Arab Advisors Group
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Jordan has the highest sales tax rate on cellular services in the Arab World.
Monday, January 2, 2012

A new report from the Arab Advisors Group analyzes the cellular tariffs for 47 cellular operators in 19 Arab countries. The analysis revealed that the average postpaid peak minute rate dropped by 0.81%, while its off-peak average minute rates increased by 1.62% in 2011 compared to 2010. The average prepaid peak and off-peak minute rates both decreased by 12.15% and 10.52%, respectively. 12 Arab countries impose sales taxes on cellular services (paid by end users). Jordan has the highest sales tax rate on cellular services in the region followed by Tunisia, Sudan and Morocco.

The analysis of the cellular rates in the Arab World has revealed that the postpaid average minute rates in Morocco, Palestine, Mauritania, Tunisia, Lebanon and Kuwait are above the average peak minute rate. Yemen recorded the lowest average postpaid minute rates.

For prepaid average minute rates, Morocco, Lebanon, Mauritania, Palestine, Tunisia, Kuwait, Saudi Arabia and Qatar have rates that are above the average peak minute rate. Egypt has the lowest prepaid average minute rates in the region.

The Arab Advisors Group analyzed the cellular rates of 47 cellular operators 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’ operators. In calculating the average cellular rates, the Arab Advisors Group relied on the simple average for the packages’ rates. The rates analyzed were as of September 2011. The average peak and off-peak minute rates in the report include the tariffs for on-net and off-net traffic.

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 November 22, 2011. This report can be purchased from the Arab Advisors Group for only US$ 1,200. The 48-page report, which has 30 detailed exhibits, provides a comprehensive analysis of the cellular tariffs of the cellular operators in the Arab region.

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 report is based on the rates of 47 mobile operators, these are: Algerie Telecom Mobile (Mobilis), Orascom Telecom Algeria (Djezzy), Wataniya Telecom Algeria (Nedjma), Batelco (Bahrain), Zain Bahrain, Viva Bahrain, MobiNil (Egypt), Vodafone Egypt, Etisalat Misr (Egypt), Asiacell (Iraq), Zain Iraq, Zain Jordan, Orange Jordan, Umniah (Jordan), Wataniya Kuwait, Zain Kuwait, Viva Kuwait, MTC-Touch (Lebanon), Alfa (Lebanon), Libyana (Libya), Al Madar Al Jadeed (Libya), Mattel (Mauritania), Mauritel (Mauritania), Maroc Telecom, Medi Telecom (Morocco), Inwi (Morocco), Nawras Telecom (Oman), Oman Mobile, Jawwal (Palestine), Wataniya Palestine, Qtel (Qatar), Vodafone Qatar, Saudi Telecom Company (STC), Mobily (Saudi Arabia), Zain Saudi Arabia, Zain Sudan, MTN Sudan, MTN Syria, Syriatel, Tunisie Telecom, Orascom Telecom Tunisia (Tunisiana), Orange Tunisia, Etisalat UAE, du (UAE), Sabafon (Yemen), Yemen Mobile and Y-Telecom (Yemen).

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

“Twelve Arab countries impose taxes on cellular services charged to the end users. These are the governments of Algeria, Egypt, Iraq, Jordan, Lebanon, Mauritania, Morocco, Palestine, Sudan, Syria, Tunisia and Yemen. Such taxes might be referred to as sales tax, telecommunication tax, value added tax, or consumption tax. All rates analyzed in this report include all applicable taxes (representing the total costs that end users’ bear). The governments of the Gulf Corporation Council (GCC) countries and Libya do not impose taxes on end users. Jordan has the highest sales tax rates on cellular services in the region followed by Tunisia, Sudan and Morocco.” Ms. Noura Abdulhadi, Arab Advisors Group Senior Research Analyst commented.

“When comparing the prepaid average minute rates with the postpaid average minute rates; three countries have a prepaid average rate lower than the postpaid average rate; namely: Egypt, Jordan and Libya. The Arab Advisors Group believes that this is the case in Egypt and Jordan due to the fierce competition between the operators in the market. In Libya, Libyana offers prepaid packages only (with low average minute rates) resulting in Libya having lower average prepaid minute rates than postpaid rates.” Ms. Abdulhadi added.

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