Etisalat to wire in $15bn network upgrades

To meet the demand for digital data over the next decade, Etisalat will invest $15 billion to upgrade its telecommunications networks over the next five years.

Mobile World Congress, 17 February 2010, Barcelona - HE Mohammad Hassan Omran, chairman of Etisalat poses during an Interview at the Etisalat Stand. Roger Castellon for The National

Etisalat plans to invest US$15 billion (Dh55.09bn) to upgrade its telecommunications networks over the next five years to meet the expected demand in online data usage.
Mohammed Omran, the chairman of Etisalat, said the increase in mobile video as well as machine-to-machine communications would be the main drivers of growth in the telecoms market over the next decade.
To meet that demand in the UAE and in the company's 17 other operations across the Middle East, Asia and Africa, Etisalat plans to invest significantly in fibre-optic connections and 4G, or "long-term evolution" wireless networks.
"Etisalat alone, in the UAE and other operations, we expect to invest in the next coming five years up to $15bn to enhance our networks," Mr Omran said during a keynote address yesterday at the Abu Dhabi Media Summit.
Etisalat has already invested more than Dh5bn towards a nationwide fibre-optic network and will allocate an additional Dh5bn to complete the network, Mr Omran said.
Fibre-optic connections are a method of transmitting an almost unlimited amount of digital data using pulses of light through glass cables.
The UAE has one of the highest rates of fibre-optic penetration in the world with 30.8 per cent of the country's households and businesses connected, according to the Fibre to the Home Council Europe.
Mr Omran said 7.2 billion devices would be connected by 2015 or about one device for every person in the world. But he added there would be a greater opportunity in connections such as to "smart" air conditioners, televisions and washing machines that can be managed via wireless networks.
"Many of these connected devices will be non-voice but there will be more than 15 billion machines that can be connected in the world [in 2015]," Mr Omran said.
"There is no doubt that by 2020, there will be 25 billion machines connected to the network."
Mr Omran forecast the UAE could become a digital hub where online services would be provided not only domestically but around the world to other operators.
Etisalat currently hosts data on behalf of companies including Google and Yahoo on its servers so users can surf the web faster and avoid network problems. The service is already available to other operators in the region.
"UAE is among the very few countries that has enough power and electricity to have data centres to connect not only the UAE but other countries around the world," Mr Omran said.
Irfan Ellam, a telecoms analyst with Al Mal Capital, said the connection figures Mr Omran cited were "high" but they included the completion of the UAE's fibre-optic and next-generation wireless projects.
"The telecoms landscape in the Middle East is becoming more competitive so network operators are going to have to invest or get left behind," Mr Irfan said.
"Those who invest wisely, for example Mobily in Saudi Arabia, reap the rewards."
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