This presentation discusses the impact of LTE and smart devices from the perspective of the GCC region. It provides an introduction to Omantel and an overview of telecom development and LTE deployments in GCC countries. Global and GCC perspectives are given on the smart phone and LTE devices market. Device bundled offers in GCC countries like Oman are examined. The future outlook anticipates continued growth in LTE subscriptions and devices after initial network rollouts, with the Middle East expected to lead in LTE adoption.

1. Impact of LTE and Smart Devices
GCC Region Perspective
Presentation by
Safdar Imam
Sr. Costing Specialist Omantel

2. 20 Minutes Talking Points
• Introduction
– Omantel
– GCC
• Telecoms Development in the Region
• LTE Deployments in GCC countries
• Smart phone and LTE Devices market – Global
and GCC perspectives
• Device bundled offers in GCC and Oman
• Future outlook after LTE Rollouts

3. OMANTEL – Introduction
A unique Story
1 OMR = 2 EURO

4. GCC – Introduction
A jewel in the Arab crown
 Gulf Cooperation Council
(GCC), formed in 1981
to create economic
cooperation among six
homogeneous nations of
Persian Gulf
 GCC countries are
among the richest in the
world on per capita
basis
 The Region has the
highest ARPU levels in
the world with triple
digit teledensity Area 2,673,108 sq km
 “No other Region in the Population 42,100,000
world has grown as fast Per Capita GDP (PPP) US $ 45,184
as GCC” (IIF)

5. Technology Development in GCC
 GCC markets have been more Deployment of Telecom/ Broadband Technologies in GCC - by Countries/ Operators
aggressive in deployment of Fixed Technologies Mobile Technologies
Fixed 2G 3G
new technologies. Wireless (GPRS/ (UMTS/
Country Operators PSTN DSL CDMA WiMAX FTTX VSAT EDGE) HSPA) LTE iDEN
 Govts have been promoting Batelco
Viva
broadband strategies; e‐edu. e‐ Bahrain Zain
Mena Telecom
gov., e‐biz. Nuetel
Omantel
 Fondness for smart devices and Oman Nawras
MVNO's
online community growing fast STC
Mobily
to played important role in Saudi Arabia
Zain KSA
Bravo
stimulating telecom Atheeb
Alharbi Telecom
deployment MOC
Zain
 With 60% pop. comprising Watanya
Viva
youth, Social media, video Kuwait
Zajil KEMS
Gulfnet
sharing portals fast adopted as Fast Telco
Quality Net
a lifestyle. Qtel
Qatar
Vodafone Qatar
 Growing demand for high‐ UAE
Etisalat
Du
speed Internet and online
services have pushed Operator
into rollout race. Source: ITU Report – ICT adoption and Prospects in the
Arab Region 2012; GSA LTE Report 8 May 2012

6. Mobile Broadband and LTE
Deployment in GCC
• GCC Operators tend to be the early adopters of Wireless NGAN technologies
• Bahrain and UAE launched 3G services as early as 2003 followed by Kuwait, Qatar,
Saudi Arabia in 2006 and Oman in 2007.
• Kuwait, Saudi Arabia and UAE are currently the only Arab countries to have
launched LTE networks. Oman and Qatar have had trials and may launch in the
next few months
Deployment of Wireless Broadband
Access Networks in GCC
WiMAX LTE
Country 3G Launch Launch Launch
Bahrain Dec. 2003 Sep. 2007 Jan. 2012
Oman Dec. 2007 May. 2010
Saudi Arabia Jun. 2006 Sep. 2008 Sep. 2011
Kuwait Apr. 2006 Jul. 2006 Dec. 2011 Source: ITU Report –
Qatar Jun. 2006 Sep. 2007* ICT adoption in the
UAE Dec. 2003 Sep. 2007 Sep. 2011 Arab Region 2012
* Discontinued in July 2011

7. Surging worldwide sale of smartphone expected
to cross 650 m in 2012
• Smartphones sales grew
58% in 2011.
• According to Gartner,
worldwide smartphone
sales in 2011 reached
472 million units and
accounted for 31 % of all
mobile devices sales
• Expectations for 2012
are for the overall
market to grow by about
7 %, while smartphone
growth is expected to be
around 39 % with > 650
million units of sales.

