Fixed-mobile Convergence in Middle East and North Africa

  • ID: 4376049
  • Report
  • Region: Africa, Middle East, North Africa
  • 32 pages
  • GlobalData
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FEATURED COMPANIES

  • Batelco
  • KPN
  • Mobily
  • Orange
  • Plus Poland
  • Turk Telekom
  • MORE
Fixed-mobile Convergence in Middle East and North Africa

Summary

Fixed-mobile convergence (FMC) has emerged in some competitive markets as a strategy for operators looking for new sources of growth. It is a way for operators to differentiate, bringing potential benefits from churn reduction, customer acquisition effect, and synergies. Compared to certain markets in Europe, APAC, and North America, MENA has in general seen low levels of FMC activity. However, some markets have already begun the process of convergence, or are showing signs that further development may take place.

In the process of FMC, operators often start by offering price discounts, eventually typically moving to more segmented FMC bundles, with the most advanced operators seeking revenues from adjacent industries. However, the specific offer with which an operator embark upon the path of convergence depends on specific conditions of each market and operator. Operators without fixed infrastructure have also been known to compete in convergence by offering wireless broadband solutions instead of fixed solutions.

In MENA, FMC is still largely nascent and limited to a handful of markets: Bahrain, Egypt, Jordan, Tunisia, and Turkey. In Bahrain, Batelco has begun offering an FMC bundle, which includes an option for the market’s first quadplay offer. In Egypt, meanwhile, Vodafone offers converged bundles under the Red brand, while Orange offers a pick-and-mix approach to convergence. In Turkey, both Turk Telekom and Turkcell offer converged services.

FMC has emerged primarily in mature markets, where competition is intense and ARPUs are often falling. Specifically, FMC has disrupted several markets in Western Europe, North America, and Asia Pacific (e.g., France, Canada, and Singapore). Orange has adopted convergence as a central strategy in some of its markets. France and Spain, in particular, have become highly converged.

The report "Fixed-mobile Convergence in Middle East and North Africa" provides an overview of the state of fixed-mobile convergence (FMC) in the MENA region. The report draws from examples of fixed-mobile convergence from operators around the world to understand the market conditions which lead to convergence.

In particular, this report provides the following:
  • Provides an overall introduction to FMC and a comparison of FMC development in different regions. It offers an analysis of the pathway in which operators converge, and examines the benefits of convergence, with examples from operators.
  • Provides an overview of the MENA region in terms of FMC, and analyzes the conditions for those markets which have already seen convergence, as well as those who have not. Looking at 11 MENA markets in particular, the report provides and in-depth comparison of different conditions relevant to FMC development.
  • Dives into three case studies of fixed-mobile convergence in MENA: Bahrain, Egypt, and Turkey.
Companies mentioned in this report: Orange, Proximus, KPN, MEO, PCCW, Plus Poland, Ooredoo, Turk Telekom, Turkcell, Batelco, Vodafone, Mobily, Zain, Comcast

Scope
  • Compared to Europe, where some operators have pursued fixed-mobile convergence as their central strategy, MENA has seen relatively few cases of convergence, and all of them relatively recent or at an early stage.
  • The state of competition, regulation, and base of subscribers bi-equipped for both fixed and mobile services are key for the development of convergence.
  • There is scope for more fixed-mobile convergence development in MENA. However, the feasibility and entrance point of convergence depends on the unique conditions of each market and the profile of each operator.
Reasons to buy
  • This Insider Report provides a comprehensive examination of the market conditions and business models for fixed-mobile convergence, to help executives fully understand market dynamics, determine what works and what doesn’t, formulate effective product development plans and optimize resource allocation and return on investments.
  • Three case studies illustrate the findings of the report, providing insight into particular situations in the fixed-mobile market in MENA; this will help the reader understand both the challenges confronted in the real world and the strategies employed to overcome those challenges.
  • The report discusses concrete opportunities in fixed-mobile convergence in MENA, providing a number of actionable recommendations for operators.
  • Eleven MENA markets are compared in terms of market competition, regulation, and subscriber base; providing an overview of the conditions facilitating and hindering convergence for the region.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Batelco
  • KPN
  • Mobily
  • Orange
  • Plus Poland
  • Turk Telekom
  • MORE
Executive summary
Section 1: Introduction to fixed-mobile convergence (FMC)
Section 2: MENA market overview
Section 3: Case studies
Section 4: Key findings and recommendations

List of Tables
Exhibit 1: Common convergence strategies
Exhibit 2: FMC households penetration by region
Exhibit 3: Generic phases of market development and examples of product bundle
Exhibit 4: Typical conditions for rapid convergence market development
Exhibit 5: Plus Poland mobile + mobile broadband/pay-TV
Exhibit 6: KPN Netherlands FMC benefits
Exhibit 7: FMC effect on Portugal Telecom
Exhibit 8: Expected and actual OPEX and CAPEX range synergy from integrating fixed and mobile networks
Exhibit 9: Markets with converged services in MENA
Exhibit 10: Typical conditions for FMC development in MENA
Exhibit 11: Competition in MENA mobile markets 2016
Exhibit 12: FMC regulation in MENA
Exhibit 13: Household penetration of fixed-mobile bi-equipped accounts in MENA in 2016
Exhibit 14: FMC prospects in MENA
Exhibit 15: FMC bundles in Egypt
Exhibit 16: Egypt mobile subscriber market shares
Exhibit 17: Batelco SmartSaver bundle
Exhibit 18: Bahrain mobile subscriber market shares
Exhibit 19: FMC bundles in Turkey
Exhibit 20: Turkey mobile subscriber market shares

List of Figures
Exhibit 1: Common convergence strategies
Exhibit 2: FMC households penetration by region
Exhibit 3: Generic phases of market development and examples of product bundle
Exhibit 4: Typical conditions for rapid convergence market development
Exhibit 5: Plus Poland mobile + mobile broadband/pay-TV
Exhibit 6: KPN Netherlands FMC benefits
Exhibit 7: FMC effect on Portugal Telecom
Exhibit 8: Expected and actual OPEX and CAPEX range synergy from integrating fixed and mobile networks
Exhibit 9: Markets with converged services in MENA
Exhibit 10: Typical conditions for FMC development in MENA
Exhibit 11: Competition in MENA mobile markets 2016
Exhibit 12: FMC regulation in MENA
Exhibit 13: Household penetration of fixed-mobile bi-equipped accounts in MENA in 2016
Exhibit 14: FMC prospects in MENA
Exhibit 15: FMC bundles in Egypt
Exhibit 16: Egypt mobile subscriber market shares
Exhibit 17: Batelco SmartSaver bundle
Exhibit 18: Bahrain mobile subscriber market shares
Exhibit 19: FMC bundles in Turkey
Exhibit 20: Turkey mobile subscriber market shares
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  • Orange
  • Proximus
  • KPN
  • MEO
  • PCCW
  • Plus Poland
  • Ooredoo
  • Turk Telekom
  • Turkcell
  • Batelco
  • Vodafone
  • Mobily
  • Zain
  • Comcast
Note: Product cover images may vary from those shown
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