Jawad Abbassi Ccas Symposium

Arab Telecom and Media Markets

Jawad AbbassiFounder, General Manager

Center for Contemporary Arab Studies

2010 Annual SymposiumAmman – March 22, 2010

Telecoms Landscape in the Arab World

An Overview of the Arab World’s Broadcast Industry.

Some Primary Research Findings from Arab Advisors’ Major Surveys

Outline

Telecoms Landscape in the Arab World

Regulatory framework in the Arab World by March 2010

Country Fixed market Cellular market Internet marketAlgeria Monopoly Competitive Competitive

Bahrain Competitive Duopoly Competitive

Egypt Monopoly Competitive Competitive

Iraq Competitive Competitive Competitive

Jordan Competitive Competitive Competitive

Kuwait Monopoly Competitive Competitive

Lebanon Monopoly Duopoly Competitive

Libya Monopoly Duopoly Monopoly

Mauritania Duopoly Competitive Competitive

Morocco Competitive Competitive Competitive

Notes:

• Bahrain: Viva Bahrain, the third cellular operator in Bahrain, is launched its services on March 3, 2010.• Egypt: The NTRA is planning to award a second fixed license but no specific date was yet set by the regulator.• Libya: - On February 16, 2009 the General Telecommunication Authority of Libya (GTA) announced its intention to

grant one license for mobile and fixed services to a single privately owned operator to offer cellular and fixed services in Libya, the license is expected to be awarded before the end of the first half of 2010.- GTA granted Aljeel Aljadid an integrated license, where it is able to provide all fixed, cellular (MVNO) and Internet services. Aljeel Aljadid is not operational yet. - Aljeel Aljadid and Libya Telecom and Technology (LTT) were granted MVNO licenses but they did not launch their services yet.

Regulatory framework in the Arab World by March 2010 (cont.)

Country Fixed market Cellular market Internet market

Oman Monopoly Competitive Monopoly

Palestine Monopoly Competitive Competitive

Qatar Monopoly Duopoly Monopoly

Saudi Arabia Duopoly Competitive Competitive

Sudan Duopoly Competitive Competitive

Syria Monopoly BOT Duopoly Competitive

Tunisia Monopoly Duopoly Competitive

UAE Duopoly Duopoly Duopoly

Yemen Monopoly Competitive Duopoly

Notes:

• Oman: The competitive landscape includes “Class 2” mobile reseller licensees (MVNOs).• Palestine: The two mobile operators, Jawwal and Wataniya, face unlicensed competition from four Israeli operators.• Qatar: Vodafone Qatar won the second fixed license but ictQATAR did not issue the license yet. Vodafone Qatar does

not expect fixed line services to be fully operational until 2011 or 2012.• Saudi Arabia: Etihad Atheeb (GO) launched fixed voice services over its WiMAX network in November 2009.• Tunisia: Tunisie Orange Telecom has successfully test-launched its 2G/3G mobile telecommunications network on

February 4, 2010. Orange Tunisie is expected to launch during the first half of 2010.

A Regional comparison - September 2009/end of 2009

Source: Arab Advisors Group

CountryFixed voice

penetration %Cellular

penetration %Internet users penetration %

Algeria 10.8%* 83.1%* 10.6%*Bahrain 20.9% 134.9% 41.2%*Egypt 12.4% 71.7% 7.9%**Iraq 3.7%** 69.1%*Jordan 8.4%** 101.2%* 17.3%*Kuwait 15.3%* 107.5%Lebanon 21.5% 57.2% 30.3%**Libya 17.0%* 146.9%**Mauritania 2.3%Morocco 11.2%** 80.3%** 18.8%**Oman 9.4%** 129.0% 13.2%**Palestine 9.3%** 46.5%* 11.1%Qatar 17.5%** 151.1%** 25.6%**Saudi Arabia 16.7% 165.5% 33.5%**Sudan 34.9%*Syria 18.9% 44.5% 17.6%Tunisia 12.3%** 93.5%** 15.9%**UAE 31.9%** 205.5%** 51.3%**Yemen 5.9%** 36.1%** 9.9%**

