telecommunications price benchmarking for arab countries 2010 · 2020. 10. 5. · for arab...
TRANSCRIPT
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www.strategyanalytics.com © Teligen, Strategy Analytics Ltd, 2010. All rights reserved.
Telecommunications
Price Benchmarking
for Arab Countries 2010
Report from the AREGNET Price Benchmarking Study
Prepared by:
Name Halvor Sannæs
Position Director Tariff Services
Tel +47 3702 3400
Email [email protected]
August 2010
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Page 2
Acknowledgements
Teligen wishes to thank:
– The AREGNET members for feedback and support in the collection
of tariff information and to TRA Bahrain for commissioning and
coordinating the study on behalf of AREGNET
– The operators who have contributed with additional tariff
information
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Page 3
Contents of this report
Background on this study and the basket concept 4
Results from the PSTN basket 6
Results from the Mobile basket 25
Results from the Leased Line basket 40
Results from the Broadband basket 50
Results from the call price comparison 61
Summary of findings 72
Reference information and acronyms 73
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Page 4
The context
The benchmarking study was originally initiated by TRA Bahrain in 2008 and updated in 2009. This update for 2010 was commissioned by TRA Bahrain on behalf of AREGNET.
In increasingly competitive markets it is important for regulators to be able to track the evolution of prices and analyze the impact of price change and competition on the effective prices paid by consumers.
This study allows Arab countries to compare the price levels within and between countries, and also to compare with the OECD countries. Data presented in this report is comparable with data from the 2008 and 2009 reports. However, please note that exchange rates have changed.
The benchmarking covers the following services:
– Fixed voice (PSTN) (OECD basket equivalent)
– Mobile telephony (OECD basket equivalent)
– Leased Lines (OECD basket equivalent)
– Broadband ADSL (Teligen basket)
– Call cost for specific types of calls
The methodologies for fixed and mobile telephony and leased lines are identical to the OECD Price Benchmarking baskets, with minor changes. A separate document explaining the methodology used in this study is available. As OECD baskets were revised in 2009/2010 some results are presented for both versions of the baskets.
The data was collected by Teligen from public sources on the Internet. Data has subsequently been passed to national regulators for comments.
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Page 5
Basket results
per tariff
(in national currency)
Price benchmarking with “Baskets”
Tariff information Tariff information
Tariff information Tariff information
Usage profile
(“Basket”)
Benchmarking results
for all tariffs
(in common currency)
Tax and exchange rate
adjustments.
Purchasing Power.
Basket results
per tariff
(in national currency)
Basket results
per tariff
(in national currency)
Basket results
per tariff
(in national currency)
Combine tariff information with a usage profile
in a “basket calculation engine” to calculate
cost of individual calls and tariff elements.
Adjust costs for tax, currency and purchasing
power to create comparable results.
The benchmarking results show the end user
cost of using the service according to the
usage profile, in a consistent format.
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Page 6
Fixed voice (PSTN) baskets, 2006 version
Five different basket definitions: – Low usage, medium usage and high usage for residential users
– SoHo usage (single user) and SME usage (30 users) for business
The baskets define the volumes and the structure of usage – Volume and distribution of calls to different destinations
– Distribution and duration of calls at different times of day
Tariffs from the incumbent operator in each country – Several tariff packages can be covered for each operator
Tariff information included in basket calculation: – Fixed charges for installation and rental
– Usage charges covering local through to national calls, calls to mobiles, and international calls to other AREGNET countries plus a few other destinations
The results show the lowest cost option for each operator
Volumes Call proportions Call durations (minutes)Total calls
per month Fixed line Mobile International Fixed Mobile International
Residential Low 50 76.0% 19.0% 5.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2
Residential Medium 100 75.0% 23.0% 2.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2
Residential High 200 65.0% 31.0% 4.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2
Business Small 150 67.0% 29.0% 4.0% 1.9 - 3.1 1.6 - 1.7 2.9 - 3.9
Business SME 233 72.0% 20.0% 8.0% 1.9 - 3.1 1.6 - 1.7 2.9 - 3.9
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Page 7
Fixed voice (PSTN) data issues
Tariff data was researched from operator websites in the first weeks of January 2010.