8. 347 LTE Devices including 64 Smartphones
Launched by March 2012

9. LTE Devices – Global Status
• 2011 witnessed over 8.2 Million LTE enabled device
shipments with revenues of over 2 Billion USD
• Motorola and Huawei lead the LTE PC cards/Embedded
Device/Router shipments with a combined market share of
over 50 % in Q1'2012
• Motorola, Samsung and HTC lead the LTE‐enabled
smartphone shipments with a combined market share of
over 60 % in Q1'2012
• Driven by the reduction in production lifecycle times and
aggressive marketing strategies, LTE device shipments are
expected to reach 30 Million by the end of 2012.
• US will continue leading the market with a projected
market share of 65 %
Source: Mind Digiworld Report Feb 2012; “The LTE Device
Marketplace: Ecosystem, Roadmap, Key Trends, Shipments/Market
Share, and Global Forecast by Vendor 2012 – 2016”

10. Omantel’s Devices Promotion Strategy
• Omantel makes attractive offers for Smartphone customers
bundling Data usage.
• Vendor’s partnership is an integral part of the strategy

11. LTE Device Bundles in KSA, UAE, Kuwait & Bahrain
• STC offers free 4G modem + SIM Card + monthly 10 GB with subscription to
QUICKnet pro 1 package
• Zain limited period offer – 4G modem for 499 SR with one month free unlimited
subscription
• Etisalat UAE provides LTE modem with monthly data plans with contract length of
6‐12 months.
• VIVA Kuwait offers 42.2 Mbps USB device @ KD 40 per month with unlimited data
(FUP applies).
• VIVA Bahrain; “4G LTE will be offered with new broadband devices and packages”

12. Future Outlook
• LTE subscriptions around the world may exceed 40 million by the end of
2012 – a fourfold increase over the 9 million LTE subscriptions in 2011.
• The wide range of expected LTE smartphone launches in 2012 from major
mobile manufacturers are the main reason behind the increase in LTE
subscriptions.
• 87 million 4G devices are expected to be sold in 2012. With 294% year‐on‐
year increase, 4G subscriptions are really going to take off in 2012.
• Global TD‐LTE subscription numbers will grow to one million subscriptions
by the end of 2012 and 139 million subscriptions by 2017. China, India,
and Japan would account for 92 million TD‐LTE subscriptions (66% of total)
• Driven by three early deployments (STC, Zain, Mobily), Saudi Arabia will
lead LTE subscriptions in the GCC region with over 0.39 Million subscribers
by Q4’2012, representing a YoY growth of 457 % over 2011.
Source: ABI Research posted on 20 May 2012

13. Future Outlook
• Middle Eastern market will primarily be dominated by the 1800 MHz FDD
and 2.3 GHz TDD deployments.
• Re‐farming of the sub‐1 GHz spectrum will be critical LTE’s success in both
the Middle East and Africa.
• E‐services/ killer applications shall be the key to LTE penetration
• Cyber‐security shall remain an inhibitor for the adoption of online services
in the region.
• 52 and 75 per cent of Internet users in UAE and Saudi Arabia, respectively,
consider e‐commerce transactions to be unsafe*
• Operators would be keen to offer free LTE trials and mixed 3G/HSPA/LTE
bundled price plans to increase early consumer adoption.
• By 2015, it is estimated that the Middle East will account for 7.49 Million
LTE subscriptions representing global market shares of 1.8 %.
Source: Regional Research report, Arab Advisors Group

14. Take Away
Proactive Positivity
• Complement and partner with
– Network Equipment vendors
– Device Manufacturers
• LTE Network Performance Advantage – First ensure and then
capitalize
• Owning the network is not enough; own the UE to improve
customer experience
• Deliver on LTE Promise to create value for customers and
shareholders; Formula 1 experience, Premium contents
• Our NG customer out there in the market; “Arab youth” loves
Eagles for speed thrill and higher elegance
• LTE must deliver on the performance promise; killer apps.
• Business Value potential = Revenue growth > Cost cutting.

15. Omantel Tower Muscat
Thank You
Q&A
safdar.syed@omantel.om