2008 Middle Eastern - Convergence, Broadband and Internet Market

Publication Overview

Counties covered: Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey, UAE and Yemen.

This annual report offers a wealth of information on the broadband, Internet, and convergence markets in the Middle East. Subjects covered include:

·         Internet and broadband statistics;

·         Government policies and regulatory issues;

·         Broadband technologies;

·         Convergence and triple play models;

·         Satellite and pay TV market trends;

·         Digital media developments.

Researchers:- Tine Lewis, Paul Kwon and Peter Lange

Current publication date: September 2008 (7^th Edition)

Next publication date:- October 2009

Executive Summary

This Middle East market report covers the broadband and Internet markets, as well as convergence, pay TV, and digital media, for the following countries: Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey, UAE and Yemen. The region’s markets include: 

Egypt

The entire Egyptian Internet sector is highly competitive with more than 200 Internet and data service providers, which has led to low prices for ADSL services and broadband packages with up to 24Mb/s delivered to residential households. VoIP Internet telephony has been liberalised, and several companies are rolling out next generation networks to provide converged IP-based voice and data services. 

Israel

Israel has one of the highest household broadband penetration rates in the world at around 70% of all households and 95% of Internet households. Market competition is fierce between cable and DSL infrastructures, both of which are subject to universal service obligations, between ISPs and between incumbent telco Bezeq’s satellite TV subsidiary YES and cable TV operator HOT.  

A strong entrepreneurial culture mixed with the high broadband penetration rates creates fertile ground for digital media and e-commerce. Convergence, upgraded infrastructure and regulatory measures encouraging competition are disrupting the status quo leading to a time of change in this very interesting and advanced market. 

Qatar

Broadband subscribers are increasing at a rapid rate in Qatar, at over 50% per year for the past three years. Qatar is unusual among the GCC countries in not prohibiting VoIP services and incumbent Qtel has no plans to block services. It is preparing for the first competition in its market as Vodafone prepares to launch in the mobile sector.  

Qatar is home to the very popular Arab news channel Al Jazeera, which claims high viewer ratings in the Middle East with an estimated 50 million viewers. 

Saudi Arabia

The broadband market has been slow to grow in Saudi Arabia. Penetration rates remain low for the level of development. Greater competition in the sector is likely to have a significant effect in the near future with Etisalat-owned mobile operator Mobily’s purchase of Bayanat Al-Oula, a licensed data provider and fellow partner in the alternative fibre optic backbone network.  

While few Middle East media companies are based in Saudi Arabia, most of the larger ones are Saudi owned, including the most watched FTA channel MBC, two out of the three pay TV operators, and up and coming TV and digital media company, Rotana.  

UAE

The UAE has the highest broadband penetration rates of the Arab Middle East countries and levels are still growing quickly. Internet user penetration was over 50% in 2008, according to the TRA. Government policy has included encouragement for media, IT and Internet-related businesses and Dubai has become a regional centre for the industry. Dubai is also a hub for the burgeoning satellite-delivered Middle East TV industry. Of the 300+ regional FTA satellite channels around 25% are based in Dubai.  

For those needing high level strategic information and objective analysis on the Internet and broadband markets in the Middle East, this report is essential reading and gives further information on:

·         The rapidly developing broadband markets in wealthier countries in the region;

·         The dynamic Arab satellite TV market;

·         VoIP developments and problems;

·         Digital media developments and challenges.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

