2011 Middle East - Digital Media, Broadband, Internet Markets and Forecasts

Publication Overview

The countries covered in this report include: Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey, United Arab Emirates, Yemen.

Researcher:- Paul Kwon
Current publication date:- December 2011 (10th Edition)

Executive Summary

Broadband competition emerges from an unlikely source

The disparity in economic development across the Middle East is reflected in the region’s Internet and broadband penetration rates, although overall penetration rates for the region remain low. Increasing competition is improving affordability while a generally young population is a driver for growth.

The state of broadband development is most evident in the small, oil-rich and developed countries of the Gulf, where take up is driven by some of the highest incomes per capita in the world. Examples include Qatar, Bahrain and UAE.

Competition is predominantly infrastructure based due to the lack of effective regulatory regimes for wholesale network access. Despite this, progress is evident with demand for wholesale products such as naked DSL in the UAE indicating potential for future growth.

ADSL remains the dominant broadband platform given the reach of incumbent networks. However a number of countries have embarked on ambitious fibre or hybrid fibre network rollouts or indicated a willingness to do so, including Oman, Bahrain, Qatar, Saudi Arabia, UAE and Turkey.

Although much was made of WiMAX network deployments in previous years, the emerging mobile broadband products from the region’s competitive mobile markets offer the most likely source of significant competition moving forward.

Underpinning the focus on mobile broadband is the need by mobile operators to develop new revenue growth opportunities as mobile voice markets reach maturity. In many instances the downlink speeds advertised by the mobile operators which have deployed HSPA or LTE networks is higher that offered by competing ADSL offerings.

Growing Internet usage across the Middle East is highlighting the under-representation of Arabic content online. This has been officially recognised by regulators, with some such as Qatar’s ictQATAR endeavouring to establish digital media hubs to cater for the impending demand. In the broadcasting space, telecom operators are emulating their global counterparts by launching IPTV offerings, which in many instances face tough competition from the region’s flourishing Direct-to-Home (DTH) satellite TV sector.

