UAE telco royalty payments frozen at 2016 level for five years

The government of the United Arab Emirates (UAE) is maintaining the royalty rate payable by local telcos Etisalat and Du at the same level as in 2016, with the extension to run for five years to the end of 2021. The operators pay 15% of their revenues and 30% of net income to the government each year. Etisalat, which also has operations in 17 countries outside the UAE, will only pay royalties based on its domestic income. Prior to 2016 newer entrant Du paid a lower fee than its rival, but their rates were synchronised last year. Etisalat and Du compete head-to-head across the entire UAE fixed and mobile sectors.