Regional telecoms overview: Middle East

Regional telecoms overview: Middle East

The Middle Eastern telecoms market is currently a hotbed of activity on the mobile side, as markets that have been dominated by government owned incumbent operators have opened their doors to competition. Things are set to change further as the fixed market enters the competitive race. Here we provide an overview of industry developments and analysis of the incumbent operators’ performance in this emerging telecoms market.

Table of contents

Executive summary

In a nutshell
Key messages

Market overview

Scope of research
Economic and demographic overview
Liberalisation overview
Key fixed and mobile players

Market analysis

Polarisation of mobile markets
FMS on the increase as mobile competition intensifies
Fixed lines still increasing, though growth has slowed
Regional and international expansion is rife
Broadband driving growth due to low penetration levels
Bundled services entering the fold
VoIP is largely banned in the region

Financial overview

Fixed revenues stall
Total revenues continue to grow
Capex up considerably
Competition gradually beginning to affect profitability
Debt levels almost double on average

Table of figures

Table 1 Summary of key economic and demographic indicators: 2006
Table 2 Status of liberalisation in Middle Eastern countries
Table 3 Summary of key Middle Eastern telecoms players
Figure 1 Mobile growth and penetration
Figure 2 Fixed subscribers versus mobile subscribers: 2007
Figure 3 Change in fixed lines: 2006–07
Table 4 Major international shareholdings of Middle Eastern operators: July 2008
Figure 4 Broadband lines
Figure 5 DSL growth rate in the Middle East: 2006–07
Figure 6 Middle Eastern operators change in fixed revenues: 2006–07
Figure 7 Middle Eastern operators change in total revenues: 2006–07
Figure 8 Middle Eastern operators EBITDA margins
Figure 9 Capex change: 2006–07
Figure 10 Capex as a percentage of revenues
Figure 11 EBIT margins
Figure 12 Net income margins
Figure 13 Cash efficiency
Figure 14 Debt/revenues ratio