Industry sources believe that revenues from non-voice services are expected to double to 30% by 2016 in the Middle East and North Africa (MENA), up from 15% in 2010.  In an attempt to counter the fall in voice revenues, mobile operators have been shifting their focus to mobile data. Sources claim that mobile broadband will be the leading contributor to the non-voice revenues, with a compounded annual growth rate (CAGR) of 19 percent from 2010 to 2016, while data usage on mobile phones is expected to be the fastest growing segment with a CAGR of 20 percent for the same period. Industry insiders believe that a major contributing factor for the success of mobile data is the adoption of 3G services, which is expected to account 84 percent of all mobile connections by 2016, up from 18 percent in 2010.

Further, with innovations such as facebook messaging and BlackBerry Messenger (BBM) gaining popularity, revenue from messaging services is also expected to be slightly low. Factors such as intense competition leading to price wars, and the use of multiple SIM cards by a single user may cause mobile ARPU to decline in the coming years.

 

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Recognizing the need for optimum connectivity between businesses in the UAE and MENA region, du today announced a partnership with leading KSA operator Saudi Telecom to launch a new Point of Presence (PoP) in the UAE. The PoP is a multiservice node that will enable the delivery of secure and reliable inter-office connectivity, meaning du’s enterprise customers and carrier partners will benefit from seamless data services between the UAE and KSA.

Launching the facility, Farid Faraidooni, Chief Commercial Officer of du, said,: “With this latest PoP, in collaboration with, we can now include KSA in our carrier grade global Virtual Private Network solution for our UAE based business clients as well as providing our Carrier Partners with a One-Stop-Shop solution for transit services into KSA. We are dedicated to providing businesses with reliable and secure data services between their offices in the UAE and across the region, and this new service will mean our business customers and carriers can operate cross-country with increased ease, convenience and peace of mind.”

du’s UAE based business clients can now enjoy a number of benefits including the extension of carrier grade Virtual Private Network (VPN) to their KSA based office, a multiple class of service offering to cater to different office applications and a one-stop-shop for their global VPN solution. In addition, Carrier Partners will benefit from seamless IP Data Services between UAE and KSA, greater reach in respective markets for data service connectivity, and a one-stop-shop offering for services into KSA.

STC General Manager of Marketing, Abdulhameed Al Hamad, stated: “We are pleased to announce the establishment of our latest PoP in the UAE. This is a major milestone in our Saudi Global Management.

Network “SGMN” rollout into major regional economic hubs including the UAE, Bahrain, Qatar, Kuwait, Jordan, India, UK and Singapore, and we look forward to working with du to provide premium data services between offices based in the UAE and here in KSA. SGMN is a global Multi-Protocol Label Switching (MPLS) and available in key hub destinations around the world. As one of the largest regional Internet Protocol (IP-based) networks, it provides services for leading global enterprises from a variety of industry sectors, including financial services, manufacturing, logistics, as well as oil & gas and pharmaceutical industry. SGMN network is based on the latest state-of-art technology and is extremely reliable and diverse”.

“STC has a solid track record of successful cooperation with du and we believe that STC’s strengths within the Kingdom and the region and du’s network in UAE will make this a very exciting and complementary partnership for the overall benefit of our domestic and international customers, “Abdulhameed Al Hamad added.

du’s International Carrier Relations (ICR) strategy is to focus on the interconnection of the GCC regional carrier MPLS network to expand its IP Data Services reach to all major GCC countries and to provide seamless Layer 2 Ethernet VPN and Layer 3 IP MPLS VPN services.

 

Arab World relays on mobile Internet

A survey has revealed that a significant number of Internet users across the Middle East and North Africa are accessing the Internet using their mobile devices and using mobile applications. The survey of over 12,700 internet users across the Middle East and North Africa found that half of all Internet users in the UAE used mobiles to access the Internet, with over 71% of mobile internet users in the region ranking email as their biggest mobile internet activity.

People are increasingly using mobiles as Internet access devices in the Middle East and are starting to access social networks as well as news, sport and other information services using their mobiles. The primary application for mobiles is still email, but over 85% of users have downloaded mobile applications for their devices and the spread of services being accessed is very wide. Social networking, in particular, is a strong and growing trend, with 40% of women who use the mobile Internet doing so to access social networks.

The survey showed some interesting differences in the way men and women in the region use their mobiles. Women were more active on social networking sites using their mobiles (40% of women do, compared to 33% of men) and were more interested in photo & video sharing and information on hobbies, while men were more interested in news and weather information. Women were also more likely to use online games than men.

With a new generation of smart mobile devices coming to the market, more people are expanding the ways in which they access Internet based applications and services. The growing popularity of mobile applications that access internet services will create significant new market opportunities for not only hardware vendors, but also for Internet publishers, service providers and marketing organizations across the region.

47% of Internet users surveyed said they intended to buy a tablet device in the coming quarter, while more of those already using the mobile Internet, 57%, having the same plan. 22% of all Internet users surveyed planned to buy an Apple iPad.

One of the key factors that has been inhibiting uptake of mobile Internet in the MENA region is cost. While 26% of people who choose not to use mobile Internet cite cost as the primary factor, only 5% say that not knowing how to access the Internet is stopping them. With smart phones using high amounts of data, it’s hardly a surprise that something like 41% of users in the GCC have unlimited data packages.

