The Middle East mobile broadband market offers a diverse mix of opportunity and challenges due to the many variances between the different countries which make up this vibrant region. Many countries have reached mobile saturation and this combined with infrastructure improvements such as LTE 4G roll-outs creates opportunity for mobile broadband growth in these markets.

The United Arab Emirates has a well established mobile sector, with mobile penetration

among the highest in the world, largely due to the country’s affluence as well as to a significantly sized and fluid population of expatriate workers. Often, consumers own more than one SIM card to take advantage of promotional offers.

Etisalat and du have both deployed sophisticated HSPA+ and LTE networks that cover more than 88% of the population, underpinning growth opportunities centred on mobile broadband, content and applications. Smart phones are becoming increasingly popular, accounting for close to two thirds of the country’s mobile handsets.

Kuwait also has a very high mobile penetration and represents a bright spot amongst a region marred by civil tension. The mobile operators in Kuwait are forging ahead and developing both infrastructure and services, with the three major operators of Zain Kuwait, VIVA and Ooredoo all offering LTE services and also deploying or exploring LTE-A services. This has created an environment where mobile broadband has become a feasible proposition with all three mobile network operators offering mobile broadband services.

Mobile broadband subscriptions outnumber fixed broadband subscriptions by a long way in Saudi Arabia, which reflects the country’s large household size. While fixed broadband normally serves the home, mobile broadband subscriptions are individual. Therefore, mobile broadband subscriptions are likely to continue growing beyond the 100% per capita penetration threshold due to some users having more than one mobile connected device.

Iraq’s telecommunications sector began on a positive note in 2015 with the roll-out

of 3G services by three operators – Zain Iraq, Asiacell and Korek Telecom. Prior to the current civil tension there was also a progressive fibre optic deployment occurring across parts of Iraq. In the longer term - the Iraq telecoms market offers many opportunities once the civil unrest stabilises and the government and operators are able to focus again on telecoms and digital growth. It has a large population of mobile phone users which have not yet adopted mobile broadband at any significant levels.

Yemen still has a number of hurdles to overcome before its telecoms sector can be

considered progressive – not least the current political unrest which has reportedly seen attacks on telecommunications infrastructure. While four mobile operators ensure GSM and CDMA mobile services are available - mobile broadband services are still unaffordable for much of the population.

Syria is also in the midst of civil war which is not conducive to telecoms development. Mobile broadband is however available with both Syriatel and MTN Syria offering access via 3G services. Combined, the two companies had over 1.2 million active subscribers to mobile broadband services in 2014. However with the current civil fighting and destruction to telecommunications equipment is unclear in 2015 how much this has impacted upon telecoms services.

Lebanon is home to a growing technology sector, complete with local start-up incubators designed to provide seed funding and mentoring to technology entrepreneurs. To address the infrastructure issue a number of start- up hosting locations have emerged with the support of the government, in recognition of the importance of nurturing a local digital economy to contribute to overall economic development.

Building on this environment, in late 2014 the World Bank announced it would launch its Mobile Internet Ecosystem project (MIEP) in the country. Lebanon was chosen by the World Bank because it has a highly educated population who can speak a number of languages; is home to a number of well regarded universities for the region and has an economy which uses multiple currencies. Mobile services in Lebanon are provided by Alfa and MTC Touch over the government owned networks. Both operators launched 3G/HSPA services in October 2011, followed by 4G LTE networks more recently

Etisalat planned to cover 99% of populated areas in the UAE with 4G by end-2015.

In August 2015 Turkey finally conducted its LTE Spectrum Auction and attracted US$4.5 billion in bids. The three incumbent operators, Vodafone, Avea and Turkcell all obtained licenses across the various frequencies.

In recent years, foreign companies were reluctant to invest in Iran’s ICT market due to sanctions placed against it. But with the easing and possible lifting of these sanctions; it is expected that attention will again turn towards this potentially lucrative market.

Infrastructure-based competition has been essential to growth in Bahrain; ADSL was once the dominant means of broadband access prior to widespread adoption of WiMAX and mobile broadband, which combined represent over 90% of total broadband subscriptions.

Jordan’s mobile broadband sector has around 2.3 million active subscribers in 2015 and this in turn is stimulating the growth of mobile apps, especially those based on messaging and social networking.

.The mobile content and applications market has come under renewed focus in Israel given the increasing affordability and penetration of smartphones.

