TRA: Third UAE telco 'inevitable'

The introduction of a third telecoms operator in the UAE is inevitable, the Emirates' Telecommunications Regulatory Authority (TRA) said Saturday.

However the telecoms watchdog's director general Mohammed Al Ghanim agreed with Etisalat's chief operating officer and CEO of du that it is still premature to speak about new entrant.

"Of course, there is going to a third operator in the future, I don't know when," Al Ghanim said at Gitex on Saturday.

He explained that the UAE's population growth targets, set to hit 5 million by 2010, make the need for a third telecoms provider in the Emirates expected.

For du - launched as the UAE's second operator only in February - any new competition currently is not welcome, according to its chief executive Osman Sultan. "Please not now," Sultan said at the conference. "It's not appropriate timing right now, but if you look at the picture, it will all depend on how the infrastructure will be made available to this operator."

Etisalat - which boasts a market capitalisation of $20.6 billion - perceived a new third telecom operator as much less of a threat, and more as an opportunity for analysis.

"There is no right formula to begin a third operator without the market justifying the need for it," said COO Ahmed Abdulkarim Julfar.

"Competition has just started, so it is premature to bring a third operator - especially for du because they need time to acquire customers."