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September 2015
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Disclaimer
The TRA has compiled this report based on information received from industry, as well as from
publicly reported information from other sources.
Whilst this report and the information contained herein is, to the best knowledge of the TRA, free
from error, the TRA does not make any representations or warranties, either express or implied, as
to the accuracy of the information.
Furthermore, the TRA is not liable for any inaccuracies, errors or omissions in the information
contained in this document or any harm that may be incurred in reliance thereon.
If a reader wishes to use any of the information contained in this report as the basis for any
decision, whether or not related to investment, the reader is obliged to determine the accuracy of
the same.
Furthermore, the information is provided for educational purposes only and is not intended to be a
recommendation to take any particular course of action.
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Table of Contents
Page
Introduction 4
Industry Background 5
Summary of Telecommunications Indicators .. 6
Employment . 7
Price Control and Consumer Complaints 8
UAE - Rankings ............................................................................................................. 9
Fixed Telephony Services .... 13
Mobile Services .. 16
International Voice Services . 20
Internet Services 22
Data Services 28
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Introduction
This report is the 6th TRA Annual Sector Review. It summaries the state of the fixed, mobile, and
data telecommunications markets in the United Arab Emirates (UAE) in terms of subscribers,
penetration rates, revenues, and usage (i.e. traffic volumes) for the years 2011 2014. The report
also outlines the UAEs ranking in various international studies.
The data contained in this report is published in aggregate form only and statistics for individual
Licensees are not provided. The TRA has taken this step to protect the commercially sensitive
information of each Licensee while recognising that for the purpose of transparency, sound
regulatory practice, and to aid in the development of competition a publication of this nature is
warranted.
The TRA wishes to thank each of Emirates Telecommunications Corporation (Etisalat) and
Emirates Integrated Telecommunications Company PJSC (du) for their respective contributions to
this report through the regular supply of sector specific information and statistics to the TRA.
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Industry Background
Today, the sector continues to be served by both Etisalat and du across multiple services as
illustrated in the table below:
Other data
Licensee Fixed Mobile Internet Leased Lines
services
Etisalat
du
Several other niche licences were granted by the TRA between the period from 2010 to 2013, namely:
Al Yah Satellite Services Company PJSC (2010), Al-Yah Advanced (2010), Star Satellite
Communications (2010), Al-Maisan Satellite Communications (2011), Media Zone Intaj FZ LLC (2011)
and Thuraya (2013). The impact on the above listed services resulting from the granting of these
licences on the relevant market(s) is yet to be seen and measured. Therefore, all data provided in this
report relates only to Etisalat and du, and the term Licensee refers only to either Etisalat or du.
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
The table below sets out a range of major indicators specific to the UAE telecommunications
sector for 2014.
Fixed Telephony
Indicator Mobile Services Internet Services
Services
Source: 2014 Industry data provided by Etisalat and du to the TRA. Please note that these figures pertain only to telecommunications
services that are regulated by the TRA.
(1) Average Revenue per User (ARPU) : Calculated by dividing the total revenues for a given period by the average number of subscribers during the same period.
(2) Average Minutes per User (AMPU ): Calculated by dividing the total minutes for a given period by the average number of subscribers during the same period. 6
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
In 2014, the TRA handled 3,413 complaints from business and residential consumers concerning
issues with Licensees which is a significant increase from previous years. There are two principal
reasons for the increased number of complaints. Firstly, the overall number of consumers is
increasing, thus there is a greater potential for complaints to arise. Secondly, there is increased
awareness among consumers of the TRAs complaints procedures and the TRAs activities in
safeguarding consumer interests.
3413
451 3500
500 410 3000
400
Number of Complaints
2500
Number of PCRs
2097
285 293 269 272 275
300 2000
230 1493
1500
200 980
1000
100 500
0 0
2011 2012 2013 2014
Total Approved
2011 2012 2013 2014
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
The TRA monitors the following three key performance indexes associated with the telecommunications
sector:
Networked Readiness Index (NRI);
ICT Development Index (IDI); and
Global Competitiveness Index (GCI).
The TRA played a key role in securing this progress through developing and implementing policies to
promote competition within the sector and providing an optimal enabling environment for ongoing
investment in telecommunications services and infrastructure.
The UAE is ranked 1st of all the Arab states in the 2015 Networked Readiness Index (NRI) study issued
by the World Economic Forum, and 23rd among all 143 countries assessed, moving up by one position
from 24th in the previous ranking of 2014. The NRI measures the capacity of an economy to fully
leverage ICT for increased competitiveness and development. The NRI study was published in The
Global Information Technology Report 2015 and is based on data collected by organizations such as
the International Telecommunications Union (ITU), the World Bank, and the United Nations (UN).
