Jordan has the most competitive Arab cellular market, while Palestine maintains its place as the most privatized Arab telecom market.

September 25, 2005

Jordan has overtaken Palestine as the most competitive Arab cellular market, followed closely by Palestine and Algeria. Saudi Arabia’s cellular market moved from 12th place in 2004 to the 6th place in 2005 as the Kingdom successfully and impressively introduced competition in its cellular market. The results are based on Arab Advisors’ objective annual Cellular Competition Intensity Index, which is released annually.

The Arab Advisors Group has devised the Cellular Competition Intensity Index in order to rate and properly assess the intensity level of competition in the Arab World’s cellular markets. The index takes into account the number of operators, packages, and services available in each of the 18 countries covered by the Arab Advisors Group, with each category assigned a certain weight according to its importance as an indicator of competitive behavior.

A new report, “Competition Levels in Arab Cellular Markets & Privatization levels in Arab Cellular and Fixed Markets” was released to the Arab Advisors Group’s Telecoms Strategic Research Service subscribers on September 19, 2005. This report can be purchased from the Arab Advisors Group for only US$ 950. The 40-pages report, which has 19 detailed exhibits, provides a detailed analysis of the level of cellular competition in each market as well as the level of privatization by revenues. Please contact the Arab Advisors Group to get a copy of the reports Table of Contents.

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.

The Cellular Competition Intensity Index results for 2005 revealed that Jordan now tops the score –as the most competitive Arab market- with an 84% mark followed by Palestine (73%), Algeria (66%), Iraq (62%), Morocco (60%) Saudi Arabia (55%), Yemen (54%), Egypt (51%), Tunisia (49%), Kuwait (43%), Lebanon (42%), Syria (41%), Bahrain (36%), Sudan (32%), Libya (29%), Oman (26%) Qatar 18% and finally UAE at 13%.

“It can be noted that currently competitive cellular markets all ranked towards the top of the list, followed by the duopoly markets, and finally the current monopoly markets. The UAE received the lowest score of all the countries covered in the index.” Mr. Ahmad Al Assad, Arab Advisors Senior Analyst wrote in the report.

At the same time, the Arab Advisors Group has analyzed the ownership structure and revenues of all fixed line and cellular operators in the region. This was intended to shed a light on the actual level of privatization and state ownership in each country measured by the proportionate share of total revenues for the year 2004. It is important to note that this analysis was based on full 2004 revenues. As such, for countries where new operators entered the market late in 2004 or in 2005, the results will not reflect the current status of the market. Case in point would be the situation of Saudi Arabia for example, or Jordan.

Lebanon, Oman and Libya had the least privatized telecom markets, with 100% government share (ownership) of telecom revenues. The three countries also scored in the bottom half of the Cellular Competition Intensity Index. The most privatized markets were Palestine (with 0% government proportionate share of revenues), followed by Jordan (23% government share), Sudan (27%), Bahrain (34%), Yemen (39%), Syria (40%), Algeria (41%), Kuwait (45%), Egypt (47%), Morocco (55%), Qatar (55%), UAE (60%), Saudi Arabia (70%) and Tunisia (80%).

The Arab Advisors Group’s team of analysts in the region has already produced over 420 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 close to 315 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients.