UAE_Telecom_Industry(2)

8/7/2019 UAE_Telecom_Industry(2)

1/13www.mtiworldwide.c

UAE Telecom IndustryRinging all the way

UAE


2/13

Middle East Telecom landscape

The Middle East telecom sector has experienced rapidchanges and tremendous growth since 2003. Marketliberalization, increased competition, and theintroduction of new network technologies are allincreasing consumer demand for broadband access. In2006, most Middle East countries experienced double-and even triple-digit growth in the number of broadbandsubscribers. As a result, there are significantopportunities for telecommunications operators to tapinto this potential and increase their revenues and bottomline margins

The sector witnessed a phenomenal compound annualgrowth rate (CAGR) of 44 % between 2003 and 2007, with

subscribers increasing from 24 million to 103 million. Asthe wave of sector liberalization continues, telecomoperators are facing increasing competitive pressure. Onone hand, the market for traditional telephony, whetherfixed or mobile, is so saturated that it can no longer be aviable exclusive source of growth. On the other

hand, convergence with other sectors has brought aboutopportunities that could be considered.

However greater availability of and demand for digitalcontent, a growing youth market and the increase in

prosperity in the region are also significant drivers behindthe observed boost in demand for broadband. Thisdemand seems set for continued growth as morecountries in the region move toward a competitivestructure and as advancements in technology make itmore possible to provide high-speed broadband in aneconomic manner. The success of regional

telecommunications operators in capturing this demandlargely depend on key marketing, technology, andcustomer service strategies and decisions that they willneed to adopt.

Growth strategies for telecom operators fall largely undertwo categories: Scale and Scope.

The potential growth paths for telecom operators rely ongrowing revenue share and growing the customerbase, and most preferably a mix of the two. In order togrow, operators must be able to preempt competition andleverage the critical mass for competitive advantage.

In terms of scope and growing revenues, operators mustextend and diversify their business to include offeringsthat go beyond basic telecom services. Seeking scope isfurther enabled by convergence between telecom andother industries such as media and the financial sector.

40%

26%

17%

10%

3% 3% 1%

World Internet users by World regions

Asia

Europe

North America

Latin America/Caribbean

Africa

Middle East

Oceania/Austrlia

5.3%

15.3%

21.3%

21.9%

24.1%48.1%

59.5%

73.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Africa

Asia

Middle East

World Avg.

Latin America/CaribbeanEurope

Oceania/Austrlia

North America

Penetration rate

World Internet penetration rate by Geographical Regions

Telecom sector

has grown with

CAGR of 44 %between 2003 and

2007, with

subscribers

increasing from 24

mn to 103 mn

Exhibit 1

Exhibit 2

1
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3/13

UAE Telecom Industry

UAE has one of the most developed telecom market andtechnologically advanced telecom infrastructure in theGulf with fixed, mobile and Internet penetration rates of30.4%, 166.4% and 49.5% respectively at the end ofDecember 2006. The country is ranked first in the ArabWorld and 29th overall in Networked Readiness Index(NRI), according to the Global Information TechnologyReport produced by the World Economic Forum.

Until 2007, UAEs telecom sector had been providedunder monopoly conditions by the EmiratesTelecommunications Corporation (Etisalat), a company ofwhich the UAE government owns 60%. Etisalat howeverlost its monopoly in 2007 to Emirates IntegratedTelecommunication Company (EITC), now re-branded as

du. The company paid a total price of AED124.5 millionfor the license that granted du the right to Install, operateand manage all range of telecom services across the UAE.

