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Discuss this article (7 Comments)Regulator refutes Etisalat claim on iPhone prices
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 09 April 2009
HIGH COST: The TRA has said it is not responsible for the iPhone being so expensive in the UAE, compared to other countries. (Getty Images)
The Telecommunications Regulatory Authority (TRA) on Thursday hit back at phone operator Etisalat’s claims that the agency was responsible for the high price of the iPhone in the UAE.
The regulator said that Etisalat is permitted to sell the iPhone for any amount that was not below the cost price, meaning the price Etisalat pays Apple for the handsets.
“The TRA does not interfere in the deals or agreements done by any of the licensed telecoms operators with any third party, hence, the TRA is not aware of the details of the agreement between Etisalat and Apple,” director general HE Mohamed Nasser Al Ghanim said.
Etisalat chief executive Mohammed Al Qamzi told a press conference last Wednesday that his company wanted to lower the price of some of its iPhone packages, if given permission by the TRA.
The company had repeatedly contacted the regulator for permission to lower the price of the iPhone and other promotions, but had yet to hear back from the regulator, he said.
Etisalat charges AED2,646 ($720) for the iPhone on a one year payment plan with a monthly cost of AED199 ($54).
That makes it significantly more expensive than in the UK, where O2, a subsidiary of Spain’s Telefonica, provides the handset free of charge on a monthly GBP45 ($65) payment plan.
In the US, AT&T charges $199 for the iPhone under a two year payment plan, where the monthly charge starts at $70 per month in the New York City area, in addition to a $36 activation fee.
The TRA also accused Etisalat of not submitting the wholesale cost of some of its products, making it difficult to monitor its pricing policies.
“It is notable that since 2006, the TRA has adhered to Etisalat to provide the cost prices of its services, to help us set-up the most appropriate price control standards. Yet, until now, Etisalat has not provided the TRA with this information,” Al Ghanim said.
Etisalat, one of the most expensive iPhone operators in the world, launched the iconic Apple handset in the UAE in February this year.
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READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
monopoly
Posted by gamby on Wednesday 15 April 2009 at 10:01 UAE time
need i to say more? just don't buy and subscribe. no demand means no business...boycott it! besides you will be lazy later on with all the apps then you will notice u are using only the phone but paying more because of the unused extras/apps.
Posted by gamby on Wednesday 15 April 2009 at 10:01 UAE time
need i to say more? just don't buy and subscribe. no demand means no business...boycott it! besides you will be lazy later on with all the apps then you will notice u are using only the phone but paying more because of the unused extras/apps.
switch
Posted by David, Dubai on Sunday 12 April 2009 at 09:47 UAE time
Etisalat are expensive for everything, whereby their competitor is cheap so just use your consumer power and switch. Cheaper startup & you pay per second rather than per minute, the service is good plus you can buy a hacked iphone and use it on any network for much cheaper than a year's rental.
Posted by David, Dubai on Sunday 12 April 2009 at 09:47 UAE time
Etisalat are expensive for everything, whereby their competitor is cheap so just use your consumer power and switch. Cheaper startup & you pay per second rather than per minute, the service is good plus you can buy a hacked iphone and use it on any network for much cheaper than a year's rental.
etisalat is probably the costliest
Posted by Mohammad, Dubai, UAE on Saturday 11 April 2009 at 10:20 UAE time
Etisalat probably provides the costliest services in the region. I have worked in Saudi Arabia before and the call rates in Saudi Arabia were approximately 60% of what is being charged here and the Irony is that etisalat is one of the share holder in the saudi arabian operator, Mobily (Etihad Etisalat Company). If you compare the call charges from UAE to any of the country with the charges from the same country to UAE you will find that in some cases the difference is of upto 3 to 4 times.
Posted by Mohammad, Dubai, UAE on Saturday 11 April 2009 at 10:20 UAE time
Etisalat probably provides the costliest services in the region. I have worked in Saudi Arabia before and the call rates in Saudi Arabia were approximately 60% of what is being charged here and the Irony is that etisalat is one of the share holder in the saudi arabian operator, Mobily (Etihad Etisalat Company). If you compare the call charges from UAE to any of the country with the charges from the same country to UAE you will find that in some cases the difference is of upto 3 to 4 times.
TRA attitude
Posted by Mustafa, Dubai, UAE on Friday 10 April 2009 at 16:08 UAE time
If Etisalat can sell the iphone at any price above the cost price, then why TRA has to approve the packages? TRA is interfering with Etisalat business by asking for the cost price; dream on they submit their cost prices, that's considered a core business secret. And if TRA is not interfering with any deal between Etisalat and third party, then why did they reject the exclusive deal Etisalat wanted to sign with Apple few weeks ago? And you writer are comparing prices of AT&T and Etisalat wondering the big difference, AT&T is the ONLY one who sells iPhone there, they are relaxing because no fear from upcoming competitor, thus price is low, same with other countries. Besides TRA has made it clear from the beginning that they are on du's side, what kind of authority is this?! Now they deny it, but one can tell that from their actions, we are not fools. They said we want competition, oh yeah, really? Don't your know that you are the biggest obstacle for the competition in UAE? If there was no TRA, or if it was a just TRA, the UAE telecom Market would be just a little bit better than the Saudi one.
Posted by Mustafa, Dubai, UAE on Friday 10 April 2009 at 16:08 UAE time
If Etisalat can sell the iphone at any price above the cost price, then why TRA has to approve the packages? TRA is interfering with Etisalat business by asking for the cost price; dream on they submit their cost prices, that's considered a core business secret. And if TRA is not interfering with any deal between Etisalat and third party, then why did they reject the exclusive deal Etisalat wanted to sign with Apple few weeks ago? And you writer are comparing prices of AT&T and Etisalat wondering the big difference, AT&T is the ONLY one who sells iPhone there, they are relaxing because no fear from upcoming competitor, thus price is low, same with other countries. Besides TRA has made it clear from the beginning that they are on du's side, what kind of authority is this?! Now they deny it, but one can tell that from their actions, we are not fools. They said we want competition, oh yeah, really? Don't your know that you are the biggest obstacle for the competition in UAE? If there was no TRA, or if it was a just TRA, the UAE telecom Market would be just a little bit better than the Saudi one.
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