Who’s who in Arab Cellular rates? The highest, the lowest and the fairest!

November 16, 2006

A new report from Arab Advisors Group analyzes the cellular tariffs for 42 cellular operators in nineteen Arab countries. Operators in Lebanon have the highest average cost of prepaid cellular minutes in the Arab World while those in Mauritania have the highest average cost of postpaid cellular minutes. UAE and Yemen offer the lowest average cellular minute costs for prepaid and postpaid respectively.

New research and analysis from the Arab Advisors Group reveals that Sudan and Lebanon have the most expensive average postpaid cellular connection fees in the Arab World while Qatar and Sudan have the highest prepaid average connection fees excluding initial balances built into the purchased lines. Lebanon’s cellular operators charge the highest prepaid average minute rates in the region, while Mauritania’s operators charge the highest postpaid average minute rate. The UAE and Yemen lie on the other extreme, having the region’s most affordable average prepaid minute rate and average postpaid minute rate respectively.

The Arab Advisors Group has analyzed the cellular rates in the following nineteen Arab countries: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, UAE, and Yemen. In order to allow for comparisons, the report focuses on the average cellular rates of these countries’ fourty two operational cellular providers. In calculating the average cellular rates, the Arab Advisors Group relied on the simple average for all relevant packages and offers in each market. The average peak and off peak minute rates in the report include the tariffs for on net and off net traffic. The report also covers the airtime billing methods that the cellular operators use.

A new report, “Cellular Rates in the Arab World: A Regional Comparison” was released to the Arab Advisors Group’s Telecoms Strategic Research Service subscribers on October 31, 2006. This report can be purchased from the Arab Advisors Group for only US$ 1500. The 32-page report, which has 25 detailed exhibits, provides a comprehensive analysis of the cellular tariffs of the cellular operators in the Arab region. The report covers the following cellular operators that were operational by end of July 2006. These are Algerie Telecom Mobile (Algeria), Orascom Telecom Algeria, Wataniya Telecom Algeria, Batelco (Bahrain), MTC Vodafone Bahrain, Vodafone Egypt, MobiNil (Egypt), Asiacell (Iraq), MTC Atheer (Iraq), Iraqna (Iraq), Fastlink (Jordan), MobileCom (Jordan), Umniah (Jordan), XPress (Jordan), Wataniya Kuwait, MTC Vodafone Kuwait, MTC Touch (Lebanon), Alfa (Lebanon), Libyana (Libya), Al Madar (Libya), Mattel (Mauritania), Mauritel Mobiles (Mauritania), Maroc Telecom (Morocco), Medi Telecom (Morocco), Nawras Telecom (Oman), Oman Mobile, Jawwal (Palestine), Qtel (Qatar), ALJAWAL (Saudi Arabia), Mobily (Saudi Arabia), Bravo (Saudi Arabia), Mobitel (Sudan), Areeba Sudan, Sudatel (Sudan), Areeba (Syria), Syriatel (Syria), Tunisie Telecom (Tunisia), Orascom Telecom Tunisia, Etisalat (UAE), Spacetel Yemen, Sabafon (Yemen), and Yemen Mobile.

Any investment in this report will count towards an annual Strategic Research Service subscription should the service be acquired within three months from purchasing the report.

Please contact the Arab Advisors Group to get a copy of the report’s Table of Contents.

The Arab Advisors Group also conducted an analysis of rates relative to the wealth of the country in a regional context. The rich Gulf countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE have low cost rates, relative to the examined countries’ GDP per capita.

Lebanon, Libya, Mauritania, Morocco, Palestine, Sudan, still have high cost cellular rates relative to the examined countries’ GDP per capita.

Algeria, Egypt, Iraq, Jordan, Syria, Tunisia, and Yemen’s rates are fair relative to their GDP per capita.

Increased competition in Arab cellular markets is driving operators into adopting billing per second or fractions of a minute. As of July 2006, an array of 17 different billing methods were in use by 41 cellular operators in the 19 covered Arab countries. 15 operators still use the traditional (and most profitable) per minute billing for postpaid packages while 13 operators adopt it for prepaid plans. Although the majority of operators have abandoned this method, it is still the most common billing method utilized, as it is utilized in 36% of postpaid billing methods and 27% of prepaid billing methods. Per second billing, which offers the best value for end users, is the basis for a total of 16 postpaid and prepaid plans in the Arab World.

“Arab Advisors Group’s analysis showed that for postpaid average minute rates (peak and off peak), Mauritania has the highest tariffs at US$ 0.28 per minute, followed by Libya; Morocco; Lebanon; Palestine and Tunisia; Algeria and Saudi Arabia; Jordan; Qatar, Kuwait and Sudan; Bahrain, Syria, Iraq, Oman and UAE; Egypt; and finally Yemen at US$ 0.04. The regional average postpaid average minute rate was calculated to be US$ 0.11.” Ms. Serene Zawaydeh, a Consultant at Arab Advisors Group wrote in the report.

“For prepaid average minute rates (peak and off peak), Lebanon has the highest tariffs at US$ 0.46, followed by Morocco; Mauritania; Egypt; Palestine; Algeria; Syria; Qatar and Libya; Tunisia and Kuwait; Saudi Arabia; Oman; Jordan; Sudan and Iraq; Bahrain and Yemen; and finally UAE at US$ 0.08. The regional average prepaid average minute rate was calculated to be US$ 0.18.” Ms. Zawaydeh added.

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.