du vs etisalat business plan

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du challenges Etisalat with new business plan

Du has announced a new mobile payment plan targeting local business users, a direct challenge to etisalat..

Du has announced a new mobile payment plan targeting local business users, a direct challenge to Etisalat, the operator that currently dominates the local market. The offering includes two new plans, entitled the "Business Super Plan", that aims to attract the country's small-to-medium enterprise (SME) sector with rates as low as Dh1 per minute. The plans also include special deals on international roaming charges and unlimited BlackBerry offers.

Farid Fardooni, the executive vice president of du's commercial division, said the new plans were a continuation of the network's "premier" packages it launched earlier this year. "We all know that the SME's are the backbone of any economy. This is a segment which we don't really believe is addressed well here, from our point of view, and these plans are structured to address their needs," Mr Fardooni said.

Although official statistics vary, of the 260,000 businesses in the UAE, about 80 per cent of them are SMEs, according to the consultancy firm Ruwad Establishment, a division of the Sharjah Chamber of Commerce and Industry. In the basic plan, customers will pay Dh150 per month for 150 international minutes and 150 local minutes. After the monthly quotas are used up, customers will then pay Dh1.65 per minute for international calls and Dh0.30 per minute for local calls.

Although du does not compete directly on prices with Etisalat, the fact the new plans target the international segment is a savvy one, said Irfan Ellam, an analyst at Al Mal Capital. "We're in a unique market, so this is a much higher proporation of international traffic compared to other markets," Mr Ellam said. "International traffic is also very lucrative as well and charging for overseas calls in the market is a good revenue driver for the operators."

The offer would likely allow du to meet its target of 35 per cent of the UAE mobile market by the end of next year, Mr Ellam said. The network now has 2.9 million active subscribers, roughly 30 per cent of the market. In an indication that its lower-cost business model is proving to be attractive during the economic downturn, du reported 56,000 new subscribers in the second quarter of this year, while Etisalat lost more 80,000 users.

Said Irfan, the research manager for telecoms for the consultancy IDC Middle East, said the new offer was an "obvious plan" for du to capitalise quickly on the bad press Etisalat received last month after sending its BlackBerry users a software patch that later turned out to be "spyware". "It's clear that they want to turn over some of those BlackBerry subscribers from Etisalat as well as for some companies that are revisiting their corporate mobile plan because of the economic crisis," Mr Irfan said.

"I've heard of a few SME companies that have already been rethinking their mobile plans and something like this would definitely be attractive to them." Smartphone mobile subscribers, using devices such as Research In Motion's BlackBerry and Apple's iPhone, represent more than 60 per cent of the industry's total profit margin and is one of the few growth drivers as subscribers discard their old mobile phones for devices that can perform more robust multimedia and e-mail functions.

Although Etisalat is the only UAE operator to offer the iPhone, du is expected to offer the new iPhone 3G S sometime after Ramadan, which is likely to provide another boost to the network's profits. Mr Fardooni declined to comment on the company's upcoming iPhone plans. "The revenue generated by an iPhone user is five times that of a normal user. As Etisalat already has iPhone customers, it's a prime example of how they've made their revenue numbers. Although du will offer the iPhone with no existing [iPhone] customers, it will still make a difference for them," Mr Ellam said.

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United Arab Emirates

Opensignal is the independent global standard for analyzing consumer mobile experience. Our industry reports are the definitive guide to understanding the true experience consumers receive on wireless networks.

Author: Francesco Rizzato , Principal Technical Analyst Data Collection Period: Jan 01 - Mar 31, 2022

Author: Francesco Rizzato, Principal Technical Analyst

Data Collection Period: Jan 01 - Mar 31, 2022

Key Findings

Etisalat users see the fastest overall download speeds but du wins the 5g award.

Etisalat wins the Download Speed Experience award with a score of 40.1 Mbps, having secured a lead of 12.6 Mbps (45.8%) over du which scored 27.5 Mbps. However, when we look at the average 5G download speeds of our 5G users, it is du that comes on top, and wins the 5G Download Speed with a score of 313.2 Mbps — ahead of Etisalat’s 288.1 Mbps.

Etisalat wins both Video Experience awards outright

Our users on Etisalat’s network had the best video streaming experience seen in the United Arab Emirates. In fact, Etisalat wins the overall Video Experience award and also comes on top for the 5G Video Experience award. Etisalat wins in the two categories with scores of 56.7 and 76.8 on a 100 point scale, and leads of 9.9 and 4.5 points, respectively, over its rival du.

du comes ahead in Games Experience but shares the 5G award with Etisalat

Our users had the best overall Games Experience on du’s network with a score of 61.5 points, compared to Etisalat’s 57 points, which means du is the outright winner in this category. However, our users experienced no difference in the 5G Games Experience of the two operators, as they had statistically tied scores in the 74.8-76.8 point range, meaning that the two operators share that 5G award.

du leads in 5G Availability and 5G Reach

In the Coverage section, du is the sole winner of both 5G Availability and 5G Reach awards. In 5G Availability du scored 20% compared to Etisalat’s 10.5%, while du’s 5G Reach score was 5.1 points — 1.5 points higher than Etisalat’s 3.6 points. 5G Availability represents the proportion of time that 5G users had an active 5G connection, while 5G Reach measures the proportion of locations where our users observed 5G out of all the places they visited.

Etisalat wins both Excellent and Core Consistent Quality awards outright

Etisalat wins the Excellent Consistent Quality award with a 10.9 percentage points margin over second-placed du. In Core Consistent Quality, Etisalat once again beats du, but this time by a lesser margin of 9.8 percentage points. Consistent quality quantifies how often users’ experience on a network was sufficient to support common applications’ requirements. Excellent Consistent Quality analyzes the percentage of users' tests that met the minimum recommended thresholds for watching HD video, completing group video conference calls and playing games. Core Consistent Quality uses thresholds for less demanding applications.

