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Few think customers will benefit from internet choice
Only 11.3 percent of people think Dubai customers will see the financial benefit of being allowed to choose their internet provider by 2010, according to the latest Arabian Business poll.
The online survey found the smallest amount of respondents thought that du and Etisalat would undercut each other to attract more customers.
On the other hand, 39.6 percent of people said the two Dubai-based telcom firms would keep their prices the same, so customers would see no benefits.
At the moment it depends on what area of Dubai a person lives in as to which service provider they can use. For example, in Discovery Gardens, residents have to subscribe to du for telephone and internet services.
However, Osman Sultan, du CEO, speaking at this weeks GITEX, said the opening up competition on fixed internet access was the "the next big thing".
He was reluctant to give an exact date on when this might happen, but said that it could be as soon as next year.
"I don't have full visibility, but what I can tell you is we will see something happening in 2010, for sure," he said.
The AB poll found that 17.1 percent of people supported the move, saying that at the moment the biggest problem was the lack of choice.
While 32 percent said it would be a good start, but added that there needed to be another service provider in the market before any real price reductions would be seen.
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Comments 1-3 of 3
Posted by S.M.Hussain, Sharjah, UAE on 28 October 2009 at 13:42 UAE time
There is one area where both the telecom operators in the UAE namely etisalat and du need to really concentrate and that is the broadband. Broadband charges are enormous compared to other ISPs worldwide.
For instance a 16mbps line cost AED549 with both ISPs in UAE as compared to other ISPs worldwide at around AED165-185. One would have thought that with du as the new ISP entering the UAE market, competition would become fierce and customers would see a price war resulting in tariff cuts across the board for all packages starting from 256kbps – 24mbps and the recently launched 30mbps package by etisalat at GITEX 2009. Ironically, the tariffs are similar hence competition is nil.
I would urge etisalat and du to reconsider reducing their broadband charges to some acceptable levels and make it affordable for all.
Posted by Sergei Kuk, Dubai, UAE on 25 October 2009 at 12:34 UAE time
Why is it that in UAE the authorities are afraid of competition ? Du and Etisalat does NOT equal a free market. A free market would have pretty much at least 10 companies offering internet access. WHEN and IF they actually get the guts to open the market to real competition then there will be better service.
Posted by Kris, Dubai, Uae on 23 October 2009 at 16:46 UAE time
Forget it! Lower charges here will never come-we are probably paying the highest rates for internet service in the World! I can't imagine the losses this is causing to this country but who cares! I have given hope on the this country's service providers-even the VOIP service promises is just a load of rubbish!