In February 2007, du launched its mobile service acrossthe Emirates in addition to Internet and pay TV services insome of the free zones of Dubai. Call Select, the first ofdu's nationwide fixed line services, was launched in July2007. The introduction of the second telecom operatorwill pave the way to a full liberalization of the market

Liberalization

Until 2004, the UAEs telecommunications market had asingle entity, Emirates Telecommunications Corporation(Etisalat), operating in the capacity of both a telecomregulative body and a fully-fledged telecom serviceprovider, at the same time. With the UAEs accession tothe World Trade Organization (WTO) agreement, the UAEinitiated the first steps towards becoming a fullyliberalized market by 2015 (see Exhibit 3)

Country Separate TelecomRegulator Start ofLiberalization Data of FullLiberalization

Bahrain 2002 2002 2004

Saudi Arabia 2001 2003 2006

Jordan 1996 1996 2005

UAE 2004 2005 2015

2

Highlights of telecommunications regulation and liberalizatioMobile Market Liberalization Time Line *

*Sources: Booz Allen Hamilton**Source: ITU

Exhibit 3

Development of an independent regulator (TRA)

In 2004, the UAE government created an entity, theTelecommunications Regulatory Authority (TRA), toregulate, develop and oversee the telecommunicationsindustry in the UAE, effectively ending Etisalat's regulativeauthority.

The organizational objectives of the TRA are derived fromthe Telecommunications Law. TRA is responsible for thedevelopment of the required policies to maintain faircompetition, govern new entrants ability to compete withthe incumbent operator and manage the regulationsrelated to the nature of the licensing regimes.

Telecom Competitive Landscape in Middle East

Exhibit 4

Fixed-network markets have begun to beliberalized, albeit at a slower pace (see Exhibit 4).However, the region is starting to see stagnation in thevalue added to market development by competingfacilities-based operators.


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Mobile Market

Benchmarked against the other ME region, the UAE hadthe highest penetration exceeding 166% at the end of2007, with total mobile subscribers reachingapproximately 7.6 million at the end of December2007, compared to the regions average of 60%.According to government statistics in 2006, the UAE'spopulation was 4.6 million, which means that there areabout 178 mobile numbers in circulation per 100people, or about two sim cards per person

Telecom operators in the region report active and inactivesubscribers, creating an unrealistic high penetration rate.

Despite skepticism concerning sustained mobilesubscriber growth at a time when the penetration rate inthe UAE was already 130% at the end of 2006, with thelaunch of du, the second mobile operator in February2007, quarterly net mobile subscriber additions for thetotal market almost doubled, reaching an approximate570,000 per quarter during 2007, compared to anaverage of 247,000 subscribers per quarter in 2006.

3

Pricing

According to the World Bank, the price basket for mobilesper month in 2006, showed that the UAE is relativelycheap, compared to most of the region, in terms ofaffordability, with the UAE standing at US$4.10 permonth, compared to the regions average of US$6.30 permonth, giving an added advantage to the UAE in terms ofincreasing mobile usage.

1.43

1.

91

2.43

2.

97

3.

68

4.53

5.52

7.59

4.

01

4.

96

6.

94

45.457.6

69.480.6

94.7

110.5

127.6

166.4

0

20

40

60

80

100

120

140

160

180

0

1

2

3

4

5

6

7

8

2000 2001 2002 2003 2004 2005 2006 2007

per100inhabitants

MillionSubscribers

Mobile subscribers and Penetration rate

Total Prepaid Penetration

Mobile subscriptiongrew by 38% toreach 7.6 millionsubscribers, with91% being prepaid.

0

4

8

12

16

20

24

US$permonth

Mobile affordability* (US$ per month, 2006)

* Price basket* (US$ per month, 2006) based on monthly subscription plus 50 mins peak and 50 mins off-peak use. Source: TRA

Exhibit 4

Experts believe that reportedsubscriber numbers are overinflated, as there is no definition setby the country's TelecommunicationsRegulatory Authority (TRA) forsubscriber measurement. Both

UAE Telecom Industry (cont..)


