TRA Sets The Charges Of Service Contract Early Termination By One Month

The Telecommunications Regulatory Authority (TRA) has announced a new regulatory framework for early termination charges of UAE licensees’ service contracts.

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. This amendment has been introduced already in the new individuals’ mobile contracts. TRA is currently working on introducing these amendments to the other services’ contracts in the coming period.  

These amendments confirm TRA's keenness 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.

On these amendments, H.E. Hamad Obaid Al Mansoori, TRA Director General, said: “At TRA, 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, according to the directives of our wise leadership. 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.”

Moreover, Eng. Mohammed Al Ramsi, Regulatory Affairs Director, Said: “The new regulatory framework of service termination fees gives the users more flexibility in choosing the services that suit them.” He added: “The new amendment comes in response to the complaints of some customers, since the previous provisions forced the customer to commit to using the service until the end of the contract, despite their unwillingness to do so sometimes. Now, the user can terminate the service contract and choose another service, for a simple charge equals one month fee, which is considered operational fees. In TRA, we ensure that we will continue our mission of monitoring the market to ensure the implementation of the new provisions.”

These amendments are in line with the TRA’s commitment to the vision and directives of the wise leadership in making happiness a lifestyle in the UAE and the ultimate goal of the government work. It also reflects TRA’s commitment to the Customer Happiness Charter, which includes the provision of fast, easy and smart services, to achieve customer happiness and contribute to the prosperous future of the UAE.