Transcript Third Annual Market Review

UAE Telecommunications Sector
Developments & Indicators, 2008 – 2011
3rd Annual Sector Review
May 2012
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Disclaimer
The TRA has compiled this report based on information received from industry, as well as from publicly reported information
from other sources.
While 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 (2008-2011), issued May 2012
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 ..........................................................................................................
15
Fixed Telephony Services ………………………...………………………………………..
16
Mobile Services ………………………………………………………………………….…..
21
International Voice Services …………………………………………………………….….
29
Internet Services …………………………………………………………………………….
31
Data Services ……………………………………………………………………………….
40
Annex1 : Abbreviations & Acronyms ……………..……………………………………….
41
Annex2 : Usage Indicators ……………..…………………………………………………..
42
Annex3 : Sources and Acknowledgments..………………………………………………..
43
Annex4 : Additional Charts from 2007-2010Review ……………………………………..
44
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Introduction
This report is the third TRA Annual Sector Review. It summaries the state of the fixed, mobile, and data
telecommunications services in the United Arab Emirates (UAE) in terms of subscribers, penetration, revenues
usage (traffic volumes) and Quality of Service for the years 2008 – 2011. 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
listed. 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 (2008-2011), issued May 2012
Economic Summary
The table below provides some high level metrics for the UAE economy:
Indicator
Population
Number of Households
Population Growth
(estimated rate(1))
GDP (billions)
GDP Per Capita
2008
2009
2010
2011
4,765,000
5,066,000
5,378,460
5,883,653
707,150
747,817
790,822
836,300
6%
6%
6%
6%
AED 934
AED 941 (2)
AED 880 (2)
AED 959(2)
AED 196,512
AED 171,107
(2)
AED 174,132
(2)
AED 244,707(2)
Source: Ministry of Economy, TRA estimation ,IMF
(1)
The TRA has calculated the 6% population growth rate based on the Ministry of Economy and National Bureau of Statistics historical publications
Estimated by IMF
1 US$= 3.6729011132 as of December 31,2011 XE - Universal Currency Converter
(2)
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
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 licenses where granted by the TRA in 2010 and 2011, these are 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 licenses on the market is yet to be seen and measured. Therefore all the data given in this report
relates only to Etisalat and du, hence the term “licensee” in this report refers to either Etisalat or du.
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Summary of Main Telecommunications Indicators
The table below sets out a range of main indicators specific to the UAE telecommunications
sector for 2011:
Fixed Telephony
Service
Mobile Service
Internet Service
1,825,496
11,727,401
1,324,059
Revenues(Billions, AED)
2.8
19.9
3.3
Voice Minutes (Billions)
4.1
24.3
Not applicable (N/A)
ARPU (3) (Monthly, AED)
138
148
206
AMPU (4) (Monthly, Minutes)
198
181
N/A
Indicator
Subscribers
Source: 2011 Industry data,
(3) ARPU
(4) AMPU
: Calculated by dividing the total revenues for a given period by the average number of subscribers during such period
: Calculated by dividing the total minutes for a given period by the average number of subscribers during such period
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Sector Contribution to UAE Economy
Telecommunications Industry Employees
20,000
10,000
34%
11,890
11,528
32%
33%
10,798
36%
5,000
60%
40%
20%
0
Emiratization
80%
11,759
Contribution of UAE
Telecommunications Sector to UAE
GDP
2008
100%
15,000
Employees
• The UAE Telecommunications Sector plays
an extremely important role in the economy.
It contributed nearly 4.9 % to UAE GDP and
employed 10,798 persons in 2011.
0%
2008
2009
Employees
2010
2011
Emiratization (%)
4.4%
4.9%
2010
5.3%
2011
4.9%
12,000
8,248
6,000
4.4%
12%
7,861
8,000
4,000
14%
9,544
10,000
4.9%
5.3%
10%
5,933
8%
4.9%
6%
4%
2,000
2%
0
0%
2008
Investment
(1)
Total investment represents Licensees’ cash flows used in investing activities.
