. Businesses big and small, empowered by Etisalat,

no longer limited by distance, are able to reach new markets. With innovative technologies, UAE is

open to fresh opportunities across the globe, allowing the supply of new goods and services to

everyone who wants them, further strenghthening its position as a nascent strategic power

worldwide.

Etisalats Mission UAE

Extend peoples reach to the beyond...

Etisalat's mission is to extend people's reach. To this end, Etisalat is actively developing advanced

networks that will enable people to develop, to learn and to grow; to enable them to reach each

8
http://en.wikipedia.org/wiki/Thurayahttp://en.wikipedia.org/wiki/Thurayahttp://en.wikipedia.org/wiki/Thuraya


9/21

other, businesses to find new markets and everyone to fulfill their potential. Across the UAE, and

increasingly in international markets, Etisalat's mission of enabling its customers to enjoy the latest

services and technologies in telephone, TV and Internet services has largely succeeded.

Etisalats ValuesUAE

Energy: Etisalat values and nurtures the energy and dynamism needed to achieve the very

best in business, rendering it immensely capable of taking on future challenges and

opportunities with ease.

Openness: As a company, Etisalat is welcoming, sociable and friendly to customers,

suppliers and employees, communicating with precision and clarity, always honest and fair

in business dealings.

Enablement: Etisalat's aim is to open up opportunities, to actively help people reach their

goals, and always deliver what they say they will.

Etisalats Contribution to the UAE Community

Etisalat's Vice President of Corporate Communications, Ahmed Bin Ali, affirmed that as a leader in

Corporate Social Responsibility (CSR), Etisalat plays a critical role towards social responsibility and

solidarity. During his presentation at the Arab Corporate Environmental Responsibility Summit, Bin

Ali highlighted Etisalat's sponsorship programs of various social, cultural and educational events

which reflect the organization's involvement in all 15 markets where it operates.

He added: "Etisalat is committed to launching creative initiatives to enable the development of the

local communities. Etisalat's leadership is highly acknowledged whether through the services it

launches or through Etisalat's direct involvement with social activities."

Etisalat has launched environment-friendly services such as electronic payments and payment

through the mobile as well as credit transfer services which do not require paper-driven processes.

Additionally, Etisalat has sponsored several projects such as the Youth and Environment Forum as

well as the opening of hundreds of collection points for old mobile phones to reduce the effect of

their waste on the environment. Earlier this year, Etisalat was the main sponsor of Clean the World

9


10/21

Campaign which aims to preserve and clear the environment. This campaign was held in

collaboration with the United Nation Development Program under the slogan One World One

Environment. Etisalat is also the main partner of the Al Ain Flower Festival and exhibition and has

sponsored the 3rd Dates Festival.

Etisalat is once again participating in this exhibition to demonstrate its commitment towards

Emiratization, which has played an important role in the development of the company. The

Tawdheef Training and Employment Week aims to provide the opportunity for job seekers to know

about recruitment options and training programs available in the UAE. Abdul Aziz Al Sawaleh,

Chief Human Resources Officer at Etisalat, said: As one of the largest national companies, Etisalat

provides UAE nationals with special opportunities, facilities and training. Etisalat trains and recruits

a large number of UAE nationals every year and today, more than 3600 Etisalat employees are from

the UAE - 36% of the total number of Etisalat staff. Around 75% of higher management positions

are also filled by UAE nationals. Amongst Etisalats senior management team, 95% originate from

the United Arab Emirates. Etisalat is committed to participating at recruitment fairs across the

country. Through its participation, Etisalat presents its many departments, openings and training

courses that are available to both university and Higher Colleges of Technology students. This

reflects the companys commitment provide opportunities to UAE nationals, he added. Etisalat has

developed training programmes which last from one up to two years, for high school graduates,HCT and university graduates. On these courses trainees can acquire the required skills for a

fulfilling career at Etisalat.

