View
217
Download
0
Category
Preview:
Citation preview
8/22/2019 Telecoms Market Report
1/19
Market Report
30 September 2 October
Jumeirah Beach Hotel, Dubai, UAE
Visit our website: www.terrapinn.com/twme
8/22/2019 Telecoms Market Report
2/19
blogs.terrapinn
.com/telecoms
Our MissionThis report is designed to share with you the biggest drivers, disruptions, innovations and investments that are re-engineering the telco industry in the Middle East.
The telecoms industry is acing exciting and somewhat daunting times ahead. Weve entered an era where ongoing
digitization is throwing up new revenue opportunities or telcos, whilst creating more competition, higher expectations with
more investment needed. Operators are let with a stark choice: pioneer or perish!
Research Methodology
This market report has been produced by accumulating stats rom our Telecoms World Middle East Survey, where insights
rom regional telecoms operators were derived through a multiple choice questionnaire. Specically designed questions
ensured we picked telco's brains on what were the most pressing challenges on their mind and what opportunities werethey most excited about.
A dedicated Content Manager also complimented this survey by delving into the latest reports, whitepapers and videos
that seek to understand the disruptive changes to this dynamic industry. Insights were also taken rom the Telecoms
World Middle East 2012 event, whereby regional telco CEOs poured into Dubai in October 2012 to debate whats new,
whats hot and whats next or this rapidly evolving industry.
These research methods collide to provide you with an unrivalled outlook on upcoming investments, the latest services
and business models that will lead to urther innovation in
the Middle East telco market.
8/22/2019 Telecoms Market Report
3/19
Visit out blog blogs.terrapinn.com/telecoms
Join ourTotal Telecom Proessional Network on LinkedIn
Follow us on Twitter @totaltelecom
Join our Total Telecom Community
blogs.terrapinn
.com/telecoms
Thank you to our contributing organizations that shared their insights:
Batelco, du, Saudi Oger, Vodaone Qatar, Mobinil, Etisalcom Bahrain, Ministry o Telecommunications Palestine, Omantel,
Nawras, Zain Group, Etisalat, Orascom Telecom, Qtel, Mobily, Zain Jordan and Wataniya Telecom.
In this market report we delve into the hottest trends and most lucrative opportunities:
Connectedeconomy,connectedlife:puttingtelcosattheepicenter
Thenetwork:thegatewayandbackboneofthecompetitivetelco
Threefoldserviceinnovationandtheriseofenterprise
Goingglobal:accessingmarketsthatareripeforthepicking!
Thank you or downloading our Telecoms World Middle East Market Report. We hope you enjoy the read!
Chloe Higman
Conerence ManagerTerrapinn Middle East
+971 4 440 2560 | chloe.higman@terrapinn.com
8/22/2019 Telecoms Market Report
4/19
Connected Economy,
Connected LifeMiddle East telcos are grappling to uture-proo their business model, as ICT continues to converge with new industries.
From health to transport, entertainment to banking, telcos own the connectivity that these industries are craving. With ongoing
digitization o all industries, the telco business model is constantly evolving, demanding new capabilities to capture market share in
new sectors.
The CEO o du, Osman Sultan, opened Telecoms World Middle East 2012 with a bold statement:
As such, telcos have been presented with a vast and overwhelming opportunity to be at
the epicenter o the economy and o lie. To capitalise on this privilege, telcos must build
a culture o continuous change whilst exploring and experimenting with innovation. Telcos
need not think o themselves as gatekeepers, but as enablers o a connected economy and
a connected lie.
OTT: Friend or Foe?
While telcos might be dabbling in other markets, OTT players have stormed the telco
industry transorming customer expectations, services and network requirements. Taken
by surprise, telcos have struggled to monetize these OTT players, giving them a ree ride on
their network in order to satisy escalating consumer demand or content services. What this
means is that telcos are ooting the bill without reaping the benets.
blogs.terrapinn
.com/telecoms
"Being connected is a basic human right. Connectivity is ast becoming the cornerstone o all businesses, all industries
and all liestyles. Regardless o economic climate, political turmoil or social change, the need to be connected is resilient
to external pressures."
8/22/2019 Telecoms Market Report
5/19
But the telco is fghting back
Far rom out o the race, telcos are recognising that collaborating, rather than competing with OTTs, is the way to win in
this content-hungry environment. OTTs have undeniably captured consumer mindshare and money with their cutting-edge
services that boast inspiring design and advanced usability. Rashid Abdulla, CEO, Batelco argued that telcos do not
have the right DNA to replicate OTTs service creation yet have very tangible assets to remain at the epicenter o the world o
content.