UAE Rankings in International Indices
2008-2015
2008 2009 2010 2011 2012 2013 2014 2015
10
12
20 23 23 19
24 24
Rankings
29 25 24 23
27 25 27 30
30 31
29 33 32
33 31
40 32
45
Global Competitiveness Index IDI Index Networked Readiness Index
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
In terms of the individual indicators analysed, the UAE ranked first among the Arab states in terms of:
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
The International Telecommunications Union (ITU) recently launched the 2014 edition of its report
Measuring the Information Society (MIS). The MIS report, which has been published annually since
2009, features key ICT data and benchmarking tools to measure the information society, including
the ICT Development Index (IDI). The IDI captures the level of ICT developments in 166 economies
worldwide and compares progress made during the last year
The UAE has made progress and moved one place up in its IDI ranking to 32nd in the world. This
was the 2nd highest ranking among all the GCC and Arab states.
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
A recently published report by the World Economic Forum based its competitiveness analysis on the Global 2014
Competitiveness Index (GCI), a comprehensive tool that measures the microeconomic and macroeconomic foundations
of national competitiveness. The competitiveness index is determined by measuring 12 sets of indicators, which include
Technological Readiness and Innovation.
The UAE was ranked 12th, shooting up 7 places out of 144 countries for the GCI 2014-2015.
Key findings of the Global Competitiveness Report are summarised in the table below:
Indicators Ranking
World ranking in Government procurement of advanced tech. products 2
World ranking in quality of overall infrastructure 3
World ranking in burden of government regulation 3
World ranking in Foreign Direct Investment (FDI) and technology transfer (Investment bringing new technologies) 3
World ranking in mobile telephone subscriptions/100 population 6
World ranking in effectiveness of anti-monopoly policy 6
World ranking in firm-level technology absorption 7
World ranking in availability of latest technologies 8
World ranking in intensity of local competition 9
World ranking in individuals using Internet 10
World ranking in extent of market dominance 10
World ranking in mobile broadband subscriptions/100 population 11
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Number of Fixed Lines (3) (000s) Business vs Residential Fixed Lines (000s)
(3 ) The fall in penetration levels in 2012 was due to the use of a different set of population estimates to what had been previously used by the TRA.
12
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Revenue, millions
rental revenues from double play (fixed line 1,000.00 831
720
services bundled with broadband) or triple play 800.00 620
(fixed line services bundled with broadband and 600.00
TV) subscriptions. 400.00
200.00
0.00
2011 2012 2013 2014
Domestic Voice Revenue International Voice Revenue
Total Fixed Telephony Revenues (4)
(AED, millions, excludes Double/Triple Play revenues) Monthly Fixed Line ARPU, AED
138
2,898
140 116
2,900 108 110
2,794 120
Millions, AED
(4) Total fixed revenues include revenues from single play fixed line telephones, calls from Payphones and calls to directory enquiry. It does not include revenue generated from the monthly charges for Double Play and Triple Play subscriptions.
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Minutes, Millions
3,000 2,720
2,504 2,453 2,457
Calls to mobile phones represents the 2,500
minutes. 1,500
1,000 596 490 578 450 563 396 349
500 148
0
2011 2012 2013 2014
2,955 181
200
154
AMPU, Minutes
3,000
139
150 116
2,000
100
1,000 50
0 0
2011 2012 2013 2014 2011 2012 2013 2014
(6) In the 2nd Annual Review, the TRA used subscriptions as at the end of December to calculate average revenues and usage. In this report, the TRA has used average subscriptions over the calendar year.
(7) Local call minutes have been excluded from the calculations due to data discrepancies. 14
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
The number of active mobile subscriptions increased by 4.6% between 2013 and 2014.
13,775
Percentage of subscriptions
14,000 80%
200%
12,000 199% 199.3% 70%
Penetration
50%
8,000
170% 40%
6,000
168% 30%
4,000 12% 13% 15%
155% 20% 12%
2,000 10%
- 140% 0%
2011 2012 2013 2014 2011 2012 2013 2014
Total subscriptions Penetration Rate
Prepaid Postpaid
(7) Active is defined as any subscriber who has made or received a voice or video call in the preceding 90 days, or has sent an SMS or MMS during that period.
15
(8) Prepaid figures include subscribers on visitor SIM packages.
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
-
2011 2012 2013 2014
Total Mobile Revenues
(AED millions) Prepaid Revenue Postpaid Revenue
16,000
150 136
ARPU, AED
15,000 124 126
14,000 130
13,000 110
12,000 90
11,000 70
10,000 50
2011 2012 2013 2014 2011 2012 2013 2014
(9) Excluding Blackberry revenue, as that level of the revenue segregation is not available
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
AMPU, Monthly
280 274
15,000 300
(10)
AMPU (Total)= total minutes generated from the total mobile subscriptions divided by the average number of mobile subscriptions. AMPU(Prepaid)= total minutes generated from the prepaid subscriptions divided by the
average number of the prepaid subscriptions. AMPU(Postpaid)= total minutes generated from the postpaid subscriptions divided by the average number of the postpaid subscription. 17
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
SMS, Millions
by 14% and 39% respectively when 2,500 2,039
compared to 2013. 2,000
1,500
1,000
500
-
2011 2012 2013 2014
MMS , Millions
40 33
SMS -6% -13% -14%
30
20
MMS -15% -23% -39% 20
10
-
2011 2012 2013 2014
(11) SMS includes domestic SMS, international SMS and SMSs sent by outbound roamers.
