The Middle East ICT

Despite achieving record growth in 2012, telecoms operators in the UAE have seen their profit margins affected by a new royalties programme introduced by the federal government. However, surging demand in Dubai for the latest mobile devices, particularly smartphones and tablets, as well as a more diversified range of value-added services, should result in in even greater growth and profitability in the coming years.

A new deal between local telecommunications firms and the Turkish government is expected to see the introduction of a new 4G network in Turkey by 2016. This move has been hotly anticipated by telecoms operators, as they will be able to expand their services and offer new products that take advantage of the improved network speeds.

The regulator of Bahrain’s telecommunications sector recently announced plans to unlock additional radio spectrum to improve speed and availability, news that has been much welcomed by sector players. However, how the bands will be allocated and to whom has not been made clear.

The launch of 4G long-term evolution (LTE) services in Kuwait has sparked a wave of increased activity among mobile operators as they move to attract new business in what is already a fiercely competitive telecoms market.

The introduction of mobile number portability (MNP) in Qatar, a move the industry regulator says will boost competition, may indeed provide a boost for Vodafone Qatar, but with mobile penetration already at 165%, MBP may not be enough to completely level the playing field.

The government is working hard to keep telecoms investment from leaving the country and expand the sector’s role in domestic employment, particularly as the short-term economic outlook looks set to remain strained. As a result the Kingdom is considering the possibility of allowing a new provider to enter the mobile telephony segment.