Mobile Experience Awards

Market Overview

In Opensignal's latest United Arab Emirates Mobile Network Experience report we analyze both the 5G experience and the overall experience together for the first time in one report. Also, we add two new awards that quantify the consistency of the experience on the country’s two national operators.

Etisalat leads across most mobile experience categories in the United Arab Emirates based on Opensignal’s awards table as it wins 10 awards outright — four awards in the Overall Experience section, three awards in the 5G Experience section, Availability as well as both Consistent Quality awards. On the other hand, du is the outright winner in Games Experience, 5G Download Speed as well as in both measures of a 5G network’s extent — 5G Availability and 5G Reach. The two operators share the remaining 5G Games Experience award.

United Arab Emirates’ mobile operators continue to explore innovative 5G solutions and use cases for businesses and consumers. In March , Etisalat announced the successful deployment and testing of a live end-to-end multi-vendor Voice over New Radio (VoNR) ecosystem, while du in November showcased a live use case of a 5G controlled robot over a private 5G standalone access network leveraging AWS and Athonet technologies.

In this report we examine the mobile network experience of the two main mobile network operators in the United Arab Emirates — du and Etisalat — over a period of 90 days starting on January 1, 2022 and ending on March 31, 2022, to see how they fared.

Overall Experience

National Analysis

Etisalat is the outright winner of the Video Experience award with a score of 56.7 points on a 100 point scale. It wins by a convincing margin — 9.9 points (21.1%) ahead of second placed du which scored 46.8 points.

Looking at 5G Video Experience — which measures the experience of our 5G users when connected to a 5G network — we observed impressive gains compared to the overall experience measured across all mobile technologies. In fact, in 5G Video Experience Etisalat and du scored 20.1 and 25.5 points higher than their overall Video Experience scores.

Definitions

Opensignal’s Video Experience quantifies the quality of video streamed to mobile devices by measuring real-world video streams over an operator's networks. The metric is based on an International Telecommunication Union (ITU) approach, built upon detailed studies which have derived a relationship between technical parameters, including picture quality, video loading time and stall rate, with the perceived video experience as reported by real people. To calculate video experience, we are directly measuring video streams from end-user devices and using this ITU approach to quantify the overall video experience for each operator on a scale from 0 to 100. The videos tested include a mixture of resolutions — including Full HD (FHD) and 4K / Ultra HD (UHD) — and are streamed directly from the world’s largest video content providers.

In addition to Video Experience, we report on the following metrics related to video experience:

Our users had their best experience when playing multiplayer mobile games over cellular connections on du’s network. The operator scored 61.5 points on a 100 point scale, with a 4.5 point lead over second-placed Etisalat’s score of 57 points.

We observed some large gains looking at 5G Games Experience as du and Etisalat’s scores were 13.3 and 19.8 points higher, respectively, compared to the overall experience measured across all mobile technologies.

Opensignal’s Games Experience measures how mobile users experience real-time multiplayer mobile gaming on an operator’s network. Measured on a scale of 0-100, it analyzes how our users’ multiplayer mobile gaming experience is affected by mobile network conditions including latency, packet loss and jitter.

Games Experience quantifies the experience when playing real-time multiplayer mobile games on mobile devices connected to servers located around the world. The approach is built on several years of research quantifying the relationship between technical network parameters and the gaming experience as reported by real mobile users. These parameters include latency (round trip time), jitter (variability of latency) and packet loss (the proportion of data packets that never reach their destination). Additionally, it considers multiple genres of multiplayer mobile games to measure the average sensitivity to network conditions. The games tested include some of the most popular real-time multiplayer mobile games (such as Fortnite, Pro Evolution Soccer and Arena of Valor) played around the world.

Calculating Games Experience starts with measuring the end-to-end experience from users’ devices to internet end-points that host real games. The score is then measured on a scale from 0 to 100.

In addition to Games Experience, we report on the following metrics related to games experience:

Etisalat is the outright winner of the Voice App Experience award, with a score of 74.3 points on a 100 point scale. However, its margin of victory is relatively narrow, given second-placed du’s score of 72.9 points. While Etisalat placed in the Acceptable category (74-80), du’s score was just over one point shy of joining the same category and earned a Poor rating (66-74).

Opensignal's Voice App Experience measures the quality of experience for over-the-top (OTT) voice services — mobile voice apps such as WhatsApp, Skype and Facebook Messenger — using a model derived from the International Telecommunication Union (ITU) approach for quantifying overall voice call quality and a series of calibrated technical parameters. This model characterizes the exact relationship between the technical measurements and perceived call quality. Voice App Experience for each operator is calculated on a scale from 0 to 100.

Our users observed the fastest average overall download speeds on Etisalat’s network — 40.1 Mbps, which was 12.6 Mbps (45.8%) faster than second-placed du’s score of 27.5 Mbps. As a result, Etisalat is the outright winner of the Download Speed Experience award.

Measured in Mbps, Download Speed Experience represents the typical everyday speeds a user experiences across an operator’s mobile data networks.

In addition to Download Speed Experience, we report on the following metrics related to download speeds:

Etisalat users observed the fastest average overall upload speeds — 10.3 Mbps, which means that Etisalat is the sole winner of the Upload Speed Experience award. It wins by a margin of 2.7 Mbps (35%) over du given the latter’s score of 7.6 Mbps.