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Millions, AED
5,352
6,000
6,000
4,000
4,000
2,000 490 450 396 349
2,000 926 831 720 720
-
2011 2012 2013 2014 -
2011 2012 2013 2014
From Mobile -3.6% 36.7% 31% From Mobile -3% 3.8% 13.4%
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
3,000
2,418
2,500
international traffic, Millions
2,113
2,000
1,500
1,150
1,000
498
500 395 388 370
186 101
133 338 6 51 14 15 3 86 55 70 5
0
Pakistan India Bangladesh Egypt Nepal Philippines Saudi Afghanistan Iran Indonesia
Arabia
Calls to Pakistan, India, Bangladesh represented 77% of total outgoing international traffic in 2014.
The percentage of internet subscribers using fiber technology increased by 14.7% between 2013 and 2014.
Penetration
1,043
958 495
1,000 600
(13) The large decline in the number of internet subscribers in 2012 was due to changes in the methodology for recording dial-up subscribers. As from 2012, the TRA began reporting only the number of active dial-up accounts rather than
the total number of dial-up accounts. Active accounts refer to those that have been used in the previous 90 days. 21
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
The total number of broadband subscribers increased by 4.6% between 2013 and 2014.
The penetration level of broadband was 12.9% as at December 2014.
Broadband Subscribers (15)
Broadband Subscribers in Thousands
Penetration
35%
600
25%
400
15%
200 14.8% 12.5% 12.9%
11.6% 5%
0 -5%
2011 2012 2013 2014
(15) Stand alone includes copper, WiMax and Fibre connections. Double Play subscriptions refer to bundled landline and broadband packages while Triple Play subscriptions refer to bundled landline, broadband and TV packages.
The TRA began the collection of these statistics in 2011. 22
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
600 60
400 40
200 20
- -
2011 2012 2013 2014 2011 2012 2013 2014
Subscriber growth
Subscriber growth Subscriber growth
2012- 2013
Service 2011 - 2012 2013- 2014
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Residential Broadband Subscribers Distribution of Residential Broadband Subscribers by Internet Speed, 2011 - 2014
58% 67% 75%
47%
45%
30%
20% 19%
17% 18%
16%
12%
15% 9% 11%
7% 5%
2% 4%
1%
2%
0.020%
2%
0.010% 1%0.004%2% 2% 1%0.002%1%
0%
2011 2012 2013 2014
256 Kbps 512 Kbps 1 Mbps 2 Mbps 3Mbps 4 Mbps Above 4 Mbps
50%
39%
40% 36%
31% 32%
27%
30% 25%
19% 21%
20% 13%
8% 11% 11%
8% 8%
10% 5% 6% 6% 6%
3% 2% 3%
1% 0% 1% 0.20% 1% 0.16%
0%
2011 2012 2013 2014
256 Kbps 512 Kbps 1 Mbps 2 Mbps 3Mbps 4 Mbps Above 4 Mbps
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
4,325 4,612
4,800
3,827
4,400
4,000 3,322
3,600
3,200
Revenue, AED
2,800
2,400
2,000
1,600
1,200
800
400
0
2011 2012 2013 2014
25
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Internet ARPUs (Average Revenue Per User) have increased over time. This may be due
largely to subscribers moving to higher speed broadband packages.
Business broadband monthly ARPU is significantly higher than that of residential subscriptions.
1136
1200
1047
1001
919
1000
800
Broadband ARPU, AED
600
200
0
Overall Broadband Residential Broadband Business Broadband
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
54,000 53,403
1,280 1,268
52,082
52,000 1,260
1,237
1,240
Number of Subscribers
50,000 49,161
Revenue in millions
1,220
1,198
48,000 1,200
1,180
46,000
44,739 1,160 1,145
44,000 1,140
1,120
42,000
1,100
40,000 1,080
2011 2012 2013 2014 2011 2012 2013 2014
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Annex 1
28
UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Annex 2
Usage Indicators
Fixed Line Indicators for the year 2014
Average duration of domestic calls from fixed lines(16) 1.94 min
Average revenue of national calls from fixed lines(16) AED 0.32 /min
4. 69 min
Average international calls duration from fixed lines
Average revenue from International call from fixed lines AED 1.78/min
Average number of international call minutes per fixed line 13.76 min/month
2.68 SMS/month
Average international SMSs per subscriber
(15) Local call minutes have been excluded from the calculations due to data discrepancies.
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UAE Telecommunications Sector Developments & Indicators (2011-2014), issued August 2015
Annex 3
http://www.itu.int/en/ITU-
International Telecommunication Union (ITU) D/Statistics/Pages/publications/mis2014.aspx
http://www3.weforum.org/docs/WEF_GlobalCompe
World Economic Forum
titivenessReport_2014-15.pdf
30