2009
2010
2011
Contribution to UAE GDP
8
Contribution to GDP
2009
Investment, AED, Millions
Total Investment (5) (AED, millions)
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
TRA Regulatory Policy and Procedures - Consultations
In years 2010 and 2011, the TRA conducted the following consultations:
•
Public Consultation on Consultation Procedures
•
Public Consultation on Consolidated Consumer Protection Regulation
•
Public Consultation on specific matters concerning two of the TRA’s Regulatory Policies: Electronic
Communications & Mobile Spam Policy (EC&MS Policy); and Privacy of Consumer Information Policy (PCI
Policy).
•
Public consultation on re-planning of 1800 MHz band for LTE
•
Public consultation on the allocation of 2600 MHz band for LTE
•
Consultation with Broadcasting operators regarding the introduction of digital audio broadcasting services.
•
Public Consultation on the Adoption of Green ICT best practices in the UAE
•
Consultation about the Regulatory "Registration Requirements for Mobile Consumers" (two consultations
rounds one 2010 and the other in 2011)
•
Consultation about “Voice over Internet Protocol Regulatory Policy”
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
TRA Regulatory Policy and Procedures - Regulatory Instruments issued or amended
In years 2010 and 2011, the TRA issued or amended the following regulatory instruments:
•
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
•
Directive No (5) of 2010 – Business Continuity
•
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)
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
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 2011 the TRA
received 451 price approval requests (PCRs) of which 90% where approved.
•
In 2011 the TRA handled 980 complaints from business and residential consumers concerning
Licensees. The increase in the number of complaints is a result of increased consumer awareness about
the services provided by TRA to consumers.
PCRs (Price Control Request)
Consumer Complaints
1200
512
Number of PCRs
451
430
500
410
400
300
200
Number of Complaints
600
980
1000
800
600
563
400
200
100
0
0
Total PCRs
Approved
2010
2010
2011
2011
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
TRA Regulatory Policy and Procedures - Spectrum Applications
The TRA is responsible for managing the radio spectrum in the UAE.
Spectrum Allocations Processed
8,156
9,000
8,000
7,000
Number of Allocations
•
5,568
6,000
5,000
4,000
4,091
2,999
3,000
1,783
2,000
472
1,000
638
934
New Applications
Allocation Renewals
2010
Allocation
Modifications
Cancellations
2011
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
TRA Regulatory Policy and Procedures - Public Lands Application Requests
Public Lands Number of Application Received and processed
932
1000
900
630
800
700
600
500
400
300
200
100
0
2010
2011
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
TRA Regulatory Policy and Procedures - Numbering Applications
Numbering Request & Application
2909
3000
2500
1651
2000
1500
173
1000
136
500
0
Number of Request Numbering Resources
Blocks
2010
Number of Application
2011
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
UAE - Rankings (2010-2011)
•
The UAE ranked 1st of all Arab states in the 2010-2011 Networked Readiness Index (NRI)
study issued by the World Economic Forum, and 24th among all 138 countries assessed
•
The UAE ranked overall 32nd in the world in the 2010 ICT Development Index (IDI). This
was the highest of all GCC and Arab states in the index.
•
The UAE ranked the highest of all GCC and Arab states in the IDI ICT Usage sub-index.
Key findings include the following:
-The UAE ranked 2nd in the world in the fixed telephony sub-basket (1)
-The UAE ranked 2nd in the world for the mobile telephony sub-basket (2)
-The UAE ranked 5th in the world in the ICT Price Basket (3)
(1) This measures the 2010 prices of fixed telephony as a percentage of GNI per capita
(2) This measures the 2010 prices of mobile telephony as a percentage of GNI per capita
(3) The ICT Price Basket measures the sum of the 2010 prices of fixed telephony, mobile telephony and fixed broadband Internet as
a percentage of a country’s monthly Gross National Income (GNI) per capita. The lower the price as a percentage of GNI per capita,
the better the ranking
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Fixed Telephony – Number of Fixed Lines
•
The significant increase in the number of fixed line subscribers is largely due to the inclusion of
double play and triple play subscribers which were not reported in 2010.
•
The number of residential lines between 2010 – 2011 increased by 52% and number of business lines
by 2% .
•
Fixed line penetration rate as of end of 2011 is 31%.
