Information Technology in the UAE

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Telecommunications Infrastructure
Overview:
The United Arab Emirates has a modern telecommunications infrastructure, especially compared to other countries in the region.   It has frequently been referred to as the "most wired" state in the Middle East.  The Emirian citizens have relatively unhindered access to all modes of communication that western nations do.  The primary shortfalls in the telecommunications infrastructure lie not with the quality or modernity of the system but with the shortfalls of ETISALAT, the sole telecommunications provider.  ETISALAT is a 60 percent government owned organization that is responsible for providing access to the citizens.   Currently, there is little to no competition to ETISALAT, which hinders the need for future development, as there are no organizations with which it must compete. 
Facts & Figures:
 
Category
Statistics
Comments
Telex Working Lines  4,028   
Exchange Lines per 1,000 inhabitants (1996)  40 This number has probably grown significantly since 1996
Radio Paging Service (1997)  258,000  
GSM Networks 260,000 lines   
Fixed Telephones (1998) 915,223  915,223   
Internet Service Providers 1 2 additional ISPs are being considered for Dubai Internet City
Satellite Earth Stations 4 3 owned by Intelsat (1 Atlantic, 2 Indian Ocean); 1 owned by Arabsat
GSM Subscribers 780,000  
Submarine Cables 19,000 km 19,000 km Connects FOG to FLAG
Feeder Links
Yes
 Earth to Space: 6425.0 – 6725.0MHz; Space to Earth: 3400.0 – 3625.0 MHz
Frequencies   Mobile Links: Earth-to-space: 1626.5-1660.5 MHz; Space-to-Earth: 1525.0 – 1559.0
Trunked Mobile Limited  
      * most data provided by ECSSR
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United Arab Emirates

 
 
GSM (Global System Mobile):
It was not until September1994 when digital GSM 900 became fully operational in the UAE.  Subsequently, GSM has become the primary platform of communications between the Emirians.  It is interesting to note that the UAE market has been flooded with many of the older European GSM models.

Statistics suggest that the total subscriber base for GSM reached 1.17 million people in 2000.  Furthermore, with roaming agreements with over 77 countries, it has become a popular mode of communication for frequent travellers both to and from the UAE (16).  The annual investment volume for GSM is $27,000,000. 

Players: AT&T, Alcatel, Motorola, and Siemens are the primary foreign players in this market. 

Features: Call Forwarding, Call Waiting, Call Barring, Caller ID, Voice Mail, Data Transfer (9600 bps), Internet access, and Short Message Service (Risala). 

WASEL Service: This phone service is set up in such a way that incoming calls are free and outgoing calls must be either paid for in advance or a using a prepaid calling card.  Initial connection fees are $92.64 and annual fees are $54.48.  Per minute charges are $.17.

Speak Easy Service: Primarily for visitors to the UAE who will have an extended stay.  The system allows both domestic and international calls.  It is valid for 60 days and available at $81.72.  Call charges are $.22 per minute. 
 
Wireless Local Loop: 
ETISALAT intends to use this technology to expand its telecommunications infrastructure to remote areas of the country.  In February 1999, a contract was awarded to ArrayComm to install an IntelliWave wireless local loop system based on Japanese developed Personal Handyphone System (PHS) technology. 
Fiber-Optic Cable:
Currently, there is a fiber-optic cable link between Europe and Southeast Asia.  This is a submarine link for the Fibre-Optic Gulf (FOG) and it connects to the Fibre-Optic Link Around the Globe (FLAG).    Presently, 19,000 kilometers of cable which is capable of providing access to approximately 120,000 voice channels simultaneously is in operation.
Satellite: 
Full proliferation of satellite technology in the UAE became evident with the launch of the Al-Thuraya satellite system, which is primarily owned by ETISALAT in the UAE.   It is a two geosynchronous mobile satellite system costing over $900 million that has the capability to provide data, voice, global positioning, and mobile communications to over 99 countries.  The Al-Thuraya satellite program is perhaps the most significant technology-related undertaking in the UAE.  It is symbolic of the degree of emphasis that the UAE is willing to put on the advancement of modern technology.   Thuraya is intended to begin full commercial operation in January 2001.  Mobile and fixed voice, messaging, data and fax transmission at 2.4Kbit/s, 4.8Kbit/s, and 9.6Kbit/s are only a few of the benefits of this system.  It will further offer dual modality because it supports both satellite and GSM telecommunications. Ownership of the system is as follows:  26 percent owned by ETISALAT; 20 percent by Abu Dhabi Investment Company; 10 percent by Bahrain Telecommunications Company; and 44 percent by other Arab governments.
EMARSAT:
Hughes has the contract to supply EMARSAT satellite spare parts, a launcher, and a ground station to the UAE.  This project will theoretically improve television broadcast and will enhance performance of the fixed telephone network. 
Subsectors:
 
Subsector
Market Size
Satellite Telecomm Equipment $970,000,000
Fiber Optic Transmission Equipment $180,000,000
Telephone Switching Systems $120,000,000
Local Area Networks $75,000,000
ISDN Equipment $70,000,000
Teleconferencing Equipment $28,000,000
                       *Canadian Business Analysis
Telephone Service:
The UAE has a very modern telephone system.  Public call offices, pay phones, smart cards, and credit card operated pay phones are common throughout the country.  Available international circuits stood at 20,207 and local service circuits reached 209,675, as of September 2000 (18).
Internet Service:
Currently, only one Internet Service Provider (ISP) exists in the UAE.  Emirates Internet was established in June 1995 and is a department of ETISALAT.  Two additional ISPs have applied to operate in Dubai Internet City; however, their applications have not been approved.  For additional information on Internet service in the UAE see Internet Diffusion.
Paging:
Paging service in the UAE did not come on-line until 1988.  By 1996, it was estimated that the UAE ranked seventh worldwide in pager usage, with 10 percent of the population using the service (19).  A new service called group paging which is simultaneous sending of messages to groups of people was released recently and seems to be growing in popularity.  Theoretically, the pager market would have continued to thrive; however, it has taken a backseat to cellular technology.
ATM Service:
Asynchronous Transfer Mode.   This is a broadband communications technology that is intended to increase access time.  Educational facilities and businesses are the primary customers for this service. 
Impacts of National Information Technology Environments on Business
Kogod School of Business
The American University