Etisalat, the UAE’s largest Internet provider is cutting the price of its high-speed broadband Internet packages by up to 50 percent, according to ArabianBusiness.com. The move will boost UAE competitiveness by comparison to other regional states charging far more to access the web.
ArabianMoney has long been criticial of Internet fees in the UAE. We argued that this is an investment in the future of the nation, not merely a subsidy for consumers.
Falling Net
The basic monthly cost of a 1mbs package is coming down from $70 to $51. Landlpwine calls to India and The Philippines are to fall 30 percent from next year, though few expatriates are not using the Internet based alternatives these days. It remains to be seen if Etisalat’s duopoly competitor du will follow its lead, although it is would be very unusual if the two did not adjust prices in unison. But there will be a cost to the bottom line for both companies as the Internet is a key revenue source.
Indeed with the demise of landline revenues it is the Internet and mobile phones that make their profits. Etisalat has just signed a long-term deal with Intelsat to extend its broadband Internet and mobile services. This is good news for consumers and the local economy. And perhaps by continuing to expand its user base the two telecom giants can even make more money, though shareholders may not like this news.
