Etisalat, Telefonica agree on broad-base cooperation

ABU DHABI — Emirates Telecommunication Corporation, or Etisalat, and Spain’s Telefónica have signed an agreement for a broad-based cooperation.

By Haseeb Haider

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Published: Mon 25 Jul 2011, 10:58 PM

Last updated: Tue 7 Apr 2015, 4:38 AM

The partnership will allow both telecommunication companies to collaborate on a range of strategic areas given their capabilities and expertise.

The companies will strengthen their capabilities to address global industry trends and compete in each of their markets, capturing efficiencies and advancing initiatives aimed at better serving their customers needs across their respective footprints.

The two telecoms agreed to establish mechanisms to enable them draw on each other’s experience in various strategic areas, including collaboration on technological standardisation, new global technology initiatives, R&D, and new emerging products and services designed to capture the digital growth opportunities such as M2M, financial services or cloud-based services.

Both companies have also agreed to jointly work on procurement, international capacity and wholesale services as well as offering enhanced support for multinational customers of each operator taking advantage of the benefits of the Telefónica Partners Programme.

“For telecom operators, success is often determined by economies of scale, so both Etisalat and Telefonica stand to benefit from this partnership,” said Matthew Reed, a senior analyst at Informa Telecoms & Media in Dubai.

By acting together on purchasing, the two operating groups should be able to make savings on equipment and other costs,” he said. According to the agreement the partnership agreement is of immediate effect and will enable both companies to “improve efficiency, drive innovation and generate savings.”

The agreement is expected to reinforce each company’s leadership in their markets, and provide a stronger basis to compete globally in the changing telecommunications industry. The two telecoms do not compete in any of their operational markets and these benefits will be offered to most of their subsidiaries and associates over the course of the agreement.

Etisalat Group is represented in 18 countries in Africa, Asia and the Middle East, whilst Telefónica’s footprint has been established in 25 markets in Europe and Latin America.

“They Etisalat and Telefonica will also be able to share knowledge about new products and services, which are increasingly important as telecom markets become more complex and competitive. Etisalat and Telefonica both have substantial and complementary international footprints that cover emerging as well as more advanced markets,” he added.

haseeb@khaleejtimes.com



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