Boston, MA -- (ReleaseWire) -- 07/02/2014 -- The strong financial results for Q114 reported by Saudi Arabia's three biggest telecoms service providers, despite continued contraction in the mobile sector , is a positive verdict for the operators' new strategies. The operators' two-pronged strategy in the telecoms market involves driving revenue growth through high-value services and improving operating efficiency. The operators signed major managed services contracts with leading vendors in 2013, which should help reduce their input costs over the medium term. In terms of revenue growth, we have seen aggressive expansion of corporate solutions portfolios and non-voice services for private customers.
- Mobile subscriptions declined by 0.8% q-o-q in Q114, according to BMI estimates, following a 4% y-o-y contraction in FY13.
- Fixed-line subscriptions declined by 1.9% y-o-y in FY13, mainly driven by subscription losses in the residential sector.
- Dedicated mobile broadband accounts for the largest share of broadband subscriptions and continues to demonstrate robust growth. Total broadband subscriptions grew by 18.9% y-o-y in FY13.
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Saudi Arabia remained in second position in BMI's Risk/Reward Ratings (RRR) table for the Middle East and North Africa (MENA) in our Q314 update. The country's score benefits from strong subscriptions growth in the broadband sector and a relatively high ARPU. The country's lowest score, albeit higher than the regional average, is in the industry risks category and reflects the government's significant interest in the telecoms sector through its majority stake in the incumbent operator.
Key Trends And Developments
In late May 2014, Etihad Atheeb Telecom abandoned talks to sell Mobily a stake in the company and shortly thereafter announced an agreement to gain access to Saudi Telecoms Company's (STC) fibre network. The deal gives Atheeb access to 30,000 data connections for 15 years, with the possibility of increasing access to...
The Saudi Arabia Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Saudi Arabia's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Saudi Arabia Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Saudi Arabia.
- Benchmark BMI's independent telecoms industry forecasts for Saudi Arabia to test other views - a key input for successful budgeting and strategic business planning in the Saudi telecoms market.
- Target business opportunities and risks in Saudi Arabia's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
Business Environment Ratings
BMI's Telecommunications Business Environment Ratings provides a country-comparative Risk-Reward Ratings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.
The ratings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.
BMI Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
- Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
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