The deal was designed to allow the rivalling operators access to their respective fixed networks, but an agreement on the extent of Bitsream access could not be reached, the UAE Telecommunications Regulatory Authority (TRA) said.
“Bitstream access could have a significant impact on competition,” the TRA said in a report on its website.
Both majority government-owned, network sharing discussions between du and Etisalat began in 2009 with an expected conclusion at the end of 2011.
"The two licensees are still negotiating," the TRA continued.
The UAE regulator said that it will: “impose a requirement to offer Bitstream access products for both residential and business markets”.
Together, du and Etisalat offer fixed-line services across the UAE, serving different districts.