5/13

Fixed line Market

The fixed line telephone system in the UAE was growingrapidly until the advent of cellular technology. A drasticdecrease in prices for cellular technology in 1996thwarted the growth of fixed line telephones. However, interms of penetration rate, the UAE had the highestpenetration rate in the region, with rates exceeding 28%at the end of 2006. Total fixed line subscribers in the UAEreached 1.38 million, with annual growth rates between4% and 5% per annum.

calls decreased between 35% and 80%. But the technical

limitations of CS prevented competition from reaching100% of the population of the UAE.

The UAE Telecommunications Regulatory Authority (TRA)has directed Etisalat and Du, the only two telecomoperators in the country, to make network adaptations inorder to provide CPS in the fixed line telephone by 2009.CPS allows telephone users to have their callsautomatically routed through a network offering lowercall cost, without the need to dial a prefix or use specialequipment.

4

The introduction of CPS will increase competition in theUAE telecom sector, reduce prices, and enable consumersto freely choose their provider of national andinternational fixed line call services

Pricing

According to the World Bank, the price basket for fixedlines per month in 2006, showed that the UAE is amongthe most expensive in the region, in terms of

affordability, with the UAE standing at US$17.40 permonth, compared to the regions average of US$7.30 permonth, which explains the increased disparity betweenpreference for mobile usage, as opposed to fixed line.


1020

1053

1094

1136

1188

1237

1310

1386

32.4

31.731.3

30.830.5

30.1 30.330.4

26

27

28

29

30

31

32

33

34

0

200

400

600

800

1000

1200

1400

1600

2000 2001 2002 2003 2004 2005 2006 2007

per100inhabitants

SubsribersinThousands

Subcribers penetration

Fixed line subscribers and Penetration rate

Exhibit 5

0

4

8

12

16

20

US$permonth

Fixed affordability* (US$ per month, 2006)

* Price basket* (US$ per month, 2006) based on monthly subscription Source: TRA

Fixed linesubscriptionreached 1.38 mnsubscribers, with48% of the linesbeing residential

Since 2007, consumers in the UAEwere able to choose their provider ofnational and international fixed linecalls via carrier selection service (CS).After the introduction of CS, retailprices for fixed network international


6/13

Internet Market

In terms of technology, the UAE has led the Middle Eastregion through the introduction of the latestdevelopments, and in infrastructure and service rollout. In1982, the UAE was the first country in the Middle East tointroduce mobile phones and launch GSM services in1994. In addition, the UAE was also the first in the regionto install 3G technology and offer a variety of relatedmultimedia and mobile services in 2003, a technologythat is not available in the entire Middle East as yet.

UAE government blocks extensive content it considersobjectionable for religious and cultural reasons.

5

According to a study conducted by OpenNetIniative (ONI)in February 2005, the UAE government, through Etisalatsinternet service provider (ISP), (which at the time was thecountry sole ISP) blocked 15.4% of URLs, which areotherwise accessible in other countries.

Pricing

The increase in retail competition is likely to impactprices, as operators try to bring more attractive offerings

to consumers. A brief look at the cost of entry-level DSLin the Middle East region provides some evidence: Theaverage annual cost of a basic broadband connectionin a market with effective retail competition is US$150lower than of a connection in a monopoly or duopolymarket .


Internet subscribers and Penetration rate

Exhibit 6

Annual Cost of a Broadband Connection, 2007

Source: TRA

$255$324

$514 $557$627 $659

$793

$995

$0

$200

$400

$600

$800

$1,000

$1,200

*Qatar prices are for a 512Kbps connection, **Oman prices are for a 384Kbps connection

No broadband service-based competition

Full broadband service-based competition

Internetsubscription grewby 32% to reach904 thousandsubscribers.Broadbandsubscription, whichis dominated byresidential, isgrowing far fasterthan dial-up. In2006 broadbandrepresented only35% of internetsubscription whilein 2007 it is 42%

UAE Internet users spent over US$ 1.15 billion in

B2C e-commerce in 2007 Arab Advisors Group

A survey of Internet users in the UAE revealssubstantial adoption of e-commerce in the affluentand booming economy. 51.2% of Internet users inthe UAE reported purchasing products and servicesonline and through their mobile handsets in 2007.Based on the survey findings, it is estimated e-commerce users in the UAE to exceed 1.16 millionconsumers who have spent over US$ 1.15 billion in2007.

