Du, Etisalat deals hint at mobile data price war

Providers hit market with cut-price bargain packages in wake of MNP rollout

Tags: Emirates Integrated Telecommunications Company Emirates Telecommunications Corporation InternationalUnited Arab Emirates
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Du, Etisalat deals hint at mobile data price war Both UAE mobile carriers have launched aggressive campaigns for mobile data.
By  Helen Gaskell Published  May 12, 2014

Du and Etisalat could be heading into a price war as both companies promote their new post-paid plans and offer large data packages at reduced monthly prices.

Etisalat is offering a 12-month deal where customers receive 10GB of data and 300 flexible minutes or 1,000 local minutes for AED250 per month.

Meanwhile, Etisalat's Dubai-based rival, du, has launched a radio campaign that says: "...get 12GBS of data with the latest smartphone for just AED300". Customers must first buy a smartphone from du to qualify for this offer.

Reuters reported this month that chief executive Osman Sultan said du would not fight a price war with Etisalat:

"It's a spiral ... you [should] offer great value to your customers, but not to the detriment of the value created for your shareholders."

When asked by ITP.net about Etisalat's strategy, du declined to comment.

Sultan said previously that the failure to conclude a network-sharing agreement with Etisalat to allow competition in fixed services was limiting du's ability to win a bigger slice of sector earnings. A deal has been under discussion for several years.

He also declined to predict when competition in fixed services would be introduced, but said, "I'm more optimistic than I was at the beginning of the year."

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