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Telecommunications Price Benchmarking
for Arab Countries 2009
Final Report from the AREGNET Price Benchmarking StudyJune 2009
Prepared by:Name Halvor SannæsPosition Director Tariff ServicesT l 4 3 02 3400
www.Teligen.com© Teligen, 2009. All rights reserved.
Tel +47 3702 3400Email [email protected]
Acknowledgements
Teligen wishes to thank:– The AREGNET members for feedback and support in the collection
of tariff information and to TRA Bahrain for commissioning and coordinating the study on behalf of AREGNET
– The operators who have contributed with additional tariff information
Page 2
Contents of this report
Background on this study and the basket concept 4Results from the PSTN basket 6Results from the Mobile basket 17Results from the Leased Line basket 24Results from the Broadband basket 33Results from the call price comparison 42Summary of findings 50Reference information and acronyms 51Reference information and acronyms 51
Page 3
The context
The benchmarking study was originally initiated by TRA Bahrain in 2008. This update for 2009 was commissioned by TRA Bahrain on behalf of AREGNET.In increasingly competitive markets it is important for regulators to be able to track the evolution of prices and analyze the impact of price change and competition on theevolution of prices and analyze the impact of price change and competition on the effective prices paid by consumers. This study allows Arab countries to compare the price levels within and between countries, and also to compare with the OECD countries. Data presented in this report is comparable with data from the 2008 report. However, please note that exchange rates
diff tare different.The benchmarking covers the following services:
– Fixed voice (PSTN) (OECD basket equivalent)– Mobile telephony (OECD basket equivalent)Mobile telephony (OECD basket equivalent)– Leased Lines (OECD basket equivalent)– Broadband ADSL (Teligen basket)– Call cost for specific types of calls
The methodologies for fixed and mobile telephony and leased lines are identical to the OECD Price Benchmarking baskets, with minor changes. A separate document explaining the methodology used in this study is available.The data was collected by Teligen from public sources on the Internet. Data has
b tl b d t ti l l t f t
Page 4
subsequently been passed to national regulators for comments.
The “Basket” method for price benchmarking
Tariff informationTariff information
Tariff informationTariff information
Combine tariff information with a usage profile in a “basket calculation engine” to calculatecost of individual calls and tariff elements.
Basket results
Tariff information
Usage profile(“Basket”)
as et esu tsper tariff
(in national currency)Basket results
per tariff(in national currency)
Basket resultsper tariff
(in national currency)Basket results
per tariffAdjust costs for tax, currency and purchasingpower to create comparable results.
Tax and exchange rateadjustments.
Purchasing Power.
(in national currency)
Benchmarking resultsfor all tariffs
(i )
The benchmarking results show the end usercost of using the service according to the
Page 5
(in common currency) usage profile, in a consistent format.
Fixed voice (PSTN) basket, as defined by the OECD
Five different basket definitions:– Low usage, medium usage and high usage for residential users– SoHo usage (single user) and SME usage (30 users) for business
The baskets define the volumes and the structure of usageThe baskets define the volumes and the structure of usage– Volume and distribution of calls to different destinations– Distribution and duration of calls at different times of day
Volumes Call proportions Call durations (minutes)Total callsper month Fixed line Mobile International Fixed Mobile International
Tariffs from the incumbent operator in each country
Residential Low 50 76.0% 19.0% 5.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2Residential Medium 100 75.0% 23.0% 2.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2Residential High 200 65.0% 31.0% 4.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2Business Small 150 67.0% 29.0% 4.0% 1.9 - 3.1 1.6 - 1.7 2.9 - 3.9Business SME 233 72.0% 20.0% 8.0% 1.9 - 3.1 1.6 - 1.7 2.9 - 3.9
Tariffs from the incumbent operator in each country– Several tariff packages can be covered for each operator
Tariff information included in basket calculation:– Fixed charges for installation and rental– Usage charges covering local through to national calls, calls to mobiles, and
international calls to other AREGNET countries plus a few other destinations
The results show the lowest cost option for each operator
Page 6
Fixed voice (PSTN) data issues
Tariff data was researched from operator websites in the first weeks of January 2009.– Additional clarifications have been sought from operators and regulatorsAdditional clarifications have been sought from operators and regulators.– Regulators have been offered the opportunity to comment on the tariff
information, and on this report, prior to final publication.Due to lack of published data, and lack of feedback, no data is available for:– Comoros– Iraq
K it– Kuwait– Sudan
Part of data is missing for:Syria (no prices for calls to mobile)– Syria (no prices for calls to mobile)
– Yemen (no prices for national calls and fixed line)The analysis covers 37 tariffs from the incumbent operators in 18 countries
Page 7
in 18 countries
Low usage basket results
Most Arab countries have a lowfixed cost, and “average to high” usage cost.
OECD Residential basket, Low Usage
21.4924.59
25 53
UAE, EtisalatTunisia, Tunisie Telecom
B h i B t l
January 2009OECD simple average
usage cost.
International calls are particularlyexpensive (see international basket).For Arab countries the international
25.53
25.7526.52
29.4232.55
34.37
36 99
Bahrain, BatelcoSyria, Syrian Telecom *
Qatar, QtelYemen, Tele Yemen *Libya, Libya Telecom
Saudi Arabia, Saudi TelecomJordan Orange
Arab simple average
For Arab countries the internationalusage is 62% of the total usage, whilefor the OECD it is 31%.
36.9941.28
42.81
43.1751.11
62.7570 53
Jordan, OrangeAlgeria, Algerie Telecom
Lebanon, OgeroOman, Omantel
Egypt, Egypt TelecomSomalia, Somali TelecomMorocco Maroc Telecom 70.53
73.49
79.3398.16
19.46
22.3944 77
Morocco, Maroc TelecomMauritania, Mauritel
Djibouti, Djibouti TelecomPalestine, Paltel
Turkey, Turk TelecomSweden, Telia
USA V i NY + AT&T
Tw o cheapest OECD countries
44.77
48.4331.02
45.63
- 10 20 30 40 50 60 70 80 90 100
USA, Verizon, NY + AT&TCzech Rep.
OECD simple averageArab simple average
Currency : USD/PPP per month, VAT Included
Tw o most expensive OECD countries
C t i k d * d t h
Page 8The “average” lines are indications of the averages across OECD countries and Arab countries covered in this study
y p ,
Fixed UsageCountries marked * do not havecomplete tarif f data.
Medium usage basket results
OECD Residential basket, Medium Usage
23.5324.58
24 97
Yemen, Tele Yemen *UAE, Etisalat
Syria Syrian Telecom *
January 2009OECD simple average
24.97
28.6432.27
37.0143.02
43.33
49 28
Syria, Syrian Telecom Qatar, Qtel
Bahrain, BatelcoTunisia, Tunisie Telecom
Saudi Arabia, Saudi TelecomLibya, Libya Telecom
Jordan Orange
Arab simple average
49.2855.01
58.97
62.5264.13
71.2679 17
Jordan, OrangeOman, OmantelLebanon, Ogero
Egypt, Egypt TelecomAlgeria, Algerie Telecom
Somalia, Somali TelecomDjibouti Djibouti Telecom 79.17
86.71
103.34142.16
28.32
29.2458 49
Djibouti, Djibouti TelecomMorocco, Maroc Telecom
Mauritania, MauritelPalestine, Paltel
Sweden, TeliaKorea, KT
Australia Telstra
Tw o cheapest OECD countries
58.49
67.6441.32
56.86
- 20 40 60 80 100 120 140
Australia, TelstraCzech Rep.
