Spain's Telefonica, UAE's Etisalat sign partnership deal
Spanish telecommunications giant Telefonica Thursday announced a "strategic partnership" with its UAE counterpart Etisalat aimed at allowing a sharing in technology and client services.
The broad-based cooperation will also both companies "to collaborate on a range of strategic areas given their capabilities and expertise," Telefonica said in a statement.
"As a result, the companies will strengthen their capabilities to address global industry trends and compete in each of their markets, capturing efficiencies and advancing initiatives aimed at better serving their customers needs across their respective footprints."
The deal will also "enable both companies to improve efficiency, drive innovation and generate savings (and) ... establish mechanisms to enable them to draw on each others experience in various strategic areas."
It noted the two groups "do not compete in any of their operational markets and these benefits will be offered to most of their subsidiaries and associates over the course of the agreement."
The Etisalat Group is presented in 18 countries in Africa, Asia and the Middle East.
The United Arab Emirates giant reported profits of 7.6 billion dirhams ($2.07 billion, 1.44 billion euros) for 2010, down 13.6 percent.
Telefonica, the second biggest telecommunications operator in Europe behind Britain's Vodafone, is established in 25 markets in Europe and Latin America.
It posted a record net profit of 10.2 billion euros in 2010, up nearly 31 percent as weakness in Spain was offset by strong growth in the rest of Europe and Latin America.
It has announced a plan to shed 6,500 employees in Spain over the next three years.
© 2011 AFP