du, a telecom company headquartered in Dubai, is experiencing significant growth in its 5G services. The company has been actively promoting 5G to businesses and households, offering affordable router packages and subscription rates. This strategy has paid off, with du’s financial results for the 9M-2023 period showing substantial gains.
According to du’s CEO, Fahad Al Hassawi, the majority of new subscriptions are for 5G or customers switching to it. While it was expected that corporate clients would adopt 5G, the company has been pleasantly surprised by the high take-up rates among small office, home office (SoHo), and small and medium-sized enterprise (SME) subscribers.
Unlike other regions, the transition to 5G in the UAE has been rapid. Industry sources report that subscription rates in the UAE are well ahead of the global and wider GCC rates. The availability of 5G-enabled smartphones at different price points has been a driving factor in this switch. Users have found the tariffs offered by UAE telcos to be favorable, further incentivizing them to switch to 5G.
Industry experts suggest that the increasing use of social media and video streaming on smartphones makes it impractical for subscribers to rely on previous generation networks. Users are realizing the qualitative difference offered by 5G and are keen to sign up for it.
As of September, du had amassed 8.1 million mobile subscribers, with a steady growth in post-paid net additions. The operator added 32,000 new post-paid subscribers in the 9M-2023 period, bringing the total to 1.6 million. The pre-paid subscriber base stood at 6.5 million, driven by attractive and unique offerings.
Al Hassawi believes that this growth trajectory will continue as the UAE’s population is still in fast-growth mode. Additionally, the demand for 5G remains high, providing further opportunities for the telecom market.
To support its 5G expansion, du has invested Dh527 million in capital expenditure, primarily for deployment and indoor coverage enhancement. Al Hassawi stated that the majority of the spending on 5G is complete but emphasized the importance of maintaining current levels of investment. He does not foresee any major cuts in spending, as there are still tasks to be accomplished to enhance the 5G infrastructure.
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