Broadband in the MENA Region - Trends, Opportunities, and Challenges

Demand for broadband is growing in the MENA region, and there are undoubtedly numerous opportunities for telecommunications operators to capture a share of the market.

Since 2003, the broadband environment in the Middle East and North Africa (MENA) has experienced rapid changes. Market liberalization, increased competition, and the introduction of new network technologies are all increasing consumer demand for broadband access. In 2006, most MENA countries experienced double- and even triple-digit growth in the number of broadband subscribers. As a result, there are significant opportunities for telecommunications operators to tap into this potential and increase their revenues and bottom line margins. At the same time, however, operators face difficult marketing, technical, and operational decisions.

In addition to the factors above, greater availability of and demand for digital content, a burgeoning youth market, and the increase in prosperity in the region are also significant drivers behind the observed boost in demand for broadband. This demand seems set for continued growth as more countries in the region move toward a competitive structure and as advancements in technology make it more possible to provide high-speed broadband in an economic manner.

However, the success of regional telecommunications operators in capturing this demand will depend on key marketing, technology, and customer service strategies and decisions that they will need to adopt. The broadband environment is changing, and operators will face challenges in finding the right answers to complex service differentiation questions, in selecting the most favorable network technology options, and in building the optimal customer service model.

Booz Allen Hamilton's Jad Hajj, Hilal Halaoui, Ghassan Hasbani, and Karim Sabbagh are the authors of "Broadband in the MENA Region — Trends, Opportunities, and Challenges."

study posted January 14, 2008