Arab telecom and broadband markets Jawad J. Abbassi Founder & General Manager SAMENA Convergence to Jordan November 4, 2008 Dead Sea, Jordan

An overview of the Arab World’s telecom and broadband markets Projected growth in broadband services Stats and primary research findings from Arab Advisors Surveys Outline

Arab ICT: A Regional Comparison 2007 Source: Arab Advisors Group CountryPSTN Penetration %Cellular Penetration % Internet Users Penetration % Algeria8.9%80.4%7.0% Bahrain19.5%106.6%22.0% Egypt15.2%41.3%5.9% Iraq4.6%48.7%6.0% Jordan8.9%83.4%14.0% Kuwait15.8%81.6%32.7% Lebanon18.9%31.2%20.2% Libya13.9%86.8%6.0% Mauritania1.2%49.2%0.7% Morocco7.8%64.9%8.5% Oman10.5%94.4%12.4% Palestine9.3%35.3%10.8% Qatar17.7%94.5%19.5% Saudi Arabia16.3%115.6%26.1% Sudan1.2%22.1%1.1% Syria18.0%33.6%14.5% Tunisia12.4%76.7%9.9% UAE29.4%176.0%58.7% Yemen4.7%20.6%4.8%

Arab ICT: A Regional Comparison 2007 Source: Arab Advisors Group

Total Country Connectivity Measure (TCCM) in 2007 Source: Arab Advisors Group

Arab PSTN Users: 33.4 million in 2007 up from 31.1 million in 2006 Note: the bar charts portray the figures per country by end of 2007 Source: Arab Advisors Group PSTN Subscribers (000s)PSTN Penetration %

Arab Cellular Users: million in 2007 up from 125 million in 2006 Cellular Subscribers (000s)Cellular Penetration % Note: the bar charts portray the figures per country by end of 2007 Source: Arab Advisors Group

Nineteen cellular operators in twelve Arab countries offered 3G/3.5G services by April 2008 Source: Arab Advisors Report “ 3G Cellular Services in the Arab World ” July 2008 Country Number of operators offering 3G Operators offering 3G services Operator not offering 3G services Bahrain2  Zain Bahrain  Batelco  None Egypt2  Etisalat Misr  MobiNil  Vodafone Egypt Iraq1  Mobi-tel  Asiacell  Zain Iraq  Sana Tel  Korek Telecom  Mobi-tel Kuwait2  Zain Kuwait  None  Wataniya Telecom Libya1  Libyana Mobile Phone  Al Madar Morocco2  Maroc Telecom  Wana  M é di Telecom Mauritania1  Chinguitel  Mauritel  Mattel Oman1  Nawras  Oman Mobile Qatar1  Qtel Saudi Arabia2  ALJAWAL  Bravo  Mobily Sudan2  MTN Sudan  Zain Sudan  Sudani- Sudatel UAE2  Etisalat  None  du

Arab Internet Users: 29.4 million in 2007 up from 23 million in 2006 Internet Users (000s)Internet Users Penetration % Note: the bar charts portray the figures per country by end of 2007 Source: Arab Advisors Group

Broadband Internet in the Arab World by end of 2007: Gradually making it to the global scene! * Estimate Source: Arab Advisors Group and OECD % broadband out of population

Arab ADSL/broadband: 2.7 million by end of 2007 with a total penetration rate of 0.96% * Arab Advisors estimate ^ The Qatar Planning Council has restated the population figures for the years 2004, 2005 and In light of these changes, the Arab Advisors Group recalculated the ADSL penetration % for 2007 according to the new population figures. Source: Arab Advisors Group Country Broadband accounts (000s) Broadband % of total Internet accounts Broadband % of total mainlines Broadband penetration % Bahrain * %33.8%7.0% Egypt %3.8%0.6% Jordan %16.5%1.6% Kuwait * %13.1%2.1% Lebanon %6.1%1.0% Morocco %19.9%1.5% Oman %6.9%0.7% Palestine %15.8%1.5% Qatar %29.6%5.3% ^ Saudi Arabia %14.9%2.4% Sudan * %1.4%0.02% Syria %0.2%0.04% Tunisia %9.0%1.1% UAE %26.6%7.8% Yemen %1.0%0.05%

Saudi Arabia takes the lead with the most broadband lines… Source: Arab Advisors Group Broadband Accounts (000s) by end of 2007

…While UAE has the highest broadband penetration Source: Arab Advisors Group Broadband Penetration (%) by end of 2007

Arab Advisors projects Syria’s broadband CAGR to be the highest between as it is starting from a very low base Source: Arab Advisors Group Compound Annual Growth Rate (CAGR)

Some Primary Research Findings from Arab Advisors’ Major Telecom Surveys

63.4% of Egyptian households with ADSL, share the ADSL connection with neighbors. Source: Egypt Households Telecoms and Media Survey 2008, Arab Advisors Group Note: Percentages are calculated from the 131 households who have an ADSL connection. Whether household with ADSL connection shares it with neighbors

Awareness of 3G services Source: Arab Advisors Group survey reports, check Percentage of cellular users who are aware of 3G services

12.8% of Lebanon’s GSM users share their phone lines with other members of their families. Source: Lebanon Cellular Users Survey December 2007

Audio/Video streamers through the Internet Note: Percentages are calculated out of those who use Internet Source: Arab Advisors Group survey reports, check Percentage of Internet users who use it for Audio/Video streaming

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