Bin Ali highlighted Etisalat's sponsorship programs of various social, cultural and educational events

in the UAE:

"One of our objectives at Etisalat is to help fulfill the potential of our nation and its people. To be a catalyst

driving growth, developing a world-class economy and a hub for trade, tourism and entrepreneurship," said

Bin Ali. "We do this in many ways, through our technical expertise in the development of a fully connected

community, but also through our many CSR initiatives. This is work that we can be proud of, and which

our customers, partners and other stakeholders should be proud to be working with us to achieve."

The company also organizes extensive training programmes for its existing employees. More than

6000 people from Etisalat staff attend the Etisalat Academy and other external training centers every

year. Mr. Al Sawaleh confirmed that Etisalat deeply believes that every UAE citizen has a critical

10


11/21

role to play in the society. That is why the company has adopted a strategy based on three main

principles which includes;

Motivating staff,

Creating a healthy work environment to ensure that employees remain in their jobs,

Preparing qualified nationals who are able adapt to the latest technology developments.

To achieve these goals Etisalat has developed recruitment programmes for high school graduates,

universities and higher college graduates, as well as participants in Young Leader and Medium

Leadership programs, Sawaleh continued. As it expands its operations in the region and worldwide,

Etisalat remains committed to attract national qualifications. Etisalat contributes in preparing a

generation of telecom professionals who are now supporting the companys expanding plans in new

markets such as KSA, Egypt, Sudan, Pakistan and Africa. Etisalat today works in 18 markets across

Asia and Africa.

Mohammad Omran highlighted Etisalats commitment to environmental initiatives. Etisalat has

successfully combined the welfare of the environment and advanced technology by investing in fiber

optic networks can enhance the energy efficiency of our networks and reduce our carbon emissions.

We are also implementing green building policies to reduce operating costs.

Bin Ali also demonstrated during his presentation Etisalat's environment-friendly initiatives such as

electronic payments and payment through the mobile as well as credit transfer services which do not

require paper-driven processes. Also, Etisalat's participation in several Environment projects and

initiatives such as the Envirophone initiative that witnessed the opening of hundreds of collection

points for old mobile phones to reduce the effect of their waste on the environment.

The African Land Of Natural Elements

Nigeria is regarded as one of the most strategically important markets in Africa. With the largest

population in the region and mobile penetration of around 22%, it is backed by strong economicgrowth of 13% (nominal GDP growth in 2007). Its untapped addressable market represents high

growth potential for mobile telephone services.

The license, originally granted to Mubadala Development Company, is a 15-year renewable

Universal Access Service License (UASL) and enables Etisalat to reach the countrys population of

11


12/21

over 146 million people. This will be the largest investment for us in a Greenfield operation in Sub-

Saharan Africa. It will give us an opportunity to take advantage of significant synergies with current

operations in West Africa.

Inside Etisalat Nigeria

Emerging Markets Telecommunication Services (EMTS), trading as Etisalat, is a Nigerian company

duly incorporated under the laws of Nigeria in partnership with Mubadala Development Company

and Etisalat of the United Arab Emirates. Incorporated in Nigeria as a private company, it acquired

the Unified Access License from the Federal Government in January 2007. The license includes a

mobile license and spectrum in the GSM 1800 and 900 MHz bands at a price of $400million (Four

Hundred Million U.S. Dollars). Etisalat acquired a 40% stake in EMTS and is now the operator of

the Unified Access License.

In Nigeria, Etisalat made the first official call on its network on the 13th of March 2008 in the

presence of dignitaries from the Nigerian Communications Commission (NCC) and the Senate of

the Federal Republic of Nigeria.

Etisalat is set to demonstrate its core values ofoptimism, simplicity and caring for which it has

become known in other markets to the Nigerian people as it offers them world-class

telecommunications services. It is investing heavily in the Nigerian economy as well as in its own

human resources. From day-one of its operations in Nigeria, it has put in place various skills

acquisition and training programs to enable its people offer outstanding quality and services to

Nigerians.

Etisalat is also committed to taking its place amongst leading corporate citizens in Nigeria by

making wide-impact and sustainable social investments. Etisalat believes that apart from offering a

solid platform of technological innovation, sustainable investment is the bedrock of stellar growth

and economic stability. Indeed, at Etisalat the future is a world in which technology extends peoples

reach on all fronts.

