Transcript Fourth Annual Market Review

UAE Telecommunications Sector
Developments & Indicators, 2009 – 2012
4th Annual Sector Review
July 2013
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Disclaimer
The TRA has compiled this report based on information received from industry, as well as from publicly reported information
from other sources.
Whilst this report and the information contained herein is, to the best knowledge of the TRA, free from error, the TRA does not
make any representations or warranties, either express or implied, as to the accuracy of the information.
Furthermore, the TRA is not liable for any inaccuracies, errors or omissions in the information contained in this document or
any harm that may be incurred in reliance thereon.
If a reader wishes to use any of the information contained in this report as the basis for any decision, whether or not related to
investment, the reader is obliged to determine the accuracy of the same.
Furthermore, the information is provided for educational purposes only and is not intended to be a recommendation to take any
particular course of action.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Table of Contents
Page
Introduction …………………………………………………………………………………..
4
Economic Summary …………………………………………………………………………
5
Industry Background …………………………………………………………………………
6
Summary of Telecommunications Indicators …………………………………………….
7
Sector Contribution to UAE Economy.……………………………………………………..
8
TRA Regulatory Policy and Procedures ……………………………………………………
9
UAE - Rankings ..........................................................................................................
14
Fixed Telephony Services ………………………...………………………………………..
15
Mobile Services ………………………………………………………………………….…..
18
International Voice Services …………………………………………………………….….
22
Internet Services …………………………………………………………………………….
24
Data Services ……………………………………………………………………………….
30
Annex 1: Abbreviations & Acronyms ……………..……………………………………….
31
Annex 2: Usage Indicators ……………..…………………………………………………..
32
Annex 3: Sources and Acknowledgments..………………………………………………..
33
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Introduction
This report is the fourth TRA Annual Sector Review. It summaries the state of the fixed, mobile, and data
telecommunications markets in the United Arab Emirates (UAE) in terms of subscribers, penetration rates,
revenues, and usage (i.e. traffic volumes) for the years 2009 – 2012. The report also outlines the contribution of the
telecommunications sector to the UAE economy.
The data contained in this report is published in aggregate form only and statistics for individual Licensees are not
provided. The TRA has taken this step to protect the commercially sensitive information of each Licensee while
recognising that for the purpose of transparency, sound regulatory practice, and to aid in the development of
competition a publication of this nature is warranted.
The TRA wishes to thank each of Emirates Telecommunications Corporation (Etisalat) and Emirates Integrated
Telecommunications Company PJSC (du) for their respective contributions to this report through the regular supply
of sector specific information and statistics to the TRA.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Economic Summary
High level metrics:
Indicator
2009
2010
2011
2012
Population(1)
5,066,000
5,378,460
5,883,653
8,209,459
GDP (billions) (2)
AED 941
AED 880
AED 959
AED 984
GDP Per Capita
AED171,107
AED 174,132
AED 244,707
AED 238,157
Source: Ministry of Economy, National Bureau of Statistics (NBS), TRA estimation,
International Monetary Fund (IMF)
(1) The 2009 to 2011 population estimates are based on a TRA assumption that the population was growing at an annual rate of 6%. The large population increase shown
is 2012 is based on an updated population figure reported by the National Bureau of Statistics (NBS).
(2) Estimated by the IMF.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Industry Background
The UAE telecommunications sector is currently served by two integrated telecommunications operators,
Emirates Telecommunications Corporation (Etisalat) and Emirates Integrated Telecommunications
Company PJSC (du). Competition in the UAE telecommunications sector started de facto in early 2007
when du, the second licensee, launched its mobile network services ending nearly 30 years of
telecommunications monopoly by Etisalat.
Today, the sector continues to be served by both Etisalat and du across multiple services as illustrated in
the table below:
Fixed
Mobile
Internet
Leased Lines
Other data
services
Etisalat





du





Licensee
Several other niche licences were granted by the TRA in 2010 and 2011, namely: Al Yah Satellite Services
Company PJSC (2010), Al-Yah Advanced (2010), Star Satellite Communications (2010), Al-Maisan
Satellite Communications (2011) and Media Zone Intaj FZ LLC(2011). The impact of providing these
licences on the market is yet to be seen and measured. Therefore, all the data given in this report relates
only to Etisalat and du, and the term “Licensee” refers only to either Etisalat or du only.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Summary of Main Telecommunications Indicators
The table below sets out a range of major indicators specific to the UAE telecommunications
sector for 2012.
