Why have only two telecom operators when you can have three!

The U.A.E based telecom operator Emirates Integrated Telecom Company (EITC) which is the parent company of du has recently launched a new telecom brand named Virgin Mobile. The company will use EITC’s infrastructure and IT just like du.

Before the launch of Virgin Mobile, the only two telecom companies in the market were Etisalat and du. The introduction of the brand du to the  market was because EITC felt that Etisalat were dominating the U.A.E telecom space.

The CEO of EITC, Osman Sultan has stated that Virgin Mobile will operate only as a brand alongside du and will operate as a MVNO (Mobile Virtual Network Operator) which means that it does not have ownership of the wireless network infrastructure that the brand functions on and provides services to its customers.

With Virgin mobile clearly targeting the youth of the country, which by the way is what the brand is well known for, it could have outstanding success in the local telecom market. The launch of Virgin Mobile can also help EITC address the issue of declining profits and growing customer expectations.

However, EITC must make sure that the brand du does not become obsolete. At present, du frequently sponsors sporting events and music festivals to entertain the country’s youth population. An option for EITC would be to let Virgin Mobile handle the youth segment of the country and to allow du to attract customers who are capable of spending more. Etisalat is also expected to improve its services to keep hold of the youth segment.