Dubai: UAE's telecom operator has signed a non-equity strategic deal with Vodafone and became the 42nd partner in European telecom giant's partner market agreement.

"We are looking at ways to further maximise the collaborative potential of the deal. Additional joint initiatives being explored include mobile broadband connectivity products, secure remote mobile access for small business users, converged e-mail solutions, faster and exclusive access to new models of handsets. The deal is effective from January this year," Othman Sultan, CEO, du, said.

He said du is benefiting from Vodafone's global presence and Vodafone is gaining valuable local insights from the UAE's fastest-growing operator. For example, du is able to leverage Vodafone's expertise in roaming worldwide, technology development, enterprise customer relationship management, global sourcing, and other key areas.

Collaboration

du and Vodafone are working together in areas ranging from marketing and network development to the provision of innovative products and services. du enjoys exclusive access to Vodafone's range of products, devices and services in the UAE.

For Vodafone, this is the third market after Qatar and Bahrain. Vodafone has 22.95 per cent equity stake in Vodafone Qatar and a tie-up with Zain Bahrain, formerly known as mtc-vodafone.

According to Informa Telecoms and Media, mobile subscription numbers in Middle East will grow by 22.21 per cent year-on-year in 2009. Bahrain, Qatar and UAE already have mobile penetration rates in excess of 200 per cent. UAE's mobile penetration rate is expected to be 242.75 per cent this year and it is expected to grow to 295.76 per cent in 2014.

Richard Daly, CEO, Vodafone Partner Markets, said: "By partnering with du, Vodafone can offer its customers extensive coverage while roaming in the UAE. du and Vodafone are also working closely to provide additional support to Vodafone Global Enterprise customers with a presence in the UAE."

Sultan said: "The alliance shows how du is working with global firms to enhance its offerings and develop best practices that will benefit all mobility users in the UAE."

Daly said: "The agreement with du has already increased Vodafone's brand recognition and improved our ability to service customers roaming in the UAE. The UAE is a key market with a growing population, and looking forward, the agreement puts us in an ideal position to provide exceptional network coverage for our customers as well as explore additional collaborative opportunities."

Colin MacDougall, head of central Asia, Middle East and Africa, global business development, Vodafone, said the Middle East is the fastest growing telecom market as operators are increasingly looking to develop data and value-added services. Mobile broadband services will become increasingly important, not least because of the relatively low levels of fixed-line broadband penetration in the region.