Number of Fixed Lines (6)
(1000s)
1,900
1,825
1,455
1,300
30%
1,461
40%
30%
31%
26.4%
30%
1,100
20%
900
10%
700
500
0%
2008
2009
Fixed Lines
2010
2011
Fixed Lines, 1000s
50%
1,561
1,500
972
60%
Penetration
1,700
Fixed Lines, 1000s
Business Vs Residential Fixed Lines(1000s)
1000
900
800
700
600
500
400
300
200
100
0
860
794
839
639
594
2008
2009
2010
2011
Penetration Rate
Number of residential fixed lines
(6)
822
767
Fixed lines include ISDN fixed lines ,double and triple play internet subscribers of du and Etisalat
Number of business fixed lines
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Fixed Telephony – Revenues
Total Fixed Telephony Revenues (7)
(AED, millions)
2,000
Revenue, millions
• Fixed telephony revenues declined by
10% between 2010 and 2011, the majority
of the decline comes from a decline in
international voice revenue which fell by
28% compared to the previous year.
Breakdown of Fixed Telephony Revenues
(AED, millions)
1,500
1,612
1,162 1,198
1,276
1,146 1,190
1,137
926
1,000
500
0
2008
3,827
Domestic Voice Revenue
4,000
2,898
2011
International Voice Revenue
Monthly Fixed Line ARPU, AED
3,000
250
2,500
200
2,000
1,500
1,000
203
177
179
138
150
100
50
500
0
0
2008
(7) Total
2010
3,223
3,173
ARPU, AED
Millions, AED
3,500
2009
2009
2010
2011
2008
2009
2010
fixed revenues include fixed telephony, calls from Payphone and calls to directory enquiry(does not include revenue generated from
Double Play & Triple Play Subscriptions)
2011
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Fixed Telephony – Usage
Breakdown of Total Annual Voice
Minutes (millions)
• Calls to mobile represented 65% of total
voice minutes from fixed lines in 2011.
Minutes, Millions
• Total fixed telephony minutes decreased
by 3.8% between 2010 and 2011
4,000
3,247
3,007
2,784
3,000
2,720
2,000
1,000
515
572
781
393 544
570 496
599 466 596
490 369
0
2008
Total Annual Voice Minutes
(millions)
2009
2010
2011
Domestic Minutes - Fixed to Fixed
Domestic Minutes - Fixed to Mobile
International minutes
Local minutes
5,142
4,487
4,344
Monthly Fixed Line AMPU (8)
Minutes
4,176
4,000
300
AMPU, Minutes
Minutes, Millions
5,000
3,000
2,000
1,000
273
239
250
198
200
150
100
50
0
0
2008
(8)
253
2009
2010
2011
2008
2009
2010
2011
In the 2st Annual Review, the TRA used subscriptions as end December to calculate average revenues/ usage. In this report the TRA has used average
subscriptions over the calendar year.
18
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Fixed Telephony – Quality of Service (QoS) - Reported Faults
As a requirement of the TRA’s Policy on Quality of Service, Etisalat and du began submitting QoS data to the
TRA from 1 January 2009. This data is based on mutually agreed reporting specifications. See for more
details “Quality of Service Regulatory Policy – Reporting Specifications” available at www.tra.gov.ae
Number of Reported Faults Per 1000 Subscriber Lines
45
35
30
25
20
15
10
Etisalat
Sep-2011
May-2011
Jan-2011
Sep-2010
May-2010
Jan-2010
Sep-2009
0
May-2009
5
Jan-2009
Faults per 1000 Subscribers
40
Du
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UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Fixed Telephony – Quality of Service - Average Provisioning Time
Average Provisioning Time in Calendar Days
9
8
6
5
4
3
2
1
Du
Oct-2011
Jul-2011
Apr-2011
Jan-2011
Oct-2010
Jul-2010
Apr-2010
Jan-2010
Oct-2009
Jul-2009
Apr-2009
0
Jan-2009
Calendar Days
7
Etisalat
20
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Mobile Services – Active Subscriptions
•
The number of active mobile subscriptions increased by 7.3% between 2010 - 2011.
•
In 2011, the mobile penetration rate reached 199%.
