Telef'onica signs Etisalat partnership deal

Etisalat has inked a deal with Spain's Telef'onica to collaborate on research and development as well as new service implementation, reports Newsday.com.

Etisalat Group is represented in 18 countries in Africa, Asia and the Middle East, while Telef'onica's footprint has been established in 25 markets in Europe and Latin America, according to Khaleej Times.

Mobile Business Briefing says through the Telef'onica Partner Programme, both telcos have agreed to jointly work on procurement, international capacity and wholesale services, as well as offering enhanced support for multinational customers.

In a statement, Telef'onica says the partnership agreement is effective immediately, and will “enable both companies to improve efficiency, drive innovation and generate savings.”

Etisalat and Telef'onica are not seen competing with each other with regard to their respective operational markets, reveals Wireless Federation.

According to The National, Matthew Reed, an analyst at Informa Telecoms and Media, says the move would allow the two telecoms firms "to combine their buying power and as a result achieve cost savings".

"It could cover things like international connectivity and equipment buying," he adds.

The partnership comes at a time of escalating costs and declining profit for Etisalat.