MENA Broadband Subscribers To Reach 27 Million By 2014

Informa Telecoms & MediaAccording to Informa Telecoms & Media’s new Middle East & North Africa Broadband report, the MENA region will continue to experience some of the world’s highest growth rates in broadband subscriber numbers.

The report states that the 66 percent growth that the region witnessed in 2008 will be leveling out at around 24.9 percent (compound annual growth rate) by 2014. At that point there should be a total of 27 million high-speed internet subscriptions in the region, up from the 7.1 Million subscriptions in Q1 2009..

The report cites the demand for media services as one of the major bandwidth drivers.

“The prospects for broadband in the MENA region will continue to grow as operators improve infrastructure to make their services more attractive with multi-play offers. In addition media companies will begin to respond with more relevant online content aimed specifically at the region,” said Mohammed Hamza, senior broadband analyst at Informa Telecoms & Media.

“Operators across the region are beginning to invest heavily in getting high-speed, high-capacity and cost effective telecoms networks into the region and the current infrastructure is much more advanced than perhaps they have been given credit for,” added Hamza.

The largest broadband subscription bases in the MENA region are in Saudi Arabia, Egypt, the UAE, Algeria, Morocco and Iran; representing 79 percent of the MENA’s total broadband subscriptions – 3.8 million from a total of 4.8 million.

Eight countries in the region had a household penetration of more than 10 percent at the end of 2008 – four exceeded 60 percent and two were greater than 70 percent, the report said.

However, excluding the top four, the average penetration rate across the region was just 8.7 percent.

[Source: Digital Production Middle East, Arabian Business]

Total Country Connectivity Measure For The Arab World

The annual results of Arab Advisors Group’s Total Country Connectivity Measure (TCCM) reveal substantial –mostly cellular service driven- improvements in overall scores. The Arab broadband Internet markets also registered very positive growth.

The United Arab Emirates is the most connected country in the Arab World according to the Arab Advisors Group’s annual report; Bahrain and Saudi Arabia followed in second and third ranks respectively.

The Arab Advisors Group calculates its Total Country Connectivity Measure (TCCM) by adding the household mainlines penetration, cellular penetration, and Internet users penetration rates in each country. The household mainlines penetration is measured by dividing the residential mainlines by the number of households in each country.

The TCCM shows the extent of connectivity of individuals in a certain country whether via fixed lines, cellular lines and/or Internet. Of course, there will be an overlap since many individuals will be using these three communications technologies at the same time. However, the measure still yields an accurate and informative picture on the level of ICT services penetration in each country.

As previously mentioned the Total Country Connectivity Measure results for 2009 revealed that UAE, Bahrain and Saudi Arabia still dominate the top three spots as the highest adopters of telecommunication services, with values of 321%, 249% and 248% respectively.
The results for the rest of the Arab World came as follows: Qatar (205%), Libya (199%), Kuwait (184%), Oman (170%), Algeria (141%), Jordan (141%), Syria (129%), Egypt (128%), Tunisia (128%), Morocco (127%), Lebanon (125%), Iraq (100%), Palestine (95%), Mauritania (74%), Yemen (55%) and in last place Sudan with a TCCM value of 34%.

“Only four out of the nineteen countries covered in this year’s study have a total country connectivity measure that exceeds a 200%. This indicates a substantial potential for more growth in most Arab markets, especially in the under penetrated Internet markets.” Mr. Andrawes Snobar, Arab Advisors’ Research Manager wrote in the report.

Growth In Tunisian Mobile And Internet Users

TunisiaFigures recently released by the Ministry of Communication Technologies reveal a significant growth of mobile phone and internet users in Tunisia. In June 2008 the two mobile phone operators (Tunisie Telecom and Tunisiana) had a combined 8.12 million mobile phone subscribers up from 7 million twelve months earlier.

At the same point, there were 2.68 million internet users compared to 1.68 million in June 2007. The number of ADSL connections has doubled from 76,000 in 2007 to 153,000 in 2008. 27% of users have 512KB connections, and 22,000 users have a connection equal or superior to 1Mbps.

The number of companies benefiting from WiMAX connections reached 700 at the end of June 2008, and the number of subscribers to data sending through VSAT had also increased to reach 420, notably among enterprises producing software and computer systems and call centres.

# Source: TeleGeography
# Via: Wireless Tunisia

Broadband Subscribers Increase By 48% In The Middle East

The number of broadband subscribers in the Middle East increased by 48 per cent in 2007 compared to 2006, according to a new report published by industry research company RNCOS.

The report, titled ‘Middle East Broadband Forecast to 2010‘, said that ‘the region’s soaring broadband demand has been propelled by the inadequacy of existing broadband infrastructure, and government policies promoting rapid broadband adoption as a tool for economic development’.

Among the report’s other key findings:

– In 2007, Israel dominated the Middle East broadband market having major chunk of the broadband subscribers, followed by Saudi Arabia, Egypt and the UAE.

– Egypt is anticipated to report highest growth in its broadband subscriber base among the Middle Eastern countries at a CAGR of over 83% from 2008 to 2010.

– The total number of 3G subscribers in the Middle East is expected to surpass four million by 2010 end, growing at a CAGR of around 60%.

– Throughout the Middle East region, incumbent and alternative fixed-line operators are rolling out IPTV, helping the operators better maintain their main-line base and gradually increase spend per customer in the face of falling ADSL prices.

Almost One Million Egyptians Have Broadband Internet Access

In a new survey of connectivity among Egyptian urban households, titled ‘Egypt Households Telecoms and Media Survey Report 2008‘, in which the Arab Advisors Group sampled 700 households in urban areas of the country, the results show almost a million Egyptian households have access to broadband connections.

According to official figures from the Ministry of Communications and Information Technology, Egypt had 427,085 ADSL lines by the end of 2007. The Arab Advisors Group estimates that 75% of those are residential ADSL lines, and based on the survey results, 63.4% of Egyptian households share the connection with their neighbours, around 3 other households to be precise, which puts the estimate for households with ADSL connections in Egypt at 956,000 households by end of 2007.

The survey also showed that 81.2% of Egyptian Internet users preferred to browse Arabic language websites, and that Internet cafes remain an important connection point for many Egyptians, with 27.8% responding that they used Internet café services.

E-commerce and online transaction penetration remains very limited though with only 1.3% of respondents saying they have bought products or services or paid bills online.

# Source: ITP