Second GSM License for the United Arab Emirates

A second GSM license has been formally granted to Emirates Integrated Telecommunication Company, which says it plans to launch services later this year under the "Du" brand name. EITC Chairman Ahmad Bin Byat said the signing of the full services telecom licence by the UAE Supreme Committee for the Supervision of the Telecommunications Sector (SCSTS) marked a new era in telecommunications in the UAE. "This is an important milestone for the telecommunications industry, the economy of the UAE and for consumers across the country.

"Customers now have a second telecommunications company that will begin providing advanced and diverse services and freedom of choice."

EITC will provide advanced mobile and fixed line services, broadband internet and pay TV packages.

The licence, which grants EITC the right to install, operate, and manage a public telecom network providing services across the United Arab Emirates, was signed by SCSTS Chairman, Engineer Sultan bin Saeed Al-Mansoori, the Director General of the Telecommunications Regulatory Authority, Mohammed Nasser Al-Ghanim, and the Chief Executive Officer of EITC, Osman Sultan.

The company plans to raise US$650 million through a stock market floatation of 20% of its stock later this year in order to fund the network rollout. The government will retain a 50% holding, while the remaining shareholders, Mubadala Development Company and Emirates Communication and Technology will see their holdings shrink.

The market expects full liberalisation by 2015.

According to The Mobile World, the incumbent operator - Etisalat has a total of 4.5 million subscribers. Not bad for a country with an official population of 2.5 million ! The true population figure is somewhat higher thanks to the large expatriate society, estimated to bring the total to around the 4.5 million mark."

Posted to the site on 21st February 2006