Corporate Social Responsibility Nigeria

12


13/21

Etisalatss corporate Social Responsibility (CSR) within Nigeria represents a complete and

wholesome relationship between us and our stakeholders.

It reflects our responsibility to:

Create value through sustainable products and services;

Minimize our environmental impact and;

Contribute to the wellbeing of the overall society, while ensuring that the ability of our

stakeholders to meet their needs and aspirations is not compromised.

The Vision Of Etisalats CSR...Nigeria

To create a sustainable economic and social impact through limitless reach

Etisalats CSR Mission... Nigeria

To extend the reach of the Nigerian people by:

by providing socially responsible products and services enabling sustainable growth

through our projects in areas of leadership-education, education, health and

environment

building meaningful relationships with our stakeholders through engagement; an

indication that with

optimism and a caring attitude, we can all surpass boundaries

Thirty four Nigerian universities, most of them old generation universities, have been engaged by

telecommunication company, Etisalat Nigeria, to train Nigerians in computer, electrical engineering

and business administration. The beneficiaries of the courses, according to the company, would be

selected on merit. Sales Director of Etisalat Nigeria, Tolu Ojo, who disclosed this in Owerri, assured

that candidates from many states would benefit from the programme provided they are qualified.

Ojo, who was responding to plans by the company to involve fully in social responsibility agenda of

the company, named schools in the South East like University of Nigeria Nsukka (UNN); Federal

University of Technology (FUTO), Owerri; Abia State University (ABSU), Uturu among many

others as those selected under the Etisalat University-Training Educational Programme. Ojo also

stated that Etisalat would in addition to all the programmes of development it is currently executing13


14/21

in the country enhance its environment-friendly posture to ensure that Nigeria improves its

environment for healthy living. The press briefing held in Owerri was to mark the introduction of the

company's 25 kobo promo for South East and South South geopolitical zones. Said the sales

director, "as a company, Etisalat believes in healthy living of the habitants in its operational areas".

Etisalat Nigeria has been applauded for its support for the Adopt a School Initiative (ASI), a Public

Private Partnership between Lagos State Government and business organizations. GSM service

providers have responsibility to the local communities in which they do business, and I must

commend Etisalat for embracing corporate social responsibility in its short period of operation in the

country. Your support for educational development with the adopt-school initiative is quite

commendable. We hope that Etisalat will roll out this initiative to cover other states in the country as

they continue to roll out their activities across Nigeria. In his remark, Etisalat Nigeria Chief

Executive Officer, Mr. Steve Evans said that Etisalat is committed to reaching out to its immediate

environment by embarking on programmes with meaningful impact on the lives of the people who

are also part of the companys customers. According to him, Etisalat is committed to giving back to

the community in which it operates. We have began demonstrating our commitment to the country

by partnering with the Lagos State government on the adopt-a-school initiative.

Analysis & Criticisms

Etisalat has been criticized for many reasons over the past years. Some of the issues include:

Their pricing strategies: Above average telephone charges, especially in the case of

international calls (although this, as of recently, can be attributed to the Telecommunications

Regulatory Authority which prohibits price-wars between the UAE's telephone companies)

although they have special offers that compensate for the not so high-price calls.

Websites blocking: Proxy blocks websites usually through an

automated system which is prone to mistakes; though, the company

doesn't take long time to respond to questions and inquiries about

the blocked websites.

14


15/21

Absolutely no customer consideration: The nature of the routing Etisalat uses means many

users go through a single IP address when accessing the internet, in cases of vandalism, this

means many users can be banned due to a single users activities

Websites blocking:Blocking all Voice Over IP (VoIP) communication which allows users

cheaper international calls, such as Skype

Upload speed: If you pay for a 2Mb connection, the speed can be as high as approx.

250kB/s and upload speed as high as 90kB/s. 4 Mb connections is expected to give you

double the download transfer rate at approx. 450kB/s, but the upload speed will remain the

same.

