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Du, the UAE's second largest telecom operator. Picture used for illustrative purposes. Image Credit: Gulf News Archive

Dubai: Du is expected to offer Voice Over Internet Protocol (VoIP) services in the UAE by next month, said its chief commercial officer Fareed Faraidooni.

"We have developed this service and had submitted to the Telecommunications Regulatory Authority (TRA) and probably we will be the first operator in the UAE to launch a set of VoIP services next month. You will come to know about this service very soon," Faraidooni told Gulf News.

He did not, however, go into details of the new services to be offered.

The TRA earlier said that VoIP services would only be made available through etisalat and du while asserting that determining the VoIP policy within the UAE strictly came under its jurisdiction.

Faraidooni said all services provided by the company were based on the internet protocol. There would be products and offers aimed at both the consumer and business markets, he added.

With network infrastructure-sharing in place, competition in fixed-line telephony would begin soon, he said, adding that even with etisalat's 50 fils per minute plus surcharges to one destination, du's offer of one fil per second to over 190 destinations was still the winner.

Growing customer base

"We have more than 3.7 million mobile customers as of first quarter of this year as we have added more than 20,000 customers in the first quarter. Our mobile customers grew more than 41 per cent to reach 3.47 million in 2009 while our fixed-line customers grew 45 per cent in 2009 to reach 405,000 lines in 2009," he said.

VoIP is a service that allows transmitting, receiving, delivering and routing of voice telecommunications by means of internet protocol.

Both the telecom operators in the country are ready with the service and are awaiting TRA's policy go-ahead.

Osman Sultan, CEO of du, had indicated last month that the company was in talks with multiple players including Skype to bring VoIP to the market.

Product range

"I think we'll see a growing market in terms of traffic, but it all depends on what product mix the operators are packaging for the service and how it can sustain their overall business. For example, offering a near-free VoIP service would spike the traffic but provide little additional revenues to the operators," Said Irfan, research manager, telecommunications, IDC Middle East, Turkey and Africa, told Gulf News.

He said VoIP does offered a substitute to the traditional voice services but the operators providing them were the same and therefore could ensure that the product mix for both services did not cannibalise each other.

Faraidooni acknowledged there would be competition and said it would be no different from when the company started operations in 2007. We will not get into price war because it is bad for customers, industry and the operators. But we can assure that our customers will get the best value for money.

Montblanc in support role

Du has formed a unique and first-of-its-kind partnership with German luxury brand Montblanc to provide a distinctive privilege to its high-end Elite Plan customers for a limited period.

For the next three months, du's Elite Plan customers can exclusively enjoy being the privileged few to own a handcrafted Montblanc Meisterstuck luxury cover for iPhone and BlackBerry smartphones.

The German group is offering 4,810 covers, each costing around 200 euros, to du.

"The Elite Plan remains our flagship proposition from our mobile portfolio. We want to really indulge our customers by offering them products that complement their lifestyle," Fareed Faraidooni, chief commercial officer of du, said during a press conference on Tuesday.

Subscribers can tap the special promotional facility by sending an SMS saying ‘montblanc' to 5552. Then customers will receive a PIN enabling them to buy the exclusive cover at any of the 13 Montblanc boutiques in the UAE immediately and get a cash refund on their bill after the first three monthly payments exceed Dh1,000.

Existing du Elite Plan customers can obtain this facility at a special price.

"The telecom industry is witnessing a radical transition. Du, which is one of the few operators in the world, has the liquidity to move on to capture the lifestyle platform as well. We will be setting benchmarks in this industry with this deal," Faraidooni said.

He added that more deals are in the pipeline and will revealed at a later stage.

"We are excited to be forming a partnership with du, which will provide its customers with the rare exclusive opportunity of being among the first to enjoy this offer," Guido Zimmerman," sales director, corporate and wholesale, Montblanc, said.

Montblanc, which has more than 400 outlets in the Middle East, plans to introduce this product throughout Europe, the US and other regions in the next couple of months.

Rivoli Group is the retailer for Montblanc products in the UAE.

Would you use VoIP once it is available? How much are you willing to pay for VoIP services?