TRA likely to give operators free hand to fix rates

Abu Dhabi: The UAE's telecom regulator is likely to allow operators to implement price changes and promotional offers without prior approval, a move which could lower mobile call prices which are among the highest in the Middle East.

The plan, if implemented, would eliminate the average five-day wait to approve special offers and would allow companies to respond to each others offers faster, the Telecommunications Regulatory Authority (TRA) said yesterday.

"This will motivate telecom companies to offer better promotions and increase competition for the benefit of the consumers," said Mohammad Al Ganem, TRA Director General.

The plan is not expected to be implemented until the end of the year, or later, depending on market conditions and the results of the TRA's study of the services.

Sulaiman Aboulhosn, telecom analyst for Prime Securities, said the move to liberalise the market could result in lower calling rates.

"It's potentially significant but not drastic," Aboulhosn said. This will spur more competition."