Wednesday, February 01, 2006

Monopoly Money :: 7DAYS
Etisilat profits from monopoly

Read the whole thing. Among the good questions raised: how are high prices for internet service consistent with the objective of building a knowledge economy? Here's another: how are high prices for long distance calls consistent with Dubai's goal of developing as an outsourcing center?

Will the new entrant bring down prices? Here's what 7DAYS reports:
“What will really bring about better service from Etisalat is competition,” said the analyst.

The UAE will get a second mobile operator in the second half of this year, although doubt has been cast on its ability to compete fully as it is owned by the UAE government, as is Etisalat, and said it has no plans to involve international expertise.

It will, however, compete on price, it said, reversing an earlier declaration that it would not do so.

Hmm. What I seen reported elsewhere says just the opposite. They won't be competing on price, but the new entrant will employ international experts.


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