Unit 3: Anti-Competitive practice in the UAE!

Etisalat rapped by telecoms watchdog for blocking rival's number - 7 Days Article

The rivalry between the UAE's two mobile operators was laid bare on Monday.

It came after the country’s telecoms watchdog said Etisalat breached its rules by blocking a number set up by du to lure away its customers.

The Telecommunications Regulatory Authority (TRA) has “issued a violation decision against Etisalat” after the country’s biggest telecoms firm failed to respond to the regulator’s request to lift a block on a ‘short code’ number used by du for an SMS offer.

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   The Telecommunications Regulatory Authority (TRA) has “issued a violation decision against Etisalat” for blocking a du number

Last week du launched a media campaign aimed at encouraging Etisalat customers to “indicate their interest in shifting to du” when UAE mobile customers are next month finally given the option of keeping their old number after changing operators. The campaign invited customers to send an SMS to the number 3553, after which they would receive a message from du with details of how to change.

However, the regulator said: “It came to the TRA’s attention that the short code 3553 had been blocked by Etisalat.”

The watchdog added: “This meant Etisalat mobile subscribers who sent a message to the short code did not receive a response from du. It is understood that this block has been in effect since around November 21, 2013.”

The latter date marks the day after du started publicising its campaign. The TRA said it instructed Etisalat “to immediately lift the block” on the 3553 code “and any other short codes used by du to promote its products and services”.

The watchdog then said it moved to issue the UAE’s largest telecom operator with a violation decision “in response to Etisalat’s failure to comply with these instructions”. A source at the TRA yesterday confirmed that such a step would involve a financial penalty for Etisalat.

Last month, the TRA announced that Mobile Number Portability (MNP) - the formal name for being able to hold onto your number after changing operators - would be introduced before the year is out.

Last night du called Etisalat’s blocking of the number “an unfortunate turn of events”.

In a statement, the firm said: “Despite this temporary setback, which interrupted our ability to reach out to customers who are interested in MNP, we believe that forming a competitive atmosphere in the country is a vital and healthy practice, which is in line with the UAE leader­ship’s vision.

“Du came into being in the UAE market in compliance with the objective of giving choice in telecom services to people.”

Etisalat had not responded to a request for comment last night.

Questions for discussion:

What type of market structure is the telecommunications industry in the UAE? (4)

What punishment could the regulator give to Etisalat and how effective would this be? (8)