•
In 2011, the share of postpaid subscriptions reached 12% of total mobile subscriptions
compared to 11% in 2010.
Active Mobile Subscriptions (9)
(1000s)
Breakdown of Prepaid vs. Postpaid
Subscriptions (10)
14,000
9,358
200%
204%
197%
8,000
199%
185%
190%
6,000
170%
4,000
155%
2,000
Penetration
Subscriptions, 1000s
10,000
10,926
215%
Percentage of subscriptions
10,672
12,000
11,727
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
91%
91%
2009
11%
2010
88%
12%
2011
140%
2008
2009
Total subscriptions
(9)
9%
9%
2008
-
89%
2010
2011
Prepaid
Postpaid
Penetration Rate
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.
(10) Prepaid figures include mobile visitors.
21
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Mobile Services – BlackBerry Subscription/Smart Phone /Mobile Data User
800
529
600
326
Subscribers in Thousands
1000
858
As of December 2011 Number of Subscriptions
400
200
0
Number of BlackBerry
Subscriptions
Smart Phone Data
Package Subscriptions
Mobile Data Users
The TRA began the collection of these statistics in 2011
22
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Mobile Services – Revenue
• Revenues generated from mobile services
increased by 8.3% in 2011,and the majority of
the increase comes from the increase in the
postpaid revenue which increased 33.9%
compare to the previous year .
Breakdown of Total Revenue (10)
(AED, millions)
15,000
13,005
12,737
12,337
12,339
10,000
• Mobile monthly Average Revenue Per User
(ARPU) increased by 3.4% in 2011 .
Total Mobile Revenues
(AED millions)
6,787
-
2008
19,932
2010
2011
Postpaid Revenue
18,400
19,000
17,787
17,319
Mobile Monthly ARPU
17,000
190
16,000
Millions, AED
2009
Prepaid Revenue
20,000
18,000
4,364
4,315
5,000
5,066
172
170
15,000
150
ARPU, AED
150
14,000
13,000
12,000
143
148
2010
2011
130
110
90
70
11,000
50
10,000
2008
2008
(11)
Excluding mobile data revenue.
2009
2010
2009
2011
23
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Mobile Services – Usage (Minutes)
•
•
Total annual mobile originated call
minutes increased by 7.9% between
2010 and 2011.
International call minutes increased by
26% between 2010 - 2011.
In 2011, outbound roaming minutes
increased by 367% compare to 2010.
Breakdown of Total Annual Voice Minutes (millions)
Voice Minutes, Millions
•
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
5352
936
22,886
4,232
3,819
3,820
963
75
2008
Total Annual Voice Minutes
(millions)
15,862
15,846
15,460
14,722
156
939
2009
928
159
2010
744
2011
Mobile to Fixed
Mobile to Mobile
International minutes
Outbound roaming
23,000
22,000
Mobile Average Minutes Per
User/Subscription (AMPU)
21,200
21,500
21,000
20,426
20,000
451
500
20,500
AMPU, Monthly
Minutes, Millions
22,500
19,585
19,500
19,000
18,500
410
362
400
334
300
200
194 174
172
147
168
181
142
142
2010
2011
100
18,000
17,500
2008
2009
2010
2011
2008
Total
2009
Prepaid
Postpaid
24
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Mobile Services – Usage (SMS & MMS)
SMS (12)
• Total MMS messages sent decreased by
19% between 2010 and 2011.
3,578
4,000
SMS, Millions
• Total SMS messages sent decreased by
10% between 2010 and 2011.
3,254
3,500
2,900
3,000
2,500
2,000
1,500
1,120
1,000
500
2008
% Growth
2008-2009
% Growth
2009-2010
2009
2010
2011
MMS
% Growth
2010-2011
84
90
SMS
MMS
219%
58%
-9%
-25%
-10%
-19%
MMS , Millions
80
63
70
60
53
51
50
40
30
20
10
2008
(12)
SMS includes domestic SMS, international SMS and SMS sent by outbound roamers.
