TRA will not interfere with du’s tariff
“Only in the cases where there are practices giving a party a sweeping advantage we will interfere, as we need to maintain the balance between the competitors,” said the TRA's Mohammad Nasser Al Ghanim.
The UAE’s Telecommunications Regulatory Authority (TRA) has said it will not place any restrictions on du, the UAE’s second telco, regarding the pricing framework for its telecommunications services. Mohammad Nasser Al Ghanim commented that such practices are only necessary when there are more than two operators in the region.
“Nor will we set any price ceilings at the outset, as the market will be open for competition between the two players. Only in the cases where there are practices giving a party a sweeping advantage we will interfere, as we need to maintain the balance between the competitors,” Al Ghanim went on to say.
Du has already announced it will charge customers on a per-second basis but has made very clear that it would not be drawn into a price war with current incumbent Etisalat; stating that it would rather segment the market - competing on services rather than prices. When asked earlier on in the month CEO Osman Sultan would not provide any further details of du’s pricing strategy as these had to be approved by the TRA, he said.
“It is really too early for me to talk about price plans, these need to be submitted to the regulator. And it would be inappropriate to indicate anything before I get the feedback from the regulator, Sultan said. “There should be competition on all aspects including pricing. We will be competitive on pricing and value for money. It will mean ultimately driving down prices because these are the trends that we see. It doesn’t mean that there will be a cut-throat price war,” said Sultan.