Fixed Telephony
Service
Mobile Service
Internet Service
1,967,486
13,775,252
957,816
Revenues (Billions, AED)
2.6
20.4
3.8
Voice Minutes (Billions)
3.8
23.5
Not applicable (N/A)
ARPU(3) (Monthly, AED)
116
133
346
AMPU(4) (Monthly, Minutes)
169
153
N/A
Indicator
Subscribers
Source: 2012 Industry data
(3) Average
(3) Average
Revenue per User (ARPU) : Calculated by dividing the total revenues for a given period by the average number of subscribers during the same period.
Minutes per User (AMPU ): Calculated by dividing the total minutes for a given period by the average number of subscribers during the same period.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Sector Contribution to UAE Economy
Contribution of UAE Telecommunications
Sector to UAE GDP
• The UAE Telecommunications sector plays
an extremely important role in the economy.
In 2012, it contributed around 5% to UAE
GDP and employed 7,961 persons. 40% of
the sector’s employees were Emirati.
7,861
6,372
4.9%
12%
10,000
10%
8,000
8%
5.15%
5.0%
6%
4%
2,000
2%
0
0%
Investment
(7) Total
5.7%
4,000
2009
(6) Total
7,639
2010
2011
2010
5.7%
2011
5.15%
2012
5.0%
11,890
11,528
100%
10,798
7,961
6,000
60%
32%
33%
36%
40%
40%
4,000
20%
2,000
2012
Contribution to UAE GDP
investment represents Licensees’ cash flows used in investing activities.
telecommunications employees represents all employees from TRA,Etisalat and du
80%
Emiratization
6,000
14%
9,544
8,000
12,000
Employees
Investment, AED, Millions
10,000
4.9%
Telecommunications Industry Employees (7)
Total Investment (6) (AED, millions)
12,000
2009
0
0%
2009
2010
Employees
2011
2012
Emiratization (%)
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
TRA Regulatory Policy and Procedures - Consultations
During 2011 and 2012, the TRA conducted the following consultations all of which were published on the TRA’s website.
•
Public Consultation on Competition Assessment and Proposed Remedies in Relevant Markets.
•
Public Consultation on the definition of Relevant Markets for the Purpose of Ex Ante Market Reviews.
•
Public Consultation on Market Definition and Competition Assessment Guidelines.
•
Public Consultation on Remedies for ex-Ante Regulation of the UAE Telecommunications Sector.
•
Consultation Concerning Amendments to an Existing Regulatory Instrument: Cost Accounting, Accounting Separation and LRIC Modeling.
•
Consultation Procedures.
•
Public Consultation on “Building the Digital Society”-National ICT Policy 2013-2016.
•
Public Consultation on Dispute Resolution Procedures.
•
Public Consultation on Space Telecommunications Policy Outline.
•
Public Consultation on TRA Spectrum Band Plan.
•
Amendment to the Public Telecommunications Licenses issued to Etisalat and du.
•
Public Consultation on the Adoption of Green ICT Best practices in the UAE.
•
Public Consultation on Spectrum Regulatory Instruments.
•
Public Consultation regarding Draft Mobile Telecommunications Apparatus Anti Theft Instructions.
•
Public Consultation on Draft Regulatory Instrument - Consumer Protection Regulations.
•
Stakeholder Initiated Consultation regarding Electronic Communications, Mobile Spam Policy and Privacy of Consumer Information Policy.
•
Regulatory Instruments (Second Batch)
•
Spectrum Allocation and Assignment v1.0
•
o
Cellular Systems Coverage Measurement v1.0
o
Use of 2.4 GHZ and 5.8 GHZ bands for WLAN and RLAN v1.0
o
Short Range Devices v1.0
The TRA also conducted a number of closed consultations in accordance with its procedures.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
TRA Regulatory Policy and Procedures - Regulatory Instruments Issued or Amended
During 2011 and 2012, the TRA issued or amended the following regulatory instruments:
•
Determination: Competition Assessment of Relevant Markets-29 March 2012.
•
Directive No. (3) 2012: Database Electronic Query Service Amendment to the Interconnection.
•
Directive No. (1) of 2012 Incorporation of Carrier Pre-Selection Charges into the Interconnection Agreement.