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A report by Middle East business intelligence service MEED has revealed that France Telecom (FT) is proceeding with the purchase of a stake in Iraqi cellco Korek Telecom, after it was chosen as a preferred bidder over South Africa’s MTN.

According to reports, the GSM operator, based in the autonomous Iraqi Kurdistan region, won a nationwide licence in 2007 and has proceeded to branch out from its northern homeland to cover central and southern regions of Iraq. Korek is Iraq’s third largest cellco by subscribers.

The MEED report adds that Korek, with a customer base approaching three million in a market with room for growth, is an attractive asset for the French group, which recently expanded in the Middle East and North African (MENA) region by purchasing a 40% stake in Morocco’s Meditel.

FT is looking to increase its territorial presence further via more acquisitions, with the overall aims of doubling its revenues and reaching 300 million subscribers worldwide. The deal, which is yet to be finalized, would also assist Korek’s further expansion plans with the investment of a global player, whilst also representing a cheaper option for FT than bidding for a new licence in Iraq and building a network from scratch.

Meanwhile, FT has recently established research and development labs in Amman and Cairo to create services and products specific to the Middle East market.

Providing a cautionary note, UAE-based Etisalat previously failed to negotiate a stake purchase in Korek, saying that the Iraqi firm demanded ‘too much for too little’ in talks with the Abu Dhabi operator more than two years ago.

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A Cairo court has reportedly overturned the Egyptian telecoms regulator’s decision to monitor news feeds on mobile phones ahead of elections. The court also canceled another decision by the telecoms regulator requiring satellite broadcast firms to have a special license to provide their services to mobile phones.

According to MENA, quoting the Cairo Administrative Court decision, the State Council Administrative Court has on its Saturday session … canceled the national telecoms regulator’s decision that the content of news feeds sent to mobile phones has to be subjected to monitoring.

MENA added that the court has also canceled the condition that companies and entities desiring to offer news services through mobile phones’ messages to get licenses and approvals from the national telecoms regulator.

The regulators’ decisions were taken in October and were shortly followed by another one preventing satellite broadcast firms from offering live feeds to private TV channels.

Critics have seen the decisions as bound to hinder reporting in the run-up to the parliamentary vote that will take place on Sunday and a 2011 presidential election.

Qtel captures MENA

Qtel continues to reinforce its market position in the Mena region and South East Asia where major operations showed solid performance with the Group announcing strong revenue and profit growth for the nine months ended September 30, 2010.

The revenue growth reveals a 14.4% increase throughout the period. Net profit rose to US$659.28 million, showing an increase year-on-year of 3.7 percent. The company’s combined customer base remains healthy, positioned at 68.9 million. EBITDA performance also strengthened, increasing 15.1% year-on-year. EBITDA margin has also improved, closing the period at 48%.

According to Chairman of the Qtel Group, H E Sheikh Abdullah bin Mohammed bin Saud Al Thani, he is pleased with the consistent and positive progress Qtel has made as a Group. This period’s performance determines the ability to overcome challenges, capitalize on opportunities and deliver meaningful returns. He is also pleased to report solid growth for these first nine months of the period and an unbelievable positive response to our very successful bond issuances.

According to Qtel, it has continued to focus on its core strategy of maintaining its market leadership within the Qatar market, and enhancing its share of market value. The expansion of Qtel’s portfolio of new services and the successful completion of the first phase of a nationwide fibre-to-the-home programme have positioned Qtel to enjoy strong and sustainable returns moving forward. The reason for its growth is the steady increase in the number of subscribers. The customer base of Indosat has grown to 40.4 million till the quarter’s end.

Wataniya is the company that has maintained itself with a good strategic position in Kuwait. Although Kuwait has a lot of competition in the market, Wataniya still stood out from most of the organizations. Wataniya has also extended to Algeria by its Nedjma brand. The customer base of this company is 16.2 million.

Qtel has seen a good consumer-following with its Nawras brand which further strengthened Qtel’s market position. Also, Asiacell has progressed in Iraq. It has grown in revenue and profitability both. Asiacell is known for its strong brand equity and quality of service in its region.

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Arab Mobile Content (AMC) has signed an agreement and will now be distributing Aardvark Records’ mobile audio and video content in the Middle East and North America (MENA) region.

The deal with Aardvark covers full tracks, ringback tones, ring tones and music videos proving just how adept AMC is in converting existing content into a mobile format.

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www.WirelessFederation.com/news: Comviva’s SMS Router has been selected by Egypt’s largest GSM operator Mobinil to enhance SMS traffic delivery across its network. With the help of a new class of message intelligence from SMS Router, Mobinil can optimize delivery, improve handling of high throughput requirements, efficient load share and integrate SMSCs.

Mobinil can hugely improve its message handling capacity as SMS Router will integrate all SMSCs across the network into one virtual SMS processing platform, thus reducing the burden on some SMSCs and exploit latent SMS processing power elsewhere.

35 mobile operators in the MENA region has been given solution by the Comviva and the solution now reaches over 500 million subscribers globally and 130 million subscribers across the Middle East and North Africa.

According to Sabri Amireh, VP, Middle East & North Africa, Comviva, the company is happy to work in partnership with one of the region’s most dynamic operators, Mobinil and also confident of adding value to Mobinil’s services in the Middle East region.

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