OECD simple averageArab simple average
Currency : USD/PPP per month, VAT Included
Tw o most expensive OECD countries
Countries marked * do not have
Page 9The “average” lines are indications of the averages across OECD countries and Arab countries covered in this study
Fixed UsageCountries marked * do not havecomplete tarif f data.
High usage basket results
With high usage only three ofthe Arab countries can compare withthe average OECD cost.
OECD Residential basket, High Usage
61.5265.32
70 44
UAE, EtisalatQatar, Qtel
Syria Syrian Telecom *
January 2009OECD simple average
The low fixed cost will, combined withthe relatively high usage cost, createa situation where competing operatorsmay easily attract high volume users
70.44
75.1778.70
84.1194.13
98.92
111 02
Syria, Syrian Telecom Bahrain, Batelco
Saudi Arabia, Saudi TelecomTunisia, Tunisie Telecom
Yemen, Tele Yemen *Jordan, OrangeOman Omantel
Arab simple average
may easily attract high volume users.Buying the low cost line from the incumbent operator, and cheapercalls from an indirect provider, may be a tempting alternative when usage
111.02119.61
129.12
132.20138.66
142.19154 65
Oman, OmantelLebanon, Ogero
Libya, Libya TelecomAlgeria, Algerie TelecomMorocco, Maroc Telecom
Somalia, Somali TelecomEgypt Egypt Telecom be a tempting alternative when usage
is high.This may put the incumbent operatorin a difficult position.
154.65
182.65
250.38344.78
32.30
42.43102 12
Egypt, Egypt TelecomMauritania, Mauritel
Djibouti, Djibouti TelecomPalestine, Paltel
Canada, BellSweden, Telia
Mexico Telmex
Tw o cheapest OECD countries
102.12
118.5269.21
125.76
- 50 100 150 200 250 300 350
Mexico, TelmexCzech Rep.
OECD simple averageArab simple average
Currency : USD/PPP per month, VAT Included
Tw o most expensive OECD countries
Countries marked * do not have
Page 10The “average” lines are indications of the averages across OECD countries and Arab countries covered in this study
Fixed UsageCountries marked * do not havecomplete tarif f data.
SOHO basket results
The profile of the “Small Office /Home Office” basket is largely similarto the Medium Residential basket.The main difference is higher overall
OECD Business basket, SOHO
28.1633.93
37 34
Syria, Syrian Telecom *Yemen, Tele Yemen *
Tunisia Tunisie Telecom
January 2009OECD simple average
A b i le a d e e ce s g e o e a
usage and more international calls.
The difference between the Arab andthe OECD averages is smaller for
37.34
39.3243.91
48.0359.25
59.27
60 18
Tunisia, Tunisie TelecomBahrain, Batelco
UAE, EtisalatSaudi Arabia, Saudi Telecom
Algeria, Algerie TelecomOman, OmantelJordan Orange
Arab simple average
gbusiness services than for residentialservices.
60.1862.08
68.88
70.6971.74
83.8284 35
Jordan, OrangeLebanon, Ogero
Qatar, QtelLibya, Libya TelecomEgypt, Egypt Telecom
Morocco, Maroc TelecomSomalia Somali Telecom 84.35
91.24
112.39178.53
26.12
29.1567 36
Somalia, Somali TelecomDjibouti, Djibouti Telecom
Mauritania, MauritelPalestine, Paltel
Denmark, TDCKorea, KT
Czech Rep Telefonica O2
Tw o cheapest OECD countries
67.36
73.0351.95
62.76
- 20 40 60 80 100 120 140 160 180 200
Czech Rep., Telefonica O2Mexico
OECD simple averageArab simple average
Currency : USD/PPP per month, VAT Excluded
Tw o most expensive OECD countries
Countries marked * do not have
Page 11The “average” lines are indications of the averages across OECD countries and Arab countries covered in this study
Fixed UsageCountries marked * do not havecomplete tarif f data.
SME basket results
The SME basket covers 30 lines and 30 users. Usage per useris higher than with the SOHObasket
OECD Business basket, SME
1,899.142,115.65
2 137 58
Tunisia, Tunisie TelecomSyria, Syrian Telecom *
UAE Etisalat
January 2009OECD simple average
A b i l basket.2,137.58
2,201.682,261.94
2,803.352,844.84
2,923.86
2 947 11
UAE, EtisalatBahrain, Batelco
Saudi Arabia, Saudi TelecomAlgeria, Algerie Telecom
Jordan, OrangeQatar, Qtel
Lebanon Ogero
Arab simple average
2,947.113,060.37
3,167.18
3,506.193,715.62
4,004.054 518 98
Lebanon, OgeroOman, Omantel
Yemen, Tele Yemen *Libya, Libya Telecom
Morocco, Maroc TelecomSomalia, Somali Telecom
Egypt Egypt Telecom 4,518.98
5,995.38
6,772.449,802.02
960.54
1,005.503 077 09
Egypt, Egypt TelecomMauritania, Mauritel
Djibouti, Djibouti TelecomPalestine, PaltelNorway, Telenor
Denmark, TDCUK BT
Tw o cheapest OECD countries
3,077.09
3,273.642,048.62
3,493.30
- 2,500 5,000 7,500 10,000
UK, BTMexico
OECD simple averageArab simple average
Currency : USD/PPP per month, VAT Excluded
Tw o most expensive OECD countries
Countries marked * do not have
Page 12The “average” lines are indications of the averages across OECD countries and Arab countries covered in this study
Fixed UsageCountries marked * do not havecomplete tarif f data.