Upload Speed Experience measures the average upload speeds for each operator observed by our users across their mobile data networks. Typically upload speeds are slower than download speeds, as current mobile broadband technologies focus resources on providing the best possible download speed for users consuming content on their devices. As mobile internet trends move away from downloading content to creating content and supporting real-time communications services, upload speeds are becoming more vital and new technologies are emerging that boost upstream capacity.

In addition to Upload Speed Experience, we report on five supporting metrics related to upload speeds:

5G Experience

Our Etisalat users had the best video streaming experience when connected to 5G networks. In fact, Etisalat’s score of 76.8 points was 4.5 points (6.2%) higher than du’s 72.3 points. Both operators’ scores for 5G Video Experience were much higher than their overall scores — across all generations of mobile technology — with the improvement ranging from 20.1 points for Etisalat to 25.5 points for du.

5G Video Experience quantifies the quality of mobile video experienced by Opensignal users on real-world video streams when they were connected to 5G. The metric is based on an International Telecommunication Union (ITU) approach, built upon detailed studies which have derived a relationship between technical parameters, including picture quality, video loading time and stall rate, with the perceived video experience as reported by real people. To calculate 5G Video Experience, we are directly measuring video streams from end-user devices and using this ITU approach to quantify the video experience observed by our users on each operator’s 5G network on a scale from 0 to 100. The videos tested include a mixture of resolutions — including Full HD (FHD) and 4K / Ultra HD (UHD) — and are streamed directly from the world’s largest video content providers.

Our users’ multiplayer mobile gaming experience when connected to 5G networks was statistically similar on the two national networks. In fact, du and Etisalat scores were statistically tied in the 74.8-76.8 point range. These 5G Games Experience scores were much higher than their overall scores — across all generations of mobile technology — with the improvement ranging from 13.3 points for du to 19.9 points for Etisalat.

5G Games Experience measures how mobile users experience real-time multiplayer mobile gaming on an operator's 5G network. It analyzes how our users’ multiplayer mobile gaming experience was affected by mobile network conditions including latency, packet loss and jitter. 5G Games Experience for each operator is calculated on a scale from 0 to 100.

5G Games Experience quantifies the experience when playing real-time multiplayer mobile games on mobile devices connected to servers located around the world. The approach is built on several years of research quantifying the relationship between technical network parameters and the gaming experience as reported by real mobile users. These parameters include latency (round trip time), jitter (variability of latency) and packet loss (the proportion of data packets that never reach their destination). Additionally, it considers multiple genres of multiplayer mobile games to measure the average sensitivity to network conditions. The games tested include some of the most popular real-time multiplayer mobile games (such as Fortnite, Pro Evolution Soccer and Arena of Valor) played around the world. Calculating 5G Games Experience starts with measuring the end-to-end experience from users’ devices to internet end-points that host real games.

Etisalat is the outright winner of the 5G Voice App Experience award with a score of 80.5 points on a 100 point scale, while du comes in second place with a score of 78.6 points. While Etisalat earned a Good rating (80-87), du placed in the Acceptable (74-80) category.

5G Voice App Experience quantifies the experience of Opensignal users when using over-the-top voice apps — such as WhatsApp, Skype and Facebook Messenger — on an operator’s 5G network. It uses a model derived from the International Telecommunication Union (ITU) approach for quantifying overall voice call quality and a series of calibrated technical parameters. This model characterizes the exact relationship between the technical measurements and perceived call quality. 5G Voice App Experience for each operator is calculated on a scale from 0 to 100.

Our du users saw the fastest average 5G download speeds — 313.2 Mbps, making du the sole winner of the 5G Download Speed award. However, Etisalat wasn’t far behind as it scored 288.1 Mbps — 25.1 Mbps slower than its rival.

Operators’ 5G Download Speed scores were 7.2-11.4 times faster than their overall Download Speed Experience scores, highlighting the extent to which average overall download speeds could improve once users spend the majority of their time connected to 5G.

5G Download Speed shows the average download speed experienced by Opensignal users across an operator’s 5G network. 5G Download Speed for each operator is calculated in Mbps (Megabits per second).

Etisalat is the outright winner of the 5G Upload Speed award, as our users on its network observed the fastest 5G upload speeds of 33.8 Mbps, compared with 25.3 Mbps experienced by du users. Both operators’ 5G Upload Speed scores were 3.3 times faster than their overall Upload Speed Experience scores.

5G Upload Speed measures the average upload speeds experienced by Opensignal users across an operator’s 5G network. 5G Upload Speed for each operator is calculated in Mbps (Megabits per second).

Etisalat is the outright winner of the Availability award, with a score of 98.3%. This means that our Etisalat users spent the largest proportion of time connected to either 3G, 4G, or 5G. Etisalat’s rival du comes second with a score of 97.9% — less than 0.5 percentage points behind the winner’s score.

Our availability metrics are not a measure of a network’s geographical extent. They won’t tell you whether you are likely to get a signal if you plan to visit a remote rural or nearly uninhabited region. Instead, they measure what proportion of time people have a network connection, in the places they most commonly frequent — something often missed by traditional coverage metrics. Looking at when users have a connection rather than where, provides us with a more precise reflection of the true user experience.

We also keep track of the instances that leave mobile users most frustrated: when there is no signal to connect to at all. The most common dead zones users struggle with occur indoors. As most of our availability data is collected indoors (as that’s where users spend most of their time), we’re particularly astute at detecting areas of zero signal.

Our availability metrics take a user-centric, time-based approach that complements the user-centric and geographical-based methodology used by our reach metrics.

Availability shows the proportion of time all Opensignal users on an operator’s network had either a 3G, 4G or 5G connection.

The coverage maps show the locations where we received measurements from users connecting with 3G or better mobile service. Each map provides an indication of the areas in which it is possible to obtain mobile service from that mobile operator.

