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Middle East telecom operators facing maturing competitive conditions

Telecom liberalization means more pan-global competition and better focus on customer satisfactions says Delta Partners

Middle East telecom operators face an ever more competitive environment according to the analyst company Delta Partners.

According to a new whitepaper from the company, 2008 will see new opportunities for operators as both new licence for fixed line and mobile drive growth, but will also introduce more competition from within the region and from without.

Javier Álvarez, partner at Delta Partners commented: "As telecom players look to the future, there are several opportunities and challenges that they would need to address in order to stay ahead of competition. In this report, we have focused on six key areas that we believe are important in order to sustain business growth and more importantly stay ahead of the competition."

The key focus areas pointed up in the white paper, titled "Identifying today's key industry dynamics in the Middle East and Africa", include the increase in aggressive competition on a pan-global level, both as operators in the region look to new markets and as existing global players take a stake in the region; the challenges of making mergers and acquisitions work properly; more uptake of outsourcing and service contracts; and the possible opportunities that broadband roll out will bring.

The report also highlights the need for operators to become much more customer focused, making a switch from trying to acquire new customers in existing markets to focusing on customer retention; and also on how to cater to potential customers in low income markets and how operational models can be tailored to attract customers in the sub-$5 monthly ARPU bracket.

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