Boston, MA -- (SBWIRE) -- 01/19/2015 -- The biggest growth area in Saudi Arabia's telecoms market is high-value services for corporate and individual customers. This view is supported by operators' fi nancial and operational results which show a strong uptake of next generation mobile and wireline data services as well as convergence services. Mobile revenues, meanwhile, are likely to come under further pressure following the entry of the first mobile virtual network operator ( MVNO ) to the country. This is likely to erode ARPU's of the established operators further.

Key Data

- Mobile subscriptions increased by 3.2% q-o-q, but decreased 1.4% y-o-y in Q214, according to regulator data.

- Fixed-line subscriptions declined 2.9% q-o-q in Q214 extending the declines seen in FY13.

- Dedicated mobile broadband accounts for the largest share of broadband subscriptions and continues to demonstrate robust growth. Total broadband subscriptions grew by 16.3% q-o-q in Q214.

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Risk/Reward Index

Saudi Arabia dropped one place to third position in BMI's Risk/Reward Index table for the Middle East and North Africa (MENA) region in our Q414 update. This was due to a downgrade of its industry rewards score owing to the continued contraction of the mobile market. The impact of this decline is however offset by strong subscriptions growth in the broadband sector and a relatively high ARPU.

Key Trends And Developments

The biggest development in the previous quarter has been the entry of the first MVNO to the Saudi Arabian mobile market. On September 30, Virgin Mobile Middle East and Africa (VMMEA), part-owned by Virgin Group, launched telecoms services in Saudi Arabia. The operator has launched two brands, dubbed Virgin Mobile, aimed at the youth market, and Friendi Mobile, targeting Saudi Arabia's expatriate workers. This is likely to be followed by the entry of Lebara Mobile before the end of 2014.

Mobily Ventures is targeting start-ups in areas such as e-commerce, mobile financial services...

The Saudi Arabia Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Saudi Arabia's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's Saudi Arabia Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Saudi Arabia.

Key Benefits

- Benchmark BMI's independent telecoms industry forecasts for Saudi Arabia to test other views - a key input for successful budgeting and strategic business planning in the Saudi telecoms market.

- Target business opportunities and risks in Saudi Arabia's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia.

- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

Business Environment Rankings

BMI's Telecommunications Business Environment Rankings provides a country-comparative Risk-Reward Rankings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.

The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

- Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.

- Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.

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