UAE telecom sector hots up with new offers

Dubai: The playing field of the UAE telecom sector is becoming increasingly exciting as the two operators toss new offers around.

The game began with off-peak international calling rates for special occasions and moved towards extra credit being given to customers on the fulfilment of specific criteria.

du and etisalat continue in their attempts to outpace each other. The second entrant into the market, du, on Wednesday launched an offer called MyFamily, which gives its customers a 50 per cent discount on calls made to family members.

This offer counters an earlier package launched by etisalat called Global friends and family service. Up to three international numbers can be registered for this offer to take advantage of a 20 per cent discount on calls made.

While du's special offer for family members is free, etisalat's international offer requires monthly rental charges.

The UAE telecom industry has not seen a nationwide drop in telecom prices, unlike the usual market dynamics in other sectors. The only reprieve from the usual rates are promotions and special occasions and public holidays.

"Neither competitor wants an all-out price war. From a commercial perspective, it would not be good for either," Irfan Ellam, telecom analyst at Al Mal Capital Research said, adding it would be best for them to offer special packages and promotions.

He had earlier predicted that the two operators would take the strategy of package deals and special offers in attempts to gain market share.

"We expect genuine increased competition within the UAE between the two players, although it will be based less on direct price competition and more on special offers and promotions," Ellam had said.