The broadband market in the Middle East is starting to moveInternet and broadband penetration rates remain low in many countries of the Middle East, access speeds are often relatively slow and tariffs are relatively high compared with other regions in the world but the region is making a strong push towards higher broadband penetration. The young population will be a driver for growth as they grow up with Internet use as the norm. In addition lib...
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The broadband market in the Middle East is starting to moveInternet and broadband penetration rates remain low in many countries of the Middle East, access speeds are often relatively slow and tariffs are relatively high compared with other regions in the world but the region is making a strong push towards higher broadband penetration. The young population will be a driver for growth as they grow up with Internet use as the norm. In addition liberalisation and increased competition are producing a greater variety of services and mediums.
While broadband growth has taken off in the small, oil-rich and developed countries of the Gulf, wide income disparities across the Arab Middle East region as a whole are echoed by wide disparities in Internet and broadband penetration rates. Computer penetration levels are generally low. Qatar, Bahrain and UAE all have high household broadband penetration, particularly amongst nationals. The largest country in the region, Saudi Arabia, has low broadband penetration but it is rising quickly.
ADSL is the prevailing broadband Internet technology in the region. Only in Israel does cable have a significant market share. Services are provided by HOT Cable Systems Media, which is subject to the same broadband universal service obligations as is DSL network operator Bezeq. This has resulted in broadband being available to 99% of all households.
Much is being promised by WiMAX across the Middle East region. In Bahrain services from Zain Bahrain and Mena Telecom, both with country-wide networks, have rapidly gained over 30% market share. It is also having a significant impact in Saudi Arabia and Jordan.
All the GCC, Israeli and Turkish operators offer HSPA mobile broadband services. Saudi Arabia’s second mobile operator, Mobily, has claimed a 70% share of the country’s broadband market.
Fibre to the Home (FttH) is likely to revolutionise the broadband market in the most advanced countries. Both Israel and the UAE will have nationwide fibre networks in the next two years.
One of the reasons for slow Internet and broadband subscriber growth in Arab Middle East countries has been a lack of sufficient content in Arabic for users to need a high-speed broadband connection in their daily lives. There has been too much emphasis on hardware and the latest must-have gizmo and not enough on creativity. This is beginning to change with the increasing digital content produced by the flourishing Direct-to-Home (DTH) satellite TV sector, including entertainment, educational programming, news and sports. At least 60-70% of homes across the Middle East have access to multi-channel TV, much of it free to air DTH satellite. Around 70% of the 400+ channels are privately owned.
A further impetus was gained from the sale of Jordan’s Maktoob to Yahoo. This immediately prompted venture capital funds to take a greater interest in the sector. Advertising provides only a very small revenue for digital media companies. The UAE’s advertisers allot a 3.5% share of their budgets to online advertising compared to a regional average of 1%.
Market HighlightsIsrael
Israel has one of the highest household broadband penetration rates in the world. Market competition is fierce, both between cable and DSL infrastructures and between ISPs. Competition is also fierce between Bezeq’s satellite TV subsidiary YES and cable TV operator HOT. Israel’s very high broadband penetration rate provides great potential for triple play and digital media market developments and competitors are manoeuvring for position.
Bezeq commercially launched an NGN in September 2009. It had 374,000 subscribers connected to the network at end-2009 and 580,000 by early May 2010 (around 25% of Israeli households). Bezeq plans to make the NGN available to approximately 50% of Israeli households by end-2010 and 90% of households by end-2012. The network is ‘fibre to the curb’ and allows for an up to 50MB bandwidth offering.
Jordan
Licensed WiMAX operators are beginning to make inroads into the Jordanian broadband market, with over 17% market share of the small broadband market by late 2009.
Jordan is an important base for regional digital media and Internet companies and seems to be particularly successful in breeding viable start-up companies. Whilst Dubai is home to the regional HQs of more established companies, Jordan’s cheaper operational costs, relatively open economy and pool of talent favour younger companies. The best known of these is the Maktoob Group. In August 2009, the Maktob.com portal, with its news, financial information and social networking services, was bought by Yahoo!, at a purchase price variously reported as being between US$75 and US$85 million. Services have been co-branded as ‘Yahoo! Maktoob’.
