A Regional Overview of Telecoms & Media

Markets

Faten BaderSenior Research Analyst

GVF MENASAT @ Satellite MENA Summit February 9, 2011

• An overview of the Arab cellular market

• An overview of the Arab fixed market

• An overview of the Arab Internet and 3G markets

• A brief on the media landscape in the Arab World : TV and radio

Outline

Cellular market overview

7 countries(37% )

3 countries(16% )

9 countries(47% )

13 countries(68% )6 countries

(32% )

Monopoly cellular markets disappeared

Source: Arab Advisors Group, February 2011

20112005

Competitive MonopolyDuopoly

Cellular regulatory framework

66 million cellular lines in Egypt by end of June 2010

Source: Arab Advisors Group

Cellular lines 000' (J une 2010)

65

,83

4

47

,20

0

27

,87

9

22

,55

1

10

,73

8

10

,65

0

9,7

88

6,2

50

4,3

94

4,3

57

2,6

89

2,5

45

.5

2,5

26

1,6

73

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Egyp

t

Saudi A

rabi

a

Mor

occo

I raq

Tunisia UAE

Syria

Jord

an

Oman

Kuwait

Qatar

Leba

non

Palest

ine

Bahra

in

UAE had the highest cellular penetration rate by end of June 2010

Source: Arab Advisors Group

Cellular lines' penetration (J une 2010)

22

9%

18

6%

16

5%

14

4%

14

2%

12

2%

10

3%

10

2%

88

%

84

%

76

%

64

%

62

%

48

%

0%

50%

100%

150%

200%

250%

UAE

Saudi A

rabi

a

Qatar

Oman

Bahra

in

Kuwait

Jord

an

Tunisia

Mor

occo

Egyp

tI raq

Leba

non

Palest

ine

Syria

Fixed market overview

5 countries(26% )

10 countries(53% )

4 countries(21% )

1 country(5%)

17 countries(89% )

1 country(5%)

About half of the Arab countries still have a monopoly fixed market

Source: Arab Advisors Group, February 2011

20112005

Competitive MonopolyDuopoly

Fixed regulatory framework

12 Arab countries had 27 million fixed lines by end of June 2010

Source: Arab Advisors Group

Fixed lines 000' (June 2010)9

,42

4

4,3

00

3,9

78

3,6

83

1,4

56

1,2

77

1,0

15

49

9

40

4

28

8

28

3

19

2

0

2,000

4,000

6,000

8,000

10,000

Egyp

t

Saud

i Ara

bia

Syria

Mor

occo UAE

Tunisia

Yem

en

J ord

an

Palest

ine

Qatar

Oman

Bahr

ain

Fixed lines penetration (June 2010)

31

%

20

%

18

%

17

%

16

%

12

%

12

%

12

%

10

%

9%

8%

4%

0%

10%

20%

30%

40%

UAESy

ria

Qatar

Saud

i Ara

bia

Bahr

ain

Tunisia

Egyp

t

Mor

occo

Palest

ine

Oman

J ord

an

Yem

en

UAE takes the lead in fixed line penetration by June 2010

Source: Arab Advisors Group

Internet market overview

14 countries(74% )

1 country(5%)

4 countries(21% )

1 country(6%)

5 countries(28% )

12 countries(67% )

Most of the Arab countries have competitive Internet markets

Source: Arab Advisors Group, February 2011

20112005

Competitive MonopolyDuopoly

Internet regulatory framework

Ten more operators deployed 3G networks in the Arab World since April

2008

Oman

Qatar

Yemen

Syria

Egypt

Palestine

Source: Arab Advisors Group’s 3G/3.5G Cellular Services in the Arab World

April 2008 December 2009

44%56%

60% 40%

Operators that offer 3G/3.5G services Operators that do not offer 3G/3.5G services

The Syrian operators joined the 3G/3.5G club

Oman

Qatar

Yemen

Syria

Egypt

Palestine

Source: Arab Advisors Group’s 3G/3.5G Cellular Services in the Arab World

2 2

1

2

1 1

2

1 1

2 2

0

22

3

1

3

1

2

3

2 2

3 3

2 2

0

1

2

3

4

Bahra

in

Egyp

tI raq

Kuwait

Libya

Mau

ritan

ia

Mor

occo

Oman

Qatar

Saudi A

rabia

Sudan

Syria

UAE

April 2008 December 2009

A brief on the media landscape in the Arab World

Survey findings: TV viewer-ship

TV viewership

96%

95%95% 95%

94%

95%

96%

97%

UAE Jordan Saudi Arabia Tunisia

Almost everybody (+90%) watches TV..

