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UAE Telecom Market

UAE Telecom Market

The United Arab Emirates (UAE) had 􂀀 million mobile subscribers as of 2014, a 􂀀% increase compared to the previous year.

The UAE telecom market generated $􂀀 billion and the sector contributed to 􂀀% of the national output in 2014.

Despite the fact that both the mobile network operators in the UAE, Etisalat and du, are partly owned by the government, competition in the UAE telecom market is fierce.

Currently, Etisalat controls % of the UAE’s mobile subscriber base while du controls the remaining 􂀀%.

Both operators, Etisalat and du, have already launched 4G services.

The fixed-line market reached 􂀀 million subscribers in 2014 and yielded about $􂀀 billion in revenue.

Currently, Etisalat controls 􂀀% of the fixed-line market. However, in 2014 Etisalat’s fixed-line market subscriber numbers declined by 􂀀%.

During 2014 to 2019, mobile broadband is expected to experience the highest growth among all telecom segments at a compound annual growth rate (CAGR) of 􂀀%.

About this report

Research Overview

This Frost & Sullivan research service on the United Arab Emirates (UAE) telecom market provides detailed revenue forecasts, drivers and restraints as well as market shares and competitive analyses of participants from 2013-2019. In addition, the study analyses the profiles of key operators in the industry. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments:

mobile
fixed line
broadband

Market Overview

Broadband to drive the UAE telecom market

Sustained growth of its customer base, rising consumer purchasing power, and availability of high-end smartphones is fuelling the telecommunications market in UAE. Etisalat and du, the two mobile network operators (MNOs) in the country, are particularly focused on the mobile broadband and enterprise communications segments, which show the highest potential for growth. Although both operators have already launched 4G services, 3G connections are projected to generate more revenue in the broadband segment in the next five years.

Even though the government partly owns Etisalat and du, the competition in the UAE market is fierce. Aggressive marketing campaigns and competitive pricing will be essential to gain broadband market share. While intense demand has allowed MNOs to keep fixed broadband prices relatively high, decreasing prices will also enable them to meet margins as usage continues to grow. Further, MNOs will concentrate on value-added services (VAS) such as mobile content development and enterprise-focused services such as managed services and cloud computing to gain additional revenue.

When it comes to core segments such as fixed-line services, Internet and cable TV, there is no competition between the two MNOs as du's services are restricted to newly-developed areas of Dubai. Its focus is on retaining clients and increasing the post-paid subscriber base as these clients consume more than double the number of minutes used by pre-paid subscribers. Etisalat's attention over the next two years will be on retaining its leading position in the domestic market. This effort will be bolstered by the UAE government giving priority to the development of IT and telecommunication over the next five years.


  • Executive Summary
    • Key Findings
  • Economic Outlook
    • Table Gross Domestic Product (GDP) and Growth Rate, UAE, 2011-2020
  • Telecom Market Outlook
    • Table Telecom Market: Indicators, UAE, 2014
    • Regulatory Framework
    • Telecom Infrastructure in UAE
    • Telecom Timeline
    • Drivers and Restraints
    • Drivers Explained
    • Restraints Explained
  • Market Sizing and Forecasts
    • Market Engineering Measurements
      • Table Telecom Market: Market Engineering Measurements, UAE, 2014
    • Revenue Forecast
      • Table Telecom Market: Revenue Forecast, UAE, 2013-2019
    • Revenue Forecast Discussion
    • Mobile Segment-Subscriber Forecast and Penetration Rate
      • Table Telecom Market: Mobile Subscriber Forecast and Penetration Rate, UAE, 2013-2019
    • Mobile Segment-Subscriber Forecast by Operator
      • Table Telecom Market: Mobile Subscriber Forecast by Operator, UAE, 2013-2019
    • Mobile Segment-Pre-paid Versus Post-paid
    • Mobile Segment-Revenue Forecast by Operator
      • Table Telecom Market: Mobile Revenue Forecast by Operator, UAE, 2013-2019
    • Fixed-line Segment-Subscriber Forecast by Operator
      • Table Telecom Market: Fixed-line Subscriber Forecast by Operator, UAE, 2013-2019
    • Fixed-line Segment-Revenue Forecast
      • Table Telecom Market: Fixed-line Revenue Forecast, UAE, 2013-2019
    • Broadband Segment-Subscriber Forecast and Penetration Rate
      • Table Telecom Market: Broadband Subscriber Forecast and Penetration Rate, UAE, 2013-2019
    • Broadband Segment-Subscriber Forecast and Penetration Rate Discussion
    • Broadband Segment-Revenue Forecast
      • Table Telecom Market: Broadband Revenue Forecast, UAE, 2013-2019
  • Competitive Environment and Competitor Analysis
    • Competitive Environment
    • Service Roadmap-Operators
    • Competitor Analysis-Etisalat
    • Competitor Analysis-du
  • Opportunity Analysis
  • Industry Best Practices
  • Conclusions

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