Cellular Rates in the Arab World: A Regional Comparison 2011

1.
Cellular Rates in the Arab World:
A Regional Comparison
Arab Advisors Group
Strategic Research Service
November 2011
Analyst: Noura Abdulhadi
Majd Al Amarin
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2. Cellular Rates in the Arab World: A Regional Comparison
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3. Cellular Rates in the Arab World: A Regional Comparison
Table of Contents
Section I: Introduction .................................................................................. 1
Section II: Executive Summary ..................................................................... 2
Section III: General Comparisons .................................................................5
GDP per Capita ............................................................................................5
Exchange Rates ...........................................................................................7
Tax Rates ...................................................................................................8
Regulatory Landscape ..................................................................................9
Section IV: Regional Cellular Offers and Rates ............................................ 10
Rates and Tariffs ....................................................................................... 13
A. Postpaid Offers ........................................................................................... 14
Postpaid Connection Fees............................................................................ 14
Postpaid Peak and Off-Peak Minute Rates ...................................................... 17
Postpaid Minute Rates and Relative Pricing Status .......................................... 20
Postpaid Average Revenue Per Minute (ARPM): The Case of Morocco and Jordan. 22
Postpaid Peak and Off-Peak Minute Rates (March 2010 vs. September 2011) ..... 23
B. Prepaid Offers ............................................................................................. 26
Prepaid Connection Fees ............................................................................. 26
Prepaid Peak and Off-Peak Minute Rates ....................................................... 30
Prepaid Minute Rates and Relative Pricing Status ............................................ 33
Prepaid Average Revenue Per Minute (ARPM): The Case of Morocco and Jordan .. 35
Prepaid Peak and Off-Peak Minute Rates (March 2010 vs. September 2011) ....... 36
Prepaid Cards’ Validity Periods ..................................................................... 38
Section V: Cellular Billing Methods .............................................................. 40
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4. Cellular Rates in the Arab World: A Regional Comparison
List of Exhibits
Exhibit 1: Regional cellular rates comparison..................................................... 4
Exhibit 2: Regional GDP per capita comparison (2010) ...................................... 5
Exhibit 3: Exchange rates as of October 12, 2011 .............................................. 7
Exhibit 4: Tax rate applied on cellular rates in the Arab World (October 2011).. 8
Exhibit 5: Cellular market status (October 2011) ............................................... 9
Exhibit 6: Postpaid and prepaid plans by country (September 2011) ............... 10
Exhibit 7: Postpaid and prepaid plans by cellular operators (September 2011)11
Exhibit 8: Postpaid average connection fees, GDP per capita and relative pricing
status ......................................................................................................... 14
Exhibit 9: Minimum and maximum postpaid connection fees ........................... 16
Exhibit 10: Postpaid average peak and off-peak minute rates.......................... 18
Exhibit 11: Postpaid average peak minute rates (US$) .................................... 19
Exhibit 12: Postpaid average off-peak minute rates (US$) ............................... 19
Exhibit 13: Postpaid average minute rates (peak and off-peak), GDP per capita
and relative pricing status ......................................................................... 20
Exhibit 14: Morocco’s and Jordan’s simple postpaid average minute rates (peak
and off-peak) and postpaid ARPM .............................................................. 22
Exhibit 15: Postpaid average peak and off-peak minute rates (March 2010 vs.
September 2011) ....................................................................................... 23
Exhibit 16: Prepaid average connection fees .................................................... 26
Exhibit 17: Prepaid average connection fees including credit (US$) ................ 27
Exhibit 18: Prepaid average connection fees excluding credit (US$) ................ 27
Exhibit 19: Prepaid average connection fees (excluding credit), GDP per capita
and relative pricing status ......................................................................... 28
Exhibit 20: Minimum and maximum prepaid connection fees ........................... 29
Exhibit 21: Prepaid average peak and off-peak minute rates ........................... 31
Exhibit 22: Prepaid average peak minute rates (US$) ...................................... 32
Exhibit 23: Prepaid average off-peak minute rates (US$) ................................ 32
Exhibit 24: Prepaid average minute rates (peak and off-peak), GDP per capita
and relative pricing status ......................................................................... 33
Exhibit 25: Morocco’s and Jordan’s simple prepaid average minute rates (peak
and off-peak) and prepaid ARPM ............................................................... 35
Exhibit 26: Prepaid average peak and off-peak minute rates (March 2010 vs.
September 2011) ....................................................................................... 36
Exhibit 27: Prepaid recharge cards’ validity and grace periods ........................ 39
Exhibit 28: Split of operators according to billing methods .............................. 40
Exhibit 29: Billing methods adopted by cellular operators ............................... 41
Exhibit 30: Postpaid and prepaid billing methods used by cellular operators ... 42
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5.
This report has been delivered to clients as part of the subscription to the Arab Advisors Group Strategic Research Service
to be used exclusively by its employees