* Etisalat sees outsourcing plan completed in two years
* No UAE national employees to be let go
(Adds details, background)
By Matt Smith
DUBAI, FEB 23 - UAE telecoms operator Etisalat
will outsource network maintenance and support
services, the former monopoly said on Thursday, as part of a
restructuring plan to cut costs in the wake of profit declines.
Etisalat -- which said on Wednesday it will shut down
operations at its Indian joint venture amid a telecoms scandal
-- will shift some staff to companies providing outsourced
services, but will not let go of any UAE citizens.
The outsourcing plan will be completed in two years, it
said.
"During this time, Etisalat will sign agreements with
several international and local specialised partners ... to
conduct regular maintenance on its telecommunications networks,"
the Abu Dhabi-based telco said in an emailed statement.
"Etisalat has prepared a plan to shift some of its staff
members to work in new centres within the corporation or
transfer them into private companies who have been selected to
provide specialised services for Etisalat."
Etisalat, which operates in 17 countries, said it would
focus on its core business to improve its financial performance
by reducing operating costs.
Etisalat's annual net profit fell 24 percent to 5.8 billion
dirhams ($1.6 billion) in 2011, due in part to impairments it
took relating to Indian affiliate Etisalat DB, which is poised
to lose its licence.
Etisalat has reported declining profits in seven of the past
eight quarters as earnings from its foreign units fail to make
up for sagging home revenue.
The domestic decline is due to price competition from
competitor du and a move among the UAE's mainly
expatriate population to uses voice over Internet protocol
(VoIP) services for international calls.
About three-quarters of Etisalat's revenue is derived
domestically, according to its third-quarter results, the most
recent revenue breakdown the company has disclosed.
(Reporting by Matt Smith; Editing by Amran Abocar)
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