Our 5G users spent the greatest percentage of time connected to 5G on du’s network, meaning that du is the winner in this category. While du scored 20% in 5G Availability, Etisalat’s score was just over half that of its rival — 10.5%.

5G Availability shows the proportion of time Opensignal users with a 5G device and a 5G subscription had an active 5G connection.

According to our measurements, du is the outright winner in 5G Reach with a score of 5.1 points on a 10 point scale, while Etisalat comes second with a score of 3.6 points. 5G Reach measures the proportion of locations where our users observed 5G out of all the places they visited.

5G Reach measures how users experience the geographical extent of an operator’s 5G network. It analyzes the average proportion of locations where users were connected to a 5G network out of all the locations those users have visited. In simple terms, 5G Reach measures the 5G mobile experience in all the locations that matter most to everyday users – i.e. all the places where they live, work and travel. 5G Reach for each operator is measured on a scale from 0 to 10.

Consistency

Etisalat is the sole winner of the Excellent Consistent Quality award with a score of 70.1%, which was 10.9 percentage points higher than that of second-placed du’s 59.3%. Excellent Consistent Quality measures the proportion of users' tests on a network that met the minimum recommended performance thresholds for HD video, group video conference calls and gaming.

Consistent Quality measures how often users’ experience on a network was sufficient to support common applications’ requirements. It measures download speed, upload speed, latency, jitter, packet loss, time to first byte and the percentage of tests attempted which did not succeed due to a connectivity issue on either the download or server response component.

Full details on how the Consistent Quality metrics — Excellent Consistent Quality and Core Consistent Quality — are calculated can be found here .

Excellent Consistent Quality is the percentage of users’ tests that met the minimum recommended performance thresholds to watch HD video, complete group video conference calls and play games.

As is the case with Excellent Consistent Quality, Etisalat is the outright winner of the Core Consistent Quality award — as based on our measurements it met the minimum recommended performance thresholds for lower performance applications including SD video, voice calls and web browsing for the highest proportion of users' tests (78.8%). Etisalat’s rival du places second with a score of 68.9%.

Core Consistent Quality is the percentage of users’ tests that met the minimum recommended performance thresholds for lower performance applications including SD video, voice calls and web browsing.

Related Analysis

Our methodology.

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Confidence Intervals

For every metric we calculate statistical confidence intervals indicated on our graphs. When confidence intervals overlap, our measured results are too close to declare a winner. In those cases, we show a statistical draw. For this reason, some metrics have multiple operator winners.

In our bar graphs we represent confidence intervals as boundaries on either sides of graph bars.

In our supporting-metric charts we show confidence intervals as +/- numerical values.

Etisalat and Du Companies Marketing Strategies Research Paper

Executive summary.

Two companies, viz. the Etisalat and the Du, serve the UAE’s telecommunication industry. Etisalat has enjoyed a monopoly market since 1976. Du was launched in 2007, and this move has caused a steep subscriber drop for Etisalat. This paper examines the marketing strategies employed by the two companies in the UAE. The method used entails studying the information available in the magazines, promotional materials, website contents, and later interviewing customers randomly. The research has found that the two companies make strategies to beat each other. These strategies have been discussed in detail in this paper. The research has also found out that the objective of Etisalat in the market is to offer quality services while that of Du is to offer affordable services. Consequently, Du has low-priced products, and Etisalat does not reduce its prices as a competing strategy. Despite Du having lower prices, Etisalat remains the largest market shareholder in the industry.

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Introduction

Only two telecommunications companies operate in the United Arab Emirates (UAE). The companies are the Etisalat and the Du. Etisalat enjoyed a monopoly in the telecommunication industry until Du launched its operation in early 2007. Nevertheless, Etisalat, which enjoys a market share of 80%, is the largest telecom in the UAE. Worldwide, Etisalat is the sixteenth largest telecommunications company. Mobile phone users in the UAE increased by a rate of 25.6 % every year, which beats the population growth of the country by four times (Business Monitor International, 2011). The competition between the two rival telecoms, viz. Etisalat and Du are seen through their increasing market share convergence. For instance, Du has expanded its market share from 2.4% to over 40% within four years. According to its CEO, the company intends to increase its mobile market share to exceed 50% within two to three years. The telecommunication sector in the UAE expects more segmentation in the future. The CEO further states that the domestic telecoms sector is expected to register the setup of new firms engaged in areas of digital services, digital content, and value-added services. The two telecoms shape their products and services to attract a large number of expatriates in the UAE. All the two operators have products targeting the residents with families and friends living abroad. These products are in the form of promotions based on international calling rates and messaging (Business Monitor International, 2011). The promotions may focus on religious festivals of certain groups or their traditional holidays. A good example is the Eid al-Adha festive season in November when the telecom operators reduce their rates (Kovacs, 2014). However, the two operators have permanent offers that allow subscribers to enjoy discounts on call rates to selected numbers. This feature includes both national and international options. These services have emerged due to an earlier decision by the Telecommunication Authority (TRA) to ease previous regulations. It is now easier for the operators to change their rates so that they compete with one another more effectively. Surprisingly, this increasing competition has not caused prices to fall, unlike in other mobile markets. However, the case of the UAE could be due to the limited level of competition in the mobile market. Since the two players are avoiding price wars, they concentrate on promotions and developing new services to attract customers. Therefore, it can be seen that the mobile market in the country is expanding. With the evolution of technology, novel products are emerging in the UAE markets. Telecommunication services are very important, and much demanded in the UAE. Due to this demand, the two companies are moving fast to develop new products that attract more customers. In addition, they are developing marketing strategies that could push their products through this steep competition, and thus expand their market coverage. This paper explores the marketing strategies of Etisalat and Du telecom companies in the UAE.