Saudi Arabia
The broadband market has been slow to grow in Saudi Arabia. Penetration rates for both fixed lines and ADSL are very low for the level of development, only partly due to large household sizes. This has provided fertile ground for the development of mobile and wireless broadband services, with alternative operator Mobily claiming to have the busiest HSPA network in the world.
Whilst few Middle East media companies are based in Saudi Arabia, most of the larger ones are Saudi owned, including the most watched FTA channel MBC, two out of the three regional satellite pay TV operators, and TV and digital media company Rotana.
UAE
Incumbent UAE telco Etisalat and alternative operator du are vying to offer faster broadband packages over a mixture of ADSL, mobile broadband and FttH in a market that already has one of the highest broadband penetration rates in the Middle East.
Etisalat’s FttH project, known as ‘eLite’, is being completed in phases. The first batch of Abu Dhabi subscribers received last mile FttH access in January 2008. By end-2009 Etisalat claimed to have completed 60% of the network. It expected to make Abu Dhabi “the first capital city in the world with 100% fibre deployment” by 2010 and at end-2009 had completed the roll-out for 85% of Abu Dhabi households. Completion of the entire national network is expected by 2011 at a total cost of AED5 billion.
Etisalat is building the network as a commercial decision, to enable its customers “to enjoy multiple high bandwidth applications such as IPTV and online gaming in an integrated single interface for landline, Internet and television-based services, providing a truly converged digital home experience”.
UAE governments, at both federal and emirate level, have been very interventionist, with programs to encourage computer and Internet use. Government policy has also included encouragement for media, IT and Internet related businesses and Dubai has become a regional centre for the industry. Around 25% of the region’s large DTH satellite TV industry is headquartered in the UAE.
Data in this report is the latest available at the time of preparation and may not be for the current year.
Internet Business Industry in Asia
1. Bahrain
1.1 Overview of the broadband access market in Bahrain
1.1.1 Broadband statistics
1.2 ADSL
1.3 Wireless broadband
1.3.1 WiMAX
1.3.2 Internet via satellite
1.3.3 WiFi
1.4 VoIP
1.5 Digital economy / digital media
1.5.1 Services
1.6 Digital broadcasting
1.6.1 Satellite TV
2. Iran
2.1 Overview of the broadband access market in Iran
2.1.1 Censorship
2.1.2 Broadband and Internet statistics
2.1.3 ISP market
2.2 Broadband subscriber forecasts
2.3 ADSL
2.4 Wireless (fixed) broadband
2.4.1 WiMAX
2.4.2 Internet via satellite (Ka band services)
2.5 Digital economy/digital media
2.5.1 Overview
2.5.2 Services
2.6 Digital broadcasting
2.6.1 Overview of broadcasting market
2.6.2 Satellite TV
3. Iraq
3.1 Overview of the broadband access market in Iraq
3.1.1 Internet statistics
3.2 Broadband and Internet subscriber forecasts
3.3 Wireless broadband
3.3.1 Internet via satellite
3.4 Digital economy/digital media
3.4.1 Overview
4. Israel
4.1 Overview of the broadband access market in Israel
