Executive Summary

The telecoms industry in the Middle East region is slowly but surely shedding its status as an underdeveloped, overprotected or closed market. The region is a jigsaw of countries at various stages of economic development and market liberalisation.

This level of development and liberalisation is reflected in the telecom industry of countries in the region, ranging from Qatar’s total monopoly of the telecoms market until 2013, to Israel’s total market liberalisation, to conservative Iran’s shaky attempts at market reform to cater for the massive unmet demand for mobile services. However the rate of change, particularly in market liberalisation, is gaining momentum, driven by a combination of factors: World Trade Organisation (WTO) and other international body requirements, the desire to improve the quality of services and the desire to improve the standard of living through economic investment. The initial wave of liberalisation was in the mobile market. The result of this is evident today as there are 11 countries with two or more mobile operators. The first wave was sometimes either accompanied or followed by liberalisation of data markets such as those in Lebanon and Saudi Arabia. The third and final wave, liberalisation of fixed-line voice markets has already swept over Israel, Bahrain and Jordan and will soon occur in Saudi Arabia.

Bahrain and Jordan have recently created a regulatory environment conducive to competition. With the exception of mobile voice, both countries have opened all sectors of the market to unlimited competition. New operators will enter the markets and, like in most countries that have just opened their markets, go for the most profitable sectors such as international voice and data. Saudi Arabia is set to follow down the path taken by Israel, Bahrain and Jordan soon when it announced plans to liberalise fixed-voice markets two years earlier than anticipated.

Apart from regulatory developments, the upcoming increase in wholesale international bandwidth will have a major impact on affordability of services in the region. SEA-ME-WE 4 and the FLAG Falcon cable, both set to go live in late-2005, have landing stations in a number of Middle East countries. The sudden influx of wholesale international bandwidth should lead to a drop in wholesale prices and result in cheaper prices for end-user services.

1. EXECUTIVE SUMMARY
2. OVERVIEW AND ANALYSIS – 2005
2.1 Key developments in the Middle East telecom market
2.2 Market overview
2.2.1 Telecommunications infrastructure
3. BAHRAIN
3.1 Telecommunications market
3.1.1 Overview of Bahrain’s telecom market
3.1.2 Market analysis 2005
3.2 Fixed network operators in Bahrain
3.2.1 Bahrain telecomunications company (Batelco)
3.3 Telecommunications infrastructure
3.3.1 National telecom network
3.3.2 International infrastructure
3.3.3 Infrastructure developments
4. IRAN
4.1 Telecommunications market
4.1.1 Overview of Iran’s telecom market
4.1.2 Market analysis 2005
4.2 Fixed network operator in Iran
4.2.1 Telecommunication Company of Iran (TCI)
4.3 Telecommunications infrastructure
4.3.1 National telecom network
4.3.2 International infrastructure
4.3.3 Infrastructure developments
5. IRAQ
5.1 Telecommunications market
5.1.1 Overview of Iraq’s telecom market
5.2 Fixed network operator in Iraq
5.2.1 Iraqi Telephone and Postal Company (ITPC)
5.3 Telecommunications infrastructure
5.3.1 National telephone network
5.3.2 Pre-war background
5.3.3 International infrastructure
5.3.4 Infrastructure developments
6. ISRAEL
6.1 Telecommunications market
6.1.1 Overview of Israel’s telecom market
6.1.2 Analysis 2005
6.2 Fixed network operators in Israel
6.2.1 Overview of operators
6.2.2 VoIP telephony trials
6.3 Telecommunications infrastructure
6.3.1 National telecom network
6.3.2 International infrastructure
6.3.3 Infrastructure developments
7. JORDAN
7.1 Telecommunications market
7.1.1 Overview of Jordan’s telecom market
7.1.2 Analysis 2005
7.2 Fixed network operator in Jordan
7.2.1 Jordan Telecom
7.3 Telecommunications infrastructure
7.3.1 National telecom network
7.3.2 International infrastructure
7.3.3 Infrastructure developments
8. KUWAIT
8.1 Telecommunications market
8.1.1 Overview of Kuwait’s telecom market
8.2 Telecommunications infrastructure
8.2.1 National telecom network
8.2.2 International infrastructure
8.3 Data market
8.3.1 Overview
9. LEBANON
9.1 Telecommunications market
9.1.1 Overview of Lebanon’s telecom market
9.2 Fixed network operators in Lebanon
9.2.1 Ogero Telecom
9.3 Telecommunications infrastructure
9.3.1 National telecom network
9.3.2 International infrastructure
9.3.3 Infrastructure developments
9.4 Data market
9.4.1 Ogero
9.4.2 Sodetel
9.4.3 GlobalCom Data Services / InvestCom
9.4.4 Cedarcom
10. OMAN
10.1 Telecommunications market
10.1.1 Overview of Oman’s telecom market
10.2 Fixed network operator in Oman
10.2.1 Oman Telecommunications Company (OmanTel)
10.3 Telecommunications infrastructure
10.3.1 National telecom network
10.3.2 International infrastructure
10.3.3 Infrastructure developments
10.4 Data market
10.4.1 Overview
10.4.2 Leased lines
10.4.3 Integrated Services Digital Network (ISDN)
10.4.4 Very Small Aperture Terminal (VSAT) networks
11. QATAR
11.1 Telecommunications market
11.1.1 Overview of Qatar’s telecom market
11.1.2 Market analysis 2005
11.2 Fixed network operator in Qatar
11.2.1 Q-Tel
11.3 Telecommunications infrastructure
11.3.1 National telecom network
11.3.2 International infrastructure
11.4 Data market
11.4.1 Overview
12. SAUDI ARABIA
12.1 Telecommunications market
12.1.1 Overview of Saudi Arabia’s telecom market
12.2 Fixed network operator in Saudi Arabia
12.2.1 Saudi Telecom Company (STC)
12.3 Telecommunications infrastructure
12.3.1 National telecom network
12.3.2 International infrastructure
12.3.3 Infrastructure developments
12.4 Data market
12.4.1 Overview
12.4.2 Leased lines
12.4.3 Very Small Aperture Terminal (VSAT)
13. SYRIA
13.1 Telecommunications market
13.1.1 Overview of Syria’s telecom market
13.2 Telecommunications infrastructure
13.2.1 National telecom network
13.2.2 International infrastructure
14. TURKEY
14.1 Telecommunications market
14.1.1 Overview of Turkey’s telecom market
14.1.2 Market analysis 2005
14.2 Fixed network operator in Turkey
14.2.1 Turk Telekom
14.3 Telecommunications infrastructure
14.3.1 National telecom network
14.3.2 International infrastructure
14.3.3 Infrastructure developments
15. UNITED ARAB EMIRATES
15.1 Telecommunications market
15.1.1 Overview of UAE’s telecom market
15.1.2 Market analysis 2005
15.2 Fixed network operator in UAE
15.2.1 Emirates Telecommunications Corporation (Etisalat),
15.3 Telecommunications infrastructure
15.3.1 National telecom network
15.3.2 International infrastructure
15.3.3 Infrastructure developments
15.4 Data market
15.4.1 Leased lines
15.4.2 Frame relay
15.4.3 Asynchronous Transfer Mode (ATM)
15.4.4 Integrated Services Digital Network (ISDN)
16. YEMEN
16.1 Telecommunications market
16.1.1 Overview of Yemen’s telecom market
16.2 Fixed network operators in Yemen
16.2.1 TeleYemen
16.2.2 Public Telecommunications Corporation (PTC)
16.3 Telecommunications infrastructure
16.3.1 National telecom network
16.3.2 International infrastructure
16.3.3 Infrastructure developments
16.4 Data market
16.4.1 Overview
17. GLOSSARY OF ABBREVIATIONS




