Abstract
Publication Overview
This annual report offers a wealth of information on the mobile markets in the
Middle East. Subjects covered include:
- Mobile statistics and trends;
- Mobile operators;
- Spectrum and Licence Auctions, Developments, National Policies;
- Infrastructure, GSM, CDMA, 3G, HSDPA;
- Trends in the prepaid sector;
- Mobile satellite services;
- Mobile data markets;
- Mobile TV.
Executive Summary
This Middle East market report covers the mobile telephony and mobile data
markets in each of the following countries: Bahrain, Egypt, Iran, Iraq,
Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey, UAE
and Yemen.
Across most countries of the Middle East, including even some of the most
highly penetrated, growth rates are surprisingly high. This is often due to an
increase in competition - a second or third operator has entered the market
or a new investor has bought a share of an existing operator - causing a
subsequent drop in tariffs or improvement in services. Highest growth rates
are in the relatively undeveloped markets of Egypt, Iran and Yemen.
Multi-SIM ownership is common as subscribers aim to maximise special offers
and different deals, leading to sky-high penetration in some Gulf countries
and particularly high rates in Jordan for its per capita GDP. The large number
of expatriates in many countries is also a factor in encouraging competition,
and thus growth and penetration rates; with a fluid population, new operators
stand a better chance of gaining market share.
In recent years the region has become home to some large international
players. Etisalat of the UAE and Zain of Kuwait have been particularly
aggressive buyers of both new licences and existing operators in Africa, the
Middle East and Asia. Qtel of Qatar, STC of Saudi Arabia and Batelco of
Bahrain have also taken this route for growth.
In the more developed Gulf countries and Israel, operators are pinning their
growth hopes on persuading their mobile subscribers to take up data and
broadband services. Customers want the latest in high-end handsets and have
the income to pay for them. 3G services in these countries are well
established, together with HSPA. Outside the Gulf countries, Israel and
Turkey, no operator has launched 3G or HSPA although Jordan issued a licence
to Orange in August 2009.
HSPA services are now offered throughout the Gulf region and in Israel. Speeds
are increasing, with HSDPA USB modem broadband packages commonly up to
7.2Mb/s. There are several regional factors that favour mobile broadband. The
populations are very young and there are very large numbers of expatriates.
Fixed-line penetration levels are generally low. In addition there are several
dynamic regional mobile operators whereas fixed-line operators are generally
state-owned incumbents accustomed to little competition.
Key highlights:
Iran
- The Iranian market grew very strongly during 2008 due to the continued
affects of the competition from second operator MTN Irancell and the
introduction of prepaid services. A question hangs over the market however
after the unsuccessful tender for a third licence in late 2008 / early 2009.
The licence was first awarded to a consortium led by Etisalat of the UAE and
then withdrawn, echoing the problems of the second mobile licence tender. It
was then awarded to a consortium led by Zain of Kuwait but then again
withdrawn. By late 2009 the licence had still to be awarded. These regulatory
problems must inevitably make this otherwise very promising market less
attractive.
Israel
- The Israeli market has been stable for some time but the Israeli
government is moving to create a wholesale market in all sectors of
communications, leading to jostling for position between mobile, fixed-line
and Internet players. Some merger and takeover activity is anticipated. 3G
subscriber levels made up at least a third of total subscribers in mid-2009
and revenue from mobile data has grown steadily. The launch of Pelephone' s new
network, moving away from its CDMA2000 / EV-DO network to a UMTS network, has
had a significant impact on the market.
Qatar
- Competition finally came to the Qatari mobile market in July 2009 with the
launch of services by Vodafone. Vodafone has had mixed success in the Middle
East to date, with poor results in Turkey but faring much better in Egypt.
Saudi Arabia
- After the launch of second operator Mobily, mobile subscribers grew
rapidly, leading to penetration levels similar to those of the smaller GCC
states, at well over 100%, despite Saudi Arabia' s much higher total
population. With third operator Zain' s launch in August 2008 the market became
even more competitive. It is the only market where the region' s three largest
operators - Etisalat of the UAE, Zain of Kuwait and STC on its home turf -
go head to head.
UAE
- Mobile penetration levels in the UAE are quite spectacular, passing the
200% mark. Growth has been astonishing since the launch of second operator du.
3G subscribers make up over 25% of the total but the percentage has not grown
over the past year - the growth has been at the lower end of the market.
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