Middle East - Increased challenges in Mobile Network Operators and MVNOs; along with a reduction in Mobile Termination Rates

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Many Middle Eastern Mobile Operators are facing increased challenges in the mobile sector, due primarily to regulatory reforms, liberalisation, Over-The-Top providers, economic and civil conditions, the lifting of sanctions (Iran) and mobile market saturation.

Competition in particular has grown in many markets. Saudi Arabia, which has the largest ICT market in the Middle East, has seen mobile market competition increase significantly with the introduction of MVNOs; along with a reduction in Mobile Termination Rates (MTRS).

The level of competition differs between country to country however. The mobile market in the UAE, for example, is served by a duopoly comprised of incumbent Etisalat and, since 2007, competing operator du. Both operators are majority owned by the government.

In Israel, factors that have helped drive competition include the introduction of full mobile number portability and the installation of regulatory barriers that prevent operators from linking sales of handsets to services, or offering discounts to customers that commit to longer periods. Strong competition in Israel has led to operators focusing on mobile data and content opportunities as well as on costs, resulting in a number of infrastructure sharing agreements.

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To cope with rising competition in Bahrain, Batelco, expanded its operations internationally to offset the competitive domestic market and its foreign operations now contribute almost 60% to group revenues.

In Lebanon, there has been growing pressure from both consumers and the telecommunications minister to see the two mobile operators (Alfa and Touch) lower mobile pricing. In response, the operators began offering cheaper packages in late 2016. Jordan’s mobile operators have also begun to experience a similar growing discontent from its mobile consumers as its telecoms sector is one of the most highly taxed in the region.

Taxes have also impacted upon Iraq’s telecoms markets where the mobile operators’ revenues have declined due partly to the 20% tax levy placed against mobile services in 2015.

The mobile market in Kuwait is highly competitive amongst the three major mobile providers, (Zain, Ooredoo, Viva) and while Zain has the highest market share of about 38%, the other two are not far behind, capturing over 30% each as well.

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Table of Content

1. Regional mobile overview
1.1 Overview by country
1.1.1 Bahrain
1.1.2 Israel
1.1.3 Lebanon
1.1.4 Saudi arabia
1.1.5 United arab emirates
1.1.6 Iran
1.1.7 Jordan
1.1.8 Oman
1.1.9 Syria
1.1.10 Yemen
1.1.11 Iraq
1.1.12 Kuwait
1.1.13 Qatar
1.1.14 Turkey
1.2 Regional mobile subscriber statistics
1.3 Leading mobile operators by country

2. Bahrain
2.1 Market analysis
2.2 Regulatory issues
2.2.1 Second mobile licence
2.2.2 Third mobile licence
2.2.3 Prepaid subscriber registration
2.2.4 Roaming tariff reduction
2.2.5 MNP

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