An overview of Jordans mobile market: Current status, - PowerPoint PPT Presentation

An overview of Jordan’s mobile market: Current status, opportunities and challenges Prepared for: Realizing Jordan’s Mobile Future, GSMA event April 28, 2014

Mobile adoption in the Arab region (2013) Mobile penetration % Mobile subscriptions (000s) 250% 200% 150% 100% 50% 0% 0 20,000 40,000 60,000 80,000 100,000 120,000 98.7% Algeria 38,224 Algeria 173.0% Bahrain 2,210 Bahrain 116.0% Egypt 99,700 Egypt 83.5% Iraq 29,264 Iraq 114.6% Jordan 10,314 Jordan 164.6% Kuwait 6,533 Kuwait Lebanon 89.8% 3,885 Lebanon 153.3% Libya 10,237 Libya Mauritania 116.3% 4,215 Mauritania Morocco 42,424 128.7% Morocco Oman 141.8% 5,623 Oman Palestine 3,363 76.1% Palestine Qatar 3,805 196.5% Qatar Saudi Arabia 50,800 169.4% Saudi Arabia Sudan 28,849 79.8% Sudan Syria 13,367 59.7% Syria Tunisia 12,712 116.8% Tunisia UAE 15,694 177.1% UAE Yemen 15,178 60.1% Yemen Note: Cellular subscriptions in Iraq, Syrian, Libya and Mauritania are estimated by the Arab Advisors Group. Our estimates are mainly based on reported data by market constituents, in addition to Historical trends. Source: Operators, regulators , Arab Advisors Group 2

Mobile broadband - Dedicated Data SIMs - in the Arab world (2013) Dedicated data SIMs as a % of mobile subscriptions Dedicated mobile data sims (000s) 0 2,000 4,000 6,000 8,000 10,000 12,000 40% 30% 20% 10% 0% Bahrain 206 9.3% Algeria Egypt 3,900 3.9% Bahrain Jordan 11.4% 1,174 Egypt Kuwait 588 9.0% Iraq Lebanon 178 4.6% Jordan Morocco 1,796 4.2% Kuwait Oman 1,676 29.8% Lebanon 0.0% Palestine 0 Libya Qatar 217 5.7% Mauritania Saudi Arabia 9,680 19.1% Morocco Sudan 692 2.4% Oman Syria 521 3.9% Palestine Tunisia 615 4.8% Qatar UAE 1,962 12.5% Saudi Arabia Note: Dedicated Data SIMs in Lebanon, Morocco, Sudan, Syrian and Tunisia are estimated by the Arab Advisors Group. Source: Operators, regulators , Arab Advisors Group 3

Jordan’s mobile market players Zain Orange Umniah Friendi Latest market Incumbent Second market An MVNO, hosted entrant that operator that is entrant, and by Zain. Friendi intensified Managing 2G first operator to Focuses on non- competition and 3G launched 3G in Jordanian through offering networks. Zain the kingdom nationalities lower rates. plans to launch during March residing in Umniah launched LTE by end of 2010 Jordan 3G in 2012 2014 4

Despite the growth in the Jordanian’s mobile market subscriptions, revenues have declined during 2012 and 2013 Jordan’s mobile market subscriptions and revenues Jordan Mobile revenues (US$ millions) Jordan mobile subscriptions (000s) 1,400 10,229 10,000 8,922 1,200 7,483 8,000 1,000 800 6,000 987.2 975.5 600 916.6 4,000 400 2,000 200 0 0 2011 2012 2013 Source: Arab Advisors Group, TRC, Operators 5

The incumbent operator, Zain, is the cellular market leader with more than 4 million subscriptions Mobile subscription market share Zain Orange Umniah Friendi 100% 90% 27.2% 26.3% 28.4% 80% 70% 60% 35.5% 36.0% 31.6% 50% 40% 30% 20% 39.2% 37.6% 36.8% 10% 0% 2011 2012 2013 Source: TRC, Operators, Arab Advisors Group 6

Zain’s mobile revenue share is larger than its subscription market share, due to having the highest ARPU among market players Mobile revenue share Zain Orange Umniah 100% 90% 22.8% 22.8% 23.6% 80% 70% 24.7% 28.2% 29.0% 60% 50% 40% 30% 51.8% 49.1% 48.2% 20% 10% 0% 2011 2012 2013 Source: TRC, Operators, Arab Advisors Group 7

Opportunities and Challenges for the mobile industry Opportunities and Challenges Challenges Opportunities • High population growth, which is key, • Highest tax rate on mobile users in the given the current mobile penetration Arab region (43.8%). rate. • Intense competition and price wars • High percentage of youth among the drove voice rates to low levels. population, who are early adopters of emerging technologies and services. • Intense competition between mobile broadband and fixed Wifi networks • Emerging networks, namely LTE, hinders mobile broadband growth. amidst the ongoing adoption of This is especially true in the context bandwidth demanding services. where mobile broadband is offered at higher rates, as operators have • Emerging services with promising invested in 3G licenses and networks. growth, such as M2M, NFC, IPTV and Cloud based services, among others. 8 Private and confidential

Arab Advisors Group Arab Advisors Group provides reliable research, analysis and forecasts of Arab communications, media, technology and financial markets. www.arabadvisors.com For a copy of the presentation, email arabadvisors@arabadvisors.com @ArabAdvisors www.facebook.com/Arab.Advisors.Group www.youtube.com/ArabAdvisors 9