The UAE Telecommunications Regulatory Authority (TRA) has planned to deregulate the market and allow the two-telecom operators (Etisalat and du) to set their own prices. The Authority decision will help to propel the already saturated telecom industry in the country. The proposed regulations, which could be enforced by the end of 2010, would also prevent the telecom operators from engaging into anti-competitive behavior such as predatory pricing. The TRA's announcement is likely to foster more competition in the tightly regulated market where rates are among the world highest. As per the existing structure, the TRA approves all the pricing and promotions strategies of the operators that prevent a price war between the two-telecom operators.
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“But with the implementation of proposed deregulation, the country will witness a price war between the two telecom operators for the first time. This will result in rapid decline in mobile tariffs, making the mobile services far more affordable and opening the door to cheaper phone bills for consumers, but lower profits for the rival telecommunications operators,” said our industry analysts.
According to our new research report “Booming UAE Telecom Sector”, the number of mobile subscribers in the country will grow at a CAGR of over 7% between 2009 and 2012 to reach around 14 Million by 2012 end on account of these developments.
The report provides thorough research and rational analysis of the telecommunication market in the UAE. It gives an insight into the current trends dominating the market. The report also gives industry forecast for various telecom segments based on feasible telecom industry environment in the UAE. These include telecommunication industry, fixed-line, mobile subscribers, Internet subscribers, broadband subscribers and 3G subscribers.
“Booming UAE Telecom Sector” contains comprehensive information about the current and potential outlook of various emerging technologies such as IPTV, WiMAX and Mobile TV. It also includes a segment of competitive landscape that discusses business activities and developments of the two-telecom operators (Etisalat and Du), including their SWOT analysis with regard to the country’s telecom industry.