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Internet phone lines 38 times more expensive in UAE

Lack of competition and passive regulation to blame for high virtual private network charges, says report.

March 17, 2010 9:32 by

Secure internet phone lines are 38 times more expensive in the UAE compared with Europe and North America, according to a recent report.

Pricing strategies, a lack of competition, and passive regulation are the primary reasons behind the price difference, according to a report by TeleGeography cited by The National.

A typical internet-based virtual private network (VPN) connection in New York costs an average of $377 a month, but a connection from Dubai costs more than $14,000.

Internet services are generally more expensive in the UAE. A recent survey by Kipp found that consumer broadband services are up to fourteen times more expensive in the UAE compared with other markets.

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