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28 March 2024

New VoIP policy to save call costs

The VoIP policy takes into consideration benefits to both the telecom operators and users. (EB FILE)

Published
By Nancy Sudheer

The UAE's Telecommunications Regulatory Authority (TRA) yesterday announced the details of the second version of its VoIP policy, which grants the rights to provide VoIP services within the UAE to the two existing licensees – etisalat and du – and satellite service provider Yahsat.

Etisalat was quick to announce the details of its new VoIP solution for enterprise users. "With the growth in IP networks, there is a significant opportunity for businesses to leverage the advantages of an integrated network and the convergence of voice and data through a VoIP solution," Abdulla Hashim, Senior Vice-President at etisalat, said in an e-mailed statement.

Osman Sultan, du CEO, said the company would soon launch a VoIP package.

Mohammed Gheyath, Executive Director at TRA, said the delay in introducing the service was mainly because they were taking a phased approach towards VoIP. "VoIP has existed since December 2006 and the service is being provided within the country. There were limitations on the policy because international calls were not allowed, as licensees were not authorised to provide the service. This time, there are also exemptions for closed groups and universities," he said.

The issuance of the policy will enable convergence between voice, data and video. "The policy clearly takes into consideration benefits to both the operators and users. The real attraction of VoIP lies in the fact that it enables true integrated services, location independent, with always-on capability and great flexibility. VoIP is no longer a futuristic idea. It should be available to be used right here, right now in the UAE, and anywhere else where there is internet access. The technology has matured, enabling voice quality almost equal to conventional phone calls," said Zoran Vasiljev, partner at management consulting firm Value Partners.

Even technology major Cisco expects the new policy will help reduce costs as the technology lets consumers use the internet to make and receive calls.

"VoIP is also a powerful tool for small businesses to maintain a competitive edge. When consumers switch to an IP-based unified system, they will find that productivity and efficiency increases. Voice and data will enable users to access network at home and work," said Wayne Hull, General Manager at Cisco UAE.

With the new policy, individuals as well as enterprises can now access VoIP services. "Exemptions were created because of the demands from the market and industry. Closed groups or companies can make calls to their branches within the UAE as per the new policy and academic institutions for research purposes can utilise VoIP to contact international counterparts. This all has to be done within the framework provided by the licensee," Gheyath said.

Roger El Tawil, Director for Channel and Marketing, Mena, at unified communications company Avaya, agreed. "This was fairly long awaited as companies have the technology for VoIP but were waiting for it to be available. For businesses and companies, this would mean reducing costs, increasing productivity and collaborating nationally and internationally. National calls were not expensive in the UAE, but now by just dialing an extension, offices can be in touch within the country. This means usage of IP PBX phones over a network provided by etisalat or du."

For closed groups and universities, VoIP will also enable video conferencing.

On the usage of Skype and providing a licence, Gheyath was not completely negative but did not expect it to happen in the immediate future. "Skype can partner with the operators and provide their services. There is no time frame as it is too premature."

The TRA has not imposed a time frame on the licensees for providing VoIP to the end-user, but confirmed that it will conduct a due diligence by the end of this year.

Rouzbeh Pasha, Head of Emerging Markets at Skype, said this is still a small step in advancing UAE's communications market. He said: "In the IP world, there is no reason to distinguish between domestic and international calling. All traffic travels over the global public internet, irrespective of call origin and destination."

VoIP: Everything you need to know, and more

What is Voice over Internet Protocol?

The term VoIP is often used in different ways by different commentators for different purposes. Sometimes it is used to refer to a technology that enables transmission, receiving, delivering and routing of voice telecommunications over IP networks through packet switching (a "VoIP Technology"). At other times it refers to a voice service (with or without video) offered over the internet by a service provider or by self-provisioning (a "VoIP Service").

For the purpose of VoIP Regulatory Policy version 2.0, VoIP services are defined as "All of the services and technologies that allow the transmitting, receiving, delivering and routing of voice telecommunications by means of Internet Protocol (IP)".

Does the TRA regulate VoIP? Is it considered a telecommunications service or internet application?

VoIP services are considered telecommunications services. Where those VoIP services are offered to subscribers, they are regulated activities as per the Federal Law by Decree (3) of 2003 (Telecom Law), which require a licence or an exemption. VoIP services are regulated generally by the TRA regulatory framework and specifically by VoIP Regulatory Policy version 2.0 issued on December 30, 2009. This policy replaced the earlier version (Version 1, issued on December 26, 2006).

What is the difference between this policy and the previous version?

It has always been the case that the licencees may use VoIP technology for the provision of other types of services, such as standard IDD voice services. The current policy stipulates that the licencees may offer a greater range of VoIP services. The current policy also exempts certain scenarios of VoIP services (eg closed group network).

The previous version restricted provisioning of VoIP services (but not VoIP technology) for international calls, while the current one allows licencees to provide VoIP services allowing users to connect to PSTN numbers in other countries.