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. Bahrain
  • 1.1 Broadband access market
    • 1.1.1 Overview
    • 1.1.2 Asymmetrical Digital Subscriber Line (ADSL)
    • 1.1.3 Fibre to the Home (FttH)
    • 1.1.4 Wireless broadband
    • 1.1.5 VoIP
  • 1.2 Digital broadcasting
    • 1.2.1 Satellite TV
• 2. Iran
  • 2.1 Broadband access market
    • 2.1.1 Overview
    • 2.1.2 Broadband subscriber forecasts
    • 2.1.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 2.1.4 Wireless (fixed) broadband
  • 2.2 Digital media overview
    • 2.2.1 2009 Presidential elections and follow-up
  • 2.3 Digital broadcasting
    • 2.3.1 Overview of broadcasting market
    • 2.3.2 Satellite TV
• 3. Iraq
  • 3.1 Broadband access market
    • 3.1.1 Overview
    • 3.1.2 Broadband and Internet subscriber forecasts
    • 3.1.3 Wireless broadband
  • 3.2 Digital media overview
• 4. Israel
  • 4.1 Broadband access market
    • 4.1.1 Overview
    • 4.1.2 Broadband and Internet statistics
    • 4.1.3 ADSL and cable networks
    • 4.1.4 Fibre-to-the-Home (FttH)
    • 4.1.5 WiFi
    • 4.1.6 WiMAX
  • 4.2 Digital media overview
    • 4.2.1 Walla! Communications Ltd
    • 4.2.2 Nana
  • 4.3 Digital broadcasting
    • 4.3.1 Overview of the broadcasting market
    • 4.3.2 Regulatory issues
    • 4.3.3 Cable TV
    • 4.3.4 Satellite TV – Yes TV
    • 4.3.5 Digital Terrestrial TV (DTTV)
    • 4.3.6 IPTV
    • 4.3.7 Video-on-Demand (VoD)
    • 4.3.8 High Definition TV (HDTV)
• 5. Jordan
  • 5.1 Broadband access market
    • 5.1.1 Overview
    • 5.1.2 Broadband subscriber forecasts
    • 5.1.3 ISP market
    • 5.1.4 Asymmetrical Digital Subscriber Line (ADSL)
    • 5.1.5 Wireless (fixed) broadband
  • 5.2 Digital media overview
    • 5.2.1 Maktoob Group
    • 5.2.2 Jabbar Internet Group
    • 5.2.3 Jeeran
    • 5.2.4 Watwet/TootCorp
  • 5.3 Digital broadcasting
    • 5.3.1 Broadcasting market overview
    • 5.3.2 Jordan Media City (JMC)
    • 5.3.3 Jordan Television (JTV)
    • 5.3.4 Rubicon Group
    • 5.3.5 IPTV
• 6. Kuwait
  • 6.1 Broadband access market
    • 6.1.1 Overview
    • 6.1.2 Broadband subscriber forecasts
    • 6.1.3 ISP market
    • 6.1.4 Asymmetrical Digital Subscriber Line (ADSL)
    • 6.1.5 Wireless broadband
    • 6.1.6 VoIP
  • 6.2 Digital media overview
  • 6.3 Digital broadcasting
    • 6.3.1 Overview of broadcasting market
• 7. Lebanon
  • 7.1 Broadband access market
    • 7.1.1 Overview
    • 7.1.2 Broadband subscriber forecasts
    • 7.1.3 Data service providers
    • 7.1.4 ISP market
    • 7.1.5 Asymmetrical Digital Subscriber Line (DSL)
    • 7.1.6 Cable modems
    • 7.1.7 Wireless broadband
    • 7.1.8 VoIP
    • 7.1.9 Triple play
  • 7.2 Digital media overview
    • 7.2.1 Woopra
  • 7.3 Digital broadcasting
    • 7.3.1 Overview
    • 7.3.2 Broadcasting regulation
    • 7.3.3 Free-to-Air (FTA) and satellite TV
    • 7.3.4 Pay TV
• 8. Oman
  • 8.1 Broadband access market
    • 8.1.1 Overview
    • 8.1.2 Broadband subscriber forecasts
    • 8.1.3 Asymmetric Digital Subscriber Line (ADSL)
    • 8.1.4 Fibre to the Home (FttH)
    • 8.1.5 Wireless broadband
  • 8.2 Digital media overview
    • 8.2.1 Knowledge Oasis Muscat
  • 8.3 Digital broadcasting
    • 8.3.1 Overview of the broadcasting market
• 9. Qatar
  • 9.1 Broadband access market
    • 9.1.1 Overview
    • 9.1.2 Broadband forecasts
    • 9.1.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 9.1.4 Fibre-to-the-Home (FttH)
    • 9.1.5 Wireless Broadband
    • 9.1.6 Triple play
    • 9.1.7 Voice over Internet Protocol (VoIP)
  • 9.2 Digital broadcasting
    • 9.2.1 Overview of broadcasting market
    • 9.2.2 IPTV
    • 9.2.3 Al Jazeera
• 10. Saudi Arabia
  • 10.1 Broadband access market
    • 10.1.1 Overview
    • 10.1.2 Broadband forecasts
    • 10.1.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 10.1.4 Fibre-to-the-Home (FttH)
    • 10.1.5 Broadband powerline (BPL)
    • 10.1.6 Wireless broadband
  • 10.2 Digital media overview
    • 10.2.1 Social media
  • 10.3 Digital Broadcasting
    • 10.3.1 Overview of broadcasting market
    • 10.3.2 Satellite-based digital Pay TV
• 11. Syria
  • 11.1 Broadband access market
    • 11.1.1 Overview
    • 11.1.2 Broadband subscriber forecasts
    • 11.1.3 ISP market
    • 11.1.4 Wireless broadband
  • 11.2 Digital media overview
  • 11.3 Digital broadcasting overview
• 12. Turkey
  • 12.1 Broadband access market
    • 12.1.1 Overview
    • 12.1.2 Asymmetrical Digital Subscriber Lines (ADSL)
    • 12.1.3 Cable modems
    • 12.1.4 Fibre-to-the-Home (FttH) networks
  • 12.2 Digital media overview
  • 12.3 Digital broadcasting
    • 12.3.1 Overview of broadcasting market
    • 12.3.2 Broadcasting regulation
    • 12.3.3 Digital TV
• 13. United Arab Emirates
  • 13.1 Broadband and Internet Market
    • 13.1.1 Overview
    • 13.1.2 Broadband statistics
    • 13.1.3 Internet access locations
    • 13.1.4 Fibre to the Home (FttH)
    • 13.1.5 Asymmetrical Digital Subscriber Line (ADSL)
    • 13.1.6 Cable modems
    • 13.1.7 Wireless broadband
  • 13.2 Digital media overview
    • 13.2.1 Tejari
    • 13.2.2 Bayt.com
  • 13.3 Digital broadcasting
    • 13.3.1 Overview of broadcasting market
    • 13.3.2 Digital TV
• 14. Yemen
  • 14.1 Broadband access market
    • 14.1.1 Overview
    • 14.1.2 Broadband subscriber forecasts
    • 14.1.3 Asymmetric Digital Subscriber Line (ADSL)
  • 14.2 Digital broadcasting
    • 14.2.1 Overview
• 15. Glossary of Abbreviations

