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UAE breaks telecom monopoly with new firm
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Published: Saturday, 7 May, 2005, 12:24 PM Doha TimeABU DHABI: The United Arab Emirates (UAE) government yesterday said it had licensed a new telecommunications company with a capital of $1.08bn, breaking state-owned Etisalat’s monopoly.

The new company, licensed by a government commission charged with regulating the telecom sector, will be 40% owned by the government, the official Wam news agency reported.

Private investors will own a part while an unspecified portion will be open for public subscription, it said.

The move is “the first step toward liberalising the telecom sector” and aims at “giving consumers another suitable option,” said Minister of State for Financial and Industrial Affairs Mohamed Khalfan bin Khirbash, who heads the commission.

Wam said the new company would start operating “in stages” to be announced in the coming months, but gave no precise timeline.

A decree issued in April last year restructured the telecom sector in the Gulf state, ending the monopoly held by Etisalat, which is also a partner in the UAE’s Thuraya Satellite Telecommunications Company along with Abu Dhabi Investment Company, Arabsat and Qatar’s Qtel.

Etisalat has 1.2mn fixed lines, 3.9mn GSM users and more than 430,000 Internet subscribers in the UAE. – AFP

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