Note: Percentages were calculated from the total Internet users in the UAE, Jordan and Saudi Arabia and the total respondents in Tunisia

Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media

Survey of Internet Users 2010, Saudi Arabia Media Survey of Internet Users 2011, Tunisia Media Survey 2010

Changing TV viewing habits in Ramadan

81% 78%

62%

0%

20%

40%

60%

80%

Jordan Saudia Arabia UAE

The majority change their TV viewing habits during Ramadan

Note: Percentages were calculated from the total Internet users who watch TV in the UAE, Jordan and Saudi Arabia

Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media

Survey of Internet Users 2010, Saudi Arabia Media Survey of Internet Users 2011

Satellite TV

Free-To-Air satellite TV channels growth

100

155

200 205

263290

370

474 487

0

100

200

300

400

500

600

J an-04 J ul-05 Nov-05 Apr-06 Oct-06 J an-07 Aug-07 Mar-09 Apr-10

13 channels added

Note: The satellite systems included in the analysis are Arabsat, Nilesat and NoorsatSource: Arab Advisors Group’s Satellite TV in the Arab World 2010

Nilesat

NoorsatArabsat

44%

11%15%

1%25%

2%

1%

Source: Arab Advisors Group’s Satellite TV in the Arab World 2010

Nilesat has the highest share of FTA satellite channels (April 2010)

Satellite dish receivers are widespread among households

Availability of satellite dish at home

99% 97%

77% 76%

0%

20%

40%

60%

80%

100%

120%

Bahrain Tunisia UAE Lebanon

Note: Percentages were calculated from the total respondents in Bahrain, Tunisia, Lebanon and the total Internet users in the UAE

Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Lebanon

Media Survey 2008, Bahrain Media Survey 2008, Tunisia Media Survey 2010

Pay TV

15 channels(16% )

80 channels(84% )

OSN adds five ART Arabic entertainment channels to its portfolio

Source: OSN and Al Jazeera Sports

Pay TV providers’ channels, February 2011

Orbit Showtime Network Al Jazeera Sports

How respondents get Pay TV channels

56% 58%

85%

34%

20%

37%

5%

55%

0%

20%

40%

60%

80%

100%

Saudi Arabia Jordan Tunisia UAE

Legal subscription Dream Box

However, OSN terminated the illegal use of Dream Box…

Some people used to get their Pay TV channels illegally through Dream Box

Note: Percentages were calculated from the total Internet users who watch TV in the UAE, Jordan and Saudi Arabia and the total respondents who watch TV in Tunisia

Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media Survey of

Internet Users 2010, Saudi Arabia Media Survey of Internet Users 2011, Tunisia Media Survey 2010

10 HD channels(29% )

24 HD channels(71% )

22 HD channels(55% )

18 HD channels(45% )

The rise of HD channels in the Arab World

Source: Arab Advisors Group, January 2011

Arabsat and Nilesat Pay TV and FTA

Arabsat

Nilesat FTA

Pay TV

Terrestrial TV

122129

138

98

0

20

40

60

80

100

120

140

160

August 2006 May 2008 April 2009 December 2010

Terrestrial TV channels growth

9 channels added

Source: Arab Advisors Group’s Terrestrial TV in the Arab World 2010

Palestine have the highest terrestrial TV channels among the 19 Arab countries

Source: Arab Advisors Group’s Terrestrial TV in the Arab World 2010

Terrestrial TV channels in the Arab World

22%

15%

13%

13%

6%

6%

4%

4%

3%

2%

2%

2%

1%

1%

1%

1%

1%

1%

0%

0% 5% 10% 15% 20% 25%

Palestine

Iraq

Egypt

Sudan

Lebanon

Morocco

Bahrain

UAE

Saudi Arabia

Kuwait

Tunisia

Libya

J ordan

Syria

Yemen

Qatar

Algeria

Mauritania

Oman

Terrestrial TV is less preferred than satellite TV

Terrestrial TV viewership

43%

32%

24%

43%

0%

20%

40%

60%

Bahrain Tunisia UAE Jordan

Note: Percentages were calculated from the total respondents who watch TV in Bahrain, Tunisia and Lebanon and the total Internet users who watch TV in Jordan

Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media Survey

2010, Bahrain Media Survey 2008, Tunisia Media Survey 2010

Radio

Local FM radio stations growth

Source: Arab Advisors Group’s FM Radio in the Arab World 2009

243

307

338

0

50

100

150

200

250

300

350

400

J anuary 2007 February 2008 J uly 2009

31 FM radio stations added

The majority of respondents listen to the radio

Listening to the radio

87%

76%72%

87%

0%

20%

40%

60%

80%

100%

UAE Jordan Bahrain Tunisia

Note: Percentages were calculated from the total respondents in Bahrain and Tunisia and the total Internet users in the UAE and Jordan

Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media Survey

2010, Bahrain Media Survey 2008, Tunisia Media Survey 2010

People prefer FM radio stations

Listening to FM radio stations

79%

61%

85%

0%

20%

40%

60%

80%

100%

Jordan UAE Bahrain

Note: Percentages were calculated from the total respondents in Bahrain and the total Internet users in the UAE and Jordan

Source: Arab Advisors Group survey reports; UAE Media Survey of Internet Users 2009, Jordan Media Survey

2010, Bahrain Media Survey 2008

Arab Advisors Group

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