International call basket
The international basket gives the weighted average of the cost of one call, weighted by:
Destination: 22 Arab countries 4 Western and 4 Eastern countries– Destination: 22 Arab countries, 4 Western and 4 Eastern countries– Time of day: Residential basket with 25% peak time and 75% off-peak
timeDuration: Peak calls of 3 minutes off peak calls of 5 minutes– Duration: Peak calls of 3 minutes, off-peak calls of 5 minutes
The destinations are weighted based on originating and destination countries:
F T N Af i ME W t ME E t E Af i E N A i A iFrom To N. Africa ME West ME East E. Africa Europe N. AmericaAsiaNorth Africa 30% 10% 10% 10% 20% 10% 10%ME West 10% 35% 10% 5% 20% 15% 5%ME East 10% 10% 35% 5% 5% 15% 20%East Africa 10% 10% 20% 30% 10% 10% 10%
North Africa Algeria Libya Mauritania Morocco TunisiaNorth Africa Algeria Libya Mauritania Morocco TunisiaME West Jordan Lebanon Palestine SyriaME East Bahrain Iraq Kuwait Oman Qatar Saudi UAE YemenEast Africa Comoros Djibouti Egypt Somalia SudanEurope France UK SpainN. America USAAsia India Phillipines Japan Australia
Page 13
Asia India Phillipines Japan Australia
International call basket
International Residential Basket
1.762.30
2 57
Saudi Arabia, Saudi TelecomJordan, Orange
Morocco Maroc Telecom
January 2009OECD simple average
International calls out of the Arab countries are 5 times as expensive
2.57
2.642.69
2.692.94
3.02
3 03
Morocco, Maroc TelecomLebanon, Ogero
Qatar, QtelTunisia, Tunisie TelecomAlgeria, Algerie Telecom
Bahrain, BatelcoUAE Etisalat
Arab simple average
pas the OECD countries on average,and even the cheapest Arab countryis 20 times more expensive than the “best in class” OECD country.
3.033.35
4.74
4.984.99
5.257 54
UAE, EtisalatOman, Omantel
Syria, Syrian Telecom *Libya, Libya Telecom
Mauritania, MauritelSomalia, Somali Telecom
Egypt Egypt Telecom y7.54
7.74
10.5416.76
0.15
0.212 71
Egypt, Egypt TelecomYemen, Tele Yemen *
Palestine, PaltelDjibouti, Djibouti Telecom
Germany, Deutsche TelekomCanada, Bell
Korea KT
Tw o cheapest OECD countries
2.71
2.740.97
4.93
- 2 4 6 8 10 12 14 16 18 20
Korea, KTMexico
OECD simple averageArab simple average
Currency : USD/PPP per call, VAT Included
Tw o most expensive OECD countries
Countries marked * do not have
Page 14The “average” lines are indications of the averages across OECD countries and Arab countries covered in this study
Fixed UsageCountries marked * do not havecomplete tarif f data.
Fixed voice basket results 2008 – 2009 (based on national currency)
Price changes 2008 - 2009:– Algeria: Line rental change– Egypt: Significant changes with higher line
rental, higher local call charges, and lower charges for calls to mobiles.
PSTN price change 2008 - 2009
-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30%
Algeria
B h i– Jordan: No actual increase, 2009 data
includes more international destinations and is thus a better reflection of the actual basket cost.
– Lebanon: Lower installation charge, and off-
Bahrain
Djibouti
Egypt
Jordan
peak call charge to fixed lines.– Morocco: New range of packages, higher line
rental, simpler call charges to fixed, cheaper international calls.
– Oman: New packages with higher line rental,
Lebanon
Libya
Mauritania
Moroccolong distance charges removed
– Qatar: Increase in call charges to mobiles.– Saudi Arabia: Reduction in international call
charges.– UAE: Minor change in residential international
Morocco
Oman
Palestine
Qatar
UAE: Minor change in residential international call charges, new business call charges.
– Libya was not included in the 2008 data.The gap between the Arab average and the OECD average has widened over the last year for residential users primarily because the prices in
Saudi Arabia
Somalia
Syria
Tunisia
LowMediumHighSOHO
Page 15
residential users, primarily because the prices in OECD countries have gone down more than in Arab countries.
UAE
Yemen
SMERes. Intn.
Price change analysis is based on prices in nationalcurrency for each country.
Observations from PSTN basket resultsThe cheapest countries throughout are : (*)
– UAE, Tunisia, Bahrain, Qatar, Saudi Arabia• The exact order of these may vary with usage level• This list is based on average ranking across all five baskets, residential and businessg g ,
Most of these countries have total costs below or just above the OECD average for all baskets
– Generally the Arab countries in North Africa are more expensive than the Arab countries in the Middle East.
The price range for the Arab countries (cheapest to most expensive) is wider than for the OECD countries
– The cheapest OECD country is below the cheapest Arab country– The most expensive Arab country is significantly more expensive than the most expensive– The most expensive Arab country is significantly more expensive than the most expensive
OECD country
Most of the Arab countries have fixed costs well below the OECD countries, causing the usage element to dominate. This makes the overall cost grow quicker with increasing usage, something that will discourage growth in usage.Even with significantly lower fixed cost the overall cost of using the service is higher in the Arab countries than in the OECD countries. There is a clear lack of rebalancing in most Arab countries, where the usage revenue covers a significant portion of the fixed line cost for the operators.
Page 16
g p pInternational calls are significantly more expensive than in OECD countries
* Countries with gaps in the tariff information are not considered.
Mobile basket , as defined by the OECD
Three different basket definitions:– Low usage, medium usage and high usage– The low usage results will include both pre- and post-paid tariff packages
Th b k t d fi th l d th t t fThe baskets define the volumes and the structure of usage– Volume and distribution of calls to different destinations– Distribution of calls at different times of day
Destinations Local NationalMobile On-net
Mobile Off-net
Voice mail
SMS On-net
SMS Off-net
Calls / messagesper month Voice SMS MMS
– Call durations are in the range of 1.4 to 1.9 minutes per call
Destinations Local National On-net Off-net mail On-net Off-netLow usage 15.00% 7.00% 48.00% 22.00% 8.00% 65.00% 35.00%Medium usage 14.00% 7.00% 48.00% 24.00% 7.00% 65.00% 35.00%High usage 13.00% 7.00% 47.00% 26.00% 7.00% 65.00% 35.00%
per month Voice SMS MMSLow usage 30 33 0.67Medium usage 65 50 0.67High usage 140 55 1.00
1.4 to 1.9 minutes per callTariffs from the two dominant operators in each country
– Several tariff packages are covered for each operatorTariff information covers:
– Fixed charges for connection and rental
ToD Peak Off-peak WeekendLow usage 48.00% 25.00% 27.00%Medium usage 50.00% 24.00% 26.00%High usage 60.00% 19.00% 21.00%
Fixed charges for connection and rental– Calls to fixed network, on-net and off-net mobile, and international calls to other AREGNET
countries plus a few others (see international basket on earlier page)– Charges for SMS, MMS and voicemail calls
The results show the lowest cost option for each operator
Page 17
p pThe international calls are added to the OECD basket definition for this study.
Mobile tariff data issues
Tariff data was researched from operator websites in the first weeks of January 2009.– Additional clarifications have been sought from the operators andAdditional clarifications have been sought from the operators and
regulators.– Regulators have been offered the opportunity to comment on the tariff
information and the draft version of this report.N t iff i f ti il bl fNo tariff information available for:– Djibouti– Somalia
Syria– Syria– One operator only for Comoros, Palestine, Qatar(*) and Mauritania
Part of tariff information missing for:– Iraq (International call prices for AsiaCell)– Iraq (International call prices for AsiaCell)– Kuwait (international call prices for Zain)
Otherwise two operators are covered for each countryA total of 248 tariff packages covered for 32 operators in 19 countries
Page 18
A total of 248 tariff packages covered for 32 operators in 19 countries
* There is only one active operator in Qatar.
