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High Fixed-Wire Broadband In UAE
Published Oct 1, 2009
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Fixed-wire broadband adoption is high in the UAE, with a 50 per cent penetration in households, largely due to the deployment of optical fibre networks in new Dubai and Abu Dhabi, a new report has revealed.
According to analysts, the UAE, Qatar and Bahrain have the highest broadband penetration levels in the region.
"The UAE can also be compared to developed markets because of the high GDP per capita and increasing levels of broadband adoption. The laying of fibre networks will also help the market grow further," said Santino Saguto, partner and managing director at global management consulting firm Value Partners.
As per data released by research firm Gartner, over the next five years, emerging markets (China, India, Indonesia, Malaysia, the Philippines, Thailand, Latin American countries, Eastern Europe, the Middle East and Africa) will collectively provide twice as many new consumer broadband connections as mature markets: 135 million versus 62 million connections, respectively.
While many mature markets will see a slowing down of broadband rates as connectivity reaches saturation, many emerging markets are still in the early stages of broadband deployment and will see rapid growth in adoption rates.
However,despite the significant growth in connections in emerging markets, Gartner analysts, said households in emerging markets will continue to outnumber those in mature markets by four to one.
Consequently, it is unlikely that broadband household penetration in emerging markets will catch up with mature markets within the next 10 years, and Gartner estimates that the digital divide will remain in the 50 to 54 per cent range for the foreseeable future.
Mathew Reed, senior analyst at telecom research firm Informa, said: "The strongest growth in broadband will be in emerging markets rather than developed. In a large part, this is simply because of the low current penetration of broadband in emerging markets. Wireless technologies will account for a substantial part of broadband connections in emerging markets because fixed networks are often sparse in emerging markets and it is cheaper and more practical to build wireless networks".
Countries such as Oman and Jordan still have a lot of catching up to do in terms of broadband penetration, and analysts said these markets are still on dial up internet connections.
"In countries where broadband penetration is low, a large number are considering mobile and wireless technologies," said Saguto.
In 2007 and 2008, the Middle East and Africa (Mena) boasted the highest broadband subscription growth rates in the world.
Broadband subscriptions in Mena grew 115 per cent and 94 per cent respectively in 2007, a significant lead over the next fastest growing region, Eastern Europe, with 55 per cent.
The largest broadband subscription bases in the Middle East and North Africa are in Saudi Arabia, Egypt, the UAE, Algeria, Morocco and Iran. These six between them represented 79 per cent of the Mena's total broadband subscriptions.
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VMD - [Virtual Marketing Department]
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