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UAE fixed broadband revenue to top $1bn in 2015

Fixed broadband revenue to rise by 30% by 2015 as UAE moves to an all fibre network

The value of the UAE's fixed broadband sector is expected to rise by 30% by 2015.
The value of the UAE's fixed broadband sector is expected to rise by 30% by 2015.

Revenue from fixed broadband services in the UAE is expected to rise by more than 30% in the next five years as the country moves to an all fibre network and broadband penetration rises, according to a report from Pyramid Research.

Fixed broadband in the UAE is expected to generate $1.01 billion in 2015, a 30% increase from the $695 million that Pyramid Research predicts will be generated in 2010.

A key change over the next five years is the switch from copper to fibre fixed-line infrastructure that is currently underway and due to be completed by 2011, the US-based research company said.

Hussam Barhoush, senior analyst at Pyramid Research, said that as broadband penetration rates increase, it will become critical for operators to provide value added services in order to raise their current monthly ARPUs. He points to pay-TV as a value added service that is likely to see significant growth.

Du, the smaller and newer of the UAE's two operators, initially took the lead with fibre deployment, although Etisalat has since caught up, according to Barhoush.

"Abu Dhabi, was the first capital in the world to be all fibre, as Etisalat connected the city to the 'elife' FTTH network," Barhoush said.

Etisalat plans to have upgraded its whole fixed network to fibre by 2011.