A little competition goes a long way

A new study released by the UAE telecom regulator shows what most of us have known for a while - that the fight between du and Etisalat is looking more real than ever.

For the first year of its life, du was marred by what many customers said was awful service quality, as the company struggled to build out a network that could support tens of thousands of new customers every month.

In combination with its low-cost proposition, the low quality led to a perception that du was a cheap network - alright for those needing to save every dirham, but not the kind of service that a white collar business person could trust their whole mobile life with. Even anecdotally, this was quite clear - in early 2008, if I got a call from du's 055 prefix, I could be pretty sure it was a restaurant delivery guy, courier, wrong number, or a du PR person.

Much of that has changed, and as the TRA shows in its new report, there is now little difference between du and Etisalat in terms of service quality. Both companies cover more than 99.5% of the country with 3G reception, and the quality of service - measured in a bunch of technical terms - is practically identical.

If you dial a number 100 times, you'll be successfully connected 96 times by Etisalat and 98 times by du. Once connected, you have a 0.7% chance of your call dropping out on du, on Etisalat the dropout rate falls to 0.3%.

These quantitative numbers are also backed by more qualitative, anecdotal evidence. You notice a lot of new white-collar arrivals to the country choosing du, and I get an increasing number of work-related phone calls from du numbers. The company itself is reporting strong growth in segments that are heavily associated with bigger-spending customers: BlackBerries, iPhones, mobile internet data plans. And as I have said a few times, the vast majority of all new UAE mobile customers who signed up since January 2009 have signed with du.

So, the battle moves to a new front - one that really matters. Yes, you both have good products, but who is going to actually offer me a seriously good deal? Mobile prices have dropped in a big way as competition intensified, but if you ask me, broadband internet is where these companies can prove their real nature. Right now, we have no choice of internet provider, and we pay truly disgusting amounts for an internet connection. That is not a coincedence.

So here's my call out to our two telcos: is giving your customers the best price and the best service something you only do when your competitor forces you to do it? Do you shape your view of excellence based on matching the other guy? If not, prove it. Announce a brilliant discount offer on home broadband, even in the absence of competitive forces. You'll prove to the public that being a decent company is in your DNA, and will be rewarded for it long into the genuinely free-market future.