Arab ICT Use Report 2009
Transcript of Arab ICT Use Report 2009
-
8/10/2019 Arab ICT Use Report 2009
1/88
Country ICT Profile, Service Providers, Key Telecom Players,
Penetration & Growth Trends
Copyright 2009-2010 Madar Research Group. All rights reserved.
-
8/10/2019 Arab ICT Use Report 2009
2/88
2
Arab ICT Use Report 2009
C O N T A C T I N F O R M A T I O N
MA D A R R E S E A R C H G R O U P ,A Binzayed Group Company
Dubai Media City,
Building No. 8, Office 221.PO Box 502180 Dubai,
United Arab Emirates.
Tel. +971 4 3903059,
Fax: +971 4 3904688
www.madarresearch.com
Copyright 2009-2010 Madar Research Group. All rights reserved.
This copy ofArab ICT Use Report 2008report is intended solely for the recipient it is addressed to. It is
illegalto photocopy, electronically transmit, download to a database, or otherwise reproduce, distribute,
disseminate, publish, sell, send or circulate any portion of theArab ICT Use Report 2008to any person or
entity without the express written permission of Madar Research Group. Non-compliance may result in
legal action.
DISCLAIMERAll analyses, conclusions and recommendations provided in this research report are based on information and datagathered through primary research (telephone, e-mail or face-to-face interviews) and desk research (mainly from officialnews websites and published reports). Madar Research cannot be held responsible for any inaccuracy in the informationand data thus gathered which might have affected the analyses and conclusions in this report. Accordingly, MadarResearch is not responsible and cannot be held liable under any circumstances for any damage or loss financial orotherwise that may incur as a result of pursuing the recommendations and acting according to the findings of this report.
-
8/10/2019 Arab ICT Use Report 2009
3/88
3
Arab ICT Use Report 2009
T A B L E O F C O N T E N T S
O V E R V I E W .......................................................................................................................4
A N A L Y S I S O F M A J O R T R E N D S ......................................................................9
MOBILE PHONE SUBSCRIPTIONS ..............................................................................................9
F IXED L INE SUBSCRIPTIONS.................................................................................................... 14
M O B I L E - T O - F I X E D - L I N E S U B S C R I B E R S ............................................................................. 19
I N T E R N E T U S E R S ...................................................................................................................20
C O M P U T E R I N S T A L L E D B A S E ..............................................................................................23
I N D E P E N D E N T R E G U L A T O R Y A U T H O R I T I E S A N D L I B E R A L I Z A T I O N ................................26
C O U N T R Y I C T P R O F I L E S ................................................................................28
I C T P E N E T R A T I O N I N G CC - 2 0 0 8 ...................................................................................28
B A H R A I N : ...........................................................................................................................29
K U W A I T .............................................................................................................................. 31
O M A N .................................................................................................................................33
QA T A R ................................................................................................................................36
S A U D I A R A B I A ..................................................................................................................38
U N I T E D A R A B E M I R A T E S .................................................................................................42
G C C B R O A D B A N D P E N E T R A T I O N ...................................................................................45
I C T P E N E T R A T I O N I N L E V A N T 2 0 0 8 .............................................................................47
E G Y P T .................................................................................................................................47
I R A Q....................................................................................................................................50
J O R D A N ..............................................................................................................................52
L E B A N O N ............................................................................................................................54
P A L E S T I N E ..........................................................................................................................56
S Y R I A ..................................................................................................................................58
I C T P E N E T R A T I O N N O R T H A F R I C A - 2 0 0 8 ....................................................................... 61
A L G E R I A .............................................................................................................................62
L I B Y A ..................................................................................................................................65
M O R O C C O ..........................................................................................................................67
T U N I S I A ..............................................................................................................................70
O T H E R A R A B C O U N T R I E S ....................................................................................................72
S U D A N ................................................................................................................................72
Y E M E N ................................................................................................................................75
A P P E N D I X ......................................................................................................................77
A C T I V E M O B I L E P H O N E O P E R A T O R S I N T H E ME N A R E G I O N ........................................77
A C T I V E F I X E D L I N E O P E R A T O R S I N T H E M E N A R E G I O N ...............................................78
P O P U L A T I O N QU E S T I O N & I T S I M P A C T O N G C C P E R F O R M A N C E I N D I C A T O R s......... 80
-
8/10/2019 Arab ICT Use Report 2009
4/88
4
Arab ICT Use Report 2009
O V E R V I E W
The Arab world continued to make significant progress in the adoption of information and
communication technology (ICT) in 2008, with a strong trend for better services and increased
competition extending into the fixed line and Internet sectors. The average score of the 18MENA economies on Madar Researchs Arab ICT Use Index increased by 0.27 points to yield
1.01 at 2008 from 0.83 in 2007.
Madar Researchs annual Arab ICT Use Index examines four major indicators for each of the
18 MENA economies: mobile phone subscribers, fixed-line subscribers, Internet users and
installed computers. The index is calculated by adding the values of these four indicators for
each country and dividing the sum by its population. A higher score on the index indicates
more aggressive ICT adoption.
Before the economic downturn, the oil rich countries of the MENA region had largely
benefited, but to varying degrees (depending on their reserves and production quotas), fromthe very high oil and gas prices. More than ever, these countries now realize the need to use
this wealth for upgrading their infrastructure, developing their human resources and
diversifying their economies. They are also keen to use wealth for enhancing the knowledge
component of their economies as a safeguard against risky and perhaps less profitable future.
All these factors can be seen as a major contributor to growth in the telecom industry across
the MENA region.
Arab ICT Use Indicators 2008
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
2007 2008
Population Mobile Subscribers Fixed lines Internet Users PC Installed Base
The country with the highest fixed line penetration, the United Arab Emirates (UAE), topped
the 2008 index, with a score of 2.39. The UAE was among the top five for almost all the ICT
sectors. Industry analysts, however, predict the economic slowdown (or recession) and low oil
prices to lead to a sharp decrease in UAEs population growth in coming years, thus shrinking
mobile subscriber base. Regardless of the economic slowdown or the decline in transient
labor population analysts believe that subscribers growth should come from business visitors,
-
8/10/2019 Arab ICT Use Report 2009
5/88
-
8/10/2019 Arab ICT Use Report 2009
6/88
6
Arab ICT Use Report 2009
registered 19.06% and Bahrain ranked third overall on the index in mobile phone penetration,
at 125.68%, and first in the MENA region in computer penetration, at 35.23%.
In third place, Qatars overall score of 2.12 (from 1.70) on the 2008 Arab ICT Use Index also
represents a significant rise over its 2007 score. Qatars Qtel still holds a monopoly on the
countrys fixed line, mobile and Internet services. Although Vodafone Qatar (a consortium
made up of Vodafone Europe and the Qatar Foundation) is the second entrant to Qtels 22-
year monopoly over the telecom market, it hasnt yet began full operations in Qatar. It has so
far only initiated test operations, gradually powering up the first 1,000 customers. According
to recent reports, Vodafone Qatar was scheduled to launch services in March 2009 but this
was put back to June, with the Supreme Council for Information and Communication
Technology (ictQatar) revising the terms of Vodafones licensing agreement in April, giving ituntil September 1 to establish coverage over 98% of the country. Qtels Nawaras had also
been granted a first-class fixed-line license for a 25-year term by the government of Oman.
Qatar ranked third overall behind the United Arab Emirates and Bahrain in computer
penetration in the MENA region, with a penetration rate of 32.06%. Meanwhile, it ranked
second in Internet penetration (38.11%) and fixed line penetration (16.95%). Qatars mobile
phone penetration of 125.27% ranked it fourth in the Arab world in 2008.
Saudi Arabia held fourth place on the 2008 index, with an overall score of 2.09, a 0.43 point
above its 2007 score of 1.66. Its rank on the index is buttressed mainly by the countrys high
mobile phone penetration (142.87%) which ranked it first in the MENA region as a regional
telecom war heats up and the telecom providers are under intense pressure to improveprofitability, with huge rivals like STC, Kuwait's Zain and Emirates Telecommunications
competing in the region. Mobily, STC's most serious rival, recently posted a 50 percent rise in
second-quarter net profit over STC 22% profit drop in second-quarter profit, citing foreign
expansion costs and higher roaming fees had hurt profitability. Saudi Arabia ranked fourth in
the Arab world on fixed line penetration (17.38%), and fifth on Internet penetration (31.44%)
and computer penetration (18.84%). A number of Saudi Telecom providers are considering
reducing the charges by almost 70 percent as they seek to increase the number of users.
Mobile Vs. Fixedline Penetration Rate - 2008
0%
20%
40%
60%
80%
100%
120%140%
160%
SaudiA
rabia
UAE
Bahrain
Qatar
Libya
Oman
Kuwait
Jordan
Tunisia
Algeria
Morocco
Iraq
Egypt
Palestine
Syria
Lebano
n
Sudan
Yemen
PenetrationRate
Mobile Penetration Fixedline Penetration
-
8/10/2019 Arab ICT Use Report 2009
7/88
7
Arab ICT Use Report 2009
Meanwhile, Kuwait ranked fifth on the index, with 29.68% computer penetration and 36.97%
Internet penetration, ranking the country in the fourth place. Meanwhile, Kuwaits fixed line
penetration (15.90%) gave it sixth ranking in the MENA region. In spite of a third
operator, Viva, venturing into the Kuwait telecommunication market, the countrys mobile
penetration rate is below 100%, which is low when compared to its GCC counterparts,
especially the UAE which has 137% percent penetration. With a penetration rate of 98.28%
Kuwait is placed fifth in the Arab world on the indicator behind the United Arab Emirates,
Saudi Arabia, Bahrain and Qatar. The country scored 1.81 overall on the index, 0.28 points
behind Saudi Arabia.
