Etisalat's Q4 to show BlackBerry effect - Moody's

Ratings agency says majority of BlackBerry users in UAE to switch over to alternative mobile data devices.
Etisalat's Q4 to show BlackBerry effect - Moody's
BLACKBERRY BAN: said on August 1 it will suspend BlackBerry messenger, e-mail and web- browsing services in October.(Getty Images)
By Bloomberg
Tue 03 Aug 2010 03:19 PM

Emirates Telecommunications Corp's fourth-quarter results will show the effect of suspending BlackBerry services in the UAE, Moody’s Investors Service said.

“Although BlackBerry services are thought to be one of Etisalat’s key generators of revenue and profitability, Moody’s believes that the conversion rate of customers to permitted data services and the industry’s ability to maintain the momentum for mobile data services will be more important than any short-term dips in revenue in determining the impact on Etisalat,” Moody’s said in a report on Tuesday.

The UAE, home to Middle East business hub Dubai, said on August 1 it will suspend BlackBerry messenger, e-mail and web- browsing services in October because of concern the devices could be used in crimes.

Etisalat, the biggest of two phone companies in the UAE, said the suspension of the BlackBerry services will not affect profit or revenue, according to Ahmed bin Ali, senior vice president for corporate communications at the company.

Moody’s expects majority of an estimated 500,000 BlackBerry users in the UAE to switch over to alternative mobile data devices. (Bloomberg)

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