• 1. Overview Middle Eastern Convergence, Broadband & Internet Market
  • 1.1 Broadband and Internet
    • 1.1.1 Overview
    • 1.1.2 Internet statistics
    • 1.1.3 Asymmetric Digital Subscriber Line (ADSL)
    • 1.1.4 Cable modems
    • 1.1.5 Wireless broadband
  • 1.2 Convergence
    • 1.2.1 Triple play
    • 1.2.2 VoIP
  • 1.3 Digital media
    • 1.3.1 Overview
    • 1.3.2 Broadcasting overview
    • 1.3.3 Terrestrial TV
    • 1.3.4 Satellite TV
    • 1.3.5 Cable TV
    • 1.3.6 Pay TV
    • 1.3.7 Digital content
• 2. Bahrain
  • 2.1 Broadband and Internet market
    • 2.1.1 Internet overview
    • 2.1.2 ISP market
    • 2.1.3 Broadband overview
    • 2.1.4 Asymmetrical Digital Subscriber Line (ADSL)
    • 2.1.5 Wireless broadband
  • 2.2 Convergence
    • 2.2.1 Overview of media convergence
    • 2.2.2 VoIP
    • 2.2.3 Triple play
  • 2.3 Digital media
    • 2.3.1 Satellite TV
    • 2.3.2 E-government
    • 2.3.3 Internet economy
• 3. Egypt
  • 3.1 Internet market
    • 3.1.1 Overview
    • 3.1.2 Internet gateways
    • 3.1.3 Cairo Regional Internet Exchange (CRIX)
    • 3.1.4 Internet access locations
    • 3.1.5 Egypt’s ISP Market
  • 3.2 Broadband market
    • 3.2.1 Broadband initiative
    • 3.2.2 Digital Subscriber Line (DSL)
    • 3.2.3 Wireless broadband
    • 3.2.4 Broadband via satellite
    • 3.2.5 Broadband over Powerlines (BPL)
  • 3.3 Convergence
    • 3.3.1 VoIP telephony
    • 3.3.2 Next Generation Networks (NGNs)
    • 3.3.3 IPTV
    • 3.3.4 E-commerce
    • 3.3.5 Information Highway project
    • 3.3.6 E-government
    • 3.3.7 E-learning
• 4. Iran
  • 4.1 Broadband and Internet market
    • 4.1.1 Internet overview
    • 4.1.2 Asymmetrical Digital Subscriber Line (ADSL)
  • 4.2 Convergence
    • 4.2.1 Overview of media convergence
    • 4.2.2 VoIP
    • 4.2.3 Overview of broadcasting market
    • 4.2.4 Satellite TV
• 5. Iraq
  • 5.1 Broadband and Internet market
    • 5.1.1 Internet overview
    • 5.1.2 Wireless broadband
  • 5.2 Convergence
    • 5.2.1 Overview of media convergence
    • 5.2.2 Overview of broadcasting market
• 6. Israel
  • 6.1 Broadband and Internet market
    • 6.1.1 Overview
    • 6.1.2 ADSL and cable networks
    • 6.1.3 Israel’s ISP market
    • 6.1.4 WiFi
    • 6.1.5 WiMAX
  • 6.2 Convergence
    • 6.2.1 Overview of media convergence
    • 6.2.2 Triple play models
    • 6.2.3 VoIP/VoB
    • 6.2.4 Overview of broadcasting market
    • 6.2.5 Regulatory issues
  • 6.3 Digital media
    • 6.3.1 Digital TV
    • 6.3.2 Internet content
• 7. Jordan
  • 7.1 Broadband and Internet market
    • 7.1.1 Internet overview
    • 7.1.2 ISP market
    • 7.1.3 Broadband overview
  • 7.2 Convergence
    • 7.2.1 Overview of media convergence
    • 7.2.2 VoIP
    • 7.2.3 Overview of broadcasting market
• 8. Kuwait
  • 8.1 Broadband and Internet
    • 8.1.1 Internet overview
    • 8.1.2 ISP market
    • 8.1.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 8.1.4 Wireless broadband
  • 8.2 Convergence
    • 8.2.1 Overview of media convergence
    • 8.2.2 VoIP
  • 8.3 Digital media
