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Though it's illegal, expats prefer to use VoIP to keep in touch with folks back home Image Credit: Xpress/virendra saklani

Dubai:  Though he knows it's illegal, Canadian expatriate Nelson A. uses Skype to talk to his family in Toronto whenever he wants to.

"It doesn't make sense to pay so much money to phone my family when there's a cheaper alternative," the construction executive said. "Most of my friends use it."

Babu, an Asian artist, also calls his family back home daily using one of the Voice Over Internet Protocol (VoIP) service providers. He buys calls credit online. "My 10-euro (Dh50.6) credit lasts for a month or more, even if I call my family daily," says Babu. The possibility of prosecution has not deterred people from using the illegal VoIP service.

PC shops in Bur Dubai's ‘Computer Street' offer buyers the option to pre-load a laptop with Skype, which is banned in the UAE.

Real competition

On Monday, the Telecommu-nications Regulatory Authority (TRA) said etisalat and du can now offer VoIP service. While this fanned hopes of cheaper phone calls in a nation where millions of blue-collar expatriate workers have no web access, Skype's Middle East head belittled the move as too little too late. "Until real competition is introduced in the UAE communications market, prices will be high and few new services will be deployed," Skype's Rouzbeh Pasha said.

For licensed operators, users and the VoIP black market, the effect of TRA's new policy is yet to be seen. A VoIP service provider currently charges 10 fils per minute for calls from Dubai to India ($10 or Dh36.7 for a six-hour VoIP credit).

A du spokesperson said: "The VoIP policy is progressive. We are committed to offer the best service at competitive rates." According to Abdullah Hashim, Senior Vice-President of etisalat, "There is a significant opportunity for businesses to leverage the advantages of an integrated network and the convergence of voice and data through a VoIP solution."

The new policy

Only du and etisalat are allowed to provide VoIP services, but the TRA's policy allows existing VoIP companies to collaborate with the licencees to legally provide their services. UAE academic and governmental bodies who are not covered by the prohibition can make PC-to-phone calls directly.