Literature Review

Du versus etisalat.

The Emirates Telecom Company (Etisalat) started in the year 1976. It has been dominating the entire UAE telecommunications market as a monopoly until 2005 when this market dominance was broken as the TRA approved another company, viz. Du, in the industry. According to Business Monitor International (2011), the stakeholders of Etisalat entail the UAE government (60%) and the Emirati citizens (40%). When Du entered the market, Etisalat officially changed its corporate logo. After changing the brand identities, Etisalat adopted a new approach due to the pressure from the new market entrant. The new approach adopted by the monopolist had a different vision and direction of creating public awareness. In addition, the entrance of the competitor saw the monopolist upgrade its customer care by adding a toll-free customer care line. Du uses an outstanding strategy, which differentiates it from Etisalat. It offers “many choices to the customers and creates a difference in quality, innovation, and pricing of its products and services” (Hamid, 2013, par. 5). The rate at which the Du’s market share has increased from 2% to 40% within four years proves that it has been the customers’ preferred selection in the UAE market. The company’s strategy embraces cultural diversity, and thus its staff members are from more than 60 countries. The company appreciates the “prosperous cultural diversity of the UAE and serves customers from a variety of languages and in a move to support the Emiratization movement in the UAE, more than 50% of its top management, and customer care staff are UAE nationals” (Hamid, 2013, pa. 7). Du’s strategy focuses on offering a variety of high quality and cost-effective products and services. This element is the weakness of Etisalat, which has never revised its prices and strategies for a long time. These innovative and customer-centered strategies are enabling Du to attract more customers progressively.

Subscriber Dynamics

In 2011, Etisalat reported that its mobile subscriber base was 7.4 million users. However, the data from the TRA sources showed that the company had 6.463million subscribers at the end of 2011 (Kovacs, 2014). This aspect indicated that the company had suffered a reduction in subscribers for a second consecutive year. Market data indicates that in 2010, up to 169,000 subscribers stopped using Etisalat, while in 2011, another 130,000 subscribers dropped the company’s services (Kovacs, 2014). The general slowdown experienced by Etisalat indicates a high mobile penetration rate in the UAE. In addition, it signifies intense competition from the competitor, viz. Du. This steep competition is having a considerable effect on the monopolist’s subscriber growth. Due to this slow growth in recent years, the market share of Etisalat has continued to contract. According to the TRA figures, by the end of 2011, the monopolist’s market share had fallen to 58.4%, which was significantly down from 64.4% a year earlier (Business Monitor International, 2011). In 2010, the subscriber base of Du reached its record 4 million after hitting 4.333 million. In 2011, Du experienced more growth through the addition of 271,000 subscribers, which translated into 6.3% growth. After this addition, its subscriber base stood at 4.604 million (Business Monitor International, 2011). This robust growth in subscriber base has resulted in the expansion of its market share from 9.3% in 2007 to 41.6% at the end of 2011. In general, Du has been reporting higher subscriber additions as compared to Etisalat. It can be assumed that the new subscribers for Du have migrated from Etisalat, given that it is experiencing loss in the customer base. This market dynamic could change if the Virgin Group of UK launches its Mobile Virtual Network Operator (MVNO). In 2010, the group identified the UAE as a key market that it would target (Business Monitor International, 2011).

Subscriber Mix and ARPU

Like the majority of the markets in the Middle East, the UAE has a high number of prepaid subscribers. This aspect is attributed to the fact that Middle Eastern phone users change their mobile handsets frequently up to more than three times in a year. Consequently, the prospect of committing to a long-term agreement on a single handset becomes unattractive to the majority of the users. The number of postpaid subscribers hit the one million mark at the end of 2010, which constituted about 9.8% of the total subscriber base (Business Monitor International, 2011). This aspect was a marginal increment from 9.3%, which was reported early the same year. During the same period, the prepaid subscribers fell from 90676 to 9.607. This fall could be attributed to the discounting of inactive lines. In 2009, Du’s reports showed that it had about 170,000 postpaid subscribers on its network, which was about 4.9% of its total customer base (Kovacs, 2014). The operator had been in continued efforts to improve the quality of its subscribers. The efforts included offering attractive bundles containing free voice and data bundles. Due to these efforts, the number of postpaid subscribers on its network increased to 194,000, which translates to 5% of its total subscriber base by the beginning of 2010. The growth in subscriber base continued in 2010 so that by the end of that year, the operator reported a net gain of 51,000, thus increasing its postpaid subscribers to 296,000, which was an equivalent of 6.8% of its total subscriber base at the end of 2010 (Business Monitor International, 2011). A further expansion in subscriber base was experienced in early 2011, where 46,000 subscribers were recorded. After this addition, the operator’s postpaid subscriptions rose to 306,000. Nevertheless, there was no impact on the subscriber mix because increase intake of prepaid services meant that the proportion of postpaid subscriptions fell marginally to 6.6% of the total customer base by early 2011. From the above subscriber data from Du and the market data from the TRA, it could be estimated that by early 2011, Etisalat had about 932,000 postpaid subscribers. It is important to note that Etisalat does not provide a breakdown of its subscriber mix. This aspect constitutes 14.4% of its total subscribers. From these figures, an increase is noted from 807,000 to 916,000 postpaid customers between March and December 2010. Like its competitor, Etisalat sought to improve its subscriber mix and launched a new postpaid service dubbed MyPlan targeting existing and new postpaid customers. MyPlan offered four flexible packages with a maximum monthly tariff of AED449. In the package, there are different options for both international and local calls, mobile data, and text messages. The operator also provided subscribers with free smartphones or at discounted prices depending on the selected package. The effect of this poor subscriber mix in the UAE is noticeable on the operators’ Average Return Per User (ARPU). In this case, Du is the only operator that releases regular ARPU data. The figures show a large fluctuation, which first rose to a peak of AED112 in December 2009. In early 2010, the ARPU fell to AED108, but rose again to AED111 by mid-2010. This move was followed by another drop to AED108 and another rise to AED125 by the end of 2010. In early 2011, the ARPU dropped slightly to AED118 (Kovacs, 2014). This data is difficult to analyze because it does not follow a certain pattern, despite the steady customer base. It is likely that this trend is the same with Etisalat. This fluctuation of ARPU experienced by Du could be explained by the impact of short-term promotional activities that the operator performs to attract new customers. For instance, during the festive season of Eid al-Adha, Du offered reduced tariffs for mobile and fixed-line international calls. The operator further discounted rates for its voice calls and short messages (SMS). Etisalat also ran a similar promotion that allowed its subscribers to enjoy off-peak rates for international calls. In January 2011, Du launched another promotion, which offered free international and national calls as well as SMS and data bundles to its subscribers based on the package chosen.