Very poor customer service: actually they don't have any customer care ethics, which we

personally experienced and had our share of disrespect. As we went to Etisalats main branch

RAK, we have been tossed around from one place to another waiting for the managers to

show up. While employees ignored us and played around with their BlackBerry, we waited

unnoticed.

Monopoly: End user effects by their monopoly.du almost follow them.

Blocking media sharing websites: Blocking YouTubes videos and user pages.

The Blocking Controversy

Etisalat has blocked thousands of websites on the web due to various

reasons; the statement on the "ban screen" states that websites may be banned

due to their content contravening the religious, cultural, political, and moral

values of the United Arab Emirates. These websites include:

Pornography

The entire Israel TLD (.il)

Certain social-networking websites (such as Orkut,Multiply, last.fmetc.)

Certain media-sharing websites (such as flickr, and user pages on YouTube)

Anti-Islamic websites Certain websites which cover aspects of the United Arab Emirates in a critical manner

such as uaeprison.com, hetq.am and arabtimes.com

Anonymous proxy sites.

"Most" File-sharing sites (torrents etc.)

Certain Homosexual websites.

15
http://www.bookrags.com/TLDhttp://www.bookrags.com/.ilhttp://www.bookrags.com/Orkuthttp://www.bookrags.com/Orkuthttp://www.bookrags.com/Multiply.comhttp://www.bookrags.com/Last.fmhttp://www.bookrags.com/Last.fmhttp://www.bookrags.com/Flickrhttp://www.bookrags.com/YouTubehttp://www.bookrags.com/TLDhttp://www.bookrags.com/.ilhttp://www.bookrags.com/Orkuthttp://www.bookrags.com/Multiply.comhttp://www.bookrags.com/Last.fmhttp://www.bookrags.com/Flickrhttp://www.bookrags.com/YouTube


16/21

To many people, there is no understandable reason to block some websites as there are no

reasons given. Based upon the directions of the Telecommunications Regulatory Authority of the

United Arab Emirates, Etisalat blocks some services, such as VoIP. Skype is one such service

blocked by Etisalat. Many see this action as a move to protect the profits of the telecommunications

industry. Etisalat's "we'll do whatever we want" attitude towards its customers is starting to annoy a

lot of people and many of them are now looking at other alternatives to access the Internet. Etisalat

has also been known to temporarily block earlier accessible torrent websites and throttling P2P in

order to ease load on their servers. The effect of blocking is unclear, as sites are accessible to people

using IP spoofing software and with some sites increasing the amount of visits from the UAE only

after blocking.

BlackBerry DisputeIn July 2009, Etisalat pushed an update to BlackBerry devices operating on

the telecom's national network, citing performance improvements.

However, it was later discovered that the update contained eavesdropping

software, developed by the US-based software development company SS8,

which specializes in electronic surveillance. It is reported that the software

enabled the company to monitor and forward communications on BlackBerry devices to their

servers.

Research in Motion, Blackberry's parent company, acknowledged that the patch was a form of

spyware, and issued a removal patch on July 20. On December 27, 2009, Etisalat and the rival

network Du agreed to block the number of websites for all Blackberry users.

Etisalat Annual Report 2010

Etisalat continues to maintain a strong financial position supported by sustainable cash flows, aconservative balance sheet, and ample liquidity that enabled it to fund core strategic investments,despite the challenging market conditions.

16
http://www.bookrags.com/VoIPhttp://www.bookrags.com/Skypehttp://en.wikipedia.org/wiki/BlackBerryhttp://www.bookrags.com/VoIPhttp://www.bookrags.com/Skypehttp://en.wikipedia.org/wiki/BlackBerry


17/21

The following table shows selected historical data for the year ended December 31, 2009 and

2010.