– Additional clarifications have been sought from operators and regulators.
– Regulators have been offered the opportunity to comment on the tariff information, and on this report, prior to final publication.
Due to lack of published data, and lack of feedback, no data is available for:
– Comoros
– Iraq
– Kuwait
Part of data is missing for:
– Syria (no prices for calls to mobile)
– Yemen (no prices for national calls and fixed line)
The analysis covers 40 tariffs from the incumbent operators in 19 countries
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Page 8
Low usage basket results
Most Arab countries have a low
fixed cost, and “average to high”
usage cost.
International calls are particularly
expensive (see international basket).
For Arab countries the international
usage is 57% of the total usage, while
for the OECD it is 32%.
The “average” lines are indications of the averages across
OECD countries and Arab countries covered in this study
OECD Residential basket, Low Usage
21.48
25.65
25.77
26.64
27.34
27.44
28.99
30.05
33.51
34.38
38.89
39.76
41.31
44.19
62.75
73.98
77.99
80.92
93.38
20.91
21.04
48.11
60.02
34.91
43.92
- 10 20 30 40 50 60 70 80 90 100
UAE, Etisalat
Bahrain, Batelco
Syria, Syrian Telecom *
Yemen, Tele Yemen *
Qatar, Qtel
Tunisia, Tunisie Telecom
Sudan, Sudan Telecom (Thabit)
Egypt, Egypt Telecom
Libya, Libya Telecom
Saudi Arabia, Saudi Telecom
Jordan, Orange
Algeria, Algerie Telecom
Lebanon, Ogero
Oman, Omantel
Somalia, Somali Telecom
Morocco, Maroc Telecom
Mauritania, Mauritel
Djibouti, Djibouti Telecom
Palestine, Paltel
Turkey, Turk Telecom
Iceland, Síminn
USA, Verizon, NY + AT&T
Czech Rep., Telefonica O2
OECD simple average,
Arab simple average,
Currency : USD/PPP per month, VAT Included
Fixed Usage
January 2010
Tw o cheapest OECD countries
Tw o most expensive OECD countries
OECD simple average
Countries marked * do not have
complete tariff data.
Arab simple average
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Page 9
Medium usage basket results
The “average” lines are indications of the averages across
OECD countries and Arab countries covered in this study
OECD Residential basket, Medium Usage
21.31
24.57
25.14
30.23
32.42
40.82
42.42
43.03
43.12
44.61
50.66
51.60
56.09
56.31
71.26
80.76
95.39
100.79
142.98
27.27
27.91
64.43
84.19
45.45
55.45
- 20 40 60 80 100 120 140
Yemen, Tele Yemen *
UAE, Etisalat
Syria, Syrian Telecom *
Qatar, Qtel
Bahrain, Batelco
Sudan, Sudan Telecom (Thabit)
Tunisia, Tunisie Telecom
Saudi Arabia, Saudi Telecom
Egypt, Egypt Telecom
Libya, Libya Telecom
Jordan, Orange
Algeria, Algerie Telecom
Lebanon, Ogero
Oman, Omantel
Somalia, Somali Telecom
Djibouti, Djibouti Telecom
Morocco, Maroc Telecom
Mauritania, Mauritel
Palestine, Paltel
Turkey, Turk Telecom
Iceland, Síminn
Australia, Telstra
Czech Rep., Telefonica O2
OECD simple average,
Arab simple average,
Currency : USD/PPP per month, VAT Included
Fixed Usage
January 2010
Tw o cheapest OECD countries
Tw o most expensive OECD countries
OECD simple average
Countries marked * do not have
complete tariff data.
Arab simple average
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Page 10
High usage basket results
With high usage six of
the Arab countries can compare with
the average OECD cost. (up from
three last year)
The low fixed cost does, combined with
the relatively high usage cost, create
a situation where competing operators
may easily attract high volume users.
Buying the low cost line from the
incumbent operator, and cheaper
calls from an indirect provider, may
be a tempting alternative when usage
is high.
This may put the incumbent operator
in a difficult position.
