How to start and run a profitable business in Telecom Industry in the UAE

September 13, 2023

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The telecommunication industry in the UAE has become an ever-changing and evolving sector of the country. That is predominantly characterized by the business and investment opportunities it presents to the foreign investors and business owners who are seeking an opportunity for business setup in Dubai. The industry is continuously being disrupted and disturbed by the innovations occurring in the technologies used, giving the entrepreneurs a run for their money. The players have to keep on their toes and adapt to survive to demonstrate their readiness by swiftly changing their business models to grab the opportunities coming their way, while efficiently capitalizing on their investments.

Although the United Arab Emirates is one of the most superior and busy markets of the Middle East, it has the least possible number of telecom companies having only two telecom operators with little or no foreign investment. Many other countries in the neighborhood have authorized operators from the region to purchase second and third mobile licenses and, in some circumstances, fixed-line broadband and internet procurement licenses.

Past and Present Situation of the Telecom Industry in the UAE

The UAE was officially united in the year 1971, and the first-ever telecom to begin its operations in the country was Emirtel, which is now known as Etisalat. It was launched five years after the unification of the UAE in 1976. The telecom company has, over the years, made a mark in the industry as the purveyor of providing top-notch services and is recognized as a frontrunner in giving the latest technology and adopting the innovations occurring in the realm of telecom to its consumers. Thus, leading from the front and driving the digital future of the country. On top of that, it was also the first company in the MENA region that developed and provided a mobile network and the related services to its customers.

The other UAE-based telecom operator, du, came a little late to the party as it was duly launched in the year 2007. At the time of its launch, it was working under its parent organization, Emirates Integrated Telecommunication Company (EITC). These operators very rapidly established themselves in the UAE market and converted the telecom industry in the UAE into a duopoly market. They dominated the marketplace by providing exceptional customer service capabilities to their customers and impressed them with their ability to overcome any obstacles and hurdles by shaping their policies according to society’s needs.

Telecom Business in the UAE

The Information and Communication sector is governed strictly under the laws of the UAE; the laws that regulate this sector are the Electronic Transaction and Commerce Law. The central regulatory body that is responsible for maintaining law and order in the telecommunication sector of the UAE is the Telecommunication Regulatory Authority (TRA). Its headquarters are located in Dubai. The various business licenses that one can acquire if they want to set up a telecommunication business in the UAE are as follows –

  • Broadcasting TV License
  • Broadcasting Radio License
  • Publishing License

To start a telecom business in Dubai, entrepreneurs are required to obtain a valid license from TRA. You can determine the type of permit that best fits your business activities by consulting with a business setup consultant who has decades of experience under their belt and, therefore, can help you in deciding what license is the best fit for you.

Apart from that, the whole lot of telecom companies providing ICT assistance and services must get a radio spectrum license from the TRA (Telecommunication Regulatory Authority). The radio spectrum license will allow the telecom operator to utilize particular radio frequencies and other wireless facilities, according to specific guidelines. The businesses in the UAE seeking to work in the telecommunication sector can also apply for a provisional license with a ninety days validity period for trial or research purposes. Or, they can get the regular radio spectrum license, which has a one-year validity period.

Bear in mind that all the licensing prospects are subject to a non-refundable fee.

Read moreSet Up Your Business in Dubai In Just 15 Minutes

The corporations that are petitioning for radio spectrum license in the UAE can provide the following list of services.

  • The public land mobile radio services
  • Paging services
  • Point-to-point or fixed services
  • Wireless and broadband internet services
  • Wireless local area networks
  • Aeronautical and maritime radio services
  • Satellite services

If you wish to set up a telecom business in any of the Emirates of the UAE, then you should consider Dubai for your business setup, preferably in Dubai Internet City. The foreign investors will profit from copious advantages upon the registration of the company in Dubai mainland or any of its free zones.

What’s Next?

The deployment of 5G technology signifies a change in the world. This technology has transformed mobile technology and how we connect with people. This next-generation technology allows ultra-low latency, high system capacity, high levels of network reliability, and mobile broadband speeds, which increases connectivity.

We at KWS Middle East are here to help you start and run a profitable business in the UAE. Our services include company formation, accounting and bookkeeping, business licenses, VAT, and tax consulting. Our business setup consultants are specialists in this field and have a ton of experience that enables them to make the process of business setup hassle-free.

In case of any queries, do not hesitate to give us a call.

Contact us today and book our commitment-free consultation call today with our experts!

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