Press launch

Doha, Qatar

6 March 2012

Cosmas Zavazava

Chief

Project Support and Knowledge Management Department

ITU/BDT

3

Main findings

Strong growth in mobile-cellular subscriptions, from 39% penetration in 2006 to almost 100% penetration in 2011

Relatively low fixed-telephone network and fixed (wired)-broadband uptake

Relatively high fixed-broadband prices Almost 30% of the population in the region is online Almost all countries have launched 3G and WiMAX

services

4

ICT developments in the Arab region, 2006-2011

Strong growth in mobile telephony over the last five years, from 39% to 100% penetration

Almost all countries have launched a 3G network Active mobile-broadband subscriptions have increased

from 1% penetration to around 13% Internet usage penetration has increased from 11% to

almost 30% Fixed (wired)-broadband penetration has increased from

0.3 % to 2.2%

5

ICT developments in the Arab region, 2006-2011Strong growth in mobile-cellular subscriptions

…

Note: 2011 data are ITU estimates ** Data on fixed (wired)-broadband subscriptions exclude WiMAX subscriptionsSource: ITU World Telecommunication/ICT Indicators database

0

10

20

30

40

50

60

70

80

90

100

2006 2007 2008 2009 2010 2011*

Pe

r 1

00

in

ha

bit

an

ts

Mobile-cellular telephone subscriptions

Internet users

Active mobile-broadband subscriptions

Fixed-telephone subscriptions

Fixed (wired)-broadband subscriptions* *

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Mobile-cellular penetration (2011)

At the end of 2011, the Arab region reached a very high mobile-cellular penetration: 97% compared to the world average of 87%

There are significant differences in mobile-cellular penetration between GCC countries (173%) and non-GCC countries (76%)

7

Mobile-cellular penetration (2011)Major differences exist within the region

Note: 2011 data are ITU estimates Source: ITU World Telecommunication/ICT Indicators database

143.0

119.5

103.3

96.7

86.7

73.9

53.0

0 50 100 150 200

CIS

Europe

The Americas

Arab States

World

Asia & Pacific

Africa

Per 100 inhabitants

187.9

173.3

171.5

165.5

160.8

145.5

132.4

124.2

107.0

106.0

100.1

92.4

87.1

79.3

75.9

75.8

68.0

57.8

46.1

40.5

22.5

18.6

7.0

0 20 40 60 80 100 120 140 160 180 200

Saudi Arabia

GCC countries

Libya

Oman

Kuwait

UAE

Qatar

Bahrain

Jordan

Tunisia

Morocco

Algeria

Egypt

Mauritania

Non GCC countries

I raq

Lebanon

Syria

Yemen

Sudan

Comoros

Djibouti

Somalia

Per 100 inhabitants

8

Fixed (wired)-broadband subscriptions

Between 2006 and 2011, fixed (wired) broadband has grown relatively slowly in the Arab region

At the end of 2011, fixed (wired)-broadband penetration stood at 2.2% (8 million subscriptions compared to 1 million in 2006) in the Arab region, compared to almost 5% in the developing world and 8.5% globally

This reflects to some extent the limited fixed network in the region as a whole

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Fixed (wired)-broadband subscriptionsRelatively low uptake of fixed broadband

2006-2011

Note: Data on fixed (wired)-broadband subscriptions exclude WiMAX subscriptions; 2011 data are ITU estimatesSource: ITU World Telecommunication/ICT Indicators database

0

5

10

15

20

25

30

2006 2007 2008 2009 2010 2011*

Pe

r 1

00

in

ha

bit

an

ts

Developed

World

Developing

Arab States

25.8

15.5

9.6

8.5

6.2

2.2

0.2

0 10 20 30

Europe

The Americas

CIS

World

Asia & Pacific

Arab States

Africa

Per 100 inhabitants

2011

10

Active mobile-broadband subscriptions

Wireless broadband is growing fast in the region, including the deployment of WiMAX and 3G mobile broadband services