So what are those assets? Telcos own connectivity their network is the gateway to this world o rich multimedia services.
This asset coupled with an unrivalled customer base and advanced billing capabilities, arms telcos with bargaining power to
carve out a more competitive position in the uture.
By backing partnerships with OTT players, rather than seeking to eliminate them, telcos can enjoy an innovative and diverse
product portolio whilst monetizing the data trac on their network through service delivery platorms. They have a strong
hand; they just have to learn how to play it.
blogs.terrapinn
.com/telecoms
Telcos are not in the rontline o revenue streams, but they are in the rontline o investments
Osman Sultan, CEO, du
A win-win with OTTs is
more than possible putting
us on the threshold o
antastic new services
Ross Cormack, CEO, Nawras
8/22/2019 Telecoms Market Report
6/19
blogs.terrapinn
.com/telecoms
Telcos need to exist with a
relevant voice in the new ast
moving digital space
Osman Sultan, CEO, du
The biggest challenge
or operators right now is
creating and maintaining a
relevant relationship with the
customer with services and
experience
Hatem Dowidar, CEO, Vodaone Egypt
History has shown that OTTs
will come and go, whereas
telcos have longevity in the
market
Daniel Ritz, Chie Strategy Ofcer, Etisalat
Group
Operators need to reinvent
themselves
Hisham Akbar, Deputy CEO & COO, Zain
Group
C-Suite insights on re-invention or relevance
With the world o content opening the telco industry to a plethora o new players, telcos have ound themselves ghting or the
customer. Our Telecoms World Middle East 2012 CEO debate revealed that staying relevant to the consumer was ront-o-
mind or those leading the regional telecom industry.
8/22/2019 Telecoms Market Report
7/19
The NetworkThe data explosion rom all these new services is putting immense pressure on the telco network.LTE has emerged as the
champion o networks, capable o managing the exponential growth in data trac.
LTE investment and roll out is well underway in all corners o the world. LTE allows operators to optimise bandwidth on the network
and oset some o the pressure generated by data consumption. LTE can also optimise network costs by eliminating the costs
associated with operating multiple inrastructure sites.
LTE is expected to completely revolutionise customer experience by enhancing the quality and reliability o the network and enabling
real-time streaming and rapid downloads.
LTE is a game changer or operators, who are now armed with uture technology to create next generation services. Investment is
thereore crucial to meeting the rising connectivity demands o GenM. Daniel Ritz, Chie Strategy Ocer oEtisalat Group argued
that regulators cannot step in to nance network investment as it is too dynamic to be regulated.
blogs.terrapinn
.com/telecoms
8/22/2019 Telecoms Market Report
8/19
blogs.terrapinn
.com/telecoms
say that Content Delivery Networks are an essential investment59%
say its important, with only stating this was not a pr ior ity or their business35% 6%
In our recent survey, we asked regional operators which technology investments are vital to successully roll out new services.
stating this was not a priority ortheir business9%
say that LTE is an
essential investment59%say itsimportant,
with only32%
say that WIMAXis an
essential investment
stating this was not a
priority or their business
21% 65%
say its important,
with an outstanding
14%
8/22/2019 Telecoms Market Report
9/19
blogs.terrapinn
.com/telecoms
Our survey suggests:
LTE is a must-have not nice-to-have technology or operators looking to innovate their oering. Given nearly 3/5 o respondents
cited LTE as an essential investment, the Middle East can expect to witness commercial launches and nation-wide roll-out.
With only 6% o respondents not prioritising CDN, it is anticipated that content services will continue to reign consumption on
the network, and this demand or multimedia will only increase. It is also indicative o telcos prioritising user experience o dataconsumption.
WIMAX technology is struggling to attract investment rom Middle East operators, with our survey revealing that over 65% o telcos
are spending their budget elsewhere.
Bringing LTE to market
Rolling out the network is just the beginning. Developing a go-to-market strategy or LTE is crucial to secure ROI on investment,
accelerate uptake and exploit the networks advanced capabilities. When LTE rst exploded onto the scene in Sweden back in 2009,
the availability o LTE devices was limited. With this gradually trending in the right direction, a range o LTE devices now exist to propel
LTE subscriptions.
