By Roger Field
State-backed telco set to make announcement to stock exchange shortly - source
Etisalat, the UAE’s largest telecoms firm, is preparing for a management shake-up, with an announcement to the stock exchange expected this week, sources said.
Arabian Business understands the changes may include the creation of a new group CEO role and a number of high-level departures at the former monopoly.
The sources said Etisalat chairman Mohammed Omran may be retiring later this year.
When contacted by Arabian Business on Monday, Omran said he had “no comment” to make.
The Abu Dhabi-listed company saw its group chief financial officer, Salem Al Sharhan, resign in April, citing personal reasons.
Omran joined the Gulf’s largest telecom company in 1977, a year after its formation, and was named chief executive in 2004. As CEO, Omran oversaw Etisalat’s rapid overseas expansion, acquiring Saudi Arabia’s second mobile license and launching fixed-line operations in Sudan.
The company, which is majority owned by a state fund, reported 7.5 million mobile subscribers across the UAE at the end of June.
Abu Dhabi has seen a string of top-level moves this year, following reports of a strategic review across all government departments.
In June, the chief executive of Abu Dhabi National Energy Co (Taqa), Abdulla Saif al Nuaimi, stepped down to focus on his role at the city’s water and electricity utility.
The long-standing chief executive of Abu Dhabi National Oil Company (Adnoc), Yousef Omair Bin Yousef, resigned in the same week to concentrate on personal business interests.
Etisalat posted a 14.9 percent fall in second-quarter net profit to AED1.59bn ($433m) amid rising operating costs and increased competition in its domestic market.
The one-time monopoly in March scrapped a $12bn bid to buy Kuwait telco Zain.
(Additional reporting by Claire Ferris-Lay)
The latest from Etisalat:
You are charged from first ring for international calls.
Try a local number - Your phone will show: "Calling" (until answered)
Try an overseas number - Your phone will show: "Connected" (from the first ring)
The telecom maestro is one of the most known regional and international figures in this part of the world. It will be sad to see him resign. Omran has well known fingerprint in developing the telecom sector in the region, bringing in the latest and the most innovative technologies. Hope this rumor is not true
They definitely need management with customer service experience in a competitive market.
With changing global scenario in the world this management had no clue that one day technology will overrule its tactics. Today you don't make overseas calls, you receive the calls from other countries as it is cheaper from there. Today we don't spend on voice communication as much as we make best use of data communication such as email/voip and www. Hightime, all the old who are buried in the myopia of marketing are made redundant and new blood who can regain the confidence of customers is brought in.
Why to shakeup? You need to bother only in a competitive market.
Etisalat is suffering lot of pain in all its overseas operations, that is not a secret for anyone. I am not sure how things are in UAE, but I suspect profitability is drying too as population and disposable income go down.
Regardless of Etisalat's apparent success with overseas acquisitions etc, spare a thought for their staff who have suffered cutbacks, redundancies, and being overworked. The huge responsibilities of chief executives surely include the welfare of their staff. I hope that the new management will create a more fulfilling and energetic working environment which will prepare the staff for real competition with the likes of Vodafone in the future.
They also quietly increased the price of SMS from 0.18 fils to .30
And if you're visiting the UAE, don't even think about roaming on Etisalat! Du is much cheaper!
A shakeup it is.......now the internet charges will go up as Etisalat will improve their broadband services and the rentals of postpaid lines will go up as an upgrade charge. News indeed. How does it bother anyone.
On other hand du is much cheeper,better and more advance.
keep it up.