Although GCC countries dominated the Arab ICT Use Index by occupying the top five
positions, they did not make the MENA regions list of countries with the highest growth
rates, except for Qatar registering the highest growth rate in mobile subscribers. That
privilege went to a selection of other MENA economies, which have largely underdeveloped
ICT markets where growth tends to be more visible. Libya achieved an impressive 75.76%
growth in the number of fixed line subscriptions in 2008 the strongest in the Arab world
followed by Yemen and Iraq with 30.84% and 25.36% growth, respectively. Growth in mobile
subscriptions was highest in Qatar at 54.47%. In 2008, countries like Lebanon, Jordan and
Tunisia registered negative fixed line growth. Iraq had the highest growth rate in the region
for Internet users and computer installed base, at 55% and 43%, third highest growth rate inthe region both in terms of mobile and fixed lines rising at 43.13% and 25.36%, while Yemen
registered the regions second highest growth rate in the fixed line and mobile segment, at
47.53% and 30.84%, respectively. As the case in Yemen, Moroccos competitive fixed line
service provider market helped drive growth in the sector, at 24.96%. Growth in the Internet
user market in 2008 was dominated by Egypt (45.82%), Syria (43%) and Sudan (42%), while
the top three positions in computer installed base growth went to Iraq (43%), Qatar (41.5%)
and Libya (41%).
Mobile Vs. Fixedline Growth Rate - 2008
-40%
-20%
0%
20%
40%
60%
80%
100%
Qatar
Yemen
Iraq
Libya
Egypt
Bahrain
Oman
UAE
SaudiArabia
Kuwait
Syria
Lebanon
Sudan
Palestine
Jordan
Morocco
Tunisia
Algeria
GrowthRate
Mobile Growth Fixedline Growth
-
8/10/2019 Arab ICT Use Report 2009
8/88
8
Arab ICT Use Report 2009
Palestine, Yemen and Sudan trailed the Arab world on the 2008 Arab ICT Use Index, ranking in
16th, 17th and 18th place respectively. Yemens score of 0.41 reflects the lowest penetration
rates in the MENA region on three of the four indicators, namely mobile phone penetration
(26.06%), Internet penetration (6.76%) and computer penetration (7.8%). Yemens fixed line
penetration rate saved it from bottoming out on all four indicators of the index, with the
country achieving 5.75% penetration (compared to Sudans 0.85%), ranking Yemen 17thon the
indicator. Meanwhile, Sudan scored slightly lower, 0.40 points, on the overall index and
Palestine 0.76 points.
Unlike 2007, where growth was dominated by mobile phone subscribers, 2008 saw an
impetus growth in Internet users, with the proliferation of online technology advancements
such as audio/video sharing, online gaming, instant messaging and social networking websites
changing the dynamics of the MENAs Internet culture. Internet users surged from 39,396,690
users in 2007 to 52,698,411 users in 2008, registering a 33.76% growth. Computer installed
base was the second-fastest growth sector in 2008, with computers witnessing a 29.65%
growth from 19,866,800 to 25,758,299 computers. Growth was slower for mobile
subscribers, with total subscription numbers increasing 25.03% from 174,877,340 to
218,644,453 subscribers. The slowest growth rate was recorded in the fixed line sector from32,574,421 to 36,281,348 or 11.38% growth.
Note must be made that discrepancies in historical data for the indicators (whenever present)
are generally the result of corrections made by the various providers to their subscriber bases,
mainly to account for new definitions of subscribers or because of tighter control over
statistical data exercised by newly-established regulatory authorities. In the case of the four
indicators, Madar Research has revised some figures as a result of new developments or data
that have come to light since the estimates were first made.
-
8/10/2019 Arab ICT Use Report 2009
9/88
9
Arab ICT Use Report 2009
A N A L Y S I S O F M A J O R T R E N D S
MOBILE PHONE SUBSCRIPTIONS
Six countries in the region had penetration levels well over 100%. By 2008 all countries in the
region (except Qatar) had at least two mobile phone operators. By year end 2008, less than 22
months after starting operations, the United Arab Emirates second mobile phone operator,
Du, registered 2,779,000 subscribers, compared to Etisalats 7,300,000 subscribers. This
strong growth in subscriber base has resulted in higher revenue for the company and has
helped to capture substantial market share from the former incumbent, Etisalat, bringing the
total number of mobile phone subscribers in the country to 10,079,000. The figure represents
a feeble growth for the operators in 2008 at 28.04% over the previous years 42.61%, ranking
8thon the growth index among Arab countries. Meanwhile, mobile phone penetration rose to
137.4%, the second highest rate in the MENA region for the year, up from the 131.64% in
A R A B M O B I L E P H O N E P E N E T R A T I O N B Y C O U N T R Y , 2 0 07 - 20 0 8
( R A N K E D B Y P E N E T R A T I O N )
RANK COUNTRY POPULATIONMOBILE PHONE
SUBSCRIPTIONS
MOBILE PHONE
PENETRATION
1 Saudi Arabia 25,239,067 36,059,212 142.87%
2 UAE 7,338,140 10,079,000 137.35%
3 Bahrain 1,156,114 1,453,000 125.68%
4 Qatar 1,553,729 1,946,343 125.27%
5 Libya 6,357,000 7,250,000 114.05%
6 Oman 3,013,184 3,219,865 106.86%
7 Kuwait 3,441,813 3,382,733 98.28%
8 Jordan 5,850,000 5,438,000 92.96%
9 Tunisia 10,377,200 8,411,630 81.06%
10 Algeria 34,634,000 27,031,474 78.05%
11 Morocco 31,345,356 22,816,000 72.79%
12 Iraq 30,581,365 18,287,470 59.80%
13 Egypt 76,054,000 44,526,000 58.55%
14 Palestine 4,212,000 2,022,163 48.01%
15 Syria 19,880,423 7,789,563 39.18%
16 Lebanon 4,209,000 1,436,000 34.12%
17 Sudan 41,810,000 11,437,000 27.35%
18 Yemen 23,248,500 6,059,000 26.06%
TO T A L 330,300,890 218,644,453 66.20%
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
10/88
10
Arab ICT Use Report 2009
2007. The United Arab Emirates mobile phone subscriber figures for the coming years are
expected to witness a sharp drop. The result of the current economic slowdown and the
higher cost of living in some emirates is bound to lead to a reduction in population growth in
the UAE, which has been one of the key drivers for increased subscriber numbers over the last
few years. Furthermore, Etisalat and Du are expected to enjoy a duopoly over fixed line,
mobile phone and Internet access services until at least 2010.
Total mobile phone subscriptions in the MENA region numbered 218,644,453 in 2008,
marking a growth rate of 25.03%, from 174,877,340 subscriptions in 2007 whichrepresented a growth of 40.51% over 2006. Qatar registered the highest growth in the Arab
world (54.47%) in terms of subscription in 2008, followed by Yemen (47.53%) and Iraq
(43.13%). In terms of mobile penetration, the figures showed that Saudi Arabia had the
highest penetration of 142.87%, followed by UAE and Bahrain at 137.35% and 125.68%,
respectively.
Similar to the UAE, the launch of a new mobile phone operator in Egypt had stimulated the
market greatly, with Etisalat Misr registering 6,800,000 subscriptions by end 2008. The
countrys two existing mobile phone service providers recorded a combined growth of 32.6%
A R A B M O B I L E P H O N E S U B S C R I P T I O N S B Y C O U N T R Y , 2 0 0 7- 2 00 8
( R A N K E D B Y G R O W T H )
RANK COUNTRY
MOBILE PHONE
SUBSCRIPTIONS 2007
MOBILE PHONE
SUBSCRIPTIONS 2008
GROWTH
(%)
1 Qatar 1,260,000 1,946,343 54.47%
2 Yemen 4,107,000 6,059,000 47.53%
3 Iraq 12,777,000 18,287,470 43.13%
4 Libya 5,105,073 7,250,000 42.02%
5 Egypt 31,550,626 44,526,000 41.13%6 Bahrain 1,116,000 1,453,000 30.20%
7 Oman 2,500,115 3,219,865 28.79%
8 UAE 7,872,000 10,079,000 28.04%
9 Saudi Arabia 28,400,041 36,059,212 26.97%
10 Kuwait 2,773,688 3,382,733 21.96%
11 Syria 6,451,104 7,789,563 20.75%
12 Lebanon 1,216,000 1,436,000 18.09%
13 Sudan 9,860,474 11,437,000 15.99%
14 Palestine 1,744,600 2,022,163 15.91%15 Jordan 4,772,000 5,438,000 13.96%
16 Morocco 20,029,000 22,816,000 13.91%
17 Tunisia 7,842,619 8,411,630 7.26%
18 Algeria 25,500,000 27,031,474 6.01%
T O T A L 174,877,340 218,644,453 25.03%
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
11/88
11
Arab ICT Use Report 2009
in their subscription figures, with Vodafone Egypts subscriber base rising by 32.09% to
17,611,000 subscribers and Mobinils subscriber base rising 33.06% to 20,115,000. Total
mobile phone subscriptions in Egypt numbered 44,526,000 by end 2008 the highest number
of mobile phone subscriptions in the Arab world in absolute figures. This figure represents a
growth rate of 41.13% from 31,550,626 subscriptions in 2007 the fifth fastest growth rate in
mobile phone subscriptions in the Arab world behind Libya and Iraq.
Iraq ranked third on the Arab mobile subscription growth index, with subscriptions growing by
43.13%, from 12,777,000 to 18,287,470. The Iraqi government had imposed a fine of over 20
million US$ on its regional telecom providers for outages and poor network quality, though
the operators have put the blame to US security services which use mobile jammers to
prevent bomb detonations. Despite a double digit growth this year, Iraqs mobile phone
penetration remains comparatively low and ahead of Egypt.
