Du will focus on broadband and fixed lines

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Telecommunication operator dudu has decided against overseas acquisitions or telecom licenses to focus on growing its broadband, fixed-line and value-added offerings in the UAE.

The operator is gearing to compete in the nascent broadband market, as it seeks growth through broadband and fixed-line platforms. Value-added services and enterprise solutions will also be key drivers as the company seeks "scope" expansion and not geographic expansion, CEO Osman Sultan told Emirates Business. The opening of infrastructure by dudu and its rival etisalat would open a new era of competition, he added.

"We are not looking at acquisitions or telecom licenses overseas. There is still room for the competition here. As much as I think we have established our position, our name and our feet in the mobile phone market, we still have the challenge of the fixed-line and broadband markets ahead of us, where competition has not yet played out.

"The next playground is broadband. Be it on your mobile phone or at home. We believe that our growth will not come from a geographic expansion it will come from scope expansion. It doesn't make sense for me to go outside and pay a lot of money and play where you have giants competing on tight margins. It makes sense to cater for the value-added services for enterprise, for homes, for real estate developers and others. This is what I mean by scope shift, where the focus is on services, applications and solutions," said Sultan.

The company is set to roll out unified communication solutions within weeks and had begun making proposals to enterprises, Sultan said.

"I believe that either for the home or the enterprise the internet is opening a world of simplicity and convenience. This is where I believe we can have an edge.

"We will be launching these solutions soon. The enterprise solution market is important. This is where added value can be proposed. This is where growth can come from," he said.

The emergence and growing influence of social networking and internet applications will be another key focus area for the company.

"We can see the impact of social networking and internet applications. Just look at the iPhone. There are tens of thousands of applications available. Where is the killer application? You don't know.

"But one day there will be one of these applications that will become a killer application for all of us. And that's the name of the game.

"There are many bright people who will develop applications and we will take these and integrate them in the best way possible," he said.

By Sean Davidson

© Emirates Business 24/7 2009