Business | Telecoms
Local telecom operators lag behind in competitive pricing
International telecom operators in developed markets have various ways to offer competitive calling rates to their customers, but the rates by this region's operators leave much to be desired.
- By Nadia Saleem, Staff Reporter
- Published: 22:52 July 8, 2009
- Image Credit: Source:Various Telecom operators
Dubai: International telecom operators in developed markets have various ways to offer competitive calling rates to their customers, but the rates by this region's operators leave much to be desired.
Across North America and Europe, operators offer code division multiple access (CDMA) phones on contract that allow for subsidised handset costs.
The lack of CDMA networks in the Middle East prevents operators from offering these devices and thus give customers subsidised prices, thereby reducing their telecom expenses.
The only countries in the Middle East that have CDMA networks are Iraq, Israel and Yemen. The exceptions are BlackBerry and iPhone, which are sometimes offered under a plan in which the cost of the device is subsidised.
With prepaid mobile numbers growing across the world, there is an increasing need for competitive rates, especially for international calls.
By March 2008, 68 per cent of the world's subscriber base was prepaid, accounting for 2.37 billion subscriptions.
Prepaid is growing, with new services, according to Informa telecoms and media, the sector's research provider.
Though the international data distribution rates don't undergo much change, operators in the Middle East have found other ways to encourage users to call abroad.
Contrary to popular association with high rates, etisalat is among the regional operators that offer the lowest rates.
Aside from the average prices, operators here offer special deals on rates through packages. Among the lowest rates available with special packages are Oman Mobile, using the family and friends package that offers an up to 80 per cent discount; Qtel's friends and family package with a 25 per cent discount, and etislat's global friends and family with a 20 per cent discount.
Another low rate is available by registering for the "More" package with du that brings prices down by 60 per cent.
Postpaid customers can get rates as low as 64 per cent from etisalat with its Super Off-Peak plan between 1 and 7am daily.
Eisa Al Haddad, chief marketing officer for etisalat, said the plan is in line with its strategy of "providing convenience, enhanced coverage and additional value to our customers, by enabling them to save more, while conveniently reaching out to their family and friends across the world on a more frequent basis.
"This is initiative is part of etisalat's continuous efforts to offer outstanding value to our customers in an environment where the cost of living and other expenses are on the rise."
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