    • 8.3.1 Overview of broadcasting market
    • 8.3.2 Internet economy
• 9. Lebanon
  • 9.1 Broadband and Internet
    • 9.1.1 Internet overview
    • 9.1.2 Data service providers
    • 9.1.3 ISP market
    • 9.1.4 Broadband overview
    • 9.1.5 Digital Subscriber Line (DSL)
    • 9.1.6 Cable modems
    • 9.1.7 Wireless broadband
  • 9.2 Convergence
    • 9.2.1 Overview of media convergence
    • 9.2.2 Triple play
    • 9.2.3 VoIP
    • 9.2.4 Overview of broadcasting market
    • 9.2.5 Digital TV
• 10. Oman
  • 10.1 Broadband and Internet
    • 10.1.1 Internet overview
    • 10.1.2 Leased lines
    • 10.1.3 Asymmetric Digital Subscriber Line (ADSL)
    • 10.1.4 Wireless broadband
  • 10.2 Digital media
    • 10.2.1 Overview
    • 10.2.2 Overview of broadcasting market
• 11. Qatar
  • 11.1 Broadband and Internet
    • 11.1.1 Internet overview
    • 11.1.2 Asymmetrical Digital Subscriber Line (ADSL)
    • 11.1.3 Wireless broadband
  • 11.2 Convergence
    • 11.2.1 Overview of media convergence
    • 11.2.2 Triple play
    • 11.2.3 Voice over Internet Protocol (VoIP)
  • 11.3 Digital media
    • 11.3.1 Overview of broadcasting market
    • 11.3.2 Al Jazeera
    • 11.3.3 IPTV
    • 11.3.4 E-government
• 12. Saudi Arabia
  • 12.1 Broadband and Internet
    • 12.1.1 Internet overview
    • 12.1.2 ISP market
    • 12.1.3 Broadband overview
    • 12.1.4 DSL
    • 12.1.5 Broadband powerline (BPL)
    • 12.1.6 Wireless broadband
  • 12.2 Digital media
    • 12.2.1 Overview of broadcasting market
    • 12.2.2 E-commerce
    • 12.2.3 E-learning
• 13. Syria
  • 13.1 Broadband and Internet
    • 13.1.1 Internet overview
    • 13.1.2 ISP market
    • 13.1.3 Broadband overview
  • 13.2 Convergence
    • 13.2.1 Overview of media convergence
    • 13.2.2 Overview of broadcasting market
• 14. Turkey
  • 14.1 Internet market
    • 14.1.1 Overview
    • 14.1.2 Turkey’s ISP market
  • 14.2 Broadband market
    • 14.2.1 Overview
    • 14.2.2 Asymmetrical Digital Subscriber Lines (ADSL)
    • 14.2.3 Cable modems
    • 14.2.4 Fibre-to-the-Home (FttH) networks
    • 14.2.5 Wireless broadband
  • 14.3 Convergence
    • 14.3.1 Overview of media convergence
    • 14.3.2 Triple play models
    • 14.3.3 Overview of broadcasting market
    • 14.3.4 Broadcasting regulation
    • 14.3.5 Digital TV
• 15. United Arab Emirates
  • 15.1 Broadband and Internet
    • 15.1.1 Internet overview
    • 15.1.2 Internet access locations
    • 15.1.3 ISP market
    • 15.1.4 Broadband overview
    • 15.1.5 Asymmetrical Digital Subscriber Line (ADSL)
    • 15.1.6 Cable modems
    • 15.1.7 Wireless broadband
  • 15.2 Convergence
    • 15.2.1 Overview of media convergence
    • 15.2.2 Triple play
    • 15.2.3 VoIP
  • 15.3 Digital media
    • 15.3.1 Overview of broadcasting market
    • 15.3.2 Dubai Media City (DMC)
    • 15.3.3 Arab Media Group (AMG)
    • 15.3.4 Digital TV
    • 15.3.5 Internet economy
• 16. Yemen
  • 16.1 Broadband and Internet
    • 16.1.1 Internet overview
    • 16.1.2 Asymmetric Digital Subscriber Line (ADSL)
• 17. Glossary of Abbreviations

