UAE's second telecom operator signs licensing deal with SCSTS

Abu Dhabi: The UAE's second telecom operator, Emirates Integrated Telecommunications Company, yesterday signed a full services telecoms licence agreement with the UAE Supreme Committee for the Supervision of the Teleccommunications Sector (SCSTS).

Etisalat will also be granted a license that is due to be signed before the end of this month.

The licence grants EITC the right to install, operate and manage a public telecom network providing services across the UAE.

Saeed Al Mansoori, Chairman of SCSTS, Mohamad Nasser Al Ghanim, director-general of the Telecommunications Regulatory Authority and Osman Sultan, chief executive of EITC signed the licence.

The licence states that EITC is approved to offer fixed and mobile telecom services in the UAE. EITC can also deliver international calls, Internet and other services in future after securing SCSTS' approval.

As reported earlier, EITC will pay Dh124.5 million as licence fee. The licence can be renewed annually for Dh1 million.

"Introducing a second telecom operator enables the UAE government to realise its vision to introduce competition to one of the most significant, dynamic, and vital sectors in the UAE. The UAE government is keen on creating the needed environment and sustaining the already leading role that the UAE telecom sector is playing in the region and, moving towards becoming one of the best telecom sectors in the world," said Al Mansoori in a statement.

"Introducing a second operator to the market will drive both companies to bring in cutting-edge technologies and deliver unsurpassed services. After the issuance of the Federal Law by Decree No. 3 for the year 2003, the TRA started working on finding the most suitable ways of liberalizing the telecom market and introducing competition. We succeeded over a short period of time and paved the way for creating competition and will continue to work hard to protect competition in the future", said Al-Ghanim.

Osman Sultan said that the signing of the new licence marks the start of a new era for telecommunications in the UAE.

"It is an important day for EITC, and for all customers in the country who will have the freedom of choice in their selection of a telecommunications company. EITC's mission is articulated towards offering unique customer experience, being the employer of choice for the best local talents and creating value to our shareholders thus contributing to the development of the community at large."