Low usage mobile basket results
For the Low usage basketboth pre- and post-paidtariffs are included.The cheapest option is
Low user basket
10.3610.5110.6811.2011 63
Jordan, Orange *UAE, du *
UAE, Etisalat *Iraq, Korek *
Kuwait Zain *
OECD average
Pre-Paid and Post-paid
The cheapest option isselected regardless oftariff type.
Most of the tariffs shown in
11.6311.77
13.2613.9914.2014.4514.6615.01
Kuwait, Zain *Jordan, Zain *
Bahrain, Zain BH *Saudi Arabia, Mobily *
Bahrain, Batelco *Oman, Oman Mobile *
Kuwait, Wataniya *Sudan, MTN *
Arab average
Arab average - Intn
Most of the tariffs shown inthis graph are pre-paid (marked with an *).
15.3916.0016.8817.0417.3618.1018.24
19 71
Oman, Nawras *Sudan, Zain SD *
Tunisia, Tunisie TélécomSaudi Arabia, Al Jawal *
Qatar, Qtel *Tunisia, Tunisiana *
Algeria, Djezzy *Algeria ATM Mobilis *
FixedVoiceMessagesIntn.
The OECD results do not includeInternational calls as theseare not part of the OECDbasket definitions
19.7119.88
22.3723.1223.56
26.0128.03
38.67
Algeria, ATM Mobilis Egypt, Mobinil
Libya, alMadar *Libya, Libyana *Egypt, Etisalat *
Yemen, MTN *Mauritania, Mattel
Comoros, Huribasket definitions.The “Arab average – Intn” line shows the equivalent averagebased on the Arab basket results
47.1648.53
68.5183.5884.22
4.004.45
20.57
Morocco, Meditel *Morocco, IAM
Palestine, Jawwal *Lebanon, Touch *
Lebanon, AlfaDenmark, Sonofon *
Sweden, Tele 2 ComviqSpain, MoviStar OECD results, minimum and maximum
Page 19
25.1412.77
25.13
- 10 20 30 40 50 60 70 80 90 100
p ,USA, AT&T *
OECD simple averageArab simple average
USD/PPP per month including VAT
Medium usage mobile basket resultsMedium user basket
27.0728.4228.8930.28
34 91
UAE, duUAE, Etisalat
Bahrain, Zain BHBahrain, Batelco
Oman Nawras
OECD average
Post-paid
34.9135.4836.9036.9737.9738.3039.4339.81
Oman, NawrasJordan, Orange
Jordan, ZainTunisia, Tunisie Télécom
Oman, Oman MobileTunisia, Tunisiana
Saudi Arabia, MobilySudan, Zain SD
Arab average
Arab average - Intn
39.9640.1640.6442.3142.4842.5643.0544.79
Algeria, DjezzyKuwait, Zain
Egypt, MobinilKuwait, Wataniya
Qatar, QtelAlgeria, ATM Mobilis
Egypt, EtisalatYemen, MTN
FixedVoiceMessagesIntn.
The OECD results do not includeInternational calls as theseare not part of the OECDbasket definitions
45.5247.37
56.4664.78
77.0290.45
111.81112 73
,Saudi Arabia, Al Jawal
Sudan, MTNMorocco, IAM
Mauritania, MattelComoros, Huri
Morocco, MeditelLebanon, Alfa
Lebanon Touch basket definitions.The “Arab average – Intn” line shows the equivalent averagebased on the Arab basket results
112.73129.91
182.26--
7.3710.45
43.44
Lebanon, TouchPalestine, Jawwal
Libya, alMadar - -
Sweden, Tele 2 ComviqFinland, Elisa
Canada, Bell Mobility OECD results, minimum and maximum
Page 20
52.9924.51
55.62
- 20 40 60 80 100 120 140 160 180 200
USA, AT&TOECD simple average
Arab simple average
USD/PPP per month including VAT
High usage mobile basket resultsHigh user basket
42.3442.95
48.0348.3548 71
UAE, EtisalatUAE, du
Jordan, OrangeKuwait, Zain
Bahrain Zain BH
OECD average
Post-paid
48.7151.29
55.0955.5656.7857.1558.9359.77
Bahrain, Zain BHBahrain, Batelco
Oman, NawrasJordan, Zain
Qatar, QtelOman, Oman Mobile
Tunisia, TunisianaSaudi Arabia, Mobily
Arab average
Arab average - Intn
60.6761.13
64.7465.98
70.1370.3570.9572.94
Algeria, DjezzyKuwait, Wataniya
Algeria, ATM MobilisSudan, Zain SD
Egypt, MobinilYemen, MTN
Saudi Arabia, Al JawalTunisia, Tunisie Télécom
FixedVoiceMessagesIntn.
The OECD results do not includeInternational calls as theseare not part of the OECDbasket definitions
76.0076.1376.67
125.94138.67
145.24155.61156 25
,Sudan, MTN
Morocco, IAMEgypt, Etisalat
Mauritania, MattelComoros, Huri
Morocco, MeditelLebanon, Alfa
Lebanon Touch basket definitions.The “Arab average – Intn” line shows the equivalent averagebased on the Arab basket results
156.25213.15
236.64--
13.8814.56
77.91
Lebanon, TouchPalestine, Jawwal
Libya, alMadar - -
Finland, ElisaDenmark, Sonofon
Slovak Republic, T-Mobile OECD results, minimum and maximum
Page 21
78.6737.77
85.41
- 50 100 150 200 250
Spain, MoviStarOECD simple average
Arab simple average
USD/PPP per month including VAT
Mobile basket results 2008 – 2009 (based on national currency)
Changes affecting the mobile basket results:
– Algeria: Many new tariffs– Bahrain: change in some per-paid tariffs
Mobile price change 2008 - 2009-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Algeria
Bahrain Low
MediumBahrain: change in some per paid tariffs elements
– Egypt: Price reductions– Iraq: International call charges reduced– Jordan: Price reductions and changes in
tariffs offered
Comoros
Djibouti
Egypt
Iraq
High
tariffs offered– Kuwait: Changes in tariffs offered– Lebanon: Changes in tariffs offered– Morocco: Price reductions– Oman: Price reductions and new tariffs
P l ti P i t t h
Jordan
Kuw ait
Lebanon
Libya– Palestine: Price structure changes– Qatar: Price reductions and new tariffs– Saudi Arabia: New tariffs– Tunisia: New tariffs– UAE: Pre-paid price structure change
Libya
Mauritania
Morocco
Oman
p p gIn other countries the changes have been minimal.The Arab average has not changed much over the last year, while the OECD average has had a clear
Palestine
Qatar
Saudi Arabia
Sudan
Page 22
OECD average has had a clear decrease. Tunisia
UAE
YemenPrice change analysis is based on prices in nationalcurrency for each country.