Third Generation (3G) Services

Third generation (3G) mobile services have been available in the UAE since early 2004 under the Etisalat’s services, but the uptake was very low. However, in 2007, Etisalat had to take action owing to the impending end of its monopoly after Du launched its services. In order to increase its 3G subscribers, the operator took a step and canceled all the access fees for 3G services. Consequently, there was an increase in 3G take up, and the operator claimed to have up to one million 3G subscribers by mid-2007. This move was followed by upgrading from W-CDMA to HSDPA (3.5G) technology. In 2007, Etisalat partnered with Nokia in a move aimed at accelerating the adoption of mobile Internet services on Nokia handsets (USA International Business Publications, 2007). Through these moves, Etisalat managed to launch a 3.5G router in 2008, which could offer up to 7.2Mbps download speeds and support up to 32 real-time connections using a single SIM card. By June 2009, Etisalat completed its nationwide upgrade of the 3G network, which could enable download speeds of 14.4Mbps (Business Monitor International, 2011). Within one month, Du announced its plans to expand its network coverage in high traffic areas. This move involved in-building upgrades, which improved indoor connectivity to shopping centers, airports, hospitals, universities, and hotels. These areas could have GSM, GPRS, EDGE, 3G, and 3.5G connectivity. The review of this literature shows a counter-strategy behavior between the two service providers. This paper will explore the particular strategies that the two rivals have implemented, the results they have achieved, and the reactions of each service provider to the competitor’s strategy.

Data Collection and Analysis

This section explains how the study of the marketing strategies of the two companies has been carried. The section reports a comparative analysis of the strategies adopted by the two service providers.

The data used to compile this analysis was gathered from the promotional information materials from the companies’ websites, magazines, advertisements, newspapers, as well as other literature related to the subject. In addition, 110 subscribers were interviewed randomly and asked about their views about some marketing strategies of the two telecoms.

The Evaluation of Market Strategies

Market segmentation.

Etisalat has divided its market into different segments, viz. casual callers segment, business callers segment, and local callers segment. Two other segments, viz. expatriates late-night international caller segment and midnight international caller segment, have almost similar offers. Since the majority of the UAE population is expatriates, Etisalat has developed its favorite country plans to retain the share in the market. The company encourages calling in late at night by offering off-peak hours so that the network is fully utilized. Its super off-peak hour is a midnight calling plan that encourages the users to make calls late at night. Expatriates from various regions across the world use this tariff extensively. Etisalat covers all segments of the market, and classes from the lower class, the middle class to the upper class, and business class.

Target Market Strategy

Etisalat targets the entire market and markets where users require quality services. It also seeks to cover the different segments with different attractive plans. Their strategy, in this case, is to ensure that the customers make calls cheaply during off-peak hours while enjoying quality services. These off-peak plans help to beat its network load. In addition, the strategy gives international economic calls during off-peak. The operator also alerts its customers in cases of occasional modified off-peak hours. Pricing Strategy The pricing of products is very important in every company as it helps to acquire market share in a very competitive market. Etisalat’s strategy on pricing is to offer a standard price to its customers, but at the same time, ensure good quality services. The company ensures that its network is always capable of handling voice traffic at any given time. The connection fee of Etisalat remains higher than that of its competitor. In addition, Etisalat’s call rates have not changed significantly with time, but it gives several offers to the customers in the form of discounts. For new connections, Etisalat charges considerably high prices to connect the customer and make the product worth full.

Product Mix Pricing Strategies

Etisalat wins customers by its quality services, and it offers a bundle pricing strategy. These packages are made befittingly to suit the varying needs of different customers. The packages have reduced prices to meet the requirements of as many customers as possible. For subscribers who want to call late at night, the provider has a super peak hour in a package called Wasel. The package offers low rates on international calls, but the callers have to incur higher prices for the local calls and SMS services. In a bid to recharge the Wasel prepaid package, Etisalat offers the following denominations 500AED, 200AED, 100AED, 50AED, and 25AED

Price Adjustment Strategies

Etisalat operates a very complex tariff. For several years, there has been no significant reduction in local calls. However, the operator has multiple price strategies for its different plans. The company “designs suitable price plans using allowance and discount as well as promotion and segmented pricing strategies” (Cherrayil, 2014, par. 8). This way, it ensures that the plans suit the customers’ needs. Etisalat runs promotional and allowances pricing, and it offers discounted prices to increase uptake of its services.

