Middle East & North Africa Telecommunications

AMMAN — Jordan’s mobile telecom market is the most competitive among the Arab countries, according to a report issued by Madar Research.

“Driven by remarkable growth, mobile phone subscriptions in the Arab world increased beyond all expectations from 51.2 million at the end of 2004 to 87 million at the end of 2005,” the report said.

“The number of mobile phone subscriptions in the Arab world has grown by a whopping 70 per cent in 2005, underlining a strong consumer demand coupled by increased liberalisation and competition in Arab telecom markets,” the Madar Research added.

The report covered all Arab countries except Somalia, Mauritania, Djibouti and Comoros.

Madar Research indicated that, in average, pan-Arab penetration rate is equivalent to 28 subscriptions per 100 of population, ranging in individual countries from a low of just over five per cent penetration to a high that exceeds 100 per cent.

In another study on regional mobile communication carried out earlier this year by BIS Sharpnel, a leading industry analyst, forecaster and partner of Analytic, the cellular penetration rate in Jordan rose from 28 per cent or 1.6 million subscriptions at the end of 2004, to 53 per cent or three million subscriptions at the end of 2005.

Despite the efforts exerted throughout the past few years to fully liberalise the telecommunication markets, none of the Arab MENA countries have yet reached the level of liberalisation of Jordan and Bahrain. According to the BIS Sharpnel study, the markets in Lebanon, Libya and Iran are particularly crippled and struggling with high service tariffs or entry barriers.

Among other findings of the Madar Research report, Libya achieved a remarkable three-digit growth in mobile subscription — the highest in the Arab world in 2005. Meanwhile, Bahrain maintained its position heading the list of world’s top countries in mobile penetration.

A regional classification by the Madar Research report showed that the highest growth rate in mobile subscription was recorded in the least information and communication technology-savvy countries of Yemen and Sudan, while the lowest growth was seen in the more mature markets of the Gulf Cooperation Council (GCC) region.

The GCC witnessed growth of around 38 per cent, while North Africa, excluding Egypt, made almost 86 per cent, followed by nearly 83 per cent in the Levant, which groups Lebanon, Syria, Iraq, Jordan, Palestine and Egypt.

In terms of penetration rates, the GCC leads by far the Arab world, followed by North Africa and the Levant, respectively.

“Thanks to a telecom liberalisation drive which gained momentum in many Arab countries over the past couple of years and the resulting competitive environment and the drop in prices, mobile telephony has become accessible to a wider base of Arab consumers,” said Madar Research President and Research Director Abdul Kader Kamli.

Madar Research Group is a Dubai Media City-based company established in June 2002 to conduct primary and secondary business to business research on the Knowledge Economy in the Middle East.