Crown Prince donates SR1 billion to support housing for eligible families    Saudi, Iranian foreign ministers discuss Oman-mediated talks with US    Prince Sultan University launches first bachelor's program in language and media    Al-Falih: Eastern Province hosts 700 investment opportunities worth SR330 billion    India demolishes houses of 10 alleged militants days after deadly Kashmir attack    Yemen's Houthis claim dozens killed in US strike on prison holding African migrants    Putin announces three-day Russian ceasefire in Ukraine from 8 May    Suspect charged after Vancouver car ramming leaves 11 dead    Rock & Roll Hall of Fame picks Outkast but not Oasis    Makkah police arrest Yemeni and Egyptian suspects of fake Hajj campaign    stc reports strong first-quarter 2025 results with 11% rise in net profit    Saudi Awwal Bank records SR2.1 billion net profit after zakat and income tax for 1Q25    Virgin Atlantic celebrates one month of nonstop service between London and Riyadh    Al Ahli cruise past Buriram into AFC Champions League Elite semi-finals    Duran leads Al Nassr past Yokohama Marinos into AFC Champions League Elite semi-finals    Saudi orchestra to perform at Sydney Opera House in May    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Average life expectancy in Saudi Arabia rises to78.8 years    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



More investments seen in Saudi telecom sector
By Saudi Gazette Staff
Published in The Saudi Gazette on 31 - 07 - 2009

A recent study done by Frost & Sullivan on “Telecom Companies Capital Expenditure” for South Asia and Middle East market showed that the sector has shown resilience not only in the revenue generated by operators but also in its spending capacity.
The sector will see investments in developing markets like India, Sri Lanka, and Bangladesh as well as in mature markets like the UAE and Saudi Arabia.
Saudi Arabia is the largest country in the Middle East and also has the highest spending levels.
The entry of new operators has spurred spending in the market.
According to Frost & Sullivan, the total telecom spending in the Saudi market was $ 6,576.5 million in 2008 and is expected to decline with a negative CAGR of around 1.59 percent between 2008 and 2015 to $ 5,875.1 million. Broadband penetration is one of the lowest in the region; this segment will constitute a major portion of CAPEX of the operators in the next 3-4 years.
Girish Trivedi, deputy director, South Asia and Middle East, Frost & Sullivan, said “while fixed line services will have lesser investment, mobile services are anticipated to constitute major CAPEX in the South Asia and Middle East region. Technological advancements like 3G will continue to spur the spending pattern. Investments in Broadband and Carrier networks and multimedia and value-added services will gain significant traction in these regions.”
The telecom network in the UAE is one of the most technologically advanced in the world with 3.5G (HSDPA) and 3.75G (HSUPA) networks being deployed. The introduction of a second operator in the UAE has led to some rationalization in tariff levels and also increased spending levels in the market. The country has one of the highest GDP per capita in the world and hence despite penetration levels being around 160 percent, ARPU of the operators will continue to be high.
The total telecom spending in the UAE market was estimated by Frost & Sullivan at $ 1,263.8 million in 2008; is expected to decline with a negative CAGR of around 0.02 percent between 2008 and 2015 to reach $ 1,261.9 million.
The analysis from this Frost & Sullivan study found that the Indian market with its sheer size will continue to dominate the spending in the region. The total telecom spending in the Indian market was $21,553.1 million in 2008; this is anticipated to grow at a CAGR of 2.2 percent till 2015 to reach $25,128.9 million. The CAPEX will be driven by 3G operations that are expected to start in the next 1-2 years and the thrust on broadband and carrier services by incumbent larger operators.
The high competition amongst the Sri Lankan telecom companies market for a relatively small population of 20 million has impacted investments in the country.
The spending was led by two big operators while other operators struggle to survive. Frost & Sullivan estimates that the total telecom spending in the Sri Lankan market was around $589.4 million in 2008; this is expected to grow at a CAGR of around 0.08 percent between 2008 and 2015 to reach $592.68 million. The end of the civil war has opened up the northern and eastern parts of the country thereby driving the country's CAPEX levels.
The Bangladesh telecom market is plagued with taxation issues and the introduction of SIM tax has adversely affected growth in the sector. Most of the operators are partly owned by global telecom firms and hence spending capacity will be impacted in the next 1-2 years due to the current economic situation. In line with current trends, Frost & Sullivan estimates that the total telecom spending in the Bangladesh market was $ 1,744.9 million in 2008; is expected to grow at a CAGR of around 2.4 percent between 2008 and 2015 to reach $ 2,060.1 million. The growth in spending will be led by the foray into the untapped rural market. __


Clic here to read the story from its source.