Developing market experiences steady growth
Yemen is very much the poorest country in the Middle East. Heavily dependent on declining oil production, the economy faces impending hardship given forecasts of reserve depletion. Adding to its difficulties are heavy subsidies for items such as fuel and acute water shortages.
Yemen's telecom sector is representative of the growth opportunities that abound in such a developing market. Fixed line subscriptions are increasing, with a penetration rate of less than 5% indicating significant room for growth. The national telecom network has been modernised, with most major and secondary cities were linked with fibre optic cable and further investments made to increase international Internet capacity. Given that over 60% of the population lives in rural areas a significant amount of fixed line investment has been in the form of wireless local loops based on a variety of technologies.
Although penetration levels are low, Internet usage in Yemen is increasing. Yemen's mobile operators have emerged as viable infrastructure-based competitors to the fixed line incumbent, TeleYemen, given the speeds offered, reach of their networks, developed product distribution channels and established customer base and brand. However without introduction of competing 3G services the capability of the mobile network operators to offer a competitive broadband product to the incumbent is limited.
Mobile services are now provided by four operators: YemenMobile, SabaFon, MTN Yemen and Y Telecom. Mobile penetration levels are steadily increasing and current penetration levels indicate there is much room for growth. Yemen's mobile data market is in the nascent stages of development, with mobile messaging and mobile Internet access offered although serious competition is unlikely until the GSM operators are permitted to launch 3G services.
Key telecom parameters 2012; 2014
Sector | 2012 | 2014
Subscribers to telecoms services (million):
Fixed Broadband | 0.2 | 0.6
Fixed-line telephony | 1.1 | 1.2
Mobile phone | 13.9 | 17.4
Companies covered in this report include:
TeleYemen, Public Telecommunications Corporation (PTC), Yemen General Corporation for Radio and Television (YGCRT), Yemen Mobile, SabaFon, MTN Yemen, Y Telecom.
This report provides a comprehensive overview of trends and developments in Yemen's telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors.
Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Mobile voice and data markets;
Convergence and digital media;
Broadband subscriber forecasts to 2023;
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