Data is the right telecom future

People don’t buy smartphones only to make phone calls. Telecom operators must adapt

Can telecom operators adapt to a changing market? Jeff Topping / The National

The blocking of access to voice over internet protocols such as WhatsApp and FaceTime has rekindled the debate about the structure of our telecoms industry. Telecom operators such as Etisalat and du have cautiously approached the proliferation of data usage and the death of the traditional phone call. While data is offered at competitive rates, companies have sought protection by blocking applications such as FaceTime that facilitate calls through data. The growth of this technology, however, is not inherently disruptive for telecom operators. It is an opportunity.

The business plan of India’s Reliance Industries Jio mobile phone service is instructive. Speaking to shareholders last week, Reliance chairman Mukesh Ambani said: “The era of paying for voice calls is ending.” His company will now offer free voice calling to customers in India and some of the cheapest data fees anywhere in the world (as low as Dh10 for monthly plans). Jio is focused on gaining market share. Other service providers are predicted to follow suit and focus on cheap data packages.

The lesson from India is that data is the future of the mobile phone market. Focus on traditional phone calling, which defines Etisalat and du’s packages, is out of sync with the direction of the market. Think about it: few people buy a smartphone just to make a phone call. Customers want data and the ability to use it for the latest application that allows them to stay in touch with the world.

Given the global integration of the UAE, the reach of our aviation sector and the diversity of the population, Etisalat and du have the ability to experiment with data packages that will spur global innovation. If people want global access to cheap data, telecom operators can adapt without blocking the latest application or new technologies.

As the country progresses towards a knowledge-based economy, we simply can’t afford to block new technology to protect outdated methods of communication. We have a young population that has wholeheartedly embraced the smartphone. It is time to embrace data as the critical ingredient for future growth.