An overview of Jordans mobile market: Current status, - - PowerPoint PPT Presentation

An overview of Jordan’s mobile market:

Current status,

• pportunities and

challenges

Prepared for: Realizing Jordan’s Mobile Future, GSMA event April 28, 2014

98.7% 173.0% 116.0% 83.5% 114.6% 164.6% 89.8% 153.3% 116.3% 128.7% 141.8% 76.1% 196.5% 169.4% 79.8% 59.7% 116.8% 177.1% 60.1% 0% 50% 100% 150% 200% 250%

Algeria Bahrain Egypt Iraq Jordan Kuwait Lebanon Libya Mauritania Morocco Oman Palestine Qatar Saudi Arabia Sudan Syria Tunisia UAE Yemen

Mobile penetration %

Mobile adoption in the Arab region (2013)

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Note: Cellular subscriptions in Iraq, Syrian, Libya and Mauritania are estimated by the Arab Advisors Group. Our estimates are mainly based on reported data by market constituents, in addition to Historical trends.

Source: Operators, regulators , Arab Advisors Group 38,224 2,210 99,700 29,264 10,314 6,533 3,885 10,237 4,215 42,424 5,623 3,363 3,805 50,800 28,849 13,367 12,712 15,694 15,178 20,000 40,000 60,000 80,000 100,000 120,000 Algeria Bahrain Egypt Iraq Jordan Kuwait Lebanon Libya Mauritania Morocco Oman Palestine Qatar Saudi Arabia Sudan Syria Tunisia UAE Yemen

Mobile subscriptions (000s)

9.3% 3.9% 11.4% 9.0% 4.6% 4.2% 29.8% 0.0% 5.7% 19.1% 2.4% 3.9% 4.8% 12.5% 0% 10% 20% 30% 40%

Algeria Bahrain Egypt Iraq Jordan Kuwait Lebanon Libya Mauritania Morocco Oman Palestine Qatar Saudi Arabia

Dedicated data SIMs as a % of mobile subscriptions

Mobile broadband - Dedicated Data SIMs - in the Arab world (2013)

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Note: Dedicated Data SIMs in Lebanon, Morocco, Sudan, Syrian and Tunisia are estimated by the Arab Advisors Group.

Source: Operators, regulators , Arab Advisors Group 206 3,900 1,174 588 178 1,796 1,676 217 9,680 692 521 615 1,962 2,000 4,000 6,000 8,000 10,000 12,000 Bahrain Egypt Jordan Kuwait Lebanon Morocco Oman Palestine Qatar Saudi Arabia Sudan Syria Tunisia UAE

Dedicated mobile data sims (000s)

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Jordan’s mobile market players

Second market entrant, and first operator to launched 3G in the kingdom during March 2010 Incumbent

• perator that is

Managing 2G and 3G

• networks. Zain

plans to launch LTE by end of 2014 Latest market entrant that intensified competition through offering lower rates. Umniah launched 3G in 2012 Orange Umniah Zain Friendi An MVNO, hosted by Zain. Friendi Focuses on non- Jordanian nationalities residing in Jordan

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Despite the growth in the Jordanian’s mobile market subscriptions, revenues have declined during 2012 and 2013

Source: Arab Advisors Group, TRC, Operators

987.2 975.5 916.6 7,483 8,922 10,229 200 400 600 800 1,000 1,200 1,400 2,000 4,000 6,000 8,000 10,000 2011 2012 2013 Jordan Mobile revenues (US$ millions) Jordan mobile subscriptions (000s)

Jordan’s mobile market subscriptions and revenues

36.8% 37.6% 39.2% 36.0% 35.5% 31.6% 27.2% 26.3% 28.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 Zain Orange Umniah Friendi

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Mobile subscription market share

The incumbent operator, Zain, is the cellular market leader with more than 4 million subscriptions

Source: TRC, Operators, Arab Advisors Group

48.2% 49.1% 51.8% 29.0% 28.2% 24.7% 22.8% 22.8% 23.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 Zain Orange Umniah

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Mobile revenue share

Zain’s mobile revenue share is larger than its subscription market share, due to having the highest ARPU among market players

Source: TRC, Operators, Arab Advisors Group

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Opportunities and Challenges for the mobile industry

Opportunities and Challenges Challenges Opportunities

• High population growth, which is key,

given the current mobile penetration rate.

• High percentage of youth among the

population, who are early adopters of emerging technologies and services.

• Emerging networks, namely LTE,

amidst the ongoing adoption of bandwidth demanding services.

• Emerging services with promising

growth, such as M2M, NFC, IPTV and Cloud based services, among others.

• Highest tax rate on mobile users in the

Arab region (43.8%).

• Intense competition and price wars

drove voice rates to low levels.

• Intense competition between mobile

broadband and fixed Wifi networks hinders mobile broadband growth. This is especially true in the context where mobile broadband is offered at higher rates, as operators have invested in 3G licenses and networks.

Private and confidential

Arab Advisors Group

Arab Advisors Group provides reliable research, analysis and forecasts of Arab communications, media, technology and financial markets. www.arabadvisors.com For a copy of the presentation, email arabadvisors@arabadvisors.com

@ArabAdvisors www.facebook.com/Arab.Advisors.Group www.youtube.com/ArabAdvisors

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