•
Interconnection Pricing Policy, V.1.5,15 December 2012.
•
Determination No (1) of 2011 - Relevant Markets for Telecommunication Services and Related Products in the UAE.
•
Update on TRA Determination No 3 of 2010 - Mobile Site Sharing Charges.
•
Directive No (3) of 2011 - Twice Annual Audit of Billing Systems.
•
Determination No (2) of 2011 - Carrier Pre-Selection Charges.
•
Cost Accounting, Accounting Separation and LRIC Modeling Instructions V 3.1.
•
A number of Determinations specifically related to the on-going project to secure competition in fixed-line services through bitstream access
and network sharing.
•
National Emergency Plan for the Telecom Sector (NEP-T).
•
Regulatory Policy on Non-Ionizing Radiation Limits for Telecommunications Networks.
•
Regulatory Policy regarding VoIP.
•
Regulatory Policy regarding Unsolicited Electronic Communications.
•
Regulations of Mobile Telecommunications Apparatus – International Mobile Equipment Identity Numbers (2011).
•
Directives No (6) & (7) of 2011 – Duplicate International Mobile Equipment Identity (IMEI).
•
Regulatory Policy regarding Registration Requirements for Mobile Consumers (2011).
•
.emarat Arabic Domain Name Policy V 1.0.
•
.emarat Launch Policy V 1.0.
•
13 policies related to .ae Domain Administration (amendment). Instructions on Mobile Telecommunications Apparatus Anti Theft V1.0 in
2012.
•
Directives No (4) & (5) of 2012 – Location Based Services.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
TRA Regulatory Policy and Procedures - Price Control and Consumer Complaints
•
The TRA is required to assess all requests from UAE Licensees to change retail prices. In 2012, the TRA
received 285 price approval requests (PCRs) of which 95% were approved.
•
In 2012, the TRA handled 1493 complaints from business and residential consumers concerning issues
with Licensees. The increase in the number of complaints may be a result of increased consumer
awareness regarding the services provided by the TRA to consumers.
Consumer Complaints
PCRs (Price Control Requests)
450
1400
410
Number of PCRs
400
350
300
1493
451
285
272
250
200
150
100
Number of Complaints
500
1600
1200
1000
980
800
600
400
200
50
0
Total
2011
Approved
0
2011
2012
2012
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
TRA Regulatory Policy and Procedures - Spectrum Applications
•
The TRA manages the Frequency Spectrum in the UAE. The chart below shows the number of allocation
applications processed by the TRA during the period from 2010 to 2012.
Spectrum Allocations Processed
9,000
8,156
Number of Allocations
8,000
7,000
6,000
5,568
5,000
4,091
4,000
2,999
3,000
2,780
2,495
1,784
2,000
1,000
472
638
653
934
769
0
New Applications
Application renewals
2010
2011
Application Modification
Cancellations
2012
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
TRA Regulatory Policy and Procedures – Spectrum Interference Complaints Resolved
and Support to Broadcasting and Production Activities
Solved & closed Spectrum Interference Complaints
50
41
40
32
30
20
10
0
2011
Number of Frequency Assignments to Support Broadcasting and
Production Activities
600
Frequncy Assignments
2012
551
500
407
400
300
2011
200
2012
102
100
12
5
32
99
27
0
FM Radio
Earth Station & DSNG
Wireless Camera
Wireless Mic
Wireless Services to Support Broadcasting and Production Activities
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
UAE Rankings in Various International Studies (2012-2013)
• The UAE ranked 2nd of all the Arab states in the 2012-2013 Networked Readiness
Index (NRI) study issued by the World Economic Forum, and 25th among all 144
countries assessed.
• The UAE ranked overall 45th in the world in the ICT Development Index (IDI) in 2012.
This was the 3rd highest ranking among all the GCC and Arab states.
•
The UAE ranked 2nd of all the GCC and Arab states in the IDI ICT Usage subindex. Key findings include the following:
-
The UAE ranked 2nd in the world in the fixed telephony sub-basket
The UAE ranked 5th in the world for the mobile cellular sub-basket
The UAE ranked 6th in the world in the ICT Price Basket
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Fixed Telephony – Number of Fixed Lines
•
The fall in the fixed line penetration level shown in the chart below between 2011 and 2012 was due to
a change in the way the population was estimated.