• Table 1 – Broadband household penetration in Arabian Gulf countries – 2007
• Table 2 – Internet users, penetration and growth in the Middle East – 2007
• Table 3 – Cable modem subscribers in Israel – 2003 - 2007
• Table 4 – 3G subscribers as a percentage of total subscribers – selected countries – 2006 - 2007
• Table 5 – Internet users and penetration estimates in Bahrain - 1995 - 2007
• Table 6 – Internet subscribers in Bahrain - 1999 - 2007
• Table 7 – Broadband statistics in Bahrain – 2007
• Table 8 – Broadband subscribers in Bahrain - 2005 - 2007
• Table 9 – Internet users and penetration in Egypt – 1995; 1997; 1999 - 2008
• Table 11 – DSL subscribers in Egypt – 2002 - 2008
• Table 12 – Internet users and penetration estimates in Iran - 1995 - 2007
• Table 13 – Internet subscribers in Iran – 1999 - 2007
• Table 14 – Broadband statistics in Iran – 2007
• Table 15 – ADSL subscribers in Iran – 2000 - 2007
• Table 16 – Internet user and subscriber estimates in Iraq – 2001 - 2008
• Table 17 – Internet users, penetration & household penetration estimates in Israel - 1997 - 2007
• Table 18 – ADSL and cable networks – subscribers, annual change & market share in Israel – 2005 - 2008
• Table 19 – Bezeq ADSL subscriber ARPU – 2005 - 2008
• Table 20 – Broadband subscribers, annual change & HH penetration in Israel – 2001 - 2007
• Table 21 – ISP market shares in Israel – 2005 - 2007
• Table 22 – NetVision broadband subscribers – 2006 - 2007
• Table 23 – 012 Smile VoIP lines – 2006 - 2008
• Table 24 – Broadcasting market statistical overview in Israel - 2007
• Table 25 – YES satellite TV subscribers, market share and ARPU – 2002 - 2008
• Table 26 – Walla Communications revenue and profit – 2005 - 2007
• Table 27 – Internet users and penetration estimates in Jordan – 1995 - 2007
• Table 28 – Internet subscribers and penetration rate in Jordan - 1999 - 2007
• Table 29 – Broadband statistics in Jordan – March 2008
• Table 30 – DSL subscribers in Jordan - 2001 - 2008
• Table 31 – TV market – receivers and households in Jordan - 1999 - 2007
• Table 32 – JRTVC revenue - 2005 - 2007
• Table 33 – Internet user and penetration estimates in Kuwait - 1995 - 2007
• Table 34 – Internet subscribers in Kuwait - 2003 - 2007
• Table 35 – Broadband DSL subscribers in Kuwait - 2001 - 2007
• Table 36 – TV market – TVs and satellites in Kuwait - 2000 - 2006
• Table 37 – Internet user and penetration estimates in Lebanon - 1995 - 2007
• Table 38 – Internet subscribers in Lebanon - 2001 - 2007
• Table 39 – Broadband statistics in Lebanon – June 2007
• Table 40 – Cable modem Internet subscribers in Lebanon - 2002 - 2006
• Table 41 – TV equipped households in Lebanon - 1996 - 2006
• Table 42 – Internet users and penetration estimates in Oman - 1998 - 2006
• Table 43 – Internet subscribers in Oman – 2000 - 2008
• Table 7 – Leased line subscribers in Oman – 2004 - 2008
• Table 11 – ADSL subscribers in Oman – 2005 - 2008
• Table 44 – Internet users and penetration estimates in Qatar – 1995 - 2007
• Table 45 – Internet subscribers in Qatar - 1999 - 2007
• Table 46 – Broadband statistics in Qatar – 2007
• Table 47 – ADSL subscribers in Qatar - 2003 - 2007
• Table 48 – Internet users and penetration estimates in Saudi Arabia – 1995 - 2007
• Table 49 – Internet subscribers in Saudi Arabia - 2000 - 2007
• Table 50 – Broadband statistics in Saudi Arabia – 2007
• Table 51 – DSL subscribers in Saudi Arabia - 2001 - 2007
• Table 52 – TV receivers and TV equipped households in Saudi Arabia - 2000 - 2007
• Table 53 – Internet user and penetration estimates in Syria – 1999 - 2007
• Table 54 – Internet subscribers and penetration in Syria – 1999 - 2007
• Table 55 – Broadband subscribers in Syria – 2004 - 2007
• Table 56 – Internet subscribers and penetration in Turkey – 1996 - 2007
• Table 57 - Internet subscribers and penetration in Turkey – 2002 - 2007
• Table 58 – Broadband subscribers by access type & annual change in Turkey – September 2007
• Table 59 – Broadband subscribers and penetration in Turkey – 2001 - 2007
• Table 60 – ADSL subscribers in Turkey – 2002 - 2007
• Table 61 – Advertising spending and annual change by media segment in Turkey – 2007
• Table 62 – Audience share by channel in Turkey – 2006 - 2007
• Table 63 – Internet users and penetration rate in UAE - 1995 - 2007
• Table 64 – Internet subscribers in UAE - 2000 - 2008
• Table 65 – Dial-up Internet subscribers in the UAE – 2000 - 2007
• Table 66 – Broadband statistics – 2007
• Table 67 – Broadband subscribers in UAE – 2000 - 2007
• Table 68 – Internet user and penetration estimates in Yemen – 1997 - 2007
• Table 69 – Internet subscribers in Yemen – 2001 - 2007

• Exhibit 1 – The Economist Intelligence Unit (EIU) annual E-readiness criteria