4.1.1 Broadband and Internet statistics
4.2 ADSL and cable networks
4.3 Israel’s ISP market
4.4 Wireless (fixed) broadband
4.4.1 WiFi
4.4.2 WiMAX
4.5 Digital Media / Digital Economy
4.5.1 Overview
4.5.2 Digital broadcasting
5. Jordan
5.1 Overview of the broadband access market in Jordan
5.1.1 Internet and broadband statistics
5.1.2 VoIP and Triple Play
5.2 Broadband subscriber forecasts
5.2.1 Scenario 1 – higher growth
5.2.2 Scenario 2 – lower growth
5.3 ISP market
5.3.1 Orange Internet
5.3.2 Umniah/Batelco Jordan
5.3.3 Cyberia
5.3.4 TE Data
5.4 ADSL
5.5 Wireless (fixed) broadband
5.5.1 WiFi
5.5.2 WiMAX
5.6 Digital economy/digital media
5.6.1 Overview
5.6.2 Maktoob Group
5.6.3 Jabbar Internet Group
5.6.4 Jeeran
5.6.5 Watwet/TootCorp
5.7 Digital broadcasting
5.7.1 Broadcasting market overview
5.7.2 Jordan Media City (JMC)
5.7.3 Jordan Television (JTV)
5.7.4 Rubicon Group
5.8 IPTV
6. Kuwait
6.1 Overview of the broadband access market in Kuwait
6.1.1 Broadband and Internet statistics
6.2 Broadband subscriber forecasts
6.3 ISP market
6.3.1 Overview
6.3.2 Qualitynet
6.3.3 Zaji /KEMS
6.3.4 Fast Telecommunications Company
6.3.5 United Networks
6.4 ADSL
6.5 Wireless broadband
6.5.1 WiMAX
6.5.2 Internet via satellite
6.5.3 Mobile broadband (access)
6.6 VoIP
6.7 Digital economy/digital media
6.7.1 Overview
6.8 Digital broadcasting
6.8.1 Overview of broadcasting market
6.8.2 Orbit Showtime Network (OSN)
7. Lebanon
7.1 Overview of the broadband access market in Lebanon
7.1.1 Internet and broadband statistics
7.2 Broadband subscriber forecasts
7.3 Data service providers
7.3.1 Overview
7.3.2 Cable One (Wigo Lebanon)
7.3.3 Cedarcom
7.3.4 GlobalCom Data Services
7.3.5 Pesco Telcom
7.3.6 Sodetel
7.4 ISP market
7.4.1 IDM (Netlink)
7.4.2 Cyberia
7.4.3 TerraNet
7.4.4 LYNX/Fiberlink Networks
7.5 ADSL
7.6 Cable modems
7.7 Wireless broadband
7.7.1 Local Multipoint Distribution System (LMDS)
7.7.2 WiFi
7.7.3 WiMAX
7.7.4 iBurst
7.7.5 Internet via satellite (Ku band services)
7.8 VoIP
7.9 Triple play
7.10 Digital economy/digital media
7.10.1 Overview
7.10.2 Woopra
7.11 Digital media
7.11.1 Digital broadcasting overview
7.11.2 Broadcasting regulation
7.11.3 Free-to-Air (FTA) and satellite TV
7.11.4 Pay TV
8. Oman
8.1 Overview of the broadband access market in Oman
8.1.1 Internet and broadband statistics
8.2 Broadband subscriber forecasts
8.3 ADSL
8.4 Wireless broadband
8.4.1 WiFi
8.4.2 WiMAX
8.4.3 Mobile broadband
8.5 Digital economy/digital media
8.5.1 Overview
8.5.2 Knowledge Oasis Muscat
8.5.3 Services
8.6 Digital broadcasting
8.6.1 Overview of the broadcasting market
9. Qatar
9.1 Overview of the broadband access market in Qatar
9.1.1 Broadband and Internet statistics
9.2 Broadband forecasts
9.2.1 Scenario 1 – higher growth
9.2.2 Scenario 2 – lower growth
9.3 ADSL
9.4 FttH
9.5 Wireless Broadband
9.5.1 WiFi
9.5.2 WiMAX
9.5.3 Mobile broadband
9.6 Triple play
9.7 VoIP
9.8 Digital economy/digital media
9.8.1 E-government
9.8.2 E-health
9.9 Digital broadcasting
9.9.1 Overview of the broadcasting market
9.9.2 IPTV
9.9.3 Al Jazeera
9.9.4 Qatar Cable Vision
10. Saudi Arabia
10.1 Overview of the broadband access market in Saudi Arabia
10.1.1 Censorship
