|
||||||||||
|
<< Back to main page
Seizing the Broadband Opportunity: IDC on Developments in GCC
Deepika Dudeja Mital, Research Analyst, Telecommunications, IDC MEA
IDC-MEA's Telecommunications department has been following the broadband Internet developments in the Gulf Cooperation Council (GCC), which have gathered significant momentum over the last year. The six GCC countries of Saudi Arabia, United Arab Emirates, Kuwait, Oman, Bahrain and Qatar not only represent some of the world's wealthiest economies but also some of the fastest growing broadband markets. Even given the torrid growth, much opportunity remains: In 2007, GCC broadband connections increased by almost 100% to cross the one million mark, while per capita broadband penetration doubled from 1.6% in 2006 to 3.2%. IDC has recently published a GCC Broadband Landscape report examining the current status and competitive situation in each of these six GCC markets. Over the next months, we will also publish a series of services forecast databases, analyzing different segments of these markets and future expectations. The growth of broadband services in the GCC derives from increased competition, improved infrastructure, and the debut of newer access technologies. It is particularly interesting to note the scope of changes in Bahrain, which is now almost all broadband and has even marked the entry of nationwide WiMax services. Saudi Arabia, the largest GCC market, witnessed a jump of over 200% in its broadband connections and a more than tenfold increase in retail bandwidth. However, the progress is far from evenly distributed, as broadband still accounts for a dismal proportion of the overall Internet market in Kuwait (17%) and Oman (20%). In terms of competition, Saudi Arabia is one of the top markets, with the top four ISPs splitting a 70% share of the total market and several smaller companies serving the rest. Kuwait and Bahrain also boast liberalized markets and several new ISPs. On the other side, Qatar and Oman still stand strong as monopolies while UAE remains somewhere in between despite a new internet service entrant. Demand-side incentives also have promise. While there have been certain initiatives to increase the amount of Arabic and locally relevant content on the Internet, much more can be done to encourage Internet use among GCC users. Further growth is likely to continue as service providers expand their coverage areas, lower their prices to penetrate the mass market, improve service quality, and introduce more appealing online content and services. In addition, e-government initiatives coupled with efforts by regulators and online content providers would also contribute to the spread of broadband in the region. -- -- -- -- -- -- -- -- -- -- -- -- IDC offers data-backed strategic advice for service providers operating in CEE and MEA through its Central and Eastern European and Middle East and African Carrier Transformation Strategies series and through customized research and consulting engagements. For more information, please contact Tatiana Hinova (thinova@idc.com; +420 221 423 140) or John Gole (jgole@idc.com; +420 221 423 140.) << Back to main page |
||||||||||
|
Recommend This Newsletter to a Friend or Colleague Please unsubscribe me If you haven't already, register at our Web site to know what's happening and to help us improve our products and services. You can register at http://www.idc-cema.com/index.php?wsp=36 IDC CEMA Malé náměstí 13 110 00 Praha 1 Czech Republic Tel. +420 2 2142 3140 Fax. +420 2 2142 3150 www.idc-cema.com www.idc.com |
||||||||||