[November 26, 2018] |
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Mobile Operators across Middle East Set for Global 5G Leadership, According to New GSMA Reports
The Gulf Cooperation Council (GCC) Arab States1 are set to be
global leaders in the deployment of 5G networks, with all six markets
expected to launch 5G mobile services in the next two years, according
to two new reports released today at Mobile 360 Series - MENA. The
reports from GSMA
Intelligence - 'The
Mobile Economy: Middle East and North Africa 20182' and
'5G
in MENA: GCC operators set for global leadership' -
highlight that pioneering mobile operators in the GCC Arab States are
expected to launch 5G networks commercially from 2019, driving
innovative new services across the region and spurring future growth. By
2025, 5G will account for 16 per cent of total connections in these
markets.
"Backed by proactive government support, mobile operators, particularly
in the GCC Arab States, have been quick to establish the foundations for
global leadership in the deployment of 5G technology, moving rapidly
from trials to early commercialization," said John Giusti, Chief
Regulatory Officer, GSMA (News - Alert). "While we are encouraged by their progress to
date, it is imperative that the region's governments create a regulatory
environment that allows 5G to flourish, including releasing sufficient
spectrum, so that businesses and citizens can fully enjoy the innovative
new services that 5G will deliver, as well as the resulting
socio-economic benefits."
Policy Central to Realising 5G Digital Future
The reports encourage policymakers to establish spectrum roadmaps that
commit to releasing sufficient quantities of spectrum across all
frequency ranges to enable operators to meet coverage and capacity. They
further note that governments should implement taxation policies that
could improve affordability and boost digital inclusion, and adopt an
approach to licence renewals that enables operators to make long-term
investment decisions rather than maximising government revenue.
A Region of Rapid Subscriber Growth, Increased Smartphone Adoption
There are currently 381 million uniue mobile subscribers (Q2 2018)
across the MENA region, accounting for 64 per cent of the population.3
However, it is a diverse region in terms of market maturity,
encompassing the advanced GCC Arab States, where 77 per cent of the
population on average are mobile subscribers, alongside other North
African countries such as Comoros, Djibouti and Somalia, where
subscriber penetration is below 30 per cent.4 Between 2017
and 2025, the MENA region as a whole will see the fastest subscriber
growth rate of any region except Sub-Saharan Africa, growing to reach
459 million or 69 per cent of the population.
The number of smartphone connections across MENA stands at 332 million
as of Q2 2018, accounting for just over 50 per cent of total connections
in the region. This is expected to continue growing at an average annual
rate of 8 per cent to reach 587 million smartphone connections by 2025,
or just under three-quarters of total connections across the MENA
region. The UAE remains a global leader in terms of smartphone adoption,
second only to Singapore, with smartphones accounting for 85 per cent of
total connections. High mobile broadband usage and smartphone adoption
has also resulted in more people across the region using data services
such as IP messaging and using their mobile phones to watch online video.
Immersive Digital Entertainment Presents Revenue Opportunities in the
Early 5G Era
The reports highlight how operators will offer enhanced mobile broadband
services in early 5G deployments, while applications and services for
enterprises will be introduced later. There will be significant
opportunities for operators across new consumer-oriented services such
as immersive reality, eSports and enhanced in-venue digital
entertainment at stadiums and music venues, for example. Further, video
consumption on mobile devices will evolve to include newer augmented
reality and virtual reality applications that will make content even
more immersive and data intensive.
Mobile Contributing to Jobs and Economic Growth
In 2017, the mobile industry contributed approximately $165 billion to
the MENA region's economy, equivalent to 4 per cent of GDP. This
contribution is expected to increase to over $200 billion by 2022 as
countries in the region benefit from improvements in productivity and
efficiency brought about by increased take-up of mobile services. The
mobile ecosystem also supported more than 1 million jobs in 2017, which
includes workers directly employed in the ecosystem and jobs indirectly
supported by the economic activity generated by the sector. Further, the
mobile industry made a substantial contribution to the funding of the
public sector, with more than $17 billion raised in 2017 in the form of
general taxation.
To access the 'The Mobile Economy: Middle East and North Africa 2018'
report and related infographics please visit here: https://www.gsma.com/mobileeconomy/mena/.
To access the '5G in MENA: GCC operators set for global leadership'
report, please go here: https://www.gsmaintelligence.com/research/?file=41a57dc7d3baad611133be7deb481930&download.
-ENDS-
Notes to Editors
1. GCC Arab States: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE
2. The MENA region includes 25 countries (source: GSMA Intelligence):
Algeria, Bahrain, Comoros, Djibouti, Egypt, Iran, Iraq, Israel, Jordan,
Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar,
Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Turkey, United Arab
Emirates and Yemen. North Africa includes: Algeria, Egypt, Libya,
Mauritania, Morocco and Tunisia.
3. Unique mobile subscribers can account for multiple connections. Total
mobile connections (active SIM cards, excluding licensed cellular IoT)
in MENA stood at 634 million in 2017, forecast to rise to 791 million by
2025.
4. Other Arab States: Comoros, Djibouti, Iraq, Jordan, Lebanon,
Palestine, Somalia, Sudan, Syria and Yemen
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting
more than 750 operators with over 350 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and internet companies, as well as organisations in
adjacent industry sectors. The GSMA also produces the industry-leading
MWC events held annually in Barcelona, Los Angeles and Shanghai, as well
as the Mobile 360 Series of regional conferences.
For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter (News - Alert): @GSMA.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181125005028/en/
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