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UAE Records 3% Rise in Annual Mobile Revenue
Jun 14, 2010

The number of mobile subscribers has been annually increasing in the UAE although the penetration crossed 200% on the back of operators’ efforts and high demand for smartphones.
 
As per the data released by the Telecommunications Regulatory Authority (TRA), the first annual market review exhibits that the mobile usage lead to revenue increase by 3% in the UAE with the number of subscribers surged by 14%, as reported by TMCnet.com.
 
The annual subscriptions have been rising although the penetration crossed 200%. The mobile phones airtime minutes of 20 Million generated revenue of Dh 17,787 Million.
 
The main reason for the growth in the telecom sector is the efforts put in by the telecom operators. The operators, du and etisalat, fiercely compete on the mobile front. Special packages and offers are the leading cause of revenue growth. The development has forced both the operators to concentrate on finding new streams of income.
 
Besides, the operators are concentrating on value-added services on mobile phones like providing broadband services. The demand for broadband services has been generated by Blackberry, iPhone and other smart phones. The operators have also shown great enthusiasm towards triple-play service.
 
Du has already been engaged in providing the bundle of telephone, Internet and television services in its operating areas. etisalat has recently introduced eLife that includes the three services to all the homes linked by fibre-to-home network.
 
Apart from this, high demand for smartphones has also contributed to the growth of telecom sector. GfK, a market research firm, has said that the smartphone market surpassed the traditional mobile phone market in the UAE in terms of value for the first time, with the growth rate of 47% in QA1 2010 against Q4 2009.

As per a market research report “Booming UAE Telecom Sector” by RNCOS, the UAE telecom sector is expected to post strong growth this year. The revenue generation from mobile subscriptions will touch nearly Dh 20 Billion in 2010. Moreover, the introduction of new generation smartphones late this year will give impetus to the telecom sector.
 
According to a Research Analyst at RNCOS, “The UAE telecom sector has recorded stupendous growth over the past few years. The telecom operators should prepare themselves for tougher competition in order to expand their services and grab the growth opportunities. To raise their revenue, the operators should extend and diversify their services to include those offering that go beyond the basic telecom services.”
 
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