UAE residents welcomed the decision of the Telecommunications Regulatory Authority to allow the establishment of a new telecommunications company.

Mathew Cherian, an Indian businessman, said: "Etisalat will now be forced to reduce its rates, especially for the internet. With a new player in the field, it will open up such services such as VOIP [voice-over internet telephony] to the public," he said.

Derek Brown, a Dubai-based British engineer, said: "There is enough business in the city for a new telecommunication provider. I do not think it could bring harm Etisalat in any way, as there is enough volume of consumers."

Rami Tannir, an American based in Dubai, said: "Etisalat has been providing excellent services, but no doubt with two or more companies competing, the consumers will get a bigger range."

K. Kumar, president of the Indian Association, Dubai, said: "Primarily, any competition is better than a monopoly. It will bring more competitive prices and better service. Having said that, Etisalat has an established infrastructure in place and the new company has to invest a huge amount of money to match up to it."

Sarah Pilgrim, an Australian management trainer based in Al Ain, said: "I am impressed by the service provided by Etisalat. But their international call rates are very expensive, as compared to other countries."

Shiroma Saputhanthiri, a Sri Lankan school teacher in Dubai, said: "When you have a monopoly, you are left with no choice ... But if you have something else to compare it with, then we have a choice to look for better services and cheaper rates."