DU not prepared to share the benefits of VoIP

DU blocking Skype looks a bit out of place because: 1, DU is a progressive new provider/competitor of Etisalat, and 2, DU itself benefits from the use of IP transportation of voice minutes. Not only does DU secure low termination rates from VoIP providers globally, it also facilitates exchange of VoIP traffic between some of the Middle East carriers – possibly earning a cut in the middle.

DU chooses not to pass on the benefits of lower ILD costs to end users because it has regulatory protection. The regulator in the country is interested in VoIP within the country and not the cross border VoIP. Apparently the regulatory features like emergency services and legal intercept are yet to be tested resulting is substantial delay in VoIP roll out.
UAE is one of those very few countries – and probably the only developed country – that lets telcos block VoIP. DU however should be more worried about mobile callback than VoIP if it is to arrest toll bypass. Mobile callback is a bigger threat to operators now.