UAE regulator cuts charges to end phone contracts

Telecommunications Regulatory Authority announces new framework for early termination charges of service contracts.
UAE, TRA, Law, Rules, United Arab Emirates, Smartphones, Phone plan, Charges, Business, Money

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The new amendment comes in response to complaints from customers who were previously forced to commit to using the service until the end of the contract due to the level of termination charges.

The UAE's telecommunications regulator last Wednesday announced a new regulatory framework for early termination charges of service contracts.

The Telecommunications Regulatory Authority (TRA) said the new amendment stipulates charging one month fee only for early termination, replacing the previous provision, which stipulated charging one month rent multiplied by the number of the contract’s remaining months.

It said the new amendment comes in response to complaints from customers who were previously forced to commit to using the service until the end of the contract due to the level of termination charges.

This amendment has been introduced already in the new individuals’ mobile contracts.

TRA said it is currently working on introducing these amendments to the other services’ contracts in the coming period.

It added that the move is part of its mission to apply the best international standards on services provided by licensees in the UAE and to provide more freedom and flexibility to users in choosing the services they desire.

This decision also comes in the context of the consolidation of all termination fees of service contracts that impose termination charges, making it easier for customers to calculate the costs of the services they wish to use.

Hamad Obaid Al Mansoori, TRA director general, said: “We strive to hear the comments of the stakeholders on the operators’ services, and we don’t hesitate to review any policies or regulations for the interests of the parties and the public, to increase the happiness of the telecom sector customers in the country.

"Revision of early termination fees of telecom contracts is part of the sustainability approach whereby TRA is working to enhance the quality of telecom services and to ensure that these services reach the various segments of society on satisfactory terms.”

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