The UAE enjoys the highestinternet penetration in the regionat a rate of 48.5% at the end ofDecember 2007, with totalsubscribers reaching 0.9 million.However, in terms of broadbandpenetration rate, the UAE came inthird, with a rate of 5.17%preceded by Qatar and Bahrain.

Huge internet censorship:Despite the UAE governmentsefforts to establish itself as aneconomic and technological leaderin the Middle East by encouraginginternet usage, there is a level ofState censorship on the Internetand sites which are banned. The

Information and Communications Technology Sector (ICT)

209

256

290

317

363

399

443 5

24

0 8 18

30

56

128 2

41

380

0

5

10

15

20

25

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007

per100inhabitants

ThousandSubscribers

Dial-up Broadband Penetration


7/13

3G

Enabling Network Technologies

As the amount of data transfer increased the requirementof bandwidth also increased. Because content requires somuch bandwidth, the limited availability of enablingtechnologies has traditionally been the main obstacle forthe mass usage of content services. This is becoming lessof an obstacle in relatively advanced markets, such asthose of the GCC. Fixed and mobile broadband

technologies are becoming increasingly accessible withthe phenomenal growth levels witnessed in the adoptionof 3G and DSL services in the region.

UAE was also the first in the region to install 3Gtechnology and offer a variety of related multimedia andmobile services in 2003, a technology that is not availablein the entire Middle East region as yet.

Telecom-media convergence

Mobile handsets are increasingly converging with other

multimedia devices, such as digital cameras, music andvideo players, and personal digital assistants (PDAs).Similarly, customer premises equipment (CPE) for fixedtelephony is converging with personal computers andtelevision set-top boxes. A number of set-top box vendorsare becoming increasingly active in this space andmanufacturers are driving rapid product development andincreased innovation. Among the advanced featuresintegrated into this new generation of equipment are highstorage capacity, video-on-demand capabilities, digitalvideo recording support, multiple formatdecoding, security support and digital rightsmanagement.

6

VoIP

The Voice over IP (VoIP) Services has many regulatoryaspects in UAE. Only the Licensees (Etisalat and DU) canprovide VoIP Services to the users in the UAE.

VoIP allowed only for local calls

The Telecommunications Regulatory Authority (TRA) saidin November 2006 that it would allow Voice over Internet

Protocol (VoIP) technology, but only for local calls withinthe UAE. Long-distance calls using VoIP will continue tobe prohibited, for the time being, to protect therevenue, which telecom operators receive frominternational calls.

The following VoIP communications are consideredillegal:

Any call initiated from a PC and terminated at a

Landline (in the UAE or everywhere) and/or Mobilesuch as MSN Credit, Skype-Out, etc.

The use of IP Handsets through Internet Access tomake national and international calls such asNet2Phone, etc.

The use of websites that act as a trigger in initiatingcalls such as jajah, etc.

The use of VoIP Gateways and use of VoIP Services inconnecting the Office in the UAE to an office outsidethe UAE boundaries.


Exhibit 7

1.5%

1.1%

0.8%1.0%

1.6%

2.6%

2.0%

1.4%

1.7%

3.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Bahrain Kuwait Oman Saudi Arabia UAE

%ofPopulation

4.6%

2.6%

0.6% 0.9%

4.9%

5.8%

4.5%

1.0%

1.9%

7.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Bahrain Kuwait Oman Saudi Arabia UAE

%ofPopulation

3G Penetration evaluation Broadband Penetration evaluation

Information and Communications Technology Sector (ICT)

2006-07

Growth81% 95% 94% 66% 101%

2006-07

Growth26% 87% 80% 120% 71%

Sources: Analysys Ltd.; Booz Allen Hamilton


8/13

Trends and Drivers

Given the dynamics of technological innovation anddevelopment in the communications industry, multimediaconvergence, mobile broadband and internet usage areset to be the next battleground for operators. Althoughvoice communication will remain the major revenuegenerator for mobile operations in the medium term, dataand value-added services will play an important role indifferentiating operators and increasing the loyalty ofsubscribers.

