New era for UAE telecom industry

The latest announcement by the Telecommunications Regulatory Authority (TRA) to allow Voice over Internet Protocol (VoIP) through four telecommunication companies opens a new era for the industry in the UAE. Provision has also been made for others to enter the market through partnerships.

By licensing VoIP operators in the UAE, the authorities will reduce communication costs for businesses and consumers, at a time when every fil counts. It is also in line with the country's ambitions to become a global financial and commerce centre, which needs efficient, low-cost telecommunications infrastructure. The move is sure to pave the way for a more liberalised telecom regime in the coming years, which is vital as the cost of telecommunications is rapidly dropping worldwide and may soon be free in some countries.

While the new VoIP policy might not be enough to satisfy the thirst of UAE residents for greater and cheaper connectivity, the authorities have adopted a cautious approach to opening the market. They have made it clear that they are keen to see how providers and residents use the services and for what purpose; and to protect the rights of consumers; before fully opening up the VoIP businesses. Until these issues are resolved, we have to wait with patience.