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Study Shows Telecom Competition in the Middle East Falling

Middle East : 20 October 2010

Competition in the telecom industry falling across the Middle East according to analysts

A recent index covering the current year reported that competition within the telecom market of the UAE has shrunk in the last year.  Arab Advisors Group released the study.

In the Cellular Competition Intensity Index for 2010 Jordan climbed to the top with the most competition in the Arab world for this specific sector.

The teleco market in Jordan earned a score of over 80 per cent, while the UAE landed at 45.4 per cent and experienced a significant drop over the last 12 month period.  Other nations also saw their scores fall.

In the Arab region there are just three national telecom sectors, Syria, Lebanon and Libya, that scored lower in the competition index than the UAE.

The current index ranked Saudi Arabia in second place and Palestine came in third.

This index was formulated by the Arab Advisors Group to accurately rate, rank and analyze the levels of competition in each of national markets across the region.

Data used within the index includes the amount of telecom operators, as well as the various packages and services offered in each of the 19 nations under the umbrella of the analyst organization.

The UAE takes the lead within other segments of the index.  When internet usage and landlines are considered in the view, the UAE rises to the top.

In an additional survey entitled the TCCM (Total Country Connectivity Measure), the Arab Advisors Group found that the UAE is the leader at 352 per cent, followed by Saudi Arabia at 286 per cent and Qatar at 254 per cent.  This category included fixed and internet connections as well as cellular.

Senior research analyst with the group, Samer Abbas noted that higher scores within the TCCM were intertwined with higher levels of income.

The GCC countries are at the top of the TCCM due to higher income and increased GDP per capita figures when compared to the balance of the Arab world.

Several things are combined with the TCCM figures to indicate the connectivity of the residents in a given country.  The penetration of landlines, the usage and coverage of cellular technology and the usage of the internet for each location are a part of the survey.

Results from the annual survey indicate the area is growing and improving while cellular services and internet connectivity in particular displayed strong development.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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