Mobile telecom operators are moving towardsconvergence of services offering either trip-play or quad-

play for a number of reasons:

Warding off competition, through the provision ofdiverse services

Reducing subscriber churn rates

Increasing revenue sources

Consumer attitudes and behavior, particularly those ofteenagers and young adults, regarding communicationservices has significantly changed over the past decade.Evidence of this transformation can be seen in thegrowing popularity of online chatting, online socialnetworking applications (e.g. Facebook, Hi Five), peer-to-

peer file sharing and even online trading, all of which willdrive up the adoption of next-generation networkservices.

Growth drivers for broadband

Greater demand for digital content applications (e.g.online stock trading, Facebook, Youtube, Itunes, etc)

Growing young population

Increasing regional wealth

Low broadband penetration

Decreasing monthly access costs

Network technology advancements

7

UAE Telecom Industry (cont..)Information and Communications Technology Sector (ICT)

ICT Sector

The opportunities available in the UAE`s Information andCommunications Technology (ICT) industry are growingquickly. The value of the local market is expected toreach $2.4 billion by 2011 from $1.5 billion in 2006. Thecountry is expected to become the region`s premier ICThub due to its heavy investments, which are aimed atboosting the technological potential of the country and

the benefits of Dubai Internet City, Dubai Media City and

its free trade zones. Several major initiatives coupled with

regional trade and economic liberalization are expectedto boost IT growth in the UAE. IT in particular has becomea driving sector for growth in the UAE. The regional hubis leading the adoption and development of newtechnologies. Worldwide interoperability for microwaveaccess technology will give rise to more powerful andefficient notebooks, media internet devices and ultra-mobile personal computers due to the reduced power ofconsumption by 95 per cent

ICT market by 2010

$3.80

$2.40

$0.88

$0.40 $0.40 $0.38

$0.00

$1.00

$2.00

$3.00

$4.00

Saudi

Arabia

UAE Kuwait Qatar Oman Bahrain

Billion

Exhibit 8


9/13

Mobile and broadband to drive growth

The shift from fixed line to mobile will continue as thelevel of services offered to mobile subscribers grows indiversity and sophistication. With growing broadbandsubscriber base it is anticipated that the provision of dataand multimedia services will be an important revenuegrowth driver. The increased level of business start-upsand strength of economy in UAE is making high speeddata provision a necessity for further sustained economicgrowth.

Continued room for mobile subscriber growth

Strong mobile subscriber growth will be triggered by theUAEs rapidly growing population and increased inflow ofexpatriates, which, in turn, means high demand forinternational telecommunication services.

Given inflated subscriber numbers, it is believed thatthere is room for increases in the level of activesubscribers.

Fixed line revenue lagging behind

Revenues from the fixed line operations to continuedropping. Telecommunications Regulatory Authority

(TRA) has directed Etisalat and Du, the only two telecomoperators in the country, to make network adaptations inorder to provide CPS in the fixed line telephone by 2009.CPS allows telephone users to have their callsautomatically routed through a network offering lowercall cost, without the need to dial a prefix or use specialequipment.

The introduction of CPS will increase competition in theUAE telecom sector, reduce prices, and enable consumersto freely choose their provider of national andinternational fixed line call services

8

Broadband and internet poised for further growth

Internet and broadband will be the next revenue growthdriver , with broadband subscribers capturing the bulk of

the growth, since 52% of the UAE population is under theage of 29. This demographic age group tends to besophisticated in terms of technology use and couldbecome the engine for increased broadband penetration.

