ICT & Media

UAE: Infrastructure Sharing Makes Fixed Broadband Segment More Competitive

  • PYR24099
  • 30 Pages
  • January 2013
  • ICT & Media
Summary
The Emirati telecom market is projected to generate $6.9bn in service revenue in 2012. It is a dynamic market characterized by rapid development and the push to provide end users with the newest technologies and services available. The propensity of young Emirati to use mobile data services will help drive growth in this sector, and an estimated $1.1bn is expected to be created in this segment in 2012.

Key Findings
The Emirati telecom market is projected to generate $6.9bn in service revenue in 2012. It is a dynamic market characterized by rapid development and the push to provide end users with the newest technologies and services available. The propensity of young Emirati to use mobile data services will help drive growth in this sector, and an estimated $1.1bn is expected to be created in this segment in 2012. As the UAE continues to make its transition from copper to a completely fiber-based, fixed-line infrastructure, dial-up Internet service revenue will plummet, with the full disappearance of narrowband from the market anticipated in 2014. Fixed circuit-switched voice will suffer a similar fate, declining at a CAGR of -39.7% over the next five years, although by 2017 we still expect this segment to generate $37m in revenue. The aforementioned developments in the fixed infrastructure will be a boon to broadband Internet and return pay-TV services to growth, with these segments growing at CAGRs of 7.5% and 3.4%, respectively, between 2012 and 2017. The development of local content will be a driving factor, as well. Similar to other maturing AME markets, mobile voice in the UAE will begin a slow decline, although the impact on revenue will be almost imperceptible during the forecast period.

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