UAE mobile TV licence deadline extended to November 16

The UAE’s Telecommunications Regulatory Authority today announced the extension of the deadline for the submissions of proposals from parties interested in acquiring a single mobile TV licence on offer in the country. The new deadline has been established at November 16, having originally been set at October 19.

Both UAE providers have been piloting mobile TV services, however, only one licence will be up for grabs

The mobile TV licence on offer in the UAE permits the successful bidder to roll out a mobile TV network and to begin offering transmission services. It will be allowed to sell the mobile TV transmissions to retailers in a non-discriminatory manner, acting as a provider of mobile TV service on a wholesale basis to retailers.

The cost of the 10-year licence amounts to AED17 million (US$4.7 million), together with an ongoing annual licence fee amounting to the higher of: one per cent of the revenues earned in a year; or AED100,000. The licensee will also be required to pay an annual royalty, equivalent of 30 per cent of its net profit before the royalty.

It is significant that the UAE TRA has opted to only offer a single mobile TV licence given that both incumbent operators in the country have expressed an interest in the service and have been piloting services.

According to the licensing conditions, citizens of GCC countries may hold up to 100 per cent of the shares in the mobile TV licensee. Investors from outside the GCC are however not allowed to hold shares in the licensee.