The significant increase in the number of fixed line subscribers from 2011 was largely due to the
inclusion of fixed lines bundled with broadband in some instances TV. These bundled fixed lines were
not reported to the TRA in 2010 and were therefore not counted in earlier statistics.
The fixed line penetration rate as of December 2012 was 24%.
•
•
Number of Fixed Lines (‘000s)
1,967
2,000
1,825
1,561
1,500
1,461
30%
60%
1200
50%
1000
40%
31%
26.4%
24%
30%
1,000
20%
500
10%
0
0%
2009
2010
Fixed Lines
2011
2012
Penetration Rate
Fixed Lines, thousands
Fixed Lines, thousands
2,500
Business vs Residential Fixed Lines (‘000s)
1100
972
794
800
822
767
839
856
639
600
400
200
0
2009
2010
Number of residential fixed lines
2011
2012
Number of business fixed lines
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Fixed Telephony – Revenues
Total Fixed Telephony Revenues
(AED, millions)
(8)
Breakdown of Fixed Telephony Revenues (AED, millions)
2,000
1,612
Revenue, millions
• Fixed telephony revenues declined by 8%
between 2011 and 2012, international
voice revenues fell by 10%, and domestic
voice revenues fell by 9%.
• International voice revenues per line in
2012 were around half what they were in
2009.
1,500
1,137
1,033
926
831
500
0
2009
2010
Domestic Voice Revenue
3,827
2011
2012
International Voice Revenue
3,223
3,500
Monthly Fixed Line ARPU, AED
2,898
3,000
250
2,667
203
2,500
177
200
ARPU, AED
Millions, AED
1,146 1,190
1,000
4,500
4,000
1,276
2,000
1,500
1,000
138
150
116
100
50
500
0
0
2009
(8) Total
2010
2011
2012
2009
2010
2011
2012
fixed revenues include fixed telephony, calls from Payphone and calls to directory enquiry. It does not include revenue generated from the monthly charges from
Double Play and Triple Play subscriptions.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Fixed Telephony – Usage
• Calls to mobile phones represented 65%
of total voice minutes from fixed lines in
2012.
Minutes, Millions
• Total fixed telephony minutes decreased
by 7% between 2011 and 2012.
Breakdown of Total Annual Voice
Minutes (Billions)
3,247
3,500
2,784
3,000
2,720
2,504
2,500
2,000
1,500
781
1,000
570 496
544
599
466
596
490 369 578
450
343
500
0
2009
5,142
5,000
300
4,176
273
3,875
4,000
2012
3,000
2,000
1,000
Monthly Fixed Line AMPU (9)
Minutes
239
250
AMPU, Minutes
Minutes, Millions
4,344
2011
Domestic Minutes long distance - Fixed to Fixed
Domestic Minutes - Fixed to Mobile
International minutes
Local Call minutes (9)
Total Annual Voice Minutes
(millions)
6,000
2010
198
200
169
150
100
50
0
2009
0
2009
(9) In
2010
2011
2010
2011
2012
2012
the 2nd Annual Review, the TRA used subscriptions as at the end of December to calculate average revenues and usage. In this report, the TRA has used average
subscriptions over the calendar year.
(10)Local Calls are defined as any call from a fixed line using a single switching center, i.e. the a call both originates and terminates within a local calling area.
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Mobile Services – Active Subscriptions
•
In 2012, the reported mobile penetration rate fell to 168%. However, this fall was due to the change
in the way the population of the UAE was estimated.
•
The number of active mobile subscriptions increased by 17.5% between 2011 and 2012.
•
In 2012, postpaid subscriptions accounted for 12% of total mobile subscriptions.
Active Mobile Subscriptions (10)
(‘000s)
199%
168%
12,000
150%
8,000
120%
10,672
10,926
11,727
13,775
90%
4,000
60%
2,000
30%
-
0%
2009
2010
Total subscriptions
2011
2012
Penetration Rate
91%
89%
88%
88%
90%
180%
10,000
6,000
100%
210%
Percentage of subscriptions
197%
Penetration
Subscriptions, Thousands
14,000
204%
Breakdown of Prepaid vs. Postpaid
Subscriptions (11)
80%
70%
60%
50%
40%
30%
20%
10%
11%
9%
12%
0%
2009
2010
Prepaid
2011
2012
Postpaid
(10) ‘Active’ is defined as any subscriber who has made or received a voice or video call in the preceding 90 days, or has sent an SMS or MMS during that period.