Selected Financial Data

As of December 31 or for the year ended 2009 2010 Change %Income Statement Data Revenue 31,334 31,929 2%Operating Profit before federal royalty 17,651 14,627 -17%Net Profit 8,836 7,631 -14%Balance Sheet Data Total assets 71,379 75,607 6%Total liabilities 30,989 33,042 7%Total equity 40,389 42,565 5%Net debt (1) (6,808) (3,877) -43%Cash Flow Data Net cash flow from operating activities 10,125 7,807 -23%Net cash flow used for investing activities (6,771) (4,853) -28%Net cash flow used for financing activities (3,407) (4,372) 28%Earnings per share and dividends per share data

EPS (AED) 1.12 0.97 -13%DPS (AED) 0.60 0.60 0%Number of issued shares (million) 7,187 7,906 10%

Notes: 1. Net debt represents Borrowings less Cash and cash equivalents

For the fiscal year ended December 31, 2010, Etisalat revenues totalled AED 31,929 million,

representing growth of 2% compared to 2009. Operating profit before federal royalty stood at AED14,627 million, an impressive operating margin of 46%. Net profit for the year (attributable to equity

holders of the Corporation) was AED 7,631 million after federal royalty, taxes and net finance

income. Group revenues increased slightly in spite of the challenges faced by the UAE operation

owing to Etisalats diversified portfolio. However, earnings margins have decreased due to a

sizeable increase in operational costs, the effect of an increase in contribution to Group results from

international operations that operate in lower-margin industries compared to the UAE. A number of

these international operations are still at an early stage of operation and are expected to improve

their contribution as they mature.

In terms of cash flows, Etisalat generated AED 7,807 million in net cash from operating activities in

2010. Uses of cash included AED 5,760 million to fund capital expenditure, representing a capital

17


18/21

intensity ratio of 18%, primarily related to international network expansion and fibre network roll-

out in the UAE. Compared to 2009, capital spending fell by AED 1,004 million.

Borrowings and financing obligations increased by AED 1,899 million to reach AED 6,400 million,

while cash and equivalents remained sturdy at AED 10,277 million.

This represents a healthy net cash position of AED 3,877 million. In addition, Etisalat successfully

extended the Corporations average debt maturity through a recent refinancing of Etisalat Misrs

loan facility. During the last quarter of 2010, the Corporation listed its Global Medium Term Note

(GMTN) and Sukuk programmes on the London Stock Exchange for USD 7 billion and USD 1

billion, respectively. This listing will give Etisalat more flexibility when accessing capital markets to

fund potential investments at more preferential rates.

Etisalat managed to maintain its investment-grade credit rating and positive outlook from the three

major credit rating agencies, despite the downturn of the local economy. In May 2010, S&P

upgraded Etisalats long-term credit rating to AA- due to strong liquidity and financial flexibility,

while Fitch and Moodys reaffirmed their credit rating post annual credit review. Moodys had

downgraded Etisalats rating to Aa3 earlier in the year due to its revised view of the UAE sovereign

ratings and Government support. The Corporation paid AED 4,492 million in total dividends, an

increase of 15% from the same period last year. This figure is composed of 2009 final dividends of

AED 0.35 per share and 2010 interim dividends of AED 0.25 per share. The Board of Directors has

proposed final dividends of AED 0.35 per share, bringing the total dividends for the year to AED

0.60 per share, in line with previous years. The proposed dividend will be submitted for approval at

the Annual General Meeting of Shareholders on March 22, 2011.

Conclusion

Etisalat is also pioneering several advanced 'green' technologies and is a regional leader in

providing environmentally-friendly information and communication solutions. This includes smart

building technologies, the latest Machine-to-Machine (M2M) solutions and the deployment of

alternative power within its regional networks. Etisalat is also ensuring that its infrastructure meets

the highest international standards and its nationwide fiber-optic network in the UAE is expected to

reduce carbon emissions and energy consumption by over 80% and 70% respectively.

18


19/21

Etisalat is committed to the principles of corporate social responsibility and is partnering with many

governments and non-government organizations to increase access to education and health care via

technology. Etisalat is also well-known for its support of people with special needs. Etisalats social

responsibility was highlighted in this paper in details making it not just yet another profit seeking

company around the world! It is a shortlisted finalist in the 2011 Global Mobile Awards for its

visual contact centre service which uses 3G technology and sign language to provide support to the

hearing impaired.

