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A milestone year for Jordan’s broadband market: New infrastructure-based operators to enter in 2006.
Sunday, March 26, 2006

2006 will usher the entry of multiple new licenses offering broadband services independently from Jordan Telecom’s ADSL infrastructure.

On the 21st of October 2004, the Council of Ministers approved the TRC's proposed licensing program, which has fully opened the fixed telecommunications subsector to competition as of January 1st 2005.
The new licensing program introduced a simple integrated license that permits the licensee to offer any service. The TRC doesn’t place a limit on the number of licenses that will be issued, or upon the type and range of nonpublic mobile wireless services that may be provided, or on the types of associated networks used (except as required by considerations relating to normal network safeguards, security, use of scarce resources and technical limitations).

By end of 2004, the exclusivity of Jordan Telecom in the fixed market expired. Although the incumbent exclusively ran Jordan’s infrastructure for Internet and data communications, the competition has always been very high between the Internet service providers. Jordan’s Existing Class licensees –including all ISP licenses- were automatically shifted to the new integrated licensing regime. This enabled the ISPs to make use of more opportunities that were created by the new regime, such as exploiting the end of Jordan Telecom’s exclusivity over international traffic by offering their own VoIP services.

ISP consolidation evolved in an industry where volume and scale are very important. A consolidation trend emerged amongst ISPs towards the end of 2000. NETS and FTG merged and was then acquired by Batelco. Jordan Telecom, a subsidiary of France Telecom, acquired Global One and later renamed it Wanadoo. Cyberia Holdings acquired INDEX and in July 2005 Fastlink signed an agreement under which LINK would be the provider to all Access Me customers.

A new report, “Jordan Internet and Datacomm Landscape” was released to the Arab Advisors Group’s Telecoms Strategic Research Service subscribers on March 16, 2006. This report can be purchased from the Arab Advisors Group for only US$ 950. The 75-page report, which has 85 detailed exhibits, provides a detailed analysis of the Jordanian Internet and datacomm markets and profiles the eight operational ISPs in the country; Batelco-Jordan, Cyberia, IONet, LINK, MEC, NEXT, TE Data and Wanadoo. The report includes 5-year historical and 5-year projections on Internet uptake and revenues. The report provides, moreover, a detailed and comprehensive picture on the Internet market strategies and regulations, e-commerce, and online content and services landscape.

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 investment can also count towards attending Arab Advisors’ third annual Media and Telecoms Convergence Conference on June 6 & 7 2006. More information on the conference can be seen athttp://www.arabadvisors.com/Convergence/schedule.htm 
Please contact the Arab Advisors Group for full information on the conference, agenda and sponsorship opportunities.

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

“The Arab Advisors Group projects the Jordanian Internet market to sustain its growth trends during the period between 2006 and 2010. The fully liberalized market will enable ISPs to further reduce their rates and expand their service offerings. This will drive service uptake and will also put downward pressures on the monthly ARPU. The Internet monthly ARPU is projected to decline at a CAGR of -4.5% to reach US$ 15 by 2010. Internet revenues, driven by the growth in Internet subscribers, will grow at a CAGR of 13.3% to exceed US$ 52 million in 2010. For the period between 2006 and 2010 the Arab Advisors Group expects the heightened competition to grow the Internet subscribers base at a CAGR of 18%, to reach 310,000 Internet subscribers with a penetration of 5.04% in 2010.” Mr. Saif Al Nimry, Arab Advisors Research Analyst wrote in the report.

Residential subscribers constitute the majority of ADSL subscribers. By end of 2005, residential ADSL subscribers constituted 72% of the total ADSL lines provided by the ISPs. Residential subscribers tend to choose low bandwidth service to cover their home usage levels affordably. In contrast, business subscribers, which need more bandwidth to cater for their needs, tend to choose high bandwidth ADSL service.

The Arab Advisors Group’s team of analysts in the region has already produced over close to 540 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 360 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients.

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