The recent announcement by Etisalat to lay off three per cent of its UAE workforce is a clear indication that the real effects of competition are now being felt in the UAE telecoms market, according to Frost & Sullivan.

Streamlining operations and showing a greater focus on operational efficiency is a common trend in incumbent operators as they face up to greater competition from later market entrants, it stated.

'The interesting aspect of Etisalat's operations is that while it is an incumbent in the UAE market, it is most often a market challenger in its international operations,' observed Lindsey McDonald, consultant, ICT Practice, Mena, Frost & Sullivan.

The management is therefore able to look at the issue from both sides of the coin, he noted.

Etisalat, he said, is therefore likely to benefit from the extensive operational experience gained during its tenure in the UAE allowing it to quickly establish an effective operations foundation in new markets.

Its experience as a market challenger is likely to demonstrate the benefits of having an agile operational structure, he added.

Frost & Sullivan expects a phased operational change in the UAE operations over the long term as the company positions itself to deal the increased impacts of greater competition, said McDonald.-TradeArabia News Service