Telecoms Seminar Jawad Abbassi

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


Internet users penetration %

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

*Estimated


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


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)


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


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


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


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 Group’s 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


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 Group’s 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 Group’s Jordan Smartphone Survey 2011, UAE Smartphone Survey 2011,

Saudi Smartphone Survey 2011

15

Saudi Arabia’s annual e-commerce expenditure reached US$ 6.9 billion 2010

Source: Arab Advisors Group’s 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 Group’s 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


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 Group’s 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 Group’s 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 Group’s 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 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 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 channels’grew by 13% in 11 months



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



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 Group’s 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 Group’s 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 Group’s 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


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


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 [email protected]

@ArabAdvisors

www.facebook.com/Arab.Advisors.Group

www.youtube.com/ArabAdvisors

Documents

Telecoms Seminar Jawad Abbassi