Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The United Arab Emirates Telecoms– Growth Opportunities Shift

Growth in the UAE telecoms markets shows signs of slowing particularly in the mobile services market as penetration has reached over 210%. However, growth opportunities are expected to come from high speed broadband and related services such as content provision.

The incumbent network operator Etisalat has managed to build a fixed line subscriber base of around 2.1 million. The country has a mobile subscriber base of around 18.8 million at the end of 2015. The country has a mobile teledensity of 210% implying that the additional users in the country are coming from migrant workers in the UAE.

Table: UAE Telecommunications connections and services 2012 - 2020 (millions)

 

2012

2013

2014

2015

2016

2017

2018

2019

2020

CAGR 2015-2020

Mobile subscribers

12

14

16.45

18.88

19.07

19.35

19.65

19.94

20.24

6%

Mobile penetration

133%

156%

183%

210%

212%

215%

218%

222%

225%

-31%

Mobile broadband

2.70

2.95

3.21

3.50

3.82

4.16

4.53

4.94

5.39

14%

Smartphones

6.72

8.96

12.01

17.14

17.92

18.58

19.06

19.54

19.83

22%

Fixed lines

2.04

2.06

2.08

2.10

2.16

2.23

2.30

2.36

2.44

-20%

Fixed broadband

0.62

0.63

0.63

0.66

0.68

0.71

0.74

0.77

0.80

-32%

Internet users

4.20

4.82

46.80

47.90

49.10

50.40

51.66

52.90

54.20

45%

Source: Market Monitor

The nature of the market has indicated that the two major network operators, Etisalat and Du will focus on service quality and customer care to secure and win new revenues.