Gulf fixed-line users switch to cellphones

Dubai: The Gulf region registered a decline of 6.9 per cent in fixed line subscribers from 5.8 million subscribers in 2006 to 5.4 million subscribers in 2007 on account of increasing shift of customer base to the more convenient mobile voice services, according to a report by Global Investment House.

"Increasing disposable income and convenience of use is encouraging cellular penetration in the region. Other important contributing factor to the increased cellular penetration is the relaxation in telecom regulations allowing second or third player in each country," the report said.

The Gulf region registered a five-year (2002-07) growth in cellular subscribers at a compound annual growth rate of 37.6 per cent. The Middle East and North Africa (Mena) region has seen the highest worldwide five-year (2002-07) growth in cellular subscribers at a compound annual growth rate of 52.9 per cent against the worldwide increase of 23.3 per cent.

With the country-wise cellular markets reaching or crossing the 100 per cent penetration levels within the Gulf region, all the six member countries registered double digit compound annual growth rate in the five-year period.

In 2007, Asia and Mena region were the major growth contributors with year-on-year growth rates of 36.8 per cent and 33.9 per cent respectively. The UAE topped the list of high growth contribution with a year-on-year growth rate of 34.6 per cent with its internet user base increasing from 1.7 million in 2006 to 2.3 million in 2007.

The next highest contributor was Saudi Arabia with 31.9 per cent year-on-year increase in the internet users' base from 4.7 million in 2006 to 6.2 million in 2007.

The high proportion of youth in the demographics, with 55 per cent to 65 per cent of the total population under the age of 30 is driving the internet usage in the Gulf region.

The analysis of five-year annual growth rate in broadband subscribers worldwide indicates that the Gulf region is amongst the top three growth regions in the world. The global broadband subscriber base increased by 38.9 per cent.

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