Telecom rates may be cut soon

The UAE could begin cutting telecommunications rate by the end of this year but has no plans to admit new operators for the time being, according to the country’s telecom authorities.

The Telecommunications Regulatory Authority (TRA), which oversees the communication sector in the second largest Arab economy, said it had presented proposals to the two operators—Etisalat and Du-- on rate cuts.

“After nearly three years of work on the price and competitiveness issue, TRA made recommendations which are being considered by the operators,” TRA director general Mohammed Al Ghanim told the semi official daily Alittihad.

“We expect such recommendations to be enforced by the end of this year,” he added, without giving further details.

Ghanim said the UAE’s telecom market would remain confined to the present operators until at least 2015.

“There are no plans to admit new operators to the UAE in the next four years…but we will start implementing a plan for market liberalization in 2015 following consultation with the concerned international parties, including the World Trade Organization to evaluate the local market and its need for a new operator so we can take the right decision at the right time.”

Ghanim also disclosed plans to set up a main internet server in the UAE before the end of 2011 as part of a strategy to upgrade the network and ensure quicker data transfer. He said such a project would cut costs and efforts by receiving services and data from key servers in the US, Europe and other areas.

Follow Emirates 24|7 on Google News.