* Estimated.** These figures are for end of 2009Lebanon: The fixed voice penetration is by end of November 2009.Bahrain: The fixed voice penetration includes Batelco and Mena Telecom only.Iraq: - The fixed voice penetration rate was reported by the Iraqi Ministry of Communications. - The cellular penetration rate includes the national operators only.Sudan: Cellular subscribers by H1 2009.Mauritania: Figures are given by the regulator. These figures are not final and might be subject to change. They will be final with the release of the annual report

Fixed lines and penetration rates by September/end of 2009

Notes: - Jordan, Morocco, Palestine, Oman, Tunisia, Qatar, UAE and Yemen’s PSTN figures are by end of 2009.- Lebanon’s PSTN figures are by end of November 2009.- Bahrain’s PSTN figures include Batelco and Mena Telecom only.


PSTN penetration %

3,800

228

9,631

501

535

850

1,082

74

3,516

279

372

281

4,169

3,775

1,259

1,476

1,338

0 2,000 4,000 6,000 8,000 10,000

Algeria

Bahrain

Egypt

J ordan

Kuwait

Lebanon

Libya

Mauritania

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Syria

Tunisia

UAE

Yemen

10.8%

20.9%

12.4%

8.4%

15.3%

21.5%

17.0%

2.3%

11.2%

9.4%

9.3%

17.5%

16.7%

18.9%

12.3%

32.0%

5.9%

0%10%20%30%40%

Algeria

Bahrain

Egypt

J ordan

Kuwait

Lebanon

Libya

Mauritania

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Syria

Tunisia

UAE

Yemen

PSTN subscribers (000s)

Cellular lines and penetration rates by September/end of 2009

Note: Lebanon, Libya, Morocco, Qatar, Tunisia, UAE and Yemen’s cellular figures are by end of 2009.Iraq’s cellular figures include the national operators only.Source: Arab Advisors Group

Cellular penetration %

83.1%

134.9%

71.7%

69.1%

101.2%

107.5%

60.0%

146.9%

80.3%

129.0%

46.5%

151.5%

165.5%

34.9%

44.5%

93.5%

205.5%

36.1%

0%50%100%150%200%250%

Algeria

Bahrain

Egypt

Iraq

J ordan

Kuwait

Lebanon

Libya

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Sudan

Syria

Tunisia

UAE

Yemen

29,237

1,472

55,465

20,130

6,020

3,754

2,373

9,433

25,311

3,779

1,849

2,472

41,286

13,933

8,900

9,754

9,499

8,225

0 15,000 30,000 45,000 60,000

Algeria

Bahrain

Egypt

Iraq

J ordan

Kuwait

Lebanon

Libya

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Sudan

Syria

Tunisia

UAE

Yemen

Cellular subscribers (000s)

34.4 million Internet users in the Arab World by end of 2008 of whom some

20-22 million are broadband users

3,175

294

4,818

1,669

960

1,245

945

366

48

3,787

321

433

348

7,800

530

2,896

1,125

2,085

1,538

0 2,000 4,000 6,000 8,000 10,000

Algeria

Bahrain

Egypt

I raq

Jordan

Kuwait

Lebanon

Libya

Mauritania

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Sudan

Syria

Tunisia

UAE

Yemen

9.1%

27.4%

6.3%

5.8%

16.4%

36.2%

24.2%

5.8%

1.5%

12.1%

11.2%

11.1%

22.3%

31.8%

1.4%

14.7%

10.9%

45.4%

6.9%

0%10%20%30%40%50%

Algeria

Bahrain

Egypt

I raq

J ordan

Kuwait

Lebanon

Libya

Mauritania

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Sudan

Syria

Tunisia

UAE

Yemen

Internet Users (000s)Internet Users Penetration %

Note: the bar charts portray the figures per country by end of 2008.


10.6%

41.2%

7.5%

17.3%

30.3%

18.8%

12.8%

11.1%

24.4%

33.5%

17.6%

14.1%

51.3%

9.9%

0%10%20%30%40%50%60%

Algeria

Bahrain

Egypt

J ordan

Lebanon

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Syria

Tunisia

UAE

Yemen

Arab Internet users by September/end of 2009

Internet users (000s)Internet users penetration %

Note: Algeria, Bahrain, Jordan, Palestine, Saudi Arabia and Syria’s Internet users figures are by September 2009.


