The telecommunications sector in the Arab world … economic development and feverish competition



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The number of mobile network users around the world has grown over the past 20 years, a remarkable development, and at the level of Arab countries, Egypt and UAE originated from most of the countries in the region where these users are increasing dramatically and steadily at the same time, which means that the telecommunications sector in the Arab world It is witnessing developments of a special kind.

The number of mobile network subscribers, for example in Egypt, registered around 93.784 million subscribers, or 23.8% of the total number of subscribers in the Arab world, which stood at 392.247 million.

Whereas the UAE ranked first in the world for mobile broadband subscriptions, and first in the world for mobile phone network coverage, and second in the world for the percentage of mobile phone subscriptions; According to the results of the 2019 Tourism and Travel Report published by the World Economic Tourism and Travel Forum.

These Arab successes bear witness to the unwavering determination of these Arab countries to catch up with progress. Until recently, communications in these countries were made only via the high frequency network or via the international network of satellites of the international organization (Intelsat), most of which was done indirectly via Europe or America as it there was no communications connection between neighboring Arab countries. Or their number was limited.

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Communications and economic development sector

The telecommunications sector in the Arab world plays a central role in the economic and social development of developing countries. This is due to the fact that it lowers production costs through the provision of immediate and rapid information, not to mention the fact that it improves marketing operations and reduces the need for physical transportation, which has significant benefits. , in particular by reducing congestion of means of transport, in addition to its social effects. The other positive.

It can be noted that investing in this sector is a sure way to make profits. Because this communication and information technology has become an essential part of our daily life.

Although the income from the telecommunications sector is a basic resource for the economies of Arab countries, the emergence of a free communication service through various social media platforms has presented a new kind of challenge.

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Communications market in the Arab world

According to a survey conducted by the “Arab Advisors Group” on the cell phone market in the Arab world, Lebanon recorded the highest subscription charges in terms of postpaid cell connection charges among 15 Arab countries.

The post-use pay cellular network subscription fee rate in Lebanon was $ 55, which is lower than the fee rate in Saudi Arabia ($ 60.15) and Kuwait ($ 67.56), while it is well above the Arab average of $ 26.74, and the Arab average is $ 15.3.

The price of post-use cellular and paid internet services in Lebanon, according to the survey results, was $ 118.1, which is the highest in the Arab world, and was much higher than the Arab average. of $ 56.6 and average prices in the Arab world of $ 58.5. Lebanon falls under the “high cost” category, along with Libya, Jordan and Oman. The cellular service plan includes the number of minutes for voice calls and mobile Internet use.

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Mobile data traffic

The Cisco Visual Networking Index report has referred to global mobile data traffic for over a decade; It showed that mobile phone traffic represented less than 5% of total IP traffic in the world. At the same time, the report points out that data traffic has increased today and is heavily dependent on mobile networks.

The report points out that there has been a significant increase in the use of mobile phones by consumers and businesses around the world, which has boosted the wide reach, demand for mobile broadband services for communication devices. mobile, multimedia and a wide range of Internet of Things mobile applications.

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The telecommunications sector in the Arab world

Key Cisco Forecast for the Middle East and Africa

1- Significant increase in data traffic generated by mobile telephony and communications.

2- The number of mobile phone users in the Middle East and Africa region will be 1.0 billion (58% of the population of the Middle East and Africa) by 2022, compared to 798 million in 2017 .

3- The amount of data per user will reach 7,649MB per month by 2022, up from 777MB per month in 2016, recording a compound annual growth rate of 57%.

4- Data traffic generated by mobile phones by mobile phone (including low power wide area networks and M2M solutions) will reach 4061 MB per month by 2021, compared to 459 MB per month in 2016, recording a growth rate annual compound of 55%.

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Ways to attract customers

There are many telecom operators in the Arab world, which makes the competition between them frantic and makes these operators a continuous race to attract the greatest number of customers; Therefore, every telecommunications company introduces new features and services; So that you can retain your existing customers and attract new ones.

There are many ways and strategies for business. Among them are: free points, added value and reduced cost / tariff of calls.

The most recent of these attempts to attract customers has been Vodafone’s collaboration with Dell Technologies. With the aim of modernizing Vodafone’s capabilities to provide cloud computing services to businesses and government agencies, and to introduce new cloud computing services for the first time in Egypt.

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