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Etisalat-du network sharing deal underway

Etisalat-du network sharing deal underway
DU
DU
1.99% 5.64 0.11
e&
ETISALAT
-3.30% 17.56 -0.60
Anetwork sharing deal between du and Etisalat, that has been in the works since 2009, is expected to come to light before the end of 2014, according to Reuters.

Through this sharing network, du, the UAE’s second biggest telecoms operator, expects to offer Internet-based phone calls and broadband services across the UAE. This network sharing deal is a milestone for du, which though has ended Etisalat’s domestic telecoms monopoly in 2007, continues to be limited to newer areas of Dubai, restraining the Company’s ability to grow.

Du chief executive Osman Sultan told a media call that UAE customers can expect to have the option to switch between operators for some services before the end of the year. Initially, services will include voice over Internet protocol (VoIP) and broadband, while television streamed over the Internet (IPTV) will be added later, he said.

It is worth noting that the Emirates Investment Authority owns about 40% of du and around 60% of Etisalat.

Analysts claim that the government stakes in both firms is one reason for the slow progress toward opening up the market to more competition. The government receives dividends from the two firms.