Libyas mobile phone subscriber base grew by a strong 42.02% in 2008, with its two state-
owned mobile phone operators registering 2,144,927 new subscriptions for a total of
7,250,000 subscriptions by year end 2008. Strong growth in the mobile sector catapulted the
country into 5th place in the MENA region in terms of mobile phone penetration, with Libyarecording 114.05% penetration in 2007, from 43.14% in 2006. Likewise, five GCC member
countries registered penetration rates in excess of 100% in 2008: Saudi Arabia (142.87%), UAE
(137.4%) and Bahrain (125.7%) were in the first 3 spots. Fourth and fifth place in the standings
were also taken by Qatar with 125.3% penetration and Oman with 106.86% penetration.
The regions slowest growth in 2008 was recorded by Algeria, whose mobile phone
subscriptions had the lowest growth in 2008 at 6%, from the 6.86% in 2007. Compared to
the 25,500,000 subscribers of last year (2007), Algerias subscriber base increased by
1,531,474 new subscribers over the previous year. Nevertheless, the country ranked 10 thin
the region in terms of mobile phone penetration, at 82.6%. Three other countries that
registered the lowest double digit growth in 2008 were Tunisia (7.26%), Morocco (13.91%)and Jordan (13.96%). Meanwhile, Yemen registered the regions lowest mobile phone
penetration, at 26.06%, followed by Sudan (27.35%), Lebanon (34.1%), Syria (39.2%) and
Palestine (48.01%).
Several major developments took place in the mobile sector in 2007 that were carried over to
2008 and 2009. In September 2008, Bahrains Telecommunications regulatory authority
invited bids for the countrys third mobile phone operator license with the new operator
expected to launch services in 2009 to compete with existing mobile phone service providers,
Batelco and Zain. Saudi Telecommunications Company (STC) became the successful bidder for
the third mobile License in Bahrain with a bid of 86.69 million Bahraini Dinars ($230 million).
The complete commercial launch of the all-new, scalable 3.5G network for Oman Mobile was
done on March 2009 to support the bandwidth hungry services of the future. Meanwhile,
Oman Mobile also became the first company in Middle East to grant resale rights to firms
using its infrastructure. It has signed contracts with two new mobile operators Renna and
FRiENDi allowing them to resell mobile services to subscribers across Oman using their own
brands marketing and sales channels. The UAE based FRiENDi mobile, the first mobile virtual
network operator (MVNO) in the Middle East and the Omans first mobile reseller went live
on April 2009 and its rival, the fully Omani owned MVNO operator Renna on May 2009. Both
-
8/10/2019 Arab ICT Use Report 2009
12/88
12
Arab ICT Use Report 2009
firms are focusing on transforming the telecommunication industry in Oman by providing
value added products and services.
Kuwait awarded the countrys third mobile phone license in November 2007 to a consortium
led by Saudi Telecom. Established in June 2008, Kuwait Telecommunications Company
(branded Viva) launched its services in December 2008. Meanwhile, Qatars Supreme Council
for Information and Communications Technology (ictQatar) set in motion the liberalization of
the countrys telecommunications sector with the award of a second mobile phone license in
December 2007 to a consortium comprising Vodafone and the Qatar Foundation. Vodafone
Qatar is expected to start commercial operations in Q1 2009. In spite of a third operator, Viva,
venturing into the Kuwait telecommunication market, the mobile penetration rate is expected
to exceed 100 percent only in 2010, which is low compared to other GCC countries, especially
the UAE which has 137% percent penetration.
In June 2007, the Saudi Council of Ministers granted a new mobile phone license to a
consortium led by Kuwaits Zain (formerly MTC-Vodafone). The company launched
commercial operations in Saudi Arabia in August 2008.
Although Iraqs three mobile phone licenses expired in December 2005, the country did not
award new ones the following year as expected, but extended existing licenses throughout
the year on a semi-annual and then quarterly basis. The country eventually awarded the three
national mobile phone licenses in August 2007 to Kuwaits Zain (Atheer), Qatars Qtel
(Asiacell) and Iraqs Korek Telecom.
Qatars Qtel was also awarded a license through its subsidiary Wataniya Telecom for
Palestines second mobile phone service provider in March 2007, which is yet to begin
operations in Palestine.
A R A B M O B I L E P H O N E S U B S C R I P T I O N S B Y R E G I O N , 2 0 07 - 20 0 8
COUNTRYMOBILE PHONE
SUBSCRIPTIONS 2007
MOBILE PHONE
SUBSCRIPTIONS 2008
GROWTH
(%)
LEVANT 58,511,330 79,499,196 35.87%
GCC 43,921,844 56,140,153 27.82%
NORTH AFRICA 58,476,692 65,509,104 12.03%
SUDAN & YEMEN 13,967,474 17,496,000 25.26%
T O T A L 174,877,340 218,644,453 25.03%
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
13/88
13
Arab ICT Use Report 2009
Mobile Phone Subscription by Region,
2007
33.44%7.99%
25.12%
33.46%
Levant GCC North Africa Yemen & Sudan
Mobile Phone Subscription by Region, 2008
29.96%8%
25.68%36.36%
Levant GCC North Africa Sudan & Yemen
Source: Madar Research
Levant countries grew by a sluggish 35.87% from the 50.21% in 2007 to register 20,987,866
new mobile phone subscriptions and bring the total base to 79,499,196by year end 2008,against 58,511,330 in 2007. Meanwhile, GCC countries registered 56,140,153 mobile phones
subscriptions, compared to 43,921,844 subscriptions in 2007 down to a slower 27.8% over
end 2007 figures (40.04% growth in 2007). North Africa witnessed the slowest growth in the
sector, with growth in mobile phone subscriptions at only 12.03% in 2008, way down from
26.85% in 2007. As in North Africa growth rates in Sudan and Yemen were low; 25.3% was the
combined growth rate in these two countries, a huge drop from the 78.09% growth
experienced in 2007.
Unlike 2007, which had only the Jordanian mobile market comprising of 4 mobile service
providers, 2008 consisted of two additional countries which were also considered the most
competitive in the MENA region. Competition among mobile operators is also unique in theseregions and would depend on factors like regulatory environment, demand, tariffs and
geography, coverage and promotional approaches. Saudi Arabia and Yemen have four active
operators, followed by Algeria, Iraq, Sudan, Egypt, Morocco and Kuwait, with three mobile
operators each. All other MENA countries have two active operators, barring Palestine and
Qatar, each of which only had one.
Active Mobile Phone Operators 2008
4
3 3 3
4 4
3
2
3
2 2
3
2 2 2 2
1 1
JORDAN
SUDAN
ALGERIA
IRAQ
SAUDI
ARABIA
YEMEN
EGYPT
BAHRAIN
KUWAIT
LEBANON
LIBYA
MOROCCO
OMAN
SYRIA
TUNISIA
UAE
PALESTINE
QATAR
-
8/10/2019 Arab ICT Use Report 2009
14/88
14
Arab ICT Use Report 2009
FIXED LINE SUBSCRIPTIONS
The number of fixed-line subscriptions in the 18 MENA economies totaled 36,658,348 in 2008,
up from 32,824,645 subscriptions in 2007. Growth in the fixed line sector has become
stagnant in some economies and is growing at a slow pace. Compared to 2007s 9.7% 2008
witnessed an overall growth of 11.38% in the region. Fixed line penetration within the 18
economies stood at about 11%. The most recent growth can be seen to have taken place
among emerging markets with high population and relatively low penetration rates.
Libya had the fastest growth rate in the MENA Region, with 75.76% compared to the 2.20% of
2007. Subscription for fixed lines in this country was 910,000 in 2008, which is 392,250 more
subscribers than in the previous year. Libyas penetration rate however remains low, with
14.31%, ranking the country 8thon the penetration scale for the MENA region.
Telecommunications infrastructure development in Libya is the responsibility of the state-
owned GPTC, which was set up in 1984. GPTC oversees the operation of fixed and mobile
lines, as well as Libyas Internet service providers (ISPs). GPTC has expanded landline coverage
to several parts of the country, although according to certain reports the quality of its
infrastructure and service needs significant enhancement. Improving network performance
A R A B F I X E D L I N E P E N E T R A T I O N B Y C O U N T R Y , 2 00 7- 20 08
( R A N K E D B Y P E N E T R A T I O N )
RANK COUNTRY POPULATION
FIXED-LINE
SUBSCRIPTIONS
FIXED-LINE
PENETRATION
1 UAE 7,338,140 1,640,000 22.35%
2 Bahrain 1,156,114 220,386 19.06%
3 Syria 19,880,423 3,633,400 18.28%
4 Qatar 1,553,729 263,363 16.95%
5 Saudi Arabia 25,239,067 4,123,000 16.34%
6 Kuwait 3,441,813 547,111 15.90%
7 Egypt 76,054,000 11,900,000 15.65%
8 Libya6,357,000 910,000 14.31%
9 Lebanon 4,209,000 527,500 12.53%
10 Tunisia 10,377,200 1,239,000 11.94%
11 Algeria 34,634,000 3,687,603 10.65%
12 Morocco 31,345,356 2,991,185 9.54%
13 Oman 3,013,184 274,178 9.10%
14 Jordan 5,850,000 519,000 8.87%
15 Palestine 4,212,000 357,000 8.48%
16 Yemen 23,248,500 1,337,122 5.75%
17 Iraq 30,581,365 1,755,000 5.74%18 Sudan 41,810,000 356,500 0.85%
TO T A L 330,300,890 36,658,348 11%
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
15/88
15
Arab ICT Use Report 2009
and providing reliable service in both fixed and mobile telephony remains a major challenge
for Libya, especially since the sector lacks competition, is government-controlled and
managed, and marked by the absence of world class suppliers of technology and expertise.
The high growth potential in Libya and the region, however, has recently attracted Turkey's
biggest mobile-phone operator Turkcellto bid for a license to provide landline and mobile-
phone services in Libya.