Observations from Mobile basket results
The cheapest countries throughout are :– UAE, Jordan, Bahrain, Oman, Kuwait
• The exact order of these may vary with usage level• The exact order of these may vary with usage level• Only UAE is among the top 5 for all baskets• These are largely the same countries that have the best PSTN results
For low usage, with pre-paid packages, only a handful of the Arab O Ccountries have price levels below the OECD average
For medium to high usage, with post-paid packages, most Arab countries are above the OECD averageTh A b t i i 80 100% b th OECDThe average across Arab countries is 80-100% above the OECD average.
Except for the five six most expensive countries the Arab countriesExcept for the five-six most expensive countries, the Arab countries have rather uniform price levels for mobile services.Many operators have very few tariff packages on offer, i.e. do not make any great attempts to capture customers with tailored prices.
Page 23
make any great attempts to capture customers with tailored prices.
Leased Lines basket, as defined by the OECD
Prices for 64kb/s, 2 Mb/s and 34 Mb/s national circuits6 specific distances are used:
– 2 km, 20 km, 50 km, 100 km, 200 km and 500 kmEach distance is weighted in order to calculate a weighted average price for one circuit:
The 3 bitrates are calculated and reported separately.
Distance (km) 2 20 50 100 200 500Weight 35% 20% 15% 20% 5% 5%
p p yWhere the distances in the basket would go beyond the country borders, the weights of those distances will be attributed to the longest available tariff zone.
– For example: In Bahrain a 64 kb/s circuit costs BD 140 regardless of distance. p gThe longest possible circuit distance in Bahrain is approximately 50 km. But the weights for 100 km (20%), 200 km (5%) and 500 km (5%) are still applied to this price as the price for the longest possible circuit in order to cover 100%.
– This may bias the results for small countries with distance-sensitive prices in the sense that a relatively higher proportion of the circuits will be at maximum costsense that a relatively higher proportion of the circuits will be at maximum cost
– Small countries with no distance pricing will be favoured by this scheme.For the Arab country price benchmarking two more bitrates are added:
– 256 kb/s in order to cover a wider range of services relevant for the region, and 155 Mb/s to show the potential for future development.
Page 24
p p– To the extent they are offered in the countries concerned.
Leased Lines data issues
Tariff data was researched from operator websites in the first weeks of January 2009.
Additional clarifications have been sought from the operators and– Additional clarifications have been sought from the operators and regulators.
– Regulators have been offered the opportunity to comment on the tariff information and on the draft report.information and on the draft report.
No price data available for:– Comoros– Iraq– Iraq– Kuwait– Somalia
Sudan– SudanOther countries may have data missing for specific bitrates
Page 25
64 kb/s Leased Lines basket results
64 kb/s circuit prices
96193217
SyriaLibyaEgypt A b217
300325350354
405410
EgyptJordan
LebanonTunisia
Saudi ArabiaAlgeria
Bahrain
Arab average
The OECD data shown representthe lowest and highest prices foundin OECD countries, and the averageacross all 30 OECD countries
410457483484
542555
BahrainQatarUAE
OmanYemen
MoroccoP l ti across all 30 OECD countries.637
1,4101,516
100808
333
PalestineMauritania
DjiboutiIceland
Czech Rep.OECD simple average OECD average
451
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Arab simple average
Monthly prices in US$ PPP, VAT excluded
Page 26
256kb/s Leased Lines basket results
256 kb/s circuit prices
199
564
660
Syria
Egypt
J d 660
672
676
701
788
Jordan
Libya
Lebanon
Tunisia
Bahrain
Arab average
801
827
839
967
995
Algeria
Saudi Arabia
Qatar
Oman
Palestine
1,084
1,129
1,351
2,005
2,175
Yemen
Morocco
UAE
Mauritania
Djibouti
967
- 500 1,000 1,500 2,000 2,500 3,000
Arab simple average
Monthly prices in US$ PPP, VAT excluded
Page 27
Note: No equivalent OECD data exist.
2 Mb/s Leased Lines basket results
2 Mb/s circuit prices
1,3021,327
1,778
EgyptLebanon
Syria A b1,7781,8792,039
2,4182,5532,8022 807
SyriaSaudi Arabia
QatarOman
AlgeriaMoroccoBahrain
Arab average
The OECD data shown representthe lowest and highest prices foundin OECD countries, and the averageacross all 30 OECD countries
2,8072,8602,9783,211
3,7864,058
BahrainUAE
TunisiaJordan
LibyaDjibouti
across all 30 OECD countries.5,1505,419
15,082247
4,4461,826
PalestineYemen
MauritaniaDenmark
Czech Rep.OECD simple average
OECD average
3,615
- 4,000 8,000 12,000 16,000 20,000
Arab simple average
Monthly prices in US$ PPP, VAT excluded
Page 28
34 Mb/s Leased Lines basket results
Only a few of the Arab countriespublish these prices.The service may still be offeredthough
34 Mb/s circuit prices
6,108
8,682
11,074
QatarEgypt
Saudi ArabiaArab average
though.25,526
26,450
64,365
1,683
21,358
AlgeriaMorocco
LibyaIcelandMexico
O C OECD
The OECD data shown representthe lowest and highest prices foundin OECD countries, and the averageacross all 30 OECD countries
9,210
23,701
- 20,000 40,000 60,000 80,000
OECD simple averageArab simple average
Monthly prices in US$ PPP, VAT excluded
OECD
across all 30 OECD countries.
Page 29
155 Mb/s Leased Lines basket results
Only a few of the Arab countriespublish these prices.The service may still be offeredthough
155 Mb/s circuit prices
17,364
22,571
23,905
EgyptSaudi Arabia
Qatar
Arab average
though.76,579
72,300
- 50,000 100,000 150,000 200,000
AlgeriaLibya
Arab simple average
Monthly prices in US$ PPP, VAT excluded
221,079 --->
Page 30
Note: No equivalent OECD data exist.
Leased Line basket results 2008 – 2009 (based on national currency)
The basket results are affected by:– Algeria: General price reductions.– Bahrain: No price reduction (2009
data based on 1 year contract tariff,
Leased Line price changes 2008 - 2009
-80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0%
Algeria
Bahrainy ,2008 was based on open term contract tariffs).
– Jordan: Slight price increase for 256 kb/s, long distances.Morocco: Slight price increase for
Bahrain
Comoros
Djibouti
Egypt
Iraq– Morocco: Slight price increase for 64 kb/s.
– Oman: Slight price increase for 64 kb/s, below 100 km.
– Saudi Arabia: Price reductions for
Jordan
Kuwait
Lebanon
Libya
64 k
256k2 M
34 M
155M
circuits below 100 km– Tunisia: Price increase for 64 kb/s,
all distancesNo price changes recorded in other
t i
Mauritania
Morocco
Oman
Palestine
Q tcountries.The Arab average is closing in on the OECD average for low speeds (<= 2 Mb/s):
Qatar
Saudi Arabia
Somalia
Sudan
Syria64 k 2 M 34 M
Page 31
y
Tunisia
UAE
Yemen
Arab/OECD 2009 136% 198% 257%average 2008 198% 251% 252%
Price change analysis is based on prices in nationalcurrency for each country.
