Emirates Integrated Telecommunications Company (EITC) has confirmed that the UAE Ministry of Finance has announced the Federal Royalty scheme, which will be applied annually on EITC for the period 2017 to 2021.

EITC has two telecommunications brands under its umbrella: du, which was launched in 2007 and serves 9 million active subscribers and over 100,000 businesses throughout the UAE; and the recently launched Virgin Mobile.

The royalty rates will remain unchanged from their current levels for the next five years and will be applied to EITC’s regulated revenue and profits. The rolyalty rate on revenue for the five-year period will be 15 per cent and royalty on profit will be 30 per cent.

The fee set by the Federal Government applies only to licensed services from the Telecommunications Regulatory Authority (TRA). Total revenues from bundled offerings, incorporating both licensed and non-licensed services, shall be subject to the same royalty rates, the company said.

EITC was founded in 2006 as the UAE’s second licensed telecommunications provider. It is 39.5 percent owned by Emirates Investment Authority, 19.75 percent by Mubadala Development Company, 19.5 percent by Emirates Communications and Technology and the remaining by public shareholders. It is listed on the Dubai Financial Market (DFM). - TradeArabia News Service