A R A B F I X E D L I N E G R O W T H B Y C O U N T R Y , 2 0 07 - 20 0 8
( R A N K E D B Y G R O W T H )
RANK COUNTRY
FIXED-LINE
SUBSCRIPTIONS 2007
FIXED-LINE
SUBSCRIPTIONS 2008 GROWTH
1 Libya 517,750 910,000 75.76%
2 Yemen 1,021,988 1,337,122 30.84%
3 Iraq 1,400,000 1,755,000 25.36%
4 Morocco 2,393,767 2,991,185 24.96%
5 Algeria 3,068,409 3,687,603 20.18%
6 UAE 1,371,000 1,640,000 19.62%
7 Egypt 10,900,000 11,900,000 9.17%
8 Qatar 242,000 263,363 8.83%
9 Bahrain 203,500 220,386 8.30%
10 Kuwait 517,300 547,111 5.76%
11 Syria 3,450,000 3,633,400 5.32%
12 Sudan 345,200 356,500 3.27%
13 Saudi Arabia 4,000,000 4,123,000 3.08%
14 Oman 268,065 274,178 2.28%
15 Palestine 350,442 357,000 1.87%
16 Tunisia 1,273,000 1,239,000 -2.67%
17 Jordan 559,000 519,000 -7.16%
18 Lebanon 693,000 527,500 -23.88%
TO T A L 32,574,421 36,281,348 11.38%
Source: Madar Research
Yemen also demonstrated strong growth in 2008. It stood second on the Arab regions fixed-
line growth rate index, at 30.84% compared to the 5.54% of 2007. According to some industry
analysis reports, this growth is expected to be mainly through the PTC's (Public
Telecommunications Corporation) efforts to provide fixed line services in most rural areas of
Yemen. The government of Yemen fully owns and directly oversees the operations of the
monopoly fixed line operator, Public Telecommunications Corporation (PTC), and owns a
controlling stake in the CDMA cellular operator, Yemen Mobile, through the PTC. However,
Yemen had the lowest fixed line penetration rate compared to other Arab countries.
Moroccos fixed telephony market achieved an annual increase of 25% in subscribers, with a
total of 2.991 million lines in service as of December 31, 2008 (including services with
restricted mobility, the majority of which are provided by Wana). In January 2007, the
-
8/10/2019 Arab ICT Use Report 2009
16/88
16
Arab ICT Use Report 2009
countrys regulatory authority awarded Wana (formerly Maroc Connect) Moroccos third fixed
line license. Whereas fixed line subscriptions witnessed negative growth in 2006, with the
number of subscriptions falling 5.60% to 1,266,119 subscriptions, the sector witnessed a
dramatic reversal in 2007 and 2008, with fixed line subscriptions growing at 89.06% to register
2,393,767 subscriptions (the highest fixed line growth in 2007) and 24.96% growth with
2991,185 subscriptions in 2008. Moroccos fixed line market represents the fourth fastest
growth in the MENA region for 2008. Fixed line penetration in the country rose to 9.54% from
the 7.63% in 2007, ranking the country in 12th
place, up from 15th
in 2007.
The liberalization of Algerias fixed line market has helped to spur growth in the sector, with
fixed line subscriptions rising by 12.18% in 2008 to yield 20.18% from the 8% in 2007.
However, Algerie Telecom, the incumbent provider continued to dominate the sector,
accounting for 3,687,603 fixed line (wireless local loop subscribers of about 697,603)
subscriptions in 2008. The Consortium Algrien de Tlcommunications (brand name Lacom),
a joint venture between Telecom Egypt and Orascom Telecom that was licensed as Algerias
first private-sector fixed-line operator in 2005, entered the market in 2006 providing WLL
(wireless local loop)1connections exclusively. By end 2007, the company recorded only 44,916
subscriptions, or 1.46% of total fixed line subscriptions in Algeria. Coupled by poortechnology, administrative challenges and lack of strategy, low subscriptions lead to the
virtual collapse of Lacom in 2008. The company could not meet the commitments regarding
national coverage contained in its operating framework. Short on cash, the company laid off
staff and closed a number of boutiques, leaving only a single store open in the capital. Lacom
blamed favoritism on ARPTs part for the benefit of state-run Algerie Telecom as a prime
reason for their collapse.
Meanwhile, in the United Arab Emirates duopoly between the two fixed line service
providers, Emirates Integrated Telecommunications Company (brand name Du) and Emirates
Telecommunications Corporation (Etisalat) continues as they vied for market share in the
country, with Etisalat maintaining its market dominance in 2008. The countrys fixed-linesubscribers numbered 1,640,000 in 2008, rising 19.62% over 2007. Total fixed line subscribers
also include Dus 280,000 residential and business subscribers in several free zone areas and
freehold residential complexes in Dubai. Together, the two companies subscription base
contributed to the United Arab Emirates 22.35% fixed line penetration, the highest
penetration rate in 2008 among MENA economies.
Three countries in the MENA region recorded negative growth in fixed line subscriptions,
namely Tunisia, Jordan and Lebanon. Fixed line subscriptions in Tunisia fell by a significant (-
2.7%), from 1,273,000 to 1,239,000 subscriptions in 2008. The fixed-line telephony monopoly
in Tunisia, plus relatively high prices by the provider, are slowing penetration in households.
National fixed-line rates range from 14 to 20 millimes(thousandths of a dinar) per minute,depending on the time of day. Jordan recorded the second highest negative growth in the
Arab region in fixed line subscriptions; -7.71%, with subscriptions dropping from 559,000 in
2007 to 519,000 in 2008. Consequently, fixed line penetration in Jordan dropped from 9.77%
to 8.87% in 2008, earning the 14thspot on the Arab fixed line penetration scale. Lebanon on
1Wireless local loop (WLL) is a system that connects subscribers to the local telephone station wirelessly rather than through copper wires. It
is used as the "last mile / first mile" connection for delivering plain old telephone service (POTS) and/or broadband Internet to
telecommunications customers.
-
8/10/2019 Arab ICT Use Report 2009
17/88
17
Arab ICT Use Report 2009
the other hand recorded the lowest growth rate (or the highest negative growth) on the scale
for fixed lines with -23.88% compared to the 3.43% growth in 2007. With 527,500 subscribers
in 2008 (fewer by 165,500 from 2007) the penetration rate dropped from the 14.74% to
12.53% in 2008 ranking Lebanon ninth on the penetration scale.
Sudan recorded the lowest penetration rate in the Arab region for fixed line subscriptions,registering 0.85% from 345,200 subscriptions in 2007 to 356,500 in 2008. Growth rates in
Sudan remain relatively low as well with 3.27% in 2008. According to certain online reports,
there are no major technical or financing challenges to telecommunications infrastructure
development. However, the penetration rate remains low due to limited demand. Demand
for services other than telephones is also constrained by the regions disposable income and
work practices. Yemen and Iraq fall next in line in terms of economies having the lowest fixed-
line penetration rates at 5.75% and 5.74%, respectively. Iraqs 25.36% growth is among the
top five fastest growth rates in the Arab world Iraqs fixed line subscriptions by end 2008
rose to 1,755,000, up from 1,400,000 to yield 5.47% which was not met well when scaled with
other economies in the Arab world .
Omans fixed line subscriptions have increased relatively well since its negative 0.61% in 2007,
from 269,700 in 2006 to 268,065 subscriptions in 2007. In 2008 fixed line growth surged to
2.28% (274,178 subscribers), with Omantel remaining the sole provider of fixed line services;
local, long distance and international calling, public pay phones, in addition to the Internet. By
end 2008, the number of active public payphones in Oman decreased to 6,703 as compared
with 6,858 by end of 2007 (-2.26%). The reasons mentioned by Omantel for the reduction in
payphones are: removal request from building owners, building maintenance and low
revenue from these payphones. Fixed line penetration rate in Oman in 2008 remained
practically unchanged; 9.10%. Post-paid fixed line subscribers registered positive growth
(12.42%) compared to prepaid subscribers, with 47,306 prepaid and 220,169 postpaid
subscribers registered in the country in 2008.
Kuwait, which has the least liberalized fixed line market in the GCC, on the other hand, grew
by 5.8% to reach 547,111 subscribers. This marginally lifted a low penetration rate of 15.21%
registered in 2007 to 15.90% in 2008. This remained below a 16.15% rate in 2006. Fixed lines
and international gateway services are provided solely by the Ministry of Communications in
Kuwait.
Ranking second in the Arab world in fixed line penetration, Bahrain recorded a rate of 19.06%
in 2008, slightly lower than 19.44%, in 2007 though subscriptions increased from 203,500 in
2007 to 220,386 in 2008. The growth of wireless fixed lines (Wireless Local Loop) in the
country has led to the growth rate of 8.30% in 2008. The marginal decrease in fixed linepenetration in 2008 may be attributed to the countrys increasing population. The licensing of
two new service providers back in 2005 to operate alongside incumbent Batelco in the fixed
line sector has played a strong role in promoting growth of fixed line subscriptions in the
country.
Syria, meanwhile, ranked third in the Arab world in fixed line penetration in 2008, which
stood at 18.28%. The Syrian Telecommunications Establishment, a state-owned body holding
a monopoly over Syria's landline network has started expanding into rural areas as a part of
-
8/10/2019 Arab ICT Use Report 2009
18/88
18
Arab ICT Use Report 2009
its fully fledged 2010 reform strategy. Syria ranked 12thon the growth scale among MENA
regions, with 3,633,400 subscribers registered in 2008 representing a growth of 5.32%.
Saudi Arabia, which liberalized its fixed line sector in 2007 with the award of as many as three
new fixed line licenses in June, signaled the end of incumbent Saudi Telecoms long-standing
monopoly over the sector. Saudi Arabia stands 4th in the MENA region with 16.34%
penetration in 2008 compared to 15.69% in 2007. However, Saudi Arabias 3.08% growth rate
ranked it 13th
among Arab countries.