3,738

450

6,146

1,028

1200

5,935

391

442

417

9,800

3,520

1,656

2,371

2,261

0 2,000 4,000 6,000 8,000 10,000

Algeria

Bahrain

Egypt

J ordan

Lebanon

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Syria

Tunisia

UAE

Yemen

10.6%

41.2%

7.9%

17.3%

30.3%

18.8%

13.2%

11.1%

25.6%

39.3%

17.6%

15.9%

51.3%

9.9%

0%10%20%30%40%50%60%

Algeria

Bahrain

Egypt

J ordan

Lebanon

Morocco

Oman

Palestine

Qatar

Saudi Arabia

Syria

Tunisia

UAE

Yemen

Broadband accounts by end of 2009: Wireless broadband services increased

broadband adoption

Note: Saudi Arabia and Syria’s broadband accounts are by September 2009.

* Includes wireless broadband accounts where data is available (WiMAX, 3.5G/HSPA, EVDO).Source: Arab Advisors Group

Broadband accounts (000s)

1,027

675

92

52

41

368*

1,950*

1,182*

130

212*

0 500 1,000 1,500 2,000 2,500

Saudi Arabia

Morocco

Egypt

UAE

Tunisia

J ordan

Qatar

Palestine

Yemen

Oman

Broadband accounts penetration %

14.6%

8.0%

7.8%

3.7%

3.6%

3.5%

2.3%

1.4%

1.3%

0.2%

0%10%20%30%40%50%

UAE

Qatar

Saudi Arabia

Morocco

Jordan

Tunisia

Palestine

Oman

Egypt

Yemen

37.2%

34.5%

32.0% 28.5%

28.0%

26.7%

23.6% 19.2%

16.8%

13.5%

12.3%

10.5% 8.3%

7.8%

7.2%

6.6% 4.1%

2.9%

2.6%

2.5%

2.4%

1.9%

1.1%

0.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Den

mark

No

rway

Ko

rea

Un

ited K

ing

do

m

Fran

ce

Un

ited S

tates

Japan

Italy

Hu

ng

ary

Greece

UA

E

Po

land

Bah

rain

Tu

rkey

Mexico

Qatar

Sau

di A

rabia

Ku

wait

Leb

ano

n

Jord

an

Mo

rocco

Palestin

e

Om

an

Eg

ypt

Broadband Internet in the Arab World by end of 2008: UAE, Bahrain and Qatar lead the broadband adoption

Source: Arab Advisors Group and OECD

broadband lines as % of total population

1

32

FTTH milestone in Abu Dhabi: Etisalat plans to achieve a 100% FTTH reach in the city

• By year-end 2009, Etisalat passed 692,000 households in the UAE with FTTH.

• Etisalat’s plan is to connect over 1 million households by the year 2011.

• Etisalat’s broadband residential customers reached a total of 501,290 subscribers by end of Q3 2009.

• du offers Fiber to the Home (FTTH) network to its customers living in most new real estate developments in new Dubai areas.

An Overview of the Arab World’s Broadcast Industry

100

155

200 205

263290

370

474

0

50

100

150

200

250

300

350

400

450

500

Jan-04 Jul-05 Nov-05 Apr-06 Oct-06 Jan-07 Aug-07 Mar-09

Satellite Free-to-Air channels growth

Note: The satellite systems included in the analysis are Arabsat, Nilesat and Noorsat.Source: Arab Advisors Group’s “Satellite TV in the Arab World 2009” report

104 channels added

Fully launched and operational FTA satellite channels in October 2006,

August 2007 and March 2009

Note: The satellite systems included in the analysis are Arabsat, Nilesat and Noorsat.Source: Arab Advisors Group’s “Satellite TV in the Arab World 2009” report

