Is there enough competition in ME teleco market?

Levels of competitiveness in telecoms sector falling in Middle East warns analyst company

Tags: Arab Advisors Group
  • E-Mail
Is there enough competition in ME teleco market? Competitiveness in the Middle East telecoms sector has fallen.
By Staff Writer Published  October 20, 2010

The level of competition in the UAE's telecoms sector has fallen over the past year, according to a 2010 index released by the Arab Advisors Group.

It's Cellular Competition Intensity Index 2010 ranked Jordan as the most competitive Arab telecoms market.

Compared to Jordan's competitiveness score of more than 80 percent, the UAE scored 45.4 percent and was one market to see its score fall during the past 12 months.

Results from around the region

According to the Arab Advisors Group index, only three telecom markets in the Arab world are less competitive than the UAE - Syria, Libya and Lebanon.

In the latest index, Saudi Arabia came in second, followed by Palestine.

The Arab Advisors Group said it has devised the Cellular Competition Intensity Index to rate and assess the intensity level of competition in the Arab World's cellular markets.

The index takes into account the number of operators, packages and services available in each of the 19 countries covered by the Arab Advisors Group.

UAE leads in other telecoms categories

Expanding the focus to include landlines and internet usage however, the UAE leads the pack.

According to another additional survey from the Arab Advisors Group, the Total Country Connectivity Measure (TCCM) study, the UAE (352%), Saudi Arabia (286%) and Qatar (254%) have leading levels of fixed, cellular and internet penetration in the Arab world. 

Samer Abbas, a senior research analyst at Arab Advisors Group commented: "By looking at the TCCM scores, it is noticeable that high scores are correlated with high income levels.

"GCC countries dominate the TCCM, as income levels and GDP per capita in these countries is significantly higher than the rest of the Arab countries," Abbas concluded.

The TCCM is calculated by adding the household mainline penetration, cellular penetration, and Internet user penetration rates in each country, to show the extent of connectivity of individuals in a given country.

The results of the annual study showed improvements overall, with cellular services particularly showing strong growth, along with strong growth in internet connections.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code