Etisalat cuts iPhone prices

Etisalat has cut the price of the Apple iPhone and the monthly plans linked to the device, a month after saying it had requested approval for a price reduction from the Telecommunications Regulatory Authority (TRA).

The new prices are 20-25 per cent lower than the original prices, which accompanied the UAE launch of the iPhone by Etisalat in February.
It is unclear whether customers who signed 12-month contracts on the original prices will be able to switch to the new plans; typically such customers are locked into their contract price for the length of the agreement.

In early April, Etisalat’s chief executive, Mohammed al Qamzi, told reporters that the company hoped to lower the price of the iPhone and its monthly plans, but was awaiting approval from the TRA. The regulator replied, saying the company had approval to sell the device at the price charged to the company by its manufacturer, Apple.

The two telecommunications companies must submit all pricing schemes for approval by the regulator, which has been keen to avoid a price war emerging between the deep-pocketed Etisalat and its newer competitor, du.

Etisalat has recently called for more intense price competition to be allowed by the TRA, as du becomes increasingly popular and profitable.

Late last week, Etisalat submitted a report of its internal cost structure to the TRA, which will allow the regulator to determine its “cost price” when considering new pricing plans. The TRA said it was “premature” to declare whether the report met its expectations.