Saudi Arabia Telecom Market What Are The Main Factors That Contributing Towards Industry Growth?

(MENAFN- Comserve) Shibuya-ku, Tokyo, Japan, Japan, Sep 30, 2021, 05:48 /Comserve / -- Saudi Arabia Telecom Market With Top Countries Data, Industry Analysis , Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast

The Saudi Arabia Telecom Market is expected to reach expected to register a CAGR of over 10% over the forecast period 2020 - 2025. The telecom industry is rapidly changing in terms of technological developments, service delivery, competitive landscape, and telcos' services expansion in the non-traditional telecom services section. These include managed infrastructure services, data center/co-location services, and cloud services.

- In Saudi Arabia, the telecom market started expanding soon after liberalization in 2003. Since then, with the entry of foreign investment and government support, the country has built an extremely competitive telecom market.
- The country is one of the most populous nations in the GCC region, with the majority of the population comprising young people. With the growing use of technology, there is an increasing demand for information communication technology (ICT) services.

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Key Market Trends

Successful Liberalization of Saudi Telecom Sector & Launch of MVNOs Driving the Market's Growth

- Licensing of MVNO services is an essential step in the liberalization of the telecommunications market in the country. It aims to provide more choices for users of information and communications technology services. It ​is also expected to offer users with new applications and innovative services, enhance customer care, and to encourage further new investment.
- The country opened up the telecom market to MVNOs in 2013. Currently, two MVNOs are operating in Saudi Arabia, Virgin Mobile and Jawraa Lebara, with Saudi Telecom Company (STC) and Etihad Etisalat Company (Mobily) as host mobile network operators (MNOs), respectively.
- Although the entry of MVNOs increased competition and pricing pressure, it also brought an opportunity for existing MNOs to generate extra revenue by leasing out their infrastructure facilities.
- In January 2020, CITC invited applications for issuing licenses to foreign MVNOs to increase foreign investment in the sector, indicating the regulator's intentions to maintain competitive pressure, considering consumer benefit. CITC is planning to award two MVNO licenses to international operators interested in investing in the country's telecom market. ​

Broadband Services in the Country is Expected to Receive Significant Boost

- Broadband is widely available in the country through digital subscriber line (DSL), fiber, and wireless. Saudi Arabia is one of the prominent countries in the Middle East region in terms of its fiber-based broadband deployment.
- The fixed broadband services (historically led by STC) have witnessed an increase in the use of new fiber connectivity in areas such as Jeddah, Mecca, Riyadh, Medina, and Damma.

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- In November 2018, Saudi Arabia's Ministry of Communications and IT (MCIT) signed an agreement with STC to implement the third phase of a project aiming to offer broadband access with download speeds of 10Mbps to 70% of households in remote areas by 2020.
- Under this deal, STC would provide broadband services to 444,076 households in more than 3,000 villages around Riyadh, Qassim, Makkah, Madinah, Al Bahah, Tabuk, Jazan, Hail, Asir, and Najran, thus extending coverage to a total of 2.5 million people. The first and second phases of the project were completed in July 2018, covering 16% of households in rural areas. Additionally, In June 2019, STC announced the official launch of 5G home broadband services in several cities in the country.
- The country intends to improve high-speed broadband Internet connectivity as part of its Vision 2030. The targets include exceeding 90% of housing coverage in densely populated cities and 66% in other urban areas. The country has set an ambitious goal: to connect 3.5 million households to ultra-fast Fibre-to-the-Home (FTTH) broadband networks by the end of 2020.

Competitive Landscape

The Saudi Arabia Telecom market is currently dominated by three players holding unified licenses: Etihad Etisalat Company (Mobily), Saudi Telecom Company (STC), and Mobile Telecommunication Company Saudi Arabia (Zain KSA). The market also hosts other Internet service providers (ISPs), MVNOs, and fixed-line service providers. Some of the recent developments in the market are:

1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Development of Fiber-based Networks and Fixed Broadband Service
4.2.2 Successful Liberalization of Saudi Telecom Sector & Launch of MVNOs
4.2.3 Largely Conducive Regulatory Environment Favoring Increasing Competition, and Advanced Infrastructure
4.3 Market Challenges
4.3.1 Telecom Service Spending to be Impacted by Large-scale Job losses and the Consequent Restriction on Disposable Incomes
4.4 Market Opportunities (Investment in Smart Cities, Cross-selling of Related Services such as Payment Platform, IPTV, OTT and Media Services)
4.5 Emergence of IoT & M2M Services in Saudi Arabia
4.6 Impact of COVID-19 on the Saudi Telecom Industry
4.7 PESTLE Analysis - Telecom Sector in Saudi Arabia

5 KEY TELECOM INDUSTRY STATISTICS

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