244

344

428

0

50

100

150

200

250

300

350

400

450

October 2006 August 2007 March 2009

84 channels added

Other, 6.8%

Arabic/ English, 3.3%

English, 7.2%

Arabic, 82.7%

FTA Sat TV operational channels’ languages

Source: Arab Advisors Group’s “Satellite TV in the Arab World 2009” report

Terrestrial channels growth

Source: Arab Advisors Group’s “Terrestrial TV in the Arab World 2009” report

122129

98

0

20

40

60

80

100

120

140

August 2006 May 2008 April 2009

7 channels added

243

307338

0

100

200

300

400

J anuary 2007 February 2008 J uly 2009

Radio stations growth

31 radio stations added

Source: Arab Advisors Group’s “FM Radio in the Arab World 2009” report

The radio landscape transformed into almost a clean cut between private and

state owned stations

Source: Arab Advisors Group, March 2008

Private radio stations, 49%

Sate-owned radio stations,

51%

Some Primary Research Findings from Arab Advisors’

Major Media Surveys

48%

61%

34%

51%44%

53% 50% 51%

0%

20%

40%

60%

80%

Saudi Arabia UAE Egypt J ordan

Reading newspapers offline Reading newspapers online

Internet users have adopted online newspapers with zeal.

Note: percentages are calculated from the total sample sizes of 355 for Saudi Arabia, 300 for UAE, 555 for Jordan and 3,348 for Egypt.

Source: Arab Advisors Group’s Survey of Internet Use and Online Advertising Consumption and Effectiveness in Egypt (September 2009), Survey of Internet Use and Online Advertising Consumption and Effectiveness in Jordan (August 2009), Survey of Internet Use and Online Advertising Consumption and Effectiveness in Saudi Arabia and the UAE (April 2009)

69.7% of Internet users in Egypt use the Internet as a source for getting daily

and global news

Note: Percentages are calculated from the total sample size (3,348)Source: A survey of Internet Use and Online Advertising Consumption and Effectiveness in Egypt , September 2009

Source for getting daily and global news

No answer/I don't know 0.2%

TV19.7%

Friends and family1.7%

Newspapers6.6%

Radio0.6%

Magazines and books0.2%

Internet69.7%

I don't search for such information

1.0%

Other 0.1%

38.5% of Internet users in the UAE and Saudi Arabia use the Internet as a

source for getting daily and global news

Note: Percentages are calculated from the total sample size (655)Source: Internet Use and Online Advertising Consumption and Effectiveness in Saudi Arabia and the UAE April 2009


Other 0.6%


1.7%

Internet38.5%


Radio2.3% Newspapers

16.8%


TV37.7%

No answer/I don't know 0.2%

44.1% of Internet users in Jordan use the Internet as a source for getting

daily and global news

Source: A survey of Internet Use and Online Advertising Consumption and Effectiveness in Jordan, August 2009Note: Percentages are calculated from the total sample size (555)


TV40.0%


Newspapers9.5%

Radio1.6%


Internet44.1%


0.9%

Other 0.2%

34.2%

20.0%

6.5%

62.9%

39.3%

20.0%

1.8%

15.3%

0% 20% 40% 60% 80% 100%

Less than 1 hour

1 to 3 hours perday

3 to 6 hours perday

More than 6 hoursper day

Ramadan Regular months

TV viewing habits during Ramadan in UAE

Note: Percentages are calculated from the 275 respondents whose TV watching habits change during Ramadan

Source: Arab Advisors Group’s UAE Media Survey of Internet Users 2009

96.2%

43.2%

5.0%

4.0%

2.3%

2.1%

1.1%

1.1%

0.6%

0.6%

0.6%

0.5%

0.3%

0% 20% 40% 60% 80% 100% 120%

Google

Yahoo

araby.com

altavista.com

ask.com

Other

alltheweb.com

ayna.com

infoseek.com

myway.com

I don't use search engines

excite.com

tucows.com

Google is the most used search engine among the UAE and Saudi’s

respondents

Note: Percentages are calculated from the total sample size of 655

Source: Internet Use and Online Advertising Consumption and Effectiveness in Saudi Arabia and the UAE

Search engines used

Arab Advisors Group

Arab Advisors Group provides reliable research, analysis andforecasts of Arab communications, media, technology andfinancial markets markets.

This presentation draws from close to 1,800 reportspublished by Arab Advisors Group’s team. Proudly servingclose to 560 regional and global clients.

www.arabadvisors.comTel: 962.6.5828849Fax: 962.6.5828809

[email protected]

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