Recently there have been some exciting developments in the Middle East and North Africa (MENA) region in terms of commercial FTTH services. Yet most of these activities have been limited to what we call the “Big Three” (UAE, Saudi Arabia and Turkey): By the end of 2012, these three nations will account for 96% of all FTTH/B subscribers in the region and comprise around 90% of all homes passed. Although some wealthier and ambitious markets of the region, such as Qatar and Israel, are actively building the necessary infrastructure for FTTH, North African operators are still some way off from launching fiber networks.
In this Insider report, we set out to understand why some markets are more conducive to FTTH than others and what lessons can be learned from successful deployments. We develop a list of factors that are influential during the consideration of commercial FTTH launches. We analyze the demand dynamics, namely the effects of existing fixed broadband adoption and potential gaps in the pay-TV market. We consider supply dynamics and create some ROI estimations based on deployments in different urban densities and pricing schemes for countries that have not yet deployed FTTH. We also use competitive dynamics to assess the role of incentives driven by pressures from other operators and segments. We end our analysis by looking more closely into how each of these dynamics impacted the fiber deployment motivations of the operators in the Big Three markets.
Published monthly for each of the world’s most dynamic regions, Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions. For more information about Telecom Insiders, please contact us via email at email@example.com or telephone at (617) 747-4100.