20.3% of Saudi Arabia’s cellular subscribers report using both Al Jawwal and Mobily networks.

December 11, 2006

A new Arab Advisors Group major survey of cellular users in Saudi Arabia avails deep insights into the usage habits of the Arab World’s largest cellular market by subscriber base and by revenues. The survey revealed that a massive 39.6% of cellular users have more than one line. Of these, over half choose to have the second mobile line from a different network operator. The need for separate business and personal lines is the main reason for having more than one line (53.9% of those with more than one cellular line). Cost savings was a reason for 22.8% of respondents with more than one mobile line. On the media front, newspaper ads, TV ads and word of mouth were cited as the three most effective ways that affected the cellular users choice of operators and plans. Respondents reported MBC as the most watched TV channel followed by MBC2, Al Arabiya and Al Jazeera. 93.9% of households in Saudi Arabia have Satellite TV.

A new major report, “Saudi Arabia Cellular Users Survey 2006” was released by the Arab Advisors Group on December 10, 2006. This survey report can be purchased from the Arab Advisors Group for only US$ 5000 for subscribers to Arab Advisors Strategic Research Services. Non-Subscribers to Arab Advisors Groups Strategic Research Services can order the report for US$ 6600.

The 164-pages report, which has 217 detailed exhibits, provides the results of a major comprehensive survey of cellular subscribers in Saudi Arabia. The major survey probed each household’s telecom and media consumption habits and patterns related to Cellular, Internet, Fixed Telephony, VAS, Handsets, Satellite TV, Terrestrial TV and Radio. The survey’s fieldwork was conducted in October and November 2006. The report provides statistical analysis of the results and insightful detailed cross tabulations. Please contact the Arab Advisors Group to get a copy of the report’s Table of Contents and the survey questions.

“The survey revealed a substantial overlap of subscribers in the market between Al Jawwal and Mobily networks. This may indicate that the actual penetration rate in the country is lower than what the reported numbers of both operators indicate: A good one fifth of individual subscribers are subscribers of both operators, and that over 39% have multiple mobile lines. This trend seems to stem from the ongoing promotions in the Saudi Market that include free credit, no connection fees and lengthy validity periods for prepaid numbers. This means that Saudi Arabia’s cellular penetration rate by Q3 2006 (strictly defined as number of individuals using the mobile service) is possibly around the 60% mark rather than the 74.5% number indicated by the reported subscriber numbers of the two operators. This is certainly good news for all operators as it points to the growth potential of the market.” Jawad Abbassi, Arab Advisors Group’s Founder and General Manager noted.

Arab Advisors Group’s major analytical survey of Saudi Arabia’s main cities’ population was scientifically done. The survey involved face to face interviews with 674 respondents from different households in the Western district (Makkah, Jeddah, Madinah), Riyadh City, Dammam and Dharan, selected randomly in a manner proportionate to the estimated population size of the different areas. Respondents were 15 years old and above, and were cellular service users. This random survey is of the current cellular users in Saudi Arabia, and not the total population of the country. Saudi Arabia’s GSM penetration stood at 60.5% by end of 2005. This survey provides deep insights into the telecom usage patterns in Saudi Arabia. The random survey has a 99% confidence level with a less than 5% margin of error. The survey included 130 detailed questions.

Arab Advisors Group divided the survey questionnaire into main sections. The sections provide a balanced focus on collecting data on the following areas:

Telecommunications
a) General information
b) Communication methods used
c) Cellular subscription
i. Mobile operators and plans
ii. Switching operators and plans
iii. Services used
d) Cellular handsets
e) Cellular data services
i. SMS use
ii. MMS use
iii. Mobile content
iv. 3G services
f) Roaming and international calls
g) Perception of mobile operators
h) Internet use

Media
i) Television
i. FTA Satellite TV
ii. PAY TV
iii. Terrestrial TV
j) Local Radio
k) Movies
l) News updates
m) Media Advertising
n) Media Satisfaction

The Arab Advisors Group’s team of analysts in the region has already produced close to 700 reports on the Arab World’s communications and media markets. The reports can be purchased individually or received through an annual subscription to Arab Advisors Group’s (www.arabadvisors.com) Strategic Research Services (Media and Telecom). To date, Arab Advisors Group has served over 390 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients.