Life & Style | Gadgets & Tech
iPhone 'must drop monopoly practices before UAE launch'
The UAE regulatory authority wants device to be available to all in market.
- By Abbas Al Lawati, Staff Reporter
- Published: 00:03 June 11, 2008
- The UAE is not on the list of 71 countries that Apple is expecting to launch the iPhone 3G by the end of the year. Qatar is the only Gulf country on the list, where it is going to be available through Vodafone.
- Image Credit: Source: Apple
Dubai: The iPhone will not see an official UAE launch as long as it wants to be made available through one telecom operator exclusively, an official at the Telecoms Regulatory Authority has said.
An exclusivity contract for the iPhone that etisalat was seeking has been rejected by the TRA, Gulf News has learned.
The spokesperson for the TRA, Rasheed Joumblatt, refused to confirm this but warned that all exclusivity contracts will be rejected "regardless of which operator applies".
etisalat and Apple's representatives in the Middle East, Arabian Business Machine, also refused to comment.
"Exclusivity is considered anti-competition in the UAE. If Apple does not open the iPhone to all [operators] in the UAE, it won't be coming here," said Joumblatt.
"We don't want anything to do with monopoly. Exclusivity is close to monopoly and it is prohibited in the competition law of the telecom sector," he said.
Exclusivity contract
Joumblatt said he could not comment on whether any telecom operator in the UAE had been seeking an exclusivity contract with Apple because it would amount to commenting on marketing issues.
du did not comment on whether it has plans to bring the iPhone here.
Apple's first version of the iPhone was launched in the United States with an exclusivity contract with AT&T, but according to Abbas Jaffer-Ali, editor-in-chief of meMobility.net, Apple has changed its revenue model with the launch of iPhone 3G, entering many countries without an exclusivity contract.
With the launch of the previous version of iPhone, said Jaffer-Ali, Apple made an exception in France, where the telecom regulatory authority ensured that an unlocked version of the phone was available for consumers for a higher price than the one locked to the Orange network.
Exclusivity contracts involve the telecom operators giving a percentage of the monthly service fee paid by iPhone users to Apple in exchange for keeping the monopoly over sales of the smartphone and determining the selling price with Apple.
The UAE is not on the list of 71 countries that Apple is expecting to launch the iPhone 3G by the end of the year. Qatar is the only Gulf country on the list, where it is going to be available through Vodafone.
"For now, Apple is just launching in countries that have telecom operators it already has a relationship with," said Jaffar-Ali.
The 3G version of the smartphone will launch in Arab countries through telecom companies Apple has dealt with before. It will launch in Jordan through Orange and in Qatar and Egypt through Vodafone.
Are you disappointed that the UAE will not be getting the iPhone officially? Would this force you to purchase the phone from the grey market? How would you rate its features? Tell us at letter2editor@gulfnews.com or fill in the form bellow to send your comments.
Your comments
For Blackberry services, why was etisalat originally given exclusivity for its customers?
Shaik
Dubai,UAE
Posted: June 11, 2008, 11:45
How is that the new phones are coming to new countries without such restrictions or monopolies as what has been reported?
Ali
Dubai,UAE
Posted: June 11, 2008, 11:40
Bravo UAE for not agreeing to Apple's terms. Apple makes great products, but their iPhone locking is anti-consumer and will ultimately prove self defeating.
Aboud
Abu Dhabi,UAE
Posted: June 11, 2008, 11:15
Etisalat had a monopoly in the telecom sector until du came in. Even now there are only two players in the telecom market.
Fakhri
Dubai,UAE
Posted: June 11, 2008, 10:49
I do agree with Mr Joumblatt. Exclusivity is nothing but monopoly. But the ultimate losers are the people who were waiting to use the iPhone. Now, people will start looking for the unlocked version from other countries. Wish they could get it here legally.
Joy
Dubai,UAE
Posted: June 11, 2008, 10:02
I would rather wait for an official launch of iPhone with du rather than get one of the market. I think getting iPhone from grey market is a waste of money since the phone features depend a lot on network features, otherwise its just another phone.
Mazhar
Dubai,UAE
Posted: June 11, 2008, 09:25
I agree with what the TRA says about exclusivity. Apple needs to really think outside the box when it comes to delivering iPhones to markets outside America.
In the UAE, we all enjoy the freedom of switching service providers. I think that iPhones should be sold the same way here as they are in countries like France where one can pay more to buy a factory unlocked phone.
Personally, I did not buy an iPhone when it first came out here in its unlocked version and I will not buy the new one either from the grey market. As a consumer, I would like the freedom to update and use my new phone the way other iPhone consumers do.
FJ
Dubai,UAE
Posted: June 11, 2008, 09:02
Absolutely right. Exclusivity is tantamount to monopoly, and I like the TRA's approach. I don't like the idea of some one else dictating to me which service provider I must use after having paid so much for the device.
Roger
Abu Dhabi,UAE
Posted: June 11, 2008, 08:42
The TRA's position on the iPhone and other internet issues is an indication that the services of Etisalat and du are falling behind other telecom operators in the Arab world.
Mohamed
Abu Dhabi,UAE
Posted: June 11, 2008, 08:33
Officially or unofficially, this new iphone is coming to Dubai, either the right way or the wrong way, the seniors are allowing the juniors to earn, in the end the grey market will win.
jazee
Dubai,UAE
Posted: June 11, 2008, 08:26
Apple does not insist on exclusive distribution locked to a single network operator. I think you will find that distribution of the iPhone3G in Egypt will be available from both Vodafone and Orange.
Tim
Dubai,UAE
Posted: June 11, 2008, 08:20
If he had launched it here, he would easily sell more than 1 million handsets. A country of 4.6 million people, and more than 8 million active mobile lines, I think Steve should really do his math again.
Bilal
Dubai,UAE
Posted: June 11, 2008, 07:57
I have used this mobile in Europe. Nothing special just another mobile. I personally think E90 is much better than iPhone. Anyway believe me the people are not missing much if iPhone is not launched here.
Muhammad
Abu Dhabi,UAE
Posted: June 11, 2008, 07:44
Absolutely not. Monopoly in todays market is against consumers. I congratulate TRA of UAE in taking this decision of not allowing exclusivity.
Faruk
Dubai,UAE
Posted: June 11, 2008, 07:40
As much as I want iPhone officially here because of users being shortchanged by no support and warranty and stuff, I think people will find ways to get them, unlock them, and use them, just as they have for the past year. Apple is loosing out on a lot of business though and we get a lot of people that need help at EmiratesMac.com (we're the only Apple User Group in the UAE).
Magnus
Dubai,UAE
Posted: June 11, 2008, 07:24
it is wrong to say "Exclusivity is close to monopoly".
Sayem
Eagan,USA
Posted: June 11, 2008, 07:01
Yes! UAE always known for its "First" in everything, should have launched iphone in July when its launching thoughout the world in selected countries. Its a shame that it is not launched here first.
Suresh
Dubai,UAE
Posted: June 11, 2008, 06:54
I was greatly disappointed after I didn't find UAE in the list of countries that iPhone is going to be available in. I was expecting to see UAE launch with introduction of iPhone 2. After all, UAE has a huge market for cell phones and I myself am willing to pay with no limitation for such devices. Purchasing from grey market isn't an option for me unless I find it for a relatively cheaper price. It was kind of a let-down that Apple changed the aluminum case to plastic but 3G, GPS, and Geotagging make this device worth giving a go.
Mahdi
Dubai,UAE
Posted: June 11, 2008, 02:31
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