The cost of international calls from the UAE are too expensive consumers have told the Telecommunications Regulatory Authority (TRA).
The cost of international calls from the UAE are too expensive consumers have told the Telecommunications Regulatory Authority (TRA).
The cost of international calls from the UAE are too expensive consumers have told the Telecommunications Regulatory Authority (TRA).
The cost of international calls from the UAE are too expensive consumers have told the Telecommunications Regulatory Authority (TRA).

Call charges to abroad 'too much' consumers tell TRA


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Consumers are unhappy with the price of international phone calls in the UAE and this needs to be addressed, said a top official from the country's telecoms regulator today.

"This is the area that has to be worked on. Consumers are telling us these services are too expensive," said Fintan Healy, executive director of regulatory affairs at the Telecommunications Regulatory Authority (TRA).

In response to the TRA's 2010 household survey 48 per cent of individuals said they were unhappy with the price of calls from their mobile phone, while 42 per cent expressed dissatisfaction with the price of calls from their fixed land line,

Du charges customers by the second and Etisalat by the minute, though prices for both providers differ depending on whether the call is made from a fixed line or mobile.

The Household 2010 survey also showed that 17 per cent of fixed line users and 26 per cent of mobile phone users sometimes ask people from other countries to call them rather than making the call themselves to save money.

Mr Healy added that only 13 per cent of fixed line users use the Carrier Selection Service, which allows users to place international and long distance national calls through a different operator to the one they subscribe to.

"This is quite low," he said.

Etisalat user Ashrif Ali, a landlord in Abu Dhabi, regularly buys a 25 dirham international calling card that entitles him to a phone call of around 7 or 8 minutes to India.

He said the price of the calling home is too expensive.

"How can low salary people speak to their sister, mum, whatever. You can just say hi, hello, and that's it, 25 dirhams gone," Mr Ali said.

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.