The “average” lines are indications of the averages across
OECD countries and Arab countries covered in this study
OECD Residential basket, High Usage
61.50
69.43
70.07
75.54
79.86
85.26
87.26
97.68
102.47
103.69
105.16
112.66
113.65
132.95
142.19
149.69
178.15
255.40
331.73
36.92
42.59
128.12
145.32
75.72
123.91
- 50 100 150 200 250 300 350 400
UAE, Etisalat
Qatar, Qtel
Syria, Syrian Telecom *
Bahrain, Batelco
Saudi Arabia, Saudi Telecom
Yemen, Tele Yemen *
Egypt, Egypt Telecom
Tunisia, Tunisie Telecom
Algeria, Algerie Telecom
Sudan, Sudan Telecom (Thabit)
Jordan, Orange
Lebanon, Ogero
Oman, Omantel
Libya, Libya Telecom
Somalia, Somali Telecom
Morocco, Maroc Telecom
Mauritania, Mauritel
Djibouti, Djibouti Telecom
Palestine, Paltel
Canada, Bell
Denmark, TDC
Hungary, T-Com
Czech Rep., Telefonica O2
OECD simple average,
Arab simple average,
Currency : USD/PPP per month, VAT Included
Fixed Usage
January 2010
Tw o cheapest OECD countries
Tw o most expensive OECD countries
OECD simple average
Countries marked * do not have
complete tariff data.
Arab simple average
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Page 11
SOHO basket results
The profile of the “Small Office /
Home Office” basket is largely similar
to the Medium Residential basket.
The main difference is higher overall
usage and more international calls.
The difference between the Arab and
the OECD averages is smaller for
business services than for residential
services.
The “average” lines are indications of the averages across
OECD countries and Arab countries covered in this study
OECD Business basket, SOHO
30.30
31.08
39.51
43.89
44.11
48.04
53.52
58.02
60.68
72.43
72.79
73.89
75.91
84.35
93.07
104.81
124.31
172.74
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21.93
22.42
84.05
87.31
49.23
71.30
- 20 40 60 80 100 120 140 160 180 200
Syria, Syrian Telecom *
Yemen, Tele Yemen *
Bahrain, Batelco
UAE, Etisalat
Tunisia, Tunisie Telecom
Saudi Arabia, Saudi Telecom
Algeria, Algerie Telecom
Lebanon, Ogero
Oman, Omantel
Qatar, Qtel
Libya, Libya Telecom
Egypt, Egypt Telecom
Jordan, Orange
Somalia, Somali Telecom
Djibouti, Djibouti Telecom
Morocco, Maroc Telecom
Mauritania, Mauritel
Palestine, Paltel
0, 0
Norway, Telenor
Turkey, Turk Telecom
Mexico, Telmex
UK, BT
OECD simple average,
Arab simple average,
Currency : USD/PPP per month, VAT Excluded
Fixed Usage
January 2010
Tw o cheapest OECD countries
Tw o most expensive OECD countries
OECD simple average
Countries marked * do not have
complete tariff data.
Arab simple average
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Page 12
SME basket results
The SME basket covers 30 lines
and 30 users. Usage per user
is higher than with the SOHO
basket.
All Arab countries are above
OECD average.
The “average” lines are indications of the averages across
OECD countries and Arab countries covered in this study
OECD Business basket, SME
2,136.80
2,165.06
2,212.49
2,296.21
2,299.70
2,444.35
2,809.78
2,901.25
3,048.04
3,132.76
3,335.04
3,610.23
4,004.05
4,199.66
4,457.41
6,500.75
6,908.10
8,760.79
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757.42
800.96
3,746.43
3,777.87
1,970.98
3,734.58
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1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
10,00
0
UAE, Etisalat
Tunisia, Tunisie Telecom
Bahrain, Batelco
Syria, Syrian Telecom *
Saudi Arabia, Saudi Telecom
Algeria, Algerie Telecom
Lebanon, Ogero
Yemen, Tele Yemen *
Qatar, Qtel
Oman, Omantel
Jordan, Orange
Libya, Libya Telecom
Somalia, Somali Telecom
Egypt, Egypt Telecom
Morocco, Maroc Telecom
Mauritania, Mauritel
Djibouti, Djibouti Telecom
Palestine, Paltel
0, 0
Norway, Telenor
Turkey, Turk Telecom
UK, BT
Mexico, Telmex
OECD simple average,
Arab simple average,
Currency : USD/PPP per month, VAT Excluded
Fixed Usage
January 2010
Tw o cheapest OECD countries
Tw o most expensive OECD countries
OECD simple average
Countries marked * do not have
complete tariff data.
