Telecoms Seminar Jawad Abbassi

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  • Arab Telecom Markets: Present

    & Potential

    Jawad Abbassi

    Founder, General Manager

    Enterprise Ireland Seminar

    Dublin, Ireland

    April 16 2013

  • Telecom markets overview

    Smartphones and smartphone applications

    E-commerce

    Entertainment (TV, Social Media and Games)

    Outline

  • Arab cellular lines reached 373.9 million by H1 2012

    *Estimated

    Source: Arab Advisors Group

    99.1%

    144.9%

    115.7%

    78.0%

    132.5%

    139.0%

    81.9%

    174.6%

    100.9%

    115.4%

    184.5%

    77.9%

    173.8%

    194.2%

    76.7%

    59.7%

    118.5%

    217.0%

    53.2%

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

    Algeria*

    Bahrain*

    Egypt*

    Iraq*

    Jordan

    Kuwait

    Lebanon*

    Libya*

    Mauritania*

    Morocco

    Oman

    Palestine*

    Qatar

    Saudi Arabia

    Sudan

    Syria

    Tunisia

    UAE

    Yemen*

    Cellular penetration %

    37,148

    1,915

    95,174

    26,345

    8,368

    5,221

    3,677

    11,325

    3,622

    37,422

    5,118

    3,295

    2,994

    54,500

    26,486

    12,910

    12,729

    12,745

    12,873

    0 20,000 40,000 60,000 80,000 100,000

    Algeria*

    Bahrain*

    Egypt*

    Iraq*

    Jordan

    Kuwait

    Lebanon*

    Libya*

    Mauritania*

    Morocco

    Oman

    Palestine*

    Qatar

    Saudi Arabia

    Sudan

    Syria

    Tunisia

    UAE

    Yemen*

    Cellular lines (000s)

  • 30.2%

    46.0%

    18.7%

    22.0%

    62.9%

    32.3%

    2.3%

    19.8%

    31.6%

    17.5%

    33.3%

    50.7%

    23.6%

    26.5%

    56.6%

    14.7%

    0%20%40%60%80%

    Algeria

    Bahrain

    Egypt

    Jordan

    Kuwait

    Lebanon

    Mauritania

    Morocco

    Oman

    Palestine

    Qatar

    Saudi Arabia

    Syria

    Tunisia

    UAE

    Yemen

    11,306

    608

    15,367

    1,796

    2,364

    1,454

    79

    6,434

    876

    741

    573

    14,218

    5,102

    2,846

    3,324

    3,566

    0 5,000 10,000 15,000 20,000

    Algeria

    Bahrain

    Egypt

    Jordan

    Kuwait

    Lebanon

    Mauritania

    Morocco

    Oman

    Palestine

    Qatar

    Saudi

    Arabia

    Syria

    Tunisia

    UAE

    Yemen

    Arab Internet users by June 2012

    Internet users (000s)

    Note: The Arab Advisors Group estimates Internet users based on an Account Usage Multiplier multiplied by the Internet accounts

    Source: Arab Advisors Group

    Internet users penetration %

  • The Arab fixed broadband market continued its growth during the third quarter of 2012

    *Estimated

    Source: Arab Advisors Group

    5.34%

    12.60%

    2.5%

    4.8%

    11.39%

    8.85%

    2.0%

    3.83%

    4.1%

    9.50%

    7.97%

    1.0%

    0.0%

    16.26%

    0.61%

    0%5%10%15%20%

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    Fixed broadband penetration %

    2,014

    169

    2,085

    305

    428

    399

    649

    107

    173

    175

    2,250

    215

    516

    968.9625

    148

    - 500 1,000 1,500 2,000 2,500

    Algeria*

    Bahrain*

    Egypt*

    Jordan

    Kuwait*

    Lebanon*

    Morocco

    Oman*

    Palestine*

    Qatar

    Saudi Arabia*

    Syria*

    Tunisia*

    UAE*

    Yemen*

    Fixed broadband accounts (000s)

    Accounts as % of population

  • 15 Countries in the Arab world commercially launched FTTH services by mid-November