2009
2010
2011
25
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Mobile Services – Quality of Service – Measured Mobile Networks Performance
Overall Call Setup Success Rate*
98.57%
98.83%
98.19%
97.49%
Percentage
45.00%
30.00%
15.00%
0.00%
2010
2011
Etisalat
du
Overall Call Drop Rate*
Percentage
0.8%
0.64%
0.54%
0.6%
0.4%
0.24%
0.14%
0.2%
0.0%
2010
2011
Etisalat
du
*The drive tests conducted during the below mentioned periods:
•2010: April 3 – July 27, 2010
•2011: March 8 – June 12, 2011
26
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Mobile Services – Quality of Service – Calls Not Connected
% of Failed Call Attempts
3.5%
Since September 2010, the
Licensees have been measuring
and reporting data on a
comparable basis.
3.0%
2.0%
1.5%
1.0%
"Etisalat"
Nov-2011
Sep-2011
Jul-2011
May-2011
Mar-2011
Jan-2011
Nov-2010
Sep-2010
Jul-2010
May-2010
Mar-2010
Jan-2010
Nov-2009
Sep-2009
Jul-2009
May-2009
0.0%
Mar-2009
0.5%
Jan-2009
% of Calls
2.5%
"Du"
27
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Mobile Services – Quality of Service – Calls Breaking up
% of Calls Breaking Up While Talking On The Phone
1.2%
1.0%
0.6%
0.4%
Etisalat
Nov-2011
Sep-2011
Jul-2011
May-2011
Mar-2011
Jan-2011
Nov-2010
Sep-2010
Jul-2010
May-2010
Mar-2010
Jan-2010
Nov-2009
Sep-2009
Jul-2009
May-2009
0.0%
Mar-2009
0.2%
Jan-2009
% of Calls
0.8%
Du
28
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
International Voice Services
Breakdown of International Outgoing Traffic
(Millions, Minutes)
5,842
6,000
4,601
4,392
5,000
3,819
3,820
4,000
4,831
5,352
781
572
1,000
9,683
4,232
3,000
2,000
10,000
599
490
-
Millions, AED
Minutes, Millions
Breakdown of International Revenues
(AED Millions)
9,373
8,485
8,915
7,760
7,725
8,489
7,563
8,000
6,000
4,000
1,612
1,198
2,000
1,190
926
2008
2009
2010
Total International Minutes
2011
Minutes from Mobile
Minutes from Fixed
International
outgoing
Minutes
2008
2009
Total International Revenues
2010
2011
Revenues from Mobile
Revenues from Fixed
% growth
2008-2009
% growth
2009- 2010
% growth
2010- 2011
International
Revenues
From Fixed
37%
-23%
-18%
From Mobile
- 0.03%
11%
26%
% growth
2008-2009
% growth
2009- 2010
% growth
2010- 2011
From Fixed
35%
-26%
-22%
From Mobile
- 9%
-0.5%
-2%
29
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
International Voice Services - 2011
International Traffic (Fixed & Mobile ) by Outgoing (top 10 countries) (13)
Percentages of international traffic
35%
30%
25%
20%
21.6%
18.2%
14.7%
13.2%
15%
8.7%
10%
7.1%
6.2%
4.9%
3.6%
2.3%
5%
3.4%
2.7%
1.1%
1.0%
0.9%
0.2%
1.7%
2.2%
1.3% 0.9%
0%
India
Pakistan
Bangladesh
Egypt
Philippines
% of International outgoing Traffic
Saudi Arabia
Syria
Nepal
Oman
Lebanon
% of International Incoming Traffic
• Calls to India, Pakistan, Bangladesh and Egypt represented 52% of the total outgoing international traffic
in 2011.
• 31% of the total incoming international traffic in 2011 came from India and Saudi Arabia.
(13)
sorted by outgoing traffic
30
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Internet - All Subscribers
• As of December 2011, there are over 1.32 million Internet subscribers in the UAE.
• As of December 2011, the percentage of internet subscriptions by fibre technology increased by
70.8% compared to the previous year.
• The penetration of Internet users was 56.4% in 2011.