• Table 1 – Internet users and penetration estimates in Bahrain - 1995 - 2011
• Table 2 – Fixed Internet subscribers in Bahrain - 2000 – 2011
• Table 3 – Broadband subscribers in Bahrain - 2005 - 2010
• Table 4 – Broadband subscribers by access method in Bahrain – 2004 - 2010
• Table 5 – Dial-up Internet subscribers in Bahrain - 2005 - 2010
• Table 6 – Market share of Internet and broadband by access method in Bahrain – 2004 - 2010
• Table 7 – Broadband subscribers by access speed in Bahrain – 2007 - 2009
• Table 8 – Business broadband subscribers by access method in Bahrain – 2004 - 2009
• Table 9 – Broadband monthly ARPU in Bahrain – 2007 - 2009
• Table 10 – Internet users and penetration estimates in Iran – 1996 - 2011
• Table 11 – Fixed broadband subscribers in Iran – 2000 – 2010
• Table 12 – Household PC penetration in Iran – 2002 - 2011
• Table 13 – Forecast broadband subscribers in Iran – higher growth scenario – 2011, 2015; 2020
• Table 14 – Forecast broadband subscribers in Iran – lower growth scenario – 2011, 2015; 2020
• Table 15 – Internet user penetration and estimates in Iraq – 2001 – 2011
• Table 16 – Fixed broadband subscribers and estimates in Iraq – 2006 – 2011
• Table 17 – Internet users, penetration and household penetration estimates in Israel – 1997 - 2011
• Table 18 – Fixed broadband subscribers, annual change and household penetration in Israel – 2001 - 2011
• Table 19 – ADSL and cable networks in Israel – subscribers and market share – 2005 - 2011
• Table 20 – Bezeq broadband subscriber ARPU in Israel – 2005 - 2011
• Table 21 – NetVision broadband subscribers in Israel – 2006 - 2011
• Table 22 – Household PC penetration in Israel – 2002 - 2011
• Table 23 – YES revenue and profit in Israel – 2007 - 2011
• Table 24 – YES satellite TV subscribers, market share and ARPU in Israel – 2002 - 2011
• Table 25 – Internet users and penetration rate in Jordan – 1995 - 2011
• Table 26 – Internet subscribers and penetration rate in Jordan – 1999 - 2011
• Table 27 – Internet subscribers by access method in Jordan – 2009 - 2010
• Table 28 – Umniah broadband subscribers in Jordan – 2009 - 2011
• Table 29 – DSL subscribers in Jordan - 2001 - 2010
• Table 30 – Wi-tribe financial data in Jordan – 2009 – 2011
• Table 31 – Wi-tribe ARPU in Jordan – 2011
• Table 32 – Facebook data for Jordan – December 2010
• Table 33 – JRTVC revenue in Jordan – 2005 - 2007
• Table 34 – Internet user and penetration estimates in Kuwait – 1995 - 2011
• Table 35 – Internet subscribers in Kuwait - 2003 - 2011
• Table 36 – Fixed Broadband subscribers in Kuwait - 2001 - 2011
• Table 37 – Household PC penetration in Kuwait – 2002 - 2011
• Table 38 – Internet user and penetration estimates in Lebanon – 1995 - 2011
• Table 39 – Fixed Internet subscribers in Lebanon – 2001 - 2011
• Table 40 – Fixed broadband subscribers and penetration in Lebanon – 2002 - 2011
• Table 41 – ADSL subscribers in Lebanon – 2006 - 2011
• Table 42 – Household PC penetration in Lebanon – 2002 - 2011
• Table 43 – Forecast broadband subscribers in Lebanon – higher growth scenario – 2011, 2015; 2020
• Table 44 – Forecast broadband subscribers in Lebanon – lower growth scenario – 2011, 2015; 2020
• Table 45 – Facebook data for Lebanon – December 2010
• Table 46 – Internet users and penetration estimates in Oman – 1998 - 2011
• Table 47 – Fixed-line Internet subscribers in Oman – 2000 - 2011
