Fixed-mobile Convergence in Middle East and North Africa - Emerged in some Competitive Markets as a Strategy for Operators looking for new Sources of Growth

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Fixed-mobile Convergence in Middle East and North Africa

Summary

"Fixed-mobile Convergence in Middle East and North Africa", a new Telecom Insider Report by GlobalData, provides an overview of the state of fixed-mobile convergence (FMC) in the MENA region. The report draws from examples of fixed-mobile convergence from operators around the world to understand the market conditions which lead to convergence. The report first provides an overall introduction to FMC and a comparison of FMC development in different regions. It offers an analysis of the pathway in which operators converge, and examines the benefits of convergence, with examples from operators. Then it provides an overview of the MENA region in terms of FMC, and analyzes the conditions for those markets which have already seen convergence, as well as those who have not. Looking at 11 MENA markets in particular, the report provides and in-depth comparison of different conditions relevant to FMC development. Then the report dives into three case studies of fixed-mobile convergence in MENA: Bahrain, Egypt, and Turkey. The report concludes with recommendations for operators interested in pursuing FMC.

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Fixed-mobile convergence (FMC) has emerged in some competitive markets as a way for operators to differentiate and pursue growth. In MENA, FMC is nascent, with only a handful of opreators offering converged services. There are a number of market and regulatory conditions which support or hinder the development of FMC.

Scope

- Compared to Europe, where some operators have pursued fixed-mobile convergence as their central strategy, MENA has seen relatively few cases of convergence, and all of them relatively recent or at an early stage.
- The state of competition, regulation, and base of subscribers bi-equipped for both fixed and mobile services are key for the development of convergence.
- There is scope for more fixed-mobile convergence development in MENA. However, the feasibility and entrance point of convergence depends on the unique conditions of each market and the profile of each operator.

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Table of Contents

Executive summary 5
Section 1: Introduction to fixed-mobile convergence (FMC) 6
Section 2: MENA market overview 15
Section 3: Case studies 22
Section 4: Key findings and recommendations 29

List of Tables
Exhibit 1: Common convergence strategies 7
Exhibit 2: FMC households penetration by region 8
Exhibit 3: Generic phases of market development and examples of product bundle 9
Exhibit 4: Typical conditions for rapid convergence market development 10
Exhibit 5: Plus Poland mobile + mobile broadband/pay-TV 11
Exhibit 6: KPN Netherlands FMC benefits 12
Exhibit 7: FMC effect on Portugal Telecom 13
Exhibit 8: Expected and actual OPEX and CAPEX range synergy from integrating fixed and mobile networks 14
Exhibit 9: Markets with converged services in MENA 16
Exhibit 10: Typical conditions for FMC development in MENA 17
Exhibit 11: Competition in MENA mobile markets 2016 18
Exhibit 12: FMC regulation in MENA 19
Exhibit 13: Household penetration of fixed-mobile bi-equipped accounts in MENA in 2016 20
Exhibit 14: FMC prospects in MENA 21
Exhibit 15: FMC bundles in Egypt 23

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