Price Change Strategy

Due to the market situation, Etisalat cut its prices to maintain excess capacity. This move was driven by the fact that Etisalat seeks to maintain a fair price and save its brand image, although its prices remain higher as compared to those of the competitor. The price change strategy ensured that the price of the main products remained the same. This goal was achieved by reducing the connection and renewal fees and offering a payback option. With this strategy, the local call and the messaging charges remain the same.

Du Strategies

Du has divided its market into different segments, viz. casual callers segment, frequent callers segment, rare dialers segment, business callers segment, office break callers segment, visitors, and late-night international callers. For each plan, the operator has a suitable plan that meets the needs of the users. The plans are very flexible, and the users can change to their favorite plan at the time of recharging. Quite interesting is the visitors’ plan for tourists and other visitors whose stay is limited to three months. This segment offers a connection validity of three months and has a balance back facility.

The focus market for Du is where users are looking for low-cost calls. As compared to Etisalat, Du offers very attractive and lower-priced packages. These low-cost packages are the major factors that attract customers from Etisalat to Du.

Pricing Strategy

Du’s main objective is to increase its market share by offering very economical services to the appropriate market segment. Consequently, the operator offers very low prices as opposed to its competitor. Etisalat aims at offering quality services, and thus it does not respond to the low prices by dropping its prices, though it occasionally gives offers and discounts to its customers. The low price gives Du a competitive advantage, as customers are always cost-sensitive (Sinclair, 2013).

Product Mix Strategies

Just like its competitor, Du uses a bundle pricing strategy in its packages. This bundle pricing is advantageous to the company as on one side, it is an offer to the customers, and on the other side, there are conditions imposed. For instance, in its international package, subscribers get up to 30% extra credit valid for one month with the condition that all the credit has to be used to make international calls only.

Price Adjustment Strategy

Du has multiple price adjustment strategies. In all its packages, it adopts discount and allowance pricing. There is a bonus on credit, which is available on all packages, and it provides allowances to the users. This bonus credit is earned more as the subscribers continue using the service. Another price adjustment strategy used by Du is per second billing. This plan beats the Etisalat’s per-minute billing as the customers are satisfied that they are paying for only what they are using.

Price Changes Strategies

Du entered the market with the lowest prices and dropped them further to gain more market share. The operator has also revised its monthly package to the Elite package. This move is meant to provide a tariff, which is economical to the subscribers. Du also improved its bonus balance to attract customers to recharge more frequently.

The Analysis of Customer Views

Customers were asked to state which telecom company they trust in. The figure below shows their responses.

Customer trust. Both means customers had the same trust for the two companies.

The number of subscribers for each service provider is represented below

Number of subscribers. Both indicates the subscribers carried lines for both service providers.

Customers were asked to state, which among the two service providers satisfied them. The responses are represented below.

Customer satisfaction. Both indicates customers who were not satisfied with both service Providers

Customers were asked to rate the overall image of the companies. Figure 4 below shows their responses.

Overall image of the company. Both indicates customers who had an equal perception on the two companies

Customers were asked to state which company fully solved their communication problems. Figure 5 below represents their responses.

Solution to problems. Both indicates the customers were satisfied with both services

Customers were asked if they were aware of the new packages offered by their service provider. Figure 6 below shows their response.

The survey carried by interviewing customers indicated that Etisalat still maintains the largest share by 54%, although 34% of the subscribers use both services. Out of the 110 subscribers interviewed, 40 of them trusted prices of Etisalat, while 35 of them trusted prices offered by the two companies. There is a tie on whether the two telecoms solve the customers’ needs. This assertion is confirmed by an almost equal number that is satisfied by the services of the two operators. Du’s subscribers seem to be highly informed about the packages offered by their service providers. This aspect could be attributed to advertising and promotions.

Two companies serve the UAE’s telecommunication industry, viz. the Etisalat and the Du. Etisalat commands the largest market as it enjoys 80% of the market share. Since Du entered the UAE market, Etisalat has been experiencing a declining number of subscribers. This slowdown experienced by Etisalat indicates the high mobile penetration rate in the UAE. It also signifies intense competition caused by Du. This steep competition is having a considerable effect on the subscriber growth for Etisalat. In a bid to attract more subscribers and retain the existing ones, the two companies have been employing counter-strategies. Etisalat has segmented its market into casual callers’ segment, local callers’ segment, business segment, expatriates late-night international caller segment, and the mid-night international caller segment. The operator offers a different price package to meet the needs of its clients in each segment. On its side, Du has segmented its market into the casual segment, frequent users segment, rare users segment, business class segment, office break segment, visitors, and late-night international callers segment. Like its competitor, Du gives a suitable package for each segment. The focus of Etisalat and its strategy on pricing is to offer a standard price to its customers, but at the same time, ensure good quality services. Therefore, the company ensures that its network is always capable of handling voice traffic at any given time. On the other hand, Du’s main objective is to increase its market share by offering very economical services to the appropriate market segment. Consequently, Du’s prices are lower as compared to those of Etisalat. Due to the differing market objectives, Etisalat does not respond by lowering its prices.

Recommendations

Further Research

The Telecommunication Authority (TRA) has revised its regulations, thus making it easier for the operators to change their rates so that they can compete with one another more effectively. Surprisingly, this increasing competition has not seen prices falling, which is quite evident in other mobile markets. Therefore, there is in need to study this unusual market behavior in the UAE telecom market.

Business Monitor International. (2011). United Arab Emirates Telecommunications Report Q3 2011. London, UK: BMI. Cherrayil, N. (2014). Etisalat offers better postpaid mobile value than du: report . Hamid, T. (2013). Competition is key in UAE telecoms sector . Kovacs, R. (2014). Economic and legal analysis of the United Arab Emirates’ telecommunications market. Sinclair, K. (2013). UAE telecom users outraged by du’opoly as bills hiked . USA International Business Publications. (2007). United Arab Emirates Telecommunication Industry Business Opportunities Handbook. Washington, D.C: Intl. Business Publications.

