New paradigm in telecoms is required

Freeing up internet calling is only the tip of the iceberg when it comes to mobile data

With more and more people relying on their smartphones, it is only natural that people around the world are relaying on data, not existing telephone infrastructure, to communicate with friends and loved ones. Patrick T. Fallon / BloombergShow less

The uproar concerning Etisalat and du’s blocking of Snapchat’s new video calling feature is understandable. With more and more people relying on their smartphones, it is only natural that people around the world are relying on data, not existing telephone infrastructure, to communicate with friends and loved ones. Internet giants such as Skype owner Microsoft, Google and now Snapchat have built successful business models on their video calling platforms. It makes sense that the consistent blocking of these features by local telecom companies has angered many people.

The Federal National Council’s youngest member, Saaed Al Remeithi, went as far as to say that the internet restrictions on the calls was an “embarrassment”. But this issue extends far beyond Snapchat and speaks to the outdated business models of telecom companies and their apparent unwillingness to adapt to market conditions.

Given the speed of technological innovation and its critical importance to the growth of the economy, telecom companies can’t afford to simply block innovations. Outdated models that centre on traditional phone calls as the preferred source of revenue must be reconsidered in favour of an embrace of the data revolution.

It is understandable that telecoms are trying to protect their market share, but this battle is one they can’t win. Rather, they should embrace the change and lead calls for better data integration throughout the country. The smartphone revolution is an opportunity for growth, not protectionism.

We need a new information highway for the new information economy. We can achieve this by investing in data infrastructure such as public Wi-Fi in our cities and the innovation of local video calling applications. In other markets, such as the United States, telecom companies have found ways to profit from their customers’ growing need for data. They price data by speed and offer their own applications that can compete with the likes of Facebook and Google Voice. Let’s do the same thing.

Technological innovation is a critical facet of our economy. We attract talented developers from across the region and beyond. To stay nimble in the rapidly changing mobile market, we have to abolish outdated models based on traditional voice calls.