Etisalat will no longer have a monopoly on the UAE's telecommunications services when the upstart operator du gains access to its network this month. Barring technical delays, both operators will have access to each other's respective areas and provide a full range of telecommunications offerings to residents and businesses within weeks.
Analysts widely expect that du will gain valuable internet and television market share now that it has access to all of the country's residents and businesses. It will also in turn give Etisalat access to highly lucrative areas in Dubai such as Dubai Marina and the internet and media free zones owned by TECOM Investments. "We have been asking for this since the day we started [in 2007]," said Farid Faraidooni, the chief commercial officer for du.
"Obviously there will be some customers that would go to the competition. That would be the nature of competition, but we are not at all concerned that we will be losing revenues." Mr Faraidooni confirmed that du would also be able to market its internet protocol television, or IPTV, across the UAE, in direct competition with Etisalat's E-Vision offering. Analysts said this would see IPTV services maturing, with the UAE telecoms likely to open direct discussions with content owners over TV and video-on-demand (VOD) rights.
"To have the market properly opened up is great news from a consumer point of view. It will also consolidate the position of IPTV, and probably act as a bellwether for the rest of the GCC," said Nick Grande, the managing director of ChannelSculptor, a television consultancy in Dubai. Mr Grande added that liberalisation of the market could prompt a situation where the telecoms start to develop relationships directly with the content providers.
"Up until now, the relationships between content owners and telcos have all gone through third parties. There have been no direct negotiations between the telcos and content owners," he said. This could also prove attractive to advertisers. Historically, the popularity of satellite TV has meant that advertisers have been unable to target specific markets because, in general, the same broadcasts are beamed across the entire Arab world.
But domestic IPTV services allow advertisers to target individual markets. "You don't have satellite footprints on a country-by-country basis, so cable operators have a great deal to offer," Mr Grande said. "Advertisers may consider advertising directly on IPTV platforms. You could see the situation where the basic package of either operator [Etisalat or du] is in every home with a phone line. That's a lot of eyeballs."
Historically, du has been "very aggressive on the content side", Mr Grande said. "They've positioned themselves as a content provider, not just a telco. Etisalat's E-Vision product has not had a similar degree of positioning." Mr Faraidooni said du's commitment to offering "complete home entertainment" packages remained strong. "We are continuing to invest in our media and entertainment platforms. There will be exciting services that we will add to our video-on-demand packages," he said.
An Etisalat spokesman said the operator's E-Vision service had survived "stiff competition", not only from other operators but also from the free-to-air channels and piracy, in its 10 years of operation. "We will always have an edge over others as we continue to evolve at a fast pace," the spokesman said. The influx of competition in the UAE market will be likely to hit Etisalat's bottom line. The company generates 86 per cent of its revenue from its domestic operations. It reported revenue of Dh30.8 billion (US$8.38bn) last year, an increase of 5 per cent from the year before.
Although Etisalat does not break down its domestic revenues by segment, about 21 per cent of the operator's total sales are generated from its fixed-line and internet businesses, according to the company's annual report. Etisalat has announced a major push into international markets, and there may be a re-evaluation of where it makes its acquisitions. By comparison, du has no immediate plans to compete outside the UAE.
"It's not at a critical stage, but the pressure is mounting for Etisalat," said Matthew Reed, a research analyst with Informa Telecoms and Media. "Etisalat is looking to keep a strong position at its home market and get some better performances in its overseas markets. Some of those are doing very well, like Mobily [in Saudi Arabia] and Etisalat Misr [in Egypt], while others are a bit less so and they're new investments."
Irfan Ellam, a telecoms analyst with Al Mal Capital, noted that Etisalat had not made any acquisitions this year despite its negotiations with operators in Iraq, India and Africa. "It appears that Etisalat is still cautious," Mr Ellam said. "You could argue that they're too cautious and they've got too much cash sitting on the balance sheet waiting to be deployed." dgeorgecosh@thenational.ae
bflanagan@thenational.ae
Essentials
The flights
Whether you trek after mountain gorillas in Rwanda, Uganda or the Congo, the most convenient international airport is in Rwanda’s capital city, Kigali. There are direct flights from Dubai a couple of days a week with RwandAir. Otherwise, an indirect route is available via Nairobi with Kenya Airways. Flydubai flies to Kinshasa in the Democratic Republic of Congo, via Entebbe in Uganda. Expect to pay from US$350 (Dh1,286) return, including taxes.
The tours
Superb ape-watching tours that take in all three gorilla countries mentioned above are run by Natural World Safaris. In September, the company will be operating a unique Ugandan ape safari guided by well-known primatologist Ben Garrod.
In the Democratic Republic of Congo, local operator Kivu Travel can organise pretty much any kind of safari throughout the Virunga National Park and elsewhere in eastern Congo.
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The biog
Marital status: Separated with two young daughters
Education: Master's degree from American Univeristy of Cairo
Favourite book: That Is How They Defeat Despair by Salwa Aladian
Favourite Motto: Their happiness is your happiness
Goal: For Nefsy to become his legacy long after he is gon
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Match info
Uefa Champions League Group B
Barcelona v Tottenham Hotspur, midnight
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Company%20profile
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
SERIE A FIXTURES
Saturday (UAE kick-off times)
Atalanta v Juventus (6pm)
AC Milan v Napoli (9pm)
Torino v Inter Milan (11.45pm)
Sunday
Bologna v Parma (3.30pm)
Sassuolo v Lazio (6pm)
Roma v Brescia (6pm)
Verona v Fiorentina (6pm)
Sampdoria v Udinese (9pm)
Lecce v Cagliari (11.45pm)
Monday
SPAL v Genoa (11.45pm)
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
KILLING OF QASSEM SULEIMANI
Company: Instabug
Founded: 2013
Based: Egypt, Cairo
Sector: IT
Employees: 100
Stage: Series A
Investors: Flat6Labs, Accel, Y Combinator and angel investors
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
RESULT
Leeds United 1 Manchester City 1
Leeds: Rodrigo (59')
Man City: Sterling (17')
Man of the Match: Rodrigo Moreno (Leeds)
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