    2012

    Source: Arab Advisors Group

    Commercially

    launched79%

    Not Available/

    Planned21%

    Iraq

    Jordan

    Libya

    Algeria

    Bahrain

    Egypt

    Kuwait

    Mauritania

    Oman

    Palestine

    Qatar

    Saudi Arabia

    TunisiaUAE

    Yemen

    Lebanon

    Morocco

    Sudan

    Syria

  • Five countries have not yet commercially launched WiMAX services (November 2012)

    Source: Arab Advisors Group

    3

    2

    0

    3

    5

    1 1 1 1 1 1

    0 0

    3

    2

    0

    2

    1

    00

    1

    2

    3

    4

    5

    6

    Algeria

    Bahrain

    Egypt

    Iraq

    Jordan

    Kuwait

    Lebanon

    Libya

    Mauritania

    Morocco

    Oman

    Palestine

    Qatar

    Saudi Arabia

    Sudan

    Syria

    Tunisia

    UAE

    Yemen

  • 4 Countries in the Arab world commercially launched LTE services by October 2012

    Source: Arab Advisors Group

    Commercially

    launched21%

    Not

    Commercially launched yet

    79%

    Iraq

    Jordan

    Libya

    Algeria

    Bahrain

    Egypt

    Kuwait

    Mauritania

    Oman

    Palestine

    Qatar

    Saudi Arabia

    Tunisia

    UAE

    Yemen

    Lebanon

    Morocco

    SudanSyria

  • 39 operators offered 3G/3.5G services in the Arab World by mid-November 2012

    Source: Arab Advisors Group

    39

    14

    Number of operators offering 3G/3.5G

    Number of operators that do not offer 3G/3.5G

    37 16

    Number of operators offering 3G/3.5G

    Number of operators that do not offer 3G/3.5G

    Mid November 2012 November 2011

  • Of the countries that have LTE/3G/3.5G services, 11 had mobile TV services by

    September 2012

    Source: Arab Advisors Group

    3

    2 2 2 2 2

    1 1 1 1 1

    0

    1

    2

    3

    Saudi

    Arabia

    Bahrain

    Egypt

    Kuwait

    Oman

    UAE

    Jordan

    Libya

    Morocco

    Qatar

    Tunisia

    Number of operators offering Mobile TV services

  • The Future is here! At least for mobile operators!

    Internet penetration has increased multifold & Internet access through Mobile devices is likely to take

    precedence.

    Operators pain: Bandwidth hungry devices are stressing networks.

    Data revenues not growing at the same pace of costs.

    Commoditized data access.

    11

  • Smartphones boom in the Arab World: % of total handsets.

    Note: Percentages are calculated from the total handsets

    Source: Arab Advisors Groups Saudi Smartphone Survey 2011, Kuwait Smartphone Survey 2012, UAE Smartphone Survey 2011, Jordan Smartphone Survey 2011, Lebanon Smartphone Survey 2012, Egypt Smartphone Survey 2012

    54.6%51.3%

    43.7%41.6%

    37.1%

    8.4%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Saudi Arabia Kuwait UAE Jordan Lebanon Egypt

  • Smartphone applications annual revenues in Saudi Arabia reached an estimated US$ 45.4

    million in 2012

    Source: Arab Advisors Group

    45,354

    10,107

    6,633

    2,942 2,093

    0

    5,000

    10,000

    15,000

    20,000

    25,000

    30,000

    35,000

    40,000

    45,000

    50,000

    Saudi Arabia UAE Egypt Kuwait Jordan

  • On Smartphones: Social networking is most popular download in UAE, Kuwait, Lebanon & Jordan. Games are most popular in Saudi Arabia

    Note: Percentages are calculated from the respondents who download applications to their smartphones

    Source: Arab Advisors Groups Saudi Smartphone Survey 2011, Jordan Smartphone Survey 2011, Kuwait Smartphone Survey 2012, UAE Smartphone Survey 2011, Lebanon Smartphone Survey 2012

    45%

    70%

    62%

    32%

    67%60%

    43%

    60%

    82%

    61%

    36%

    19%

    96%

    55%

    43%

    33%

    81%

    57%

    34%

    45%

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    Social networking Games Music and audio Business

