GCC telecom report 2013

At the time of writing, the latest data from Zain and Wataniya relate to the end of March 2012 while the latest data published by VIVA relate to end of December 2011.

4.962mn mobile subscribers in Kuwait at the end of December 2011.

11.5% during 2011

Viva, which competes with Zain and Qatar Telecom subsidiary Wataniya, raised 25 million Kuwaiti dinars ($88.57 million) from selling half its shares to Kuwaiti nationals in an IPO in September 2008, launching services later that year.

We are waiting for the final approval of the shareholding structure that the government wants to run. We expect to have this by the end of the year,

Vodafone Qatar does not expect its fixed line services to be fully operational until 2011 or 2012 after delays in receiving approval for the country’s second national operator (SNO) licence that it won in 2008, the company’s chief executive said, as reported by Dow Jones Newswires

Analysing the present scenario of mass migration, the report explains that the number of 3G mobile subscribers will reach 2.4 million by 2012

Strengths of UAE market- With its rapidly evolving ICT infrastructure, the UAE is considered a regional hub for ICT in the Middle East and North Africa - Immense support from the UAE Government, including tax holidays for software companies, the easing of export and import regulations and training programmes are an added advantage- Extending infrastructure, attractive zones and technology parks such as Dubai internet City, Dubai Media City and Knowledge Village- Higher level of mobile penetration than other Middle East countries - The UAE remains ahead among the Arab nations in embracing newer ICT technologies, such as 3G, WiMax and mobile TV

The UAE has been slow to reform its telecom industry – clear evidence of this is that etisalat still accounts for more than 80 per cent of the market - The high cost of PCs and internet access has hindered the potential growth of the internet market- Piracy levels remain high

With the mobile penetration rate in the UAE hovering near 200 per cent - about two devices per resident - growth in the sector is slowing.

post-paid promotions such as the Elite Plan helped the rival company du to add 159,800 mobile customers in the third quarter. The smaller operator has about 37 per cent of the market.

Protecting that revenue stream is becoming increasingly important to Etisalat as it pursues a foreign expansion strategy, recently offering $11bn for a 51 per cent stake in the Kuwaiti operator Zain.

t did not give du the approval to launch the fourth generation services in the UAE, and that du had not yet applied for the licence to provide such services in the UAE

he market for traditional telephony, whether fixed or mobile, is so saturated that it can no longer be a viable exclusive source of growth.

Market liberalization, increased competition and the introduction of new network technolog

As the wave of sector liberalization continues, telecom operators are facing increasing competitive pressure. On one hand, the market for traditional telephony, whether fixed or mobile, is so saturated that it can no longer be a viable exclusive source of growth.

However, greater availability of and demand for digital content, a growing youth market and the increase in prosperity in the region are also significant drivers behind the observed boost in demand for broadband

he number of 3G subscribers in the UAE at the end of this year is expected to be 6.99 million compared to 6.31 million subscribers in GSM (2G). The number of 3G subscribers in the UAE at the end of last year is expected to be 4.31 million compared to 8.36 million subscribers in GSM.

3G technology has helped drive the boom in data services adoption over the past few years, but operator 3G networks are becoming strained due to the frequency and volume of usage by end users

the surge in use of mobile broadband has been attributed to the proliferation of smartphones and smart devices, along with the increasing use of social networking and blogging tools, amongst others.

New growth will come in value-added services," Craven said. "Anything that isn't a basic core service or SMS." One of those new money-making services for UAE providers is mobile TV broadcasting which can stream live feeds of popular programmes to handheld devices configured to enable owners to watch their favourite shows.

The 3G forecast is based on an estimate of 1.52 million by the end of 2009 (equivalent to 14.2 per cent of the total mobile user base).

Based on our forecast for the mobile market as a whole, we envisage that 3G customers will account for around 20 per cent of the mobile market [by] the end of 2014

Fixed telephone customers meanwhile increased 13.3% y/y, from 191,000 to 217,000, whilst fixed broadband customers increased 25.3% y/y from 104,000 to 130,000.

obile data now accounts for 15.5% of the whole of du's mobile revenue, compared to a year ago when it accounted for 9%.

The continuing development of products and services will therefore be crucial in order to maintain its mobile data growth. The operator is aiming to commercially launch LTE services this year, though will enter the market trailing its rival Etisalat, which launched its LTE network in September last year.

The fixed-line market will experience upside pressure from increased competition between Etisalat and du due to the implementation of carrier pre-selection services. However, this will be counterbalanced by increasing fixed to mobile substitution, is expected to intensify with the roll-out of next generation mobile broadband technologies.

A notable new development in the market is the launch of commercial LTE network services by second-ranked du in June 2012. The operator reports the service is capable of speeds of 150Mbps, although existing devices can only support transmission of 100Mbps. The launch follows that of rival Etisalat, which launched LTE services in 2011. du has launched the service using 1,800MHz spectrum, in contrast to the more commonly used 800MHz or 2.6GHz bands.

Q112, TRA reported a sharp fall in the number of dial-up internet subscriptions

Fixed broadband services are well developed with fibre representing over a third of all fixed broadband subscriptions. Both Etisalat and du have deployed FttX networks to connect almost all households. In coming years subscribers can expect faster speeds as over three quarters of fixed home broadband subscriptions are on 8Mb/s or less.Widely accessible Internet access has fostered development of the digital economy, encompassing e-commerce, e-government, e-health and e-learning. The UAE has also taken the initiative in implementing smart cities infrastructure, deploying smart grid technology and launching an ambitious plan to develop Masdar City, a new zero carbon, zero waste city powered entirely by renewable energy sources.Despite widespread availability of satellite TV both Etisalat and du are using their fibre networks to market broadband TV (IPTV) services, with subscriber numbers steadily increasing from a small base. Faster broadband speeds are also supporting nascent web based Video-on-Demand (VoD) platforms.

Second-ranked operator du concluded trials on its 4G LTE network in October 2012; in the same monthEtisalat launched its first 4G LTE Mobile WiFi device. .

October 2012, the regulator, TRA, announced that it was extending the deadline granted to subscribersto register their mobile phones. Originally set to expire on October 16, 2012, the regulator has givenunregistered phone users in the first phase of registrations an additional three months to submit theirdetails.

Competition in the market is limited as there are only two mobile phone operators in the country, with thegovernment owning shares in both of them. In October 2012, the regulator confirmed that there are noplans to for a third operator to launch services. Fixed-line services continue to post single digit growth,although we forecast that this will taper off during the course of our forecast period, while broadband isanother strong growth area.

the size of the UAE population. The new figure is 8 million, compared with the 5.5 million people used previously.

Du said in May it is looking at mobile virtual network operator, or MVNO, opportunities to expand its footprint for the first time outside its home market. Abu Dhabi-based etisalat meanwhile already operates in Saudi Arabia, Egypt and Nigeria amongst other countries.

March amounted to 12.4 million, up from 11 million in the same period a year ago.

I am delighted to note that our strategies have created an abundance of high quality national talent, who are now capable of assuming senior leadership roles within the corporation