Industry Trend Analysis - Adapt Or Die: du's Organisational Overhaul - DEC 2017

BMI View : Faced with market saturation and a strong multi-disciplined local rival, du ' s reorganisation will help it monetise its ' d igital and innovation strateg y. du needs to create new revenue opportunities as digital transformation, for both consumers and businesses, opens up new high-value service markets .

Emirates Integrated Telecommunications Company (EITC), the parent of Dubai-based du, has overhauled its internal organisational structure and created three new divisions geared towards helping it become a fully integrated digital solutions provider. The Digital Lifestyle and Innovation Division will focus on the development and delivery of innovative products and services, including video and smart home services; the ICT Solutions Division will focus on providing managed ICT services to governments and enterprises; and, the Infrastructure Division will encompass the company's network, infrastructure and datacentre operations.

We believe du's transformation plan reflects the fast-changing trends in the UAE telecoms industry. Although fiscal consolidation will continue in 2017, and a 5% value-added tax (VAT) is to be introduced in 2018, our core scenario sees the UAE economy continuing to be supportive of IT market expansion and we expect public sector IT spending will be prioritised. In October 2017, the government launched the 'Strategy for Artificial Intelligence', which aims to accelerate government's performance and efficiency and create an innovative and highly-productive environment by means of investing in AI and its applications across multiple domains.

Moderate Growth In Mobile Broadband
UAE Mobile Forecasts
f = BMI forecast. Source: BMI, Telecoms Regulatory Authority, operators

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