Fiber Deployment to Drive Healthy Growth in UAE Telecom Sector and Pay TV Adoption

The leading research firm, Pyramid Research has recently come up with the report of its research relating to UAE’s telecommunication sector for the upcoming years.

The report, titled, “UAE: Fiber Deployments Will Boost Uptake of Pay-TV and VoIP offers a precise profile of the country's telecommunications, media, and technology sectors” examines the various aspects of the country’s nationwide fiber deployment initiative and its possible outcomes and effects in the industry.

In its report, Pyramid Research predicted that Fixed broadband services will be a significant source of growth in the UAE over the next five years. According to the research firm, the sector is going to generate $1.01 billion in 2015, up from $695 million in 2010. The study attributes this tremendous growth to two factors. The first relates to increasing broadband penetration and the second relates to the switch to a nationwide all-fiber network by 2011.

The fiber deployment is also predicted to change the television entertainment scenario, as the use of advanced VAS will make IPTV (News - Alert) experience more attractive for the viewers than those of satellite operators.

Boost to broadband revenue

“As well as providing a boost to broadband revenue, the change will lead to growth in pay-TV adoption, as operators use advanced VAS to make IPTV services significantly more attractive than those of satellite operators. As broadband penetration rate increases, it becomes critical that operators provide VAS in order to raise their current monthly ARPS. The next major opportunity for vendors will be LTE (News - Alert), which we expect both Etisalat and Du to deploy within the next three years,” Barhoush observed.