Observations from Leased Line basket results
Egypt, Jordan, Lebanon, Qatar, Saudi Arabia and Syria have the lowest prices for National Leased Lines.
– Price levels in these countries are below or close to the OECD average– The price ranking may vary with product
The majority of the Arab countries have prices below the most expensive OECD country
– For 64 kb/s the prices in Djibouti and Mauritania stands out as very high– For 64 kb/s the prices in Djibouti and Mauritania stands out as very high. – For 2 Mb/s the prices in Mauritania stands out as very high. – For 34 Mb/s and 155 Mb/s the prices in Libya appear on the high side
For speeds up to 2 Mb/s the Arab average is in line with the OECD average. – For higher speeds the prices in Arab countries appear higher than in the OECD
countriesHowever, most Arab countries are more expensive than the OECD “best-in-class”.Many of the Arab countries are quite small in size and this price comparison may give advantage to the tariff structure used in these small countries.
– i.e. the reality may be worse than shown here.
Page 32
Broadband basket methodologyR h i 148 ADSL i ff i f h i b ISP* i 18 A b iResearch covering 148 ADSL service offerings from the incumbent ISP* in 18 Arab countriesCosts are presented for low speed (< 1 Mb/s) and medium speed (1-4 Mb/s) services separately.
– Low speed does not include 1024 kb/s offers– Not all providers may offer services in both categoriesp y g– Not all providers may publish tariffs for both residential and business services
Total monthly cost calculated based on two usage profiles:– Low usage: 1 GB and 10 hours per month, in 20 minute sessions.
High usage: 5 GB and 30 hours per month in 30 minute sessions– High usage: 5 GB and 30 hours per month, in 30 minute sessions.Only “actual price” results are shown in this report.
– “Actual price” refers to the monthly cost paid by the customer, as opposed to the “Normalised” price per 1 Mb/s that can also be produced by the benchmarking system
The European data shown refer to the incumbent ISP* ADSL services in 30 European countriesTariff data cover the cheapest form of installation, modem cost (if applicable), monthly rental, usage allowances and any usage charges.Additional information on speed, web-space, email addresses, penalties with excess usage, and contract term duration is also included in the basic data and presented along with the cost results.
– To the extent this information is published by the providerPlease also see the document on “AREGNET Price Benchmarking Methodology
Page 33
– Please also see the document on AREGNET Price Benchmarking Methodology
* Incumbent ISP will normally mean the ISP owned by the incumbent operator in the country.
Broadband data issues
Price data not available for broadband services in:– Iraq
K it– Kuwait– Palestine– Somalia
S d i f l d d h d b d fSpeed assumptions for upload speed had to be made for:– Saudi Arabia
Regulators have been offered the opportunity to comment on the tariff information and the draft report.Most providers in the Arab countries offer speeds down towards 128 kb/s. The highest speed from many providers is 2 Mb/s or below.– The results shown focus on speeds from 256 kb/s and upwards. This
corresponds with the general definition of broadband.
Page 34
Residential low speed broadband (below 1 Mb/s)
Low speed residential broadband services
21.87
28.59
29 28
Algeria - 32 / 256
Morocco - 128 / 256Red line = European low usage simple averageBlue line = Arab low usage simple average
29.2830.79
37.81
41.54
45.48
Egypt - 128 / 256UAE - 64 / 256
Tunisia - 128 / 256
Bahrain - 64 / 256
Libya - 128 / 25657.64
65.1565.38
66.95
70.62
Oman - 128 / 512Sudan - 64 / 256
Jordan - 128 / 512
Saudi Arabia - 128 / 256
Lebanon - 64 / 256143.00
147.56163.16
644.26
671.32
Syria - 64 / 256
Djibouti - 128 / 256Mauritania - 64 / 256
Yemen - 64 / 256
Comoros - 64 / 256-
20.33
42.3929.82
137.08
-
Switzerland - 100 / 300Cyprus - 192 / 512
Europe simple average
Arab simple average
Lowest and highest price level in Europe
European and Arab region averages
Page 35
- 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00
p g
Actual prices in US$ / PPP per Month, VAT included
Low usage cost High usage cost
Residential medium speed broadband (1 – 4 Mb/s)
Medium speed residential broadband services
43.47
52.77
Morocco - 512 / 1024
Tunisia - 512 / 1024
Red line = European low usage simple averageBlue line = Arab low usage simple average
56.36
75.33
82.50
83.68
Algeria - 64 / 1024
Qatar - 128 / 1024
Jordan - 256 / 1024
Oman - 128 / 1024
92.54
97.61
129.46
157.01
UAE - 256 / 1024
Egypt - 256 / 1024
Saudi Arabia - 256 / 1024
Lebanon - 256 / 1024
162.80
268.08
Bahrain - 256 / 1024
Sudan - 256 / 1024
21.26
64.88
37.66
150.55
Ireland - 128 / 1024
Malta - 512 / 2048
Europe simple average
Arab simple average
Lowest and highest price level in Europe
European and Arab region averages
Page 36
- 50.00 100.00 150.00 200.00 250.00 300.00
Arab simple average
Actual prices in US$ / PPP per Month, VAT included
Low usage cost High usage cost
Business low speed broadband (below 1 Mb/s)
Low speed business broadband services
28.59
29.28Morocco - 128 / 256
Egypt - 128 / 256Red line = European low usage simple averageBlue line = Arab low usage simple average
45.48
65.15
90.56
97.52
114 29
Libya - 128 / 256
Sudan - 64 / 256
Lebanon - 64 / 256
Jordan - 128 / 512114.29
173.93
192.88
606.98
644.26
Bahrain - 64 / 256
UAE - 128 / 512
Algeria - 32 / 256
Djibouti - 128 / 512
Yemen - 64 / 256897.52
-
-
-
Yemen 64 / 256
Tunisia - 256 / 512
-
-
- 28.10
42.39
34.77
248.87
Switzerland - 100 / 1000
Cyprus - 192 / 512
Europe simple average
Arab simple average
Lowest and highest price level in Europe
European and Arab region averages
Page 37
- 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00 900.001,000.00Actual prices in US$ / PPP per Month, VAT included
Low usage cost High usage cost
Business medium speed broadband (1 – 4 Mb/s)
Medium speed business broadband services
43.47
97.61Morocco - 512 / 1024
Egypt 256 / 1024
Red line = European low usage simple averageBlue line = Arab low usage simple average
166.03
183.59
213.91
219 92
Egypt - 256 / 1024
Jordan - 256 / 1024
Lebanon - 256 / 1024
Oman - 256 / 1024
g p g
219.92
268.08
439.07
463.03
Qatar - 128 / 1024
Sudan - 256 / 1024
UAE - 256 / 1024
Algeria - 64 / 1024511.96
1,008.97
1,451.91
21.26
Bahrain - 256 / 1024
Djibouti - 256 / 1024
Tunisia - 512 / 1024
Ireland - 128 / 1024 Lowest and highest price level in Europe160.42
61.64
422.30
Ireland 128 / 1024
Austria - 2048 / 2048
Europe simple average
Arab simple average
Lowest and highest price level in Europe
European and Arab region averages
Page 38
- 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 1,600.00
Actual prices in US$ / PPP per Month, VAT included
Low usage cost High usage cost
Residential vs. Business broadband prices
The reason for the highbusiness price inTunisia is the chargeto the incumbent operatorfor network access.