Gulf Cooperation Council countries accounted for 7,068,038 subscriptions in 2008, growing at
a rate of 7.06%. The regions growth rate in 2007 was a lower 2.46%, indicating that growth
remains unchanged and the fixed-line sector is not stagnating with in some of the GCC regionsand may also witness a steady growth in the coming years. Fixed line subscriptions in the
Levant grew by 7.72% to 18,691,900 subscriptions indicating the fixed line market is nearing
saturation among this region with growth slowing down consistently year after year, while
North Africas 2008 fixed line subscriptions dropped by 1.6% to yield 21.71% compared to
23.31% growth in 2007. The highest growth in this sector was attained by the emerging
markets of Sudan and Yemen at 23.88%.
A R A B F I X E D L I N E S U B S C R I P T I O NS B Y R E G I O N , 2 00 7- 20 08
COUNTRY/REGIONFIXED LINE SUBSCRIPTIONS
2007
FIXED LINE SUBSCRIPTION
2008
GROWTH
(%)
LEVANT 17,352,442 18,691,900 7.72%
GCC 6,601,865 7,068,038 7.06%
NORTH AFRICA 7,252,926 8,827,788 21.71%
SUDAN & YEMEN 1,367,188 1,693,622 23.88%TO T A L 32,574,421 36,281,348 11.38%
Source: Madar Research
FixeLine Subscription by Region, 2007
22.27%
4.20%20.27%
53.27%
Levant GCC North Africa Sudan & Yemen
FixedLine Subscription by Region, 2008
24.33%
4.67%
19.48%
51.52%
Levant GCC North Africa Sudan & Yemen
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
19/88
19
Arab ICT Use Report 2009
MOB ILE -TO -F IXED L I NE SUB S CRIB ERS
According to recent industry reports, fixed line
subscribers and revenues worldwide have been
falling, partly due to increased mobile
substitution. The need for stationary landlines for
voice has been replaced by roamable, reachable
and convenient mobile phones. This notion mixed
with the general concurrent stagnation of fixed
line markets in the Arab world has contributed to
a phenomenal rise in mobile phone subscriptions
across the Arab world and to a higher mobile-to-
fixed-line ratio in all MENA countries. Fixed line
subscribers growth in the MENA region was only
11.38% compared to 25.03% mobile growth in
2008, resulting in a ratio of 6.03 (i.e. 6.03 mobile
phone subscriptions for every fixed line
subscription), rising from 5.23 in 2007.
Keeping its 2007 record, Sudan had the highest
ratio in 2008, at 32.08 mobile phone subscriptions
for every fixed line subscription. Sudan can be
seen as a vastly underexploited country in terms
of fixed line, mobile and Internet use, with much
potential for growth.
Oman ranked second this year with an 11.74 ratio,
while Jordan ranked third with 10.48. Comparingthe growth rates of both these countries in fixed
line and mobile phone subscriptions shows that
mobile growth supersedes fixed line growth.
Mobile-to-Fixed line susbscribers, 2008
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Egypt
SaudiArabia
Algeria
Morocco
Iraq
Sudan
UAE
Tunisia
Syria
Libya
Yemen
Jordan
Kuwait
Oman
Palestine
Qatar
Bahrain
Lebanon
Mobile FixedLines
M O B I L E- T O - F I X E D L I N E
S U B S C R I B E R S , 2 0 07 - 20 0 8
( R A N K E D B Y R A T I O )
RANK COUNTRY 2008 20071 Sudan 32.08 16.99
2 Oman 11.74 8.98
3 Jordan 10.48 9.86
4 Iraq 10.42 5.36
5 Saudi Arabia 8.75 8.54
6 Libya 7.97 7.10
7 Morocco 7.63 5.21
8 Qatar 7.39 5.48
9 Algeria 7.33 8.37
10 Tunisia 6.79 5.68
11 Bahrain 6.59 9.13
12 Kuwait 6.18 4.98
13 UAE 6.15 6.16
14 Palestine 5.66 4.02
15 Yemen 4.53 2.62
16 Egypt 3.74 9.33
17 Lebanon 2.72 1.75
18 Syria 2.14 1.87
TO T A L 6.03 5.23
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
20/88
20
Arab ICT Use Report 2009
A 9.66 mobile-to-fixed line subscriptions ratio in Libya, which ranked it second in the Arab
world in 2007, dropped to 7.97 in 2008. GPTC (General Posts and Telecommunications
Company) has expanded landline coverage to many parts of Libya, suggesting higher fixed line
growth rates over mobile phones. Saudi Arabia had a higher ratio of 8.75 compared to 7.10 in
2007 indicating a far healthier growth in mobile phones over fixed lines.
Egypt also made strong gains in the mobile phone to fixed line ratio, raising the ratio from
2.62 in 2007 to 3.74 mobile phones for every fixed line subscription in the country. The gap
between the two indicators widened significantly in Qatar, with the countrys mobile phone
to fixed line ratio rising from 5.21 in 2007 to 7.39 in 2008. Meanwhile, the lowest mobile
phone to fixed line ratio was recorded in Syria and Lebanon, which respectively have 2.14 and
2.72 mobile phones for every fixed line subscription. Both ratios, however, represented an
increase over 2007 ratios. The average across the 18 Arab countries surveyed for the study
was 5.23 mobile phones for every fixed-line subscription, rising from 4.06 in 2006.
IN TERN ET US ERS
The total number of Internet users in the 18
Arab economies under study is rising quickly.
Annual growth rate are of the order of 20%
and sometimes as high as 30%. Internet users
from the 18 Arab countries in 2008 was
52,698,411, rising at a rate of 33.76% over
the 2007 figure of 39,408,690. The most
recent and highest growth rates are taking
place in emerging markets with high
population and relatively low penetrationrates.
Internet user growth is being driven by steady
progress shown in traditionally low-
penetrated countries, such as Iraq, Egypt and
Syria, there is also considerable gap between
countries with UAE at the high end and
Yemen at the low end. Considering the
compounded annual growth rate (CAGR) of
61.8% for the past 4 years, Iraq registered the
strongest growth in Internet users in 2008, at55% for a total of 3,084,500 users. Egypt
ranked second in terms of growth, with
Internet users rising by a 45.82% to register
12,570,000 by end 2008. In third place in the
MENA region in terms of growth, Syria
recorded 43% growth in Internet users from
2,400,000 in 2007 to 3,432,000.
I N T E R N E T G R O W T H F O R A R A B
C O U N T R I E S 2 0 0 8
RANK COUNTRYINTERNET
USERSGROWTH (%)
1 Iraq 3,084,500 55.00%
2 Egypt 12,570,000 45.82%
3 Syria 3,432,000 43.00%
4 Sudan 3,479,000 42.00%
5 Qatar 592,200 41.00%
6 Yemen 1,570,800 40.00%
7 Oman 540,150 38.50%
8 Bahrain 435,600 32.00%
9 UAE 3,353,600 31.00%
10 Jordan 1,441,000 31.00%
11 Algeria 3,965,000 30.00%
12 Lebanon 1,196,800 28.00%
13Saudi
Arabia 7,936,000 24.00%
14 Kuwait 1,272,433 21.18%15 Tunisia 2,066,628 20.00%
16 Libya 966,000 20.00%
17 Morocco 4,200,000 20.00%
18 Palestine 596,700 8.00%
TO T A L 52,698,411 33.76%
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
21/88
21
Arab ICT Use Report 2009
The bottom five countries in the region in terms of growth were Kuwait (14), Tunisia (15th
place), Libya (16), Morocco (17), and
Palestine (18). The latter had registered
modest single digit growth of 8% in 2008, its
Internet users rising from 552,500 in 2007 to
596,700 in 2008. The remaining countries all
registered double digit growth, albeit modest
in most cases when compared to last year. In
total, ten countries grew at a rate lower than
the Arab average of 31.69%, including the
United Arab Emirates, Jordan, Saudi Arabia,
Algeria and Lebanon, as well as the five
countries at the bottom of the index. A
significant reason considered by industry
analyst for the stagnant growth of Internet
users in with some parts of the Arab regions
have been the lack of sufficient websites inArabic languages and the problems
associated with displaying Arabic language
scripts with certain international web
software. Lack of available content in regional
languages prevents the Internet from being a
part of everyday life hindering growth and
penetration rates.
Average Internet penetration for the 18
MENA economies this year was higher from
the previous 12.16% at 15.95%. As in pastyears, the UAE topped the index with deeper
penetration of 45.7% than the 37.79% of
2007, followed by Qatar in second place with
I N T E R N E T P E N E T R A T I O N F O R A R A B
C O U N T R I E S 2 0 0 8
RANK
COUNTRY
INTERNET
USERS PENETRATION
1 UAE 3,353,600 45.70%
2 Qatar 592,200 38.11%
3 Bahrain 435,600 37.68%
4 Kuwait 1,272,433 36.97%
5Saudi
Arabia7,936,000 31.44%
6 Lebanon 1,196,800 28.43%
7 Jordan 1,441,000 24.63%
8 Tunisia 2,066,628 19.92%
9 Oman 540,150 17.93%
10 Syria 3,432,000 17.26%
11 Egypt 12,570,000 16.53%
12 Libya 966,000 15.20%
13 Palestine 596,700 14.17%
14 Morocco 4,200,000 13.40%
15 Algeria 3,965,000 11.45%
16 Iraq 3,084,500 10.09%
17 Sudan 3,479,000 8.32%
18 Yemen 1,570,800 6.76%
TO T A L 52,698,411 15.95
Source: Madar Research
Internet Users Penetration , 2008
0%
5%
10%
15%20%
25%
30%
35%
40%
45%
50%
UAE
Qatar
Bahrain
Kuwait
SaudiArabia
Lebanon
Jordan
Tunisia
Oman
Syria
Egypt
Libya
Palestine
Morocco
Algeria
Iraq
Sudan
Yemen
-
8/10/2019 Arab ICT Use Report 2009
22/88
22
Arab ICT Use Report 2009
38.11% penetration. Hot on the heels of Qatar is Bahrain, which recorded 37.68% Internet
penetration in 2008, followed by Kuwait with 36.97%. Saudi Arabia rounded off the top five,
with Internet penetration at 31.44%.
