Market Trends of GCC Telecom Industry
Mobile Network is Expected to Drive the Market
- Saudi Arabia, the United Arab Emirates, and Oman, among other countries, benefit from a robust infrastructure. To continuously extend their smart cities, the main emphasis is expected to be on envisioning and innovating technology-driven development. In these countries, the population spends most of their time using social and communication apps. Businesses connect with their customers in countless ways, given how frequently and intensely they use their smartphones. Such factors are boosting smartphone adoption in the country.
- In the United Arab Emirates, three companies with unified licenses presently hold a significant market share: Mobile Telecommunication Company Saudi Arabia, Etihad Etisalat Company, and Saudi Telecom Company (STC).
- Other internet service providers (ISPs), mobile virtual network operators (MVNOs), and fixed-line service providers are also present in the market. The creation of a transparent, competitive market that keeps up with advanced infrastructure and technologies has been made possible in large part by the government.
- Moreover, companies like e& Etisalat and Saudi Telecom Company (STC) are key players, providing mobile services to meet the rising demand for data, voice, and messaging. These companies continuously innovate to offer competitive pricing, better coverage, and improved services to attract and retain customers in this expanding market. The emerging players and advancements in technology also contribute to the dynamic landscape of the GCC telecom industry.
- In February 2024, Power International Holding (PIH) reached an agreement to acquire Mobile Telecom Services (MTS) in Kazakhstan. MTS is currently owned by Kazakhtelecom, the National Telecommunications Company.
- In Oman, the mobile ecosystem is transforming at an ever greater scale as 5G technologies become available in the market. New capabilities will be introduced by 5G that enable operators to develop new use cases, applications, services, or revenue streams in consumer, business, and other sectors and markets.
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Saudi Arabia is Expected to Witness Significant Growth
- As part of the 2030 Vision's National Transformation Program, the Saudi Ministry of Communications and Information Technology issued policies to encourage the rollout of FTTH ultra-fast broadband networks. The government has subsidized telecom companies to install fiber in underserved areas.
- The Saudi Data and Artificial Intelligence Authority wants to establish Saudi Arabia as a global provider of technology by developing a data and AI-driven economy. The country has made some investments in artificial intelligence, and the government is dedicated to transforming the nation digitally. The investments are primarily driven by local sources, particularly the nation's sovereign wealth fund.
- The major mobile service providers, Saudi Telecom Company (STC), Zain, and Mobily, also continued 5G expansion programs, thus driving the demand for effective, low latency, and high bandwidth mobile data and voice services in Saudi Arabia.
- In April 2024, Saudi Arabia’s sovereign wealth fund, The Public Investment Fund (PIF), signed an agreement with mobile network operator Saudi Telecommunications Company (stc Group) for PIF to acquire a 51% stake in Telecommunication Towers Company (TAWAL) from stc Group.
- As per the Communications, Space & Technology Commission, there is a substantial increase in internet speed in Saudi Arabia, from 96.4 Mbps in 2021 to 153.1 Mbps in 2023, which has catalyzed significant growth in the telecom market. This boost enables faster data transmission, enhancing user experience and facilitating the adoption of bandwidth-intensive services like streaming and cloud computing. As a result, telecom providers are witnessing heightened demand for high-speed internet packages, driving competition and innovation in the market.
- Overall, this growth is led by the telecom, finance, government, and oil/gas sectors. Aggressive IT projects to modernize the Saudi Arabian government's IT infrastructure, including an e-government initiative and the telecom industry's liberalization, are increasing competition, service levels, and usage.
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