• Table 48 – Fixed broadband subscribers in Oman – 2004 - 2011
• Table 49 – ADSL subscribers in Oman – 2005 - 2011
• Table 50 – Forecast broadband subscribers in Oman – higher growth scenario – 2011, 2015; 2020
• Table 51 – Forecast broadband subscribers in Oman – lower growth scenario – 2011, 2015; 2020
• Table 52 – Facebook data for Oman – December 2010
• Table 53 – Internet users and penetration estimates in Qatar – 1995 - 2011
• Table 54 – Internet subscribers in Qatar - 1999 - 2011
• Table 55 – Fixed broadband subscribers in Qatar – 2003 – 2011
• Table 56 – Household PC penetration in Qatar – 2007 - 2011
• Table 57 – Forecast broadband subscribers in Qatar – higher growth scenario – 2011, 2015; 2020
• Table 58 – Forecast broadband subscribers in Qatar – lower growth scenario – 2011, 2015; 2020
• Table 59 – Qtel triple play subscribers in Qatar – 2008 - 2011
• Table 60 – Internet users and penetration estimates in Saudi Arabia – 1995 - 2011
• Table 61 – Broadband subscribers and household penetration in Saudi Arabia – 2001 - 2011
• Table 62 – Household PC penetration in Saudi Arabia – 2002 - 2011
• Table 63 – Forecast broadband subscribers in Saudi Arabia – higher growth scenario – 2011, 2015; 2020
• Table 64 – Forecast broadband subscribers in Saudi Arabia – lower growth scenario – 2011, 2015; 2020
• Table 65 – Facebook data for Saudi Arabia – December 2010
• Table 66 – Internet user and penetration rate in Syria – 1999 - 2011
• Table 67 – Fixed Internet subscribers and penetration rate in Syria – 1999 - 2011
• Table 68 – Household PC penetration in Syria – 2002 - 2011
• Table 69 – Fixed broadband subscribers in Syria – 2004 - 2011
• Table 70 – Internet user and penetration rate estimates in Turkey – 1998 - 2011
• Table 71 – Broadband subscribers and penetration in Turkey – 2001 - 2011
• Table 72 – Broadband subscribers by access technology in Turkey – 2004 - 2011
• Table 73 – ISP market share in Turkey – June 2011
• Table 74 – Turk Telekom ADSL ARPU and proportion of total fixed-line revenue in Turkey – 2007 - 2011
• Table 75 – Audience share by channel in Turkey – January – June 2011
• Table 76 – Satellite pay TV subscribers per operator in Turkey – 2010 - 2011
• Table 77 – Internet user and penetration estimates in United Arab Emirates – 1995 - 2011
• Table 78 – Internet subscribers and penetration in United Arab Emirates – 2000 - 2011
• Table 79 – Internet and broadband subscribers by access method in United Arab Emirates – 2000 - 2011
• Table 80 – Residential and business Internet and broadband subscribers in United Arab Emirates – 2007 - 2010
• Table 81 – Total Internet revenue and Internet and broadband ARPU in United Arab Emirates – 2007 - 2010
• Table 82 – Facebook data for United Arab Emirates – December 2010
• Table 83 – Online activity by individuals in United Arab Emirates – 2010
• Table 84 – du IPTV subscribers in United Arab Emirates – 2008 - 2011
• Table 85 – Facebook data for Yemen – December 2010
• Table 86 – Internet user and penetration estimates in Yemen – 1997 - 2011
• Table 87 – Households with Internet access in Yemen – 2004 - 2011
• Table 88 – Fixed broadband subscribers in Yemen – 2005 - 2011
• Table 89 – Household PC penetration in Yemen – 2005 - 2011

• Chart 1 – Chart of Fixed Internet Subscribers and Users in Bahrain – 2000 - 2011
• Chart 2 – Internet subscribers and users in Jordan – 2000 - 2011

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