(11) Prepaid figures include subscribers on visitor SIM packages.
12%
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UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Mobile Services – Revenue
• Revenues generated from mobile services
increased by 2.6% in 2012. The majority of the
revenue increase came from postpaid service which
increased 12.5% from the previous year.
• The relative difference in the revenues generated
from prepaid and postpaid is decreasing overtime.
• The small decrease in prepaid revenues in 2012
was offset by a considerable increase in postpaid
revenues.
Breakdown of Total Revenue (12)
(AED, millions)
14,000
12,737
12,337
12,339
12,015
12,000
10,000
7,634
6,787
8,000
6,000
5,066
4,364
4,000
2,000
-
2009
Total Mobile Revenues
(AED millions)
24,000
22,000
20,000
18,000
19,932
17,787
2010
Prepaid Revenue
2011
2012
Postpaid Revenue
20,447
18,400
Mobile Monthly ARPU
190
170
14,000
150
150
12,000
ARPU, AED
Millions, AED
16,000
10,000
8,000
6,000
4,000
148
133
130
110
90
70
2,000
50
0
2009
2009
(12)
143
2010
2011
2010
2011
2012
2,012
Excluding Blackberry revenue, as that level of the revenue segregation is not available
19
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Mobile Services – Usage (Minutes)
•
•
Total annual mobile originated call
minutes increased by 5.6% between
2011 and 2012.
International call minutes decreased by
3.6% between 2011 and 2012.
The average minutes of usage of a
postpaid subscribers is more than
double that of a prepaid subscribers.
Breakdown of Total Annual Voice Minutes (millions)
Voice Minutes, Millions
•
20,000
15,000
10,000
4,232
3,819
5,000
963
156 939
5155
5352
151 987
158 928
139
0
2009
24,500
17,261
15,862
15,846
15,460
Total Annual Voice Minutes
(millions)
2010
2011
2012
Mobile to Fixed
Mobile to Mobile
International minutes
Outbound roaming
23,543
Mobile Average Minutes Per User (AMPU)
22,293
22,500
21,200
21,500
20,500
500
AMPU, Monthly
Minutes, Millions
23,500
20,426
19,500
410
362
400
334
309
300
200
172
147
164
142
165
153
142
130
100
-
18,500
2009
2010
2011
2012
2009
Total
2010
Prepaid
2011
2012
Postpaid
20
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Mobile Services – Usage (SMS & MMS)
Total Number of SMS (13)
4,000
• The total number of MMS messages sent
decreased by 15% between 2011 and
2012.
3,578
3,500
SMS, Millions
• The total number of SMS messages sent
decreased by 24% between 2009 and
2012, and 6% between 2011 to 2012 alone.
3,254
2,900
3,000
2,723
2,500
2,000
1,500
1,000
500
0
2009
% Growth
2009-2010
% Growth
2010-2011
-6%
MMS
-25%
-19%
-15%
84
80
MMS , Millions
-11%
2012
100
90
-9%
2011
Total Number of MMS
% Growth
2011-2012
SMS
2010
70
63
60
51
50
43
40
30
20
10
0
2009
(13)
SMS includes domestic SMS, international SMS and SMSs sent by outbound roamers.
2010
2011
2012
21
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
International Voice Services
5,842
6,000
4,831
4,601
5,000
5,352 5,605
4,232
3,000
2,000
10,000
5,155
3,819
4,000
Breakdown of International Revenues
(AED Millions)
781
599
1,000
490
450
Millions, AED
Minutes, Millions
Breakdown of International Outgoing Traffic
(Millions, Minutes)
9,373
8,915
7,725
7,760
8,000
8,489
7,563
8,153
7,322
6,000
4,000
1,612
2,000
1,190
926
831
-
2009
2010
Total International Minutes
2011
2009
2012
Total International Revenues
Minutes from Mobile
2011
2012
Revenues from Mobile
Revenues from Fixed
Minutes from Fixed
International
outgoing Minutes
2010
% growth
2009- 2010
% growth
2010- 2011
% growth
2011- 2012
From Fixed
-23%
-18%
-8%
From Mobile
11%
26%
-3.6%
International
Revenues
% growth
2009- 2010
% growth
2010- 2011
% growth
2011- 2012
From Fixed
-26%
-22%
-10%
From Mobile
-0.5%
-2%
-3%
• 2012 recorded the first decline in international outgoing Minutes originating from mobile phones.