Etisalat is rated by Moody's: Aa3, Standard & Poor's: AA- and Fitch Ratings: A+, some of the

highest ratings for a telecommunications company anywhere in the world. This reflects the

company's strong balance sheet, low debt position and proven long-term performance. In 2010,Etisalat reported annual Net Revenues of Dhs. 31.3 billion (USD 8.5billion) and Net Profits of Dhs.

7.6 billion (USD 2.0 billion) ranking Etisalat as one of the most profitable telecoms group in the

world.

As a result, Etisalat has been named 'Best Overall Operator' in the Middle East ten times since 2006

and was named Best International Carrier at the World Communications Awards in 2008. It has also

won numerous accolades for its innovative marketing being awarded for having the 'Best Brand',

'Best Customer Service' and 'Best CSR Programme. Etisalat's management team is also well

celebrated with its Chairman, Mohammad Omran, receiving the top accolades in 2010 at both the

International Business Awards and the World Communications Awards.

Dedicated to offering world class telecommunications services, Etisalat is investing heavily in the

Nigerian economy as well as in its own human resources. From the beginnings of its operations in

Nigeria, it has organized various programmes to train and improve the skills of the people to ensure

quality service. This has enabled Etisalat to offer innovative products and services tailored to suit the

lifestyles and meet the various needs of its growing subscriber base.

In March 2009, the NCC adjudged Etisalat as Nigeria's best network based on international quality

of service indices. This validation of the quality of the company's service came less than six months

into its commercial operations in the country. In the same year, Etisalat Nigeria was recognized as

19


20/21

the 'Brand of the Year' by City People Magazine and the National Daily Awards. Since then, Etisalat

Nigeria has won various industry and non-industry awards thus claiming a pride of place in Nigeria's

blossoming telecommunications industry.

Etisalat's values are not just reflected in its commitment to deliver quality service but are also

evident in its interactions with various stakeholder groups including the communities in which it

operates. It is making wide-impact and sustainable social investments in Education, Health and

Environment in an Endeavour to engage in initiatives that enrich and strengthen the communities it

operates in. This commitment led it to partner with the Lagos State Government in its Adopt-a-

School initiative which also earned it the Prestigious Category "A" Corporate Social Responsibility

Award of the Lagos State Government for two consecutive years; 2009 and 2010. In 2010, it was

also awarded the Most Innovative Corporate Social Responsibility Company and Youth Friendly

Corporate Social Responsibility Award for its CSR interventions.

Etisalat Nigeria continually seeks to bring easy communications to its subscribers in order to

positively contribute to the quality of their life. Its various products and services are designed with

the needs of its customers at heart. Etisalat Nigeria is thus poised to continue to provide the best

quality of service to its Nigerian subscribers as it builds on its success in the market.

20


21/21

Reference

1)http://www.etisalat.ae/index.jsp?

lang=en&type=content&currentid=91cd0df50ae7b010VgnVCM1000000c24a8c0____&contentid=61cdb6b

75b338210VgnVCM1000000c24a8c0RCRD&parentid=91cd0df50ae7b010VgnVCM1000000c24a8c0____

.

2)http://eval.symantec.com/mktginfo/enterprise/customer_successes/b-etisalat_misr_CS_20049010.en-

us.pdf.

3) http://www.ripe.net/ripe/meetings/ripe-57/presentations/Etisalat-Etisalat_DNS_Experience.pdf.

4) http://www.cityscapeglobal.com/PDF/summarypdf_sept_efm.pdf.

5) http://www.bmg.com.sa/pdf/equity/BMG%20Mobily%20Q1%2008%20Results%20Update.pdf.

6) http://www.etisalat.ae/assets/downloads/Rates/IntlIDDRates.pdf.

7) http://www.etisalat.com.ng/handbook/MASPHandbook.pdf.

8) http://www.gulfbase.com/site/interface/SpecialReport/ETISALAT_23072009.pdf.

9) http://ae.zawya.com/researchreports/shuaa/20081117_Shuaa_033119.pdf.

10) http://www.etisalat.ae/assets/docs/financial/2010/flash/review_financial_results.html

21

Documents

A Tale of Communication Rev