10.1.2 Broadband statistics
10.2 ISP market
10.3 ADSL
10.4 Broadband powerline (BPL)
10.5 Wireless broadband
10.5.1 WiFi
10.5.2 WiMAX
10.5.3 Mobile broadband
10.5.4 Internet via satellite
10.6 Digital Economy/Digital media
10.6.1 Services
10.6.2 Digital media
10.7 Digital Broadcasting
10.7.1 Overview of broadcasting market
10.7.2 Satellite-based digital Pay TV
11. Syria
11.1 Overview of the broadband access market in Syria
11.1.1 Censorship
11.1.2 Internet and broadband statistics
11.2 Broadband subscriber forecasts
11.3 ISP market
11.3.1 Major ISPs
11.4 Wireless broadband
11.4.1 Mobile broadband
11.5 Digital economy/digital media
11.5.1 Overview
11.5.2 Services
11.6 Digital broadcasting
11.6.1 Overview of the broadcasting market
12. Turkey
12.1 Overview of the broadband access market in Turkey
12.1.1 Internet and broadband statistics
12.2 Broadband subscriber forecasts – 2014; 2019
12.2.1 Scenario 1 – higher broadband subscriber growth
12.2.2 Scenario 2 – lower broadband subscriber growth
12.3 ADSL
12.4 Cable modems
12.5 Fibre-to-the-Home (FttH) networks
12.6 Wireless broadband
12.6.1 WiFi
12.6.2 Mobile broadband
12.6.3 Mobile broadband (Access)
12.7 Digital Media / Digital Economy
12.7.1 Overview
12.7.2 Services
12.7.3 Digital broadcasting
13. United Arab Emirates
13.1 Overview of the broadband access market in UAE
13.1.1 Censorship and site blocking
13.1.2 Dubai Internet City (DIC)
13.2 Broadband Statistics
13.3 Internet access locations
13.4 ISP market
13.5 VoIP
13.6 Fibre to the Home (FttH)
13.7 ADSL
13.8 Cable modems
13.9 Wireless broadband
13.9.1 WiFi
13.9.2 WiMAX
13.9.3 Mobile broadband
13.9.4 Internet via satellite
13.10 Digital Media / Digital Economy
13.10.1 Overview
13.10.2 Services
13.10.3 Smart cities/smart communities
13.10.4 Digital media
13.10.5 Digital broadcasting
14. Yemen
14.1 Overview of the broadband access market in Yemen
14.1.1 Internet and broadband statistics
14.2 Broadband subscriber forecasts
14.3 ADSL
14.4 Digital broadcasting overview
15. Glossary of Abbreviations
Table 1 – Internet users and penetration estimates in Bahrain - 1995 - 2011
Table 2 – Internet subscribers in Bahrain - 1999 - 2009
Table 3 – Broadband subscribers in Bahrain - 2005 - 2009
Table 4 – Broadband subscribers by access method in Bahrain – 2004 - 2009
Table 5 – Dial-up Internet subscribers in Bahrain - 2005 - 2009
Table 6 – Market share of Internet and broadband by access method in Bahrain – 2004 - 2009
Table 7 – Broadband subscribers by access speed in Bahrain – 2007 - 2009
Table 8 – Household fixed broadband penetration rate in Bahrain – 2007 - 2009
Table 9 – Business broadband subscribers by access method in Bahrain – 2004 - 2008
Table 10 – Broadband monthly ARPU in Bahrain – 2007 - 2008
Table 11 – Internet users and penetration estimates in Iran – 1996 - 2011
Table 12 – Internet subscriber estimates in Iran – 1999 - 2010
Table 13 – ADSL subscribers in Iran – 2000 - 2010
Table 14 – Internet user and subscriber estimates in Iraq – 2001 - 2011
Table 15 – Internet users, penetration and household penetration estimates in Israel – 1997 - 2011
Table 16 – Broadband subscribers, annual change and household penetration in Israel – 2001 - 2009