Batelco, MenaTelecom, Lightspeed Communications, Kalaam Telecom, 2Connect, Noorsat, Zain Bahrain, Viva Bahrain; Telecommunication Company of Iran (TCI), Mobile Communications Iran (MCI), MTN Irancell, Tamin Telecom (Rightel), Rafsanjan Industrial Complex (Taliya), Mobile Telecommunications Company of Isfahan (MTCE), Telecommunication Kish Company (TKC); Iraqi Telephone and Postal Company (ITPC), Newroz Telecom, Asiacell, Zain Iraq, Korek Telecom, Regional Telecom; Cellcom, Orange (Partner), Pelephone (Bezeq), HOT Mobile, Golan Telecom, Rami Levy, Alon Cellular, Home Cellular, Marathon Mobile/Marathon 018 Xphone, Rounds; Jordan Telecom Group/Orange, Zain Jordan, Batelco/Umniah, MarkaVIP, Maktoob Group, Jabbar Internet Group, Jeeran, Sallaty, TE Data, Virgin Mobile MEA; Ministry of Communications, Qualitynet, Orbit Showtime Network (OSN), KIPCO, Mobile Telecommunications Co (MTC) / Zain, Ooredoo Kuwait, Kuwait Telecom Company (KTC) / Viva; Ogero Telecom, Cable One (Wigo Lebanon), Cedarcom, GlobalCom Data Services (GDS), Pesco Telecom, Sodetel, IDM/Cyberia

With increased competition, the mobile operators have focussed on mobile applications and content, made easier through the launch of 3G services.

Orange Jordan has utilised its mobile data network to offer a variety of mobile content, including mobile TV. During early 2011 the operator expanded the variety of mobile TV with HD streaming on offer. In 2013 Orange Jordan launched its mobile travel app which allows subscribers to track their roaming bills and usage. This was followed by the launch of the “My Orange” app in 2014 that allows users to manage all account information and services and recharge accounts.

Self management of accounts has also been addressed by Zain with the launch of its mobile app ZainJo, which allows subscribers to obtain account balances as well as content, service and promotional

information.

There is emerging activity in the M2M sector in Israel. Cellcom, for example, branched into the nascent Machine-to Machine (M2M) services market, securing contracts as the M2M services provider for ITURAN, a vehicle tracking system provider; better place, an electric vehicle charging station network; Electric Company of Israel’s smart metering project and a number of photovoltaic energy projects.

m-advertising There are a number of interesting mobile advertising start-ups emerging

from Israel in recent years. Examples include: StartApp, ClicksMob, InnerActive and Mobixell (acquired by Flash Networks in 2014).

ClicksMob is an Israeli start-up that acts as a brokerage firm between mobile advertisers and the apps/publishers. Now operating out of San Francisco in the US, it has gained a lot of positive attention in recent times.

StartApp is a mobile advertising platform that launched in 2010. InnerActive – is a mobile ad exchange with headquarters in Tel Aviv and

offices located in San Francisco, New York and London. Flash networks acquired Mobixell in 2014 in order to gain its

technological expertise in mobile data management and rich media solutions.

In mid 2015 VIVA announced it was the first operator in Kuwait to launched Voice over Long Term Evolution (VoLTE) technology which would allow customers to use LTE networks for making calls including High Definition video calls.

IoT and M2M networks Interest in Machine-to-Machine (M2M) networks and the broader concept

of the Internet of Everything (IoT) is beginning to emerge in Kuwait. One example includes the 2015 deal between Zain Kuwait and the Vodafone Group which sees their existing partnership extended to include M2M. While Zain already offers basic M2M services in parts of the Middle East, the new deal will allow Zain to offer end-to-end solutions for applications such as fleet management, smart metering and tracking assets.

Using Vodafone’s Global M2M platform, Zain Kuwait planned to start

offering the enhanced M2M services initially to Kuwait businesses during the second half of 2015. Using Zain’s existing LTE network in Kuwait – the service is then expected to be rolled out in Zain’s other operating areas.

Mobile broadband has become a feasible proposition and viable alternative to fixed broadband in Kuwait following substantial investments in 3G/LTE technology. Mobile broadband services are accessible via USB plug in modems, standalone WiFi routers and Internet-enabled handsets and tablets.

All three mobile network operators offer mobile broadband

services. Zain offers its mobile broadband services to both the residential

and business markets. Its residential market product is offered on both a postpaid and prepaid basis. Its prepaid offering is marketed as eeZee Connect. Its business market offering is comprised of three product types targeted towards the number mobile phone lines.

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