• Revenues generated from international calls has progressively decreased over the last 3 years
22
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
International Voice Services - 2012
International Call Minutes (Fixed + Mobile ) by destination (top 8 countries) (14)
international traffic, Millions
1,200
1,115
1,000
851
800
600
399
333
400
357
350
349
215
200
97
17
203
47
137
89
0
India
Pakistan
Philippines
Bangladesh
International Outgoing Traffic
Egypt
Saudi Arabia
Syria
Oman
International Incoming Traffic
• Calls to India, Pakistan, the Philippines and Bangladesh represented 51% of total outgoing international
traffic in 2012.
(14)
Top 8 countries refer to most popular destinations of outgoing calls.
23
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Internet - All Subscribers
• The large decline in the number of internet subscribers in 2012 was due to changes in the methodology for
recording dial-up subscribers. As from 2012, the TRA began reporting only the number of ‘active’ dial-up accounts
rather than the total number of dial-up accounts. ’Active’ accounts refer to those that have been used in the
previous 90 days.
• As of December 2012, there were 957,816 Internet subscribers in the UAE.
• The percentage of internet subscriptions by fibre technology increased by 37.2% between December 2011 and
December 2012.
Total Internet Subscribers in Millions
Internet Subscription by
Technology (thousands)
(15)
1.20
1.375
67.3%
60%
62.0%
56.4%
1.00
0.80
75%
1.327
18.5%
24.8%
0.958
29.2%
22.6%
45%
30%
0.60
11.7%
0.40
15%
0%
0.20
2009
2010
2011
2012
Internet Subscribers, thousands
1.404
1.40
Penetration
Internet Subscribers, millions
1.60
1,309
1,400
1,074
1,200
1,000
827
679
800
495
600
289
400
200
18
78
11
6
4
2009
Wi-Max , Cable
Total Subscribers
272
2010
2011
Fiber
2012
Copper
Penetration Rate
Internet user penetration rate
(15)
The Internet User Penetration rate was calculated using the ITU methodology which assumes there are 2.5 Internet users per Internet subscription.
24
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Internet - Broadband Subscribers
• The total number of broadband subscribers increased by 9.3% between 2011 and 2012.
• The penetration level of broadband was 11.6% as at December 2012.
Broadband Subscribers
1,000,000
800,000
790,082
(17)
65%
954,988
873,395
55%
45%
690,424
35%
600,000
35.6%
33.1%
37.1%
200,000
25%
29.1%
400,000
15%
13.2%
14.3%
14.8%
2009
2010
2011
Penetration
Broadband Subscribers
1,200,000
5%
11.6%
0
-5%
Broadband subscribers
Broadband Penetration Rate
2012
Broadband User Penetration Rate
Broadband Subscription shares by Package, 2012 (18)
In 2012
In 2011
Stand alone
17%
Stand alone
Double Play
49%
Triple Play
31%
34%
Double Play
Triple Play
34%
35%
(17) The Broadband User Penetration rate is calculated using the ITU methodology which assumes that there are 2.5 Internet users per Internet subscription.
(18) Stand alone includes copper, WiMax and Fibre connections. Double Play subscriptions refer to bundled landline and broadband packages while Triple
Play subscriptions refer to bundled landline, broadband and TV packages. The TRA began the collection of these statistics in 2011.
