Global Insight Perspective | |
Significance | The launch of a new operator will terminate the monopoly Etisalat has had in the United Arab Emirates. |
Implications | The operator's new mobile service will commence in a highly penetrated market of over 100%. du will need to offer innovative services to acquire and retain new customers. |
Outlook | The two operators will compete on service quality not price. du's objective is to launch a 2.75G GSM mobile network across the federation in the second half of 2006, together with a 3G network in urban areas of high demand; followed by an advanced fixed-line network across the the country. |
Originally founded as Emirates International Telecommunications Company, the United Arab Emirates’ new operator was re-branded as "du" in February 2006. The telco is 40% owned by the U.A.E. federal government, with 20% held by Mubadala Development Company, 20% by TECOM Investments and 20% in free float listed on the Dubai Financial Market. du currently provides fixed line, internet and pay-TV services in some of the free zones of Dubai, following its purchase of TECOM Investments’ telecom assets.
du's mobile service launch will end the monopoly Etisalat currently has in the country and the newcomer will offer post- and pre-paid plans for individuals and businesses. The operator also plans to provide a range of services for public and business users. Its network will initially cover 85% of the populated areas in the country.
Outlook and Implications
Business: du is aiming to acquire a large range of business customers by providing core business packages that can be either pre-paid or post-paid. du's pre-pay package, the "Business Mobile Pay As You Go Plus" plan offers extensive business mobile features, including an automatic recharge option, and will be payable as a regular monthly plan with itemised billing. Its post-paid package, "Business Mobile Connect" is for moderate-to-high national and international voice communication needs and will be suited for national as well as international calls and messages.
Services: Service features for both pre-paid and post-paid plans for personal users and businesses include:
- Pay by the Second: a new, precise and fair method of charging for calls.
- Me&Mine: customers get a 10% discount on all their calls to two international and two national numbers of their choice, during both peak and off-peak hours.
- Mobile Payments: a simple and easy way for customers to pay du bills and recharge directly from their du mobile once their credit card is registered.
- MyWorld: a unique portal on every SIM (which can store 1000 numbers and 100 SMS) that will allow customers to use their mobile phones to download the latest news and sport, acquire ringtones, find restaurants and play games, amongst other options. These services are unique to du and are available automatically to all its customers.
- Next Generation Mobile Services (NGMS): applications include, mobile TV, video calls, video mail and mobile broadband. du customers (both pre- and post-paid) will have this capability from the launch date, enabling them to view 20 channels of mobile TV.
Mobile Data: Etisalat has launched an HSDPA service over its GSM network (see United Arab Emirates: 13 April 2006: Etisalat Launches HSDPA); it is in this mobile data market that services between Etisalat and du can be differentiated and competition heightened.