Jordan's effective mobile penetration rate is less than two thirds the conventional figures!

July 23, 2007

Multiple line use by the same individuals and the presence of expatriates outside official population figures, set Jordan's Effective Mobile Penetration Rate at around 48%, 26 percentage points lower than its 74.2% mobile penetration rate. A new survey-based analysis by Arab Advisors Group details the situation and proposes the Effective Mobile Penetration measure alongside the conventional mobile penetration measure for a more accurate analysis of cellular markets.

A new major survey of Jordan 's cellular users, was concluded by the Arab Advisors Group on July 22, 2007. The survey report, Jordan Cellular Users Survey 2007 , which has over 170 detailed exhibits and 125 pages, provides the results of a major comprehensive survey of cellular subscribers in Jordan whose market is expecting new WiMAX operators in 2007. Respondents live in the three major cities of Amman , Irbid and Zarka. The major survey probed each household's telecom and media consumption habits and patterns related to Cellular, Internet, Fixed services, VAS, Handsets, Satellite TV, Terrestrial TV and Radio. The survey's fieldwork was conducted between May and June 2007. The survey provides statistical analysis of the results and insightful detailed cross tabulations. This survey report can be purchased from the Arab Advisors Group for only US$ 2,000 for subscribers to Arab Advisors Strategic Research Services . Non-Subscribers to Arab Advisors Groups Strategic Research Services can order the report for US$ 2,750. 

Please contact the Arab Advisors Group to get a copy of the report's Table of Contents and the survey questions.

“Arab Advisors Group survey revealed that -on the individual level- most respondents own one mobile line: 63.5% of respondents own a single line while 36.5% of respondents own more than one mobile line.” Mr. Jawad Abbassi, Arab Advisors Group's Founder and General Manager commented. “28.5% of cellular users in Jordan have 2 lines while 5.7% have 3 lines. A minute minority of 0.8% has more than 3 lines.” Mr. Abbassi added.

Having more than one line seems to be mainly driven by capitalizing on the different plans, offers and promotions of the operators: 58.1% of respondents who have more than one mobile line state cost savings as the reason. Maintaining an older mobile number came in second at 26.3%.

According to operators' published figures, Jordan 's mobile market had 4.15 million lines by end of 2006. Hence, the mobile penetration rate (defined as number of lines divided by the official population figure) stood at 74.2%.

“Based on the trend of the same individual owning multiple lines, the Arab Advisors Group introduced the Effective Mobile Penetration Rate: The effective mobile penetration rate considers the percentage of individuals with one or more mobile lines and is calculated by dividing the number of the estimated individual mobile users (and not mobile lines) by the estimated actual population figure (including expatriates and migrant workers).” Mr. Abbassi explained.

“Based on the survey findings, the ratio of the number of lines to the number of mobile users is 1.4. Applying this ratio to the reported total number of mobile lines, the actual number of individual mobile subscribers in Jordan is estimated at 2.9 million subscribers by end of 2006. The Arab Advisors Group estimates the population (including expatriates and migrant workers) to be half a million persons above official statistics consisting mainly of Egyptian, Iraqi and Syrian expatriates. Therefore, the Arab Advisors Group calculates Jordan 's Effective Mobile Penetration rate (% of individuals with one or more mobile lines) to be 47.9%.” Mr Abbassi added. “The two measures are not contradictory but rather explore the situation from two different angles: The number of mobile lines as well as the estimated number of individuals using these lines”. Mr. Abbassi concluded.

Arab Advisors Group's major analytical survey of Jordan was scientifically done. The survey involved face to face interviews with 509 respondents from different households across Jordan 's major cities. Respondents were 15 years old and above, and were cellular service users. This random survey is of the current cellular users in Jordan, and not the total population of the country. This survey provides deep insights into the telecom usage patterns in Jordan . The random survey has a 99% confidence level with a less than 6% 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) Cellular subscription

i. Mobile plans

ii. Switching operators and plans

iii. Services used

c) Cellular handsets

d) Cellular data services

i. SMS use

ii. MMS use

iii. Mobile content

iv. 3G services

e) Roaming and international calls

f) Perception of mobile operators

g) Internet use

Media

h) Television

i. FTA Satellite TV

ii. PAY TV

iii. Terrestrial TV

iv. Cable TV

i) Local Radio

j) Movies

k) News updates

l) Media Advertising

m) Media Satisfaction