Active mobile-broadband subscriptions (48 million in 2011 compared to 3 million in 2007) in the Arab region reached 13% penetration in 2011

Comparing with other regions: 8.5% in the developing world, 10.7% in Asia and the Pacific, and 3.8% in Africa

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Active mobile-broadband subscriptionsFast-growing wireless broadband

….Note: 2011 data are ITU estimates Source: ITU World Telecommunication/ICT Indicators database

0

10

20

30

40

50

60

2007 2008 2009 2010 2011*

Pe

r 1

00

in

ha

bit

an

ts

Developed

World

Arab States

Developing

54.1

30.5

17.0

14.9

13.3

10.7

3.8

0 20 40 60

Europe

The Americas

World

CIS

Arab States

Asia & Pacific

Africa

Per 100 inhabitants

2007-2011 2011

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WiMAX and 3G licenses in Arab countries, mid-2011

Strong growth in wireless-broadband uptake is the result of strong increase in operational licenses

Most Arab countries have started to deploy wireless- broadband networks (WiMAX and 3G)

Some of the GCC countries are early adopters (as of 2003)

These are promising developments in view of the relatively low fixed-broadband penetration

13

WiMAX and 3G licenses in Arab countries: mid-2011

Wireless-broadband licensing on the rise

…

Note: *3G services were not available in 2011Source: ITU, operators, Arab Advisors Group

3 3 3 3 3 3

2 2 2 2 2 2

1 1 1 1

0 0 0

2 2

3

2

0

4

1

2 2

1

0

2

5

4

1 1

5

1

00

1

2

3

4

5

6

Number of operational 3G licensees

Number of operational WiMAX licensees

14

Internet users in the Arab region: 2011

In the Arab region, 29% of people are currently using the Internet, compared to 35% globally, 26% in developing countries, 27% in Asia-Pacific and 13% in Africa

These numbers are expected to increase with the growth of wireless broadband

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Internet users in the Arab region, 2011Less than 1 out of 3 people are online

…. Note: 2011 data are ITU estimates ** Commonwealth of Independent StatesSource: ITU World Telecommunication/ICT Indicators database

74.4

56.3

47.6

29.127.2

12.8

0

10

20

30

40

50

60

70

80

Europe The Americas CIS* * Arab States Asia & Pacific Africa

Pe

r 1

00

in

ha

bit

an

ts

16

ITU Fixed-broadband sub-basket, 2010

Strong link between ICT uptake and cost of ICT services ITU ICT Price Basket shows that average cost of ICT services,

and in particular fixed-broadband services, in the Arab region is higher compared to other regions (except Africa)

In 2010, the average price of an entry-level fixed broadband package in the region cost the equivalent of 52% of average monthly GNI per capita

Note: these figures are ofcourse influenced by very high prices in a few of the region’s low-income countries

17

ITU Fixed-broadband sub-basket, 2010Fixed broadband is still relatively expensive for the user

…. Source: ITU

1.4 1.5 7.322.4 27.3

52.6

112.2

291.3

0

50

100

150

200

250

300

0

50

100

150

200

250

300

350

Europe Developedcountries

CIS TheAmericas

Asia &Pacific

Arab States Developingcountries

Africa

US$

PPP$

Fixed-broadband sub-basket as % of GNI capita, 2010

Mo

ne

ta

ry u

nit

s

% m

on

th

ly G

NI

pe

r c

ap

ita

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Concluding remarks

Integrate ICT strategies into overall national economic development plans and establish concrete targets to monitor progress

Continue to promote a transparent and predictable regulatory environment to foster investment and competition in the sector

Increase investment in fixed infrastructure Leverage on wireless technologies to increase broadband Internet

access Make broadband more affordable in line with Broadband

Commission target 2 (i.e. to cost less than 5% of average monthly GNI per capita by 2015).

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For further information:

indicators[at]itu.int

The report will be available at:

www.itu.int/ict