    Saudi Arabia UAE Kuwait Lebanon Jordan

  • 91.4%

    8.2%

    0.5%

    50.0%46.7%

    3.3%

    90.0%

    8.2%

    1.8%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    English Arabic French

    Jordan KSA UAE

    Smartphone Application users in KSA have a higher preference for Arabic language than in

    UAE and Jordan

    Note: Percentages are calculated from the total respondents who use applications on their smartphones

    Source: Arab Advisors Groups Jordan Smartphone Survey 2011, UAE Smartphone Survey 2011,

    Saudi Smartphone Survey 2011

    15

  • Saudi Arabias annual e-commerce expenditure reached US$ 6.9 billion 2010

    Source: Arab Advisors Groups Saudi Internet users and e-commerce survey 2011, Egypt Internet users and Jordan Internet users and e-commerce survey 2012

    6,858

    1,897

    370

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    7,000

    8,000

    Saudi Egypt Jordan

    e-commerce expenditure (US$ million)

  • 60% of adult Internet users in Saudi Arabia use e-commerce

    Note: Percentages are calculated from total sample size

    Source: Arab Advisors Groups Saudi Arabia Internet users and e-commerce survey 2011, Egypt Internet users and e-commerce survey 2012, Jordan Internet users and e-commerce survey 2012

    60.0%

    22.4%24.4%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    Saudi Arabia Egypt Jordan

  • Annual e-commerce expenditure per e-commerce user in Saudi Arabia, Jordan and

    Egypt

    Source: Arab Advisors Group

    1,433

    719679

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    1,600

    Saudi Jordan Egypt

    Annual e-commerce expenditure per e-commerce user (US$)

  • Saudi e-commerce users: Half use it to pay bills online. A third to buy services.

    Note: Percentages are calculated from the total sample size

    Source: Arab Advisors Groups Saudi Arabia Internet users and e-commerce survey 2011, Egypt Internet users and e-commerce survey 2012, Jordan Internet users and e-commerce survey 2012

    24.0%

    50.1%

    31.0%

    14.8%

    11.4%9.7%

    16.8%

    8.8%

    12.6%

    0%

    20%

    40%

    60%

    Buy products online Pay bills online Pay for services online

    Saudi Arabia Egypt Jordan

  • E-commerce expenditure is growing strongly in Jordan

    Source: Arab Advisors Groups Jordan Internet users and e-commerce survey 2008, Jordan Internet users and e-commerce survey 2010, Jordan Internet users and e-commerce survey 2012

    181192

    370

    0

    50

    100

    150

    200

    250

    300

    350

    400

    2008 2010 2011

    E-commerce expenditure in Jordan (US$ million)

  • Supply creates demand?% of banks offering remote banking services in Saudi Arabia & Qatar

    Source: Arab Advisors Groups Remote Banking Services in Saudi Arabia, Remote Banking Services in the State of Qatar

    83%

    28%

    82%

    35%

    0%

    20%

    40%

    60%

    80%

    100%

    Internet banking Mobile banking

    Saudi Arabia Qatar

  • Free-To-Air (FTA) satellite TV channelsgrowth

    Note: The satellite systems included in the analysis are Arabsat, Nilesat and Noorsat

    Source: Arab Advisors Groups Satellite TV in the Arab World 2012

    100

    155

    200 205

    263

    290

    370

    474487

    538

    642

    0

    100

    200

    300

    400

    500

    600

    700

    Jan 2004

    Jul 2005

    Nov 2005

    April 2006

    Oct 2006

    Jan 2007

    Aug 2007

    Mar 2009

    Apr 2010

    Apr 2011

    Mar 2012

    104 channels added

  • Fully launched FTA satellite TV channelsgrew by 13% in 11 months

    Note: The satellite systems included in the analysis are Arabsat, Nilesat and Noorsat

    Source: Arab Advisors Groups Satellite TV in the Arab World 2012

    244

    344

    428448

    501

    565

    0

    100

    200

    300

    400

    500

    600

    October 2006 August 2007 March 2009 April 2010 April 2011 March 2012

    64 channels added

  • A plethora of choice for the Arab TV viewer

    Note: The satellite systems included in the analysis are Arabsat, Nilesat and Noorsat

