ICT Media

Iran: Adoption of Broadband and Mobile Data Services Lead the Way for Telecom Sector

  • PYR24091
  • 25 Pages
  • March 2013
  • ICT Media
Summary
The Iranian telecom market is estimated to have generated a total service revenue of $9.9bn in 2012. The majority of this revenue has come from the mobile sector, with voice services adding $6.0bn. However, although voice services are expected to hold the majority of the total revenue, we project a CAGR of only 0.2% for the segment during the forecast period.

Key Findings
Iran's telecom market is estimated to have generated a total service revenue of $9.9bn in 2012. The majority of this revenue has come from the mobile sector, with voice services adding $6.0bn. However, although voice services are expected to hold the majority of the total revenue, we project a CAGR of only 0.2% for the segment during the forecast period. Furthermore, total revenue is expected to grow at a CAGR of 1.9%, resulting in $10.9bn in total service revenue in 2017. Following the launch of 3G services by RighTel in early 2012, we expect the revenue from mobile data services to grow at CAGR of 9.3% during the forecast period. At the same time, the broadband sector revenue is expected to grow at an impressive CAGR of 6.7%. The segment should contribute $1.2bn in 2017, up from $890m in 2012. This growth is even more impressive when considering that broadband is expected to be available to only 5.6% of the population in 2017 . However, the growth of both mobile data services and broadband could be hindered by the economic sanctions currently being imposed on Iran, which could result in delayed upgrading/deployment of infrastructure in the country due to the difficulty faced by operators to find vendors willing to do business in Iran. At the same time, this growth could also be affected by the interventions of the religious and political authorities in Iran, as well as the unpredictable rulings of the government.

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