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Du risks fines in advance of March launch

19 January 2007 By MEED Editorial

Local telecommunications operator du is set to start operations by the end of March, following the recent signing of a long-awaited interconnectivity agreement with Emirates Telecommunications Corporation (Etisalat).

The interconnection agreement, signed on 26 December at the Telecommunications Regulatory Authority in Abu Dhabi, enables du to use Etisalat's existing GSM infrastructure for its operations while it rolls out its own network. The agreement also ensures that customers will be able to make mobile calls between networks.

The new operator has already booked more than 400,000 subscribers, almost double its initial target.

However, the delay in signing the interconnectivity agreement might prove costly.

Under the terms of its licence, du has until 12 February to start operations, after which it runs the risk of being fined by the regulator.

The company was awarded the UAE's second mobile licence in December 2005 (MEED 16:12:05).

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