Region's telecom executives gather at MECOM 2008, region's premier industry showcase
The top executives of the two telecommunication providers in the United Arab Emirates say they have nothing to fear from the introduction of competition from new mobile operators in the future.
The chairman of etisalat and the chief executive of du were speaking on the sidelines of the Middle East Communications Exhibition and Conference (MECOM 2008) which was officially opened yesterday at the Abu Dhabi National Exhibition Centre by HE Khaldoon Al Mubarak, Chairman of Abu Dhabi Executive Affairs Authority and CEO of Mubadala Development Company.
Both were responding to questions about Mobile Virtual Network Operators, which provide services to their customers over the existing infrastructure of licensed operators. They have dramatically changed the telecom landscape in Europe, the US and parts of Asia, bringing down the cost of calls.
The head of the UAE Telecommunications Authority, also speaking on the sidelines of MECOM yesterday, said it was premature to discuss their immediate introduction but mobile virtual network operations would be examined "down the road."
Their introduction into the UAE would be seen as "an opportunity and not a threat" by Mohammad Hassan Omran, Chairman of etisalat. "I think it will happen with all the alliances and partnerships taking place and there will not always be the need for new networks to be established - we can provide them," he said. Asked if etisalat would consider becoming a virtual operator in overseas markets, he added: "I would love to."
Osman Sultan, CEO of du, agreed mobile virtual networks were "not a threat in a mature market" such as the UAE and it was "natural that these things should happen."
With 6,500,000 customers, etisalat is the UAE's biggest telecom provider and is expanding dramatically internationally with ventures and partnerships in the Middle East, Asia and Africa. Du, with two million customers, is concentrating on the domestic market.
Mohamed N. Al Ghanim, Director General of the UAE Telecommunications Regulatory Authority, said it was premature to discuss the early entry of virtual mobile operators. "Competition has only just started and we are looking at the market," he added. "We will look into it down the road. First we will have to see if the market will be able to absorb another mobile operator, or a virtual mobile operator. It is a question of timing. We must do things in stages, just as in Europe and the rest of the world."
Virtual mobile network operators don't own infrastructure but buy bulk time at a discounted rate from licensed mobile network operators and resell to customers with additional services. There are now more than 300 such operators across the world and in some countries they outnumber licensed operators. The first country in the Middle East to establish a legal framework for virtual mobile is Jordan.
MECOM 2008, which continues until Wednesday 28 May 2008, is being held under the patronage of HH General Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Executive Council of the Emirate of Abu Dhabi.
MECOM, with more than international and regional exhibitors, is the region's premier dedicated event for the telecommunications industry showcasing the best in hardware, software and services. MECOM is officially supported by the UAE Telecommunications Regulatory Authority and Dubai Internet City. ICT Industry Partner for the event is Dubai Internet City. Platinum sponsors are etisalat, the UAE Information and Communication Technology Fund and du. Gold sponsors are Ericsson, Blackberry, EMS and the Abu Dhabi Media Company.
For more information on MECOM 2008, please visit: www.mecomexpo.com
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© Press Release 2008
