Fixed broadband services to generate Dh3.7b by 2015

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Dubai: Fixed broadband services will be a significant source of growth in the UAE over the next five years, generating $1.01 billion (Dh3.7 billion) in 2015, up from $695 million in 2010, due to both increasing broadband penetration and to the switch to a nationwide all-fibre network by 2011, according to a new report from Pyramid Research.

Fibre deployment will boost uptake of Pay TV and VoIP (Voice over Internet Protocol) offers a precise profile of the country's telecommunications, media, and technology sectors, the researchers said. The survey provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies.

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 technology to make IPTV services significantly more attractive than those of satellite operators," says Barhoush.

As broadband penetration rate increases, it becomes critical that operators provide modern technology in order to raise their current monthly revenue. The next major opportunity for vendors will be LTE, which we expect both etisalat and du to deploy within the next three years.

The fastest significant growth segments will be broadband internet and mobile data, although mobile voice will remain the single largest contributor to total revenue. A key change over the next five years is the switch from copper to fibre fixed line infrastructure that is currently under way and due to be completed by 2011. As well as providing a boost to broadband revenue, the change will enable significant growth in the Pay TV and fixed VoIP sectors for the first time.

The UAE has long been one of the world's leaders in mobile penetration, reaching 196 per cent by end of 2009. This high adoption is mainly due to the transient nature of the UAE's population — 80 per cent are expatriates on short-term contracts — and to its role as a regional business and recreational hub, which results in very large numbers of travellers.