    Source: Arab Advisors Groups Satellite TV in the Arab World 2012

    19.8%

    12.7%

    9.9% 9.7% 9.6%8.7% 8.7%

    5.8%4.8%

    3.5%2.7% 2.3%

    0.9% 0.5% 0.2% 0.2%

    0.0%

    5.0%

    10.0%

    15.0%

    20.0%

    25.0%General-Private

    Sector

    General-

    Government

    Sector

    Specialized

    News and Current

    Affairs

    Religious

    Movies and Series

    Promotional

    Music

    Sports

    Interactive

    Children and

    Youth

    Educational

    Business/

    Financial

    Documentary

    General-Mixed

    ownership

    Health, Nutrition

    and Cooking

  • Orbit Showtime Network (OSN) offers the widest base of Pay TV channels

    Note: The satellite pay TV operators included in the analysis are OSN, Al Jazeera Sports+, Abu Dhabi Sports and Al Majd

    Source: Arab Advisors Groups Satellite Pay TV operators in the Arab World 2012

    OSN, 69.9%

    Al Jazeera

    Sports+, 11.2%

    Abu Dhabi

    Sports, 12.6%

    Al Majd, 6.3%

  • Facebook dominates social media use amongst Internet users in Egypt & Jordan

    Note: Percentages are calculated from respondents who socialize through social networking websites

    Source: Arab Advisors Groups Egypt Internet users and e-commerce survey 2012, Jordan Internet users and e-commerce survey 2012

    99.9%

    52.0%

    7.7% 5.9% 4.6% 2.7%

    99.0%

    29.8%

    7.7%10.1%

    2.8% 4.8%

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    Facebook Twitter Hi5 Netlog MySpace Other

    Egypt Jordan

  • Facebook accounts in 17 Arab Countries increased by 50.9% between March 2011 and February 2012, to exceed 36 million

    Source: Facebook Estimates, Arab Advisors Group

    0

    1,000,000

    2,000,000

    3,000,000

    4,000,000

    5,000,000

    6,000,000

    7,000,000

    8,000,000

    9,000,000

    10,000,000

    Facebook accounts by March 2011 Facebook accounts by February 2012

  • The Arabic Massively Multiplayer Online (MMO) games market is growing rapidly

    Source: Arab Advisors Groups Online Games in the Arab World 2012

    40

    857

    10

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    April 2010 November 2011

    Browser-based MMO games Client-based MMO games

  • 64.7% of Arabic MMO games were developed in Europe by November 2011

    Note: Percentages are calculated from a total of 85 BBMMO games available in Arabic

    Source: Arab Advisors Groups Online Games in the Arab World 2012

    Europe

    64.7%

    MENA

    22.4%

    Asia

    11.8%

    America

    1.2%

  • 48.3% of the browser-based MMO games available in Arabic are based on historical or

    fantasy settings

    Note: Percentages are calculated from a total of 85 BBMMO games available in Arabic

    Source: Arab Advisors Groups Online Games in the Arab World 2012

    Historical,

    27.1%

    Fantasy,

    21.2%

    Crime/Mafia,

    16.5%

    Sports, 8.2%

    Sci-Fi/Future,

    8.2%

    Modern

    Warfare, 8.2%

    Other, 10.6%

  • Key takeaways

    A diverse region (Arabic, Urdu, Hindi, English) with solid well established operators

    Mobile broadband boom is enabling a smartphone boom. wifi off-load is becoming a priority.

    E-commerce and m-commerce are poised to grow rapidly especially in middle income and rich countries.

  • See you in Amman in June 2013 at10th Convergence Summit 2013

    500+ executives from all over the region

  • Arab Advisors Group

    Arab Advisors Group provides reliable research, analysis and

    forecasts of Arab communications, media, technology and

    financial markets. www.arabadvisors.com

    For a copy of the presentation, email arabadvisors@arabadvisors.com

    @ArabAdvisors

    www.facebook.com/Arab.Advisors.Group

    www.youtube.com/ArabAdvisors