Etisalat, is eyeing licences for airwaves or acquisition deals in six markets across the Middle East and North Africa, its chairman said, in a drive to boost customers.

Etisalat’s chairman Mohammad Omran affirmed that telecommunication sector has many positive aspects to look out for in 2010 and beyond. 

Omran was speaking at the ongoing Mobile World Congress 2010 in Barcelona.

He said that technology is continuously changing day-to-day due, primarily, to consumers’ needs of voice and data services and new innovations which open new possibilities.

In a session titled Strategies for Growth: Mergers and Acquisitions, Omran highlighted Etisalat’s role and experience in providing the latest technology which helps drive economic growth in the future.

He said the UAE is ranked in the top 10 amongst all nations in terms of technology availability and government readiness to adopt ICT solutions quoting the WEF annual Global IT Report 2008-09 and Global Competitiveness Report 2009-10.

“We do not acquire licenses in markets with the aim of selling these operations in a few years time,” Omran said. “Instead, we actively invest in new technologies and infrastructure to derive incremental gains over the life of our license for investors and customers alike.”

Etisalat is currently participating or investigating opportunities across North Africa and the Middle East.

Omran indicated six possible markets which would involve both the acquisition of green-field licenses within markets with low penetration levels and industry consolidation stressing that size and scale are extremely important for to avoid small operators being marginalised.

“Etisalat is in an excellent position – financially and operationally to capitalize on these opportunities,” Omran added.

Etisalat has deployed fiber-optic networks in Sudan and also in the UAE to great effect and will shortly begin offering GPON connectivity to the home with a capacity of 10Gbps shared between 32 residences –a 400  per cent increase to what is currently on offer today.

Etisalat has also started the commercial trial of LTE, an important step towards 4G. The expected date for launching LTE services in UAE is by the end of 2010. Later in the first half of this year, Etisalat will be introducing new technology which will enable downloads of up to 42mbps, which will grow to 84mbps by end of year.

Earlier this month the Abu Dhabi-based operator said it had sought approval to raise its stake in its Indian affiliate and taken control of Atlantique Telecom in Africa.

Omran was also quoted by UAE daily The National on Thursday as saying the firm was interested in buying Djezzy, the Algerian unit of Egypt's Orascom Telecom.

Orascom is currently appealing against a $597 million tax bill Algeria says Djezzy owes. It is also in the process of raising $800 million via a rights issue to cover any potential cash shortfall.

Orascom Telecom could secure $6-7 billion if it chooses to sell Djezzy, but might have to accept far less if forced out by the government, analysts told Reuters on Wednesday.

Etisalat, which this week said it had crossed the 100 million subscriber mark, operates in 18 countries, stretching from Tanzania to Indonesia and including Egypt and Saudi Arabia.

The firm submitted a bid in July for a licence in Libya and has previously indicated its interest in acquiring a company in Iraq and bidding for licences in Lebanon and Syria. It failed last year in a bid to take a stake in Meditel, Morocco's second-largest telecommunications' firm and had its licence withdrawn in Iran.

Omran told The National, Etisalat had re-entered negotiations with Korek Telecom in Iraq and for Meditel in Morocco. It was also looking to take a stake in Warid Telecom in Pakistan, currently majority owned by Abu Dhabi Group, an investment firm owned by the emirate's royal family.

It is also keen to raise its minority stake in Indonesia's Exelcomindo, Omran said.

Etisalat shares closed 1.7 per cent up on Thursday, outperforming the market, which ended 0.3 per cent higher. – Reuters