Fixed-mobile Convergence in Middle East and North Africa
Fixed-mobile convergence (FMC) has emerged in some competitive markets as a strategy for operators looking for new sources of growth. It is a way for operators to differentiate, bringing potential benefits from churn reduction, customer acquisition effect, and synergies. Compared to certain markets in Europe, APAC, and North America, MENA has in general seen low levels of FMC activity. However, some markets have already begun the process of convergence, or are showing signs that further development may take place.
In the process of FMC, operators often start by offering price discounts, eventually typically moving to more segmented FMC bundles, with the most advanced operators seeking revenues from adjacent industries. However, the specific offer with which an operator embark upon the path of convergence depends on specific conditions of each market and operator. Operators without fixed infrastructure have also been known to compete in convergence by offering wireless broadband solutions instead of fixed solutions.
In MENA, FMC is still largely nascent and limited to a handful of markets: Bahrain, Egypt, Jordan, Tunisia, and Turkey. In Bahrain, Batelco has begun offering an FMC bundle, which includes an option for the market’s first quadplay offer. In Egypt, meanwhile, Vodafone offers converged bundles under the Red brand, while Orange offers a pick-and-mix approach to convergence. In Turkey, both Turk Telekom and Turkcell offer converged services.
FMC has emerged primarily in mature markets, where competition is intense and ARPUs are often falling. Specifically, FMC has disrupted several markets in Western Europe, North America, and Asia Pacific (e.g., France, Canada, and Singapore). Orange has adopted convergence as a central strategy in some of its markets. France and Spain, in particular, have become highly converged.
The report Fixed-mobile Convergence in Middle East and North Africa provides an overview of the state of fixed-mobile convergence (FMC) in the MENA region. The report draws from examples of fixed-mobile convergence from operators around the world to understand the market conditions which lead to convergence.
In particular, this report provides the following -
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