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Cambridge, MA, September 9, 2004 – Findings from the new Pyramid Research report, Middle East & North Africa Mobile Benchmarks, indicate that the mobile market is operating at only 40% of its penetration potential in the Middle East and North Africa (MENA). The MENA region has 115m addressable subscribers and only 45m are current subscribers. This large spread emphasizes the tremendous pent up demand and the profitability potential that will be awarded to the mobile operators best suited to tackle this regions needs.
Contributing factors to this greatly underserved market include lack of effective competition, high entry-barriers and operator’s preference for high margins. Due to the regions diversity, each country’s business environment must be examined individually. According to Middle East & North Africa Mobile Benchmarks, Morocco and Oman have similar penetration levels but where a 24% penetration in Morocco must be seen as a remarkable achievement, the same penetration level is arguably a failure in the Omani market given its relatively wealthy population. “Success in the region’s low-income markets often lies on offering low entry-barriers,” comments report author, Jonas Lindblad. “Maroc Telecom has effectively adopted a strategy that captures maximum subscribers with low entry costs and relatively high airtime fees.”
A Pyramid Research case study on Jordan and Iran analyzes the impact of competition and low entry barriers on mobile penetration. Iran and Jordan have similar GDP/capita – about $1,850 – yet Iran has a meager 4.2% mobile penetration compared to Jordan’s 25% penetration. With similar demographics, Jordan’s efficiently regulated and competitive market allows it to capture much of the addressable market and significantly outperform Iran.
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About the Report
“Middle East & North Africa Mobile Benchmarks” provides valuable comparison of MENA operator performance and country-specific operator business plans. Included are operator revenue and profitability forecasts, regional rankings and benchmarks, discussion of individual country potential, OPEX and CAPEX estimates and global benchmarks. To receive a free report excerpt, please write sales@pyr.com.
About Pyramid Research
Pyramid Research provides in-depth coverage and analysis of the Fixed and Mobile Communications, Internet, Media, Wi-Fi and Wi-Max, and Mobile CAPEX markets of 85 countries.
Combining an international perspective with local market insight and cutting-edge analysis, Pyramid Research gives clients a solid foundation for developing their global business plans. Market coverage includes Central and Eastern Europe, Western Europe, Africa and the Middle East, Asia-Pacific, Latin America and North America.
Contact:
Jonas Lindblad, Analyst, Africa & Middle East, jlindblad@pyr.com
Jared Jost, Marketing Associate, jjost@pyr.com
Pyramid Research
617-494-1515
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