Etisalat and du have completed talks to share their networks and new commercial operations will be launched "in the coming months", the UAE's telecom regulator said on Saturday.
The Telecommunications Regulatory Authority (TRA) said in a statement that the two operators were "technically ready to open their fixed-line networks for competition" but did not give a date for the network sharing to start.
Under the new agreement, both operators will be able to currently provide all fixed-line services, telephone and internet services, and in the near future television services, everywhere in the UAE.
The move, the TRA said, was in line with the "strategies enabling competition in the telecom market".
Mohamad Al Ghanim, director general of the TRA, said: "The step from Etisalat and du to provide each other with access to their fixed telecommunications infrastructure will allow customers to select service provider in every household and business across the entire nation.
"The parties have now concluded the negotiations on complex technical and operational details of the network sharing arrangements and are currently in the process of undertaking comprehensive testing of the networks and systems interfaces.
"Users of fixed telecommunications services across the UAE will be able to access services from both operators once these are commercially launched in the coming months."
Etisalat and du have been negotiating an agreement under the supervision and guidance of the TRA to allow them to provide voice, internet, data and TV services across each other's networks.
Nasser bin Obood, acting CEO at Etisalat, said: "We are looking forward to competing for new customers within the Dubai free zones and new residential areas and are confident that the heightened customer experience that we are able to offer, in addition to our high value products and services, will be extremely effective in growing our market share in fixed line services."
Osman Sultan, CEO of du, added: "With this current development, all consumers in the country will have an opportunity to choose their preferred operator for internet, voice and TV services.
"Competition will no doubt foster growth of the telecommunications industry, act as a catalyst for the overall economic development of the country and above all, bring better value for customers."