Low speed (<1 Mb/s), low usage broadband
21.87
28.59
29.28
192.88
28.59
29 28
Algeria
Morocco
Egypt
Medium speed (1-4 Mb/s), low usage broadband
43.47
52.77
56 36
43.47Morocco
Tunisia1,452 --->
30.79
41.54
45.48
57.64
29.28
173.93
114.29
45.48
-
gyp
UAE
Bahrain
Libya
Oman
56.36
75.33
82.50
83.68
463.03
219.92
166.03
213.91
Algeria
Qatar
Jordan
Oman
65.15
66.95
147.56
644.26
65.15
-
606.98
644.26
Sudan
Saudi Arabia
Djibouti
Yemen
92.54
129.46
157.01
162.80
439.07
-
183.59
UAE
Saudi Arabia
Lebanon
B h i671.32
-
29.82
137.08
-
-
34.77
248.87
Comoros
Europe simple average
Arab simple average
268.08
37.66
150.55
511.96
268.08
61.64
422.30
Bahrain
Sudan
Europe simpleaverage
Arab simple average
- 100 200 300 400 500 600 700
US$/PPP per month, VAT included
Residential Business
- 200 400 600 800 1,000
US$/PPP per month, VAT included
Residential Business
Low speed Medium speed
Page 39
Business to residential price relationship in Arabcountries compared to European average.
Some business services offer higher speed and more space than comparable residential services.
p pArab simple average 182% 280%Europe simple average 117% 164%
Broadband basket results 2008 – 2009 (based on national currency)
The basket results are affected by:– Algeria: Reduced monthly rental
– Djibouti: Reduced monthly rental
Broadband price change 2008 - 2009
-100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0%
Algeria
Bahrain Low Speed Low usagej y
– Egypt: Change in usage allowance
– Jordan: Not an actual increase, but the incumbent access charge was not registered in the 2008 data
Comoros
Djibouti
Egypt
Iraq
Low Speed, Low usage
Low Speed, High usage
Medium Speed, Low usage
Medium Speed, High usage
registered in the 2008 data
– Morocco: Reduced monthly rental
– Oman: Change in package range, and monthly rental
Jordan
Kuw ait
Lebanon
Libya
– Qatar: Price structure change for business
– Sudan: Reduced prices
– UAE: Reduced monthly rental
Prices in Arab countries have gone down
Mauritania
Morocco
Oman
Palestine
Prices in Arab countries have gone down significantly over the last year. But so has prices in Europe, and the relative difference stays basically the same.
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Page 40
Syria
Tunisia
UAE
YemenPrice change analysis is based on prices in nationalcurrency for each country.
Observations from Broadband basket results
Speeds above 4 Mb/s appear only to be offered by incumbents in 5 of the countries:
– Morocco, Oman, Qatar, Saudi Arabia, Syria.Th i diff t b t t i– The prices are very different between countries
– Price difference between lowest and highest price level is 3064% for low speed services, and 2321% for medium/high speed.
Speeds below 256 kb/s are common in most Arab countriesFor speeds above 1 Mb/s the prices are generally higher than what is found inFor speeds above 1 Mb/s the prices are generally higher than what is found in Europe
– For low speed broadband (0.256 - 1 Mb/s) the prices in the majority of the Arab countries tend to be similar to the European average, but the speeds used in Europe will be higher.p g
– In Europe the most common speeds are in the range 1-4 Mb/s and above, and lower speeds are in many cases not offered at all. There is a clear move towards higher speeds, only since last year the situation has changed significantly.
The average price relationship between business and residential offering is hi h f A b t i th E t ihigher for Arab countries than European countries
– Please note that specific business offerings often include higher speeds, more email and web space, and different conditions.
Most services are very basic and do not offer many additional facilities
Page 41
facilitiesOnly some of the countries apply usage-based prices
Call cost comparison
The comparison of call cost is based on the actual cost of a 3 minute call.C t d f L l ll N ti l ll d ll t th USACosts are compared for Local calls, National calls and calls to the USA– At peak and off-peak times– Off-peak meaning the lowest possible cost period
These comparisons have a much simpler methodology than the basket comparisons shown elsewhere in this report, and will reflect the costs for specific call types.The results are presented with countries in alphabetical order as a ranking of these results is not necessarily useful.– Services with for example free calls (zero cost per call) may still have a
higher cost to the end user
Page 42
Local call comparison
Many of the countries have the same prices for local and national calls.
3 minute local call
0.170.08
AlgeriaBahrain
Comoros No data
Peak averageOff-peak average calls.
Entries with call cost of 0.00 havefree calling included in the monthlyrental
0.180.08
0.12
0.18
DjiboutiEgypt
IraqJordanKuwait
Lebanon
No data
No data
No data
rental.0.00
0.640.28
0.200.26
0 00
LebanonLibya
MauritaniaMorocco
OmanPalestine
0.000.06
0.00
0.030.05
QatarSaudi Arabia
SomaliaSudan
SyriaTunisia
Peak
Off-peak
No data
0.00
0.14
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
UAEYemen
Arab simple average
No data
Page 43
US$ PPP, VAT included
National call comparison
3 minute national call
0.340.08
AlgeriaBahrain
Comoros No dataPeak averageOff-peak average
Entries with call cost of 0.00 havefree calling included in the monthlyrental
0.180.39
0.14
0.18
DjiboutiEgypt
IraqJordanKuwait
Lebanon
No data
No data
p g
rental.0.00
0.640.51
0.200.26
0 00
LebanonLibya
MauritaniaMorocco
OmanPalestine
Qatar 0.000.25
0.06
0.030.47
0 33
QatarSaudi Arabia
SomaliaSudan
SyriaTunisia Peak
No data
0.33
0.24
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
UAEYemen
Arab simple average
Off-peakNo data
Page 44
US$ PPP, VAT included
Local vs. National
3 minute local vs. national call (peak time)
0.170.08
0.340.08
AlgeriaBahrain
ComorosLocal averageNational average
For entries with no bar in the graph,please refer to the data in thespecial local and national graphs
0.180.08
0.12
0 18
0.18
0.14
0.39
DjiboutiEgypt
IraqJordanKuwait
Lebanon
National average
special local and national graphs.0.18
0.640.28
0.200.26
0.510.20
0.26
0.64
0.18LebanonLibya
MauritaniaMorocco
OmanPalestine
0.06
0.030.05
0.250.06
0.47
0.03
QatarSaudi Arabia
SomaliaSudan
SyriaTunisia Local
0.14
0.470.33
0.24
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
UAEYemen
Arab simple average
Local
National
Page 45
US$ PPP, VAT included
International call comparison (call to USA)
3 minute call to USA
1.642.18
AlgeriaBahrain
Comoros No data
Peak averageOff-peak average
14.485.88
0.95
2.17
DjiboutiEgypt
IraqJordanKuwait
Lebanon
No data
No data
No data
2.104.83
2.492.60
5.552 29
LebanonLibya
MauritaniaMorocco
OmanPalestine
Q t 2.292.50
1.05
4.271.18
QatarSaudi Arabia
SomaliaSudan
SyriaTunisia
Peak
Off-peak
No data
2.316.05
3.58
0 2 4 6 8 10 12 14 16
UAEYemen
Arab simple average
Page 46
US$ PPP, VAT included
National vs. International to USA
3 minute National vs. International call (peak time)
0.340.08
1.642.18
AlgeriaBahrain
ComorosNational averageIntn. USA average
For entries with no bar in the graph,please refer to the data in thespecial national graph
0.180.39
0.14
0 18
5.88
0.95
DjiboutiEgypt
IraqJordanKuwait
Lebanon
Intn. USA average
special national graph.0.18
0.64
0.510.200.26
2.492.60
2.17
4.83
5.55
2.097
LebanonLibya
MauritaniaMorocco
OmanPalestine
0.25
0.03
0.47
2.501.05
1 18
0.00
0.06
4.27
2.29QatarSaudi Arabia
SomaliaSudan
SyriaTunisia National
0.24
1.182.31
3.58
0.33
6.05
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00
UAEYemen
Arab simple average
National
Intn. USA
Page 47
US$ PPP, VAT included
Call costs 2008 – 2009 (based on national currency)
Very few call charges have actually changed 2008 – 2009– No changes in basic national call charges and basic international
call chargescall charges– Some changes in local call charges (see below)– The range of tariff packages has expanded in many countries,
and alternative call charges may often be availableand alternative call charges may often be available.Changes in local call charges:– Egypt: Local call charges have increased with 30%
and are still below the average• … and are still below the average– Lebanon: Off peak charges for local calls are introduced– Oman: New tariffs have higher peak and lower off-peak charges
than before, last year had one charge at all times.than before, last year had one charge at all times.
