Emirates Integrated Telecommunications Company (EITC) will launch a mobile services offering under the Virgin Mobile brand in the UAE, said Osman Sultan, EITC Chief Executive.
du had begun restructuring some of its business lines during April/May of last year, with jobs being cut to streamline operations. Du’s third-quarter earnings fell by 6.7% because of slowing growth of its traditional connectivity services business and increasing royalty payments to the federal government. EITC has signed a multi-year licensing deal for the exclusive use of the Virgin Mobile brand, with a view to offering services and tariffs geared towards younger consumers.
Virgin Mobile branded services will be introduced within weeks, Mr Sultan said. "The key objective of launching Virgin Mobile is to introduce a new customer experience for a niche consumer market. Launching another brand alongside du will cater to the needs of a specialised segment. Virgin Mobile is a well-known brand appealing to young people and that’s why we partnered with them".
Virgin Mobile will offer branded services distinct from those of du, although services from both brands will be delivered over the same network infrastructure. The brand in the UAE will be headed by Karim Benkirane, the former chief executive of Virgin Mobile in Saudi Arabia, and managed by a small team working within EITC.