DUBAI: Mobile phone use in the Arab world surged 70% in 2005, boosted by lower prices due to more competition, a study said yesterday.
The study by Dubai-based Madar Research said mobile phone subscriptions in Arab countries jumped to 87.06mn by the end of 2005 from 51.19mn at end-2004, equivalent to a pan-Arab penetration rate of 28%.
The group attributed the rise to liberalisation and increased competition pushing down prices in the sector.
Arab governments have been phasing out telecom monopolies in recent years. Egypt recently sold a third mobile licence and Saudi Arabia is expected to auction a third mobile licence later this year.
The United Arab Emirates introduced competition this year by licensing a second telecom firm called du to compete with Emirates Telecommunications Corp (Etisalat), which previously had a virtual monopoly in the country.
The study said the fastest growing markets were in Yemen and Sudan, with the lowest growth in more mature markets in the six Gulf states, which have the highest rates of penetration.
Growth in subscriptions in the Gulf was around 38%, while subscriptions in North Africa (excluding Egypt), with the second highest penetration, grew almost 86%.
Growth was 83% in the region grouping Lebanon, Syria, Iraq, Jordan, the Palestinian territories and Egypt.
The study said mobile telephones were replacing unreliable or insufficient fixed line service in many Arab countries.
“Mobile phones have interestingly become a more viable alternative in many Arab countries where fixed telephone service is either unreliable or unable to meet demand,” said Madar’s president, Abdul Kader Kamli, in a statement.
“In such countries the subscription ratio of mobile lines to fixed lines can now reach a high of 10 to one as is the case in Morocco, which is by far higher than the ratio in the industrialised world.”
The study, which covered 18 countries, said Libya had the fastest growth rate in mobile subscription while Bahrain and the UAE had penetration rates comparable to Europe. – Reuters |