Page 48
Observations from the call cost comparison
Prices of calls vary considerably between countriesAbout half of the countries do not offer off-peak rates for national callsOff-peak discounts for international calls are generally quite smallIn in some countries the local and/or national calls are “free”, i.e. included in the monthly rental.– Libya, Qatar and UAE
In some countries there are several tariff options available, with different call charges and fixed charges. This analysis is based on the so called “basic” packages.Ratios of national to international call prices indicate that rebalancing of call charges has not yet taken place in many countries of the region
Page 49
Main findings from the benchmarking studyFi d i t l hFixed voice telephony
– Prices are on average higher in Arab countries than in OECD countries– There is a wide spread of price levels between the Arab countries– Rates are not rebalanced, with low fixed and high usage costs– Especially the international call charges are higher than in OECD countriesEspecially the international call charges are higher than in OECD countries– Prices have gone down over the last year in some countries– The lack of rebalancing will make it difficult for the incumbent operators to perform in a
competitive marketMobile telephony
Price levels in most Arab countries compare well with OECD countries especially for low and– Price levels in most Arab countries compare well with OECD countries, especially for low and medium usage
– Rather uniform prices through the region– Many countries have reduced prices over the last year
Leased Lines– Prices for high speed circuits are generally higher than in OECD countries– There is a wide spread of prices between the Arab countries
Broadband– Price levels are significantly higher in Arab countries than in Europe
The speed range offered is lower in Arab countries– The speed range offered is lower in Arab countries, and prices increase rapidly with speed.
– The higher rates will inhibit broadband penetration– Higher speeds are available in more countries than a year ago
Generally prices in Arab countries have gone down, most with Broadband services. But i i h d i th t f th ld ll th b t i
Page 50
since prices have gone down in other parts of the world as well the gap between prices in Arab countries and prices in OECD / European countries remains.
Reference information
Exchange rates and VATRelated to: US$ US$ PPP % CurrencyAlgeria 0.014370 0.028740 17.0 % DZDBahrain 2.667600 4.041818 0.0 % BHDComoros 0 002609 0 004577 0 0 % KMFComoros 0.002609 0.004577 0.0 % KMFDjibouti 0.005791 0.012065 19.0 % DJFEgypt 0.182200 0.650714 10.0 % EGPIraq 1.000000 2.631579 0.0 % USDxJordan 1.422900 2.635000 16.0 % JODKuwait 3.469200 4.752329 0.0 % KWDLebanon 0.000677 0.001208 10.0 % LBPLibya 0.798700 1.996750 0.0 % LYDMauritania 0.003973 0.010738 0.0 % MROMorocco 0.116900 0.212545 20.0 % MADOman 2.604500 4.340833 0.0 % OMRPalestine 0.246500 1.232500 0.0 % ILSQatar 0.274900 0.366533 0.0 % QARSaudi Arabia 0 266700 0 416719 0 0 % SARSaudi Arabia 0.266700 0.416719 0.0 % SARSomalia 0.000730 0.002432 0.0 % SOSSudan 0.456600 1.037727 10.0 % SDGSyria 0.021640 0.056947 0.0 % SYPTunisia 0.708900 1.575333 18.0 % TNDUAE 0.272400 0.363200 0.0 % AEDYemen 0.005007 0.013908 10.0 % YER
Prices for services in Iraq are given in US$
Exchange rates taken from the Oanda web service on the 2 February 2009.PPPs are based on World Band CPL for 2005 (published 2007 latest available)
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PPPs are based on World Band CPL for 2005 (published 2007, latest available).
Acronyms used in the context of this report
OECD: Organisation of Economic Co-operation and Development
OECD countries: Australia, Austria, Belgium, Canada Czech Rep Denmark Finland
Service: A telecommunications serviceBasket: A theoretical usage profile describing the usage volumes across different types of calls. The basket shall include all importantCanada, Czech Rep., Denmark, Finland,
France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Rep., Spain, Sweden Switzerland Turkey UK USA
calls. The basket shall include all important elements of the service, including fixed cost elements.Tariff: The description of all the end user prices related to a serviceTariff element: The part of a tariff describingSweden, Switzerland, Turkey, UK, USA
VAT: Value Added Tax, a consumption tax system used in most European countries and some Arab countries.
PPP: Purchasing Power Parity exchange
Tariff element: The part of a tariff describing the price(s) for a single type of call or service.Basket calculation: The process where the Basket is applied to the individual tariff in order to calculate the cost of the individual tariff elements and the overall costPPP: Purchasing Power Parity, exchange
rates adjusted for the purchasing power of consumers in each country. Used in international comparisons to adjust for market differences. This study uses data from the World Bank
tariff elements and the overall cost.Basket result: The cost of using the service as described in the Basket.Re-balancing: The process through which the prices of individual Tariff elements will cover World Bank.
CPL: Comparative Price level. The relative factor between market exchange rates and PPP. Used to calculate the PPPs from current market exchange rates.
ptheir own cost, and not subsidise other Tariff elements.
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