"Jordan has something appealing for companies like Microsoft -- a pool of programmers and talent, in addition to the strong backing for the IT sector," said Jawad Abbasi, president of the Arab Advisors Group.

"Microsoft's decision to invest in Jordan was partially affected by the fact that Jordanian companies were always its regional arm while developing localized versions of Microsoft products," Abbasi said.
From:"Jordan Puts Eggs in Tech Basket", Wired News,
Sep. 30, 2002

The main consequence of this situation is very high connection rates, that currently stand at USD390, as well as the lack of prepaid services. "Evidently, people able to afford a mobile are primarily business people and government officials", analyst Sarah Alalul explained.
Although, there were fewer than 200,000 GSM users in the country of more than 17 million people, the Arab Advisors Group projects Syria's GSM subscribers to exceed 4.5 million in 2006, a 22.86 percent penetration rate.
From:'GSM revenues in Syria to exceed USD400 million by 2003", The Syria Report,
05 March 2002

Despite reaching high penetration levels for communications services, the UAE market still has high Average Revenue Per User (ARPU) levels, which is an invitation for telecom competition.
"The GSM market still has room for growth. The subscriber base grew rapidly at a compounded annual growth rate (CAGR) of 66% between 1997 and 2000," said analyst Hala Baqain. "Even at a high penetration rate of close to 58%, the monthly ARPU per GSM user in the UAE comes to $54 - a desirable ARPU for GSM operators in competitive countries with a similar penetration rate," Baqain added
From:"Strong comms market growth predicted for Gulf states", EDTN Europe , Feb 18, 2002

… The fact that Orascom Telecom now owns GSM (Global System for Mobile communications) as well as Internet ventures in Jordan, indicates its future plans to become an ICP in Jordan once the country liberalizes its PSTN (public switched telephone network) and ILD (International Long Distance) market in 2005", wrote Sarah Alalul, Arab Advisors Group's Jordan analyst, in the report.

"The presence of strong, profitable mobile operators who own extensive transmission networks of their own in big Arab markets means that alternative networks are already in place in these markets," noted Jawad Abbassi, Arab Advisors Group's president.
From: "Jordan's second ICP starts to take early shape", menareport.com, (January 21, 2002)

The result is high online charges and poor service. A study by Arab Advisers, an Amman-based telecoms consulting firm, estimates that 740,000 users in eight Middle East countries have between them 777 million bits per second (MBPS) of bandwidth - that's the same amount as just 518 cable modem users…

Four years is a long way off in Internet time, but Jawad Abassi, who heads Arab Advisors, says the benefit of deregulation should begin earlier because the state-owned telecoms have to ready themselves for competition. Egypt has liberalized its ISP industry and in January plans to cut online charges dramatically. France Telecom (FTE) acquired 40% of Jordan Telecom in 2000 and rates for ISPs have since fallen 50%.

To meet the needs of non-English speakers, there has been a proliferation of Arabic-language content in the last two years, which has helped drive the Internet's rapid growth. Literacy among the young is higher than the average, which will gradually boost the number of Internet users.

But many observers worry that low incomes will create a natural ceiling for the Internet and that growth will tail off by 2005. "The potential addressable user market is very low," says Abassi. "You have to first address the pyramid of human needs - food shelter and health comes before the Internet."
From: "MIDDLE EAST WEB: After Late Start, Region Surfs Internet", Dow Jones International News,(January 7, 2002)

… "When it comes to the percentage share of International Long Distance minutes (outgoing and incoming), Saudi Arabia has the highest share at 33.9%, while Syria has the lowest share at 2.7%", noted Shahin Shahin. "By examining the ratio of international voice circuits available in each market to its share of the outgoing and incoming minutes within a regional context, we calculated the Arab Advisors Group's International Voice Circuits Utilization (IVCU) index for all the countries in the report", Mr. Shahin added.

The report shows that Syria has the highest IVCU Index score at 2.68 while Lebanon had the lowest at 0.44. "This means that Syrians making international phone calls are much less likely than the Lebanese to encounter busy signals. A high IVCU Index score could also mean that the circuits available are being under utilized", noted Sami Sunna'. "Clearly, a very high index score maybe just as bad as a very low one", Mr. Sunna' added. Kuwait, Lebanon, Oman, Saudi Arabia and Sudan all have IVCU index scores of less than 1, while Egypt, Jordan, Syria and the UAE have IVCU index scores of more than 1….
From:"International connectivity in the Arab World", Arabia.com, (December 24, 2001)

Jawad Abbassi, president of the Arab Advisors Group, explains that although it does not have specific figures, it believes that the combined revenue of the region's leading portals, as they currently stand, is very low. "I would put it at under $ 1 million per year," he says…. Abbassi explains that the main problem with online advertising space itself is not limited and is, in fact, increasing more quickly than the amount of advertising there is to go around..

