Etisalat, Tata sign network deal for UAE
Abu Dhabi, May 27, 2008
The UAE’s state-owned Etisalat has signed a memorandum of understanding (MoU) with India’s Tata Communications to provide enterprise grade network services in the UAE.
The alliance will significantly enhance ethernet capabilities within the UAE and consequently enable the companies to expand the array of connectivity services and value adds they bring to customers, said a statement.
Under the terms of the MoU, both companies will work together to deliver secure, scalable and flexible ethernet and other connectivity solutions. This will enable Etisalat to deliver this managed, carrier-class, global network service to its end users and customers. While through the Etisalat domestic network, Tata Communications will enhance its global coverage in the strategic location of UAE, it said.
Through this arrangement, Tata Communications and Etisalat will align their respective infrastructures to offer Global Dedicated Ethernet services and a comprehensive range of network and value-added services jointly to their customers, the statement said.
Tata Communications and Etisalat had recently announced they are joining together to deliver international money transfer services on mobile phones through Etisalat’s secure Mobile Remittance Service, with Tata Communications being the central hub for the service.
This joint initiative, along with Idea Cellular, is just the start of a comprehensive push to develop an unparalleled network proposition for customers looking for connectivity between UAE and the rest of the world, the statement added.
Abdulla Hashim, VP, Enterprise Solutions at Etisalat, said: “The partnership with Tata Communications is a strategic arrangement that will greatly extend the benefits of international connectivity to our business customers, enabling them to increase their productivity and efficiency. This will significantly expand the global footprint of our enterprise services. We also see a great opportunity for both companies to collaborate on several other fronts and leverage our joint product portfolio to create new revenue streams and serve customer needs.
“Tata Communications is privileged to work with this established leader to deliver the most robust network footprint throughout the UAE,” said Radwan Moussalli, managing director, Middle East and North Africa Region, Tata Communications. “Through joint services development, we will enhance Tata Communications’ ability to deliver unparalleled global capabilities, scalability, and performance reliability to customers worldwide who demand connectivity into the Middle East region.”
Reuters adds: Earlier this year Tata Communications, formerly Videsh Sanchar Nigam Ltd, had formed a similar partnership in China and an official told Reuters in February the company was looking for more such tie-ups in Asia and the Middle East to boost growth.
The company, which is building undersea cables between Asia and Europe, and across Asia, has said it will spend $2 billion in the next three years to expand its international presence.
Tata Communications is a former state-run overseas telecommunications monopoly that is now controlled by the Tata Group. The company has expanded its network services for companies after a sharp fall in call tariffs hit its revenue.
Etisalat has also been looking to expand overseas and has said it is looking to invest as much as $4 billion in the Indian telecoms market.
A UAE newspaper reported two weeks ago that Etisalat was eyeing an investment of $1 billion in Tata Teleservices Ltd, an affiliate of Tata Communications and India's No. 5 mobile services operator.
Etisalat has held talks with mobile firm Spice Communications for possible investment, while diversified Videocon Industries said last week the UAE firm was keen to buy a stake in its mobile operation.
The chairman of Etisalat said earlier this month it was<