The Intertwined story of the Arab Telecom boom

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By: Jawad Abbassi Founder, GM Arab Advisors Group

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The Intertwined story of the Arab Telecom boom

  1. 1. The intertwined story of the Arab telecom boom & Arab Advisors Group Jawad Abbassi Founder, General Manager Amman Tech Tuesdays: Anniversary Edition Amman May 3, 2011
  2. 2. Outline <ul><li>An overview of the Arab Telecom and media boom over the past years. </li></ul><ul><li>Some primary research findings from Arab Advisors Group’s surveys. </li></ul><ul><li>How Arab Advisors positioned itself to provide a needed service profitably. </li></ul>
  3. 3. Monopoly cellular markets disappeared Source: Arab Advisors Group, March 2011 2011 2005 Cellular regulatory framework Competitive Monopoly Duopoly
  4. 4. About half of the Arab countries still have a monopoly fixed market Source: Arab Advisors Group, March 2011 2011 2005 Fixed regulatory framework Competitive Monopoly Duopoly
  5. 5. Most of the Arab countries have competitive Internet markets Source: Arab Advisors Group, March 2011 2011 2005 Internet regulatory framework Competitive Monopoly Duopoly
  6. 6. The cellular boom has created millions of “citizen journalists” for social media and news stations. So PR is no more relations with the press only. Note: Figures by June 2010, Yemen cellular subscribers are by July 2010 Source: Arab Advisors Group Cellular penetration % Cellular lines (000s)
  7. 7. Arab broadband accounts by June 2010 Notes: - Algeria, Kuwait and Saudi Arabia’s figures are estimated Source: Arab Advisors Group Fixed ADSL / Broadband lines (000s) Broadband lines % out of total population
  8. 8. Fixed broadband Internet: UAE, Bahrain and Qatar lead the broadband adoption in the Arab World <ul><li>Note: </li></ul><ul><li>The figures are for end of June 2010. </li></ul><ul><li>Source: Arab Advisors Group and OECD </li></ul>Fixed Broadband lines % of total population 1 2 3
  9. 9. Out of the 19 Arab countries, 15 countries commercially launched WiMAX Algeria Bahrain Iraq Jordan Kuwait Lebanon Libya Mauritania Morocco Saudi Arabia Tunisia UAE Oman Qatar Yemen Syria Egypt Palestine Sudan Source: Arab Advisors Group, March 2011
  10. 10. Five more operators deployed 3G networks in the Arab World since December 2009 Oman Qatar Yemen Syria Egypt Palestine Source: Arab Advisors Group’s 3G/3.5G Cellular Services in the Arab World and operators December 2009 March 2011 Operators that offer 3G/3.5G services Operators that do not offer 3G/3.5G services
  11. 11. Continuous growth in Free-To-Air satellite TV channels 53 channels added * A rough estimate by Arab Advisors Group. Note: The satellite systems included in the analysis are Arabsat, Nilesat and Noorsat Source: Arab Advisors Group ’ s Satellite TV in the Arab World 2010, and Arab Advisors Group
  12. 12. Consolidation at last in the Pay TV market: OSN with most channels. Source: Pay TV providers Consolidation of Pay TV providers Number of Pay TV channels
  13. 13. Social media use has become a primary channel for online social interaction Note: Percentages are calculated from the total sample size of KSA, Jordan and Egypt. % of Internet users who use social media to interact with others online Source: Arab Advisors Group’s Saudi Arabia Internet users and e-commerce Survey 2011, Jordan Internet users and e-commerce Survey 2010, Egypt Internet users and e-commerce Survey 2010
  14. 14. 65.3% of Internet users in Saudi Arabia play games online Note: percentages are calculated from the total sample size of 1,154 respondents Source: Arab Advisors Group’s Saudi Arabia Internet and e-commerce Users Survey 2011 Whether respondents play games online
  15. 15. UAE’s e-commerce users’ penetration stood at 25.1% while Lebanon’s stood at 1.6% of total population % of e-commerce users out of total population Source: Arab Advisors Group ’ s Bahrain Cellular Users Survey 2008, Tunisia Internet users and e-commerce survey 2008, Oman Internet users and e-commerce survey 2009, Jordan Internet users and e-commerce survey 2008, Kuwait Cellular Users Survey, Lebanon Cellular Users Survey, Saudi Arabia Internet Users and e commerce survey, UAE Internet Users and e-commerce survey.
  16. 16. Jordan’s e-commerce status <ul><li>15.4% of Internet users in Jordan are e-commerce users. The Arab Advisors Group conservatively estimates the number of Jordan Internet users who use e-commerce to be more than 181,000 which is around 3.0% of the total population in Jordan. </li></ul><ul><li>These e-commerce users have spent an estimated US$ 192 million in e-commerce transactions (buying products, paying for services and paying bills online) in the past 12 months. </li></ul><ul><li>Source: Jordan Internet users and e-commerce survey 2010 </li></ul>
  17. 17. Saudi Arabia is the region’s largest B2C e-commerce market Total amount spent in 12 months (US$ Millions) Source: Arab Advisors Group ’ s Bahrain Cellular Users Survey 2008, Tunisia Internet users and e-commerce survey 2008, Oman Internet users and e-commerce survey 2009, Jordan Internet users and e-commerce survey 2008, Kuwait Cellular Users Survey, Lebanon Cellular Users Survey, Saudi Arabia Internet Users and e commerce survey, UAE Internet Users and e-commerce survey. * E-commerce expenditure during 2007 ** E-commerce expenditure during 2008
  18. 18. Arab Advisors Group: $22,000 into $5 million <ul><li>Started Arab Advisors in 2001 after 3 years in research industry in the US. </li></ul><ul><li>Arab World liberalization around the dot.com bust. Global players shied away. We positioned Arab Advisors to provide reliable research in a rapidly liberalizing area. Any industry with multiple players, vendors and investor interest, requires a lot of research. Client base grew as Arab markets liberalized one after another. </li></ul><ul><li>Sold 55% of Arab Advisors to AJIB in Sept 2005. Company profitable from year one with dividends also from year one. </li></ul><ul><li>Team grew from 4 to 26. Client base of more than 650 clients worldwide. </li></ul><ul><li>Land of opportunity is wherever you have a good Internet connection with smart well-educated people. </li></ul>
  19. 19. An invitation to join us at Arab Advisors Group's 8th Media and Telecoms Convergence Conference 2011 <ul><li>Meet the Arab World's Telecoms and Media leaders and decision makers, and receive complimentary comprehensive Arab Advisors Group's reports. </li></ul><ul><ul><li>June 6 & 7 2011 - Four Seasons Hotel. </li></ul></ul><ul><ul><li>Contact the Arab Advisors Group for full details: </li></ul></ul><ul><ul><li>www.arabadvisors.com/Convergence/schedule.htm </li></ul></ul><ul><ul><li>50% discount to all startups at Amman Tech Tuesdays </li></ul></ul><ul><li>www.arabadvisors.com </li></ul><ul><li>Tel: 962.6.5828849 </li></ul><ul><li>Fax : 962.6.5828809 </li></ul><ul><li>arabadvisors @arabadvisors.com </li></ul>

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