You would not think Etisalat is one of the UAE's flagship companies when taking a casual stroll through Dubai's Ibn Battuta Mall.
The telecommunications company, the largest in the UAE, has just opened a store in the ornately decorated shopping centre, itself one of the biggest in its field.
But the shop doesn't quite reflect the might of Etisalat, which last year reported revenues of Dh32.2 billion (US$8.76bn).
That's because it measures just 92 square feet and is dwarfed by most other shops in the mall, which has 1.2 million square feet of retail space.
Etisalat's new outlet - as the press release detailing its opening optimistically calls it - would better be described as a kiosk. It's the kind of place where one would expect to buy cologne or DVDs rather than interact with one of the country's largest companies.
Yet this somewhat lacklustre presence reflects a wider problem: many regional telecoms companies are bad as retailers and are missing out on opportunities because of it.
In markets such as the United States, most consumers buy mobile handsets direct from telecoms companies.
It seems counterintuitive that could be of benefit to the operators, given they often charge little or nothing for the latest smartphones.
But in markets such as the US, handsets are subsidised to entice consumers to take out 12 or 18-month contracts. That allows telecoms companies to tie customers in to higher tariffs and, in doing so, more than recoup the cost of the handset.
Two-thirds of US phone and contract sales are controlled by telecoms carriers in an industry worth about $200bn in annual revenue, according to a report last year on the telecoms retail business by the consultancy Booz & Company.
Telecoms companies in the US also benefit from sales of items such as car chargers and phone covers. According to Booz, 41 per cent of US customers buy accessories with a new phone, spending an average of $44 each.
Such is the telecoms companies' stranglehold in the US that traditional retailers are upping their game. The likes of Best Buy and RadioShack are posing a threat to their retail dominance, according to Booz.
The opposite is true in the Arabian Gulf, where regional telecoms companies handle only 2 per cent of mobile-phone sales, according to Microsoft. That means, if you live in this region, you probably paid through the nose for your smartphone because most handsets are sold in general electronics shops - without any subsidy.
Carriers such as Etisalat have made attempts to address this.
The operator offers a few handsets for free or at subsidised rates. With the carrier's most expensive price plan - which costs Dh449 a month - it gives away an iPhone 4S, HTC One X or Samsung Galaxy SIII handset.
Rival operator du, by comparison, does not offer any subsidised handsets to individual customers, although a few are available to businesses.
Both UAE telecoms companies have attempted to increase their retail presence. Etisalat now has 107 outlets in the UAE, while du has opened new stores in popular locations such as Mall of the Emirates.
But it could be too little too late. In its latest results, du said its average revenue per user for its mobile customers had declined to Dh112 per month, down from Dh124 in the last quarter of last year.
Regional telecoms companies are coming under increasing pressure to maintain revenues, partly due to high infrastructure costs and greater competition due to the rise of free calling and SMS services.
Against this backdrop, subsidising handsets looks like a sure-fire way to boost revenues as well as attract higher-spending, more loyal customers.
Opening more stores in malls and introducing better online-purchasing options will be key to this.
The region's telecoms companies should act more like retailers - and that means more than just opening a kiosk.
bflanagan@thenational.ae
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
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- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
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- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
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Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
THE LIGHT
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The specs
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Chelsea 4 (Mount 18',Werner 44', Hudson-Odoi 49', Havertz 85')
Morecambe 0
Killing of Qassem Suleimani
COMPANY%20PROFILE
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COMPANY%20PROFILE
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
The Transfiguration
Director: Michael O’Shea
Starring: Eric Ruffin, Chloe Levine
Three stars
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
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Investment raised: $4 million
The specs
Engine: 1.5-litre, 4-cylinder turbo
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Key findings
- Over a period of seven years, a team of scientists analysed dietary data from 50,000 North American adults.
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The specs
Engine: 4-litre twin-turbo V8
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Draw
Quarter-finals
Real Madrid (ESP) or Manchester City (ENG) v Juventus (ITA) or Lyon (FRA)
RB Leipzig (GER) v Atletico Madrid (ESP)
Barcelona (ESP) or Napoli (ITA) v Bayern Munich (GER) or Chelsea (ENG)
Atalanta (ITA) v Paris Saint-Germain (FRA)
Ties to be played August 12-15 in Lisbon
Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
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How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