Internet Subscription by
Technology (15)
Total Internet Subscribers (14)
1,600,000
1,400,000
1,374,903
1,327,310
1,201,853
67.3%
60%
62.0%
61.3%
1,000,000
56.4%
45%
800,000
600,000
18.5%
26.9%
24.8%
400,000
22.6%
30%
Penetration
Internet Subscribers
1,200,000
1,308,858
1,400,000
75%
Internet Subscribers,
1,404,405
1,128,528
1,200,000
1,074,258
1,000,000
826,869
800,000
494,558
600,000
289,436
400,000
200,000
77,634
53,414
19,911
17,913
11,209
5,883
2008
2009
2010
2011
15%
200,000
2008
2009
Total Subscribers
2010
2011
Wi-Max , Cable
Fiber
*Copper
Penetration Rate
Internet user penetration rate
(14)
Internet User Penetration rate calculated by using the ITU methodology which assumes there are 2.5 Internet users per Internet subscription.
Copper contains active & inactive dialup subscribers. Less than 10% of dial-up subscribers are active subscribers in the UAE. In the TRA’s Annual Review for
2009- 2012 (due May 2013) the TRA will report only active dial-up subscribers see www.tra.gov.ae for further details.
(15)
31
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Internet - Broadband Subscribers
• Total number of broadband subscribers increased by 10.5% between 2010 – 2011.
• Penetration of broadband user increased from 35.6% in 2010 to 37.1% in 2011.
Broadband Subscribers
(16)
1,000,000
873,395
790,082
800,000
50%
690,424
700,000
600,000
40%
559,004
500,000
35.6%
37.1%
30%
33.1%
400,000
28.5%
20%
300,000
200,000
100,000
11.4%
13.2%
14.3%
14.8%
2009
2010
2011
0
10%
0%
2008
Broadband subscribers
(16)
60%
Penetration
Broadband Subscribers
900,000
Broadband Penetration Rate
Broadband User Penetration Rate
Broadband User Penetration rate calculated by using the ITU methodology which assumes there are 2.5 Internet users per Internet
subscription.
32
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Internet - Double Play & Triple Play Subscriptions
300
250
152
Subscribers in Thousands
292
As of December 2011 Number of Double/Triple Play Subscriptions
200
150
100
50
0
Double Play Subscriptions
Triple Play Subscriptions
The TRA began the collection of these statistics in 2011
33
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Residential and Business Subscribers
Business Internet Subscribers, (1000s)
772
800
700
698
637 620
586
600
509
497
500
366
400
300
200
100
2008
2009
2010
2011
Business Subscribers, 1000s
Residential Subscribers, 1000s
Residential Internet Subscribers, (1000s)
102
100
87
77
80
92
71
57
60
50
40
20
2008
Residential dialup subscribers
2009
2010
2011
Business dialup subscribers
Residential broadband subscribers
Business broadband subscribers
Subscribers growth
2008 - 2009
Subscribers growth
2009 - 2010
Subscribers growth
2010 - 2011
Residential dial-up
9%
-22%
-26%
Business dial-up
35%
14%
1.1%
Residential broadband
22%
13%
11%
Business broadband
42%
30%
11%
Service
88
34
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Residential Broadband Subscribers
The Distribution of Residential and Business Broadband Subscribers
Distribution of Residential Broadband Subscribers by Internet Speed 2008 - 2011
75%
72%
51%
47%
45%
37%
30%
30%
27%
25%
19%
16%
15%
1%
0%
0%
2008
2009
2010
less than 1 Mbps
2011
[ 1 _ 4] Mbps
More than 4 Mbps
Business Broadband Subscribers
Distribution of Business Broadband Subscribers by Internet Speed 2008 - 2011
56%
50%
60%
48%
44%
39%
41%
37%
40%
34%
25%
30%
15%
20%
10%
1%
0%
0%
2008
less than 1 Mbps
2009
[ 1 _ 4] Mbps
2010
2011
More than 4 Mbps
35
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Internet Services – Revenue
• Internet revenues increased by 21.5% in 2011, compared to the previous year with the increase
due to the inclusion of Double Play (internet & voice) and Triple Play (internet, voice & IPTV)
revenue under Internet Revenue.
• This revenue growth can be attributed in part to the increasing proportion of subscribers on
broadband rather than dial-up packages.