At the other end of the scale, Yemen registered 6.76% Internet penetration, the lowest in the
Arab world, ranking the country in 18th place on the indicator. Faring slightly better, Sudans
penetration rate of 8.32% ranked it in 17th place among the MENA economies. Sudan and
Yemen were the only two countries on the index to register a single digit growth in 2008.
While Iraq ranked in 16th place with 10.09% penetration and Algeria ranking itself in 15th
place. Morocco crossed its 10% mark of 2006, registering an Internet penetration rate of
11.15% in 2007, and 13.40% in 2008 to rank in 14th place.
There was not much of a difference in regional growth levels in 2008 from 2007, with Internet
users in the Gulf Cooperation Council countries rising by 26.73% (14,129,983 users), to 23.36%
growth in North Africa (11,197,628 users). Levant registered stronger growth, at 43.11% in
2008, to bring the number of Internet users up to 22,321,000. However, the year-on-year
growth rates for each region represented a dramatic increase. Overall, Internet users in the
MENA region grew by 33.76% in 2008.
I N T E R N E T U S E R S B Y R E G I O N , 2 0 07 - 20 0 8
COUNTRY INTERNET USERS 2007 INTERNET USERS 2008GROWTH
(%)
LEVANT 15,597,500 22,321,000 43.11%
YEMEN & SUDAN 3,572,000 5,049,800 41.37%
GCC 11,150,000 14,129,983 26.73%
NORTH AFRICA 9,077,190 11,197,628 23.36%
T O T A L 39,408,690 52,698,411 33.76%Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
23/88
23
Arab ICT Use Report 2009
COMPUTER IN S TALLED BASE
C O M P U T E R I N S T A L L E D B A S E F O R AR A B
C O U N T R I E S 2 0 0 8
RANK COUNTRYCOMPUTER
INSTALLED BASE GROWTH (%)
1 Iraq 1,337,050 43.00%
2 Qatar 498,080 41.50%
3 Libya 729,675 41.00%
4 UAE 2,475,451 39.00%
5 Bahrain 407,100 38.00%
6 Kuwait 1,021,614 38.00%
7 Algeria 2,000,700 35.00%
8Saudi
Arabia 4,755,392 34.00%
9 Yemen 592,551 32.03%
10 Oman 416,000 30.00%
11 Syria 1,430,000 30.00%
12 Egypt 4,295,590 30.00%
13 Sudan 1,292,562 19.68%
14 Tunisia 902,521 17.59%
15 Lebanon 674,360 15.00%
16 Jordan 814,660 15.00%
17 Morocco 1,904,000 12.00%
18 Palestine 210,993 5.55%
TO T A L 25,758,299 29.65%
Source: Madar Research
The computer installed base in MENA economies rose to 29.65% from the 20.88% in 2007 to
reach 25,758,299 from 19,866,800 the year before. Growth in the number of installed
computers achieved to reach heights beyond those of 2007, with 12 countries recording 30%
or more growth on the indicator in 2008. Iraq ranked first in the Arab world in terms of
growth, its computer installed base rising 43% to 1,337,050, followed by Qatar, recorded
41.5% growth in its computer installed base to reach 498,050 computers from 352,000
previously. Libya ranked third with 41% growth followed by UAE (39%) and Bahrain (38%).
Meanwhile Palestine and Morocco recorded the lowest growth rates in the MENA region with
Palestine projecting a single digit growth of 5.5% with 210,993 installed computers in 2008.
Morocco is preceded by Jordan with 814,660 computers and ranking 16th on the index,
registering 15% growth. Tunisia and Lebanon rounded up the bottom five countries, ranking in
14thand 15thplace respectively.
Bahrain led the region in terms of computer penetration in 2008, with 35.21% (407,100
computers). However the previous title holder UAE is hot on heels of Bahrain with 33.73%
computer penetration. Qatar ranked third this time pushing Kuwait fourth with 32.06%
C O M P U T E R I N S T A L L E D B A S E F O R A R A B
C O U N T R I E S 2 0 0 8
RANK COUNTRY
COMPUTER
INSTALLED BASE PENETRATION
1 Bahrain 407,100 35.21%
2 UAE 2,475,451 33.73%
3 Qatar 498,080 32.06%
4 Kuwait 1,021,614 29.68%
5Saudi
Arabia4,755,392 18.84%
6 Lebanon 674,360 16.02%
7 Jordan 814,660 13.93%
8 Oman 416,000 13.81%
9 Libya 729,675 11.48%
10 Tunisia 902,521 8.70%
11 Syria 1,430,000 7.19%
12 Morocco 1,904,000 6.07%
13 Algeria 2,000,700 5.78%
14 Egypt 4,295,590 5.65%
15 Palestine 210,993 5.01%
16 Iraq 1,337,050 4.37%
17 Sudan 1,292,562 3.09%
18 Yemen 592,551 2.55%
TO T A L 25,758,299 7.8%
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
24/88
24
Arab ICT Use Report 2009
penetration, while Kuwait only 29.68%. In fifth place, Saudi Arabia fell below the 20% mark,
registering only 18.84% penetration in 2008. Nine countries from the MENA region recorded a
penetration rate below 10%, including Tunisia (8.70%), Syria (7.19%), Morocco (6.07%),
Algeria (5.78%), Egypt (5.65%), Palestine (5.01%), Iraq (4.37%), Sudan (3.09%) and Yemen
(2.55%). The latter is the least penetrated country in the region in terms of computer installed
base
The Gulf Cooperation Councils computer installed base grew by 36.05%, the fastest growing
region in the Arab world in 2008, followed by Levant countries. The latter recorded 28.22%
growth in its computer installed base (8,762,653), while the North Africa, Yemen and Sudan
recorded fractionally slower growth at 23.95% and 23.31%.
C O M P U T E R I N S T A L L E D B A S E B Y R E G I O N , 2 00 7 -2 00 8
COUNTRY PC INSTALLED BASE 2008 PC INSTALLED BASE 2007 GROWTH (%)
GCC 9,573,637 7,037,000 36.05%
LEVANT 8,762,653 6,834,000 28.22%
NORTH AFRICA 5,536,896 4,467,000 23.95%
YEMEN & SUDAN 1,885,113 1,528,800 23.31%
TO T A L 25,758,299 19,866,800 29.65%
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
25/88
25
Arab ICT Use Report 2009
IN TERN ET US ER TO PC RATIO
As shown in above table, oil-rich countries like the GCC states as well as Libya performed
better than the others in terms of Internet user-to-PC ratio. For example, there are about 1.07
Internet users per PC in Bahrain compared to about 2.93 Internet users per PC in Egypt.
This data further underscores the widespread use of computers provided by PIACs (public
Internet access centers), libraries and education centers for Internet access in non oil
dependent economies such as Yemen, Sudan, Palestine and Egypt.
It should also be noted that the Egyptian Ministry of Information and Communication
Technology (MICT) has initiated several projects in the past including the "Free Internet" and
the "PC for Every Home." However, based on this data, it appears that these initiatives still fallshort of bringing Egypts Internet user-to-PC ratio on par with those found among the richer
Arab countries.
I N T E R N E T U S E R - T O -P C R A T I O , 2 008
COUNTRY RATIO
EGYPT 2.93PALESTINE 2.83
SUDAN 2.69
YEMEN 2.65
SYRIA 2.4
IRAQ 2.31
TUNISIA 2.29
MOROCCO 2.21
ALGERIA 1.98
JORDAN 1.77
LEBANON 1.77
SAUDI ARABIA 1.67
UAE 1.35
LIBYA 1.32
OMAN 1.3
KUWAIT 1.25
QATAR 1.19
BAHRAIN 1.07
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
26/88
26
Arab ICT Use Report 2009
IN DEPEN DEN T REG ULATORY AUTHORIT IES AN D L IB ERALIZATION
I N D E P E N D E N T R E G U L A T O R Y A U T H O R I T Y & C O M P E T I T I O N
COUNTRY REGULATOR
INDEPENDENT
REGULATORYAUTHORITY
FIXED LINE
SECTOR
MOBILE
PHONESECTOR
INTERNET
SERVICEPROVISION
ALGERIAAutorit de rgulation de la
poste et des
tlcommunications (ARPT)
BAHRAINTelecommunications Regulatory
Authority (TRA)
EGYPTNational Telecommunication
Regulatory Authority (NTRA) x
IRAQ Ministry of Communications
JORDANTelecommunications Regulatory
Commission (TRC)
KUWAIT Ministry of Communications x x
LEBANONTelecommunications Regulatory
Authority x
LIBYA
Libyan Post
Telecommunications and
Information Technology
Company
x x
MOROCCOAgence Nationale de
Rglementation des
Tlcommunications (ANRT)
OMANTelecommunications Regulatory
Authority (TRA) of Oman x
PALESTINEMinistry of Telecom &
Information Technologyx x x
QATAR
Supreme Council for
Information and
Communications Technology
(ictQATAR)
x x
SAUDI
ARABIA
Communication and
Information Technology
Commission x
SUDANNational Telecommunications
Corporation (NTC)
SYRIASyrian Telecommunication
Establishment (STE)x x
TUNISIAMinistry of Communication
Technologies x
UAETelecommunications Regulatory
Authority (TRA)
YEMENMinistry of Telecommunication
& Information Technologyx x
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
27/88
27
Arab ICT Use Report 2009
Independent regulatory authorities are national bodies established to oversee and decide
upon many or all aspects of telecommunications policy in markets that are already
competitive or being prepared for liberalization. They set strategic priorities and create the
regulations needed to implement them, whether the subject is managing numbers and radio
frequencies, licensing new or incumbent (including state-owned) operators, or deciding on
the minimum service, capacity and coverage required of them. They may also set or cap prices
or throw them open to competition. At the end of 2008, 13 of the 18 MENA economies
surveyed for this study possessed independent regulatory bodies. Despite its establishment in
July 2002, Lebanons Telecommunications Regulatory Authority began its operations in
February 2007, following a protracted process to elect a board of commissioners and appoint
a chairman.
