The technology hubs of the world tend to not only be where the next life-changing idea is first envisaged but also where it is trialled. One example of a disruptive technology is VoIP, which allows internet users to speak to each other over internet-connected devices for no extra cost, potentially rendering conventional long-distance telephone calls – and the charges they entail – irrelevant. This idea is at the heart of Skype, Google Talk, FaceTime, Viber, WeChat and a range of similar programs.
In the world’s great innovation centres – epitomised by Silicon Valley in California but also including places like Pune and Bangalore in India, Eindhoven in the Netherlands and Tallinn in Estonia – the idea of using a traditional telephone to make a call seems as quaintly old fashioned as having a brick-sized mobile phone with an extendable antenna.
It is well known that the UAE aspires to join the ranks of emerging tech hubs, and we have many natural advantages in our favour: we are the country of aspiration for the brightest young minds of the Arab world; internet connectivity and levels of smartphone ownership are among the highest in the world; and levels of bureaucracy for business owners are relatively low, including of course the absence of income tax. This sector is seen as one of the most promising prospects for the non-oil economy.
But as we reported yesterday, striking a discordant note to this head start is the restriction on VoIP here. Only the two telecommunications providers, Etisalat and du, are VoIP licence holders and they have a clear interest in protecting their long-distance calling market. FaceTime does not work here at all, while Skype is restricted to computer-to-computer conversations and not, as in most of the rest of the world, computer-to-phone.
Local tech companies say the restriction stifles business, especially when they tend to be global in scope and the VoIP calls are in any event are being made via the internet service provided by Etisalat and du. The telecommunications regulator, the TRA, has endorsed the samller companies’ complaints. We have argued here before about the benefits of greater competition, usually advocating at least one more telecomms operator, but the argument is equally valid for the existing operators loosening their VoIP restrictions.
Everyone wins if the UAE is a place where ideas can flourish. If the next innovation emerges here, the benefits will be far greater than the revenues from traditional phone calls using old technology.