The hurdles for broadband growth include content

restriction and the usage of Voice over Internet Protocol(VoIP). According to a study conducted by OpenNetInitiative, almost 15.4% of the total number of websites ittested were blocked in the UAE, leading to a conclusionthat the UAE suffers from over-blocking, thus preventing its

citizens from accessing a considerable amount of material unrelated

to the UAE's expressed goals.

The TRA has maintained its position to ban VoIP servicesin the UAE, allowing it only through the licensed telecomoperators. The endorsement of VoIP will promotebroadband penetration, especially given that a significant78% of the total population in the UAE are

expatriates, who could use the inexpensive voice overinternet applications to make international calls.However, the flipside to the endorsement of VoIP wouldbe the decrease of international call revenues for telecomoperators.

UAE Telecom Industry (cont..)Forecast

110.5127.6

166.4

184 182 184

30.130.3 30.4 30.2

30.430.1

28

28.5

29

29.5

30

30.5

31

31.5

32

0

20

40

60

80

100

120

140

160

180

200

2005a 2006a 2007a 2008e 2009e 2010e

Mobile penetration (LH) Fixed penetration (RH)

Mobile versus fixed line penetration

Exhibit 9

5.9

7.4 7.8

9.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2007 2008e 2009e 2012e

USDbn

Total Telecom market projection

Source : Al Mal Capital


10/13

9

UAE Telecom Industry (cont..)Forecast

3,

683

4,

534

5,

519

7,

694

9,

231

10

,024

10

,784

11

,384

11

,902

0

20

40

60

80

100

120

140

160

180

200

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2004a 2005a 2006a2007a2008e2009e2010e2011e2012e

Subscribers ('000) Penetration

UAE Mobile Market

363

398

442

524

576

617

648

673

694

55

129

243

380

569 8

19

1,

130

1,

503

1,

953

0

5

1

1

2

2

3

3

4

4

5

0

500

1000

1500

2000

2500

3000

2004a 2005a 2006a 2007a 2008e 2009e 2010e 2011e 2012e

Dial-up Broadband Penetration

UAE Internet Market

1,

188

1,

23

7

1,

31

0

1,3

86

1,5

05

1,

626

1

,739

1,

826

1,

899

24

25

26

27

28

29

30

31

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2004a 2005a 2006a 2007a 2008e 2009e 2010e 2011e 2012e

Fixed-line Subs Penetration

UAE Fixed-line Market

Subscribers

('000)

Su

bscribers

('000

)

Fixed

Su

bs

('000

)

Penetration

Penetration

Source: UAE TRA, Al Mal Capital Research

Exhibit 10

Potential for Third Operator?

While there has been no official comment on thepotential for a third license being issued in the future, iis believed that, once du has profitably establisheditself, additional competition will be introduced either inthe form of a third universal license or as separateindividual licenses for fixed, broadband and ISP.However, no new licenses are issued prior to 2010, bywhich time du should be well established and profitable

MVNOs: Market Segment or Market Figment?

A Mobile Virtual Network Operator (MVNO) does not havenetwork infrastructure of its own but instead leasesnetwork capacity at a discounted rate from a license

holding operator and resells it to customers with additionalservices. MVNOs arguably enable the much larger license-holding operator to capture previously untapped segmentsof the operators market at reduced risk and cost, therebyincreasing and sustaining market share. There are nowmore than 300 such operators across the world and, insome countries, they outnumber licensed operators.

As for the UAE, MVNO entrant is unlikely during the next couple of

years, primarily because the regulatory framework for MVNOs is not in

place. Additionally, du is still expanding its mobile network

infrastructure. Furthermore, the existing infrastructure already at full capacity utilization in some of the key urbareas. Until one, or both, operators have sufficient exce

capacity to lease to a virtual operator, the added value oan MVNO in the UAE remains slim, at best.


