Du plans to spend $463m on network in 2011

Operator to continue to invest in network infrastrucutre in the UAE

Tags: Emirates Integrated Telecommunications Company United Arab Emirates
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Du plans to spend $463m on network in 2011 Du is looking at ways to finance development and infrastructure, says Sultan. (ITP Images)
By  Gavin Davids Published  April 26, 2011

Du, the UAE's second-largest phone operator, plans to spend nearly AED1.7bn ($463m) on infrastructure development in 2011, its chief executive officer said on Monday.

The company spent AED447m on growing its networks in the first quarter, chairman Osman Sultan said in a conference call with media.

Du, which reported a net income of AED205.8m for the quarter, is in talks with banks to refinance part of an AED3bn loan that matures in June.

"We have as well to ensure that we will be financing our needs in development and infrastructure," Sultan said. "We are in advanced discussions with banks. But we will not be going out and seeking to finance the totality of the AED3bn loan, we don't need that."

The firm, which now has an estimated 40% share of the UAE mobile market, said earlier on Monday it had more than doubled first quarter profit on a surge in mobile and fixed-line subscribers.

The operator added 272,000 net active mobile subscribers during the quarter and saw a 27.3% rise in fixed line subscribers to 581,500 lines at the quarter-end.

Abu Dhabi-based Etisalat posted an 8.5% fall in first-quarter profit as a result of investment in infrastructure.

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