This report analyzes and compares cellular rates in the Arab world on both postpaid and prepaid plans. It finds that postpaid connection fees range from $10-60, with peak minute rates from $0.10-0.40 and off-peak from $0.05-0.30. Prepaid connection fees range from $0-15, excluding credit, with peak minute rates from $0.10-0.50 and off-peak from $0.05-0.30. The report also examines factors like GDP per capita and regulatory landscape to understand pricing differences across countries. Billing methods vary, with most operators using postpaid billing and prepaid recharge cards.

1.
Cellular Rates in the Arab World:
A Regional Comparison
Arab Advisors Group
Strategic Research Service
November 2011
Analyst: Noura Abdulhadi
Majd Al Amarin
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2. Cellular Rates in the Arab World: A Regional Comparison
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3. Cellular Rates in the Arab World: A Regional Comparison
Table of Contents
Section I: Introduction .................................................................................. 1
Section II: Executive Summary ..................................................................... 2
Section III: General Comparisons .................................................................5
GDP per Capita ............................................................................................5
Exchange Rates ...........................................................................................7
Tax Rates ...................................................................................................8
Regulatory Landscape ..................................................................................9
Section IV: Regional Cellular Offers and Rates ............................................ 10
Rates and Tariffs ....................................................................................... 13
A. Postpaid Offers ........................................................................................... 14
Postpaid Connection Fees............................................................................ 14
Postpaid Peak and Off-Peak Minute Rates ...................................................... 17
Postpaid Minute Rates and Relative Pricing Status .......................................... 20
Postpaid Average Revenue Per Minute (ARPM): The Case of Morocco and Jordan. 22
Postpaid Peak and Off-Peak Minute Rates (March 2010 vs. September 2011) ..... 23
B. Prepaid Offers ............................................................................................. 26
Prepaid Connection Fees ............................................................................. 26
Prepaid Peak and Off-Peak Minute Rates ....................................................... 30
Prepaid Minute Rates and Relative Pricing Status ............................................ 33
Prepaid Average Revenue Per Minute (ARPM): The Case of Morocco and Jordan .. 35
Prepaid Peak and Off-Peak Minute Rates (March 2010 vs. September 2011) ....... 36
Prepaid Cards’ Validity Periods ..................................................................... 38
Section V: Cellular Billing Methods .............................................................. 40
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4. Cellular Rates in the Arab World: A Regional Comparison
List of Exhibits
Exhibit 1: Regional cellular rates comparison..................................................... 4
Exhibit 2: Regional GDP per capita comparison (2010) ...................................... 5
Exhibit 3: Exchange rates as of October 12, 2011 .............................................. 7
Exhibit 4: Tax rate applied on cellular rates in the Arab World (October 2011).. 8
Exhibit 5: Cellular market status (October 2011) ............................................... 9
Exhibit 6: Postpaid and prepaid plans by country (September 2011) ............... 10
Exhibit 7: Postpaid and prepaid plans by cellular operators (September 2011)11
Exhibit 8: Postpaid average connection fees, GDP per capita and relative pricing
status ......................................................................................................... 14
Exhibit 9: Minimum and maximum postpaid connection fees ........................... 16
Exhibit 10: Postpaid average peak and off-peak minute rates.......................... 18
Exhibit 11: Postpaid average peak minute rates (US$) .................................... 19
Exhibit 12: Postpaid average off-peak minute rates (US$) ............................... 19
Exhibit 13: Postpaid average minute rates (peak and off-peak), GDP per capita
and relative pricing status ......................................................................... 20
Exhibit 14: Morocco’s and Jordan’s simple postpaid average minute rates (peak
and off-peak) and postpaid ARPM .............................................................. 22
Exhibit 15: Postpaid average peak and off-peak minute rates (March 2010 vs.
September 2011) ....................................................................................... 23
Exhibit 16: Prepaid average connection fees .................................................... 26
Exhibit 17: Prepaid average connection fees including credit (US$) ................ 27
Exhibit 18: Prepaid average connection fees excluding credit (US$) ................ 27
Exhibit 19: Prepaid average connection fees (excluding credit), GDP per capita
and relative pricing status ......................................................................... 28
Exhibit 20: Minimum and maximum prepaid connection fees ........................... 29
Exhibit 21: Prepaid average peak and off-peak minute rates ........................... 31
Exhibit 22: Prepaid average peak minute rates (US$) ...................................... 32
Exhibit 23: Prepaid average off-peak minute rates (US$) ................................ 32
Exhibit 24: Prepaid average minute rates (peak and off-peak), GDP per capita
and relative pricing status ......................................................................... 33
Exhibit 25: Morocco’s and Jordan’s simple prepaid average minute rates (peak
and off-peak) and prepaid ARPM ............................................................... 35
Exhibit 26: Prepaid average peak and off-peak minute rates (March 2010 vs.
September 2011) ....................................................................................... 36
Exhibit 27: Prepaid recharge cards’ validity and grace periods ........................ 39
Exhibit 28: Split of operators according to billing methods .............................. 40
Exhibit 29: Billing methods adopted by cellular operators ............................... 41
Exhibit 30: Postpaid and prepaid billing methods used by cellular operators ... 42
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5.
This report has been delivered to clients as part of the subscription to the Arab Advisors Group Strategic Research Service
to be used exclusively by its employees