Etisalat revenue to fund TRA research initiative

UAE Telecommunications Regulatory Authority launches information communication technology development fund

  • E-Mail
By  Tawanda Chihota Published  September 28, 2005

The Telecoms Regulatory Authority (TRA) yesterday announced the creation of a fund aimed at further developing the ICT sector in the UAE by fostering greater investment in R&D. The fund, called the ICT Development Fund, will be financed through the levying of a 1% charge on the annual revenues of the incumbent operator Etisalat, as well as the annual revenues of the second operator, which is expected to launch in April next year. “This fund is a first for the Middle East,” says TRA director general Mohammed Nasser Al-Ghanim. “It will help us better partner educational institutions and fund further technical developments,” he adds. Etisalat generated approximately US$2.83 billion in revenues in 2004, meaning that its annual contribution to the fund for the year would have amounted to almost US$30 million. Etisalat chief executive Mohamed Omran welcomed the announcement, but says the operator already invests heavily in the UAE’s ICT sector. “Etisalat has already made a lot of investment in the development of the ICT sector. We have been investing in society and extending telecoms services regardless of the profitability of the area,” he adds. Etisalat already pays 50% of its annual profits to the Federal Government as a royalty fee for running the UAE’s telecoms.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code