ABU DHABI // Residents can expect better value after this week’s announcement that they will be able to switch operators for fixed phone and broadband services, but changes will probably come in service offerings, not in price, an analyst said.
Jona A, an Abu Dhabi resident from the Philippines, said she was happy to hear du and Etisalat had agreed to share the nation’s fibre-optic network — a development that will give residents extra choice in service.
“I’m hoping the prices will go down because of competition,” she said, adding that she would consider switching companies if the incentive was there.
Although Monday’s announcement brought long-awaited changes to the nation’s telecoms landscape, Tareq Masarweh, a senior consultant with telecoms consultancy Ovum, said customers should expect to see the country’s two telecom operators compete on service, rather than price.
“I don’t think prices will go down a lot,” he said. “Competition won’t be price-based, it will be promotion heavy to get subscribers to join.
“Now, when you introduce a rival into a particular area, operators will be forced to offer a better quality of service.”
He said he expected companies to compete by offering value-added services and promotions such as free months and service add-ons.
Operators would also be expected to focus on the quality of their “customer experience”, such as meeting advertised speeds, and timelier and more dependable technical service, he said.
To bring broadband rates down in the UAE, Mr Masarweh said regulators would have to grant a licence for a third player into the market to compete with du and Etisalat. “Price-based competition is more likely to happen in markets that have three players or more. When a third entrant comes into the country, it starts becoming a price game,” he said.
“As long as you still have two players in a given market, I expect to see more promotion and marketing-driven campaigns, as opposed to price-based competition.”
Muhamed Rafi from Kerala said he hoped to see a dip in rates because price was the most important factor for him when choosing a service provider.
“I’m living in Mussaffah with my family, and there is only one provider, Etisalat,” he said. “If du offered me a better price, I would switch.”
Spokespeople from Etisalat and du said they were ready to sign up new customers immediately.
As the TRA’s announcement excludes television services, Mr Masarweh said a substantial number of residents in the UAE are already subscribed to value-added bundled services that include fixed phone, broadband, as well as television — which could become subject to competition in 9-12 months, du’s chief executive said this week.
With built in savings in bundling, he said they will see little incentive to switch providers for the sake of better broadband prices.
“The vast majority of fixed services subscribers are already accustomed to bundled services, as it’s been an integral part of operator fixed strategies,” he said.
“If you want to enjoy cost benefits and synergies, then you get all of your services from one operator.”
esamoglou@thenational.ae
Company%20Profile
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The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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LEADERBOARD
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The%20specs
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
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Company name: Big Farm Brothers
Started: September 2020
Founders: Vishal Mahajan and Navneet Kaur
Based: Dubai Investment Park 1
Industry: food and agriculture
Initial investment: $205,000
Current staff: eight to 10
Future plan: to expand to other GCC markets
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
Company%20Profile
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CHINESE GRAND PRIX STARTING GRID
1st row
Sebastian Vettel (Ferrari)
Kimi Raikkonen (Ferrari)
2nd row
Valtteri Bottas (Mercedes-GP)
Lewis Hamilton (Mercedes-GP)
3rd row
Max Verstappen (Red Bull Racing)
Daniel Ricciardo (Red Bull Racing)
4th row
Nico Hulkenberg (Renault)
Sergio Perez (Force India)
5th row
Carlos Sainz Jr (Renault)
Romain Grosjean (Haas)
6th row
Kevin Magnussen (Haas)
Esteban Ocon (Force India)
7th row
Fernando Alonso (McLaren)
Stoffel Vandoorne (McLaren)
8th row
Brendon Hartley (Toro Rosso)
Sergey Sirotkin (Williams)
9th row
Pierre Gasly (Toro Rosso)
Lance Stroll (Williams)
10th row
Charles Leclerc (Sauber)
arcus Ericsson (Sauber)
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Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat