Telecom firms set to link up

Dubai: After months of delay and about a year of negotiations etisalat and du have finalised their interconnection agreement, the nation's telecom regulator said yesterday.

The agreement will be formally signed on Tuesday, December 26 at the offices of the Telecommunications Regulatory Authority (TRA) in Abu Dhabi. The contract sets the rates each operator charges when they exchange traffic with the other operator, a key element for du to have in place before it launches its service in the new year.

The regulator and the two companies began negotiations over the agreement over a year ago and were expected to complete in mid-2006. However, talks were stalled through the summer even as the TRA applied pressure for a speedy resolution.

A relieved Mohammad Al Ganem, director general of the TRA, called the development "a major milestone for the UAE" in the telecom sector.

The framework governs charges for data traffic between the two operators for local calls, international calls, SMS and fixed lines. It also sets rules for the resolution of disputes and the co-location of infrastructure. etisalat has offered du the use of 90 sites, including call towers and buildings, to set up antennae.

Smooth ride

The accord will clear a major obstacle for du to launch its service. etisalat's rival has extended its number booking campaign after logging in 300,000 numbers in three weeks, and will close its campaign and announce rates soon. du faces a deadline of February 12 for the launch, the one-year anniversary of its licence, and may be penalised if it breaks the deadline.