WadiOnline News - Du Announces Least Costly Landline Rates

Du Announces Least Costly Landline Rates

Publish Date: 2010-02-04 11:00:23 Story Code: 25003

DUBAI � Emirates Integrated Telecommunications Company, or du, launched on Wednesday a nationwide prepaid telephone service, offering international calls from home landlines starting at 1 fil per second, the cheapest rate so far.

Du’s new service comes a week after the Telecommunications Regulatory Authority (TRA) announced that the two telecom firms will, for the first time, be able to set prices without seeking prior government approval.

The announcement had raised hopes of infusing competition in a market, where rates are among the highest in the world. But TRA had said that it would not allow unfair competition or a price war between du and dominant telco etisalat. Du’s move is still likely to increase pressure on etisalat to cut rates.

A spokesperson of etisalat told Khaleej Times that the company considers its rates competitive, but he did not say if any of its tariff packages were cheaper than a fil per second, which is at least 40 per cent lower than the prevailing night or off-peak charges.

Du said the Homephone Recharge service with the “One World One Rate” tariff will allow fixed landline customers across the UAE to call 190 destinations across the world. Recharge cards will work on any home landline in the UAE, regardless of the provider.

“Now anyone with a landline in the UAE can benefit from our incredible calling rates, and enjoy the simplicity of one rate for 190 destinations, and the value offered by Pay by the Second billing,” Farid Faraidooni, du’s Chief Commercial Officer told reporters.

“The customers can take advantage of the new service with no change to their home telephone number, no monthly fees and no service interruption,” he said.

Asked if the new service could be the first battle in an expected price-war with etisalat, Faraidooni smiled and gave no answer. He later said competition will intensify.

Simon Simonian, senior telecommunication analyst at Shuaa Capital, said that du has raised the bar in terms of competition. The UAE had 1.3 million fixed line subscribers at the end of 2009 and most of them belonged to etisalat as du’s service in this segment is limited to select areas of Dubai. Simonian said the new service may help Dubai-listed du expand its share in segments other than mobile.

�muzaffarrizvi@khaleejtimes.com

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Source: Khaleej Times
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