So how should operators design pricing plans or LTE? Whilst most consumers cant imagine their lives unconnected, operators are
aced with a pricing predicament. Kim Larsen took to the stage at Telecoms World Middle East 2012 to share LTE launch strategy
and ambitions. As the ormer SVP o Next Generation Technologies or Deutsche Telekom, Kim perectly surmised the root o the
LTE tari predicament:
Consumers now take the
internet or granted
Kim Larsen, Director o TechnologyTransormation, Qtel
8/22/2019 Telecoms Market Report
10/19
blogs.terrapinn
.com/telecoms
Consumers buy services, not connectivity. They expect connectivity. Here lies the operator tari challenge. While
LTE provides higher bandwidth and lower latency, which justies a premium oering, it is the LTE services which
determine the subscription rate. The LTE generation o services is set to be dominated by video content. In more
developed LTE markets, in Europe and Asia or example, LTE taris were considerably higher than 3G taris when
initially launched. However, market competition has lowered the premium, where it is anticipate that growingcompetition will erode the tari even urther. Thus Middle East operators need to strategically map out cost and
usage caps which deliver revenues whilst propelling uptake.
So in with the new and out with the old?
While LTE investment and rollout is likely to dominate network innovation over the next 12 months, it is crucial
that operators avoid neglecting legacy networks. LTE reach will be concentrated in urban areas in its early
deployment, thereore maintaining core network architecture is vital to deliver consistent connectivity to all
customers.
8/22/2019 Telecoms Market Report
11/19
Threefold Service
InnovationRetail, wholesale and enterprise services are being injected with innovation. With customers demanding more bespoke, personalized
and interactive services, operators are being pushed to re-design product portolios and set new benchmarks in service creation and
delivery.
Data consumption, digital service demand and the rise o OTTs are irreversible trends that are spinning the telecoms industry into
redesign.
As Martinshared the secrets to creating brand advocacy at Telecoms World Middle East 2012, he touched upon the key capability that
will dene competitive advantage - the need or speed. Getting innovation to market quickly, and re-engineering the process o ordermanagement, will set apart those pioneering the industry to those playing catch up.
Re-inventing Retail
No content service has experienced such phenomenal and rapid growth as the apps oering.
Pioneered by Apple, there is now o rush o device manuacturers, telcos and contentowners seeking to replicate Apples success. The Apps market seemed to appear rom
nowhere. Typical o Apple innovations, they spread like wild re, disrupting business models,
communication and entire industries. With consumers app happy, telcos need to carve out a
relevant position in the app and content ecosystem to thrive, not just survive. Operators oten
nd themselves in the ring line regarding their ability to attract developers and source and
produce engaging multimedia.
blogs.terrapinn
.com/telecoms
Innovation is instantly copied
Martin Lyne, CMO, Nawras
8/22/2019 Telecoms Market Report
12/19
blogs.terrapinn
.com/telecoms
The risk o OTT market entrance is that brands are becoming more relevant to the customer, sidelining the telcos as dumb pipes.
Telcos need to start claiming revenues alongside OTTs and dene a monetisation strategy which delivers their air share o the prize.
User interace design is earning more attention rom operators. OTTs have upped the stakes in interace design, creating one touch
services that prioritise simplicity and user experience. Whilst there is increased technical complexity with new services, this complexity
must be removed rom the user experience, humanising the technology.
Data Dependent Wholesale
Wholesale has never had more opportunity to rival retail in the revenue stakes. While OTTs, content owners and MVNOs might be
challenging retails market position, they are wholesales most lucrative customer.
As capacity markets have become increasingly commoditised, carriers have realise they can no longer rely on the acility leasing
agreement which used to make up their prots. Instead, carriers need to ocus on how they can create bespoke data-driven
services, aligning uture service plans with network innovation to optimise the wholesale portolio.
With CDN spend on the up, carriers are now empowered to adopt a service-orientated business model that capitalizes on content
aggregators. By having a network equipped with enabling platorms to monetise bandwidth, carriers can cash in on data demand.
8/22/2019 Telecoms Market Report
13/19
blogs.terrapinn
.com/telecoms
The Rise o Enterprise
With ICT becoming the cornerstone o all businesses and all industries, the enterprise opportunity is huge or operators.
mHealth, mAdvertising, smart cities, cloud, M2M and managed services are only a ew o those services which are
creating lucrative revenue opportunities or telcos.