…."The portals are generally not doing very well because they depend on re-hashing content from other news providers such as AFP and Reuters," says Sarah Alalul, analyst, Arab Advisors Group….

… However, Sami Sunna, analyst, Arab Advisors Group, argues that there is a big difference between content developed for an Arabic audience and Arabic Language content…. "when we speak of Internet users in the Arabic World we have to remember that they are not necessarily Arab or Arabic speaking - the UAE is a shining example, as around 70% of Internet users are not Arab," he says… " in Egypt, Jordan and Lebanon, most of the users are actually Arabs. But in Lebanon and Jordan they are English language literate. For example, Lebanon has a strong history of English and French"
From: "Portal Focus, Growing Pains", Arabian Communication News, (December 2001)

The Arab World is poised for a major round of privatisation and liberalisation milestones in telecommunications that will spur growth in regional electronic government initiatives.

"A virtuous cycle for e-government is around the corner, brought about by growth in the use of the Internet, GSM and broadband," say the Arab Advisors Group
The Internet, communications and new media research consultancy says Arab countries - home to more than 250 million people - have yet to see truly liberalised communication sectors.

When they do, competition will bring: Better service, expanding consumer bases for communication services [and] Cost-based pricing.

The Arab Advisors Group, based in Amman, Jordan with a presence in London, is to reveal new research into the infrastructure readiness for e-government of Arab states at a major conference in Dubai on 3rd February 2002. The Dubai Government recently unveiled its e-government Internet portal (www.dubai.ae).

During the Middle East e-Government Forum, at the Crowne Plaza Hotel, organised by the Institute for International Research (IIR), Jawad Abbassi, Arab Advisors Group's President, will examine the effects of liberalisation and privatisation on infrastructure and e-government initiatives.
From: "Arab world opening for e-Government", Chat Arab Inc,(December 10, 2001) http://www.chat-arab.com

The Arab countries, home to more than 250 million people, are yet to have truly liberalized communications sectors that will bring in what competition elsewhere brought: better service, expanding bases of consumers of communications services and cost-based pricing, which in general means lower rates although it could mean higher local rates as cross subsidization of services is usually the first thing to go in a competitive market. Liberalized markets will also enhance global investor interest in the countries as opportunities attract international operator, vendors and finance.

"The picture varies markedly between the Arab countries", noted Jawad Abbassi, Arab Advisors Group President. "Morocco is the clear market leader in introducing liberalization followed by countries like Jordan, Egypt and Lebanon. The Gulf States are still monopoly countries with some level of competition in Kuwait-Internet and GSM-and Internet in Saudi Arabia", Abbassi said.
From: "Arab communication markets on the threshold of unprecedented competition", MENA REPORT (October 2001)

"The Arab world is bandwidth starved and will remain that way for several years, according to a new report by a research group.
The estimated 740,000 internet subscribers in eight Arab countries share a combined bandwidth of just 777 mbps, says the report published by the Arab Advisors Group… based in Jordan."
From: "Arab web growth stunted by huge lack of bandwidth", CommsMEA (October 2001 edition.)

"Overall, Internet bandwidth costs in the region remain at much higher rates than those in the United States or even Europe," said Jawad Abbassi, president of Arab Advisors Group. "Being small operators on the global scene, the ISPs/operators still lack any peering arrangements with international backbone providers. As such they continue to pay the complete cost of full-circuit connections to the international Internet backbone operators. Add to this the existence of cross-subsidization (local rates by international rates) by monopoly operators and the cost becomes even higher."
Liberalization and privatization steps are gather momentum across the region. Five of the markets already have plans to introduce competition in international servoce by 2005, and Arab Advisors predicts the bandwidth situation will improve as international bandwidth rates come down and ISPs expand their bandwith without extra costs.
From "Arab World Suffering from Bandwidth Drought" , CyberAtlas (6 September 2001)

"The fixed services tender is expected to be finalized by 2002, and the Moroccan government is banking on a successful process to attract investments as well as collect hefty license fees." Explained Hala Baqain, an Arab Advisors Group analyst. Arab Advisors group estimates that the Moroccan communication market will expand and eventually reach the full competition phase by 2003.
Arab Advisors Group concludes in its research note that Morocco sets the right example for many other Arab countries, especially the ones who are non-oil exporting and are in a bad need to upgrade their communication markets.
From "Arab Advisors Group predicts communication landscape change in morocco" Arabia On Line (18 June 2001)