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Bibliography

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IvyPanda . (2020) 'Etisalat and Du Companies Marketing Strategies'. 16 April.

"du" or Etisalat - which one is better? - Dubai Forum

"du" or Etisalat - which one is better?

Planning to buy a visitor package (SIM card and pay as you go air time).

Which one is better regarding retail outlet locations, coverage, rates and customer service?

du - much cheaper as you are charged by the second, the SIM package is cheaper (60 Dhs as opposed to Etisalat 160 Dhs) and their rates for international calls better.

However Du's network coverage is pretty crap (speaking from experience)compared to Etisalat, I agree with Harry about the rest though.

They are a new operator and their coverage has improved hugely recently and is increasing everyday.

I recently switched to them from Etisalat and haven't had a coverage issue.

I had several in the last 2 weeks.

Also if you buy your Etisalat package from a petrol station (eppco) they are AED 150 and you get a AED50 card to spend at any eppco, I know not great but they do sell cigarettes, sweets, boxes of chocs etc etc.

If your not bothered about being contactable all the time and are happy to wait for a signal to call someone then go with Du because they are a bit cheaper.

Du kind of reminded me of when 3 mobile started up in the UK and it was hard to get coverage - but as mentioned above they will get better over time.

Also Du had loads of offers on when you bought top up cards. Like pay AED25 get AED50 credit.

Hi Hannah - where were you getting the coverage problems?

All over really Harry not one particular place, but everytime my phone wouldnt work my Mam's always was working perfectly.

Had problems at Atlantis where I couldnt get a signal at all. Dont know why?? I asked the reception guy as he was wondering why I was stomping around his reception with my mobile above my head and he did mention lots had problems with Du on the Palm???

I only got them becuase they were cheaper than Etisalat but ended up switching back to Etisalat after a few days or carrying both because I needed to make and recieve lots of calls.

As the saying generally goes here, DU don't!! :)

As Harry rightly says, they are improving and my visitors have taken advantage of the good offers they have.

When they first started, they had no signal whatsoever in Madinat. Now it seems they have Palm issues (which is strange because they cover the Marina, etc. - i.e., you cannot get an Etisalat line down there).

I'd say if you don't need to be 100% available 100% of the time (that is, you can afford to have some times of your stay when your 'phone doesn't work), then you will be fine with DU because it will be intermittent.

Alternatively, if there are two of you, take one Etisalat and one DU. OR if you can go halves on one SIM, then just go for one Etisalat!

Interesting about the coverage issues. I’ve always been with Etisalat because having had problems with various providers in the UK I wanted the best coverage.

However, my partner’s company have been experimenting with du for the last couple of months as they were getting such terrible customer service (not coverage) from Etisalat and they’ve not had any problems reported with du.

Given hannah’s problems I’d go with Etisalat because it’s very frustrating to hunt around for a signal.

du also has a new card called WOW which seems like a good deal for international cards.

Dubai Hotels and Places to Stay

Du vs Etisalat: What's the best combination of plans in either Pre or Post-paid? Including flexi minutes and Internet.

Not interested in Business Plans even though I'd like to hear about them. Personal Plans stay priority. Hate contracts because Etisalat is a thug!

Are you crazy? Maybe you want him to search the subreddit for similar threads as well?

I just got Du unlimited social pack - 40 bucks per month, you get Facebook, Whatsapp and the essential apps with unlimited use (cant browse sites or watch youtube videos though).. I think its slower than the normal data packs, but whatever its cheap & you don't have to sign any contract, just month by month... can get it with both prepaid or postpaid lines

Wasel Super 50

My company uses a Etisalat business plan - 199 aed for 800 local minutes, 280 intl minutes 4GB data.

Not a bad deal.

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In UAE which network is better du or Etisalat?
Etisalat is perhaps better. Du is relatively new (only roughly 10–12 yrs old), while Etisalat has been around for decades. Consequently they have better
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Although du does not compete directly on prices with Etisalat, the fact the new plans target the international segment is a savvy one, said
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Etisalat has been around for decades now. du is about 10-12 years old. Although du is catching up gradually, Etisalat still stands to be the
UAE, May 2022, Mobile Network Experience Report
Etisalat wins the Excellent Consistent Quality award with a 10.9 percentage points margin over second-placed du. In Core Consistent Quality, Etisalat once again
Etisalat and Du Companies Marketing Strategies Research Paper
On the other hand, Du's main objective is to increase its market share by offering very economical services to the appropriate market segment.
"du" or Etisalat
du - much cheaper as you are charged by the second, the SIM package is cheaper (60 Dhs as opposed to Etisalat 160 Dhs) and their rates for international
Du vs Etisalat Mobile Internet #duinternet #estisalatinternet
Pricing for Du plans is much less than that of Etisalat. ... vs etisalat postpaid plan, du vs etisalat business plan, du or etisalat number,.
Etisalat or DU for internet home connection? : r/UAE
This Depends on your Locality, Etisalat is dominant in Deira, Bur Dubai and Karama. Newer Residential areas Have Du as Provider, Du is Cheaper
Du vs Etisalat: What's the best combination of plans in either Pre or
My company uses a Etisalat business plan - 199 aed for 800 local minutes, 280 intl minutes 4GB data.
Du business plan offers
499aed only contact +971557995503 .fixed Etisalat number porting also available #dubai #ajman
Du business plan offers
+971557995503 .fixed Etisalat number porting also ... Emirates I'd of owner or partner