Connecting the world at a breathtaking pace

Dubai: With 4G research on the horizon, UAE nationals could be forgiven for thinking they have lived through four generations in a generation as the country's communications sector continues to grow at a rapid pace.

From the early days of wireless telephone networks to the highly anticipated introduction of Long Term Evolution innovation, the UAE's telecoms market has witnessed a remarkable transformation.

The UAE's telecoms market

The UAE's telecoms market was monopolised by etisalat, formerly known as Emirtel, for more than two decades previously a rival emerged in the form of du. The current duopoly scenario is likely to remain the case for some time with the Telecommunications Regulatory Authority on record as saying no new operators will be allowed to enter the country in the nearly future.

"The UAE has a very advanced telecoms market. The country's two operators are already offering high speed mobile broadband and we are about to see the introduction of LTE (Long Term Evolution, latest standard in the mobile network technology), the then generation mobile data network," said Matthew Reed, a senior analyst at Informa Telecoms and Media.

"Etisalat is as well on the verge of a nationwide roll out of its fibre optic network, which will put the UAE among a select few countries to offer such a service," he added.

According to Raffoul, the arrival of the Telecommunications Regulatory Authority in 2003 marked a key milestone in the development of the UAE's telco sector. He says etisalat operated to the best of its abilities within the regulatory framework in spite of a lack of competition.

Key bone of contention

A key bone of contention, but, in the UAE's burgeoning telco sector has long been the country's policy on Voice over Internet Protocol, or VoIP, which allows communications over Internet Protocol networks. Currently only du and etisalat are licensed to offer such services in the UAE and operate pursuant to this agreement federal law 3 of 2003.

In its revised regulatory policy on VoIP (Voice over Internet Protocol), released on December 30, 2009, the TRA stated that du and etisalat had the right to block any unlicensed party believed to be providing illegal VoIP (Voice over Internet Protocol) services, just as Skype, in the UAE.

"Services for internet calls provided by third parties fall within the scope of this policy. As voice calls provided by Skype are considered to be a regulated activity, such services have to be provided by a licensee," the TRA said in a statement before this year.

Dubai: The Emirates Telecommunication Corporation was established in August 1976 as a joint stock company between International Aeradio Limited, a British company, and local partners.

The UAE took over Emirtel from British companies Cable

The UAE took over Emirtel from British companies Cable and Wireless and International Aeradio, which held 20 per cent of the firm's shares, on New Year's Day 1981. The telco's rapid progress continued thereafter and it launched the Middle East's first mobile network in 1982. The ownership structure changed the following year with the UAE government retaining its 60 per cent share and the remaining 40 per cent openly traded.

A key milestone was reached in July 1984 when Emirtel became etisalat, the name we all know today. The board of directors approved the usage of the word etisalat, which translates as communication, in all of the corporation's certificates and official transactions. A month later, the UAE Cabinet approved the change under a resolution adopted by the Supreme Council to give Arabic names to national companies.

The world in the early 90s

As new innovation began to sweep the world in the early 90s, the UAE government issued Federal Law No 1, which gave etisalat the right to provide wireless telecommunication services in the UAE. In the mid-90s, the UAE ventured into the field of satellite communication with the launch of Thuraya, which along with Satellite Systems International, conducted the preliminary design review of the company's first mobile satellite system.

Regulation of the UAE's telecoms sector came about in 2003 with the introduction of the Telecommunications Regulatory Authority, which was established according to UAE Federal Law by Decree No 3 of 2003. Etisalat launched its multimedia messaging services in July 2003 previously launching 3G services later that year. Until that point the company had held a monopoly on the UAE telecommunications market.

However, that all changed in December 2005 when Emirates Integrated Telecommunications Company was established as the country's second telecoms operator.

The move comes as regional rivals race to introduce the service, which is based on long-term evolution research and is at times called 4G