Essays on Etisalate in the UAE - Costs of Production Case Study

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The paper "Etisalate in the UAE - Costs of Production" is a perfect example of a macro & microeconomics case study.   Etisalate is a brand name for a company in the United Arab Emirates which is called Emirates Telecommunication Corporation. This is a service provider specialized in telecommunication and operates across close to eighteen countries in the Middle East, Asia, and Africa. At the beginning of this year, Etisalate was the 15th largest company operator in the mobile network in the world. It had a customer base of above 135 million (Kirman 118).

Forbes Middle East named Etisalate as the power company in the United Arab Emirates. The company is located in Abu Dhabi which is one of the cities in the United Arab Emirates. In the year 2011 in February, Etisalate recorded net revenue of 8.4 billion US dollars (AED 31.9 billion) and net profits of 2.07 billion US dollars (AED 7.631). Etisalate is one of the only two companies providing telecommunication services in UAE; the other company is Emirates Integrated Telecom (Du) (UAE NBS, 2011) Etisalate is an internet hub in the Middle East.

It provides connectivity to other communications operations in the Middle East region. The company provides telecommunication services and carrier services. The company provides internet services. Apart from services, the company has manufactured telecommunication products such as BlackBerry Bold 7990 and BlackBerry Curve 9390, which are smartphones. The company's latest products include iPhones like 4S iPhones. The prices of the iPhones are AED 2749, AED 3149, and AED 3549 for 16GB, 32GB, and 64GB iPhones respectively (Thompson, 2009). The prices of the iPhones have not changed in the recent past since the products are still new in the market, but it is anticipated that they will decrease in due time.

The main competitor of Etisalate is Emirates Integrated Telecom (Du). The two companies are the main rivals in the telecommunication service providers. Costs of Production Costs incurred by the company include rent, maintenance costs, electricity, and warehousing. Rent as the cost to Etisalate assist in hosting the company’ s offices and other outlets that the company might have. Rental premises cannot be avoided for such a huge corporation.

Works Cited

UAE National Bureau of Statistics (UAE NBS) (2011) – economic statistics – at http://www.uaestatistics.gov.ae/ReportsByDepartmentEnglish/tabid/104/Default.aspx?M enuId=1

Thompson, Ben (21 July 2009). UAE Blackberry update was spyware, BBC. Retrieved 13 April 2012 from http://news.bbc.co.uk/2/hi/technology/8161190.stm

Kirman, Alan, "The Intrinsic Limits of Modern Economic Theory: The Emperor has No Clothes", The Economic Journal, V. 99, N. 395, Supplement: Conference Papers (1989): pp. 126-139

ETISALATE (2012) Emirates Telecommunication Company retrieved from

http://www.zawya.com/middle-east/company/profile/334652/ on April 13, 2012.

Gulfnews.com (2012) Etisalat fibre-optic network to top Dh5b, retrieved from http://gulfnews.com/business/general/etisalat-fibre-optic-network-to-top-dh5b-1.525620 on April, 2012.

AMEinfo.com (2009). Etisalat officially secures third mobile license in Iran. Retrieved from

http://www.ameinfo.com/181006.html on April 13, 2012.

Zawya Dow Jones (2012). Online trading and portal solutions – at http://www.dowjones.com/product-dj-local-languages-middleeast.asp

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