Syria's Internet access service will fetch US$ 30 million in revenues in 2006, up from US$ 3.25 million in 2001.

A newly released report from the Arab Advisors Group (www.arabadvisors.com) fully analyzes the Syrian Internet and datacomm market. The report projects Syria's Internet subscribers to grow by a CAGR of 43% between 2001 and 2006 to reach 180,000 subscribers. Internet users will reach 630,000, a user penetration rate of 3.17% by 2006.

April 29, 2002 -

The Syrian Telecommunications Establishment (STE) reports that within a month it will announce the winner for the Public Data Network (PDN) tender from a range of interested regional and international companies. The awarded contractor will supply, install and operate the infrastructure for PDN, Internet backbone infrastructure as well as an Internet Service Provider (ISP) with the spare parts needed for a period of five years from the issuance of the contract. The plan is to follow the Internet model of Saudi Arabia where the STE will run and control the infrastructure while allowing private ISPs to operate servers and marketing.

A new report, entitled Syria Internet and Datacomm Landscape Report 2002, was released to the Arab Advisors Group's (www.arabadvisors.com) Strategic Research Service subscribers in April 2002. The 30-pages report is the culmination of painstaking primary research over more than two months by Arab Advisors Group's analysts. The report found that despite recent growth, Syria's Internet market remains one of the least developed amongst the major Arab markets.

"The Saudi model essentially serves to filter and block information and accessibility to certain websites that the Syrian government deems improper. The STE would assign a mother ISP to act as a reseller and gateway for smaller ISPs, by providing them with connections, data services, sharing and allocation of ports and bandwidth." Sarah Alalul, Arab Advisors Group analyst wrote in the report. "If the Saudi model is followed in its entirety, the STE would also be responsible for qualifying and licensing ISPs, connecting ISPs and universities with Internet and preparing regulations to govern the use of Internet in Syria in coordination with government policy." She added.

One of the report's conclusions was that Syria's Internet market may not grow optimally because of the adoption of the Saudi-like Internet setup. "Syria's Internet account penetration stood at a very low 0.17% by yearend 2001, if we count the local subscribers and not those who connect through ISPs in neighboring Lebanon" Ms. Alalul noted. "Because of the proposed setup, Internet service will be the core business for the private ISPs but will be a marginal business for the STE. This asymmetry of importance could stifle the growth in the market as the STE may not allocate the highest priority to Internet infrastructure investments." She explained.

The Arab Advisors Group's report (www.arabadvisors.com) fully analyzes the two operating ISPs in Syria in addition to the current X.25 and digital leased lines networks in the country. The report also offers ample detail and analysis of the setup currently under a tendering process.

"With this Syria report, the Arab Advisors has already fully examined and analyzed the communications and Internet and datacomm markets in close to 16 Arab markets", Jawad Abbassi, President of Arab Advisors Group said. "Our team of analysts, stationed in the region, has produced more than 80 country reports and research notes over the past year that were received by the global vendors, operators and investment houses that constitute Arab Advisors Group's subscriber base". New subscribers to the Arab Advisors Group Strategic Research Service receive all previously released reports in addition to all reports that will be released in the year.

The Syria Internet and Datacomm Landscape Report 2002 includes 5-year historical figures on 40 plus indicators of the communications market as well as 5-year projections (till 2006). The report's table of content can be downloaded in PDF format from Arab Advisors Group's web page (www.arabadvisors.com). The report analyses the operations of all the companies in the market and presents detailed profiles of their operations and strategy.