Total Internet Revenue (AED, millions)
Revenue, AED
3,600
3,322
2,733
3,200
2,532
2,800
2,400
1,740
2,000
1,600
1,200
800
400
2008
2009
2010
2011
36
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Internet Services – ARPU Broadband
• Internet ARPUs has increased as the proportion of subscribers taking broadband packages has
increased.
• Business broadband monthly ARPU is significantly higher than that of residential subscriptions.
Broadband Monthly ARPU, AED
3,000
2,642
Broadband ARPU, AED
2,500
2,000
1,500
1,169
917
919
1,000
500
303
328
299
331
237
222
252
78
Overall Broadband
2008
Residential Broadband
2009
2010
Business Broadband
2011
37
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Internet Services – Quality of Service - Reported Faults
Number of Reported Faults Per 1000 Subscriber Lines
80
70
60
40
30
20
Etisalat
Nov-2011
Sep-2011
Jul-2011
May-2011
Mar-2011
Jan-2011
Nov-2010
Sep-2010
Jul-2010
May-2010
Mar-2010
Jan-2010
Nov-2009
Sep-2009
Jul-2009
May-2009
0
Mar-2009
10
Jan-2009
Faults per 1000
50
du
38
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Internet Services – Quality of Service – Provisioning Time
Average Provisioning Time in Calendar Days
12
10
6
4
2
Etisalat
Oct-2011
Jul-2011
Apr-2011
Jan-2011
Oct-2010
Jul-2010
Apr-2010
Jan-2010
Oct-2009
Jul-2009
Apr-2009
0
Jan-2009
Calendar Days
8
Du
39
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Data Services – Leased Lines
• The number of leased lines subscribers increased by 17% in 2011 compare to the previous year.
• Leased line revenue increased by 1.5%.
Total Leased Lines Subscribers
Total Revenue (AED millions)
44,739
45,000
1,200
1,145
2010
2011
1,029
38,271
40,000
1,128
1,000
879
Revenue in millions
Number of Subscribers
35,000
30,000
25,000
20,000
17,610
17,485
15,000
800
600
400
10,000
200
5,000
0
0
2008
2009
2010
2011
2008
2009
40
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
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
Fiber To The Home
ISDN
Integrated Services Digital Network
ADSL
Asymmetric Digital Subscriber Line
Kbps
Kilobits Per Second
Mbps
Megabit s Per Second
QoS
Quality of Service
PCR
Price Control Request
41
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Annex-2
Usage Indicators
Fixed Lines Indicators for the year 2011
Average duration of domestic call from fixed line
1.97 min
Average Revenue of domestic call from fixed line
AED 0.31 /min
Average International call duration from fixed line
4.66 min
Average Revenue from International call from fixed line
AED1.89/min
Average International minutes by Fixed Line
23 min/month
Mobile Indicators for the year 2011
Average duration of mobile domestic voice call
1.69 min
Average Revenue of mobile domestic call
AED 0.34 /min
Average International call duration
3.35 min
Average Revenue from International call
AED 4.73 /min
Average International minutes per user
40 min/month
Average National SMSs per subscriber
16 SMS/month
Average International SMSs per subscriber
5 SMS/month
42
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
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 2008 – 2011
Provided to the TRA by du and Etisalat on
a monthly basis.
TRA Mobile Networks Benchmarking studies
www.tra.gov.ae
43
UAE Telecommunications Sector Developments & Indicators (2008-2011), issued May 2012
Annex-4: Relevant Graph(s) included in 2nd Review (2007-2010)
International Voice Services - 2010
International Traffic (Fixed & Mobile ) by Destination (top 10 countries)
35%
31%
30%
25%
25%
20%
16%
15%
10%
8%
10%
7%
6%
2%
5%
5%
0.8%
4%
0.7%
3%
2.8%
1%
2%
2.44%
3%
2.41% 2%
0%
India
Pakistan
Egypt
Bangladesh
Philippines
% of International outgoing Traffic
Saudi Arabia
Syria
Oman
United
Kingdom
Lebanon
% of International Incoming Traffic
• India, Pakistan, Egypt and Bangladesh represent 55% of the total outgoing international traffic.
• India ,Saudi Arabia and Pakistan represent 48% of the total incoming international traffic.
44