25
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Residential and Business Internet Subscribers
847
Residential Subscribers, Thousands
900
772
800
700
698
637 620
600
497
500
366
400
300
200
100
2
2009
2010
2011
Business Internet Subscribers, (‘000s)
Business Subscribers, Thousand
Residential Internet Subscribers, (‘000s)
102
100
90
80
70
60
50
40
30
20
10
-
87
77
108
88
71
0.5
2009
2012
92
2010
2011
2012
Business dialup subscribers
Residential dialup subscribers
Residential broadband subscribers
Subscriber growth
2011 - 2012
Subscriber growth
2009 - 2010
Subscriber growth
2010 - 2011
Residential dial-up
-22%
-26%
-99%
Business dial-up
14%
1.1%
-99%
Residential broadband
13%
11%
10%
Business broadband
30%
11%
6%
Service
26
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Residential Broadband Subscribers
The Distribution of Residential and Business Broadband Subscribers
Distribution of Residential Broadband Subscribers by Internet Speed 2009 - 2012
58%
47%
45%
37%
35%
30%
26%
30%
25%
20%
19%
18%
17%
14%
12%
15%
9%
3%
5%
3%
1%
0%
2%
2%
0%
11%
2%
0% 1%
0%
2%
0%
2009
2010
256 Kbps
512 Kbps
2011
1 Mbps
2 Mbps
2012
3Mbps
4 Mbps
Above 4 Mbps
Business Broadband Subscribers
Distribution of Business Broadband Subscribers by Internet Speed 2009 - 2012
51%
50%
43%
40%
32%
31%
27%
25%
30%
14%
8%
9%
5%
10%
0%
21%
19%
17% 15%
20%
14%
15%
13%
10%
1%
11%
8%
0%
3%
8%
1%
2%
0%
0%
2009
256 Kbps
2010
512 Kbps
1 Mbps
2011
2 Mbps
3Mbps
2012
4 Mbps
Above 4 Mbps
27
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Internet Services – Revenue
• Internet revenues increased by 15.2% in 2012.
Total Internet Revenues (AED, millions)
3,827
4,000
3,600
3,322
Revenue, AED
3,200
2,800
2,532
2,733
2,400
2,000
1,600
1,200
800
400
2009
2010
2011
2012
28
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Internet Services – ARPU Broadband
• Internet ARPUs have increased over time. This appears to be attributable to subscribers moving to
higher speed broadband packages.
• Business broadband monthly ARPU is significantly higher than that of residential subscriptions.
Broadband Monthly ARPU, AED
1169
1200
1001
917
Broadband ARPU, AED
1000
919
800
600
400
328
299
331
346
237
222
252
261
200
0
Overall Broadband
2009
Residential Broadband
2010
2011
Business Broadband
2012
29
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Data Services – Leased Lines
• The number of leased line subscribers increased by 9.8% in 2012 compared to the previous year.
• Leased line revenues increased by 4.6%.
Total Leased Line Subscribers
Total Revenue (AED millions)
1,198
49,161
50,000
1,200
1,128
1,145
2010
2011
44,739
879
Revenue in millions
Number of Subscribers
1,000
38,271
40,000
30,000
20,000
17,485
10,000
800
600
400
200
0
0
2009
2010
2011
2012
2009
2012
30
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Annex 1
Abbreviations & Acronyms
UAE
United Arab Emirates
TRA
Telecommunications Regulatory Authority
ITU
International Telecommunication Union
IMF
International Monetary Fund
AED
United Arab Emirates Dirham
GDP
Gross Domestic Product
ARPU
Average Revenue Per User
AMPU
Average Minutes Per User
SMS
Short Message Service
MMS
Multimedia Message Service
FTTH
Fibre To The Home
ISDN
Integrated Services Digital Network
ADSL
Asymmetric Digital Subscriber Line
Kbps
Kilobits Per Second
Mbps
Megabits Per Second
PCR
Price Control Request
31
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Annex 2
Usage Indicators
Fixed Lines Indicators for the year 2012
Average duration of domestic calls from fixed lines
1.94 min
Average revenue of domestic calls from fixed lines
AED 0.34 /min
Average international calls duration from fixed lines
4.74 min
Average revenue from International call from fixed lines
AED1.85/min
Average number of international call minutes per fixed line
19.66 min/month
Mobile Indicators for the year 2012
Average duration of mobile domestic voice calls
1.64 min
Average revenue per mobile domestic calls
AED 0.32 /min
Average international call duration
3.15 min
Average revenue from International calls
AED 1.42 /min
Average international minutes per subscriber
33.52 min/month
Average national SMSs per subscriber
13 SMS/month
Average international SMSs per subscriber
4.33 SMS/month
32
UAE Telecommunications Sector Developments & Indicators (2009-2012), issued July 2013
Annex 3
Sources and Acknowledgments
Ministry of Economy (MoE)
http://www.economy.gov.ae
International Monetary Fund (IMF)
www.imf.org/
International Telecommunication Union (ITU)
www.itu.int/
Industry statistics 2009 – 2012
Provided to the TRA by du and Etisalat on
a monthly basis.
TRA Mobile Networks Benchmarking studies
www.tra.gov.ae
33