Building capability in enterprise solutions will earn operators a competitive advantage, allowing them to create a diverseand protable enterprise portolio with global potential and scale. At Telecoms World Middle East 2012, Sprint shared
LTE service innovations, with M2M at the epicenter o opportunity.
Enterprise will require investment - Investment in knowledge and investment in technology.
The Middle East presents a huge opportunity or
the global M2M market
Ron Jubainville, Head o I nternational Product Marketing, Sprint
Launching venture unds that uel innovation and
create ecosystems or apps, content and enterprise
should be prioritized
Hatem Dowidar, CEO, Vodaone Egypt
8/22/2019 Telecoms Market Report
14/19
Services Survey
We asked regional operators what services they were currently oering, what service they planned to launch and what services
they were not planning to oer.
mCommerce
Consumer Cloud
Enterprise Cloud
mAdvertising
mHealth
M2M
App Store
IPTV
Mobile Gaming
blogs.terrapinn
.com/telecoms
8/22/2019 Telecoms Market Report
15/19
blogs.terrapinn
.com/telecoms
IPTVis currently
oered by over 50%o respondents,
with a urther 33%
planning to launch
IPTV in the next 12
months. With
network innovation
improving live
streaming and
download speeds,
this service is set to
soar.
Consumer Cloud
is on the thresholdo market entry with
62% planning to oer
this service over the
next 12 months.
App Store launch
has received mixedreviews, with 21% o
respondents opting
out o this service.
This is indicative o
operators dabbling
in dierent business
models, whereby
some seek to source
and create apps and
others compete with
an access role.
mHealth is a
growing enterpriseservice with 74% o
respondent either
currently oering or
planning to oer this
service.
M2M has not
gathered as muchmomentum as
initially anticipated,
however with the
LTE device market
fourishing, over 50%
o respondents are
looking to launch this
service over the next
12 months.
8/22/2019 Telecoms Market Report
16/19
Going Global
3%
41%
56%
79%24%
18%
12%
We asked regional operators which regions they thought presented good investment opportunities
blogs.terrapinn
.com/telecoms
The Money on the Map:
The markets which are set to capture more investment
18% Asia-Pacic 24% Central Asia 41% North Arica 56%Arica 12%CIS
3%Latin America 79%Middle East
8/22/2019 Telecoms Market Report
17/19
The Art o Acquisitions:
Many Middle East operators have ound a ooting in new markets, expanding their brand and business into regions that hold great
promise or revenue gain and customer acquisition.
At Telecoms World Middle East 2012, Rashid Abdulla, CEO oBatelco argued that the uture strategic direction is unclear as
operators ace rising pressure rom shareholders to deliver traditional prot margins, which are eroding with the dominance o data
services. Operators have aced gradual decline in revenues due to radical change in consumer communication and the rise o
data trac.
There has been a notable political shit in the Middle East over the last 18 months, which has opened once-closed markets to
investment. With Egypt, Libya, Bahrain, Lebanon, Aghanistan, Iraq and Syria suering rom political turmoil, investment is now
necessary to re-develop these nations through connectivity.
Managing risk, winning licenses and nancing acquisition will be boardroom priorities or telcos looks to expand their ootprint and
capitalize on new markets.
Market competition:Dening ideal market competition was one o the hot topics debates at Telecoms World Middle East 2012. Daniel Ritz, Chie
Strategy Ocer at Etisalat Group argued that 3 to 4 operators allowed or a market to be saturated with healthy competition.
Too many operators overwhelm a market and serve only to damage the nations connectivity needs.
MVNOs are somewhat making a comeback in the Middle East. With most countries having
a limited number o operators, MVNOs can provide customers with an alternative service,
oster a culture o product innovation and create lucrative wholesale opportunities or
existing operators. Regulatory authorities across the region are issuing licenses or MVNO
entry; however the Oman is still the only country in the region that can boast ully operating
MVNOs.
blogs.terrapinn
.com/telecoms
8/22/2019 Telecoms Market Report
18/19
Wed love to hear your
views on all of this...
Click here to leave a comment our blog http://blogs.terrapinn.com/telecoms/
Click here to contribute to our LinkedIn discussion
Click here to ollow us on twitter @telecomblogger
Join the conversation
blogs.terrapinn
.com/telecoms
8/22/2019 Telecoms Market Report
19/19
Recommended