The Middle East - Contrasts and Opportunities
By Tine Lewis - Senior Analyst Middle East

The Mediterranean and Levant countries in the Middle East include Egypt, Israel, Jordan, Lebanon, Syria and Turkey. This area is fascinating in terms of contrasts and opportunities. Egypt, Israel, Jordan and Turkey have all benefited greatly from comparatively well developed regulatory systems and competitive markets resulting in strong investment in telecommunications. Syria remains steadfastly against liberalisation and competition and consequently has an undeveloped market. Lebanon is poised to choose which course it will take.

Israel has a very dynamic telecommunications market with one of the highest mobile penetration rates in the world and one of the highest household broadband penetration rates.

In Israel regulatory policies have produced intense competition with several very strong players and a very advanced and highly developed market where telecommunications and media are converging in a digital environment. Household broadband penetration is around 70%, mobile penetration is well over 100% and 3G penetration around 30%. These figures, together with Israel's flourishing IT and venture capital sectors, indicate fertile ground for digital media developments.

Turkey has a unique position in the region with its links to the European Union. It has a healthy mobile market and growing broadband penetration.

The most populous country in the Arab world, Egypt now boasts a world-class telecommunications infrastructure that provides extensive coverage and connectivity. The country is home to the largest fixed-line network in the Arab region, accounting for around one quarter of all telephone lines.

Egypt and Jordan are not rich countries but sensible policies have resulted in relatively open and developed markets. Egypt has emerged as the largest Arab Internet market thanks to the successful implementation of a free Internet strategy. Jordan has mobile penetration of over 80%, probably inflated by non-Jordanian nationals and multi-SIM usage, but still indicative of a highly developed market.

Jordan has one of the most deregulated telecommunications markets in the Middle East. Broadband penetration is extremely low. The incumbent telco JTG sees IP-based dual and triple play services as the most effective way to reinvigorate its declining fixed-line business. It has launched VoIP services and also intends to add video services

Lebanon is a battle ground between groups that would stifle development in the manner of Syria and those that seek to liberalise the market and bring the benefits of mobile and broadband services to a larger proportion of the population..

While fixed-line, Internet and broadband penetration rates are low in the Arab countries of the region, one must always take into consideration larger household sizes, young populations and a habit of sharing broadband and cable TV subscription amongst neighbours.

Mobile penetration and annual growth in the Mediterranean and Levant countries of the Middle East - 2008

East – 2008

Country	Penetration	Annual Growth
Egypt	43%	58%
Israel	125%	7%
Jordan	80%	20%
Lebanon	30%	10%
Syria	33%	38%
Turkey	85%	19%

(Source: BuddeComm)

For more information see -
2008 Middle East - Telecoms Mobile & Broadband in The Mediterranean & Levant countries

Click here for a full analysis of the Africa and Middle East Mobile Telecoms Market 4Q 2008 with subscriber numbers and mobile penetration for all operators and States.

Top of Page