"The paradox that will result from introducing Free Internet in Egypt is that ISPs will start to encourage users to connect for longer hours in order to increase their revenues, whereas in the unlimited account current scheme, ISPs prefer shorter connection hours." explained Shahin Shahin..... Arab Advisors Group concludes in its Research Note that the introduction of the Free Internet model in Egypt will result in a boost in the number of Internet users in the country and an increase in the revenues of the Egyptian ISPs."
From "Free Internet in Egypt by the end of the year" Middle East Wire (25 June 2001)

"The Kuwaiti government has received a good grade from a regional economic think tank over its continuing effort to deregulate its mobile telephone market. “Kuwait’s cellular market is on track towards full competition and much more responsive GSM operators,” wrote the Amman-based Arab Advisors Group, which provides research service to government and private sector enterprises involved in information economy in the emerging Middle East and North Africa. .... Nonetheless, commented Sami Sunna, “full competition can only be expected to be achieved as soon as the Kuwaiti government decides to withdraw most of its power from both operators.” As things are at present, the Kuwaiti government holds significant shares in both operators."
From "Kudos for Kuwaiti government's sell-off of cell phone shares" Mena Report (24 June 2001)

"In its report, the Arab Advisors Group, notes the crucial importance of Internet fundamentals: solid margins and economies of scale. It also stresses that established businesses adding an Internet-based channel to their existing sales channels will have the biggest chances for success."
From "Arab World Holds Potential for E-commerce" CyberAtlas (24 Jan 2001)

"Online businesses in this region tend to have lower burn rates than those in the US and Europe and can thus achieve profitability on lower revenues Online ventures in this region should focus on the aggregate Arab market rather than on individual countries "
From "Arab Advsiors Group: Future looks bright for Arab e-commerce" ebusinessforum.com (24 Jan 2001)

According to the Arab Advisors Group, the deal puts the market value of Maroc Telecom at US$ 6.04 billion, which is around five times the year 2000 revenues of almost US$ 1.19 billion, and less than ten times year 2000 EBITDA. The report compares the new valuation to $1.08 billion paid in the near past by the Medi Telecom consortium, led by Telefonica (Spain) and Portugal Telecom, for the second GSM license in the country, and provides a comparative analysis of the two deals…. "
From "MENA telecom evaluations face a reality check " Arabia.com (3 Jan 2001)

"The [Arab Advisors] Group suggests that Egypt and Jordan must liberalize labor laws for the IT sectors between them to allow and encourage free flow of skilled IT professionals between the two countries. This would make it easier for companies to relocate into either of the countries and will enhance the combined IT attractiveness of the three countries.

According to the Group's core body of research, the Internet penetration rate of the UAE has reached 14.07 percent, ranking it amongst countries with 'Pervasive' penetration rates, with more than 180,000 Internet accounts and some 414,000 users."
From "Emerging IT trio of UAE, Jordan, Egypt: Markets to complement one another" The Star Weekly (3 Jan 2001)

"One consulting group [Arab Advisors Group] has proposed that Egypt, along with Jordan and the United Arab Emirates (UAE), pool their human resources. Jordan, like Egypt, is vying to become a regional IT hub while the UAE has the highest Internet penetration in the Arab region and is also trying to become a regional hub, through its own Silicon Valley, Dubai Internet City. Instead of competing with each other, it suggests that Jordan and Egypt cooperate to market their lower cost IT workers to computer companies in the UAE."
From "The Next India? Egypt's Software Dream" ITU Internet Country Case Studies (Dec 200)

"So far, cellular licenses have brought in close to $4 billion for Arab governments according to Arab Advisors Group.... Arab Advisors Group also believes that a country like Jordan has lost at least $150 million in potential upfront license fees, in addition to potential sales and income taxes (calculated by bench marking with other countries) by bundling the second cellular license as a deal sweetener when attracting a strategic investor for the government-owned national telecom provider....The Jordanian government, for example, missed out on maximizing its financial gains by failing to liberalize its cellular market in 1998."
From "Cellular Liberalization brings in over $4billion in licenses for Arab Governments" The Jordan Time (Tuesday, 12 Dec 2000)

"Jordan wants to become the Arab world's online hub. It has certainly fostered some of the region's more exciting websites, and has a lot of IT talent.....But a lot remains to be done. Despite Jordan Telecom's efforts, the infrastructure is poor: too slow and too expensive. For example, users have to pay $65 for unlimited access, compared to $15 dollars in the US. According to Arab Advisors Group, a new economy consultancy, Jordan will have only 35,000 internet subscribers and 100,000 users by the end of 2000."
From "The internet dream" by Anne Feitz (Mon, 04 Dec 2000 09:15:50)