11/13


12/13

DU

Emirates Integrated Telecommunications Company (EITC)became the UAEs second integrated telecom provider inDecember 2005, capitalized at AED 4bn by the UAEFederal Government (50%), Mubadala Development Co.(25%), and Emirates Communications and Technology Co.(25%). EITC then acquired from TECOM Investments theassets, capital and businesses of a number of itssubsidiaries, including an initial fixed-line subscriber baseof 19,100 business and consumer customers.

The UAE Telecom Regulatory Authority awarded EITC the

nations second universaltelecom license (20-year validity)in February 2006, at which point EITC unveiled itsoperating brand name, du.

In April 2006, 20% ofdus shares were listed on theDubai Financial Market in an IPO oversubscribed by 166times. The company launched domestic mobile servicesin February 2007, and by the end of 2007 claimed 1.5mnmobile customers and 46,000 fixed-linesubscribers, yielding a market share of 19% bymanagements estimate.

Broadband services currently rely on copper and coaxialcabling for last-mile delivery, though management statedsizeable investment in Next Generation Network (NGN)infrastructure that will deliver converged services at

higher speeds.

DUS initial acquisition of a number of TECOMsubsidiaries gave du the ability to offer fixed-line internetservices over limited areas. But, delivering wire-lineservice to every development in the UAE would not befinancially prudent, so alternatives to cabling must bepursued, WiMAX being one possible alternative. Building aduplicate fixed line network across the entire UAE wouldalso not make sense, so we would expect du toconcentrate on those areas with the highest populationdensities, namely Dubai and Abu Dhabi. This would allow

11

du to retain income from the highest revenue generatingcities, income that it would otherwise have to partially payto Etisalat as interconnect fees.

DU targets higher value international calls by offering allday international tariffs that match Etisalats off-peakrates.

Operations

dus broadcast business generates steady income butforms a relatively small portion of overall revenue (2.3% oftotal revenues in 2007). We forecast this to grow steadilyat 3% per year.

UAE Telecom Industry (cont..)Competitors profile

DUs UAE fixed-line

Exhibit 9

DUs UAE mobile

Source: UAE TRA, Al Mal Capital Research

1.

46

2.

03

2.

81

4.

05

0.

69

1.

18

1.

93

22%

28%

34%

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0

1

2

3

4

5

2007 2008 2009 2012

Subscribers (mn) Revenue ($ bn) Market Share

0.

046

0.

057

0.

07

0.

114

0.

28

0.

32 0

.47

4%4%

6%

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0

0.1

0.2

0.3

0.4

0.5

2007 2008 2009 2012

Subscribers (mn) Revenue ($ bn) Market Share


13/13

12

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MTI Consulting is a fast growing strategy consultancyworldwide, offering strategy consulting and advisoryservices. Our services focus on Strategic Planning, Re-

Structuring, Business Strategy, Marketing Strategy andMarket Entry as well as Specialist Services inFinance, Legal, HRM, Technology and Supply Chain.

Over the past 11 years, MTI has lent its strategicmanagement expertise to over 275+ Client-specificprojects in over 33 countries. MTI has operations inBahrain, Dubai, Malaysia, UK, India, Pakistan, Bangladesh, Sri Lanka and strategic alliances forming ourglobal network.

MTI Consulting was a strategic partner at the WorldIslamic Banking Conference (WIBC) for the last severalyears.

About MTI

BANGLADESH

MTI Consulting (Bangladesh) Ltd.Dhaka Sheraton HotelBSL Office Complex, Building 1, 3rd Floor1 Minto Road, RamnaDhaka 1000Tel: (88) 02 8830 103Email: [email protected]
http://www.mtiworldwide.com/index.htmlhttp://www.mtiworldwide.com/index.htmlhttp://www.mtiworldwide.com/index.htmlhttp://www.mtiworldwide.com/index.htmlhttp://www.mtiworldwide.com/index.html

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UAE_Telecom_Industry(2)