Who can provide VoIP services in the UAE? Are there any VoIP service providers other than etisalat and du?

Currently only licencees may provide VoIP services in the UAE. This may be provided as either (1) end-to-end voice service (as in the traditional telephony); (2) as a "feature" on top of connectivity service for VoIP services intended for internal communications; or (3) any other form that the licencee wishes to provide. There are certain VoIP services scenarios that the TRA does exempt.

Does the TRA block VoIP traffic running on the internet or websites offering such VoIP services?

The TRA does not block VoIP traffic or protocols. However, as per the VoIP Policy ver. 2.0, the licencees have the right to block illegal VoIP traffic if it is believed that legitimate traffic is being blocked, the customer may raise the issue with the licencee directly.

Will the TRA regulate prices of VoIP services offered by licencees?

The TRA regulates pricing of telecommunications services in general. Currently, the TRA regulatory framework requires that the price of a new telecommunications service to be offered by a licencee, or the change of price of any existing telecommunication service offered by a licencee has to be approved by the TRA in advance.

Can etisalat and du provide international VoIP? Are they required to do so?

Licencees may start offering VoIP services (including international) immediately if all other regulatory requirements (which are applicable to all telecommunication services) are fulfilled.

When should we expect VoIP services from etisalat and du?

There are no regulatory or legal barriers to the licencees providing VoIP services, nor is there any specific requirement for the Licencees to offer VoIP Services within a certain time frame. We suggest that specific questions about the timing or type of VoIP Service offerings be addressed to the Licencees. However, customers may expect that the licencees will make their VoIP service offerings known to the public through their usual market launch processes.

What if licencees did not offer any VoIP services after reasonable time?

One of the TRA's objectives is to "ensure that the Telecommunications Services provided throughout the State, are sufficient to satisfy the public demands of those who wish to make use of such services" (Article 13, Federal Law by Decree (3) of 2003 as amended).

The TRA will review market demand for services from time to time in order to ensure that demand is being is being met in a timely and responsive manner.

Should we expect the prices of VoIP services to be less costly than the current long-distance rates?

There are many factors to be taken into consideration in determining the cost of long-distance rates. In addition, international VoIP calls may take place in a variety of scenarios, which will also influence the cost. There may be scenarios where international calls using VoIP Services may be more economical than current rates.

Is there a market in the UAE for a low-cost, low-quality voice service?

Whether such demand exists and can be addressed is a matter for the licencees, and specific questions in this regard should be directed to them.

Should not du and/or etisalat join forces with companies such as Skype to offer a wider range of services?

This is a commercial decision for the licencees, and therefore this question should be directed to them. However, customers may expect that any decision of the licencees to partner with such companies will be made known to the public.

Does the policy cover internet calls provided by third parties such as Skype? Can I use such software to call internationally?

Services for internet calls provided by third parties fall within the scope of this policy. As voice calls provided by Skype are considered to be a regulated activity, such services have to be provided by a licencee. Hence it is illegal to use such software to make calls (eg Skype-out/Skype-in), unless this third party (eg Skype) is licensed by the TRA to provide such services or a licencee provides the service in collaboration with third party.

I have purchased software that enables internet calls, and it works in the UAE. Does that mean it is legal to use such software in the UAE?

Unless this software is provided by a licencee, it is very likely that it is illegal to use this software to make internet calls. If the service is not provided by a licencee, the TRA urges you to not to use such software as:

- you are legally liable for such action, and

- the licencees have the right to and most probably will block your illegal traffic.

Sometimes, when I access the website of a VoIP service provider, the website is blocked. Why is that?

The TRA does not block websites. However, the licencees are required to block access to certain unacceptable content including unlicensed (and therefore illegal) VoIP services. If you believe that a legitimate website is being blocked, you may raise the issue with the concerned licencee directly.

Source: Telecommunications Regulatory Authority, UAE

General Provisions of TRA's VoIP Policy 2.0

- To the extent that the provision of VoIP services requires a person to engage in or conduct a regulated activity in the state, that person will need to have been issued with a licence to do so, in accordance with the law. At present there are two licencees, which are legally entitled to engage in or conduct regulated activities in the state. It is not the TRA's present intention to issue any further licences.

- Where a licencee believes that a VoIP service is being provided by a person not licensed to do so under the law, over a public telecom network operated by that licencee, that licencee will be entitled to block that VoIP service, unless instructed by the TRA to do otherwise.

- This policy does not apply to the provision of VoIP services exclusively over a closed group network, where:

- the relevant calls originate and terminate in the UAE; or

- where the closed group network exists solely for a public interest purpose.

- A VoIP service may be provided by any person whether or not that person has a licence, where that service is only between users of a closed group network.

- The TRA may at its discretion issue VoIP deployment guidelines.

Source: TRA Regulatory Policy, VoIP, Version 2.0, issued on December 30, 2009