Table 1 – Middle East economic statistics – 2003
Table 2 – Fixed-line teledensities– 2001, 2003
Table 3 – Telephone network statistics – 2003
Table 4 – Fixed lines in service - 1995 - 2003
Table 5 – Telephone network statistics – 2004
Table 6 – Fixed lines in service 1995 - 2004
Table 7 – Telephone network statistics – 2002
Table 8 – Telecom revenue and investment statistics – 2002
Table 9 – Telephone network statistics – 2003
Table 10 – Fixed-line growth and teledensity – 1995 - 2003
Table 11 – Telephone network statistics – 2003
Table 12 – Fixed lines in service – 1995 - 2004
Table 13 – Telecom revenue and investment statistics – 2002
Table 14 – Telephone network statistics – 2003
Table 15 – Fixed lines in service - 1995 - 2003
Table 16 – Telephone network statistics – 2004
Table 17 – Fixed lines in service - 1996 - 2002; 2004
Table 18 – Telecom revenue and investment statistics – 2002
Table 19 – Telephone network statistics – 2004
Table 20 – Fixed lines in service - 1995 - 2004
Table 21 – Telecom revenue and investment statistics – 2002
Table 22 – Telephone network statistics – 2003
Table 23 – Smaller Arabian Gulf countries telecoms penetration comparison – 2003
Table 24 – Q-Tel revenue - 1999 - 2003
Table 25 – Q-Tel revenue by segment - 2003
Table 26 – Fixed lines in service - 1995 - 2003
Table 27 – Telecom revenue and investment statistics – 2002
Table 28 – Telephone network statistics – 2003
Table 29 – Fixed lines in service - 1994 - 2003
Table 30 – Telecom revenue and investment statistics – 2001
Table 31 – Telephone network statistics – 2002
Table 32 – Fixed lines in serviceand teledensity – 1995 - 2002
Table 33 – Telecom revenue and investment statistics – 2002
Table 34 – Telephone network statistics – 2003
Table 35 – Fixed lines in serviceand teledensity – 1995 - 2003
Table 36 – Telecom revenue and investment statistics – 2002
Table 37 – Telephone network statistics – 2003
Table 38 – Fixed lines in service and teledensity - 1995 - 2003
Table 39 – Leased line subscribers - 2002 - 2003
Table 40 – ISDN subscribers - 1995 - 2002
Table 41 – Telecom revenue and investment statistics – 2002
Table 42 – Telephone network statistics – 2002
Table 43 – Fixed lines in service and teledensity – 1995 - 2002