Regulatory functions in the five countries that lack an independent telecommunications
regulatory authority are carried out by telecommunication ministries and government-owned
incumbent providers. In Yemen and Palestine, the Ministry of Telecommunications and
Information Technology holds sway over the sector, as does the Ministry of Communication in
Kuwait, while in Libya and Syria, the General Post and Telecommunications Company and the
Syrian Telecommunications Establishment govern their respective telecommunications sector,respectively.
There are strong indications that Kuwait, currently the only Gulf Cooperation Council state
without an independent regulatory authority, will move to establish one before long, given
the fact that the government retains a minority interest in all three of the countrys mobile
phone operators (including newly licensed Kuwait Telecommunications Company) and is the
sole fixed line provider in the in the country through the Ministry of Communications.
All 18 Arab countries have liberalized their Internet services provision sector, one of the first
sectors in most countries to be liberalized. Meanwhile, only Palestine and Qatar remained
monopolies in the mobile phone sector in 2008. However, both awarded second mobilephone licenses in 2007 and 2008, respectively, with the news operators expected to enter the
market in early 2009, thus bringing to a close exclusivity in the mobile phone sector in the
MENA region.
The fixed line sector remains a monopoly in many Arab countries, with fixed line services
usually provided by state-owned incumbent operators. However, seven countries have
introduced competition into their fixed line sectors, with new fixed line providers providing
services either through wireless fixed line technologies or by purchasing wholesale services
through the incumbent providers existing network.
-
8/10/2019 Arab ICT Use Report 2009
28/88
28
Arab ICT Use Report 2009
C O U N T R Y I C T P R O F I L E S :
GULF CORPORATION COUN CIL COUN TRIES
Similar to last year five of the six Gulf Cooperation Council states once again led the MENA
region in the 2008 ICT Use Index, with the UAE taking the top spot on two indicators and the
remaining two were held by Saudi Arabia and Bahrain. The UAE took a commanding lead,
scoring 2.39 on the index, followed by Bahrain (2.18), Qatar (2.12), Saudi Arabia (2.09) and
Kuwait (1.81). With a score of 1.48, Oman placed 6th in the GCC, and 7th in the Arab world
overall. All six countries scored above the 1.00 mark on the ICT Use Index, with the average
score for the region at 2.08 from the 1.70 in 2007. To reiterate, growth is difficult to calculate
for the region and other countries in the Arab world in 2007, given the fact that a number of
indicators for 2006 and 2007 were corrected or adjusted by the service providers, in addition
to major corrections in population figures made by some of the Gulf Cooperation Council
countries in particular.
The Gulf Cooperation Council recorded an average of 134.49% in 2008 an increase of 22.5%
from the 109.78% mobile phone penetration in 2007, with Internet penetration a far second
at 33.83%. Overall computer penetration registered 22.94%, with the lowest penetration
witnessed in the region still recorded in fixed line penetration at 16.93% which was almost
same as the 2007 penetration rate of 16.54%.
I CT P E N E T R A T I O N I N GC C 20 0 8
RANK COUNTRYFIXED LINE
PENETRATION
MOBILE PHONE
PENETRATION
INTERNET
PENETRATION
COMPUTER
PENETRATION
ICTUSE
INDEX
1 UAE 22.35% 137.35% 45.70% 33.73% 2.39
2 Bahrain 19.06% 125.68% 37.68% 35.21% 2.18
3 Qatar 16.95% 125.27% 38.11% 32.06% 2.12
4
Saudi
Arabia 16.34% 142.87% 31.44% 18.84% 2.09
5 Kuwait 15.90% 98.28% 36.97% 29.68% 1.816 Oman 9.10% 106.86% 17.93% 13.81% 1.48
T O T A L 16.93% 134.49% 33.83% 22.94% 2.08
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
29/88
29
Arab ICT Use Report 2009
BA H R A I N:
Bahrain Mobile Operator Market Share , 2007
40.14%
59.86%
Batelco Zain
Bahrain Mobile Operator Market Share , 2008
47.21%
52.79%
Batelco Zain
Source: Madar Research
As of December 2007 TRA has issued 152 licenses to 68 companies. Out of these 68
companies, 16 operators currently provide telecommunications services in Bahrain. Bahrain
ranked second overall on the 2008 Arab ICT Use Index, it has also ranked second among GCC
economies and third for mobile phone penetration among MENA economies, behind United
Arab Emirates and Saudi Arabia. The number of mobile phone subscribers has increased quite
steadily since its inception in 2002. Mobile phone subscriptions outnumber fixed lines, at 6.59
mobile subscriptions for every fixed line.
The countrys two dominant mobile operators, Batelco (Bahrain TelecommunicationsCompany) and Zain (formerly MTC-Vodafone, rebranded in September 2007) saw their total
subscribers reach over 1.4 million in 2008, up 30% from 1.11 million subscribers in 2007. The
countrys mobile phone sector grew at a compound annual growth rate (CAGR) of 22.3% over
the period 2004 to 2008. The countrys former telecom monopoly, Batelco, continues to
dominate the market with some 767,000 subscribers in 2008. However, its market share
showed a decline of 7% in 2008, falling from 59.86% to 52.79%, with Zains share rising to
47.21% from 40.14%. The latters subscriber base grew at a phenomenal rate of 53.1% over
end 2008. In December 2008 mobile penetration in Bahrain was calculated to be 125.68%,
C O U N T R Y I C T P R O F I L E B A H R A I N
INDICATOR 2004 2005 2006 2007 2008
Fixed Line Subscriptions 191,553 193,520 194,196 203,500 220,386Mobile Phone
Subscriptions649,764 767,103 907,433 1,116,000 1,453,000
Batelco 544,696 565,103 674,433 668,000 767,000
Zain (MTC
Vodafone)105,068 202,000 233,000 448,000 686,000
Internet Users 202,500 228,000 268,000 330,000 435,600
Computer Installed Base 145,000 175,000 225,000 295,000 407,100
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
30/88
30
Arab ICT Use Report 2009
which could be seen as one of the highest among the GCC countries. Prepaid mobile phone
subscribers represent 84% of the subscribers at the end of 2008, with 1,220,163 prepaid
subscribers and 232,619 postpaid subscribers.
635,277
756,268
923,702
1,220,163
232,619192,277
151,165131,826
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2005 2006 2007 2008
Prepaid Postpaid
In a move designed to stimulate competition in the kingdom, the countrys
Telecommunications Regulatory Authority (TRA) had invited bids for Bahrains third mobile
phone license in September 2008. Six companies had expressed their interest in competing
for the license. Among the interested bidders on May 2009 TRA selected the Saudi Telecom
Company with a bid capital of Bahraini Dinars 86.69 million (230 million US$), and handed
over its 3rd mobile license to STC, in a step that symbolizes the official closure of the 3rd
mobile operators license auction process. STC soon established STC Bahrain B.S.C (c) to be
the licensed operator for Bahrain.
The countrys regulator is also currently working on a regulatory framework for mobile and
fixed line number portability. Number portability is set to be introduced during Q1, 2009. The
regulator is also seeking services from consultancy firms to design, build and operate a
Broadband quality of service testing platform in order to continuously measure the
broadband services of all Internet licensed providers in Bahrain. These performance
measurements would assist TRA in validating whether the broadband qualities of service
(QoS) data provided by Internet providers are based on international best practices. TRA in
Bahrain is also planning to address the issue of overly high tariffs for mobile roaming within
the Arab Region.
Bahrain perhaps was the first country in the region to liberalize all aspects of telecoms.
Bahrains fixed line sector was liberalized in 2005, when two new service providers were
granted fixed line licenses, to operate alongside Batelco, the incumbent operator. The
countrys fixed line market grew 4.79% in 2007, to register 203,500 subscribers, from 194,196
at end 2006. By the end of 2008, there were 220,386 fixed lines compared to 203,500 in 2007,
indicating fixed line growth of 8.3% due to growth of fixed wireless. Fixed telephony lines
consist of 206,301 PSTN and 14,085 Wireless (only 1,072 in 2007). The resulting penetration
-
8/10/2019 Arab ICT Use Report 2009
31/88
31
Arab ICT Use Report 2009
rate for fixed lines is 19.06%, the second highest rate in the GCC, behind the United Arab
Emirates.
In 2008, Bahrain recorded a 32% rise in Internet users, registering 435,600 users over 2007s
330,000. According to the TRA, from the 114,502 Internet subscribers there were 109,994
broad band Internet subscribers and about 4,508 dial up subscribers. There were 101,961
residential broadband Internet subscribers in Bahrain by end of 2008, and 8,033 business
subscribers. Broadband subscribers accounted for 96%, with the remainder representing
dialup subscribers. These are serviced by 10 Internet service providers, namely, Batelco,
Mena, 2Connect, Etisalcom, Kalaam, Lightspeed, Northstar, Zain, Nuetel and Orbit. The ten
offer four types of Internet services: dialup, wired broadband, wireless broadband and mobile
broadband. Notably, there are 22 licensed Internet service providers in the kingdom, but
many of the licenses acquired (including those for fixed line services, international
telecommunication services and others) remain inactive.
Bahrains computer installed base, meanwhile, grew by 38%, to register 407,100 computers in
2008, up from 295,000 in 2007. This has resulted in a healthy computer penetration rate of
35%.
