The Saudi Arabian telecom market generated $13.0bn in service revenue in 2010. We expect growth to continue over the next few years, at a CAGR of 4.2% from 2011 to 2016 to reach $17.2bn in 2016. The market will continue to lean heavily toward mobile data consumption. The commercial launch of LTE service, predicted to be a significant driver of mobile data consumption, will be part of the reason for the positive growth trend.
From 2011 to 2016, we estimate that mobile data revenue will more than double to reach a total of $4.2bn, a sum that is more than half of anticipated mobile voice service revenue generation in 2016 ($8.0bn). Overall, mobile voice services will experience revenue decline but the amount lost will be negligible, falling from an estimated $8.2bn in 2011 with a CAGR of -0.7% through 2016.
The fastest growth segments will be fixed VoIP (37.3% CAGR for 2011-2016) and pay-TV (21.8% CAGR for 2011-2016), although revenue in these areas is only expected to be $198m and $166m, respectively, by 2016. As dial-up service continues to decline, we project broadband Internet to grow by 10.2% from 2011-2016, leading to strong revenues of about $2.4bn in 2016. Fixed circuit-switched voice will also experience modest growth to reach $2.2bn in revenue in 2016.
Table of Contents
Executive Summary
Market and Competitor Overview
Saudi Arabia in a regional context
Economic, demographic and political context
Regulatory environment
Demand profile
Service evolution
Competitive landscape
Major market players
Segment analysis
Mobile services
Fixed services
Pay-TV
Convergence
Identifying Opportunities
The Saudi Arabia Intelligence Report is the industry’s best available analysis on market trends, regulatory environments, and competitive dynamics, providing detailed competitive analysis on fixed and mobile sectors, tracking market adoption of new technologies and services such as WiMAX, IPTV, and VoIP.
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