Lewes, DE -- (SBWIRE) -- 10/29/2015 -- Saudi Arabia's telecoms market is attractive due to high spending on telecoms services and its large population compared to the rest of the GCC. However the mobile market is now nearly saturated and leading operators STC and Mobily are increasingly focused on their premium strategies, expanding their fibre and converged wireline service offerings, and diversification into content and e-commerce through their venture capital subsidiaries. Third operator Zain's value offerings are gaining traction among lower cost customers, while the entry of two MVNOs in late 2014 is putting additional competitive pressure on all three MNOs.

Key Data
Mobile subscriptions continue to fluctuate between 51-53mn, a trend which will continue amid market saturation and the seasonal impact of the Hajj pilgrimage.

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Telecom operators du and Etisalat are anticipated to implement fixed network sharing systems by the end of 2015, something that should curb their monopoly powers in Dubai and the rest of the UAE. New subscription growth in the mobile market began to taper off towards the end of 2014 and has slowed in early 2015, and it is becoming clear that growth opportunities lie in the mobile and wireline data markets. Both data markets represent strong opportunities across the consumer and enterprise segments. Publisher holds the view that competition at the national level will be a critical component in capturing these opportunities.

Key Data
- The mobile market grew by 1.4% y-o-y in Q2 2015 to reach 16.72mn subscribers, but this represented a q-o-q decline of 0.8%.
- Etisalat data suggest that broadband subscribers grew to 1.03mn in Q2 2015.

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The UK mobile market stands on the threshold of a wide-scale consolidation as deals between Bt and EE, and Hutchison and O2 remain in the works. Furthermore, the Vodafone and Liberty Global deal may lead to further consolidation shall the both parties come to a final agreement. Consolidation measures will lead to fiercer competition and improved LTE development as growth in the UK telecoms sector will be driven by a higher uptake of advanced data services and quad-play technologies.

Key Data
- The UK mobile market grew 0.2% quarterly in Q215, as Hutchison and O2 added new clients.
- The share of non-DSL connections (including cable and FTTx) as part of the total fixed broadband base increased to 34.5% at the end of 2014, as users migrate to newer technologies and operators continue their investments to improve coverage.

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