KUWAIT
C O U N T R Y IC T P R O F I L E K U W A I T
INDICATOR 2004 2005 2006 2007 2008
Fixed Line Subscriptions 496,973 504,806 517,000 517,300 547,111
Mobile Phone
Subscriptions2,109,700 2,277,000 2,529,679 2,773,688 3,382,733
Zain-Kuwait1,262,423 1,331,189 1,461,000 1,576,000 1,769,000
Wataniya 847,277 945,811 1,068,679 1,197,688 1,313,733
Viva _ _ _ _ 300,000
Internet Users 590,000 715,000 870,000 1,050,000 1,272,433
Computer Installed Base 450,000 510,000 600,000 740,300 1,021,614
Source: Madar Research
Kuwait Mobile Operator Market Share , 2007
43.18%
56.82%
Zain Wataniya
Kuwait Mobile Operator Market Share , 2008
8.87%
38.84%
52.29%
Zain Wataniya Viva
Source: Madar Research
-
8/10/2019 Arab ICT Use Report 2009
32/88
32
Arab ICT Use Report 2009
Possessing one of the oldest mobile markets in the Arab world, Kuwaits current subscriber
growth of 21.96% compared to the low 9.65% growth of last year could be attributed to the
introduction of a third GSM mobile network in Kuwait, Viva. With 1,769,000 and 1,313,733
subscribers respectively, the countrys two mobile operators, Zain (rebranded from MTC
Group in September 2007) and Wataniya Telecom, ended 2008 with market shares (52.29%
and 38.84%) much lower than those in their prevailing years of December 2007 (56.82% and
43.18%), 2006 (57.75% and 42.25%) and 2005 (60.27% and 39.74%). As mentioned previously
the decline in the market shares of the countrys two dominant mobile operators maybe
attributed to the newly branded GSM mobile operator, which has the lost 8.87% (300,000
subscribers) market share. The mobile phone subscribers in the country grew at an annual
compounded growth rate (CAGR) of 12.5% from a period of 2004 to 2008. Kuwait ranked fifth
on the current Arab ICT use index behind Saudi Arabia.
Moreover, as indicated by the triple-digit mobile penetration rates of the UAE, Bahrain, Qatar
and Saudi Arabia, market saturation is unlikely to be the root cause of Kuwait inability to
advance. According to analysts, in spite of a third operator Viva, venturing into the Kuwait
telecommunication market, its mobile penetration rate is still below 100%, which is low when
compared to its surrounding GCC countries, especially UAE that has 137% penetration. TheMobile penetration rates in Kuwait is ranked 8th among the Arab countries.
A consortium led by Saudi Telecom won the countrys third mobile phone license in
November 2007 at a cost of US$913 million, beating other bidders that included Emirates
Telecommunications Corporation (Etisalat), Dhow Communications (consortium comprising
Kuwait Cable Vision and Iraq Holding), Batelco Kuwait (consortium comprising Bahrain
Telecommunications Company and Investment Dar), Turkcell, Kuwait Finance House, Global
Investment House and a consortium comprising Noor Financial Investment Company, Petra
Jordanian Mobile Telecommunication Company and the Commercial Bank of Kuwait.
Kuwait Telecommunications Company was established in June 2008, and in August launchedan initial public offering (IPO) open only to Kuwaiti citizens for 50% share of the company.
These shares had received the highest subscription in the history of Kuwait. A total of 915,009
people subscribed to Kuwait Telecommunications Companys VIVA, 843,300,500 shares from
August 24 to September 18, 2008, at a lump sum of KD 88.54 million, covering the value of
shares by 3,339 times. The company capital was set at KD 50 millions for 500 million shares,
50 percent of which is reserved for the founding members; such as the Kuwait Investment
Authority, 6 percent, and the Public Authority for Social Security 6 percent. Other founding
members include Zakat House, Awkaf General Secretariat and Public Authority for the Minors'
Affairs, each of which owns 4 percent of the shares. The mother company, STC, has the lion's
share, 26 percent of the total amount of shares.
In another important development in the Kuwaiti mobile phone sector, Qatars state-owned
telecommunications provider Qtel purchased a 51% stake in Wataniya Telecom previously
held by Kuwait Projects Company (KIPCO) in March 2007. The deal, worth US$3.80 billion, was
touted as the largest private-sector transaction in Kuwaits history, as well as the largest
telecommunications deal in the Arab world.
Kuwait remains the only GCC country without an independent telecommunications regulatory
authority, with the Ministry of Communications taking on a temp role at present. However,
given that the government retains a minority interest in Kuwait Telecommunications
-
8/10/2019 Arab ICT Use Report 2009
33/88
-
8/10/2019 Arab ICT Use Report 2009
34/88
34
Arab ICT Use Report 2009
Oman ranked 7th overall on the 2008 Arab ICT Use Index with a score of 1.48, from 1.23 in
2007. The countrys overall growth was driven by sustained growth in mobile phone
subscriptions, Internet users and computer installed base. Mobile phone subscriptions grew
at a compound annual growth rate (CAGR) of 41.1% over the period 2004 to 2008, while
Internet users grew at a CAGR of 25.18% over the same period and computer installed base
by 26.98%.
Omans Telecommunications Regulatory Authority was established in 2002 to pave the way
for the liberalization of the telecommunications sector. In 2004, it issued a 15-year license for
the provision of mobile phone services to Oman Mobile, a subsidiary of incumbent Oman
Telecommunications Company (Omantel), which migrated its own mobile subscribers to the
new company. The following year, the Omani Qatari Telecommunication Company, 55%-
owned by Qtel (with the balance going to the Omani government and a Danish concern),
received a similar license, launching in March 2006 under the brand name Nawras and
offering 3G services before the year was out.
The countrys mobile phone sector has maintained steady growth since the introduction of
competition in the country, with mobile phone subscriptions rising by 37.52% in 2007,compared to 36.37% in 2006. However Omans mobile phone subscription in 2008 was lower
in growth compared to its previous years at 28.79%. Total subscriptions by end 2008
numbered over 3.2 million, with Oman Mobile retaining its market lead, at 53.08% market
share. However, the mobile phone operator lost considerable market share with the rise of
the second operator Nawras, whose market share rose to 46.92% from 40.68% in 2007.
Nawras subscriber base had only 48.56% growth in 2008 compared to the phenomenal
77.80% growth of 2007, Nawras registered about 493,865 new subscribers in 2008 bringing
the subscribers base grand total to just over 1.5 million subscribers by the end of 2008. Oman
net Mobiles subscriber base didnt elevate much as well in 2008, the subscriber base had only
15.23% growth compared to the 19.03% of 2007.A complete commercial launch of the all new
3.5G network for Oman Mobile was done on March 2009. This new scalable network serviceprovided by Oman Mobile would support the bandwidth hungry services of the future. Almost
89.9% or 2,895,053 mobile users have prepaid subscriptions and only 10% have postpaid
subscriptions.
2,206,493
2,895,053
324,812293,622
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2007 2008
Prepaid Postpaid
-
8/10/2019 Arab ICT Use Report 2009
35/88
35
Arab ICT Use Report 2009
Meanwhile, Oman Mobile also became the very first company in Middle East region to grant
resale rights to firms using its infrastructure. The telecom company has signed contracts with
two new mobile operators Renna and FRiENDi allowing them to resell mobile services to
subscribers across Oman using their own brands and marketing and sales channels. The UAE
based FRiENDi mobile, the first mobile virtual network operator (MVNO) in the Middle East
and the Sultanate's first mobile reseller went live on April 2009 and its rival the fully Omani
owned MVNO operator Renna on May 2009. Both firms are focusing on transforming the
telecommunication industry in Oman by providing value added products and services to its
customers. Oman became the first country in the region to have adopted a Mobile Virtual
Network Operator (MVNO) business model.
Omans overall growth in subscriptions (fourth highest rate among GCC) reflected strongly on
the countrys mobile phone penetration rate, which rose to 106.86%, a rate appreciably
higher than the 87.78% attained by end 2007.
In mid-2006, Nawras and Oman Mobile became the first in the region to implement mobile
number portability (MNP), which enables subscribers to port their mobile number from oneoperator to the other. By end 2007, some 24,000 subscribers had been ported between the
two mobile phone service providers. As one of the Sultanates first 3G implementer, Nawras
also has plans to invest in the latest generation fiber optic backbone and WiMAX wireless
access networks across Oman. In the first two years of its plan, Nawras will expand the
wireless broadband service to five governorates and 14 states.
Omans overall fixed line subscriptions registered a drop in 2007, falling 0.61% from 269,700
in 2006 to 268,085 subscriptions however, during 2008 the fixed line subscription registered a
skimpy growth of 2.28% with 274,178 subscribers, far better than the previous years negative
growth rate. From the 274,178 subscribers there are 220,169 postpaid subscribers and 47,306
prepaid subscribers along with 6,703 payphones. Omantel began developing a Wireless LocalLoop (WLL) network in 2005 to bring fixed-line services to approximately 200 villages in rural
areas where cable connectivity was impractical because of rough terrain or prohibitively high
cost or where the existing fixed-line network was unable to support new broadband
technology. Omans WLL subscriptions by end 2007 numbered 19,950 and are reflected in the
countrys fixed line subscription figure. Meanwhile, Omans fixed line penetration rate also
dropped, falling from 10.22% in 2006 to 9.77% in 2007 and finally to 9.10% in 2008.
Omantel was the sole provider of fixed line services in the country until 2007. Omantel lost its
monopoly in this sector by the end of 2008, when a new fixed-line operator entered the fray.
Nawras Consortium (70 percent owned by Qatar Telecom) won the license to set up Oman's
second fixed-line network. Oman had shortlisted six bidders for the licence. While earlier itnamed a consortium led by Hong Kong operator PCCW-Awaser Oman as the top bidder, the
regulator later dropped this group as it could not meet all the tender conditions. The award to
Nawras ends the monopoly of Omantel as the Sultanate liberalises the sector as part of
efforts to encourage foreign investment to counter falling oil production. The 25 year
renewable license is part of a package that includes a 15 year license for broadband Internet
services, renewable for another 10 years
However, Omantel has been gearing up for the competition. The company has developed
several plans and strategies to maintain its position as the leading provider of integrated
-
8/10/2019 Arab ICT Use Report 2009
36/88
36
Arab ICT Use Report 2009
telecom services in the Sultanate. In August, the company announced a new tariff scheme for
national and international fixed line calls, as well as the upcoming launch of Voice over
Internet Protocol (VoIP)