MENA Telecoms market: strategies and opportunities 2008-2013

SUMMARY

“The MENA region's telecoms industry will become more complex during the next five years.” Daniel Jones, Analyst

The introduction of MVNOs and operators' use of WiMAX technology will complicate the dynamics of the telecoms industry in the MENA region. Both trends will lead to the introduction of many new operations, but the region's largest players will continue to focus on expanding their market presence across the region.

The strong economic climate will lead to increasing affordability of services across the region. Coupled with increasing competition, this will enable continued strong growth in adoption of mobile services in less-wealthy countries. In more-wealthy markets, mobile penetration is slowing and broadband markets will become the focus. DSL and wireless technologies, including WiMAX and HSPA, will compete to dominate the broadband markets.

MENA telecoms market: strategies and opportunities 2008- 2013 examines the key issues affecting the fixed, mobile and broadband markets in the Middle East and North Africa, including ongoing market liberalisation, the impact of WiMAX, prospects for MVNOs and the strategies of pan-regional operators. The report provides case studies, market data and forecasts for four of the region's largest markets: Egypt, Morocco, Saudi Arabia and the United Arab Emirates, as well as for the region as a whole.

MENA telecoms market: strategies and opportunities 2008- 2013 answers your key questions:

• Who are the key players in the region and what are their strategies?
• What are the most interesting forthcoming opportunities in the region?
• Which countries are preparing to allow MVNO market entry and what factors will affect their success?
• What are the prospects for the fast-growing broadband market?
• Can MNOs facing slowing growth improve performance without looking to foreign expansion?

TABLE OF CONTENTS

• 4. Document map - Executive summary
• 5. The MENA region's telecoms industry will become more complex during the next five years
• 6. Document map - Introduction and scope
• 7. This report provides strategic analysis, case studies and forecasts for the MENA region
• 8. Document map - Market review
• 9. Market review: Investment opportunities
• 10. MENA mobile markets have attracted heavy investment following liberalisation, and are growing rapidly
• 11. New MNO licence awards have become scarce, but other investment opportunities remain
• 12. A climate of political or regulatory uncertainty surrounds the major investment opportunities
• 13. Broadband presents the largest opportunity in markets where mobile penetration is reaching saturation
• 14. Market review: WiMAX
• 15. WiMAX licensing offers an effective means of entering the broadband market in some countries in the MENA region
• 16. WiMAX enables MNOs to develop triple-play offers
• 17. Limited fixed-line competition improves the business case for WiMAX
• 18. Market review: MVNOs
• 19. Some regulators in the region are considering MVNO licence awards as a means of increasing competition
• 20. Oman could become the first country in the region in which MVNOs launch operations
• 21. The market conditions for MVNOs are more attractive in the MENA region than in Europe
• 22. Market review: Pan-regional operators
• 23. A small number of operators are becoming increasingly dominant in the market
• 24. Zain's launch of the 'One Network' puts it in a strong position in the region
• 25. Etisalat is investing in expansion throughout the MENA region and beyond
• 26. After a slow start, Saudi Telecom may begin to make an impact outside its home market
• 27. Qtel's strategy focuses on investments in mobile, broadband and corporate managed services
• 28. Document map - Country case studies
• 29. Country case studies: Egypt
• 30. The Egyptian mobile market will grow strongly, but operators must avoid intense price competition
• 31. A focus on reducing the cost of mobile ownership will attract new subscribers without sacrificing ARPU
• 32. Operators must pay attention to the small, but lucrative, contract subscriber base
• 33. Uncertainties about the competitive environment will affect the outlook for the broadband market
• 34. Several factors will affect the development of the Egyptian broadband market
• 35. Country case studies: Morocco
• 36. A third GSM licence will alter the competitive dynamics of the mobile market in Morocco
• 37. Limited-mobility wireless services are proving popular
• 38. Intense competition between DSL and wireless access will drive the development of the broadband market
• 39. Country case studies: Saudi Arabia
• 40. Zain has become the third major MNO to enter the mobile market in Saudi Arabia
• 41. The further increase in competition will have a small but negative impact on ARPU
• 42. Mobily has rolled out WiMAX-based broadband services, following its unsuccessful bid for a fixed licence
• 43. Three fixed-line market entrants are expected to launch services soon in Saudi Arabia
• 44. Country case studies: United Arab Emirates
• 45. Penetration in the UAE mobile market is reaching very high levels
• 46. du has secured a significant share of the mobile market in a short amount of time
• 47. The broadband market in the UAE is more developed than that of many other countries in the MENA region
• 48. Further market liberalisation in the UAE is unlikely in the short term
• 49. Document map - Author, copyright and key to acronyms
• 50. Author and acknowledgements
• 51. Copyright and disclaimer
• 52. Key to acronyms
• 53. Document map - List of figures and tables
• 54. List of figures and tables [1]
• 55. List of figures and tables [2]
• 56. Document map - About Analysys reports and services
• 57. About Analysys Mason
• 58. Reports from Analysys Mason
• 59. Market intelligence services from Analysys Mason
• 60. Custom Research from Analysys Mason

List of figures and tables

• Figure 1: Mobile penetration in the MENA region, 2008- 2013
• Figure 2: Broadband site penetration in the MENA region, 2008- 2013
• Figure 3: Countries considered in this report
• Figure 4: Mobile penetration by subscription type in the MENA region, 2004- 2013
• Figure 5: Broadband site penetration in the MENA region, 2004- 2013
• Figure 6: Broadband site penetration in selected European and MENA region countries, June 2008
• Figure 7: Financial key performance indicators for Zain, 2005- 2007
• Figure 8: Financial key performance indicators for Etisalat, 2005- 2007
• Figure 9: Financial key performance indicators for Saudi Telecom, 2005- 2007
• Figure 10: Financial key performance indicators for Qtel, 2005- 2007
• Figure 11: Mobile penetration by subscription type in Egypt, 2004- 2013
• Figure 12: Monthly mobile ARPU by subscription type in Egypt, 2007- 2013
• Figure 13: Mobile contract revenue and ARPU in Egypt, 2007- 2013
• Figure 14: Broadband site penetration in Egypt, 2007- 2013
• Figure 15: Mobile penetration and ARPU in Morocco, 2004- 2013
• Figure 16: Fixed-line and broadband site penetration in Morocco, 2004- 2013
• Figure 17: Mobile penetration by subscription type in Saudi Arabia, 2004- 2013
• Figure 18: Monthly mobile ARPU by subscription type in Saudi Arabia, 2004- 2013
• Figure 19: Financial key performance indicators for Mobily, 2005- 2007
• Figure 20: Mobile market share of subscribers in Saudi Arabia, 2005- 2007
• Figure 21: Key events in the development of the fixed-line and broadband markets in Saudi Arabia, 2004- 2009
• Figure 22: Mobile penetration by subscription type in the UAE, 2004- 2013
• Figure 23: Financial key performance indicators for du, 2006- 1H 2008
• Figure 24: Mobile market share of subscribers in the UAE, 2006- 1H 2008
• Figure 25: Broadband site penetration in the UAE, 2004- 2013
• Figure 26: Key events in the development of the telecoms market in the UAE, 2006- 2009

• Table 1: Forthcoming investment opportunities in MENA region telecoms markets
• Table 2: WiMAX status in selected MENA region countries
• Table 3: MVNO licensing in selected MENA region countries
• Table 4: Summary of selected operators' holdings in MNOs in the MENA region
• Table 5: Selected broadband service offerings in Morocco