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Iran Telecom Market Keynotes, Q2 2011
Teyf Sharif Consulting, July 2011
Iran telecom market is rapidly improving, thanks to liberalization and privatization plans. Iran has now one of the most developed fixed line networks in the region while mobile networks is also being ubiquitously available by different network expansion plans and entry of new players in the market.
A healthy growth is expected in Iran's telecom sector, namely thanks to the effects of economic growth, rising affordability of telecom services, and increasing coverage in the country. Iran with 60% population under 30 is one of the youngest countries in the world while bringing new potentials and high demands in the Iranian telecom sector.
Iran with 27.5% internet penetration by 2Q-2009, is becoming more and more prevalent and it is predicted that broadband internet will also show significant growth. The market of DSL services in Iran has shown a great potential and a high growth in recent years. Rapid growth is expected in residential sector as the number of residential subscribers has increased twice since 2008. There are currently 2 active WiMAX operators in Iran while 4 other operators have just got the license and planning to provide such services in different regions of the country.
Some other keynotes of the present report:
- Telecommunications & Media in Iran are regulated by the Ministry of Information and Communication Technology and the Islamic Republic of Iran Broadcasting (IRIB), respectively
- TCI has historically dominated the industry as a monopoly and could successfully establish a telecommunications infrastructure while lack of competition hindered quality, innovative and affordability efforts
- MCI, the state owned incumbent, dominates the market while MTN/Irancell as 2nd mobile operator, entered the market in 2006, had great progress since then
- Service revenue in Iran telecommunications market is the fastest growing in the Middle East region while mobile services will show the greatest growth in dollar terms
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