Arab simple average
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Page 13
International call basket
The international basket gives the weighted average of the cost of
one call, weighted by:
– Destination: 22 Arab countries, 4 Western and 4 Eastern countries
– Time of day: Residential basket with 25% peak time and 75% off-peak
time
– Duration: Peak calls of 3 minutes, off-peak calls of 5 minutes
The destinations are weighted based on originating and destination
countries:
From To N. Africa ME West ME East E. Africa Europe N. America Asia
North Africa 30% 10% 10% 10% 20% 10% 10%
ME West 10% 35% 10% 5% 20% 15% 5%
ME East 10% 10% 35% 5% 5% 15% 20%
East Africa 10% 10% 20% 30% 10% 10% 10%
North Africa Algeria Libya Mauritania Morocco Tunisia
ME West Jordan Lebanon Palestine Syria
ME East Bahrain Iraq Kuwait Oman Qatar Saudi UAE Yemen
East Africa Comoros Djibouti Egypt Somalia Sudan
Europe France UK Spain
N. America USA
Asia India Phillipines Japan Australia
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Page 14
International call basket
International calls out of the Arab
countries are 4-5 times as expensive
as the OECD countries on average,
and even the cheapest Arab country
is 11 times more expensive than
the “best in class” OECD country.
However, this is an improvement
from previous years.
The “average” lines are indications of the averages across
OECD countries and Arab countries covered in this study
International Residential Basket
1.86
2.16
2.62
2.72
2.73
2.87
2.97
3.03
3.03
3.17
3.43
4.03
4.55
4.87
5.13
5.25
6.99
8.37
17.09
0.16
0.23
3.19
3.22
1.05
4.57
- 2 4 6 8 10 12 14 16 18 20
Saudi Arabia, Saudi Telecom
Morocco, Maroc Telecom
Lebanon, Ogero
Qatar, Qtel
Egypt, Egypt Telecom
Tunisia, Tunisie Telecom
Jordan, Orange
UAE, Etisalat
Bahrain, Batelco
Algeria, Algerie Telecom
Oman, Omantel
Sudan, Sudan Telecom (Thabit)
Syria, Syrian Telecom *
Mauritania, Mauritel
Libya, Libya Telecom
Somalia, Somali Telecom
Yemen, Tele Yemen *
Palestine, Paltel
Djibouti, Djibouti Telecom
Germany, Deutsche Telekom
Canada, Bell
Korea, KT
Mexico, Telmex
OECD simple average,
Arab simple average,
Currency : USD/PPP per call, VAT Included
Fixed Usage
January 2010
Tw o cheapest OECD countries
Tw o most expensive OECD countries
OECD simple average
Countries marked * do not have
complete tariff data.
Arab simple average
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Page 15
Fixed voice basket results 2009 - 2010
Price changes 2009 - 2010:
– Algeria: Reduced line rental, increased national call charges
– Egypt: Changes in national call charges and business tariff. International call charges for additional minutes reduced significantly.
– Jordan: Changes in international call charges, no off-peak discount any more
– Lebanon: Lower fixed to mobile call charges.
– Morocco: Changes in fixed to mobile charges and reduced off-peak international charges.
– Palestine: Change in fixed to mobile charges and lower international charges.
– Qatar: Adjusted to per minute billing. No price change.
– Saudi Arabia: Change in call charge to USA
– Syria: Correction in international call charges. No actual change.
– Tunisia: Change in fixed to mobile charges
– Yemen: Reduction in international call charges to some destinations.
The gap between the Arab average and the OECD average has widened over the last year, primarily because the prices in OECD countries have gone down more than in Arab countries.
Price change analysis is based on prices in national
currency for each country.
PSTN price change 2009 - 2010
-80% -60% -40% -20% 0% 20% 40%
Algeria
Bahrain
Djibouti
Egypt
Jordan
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan *
Syria
Tunisia
UAE
Yemen
Low
Medium
High
SOHO
SME
Res. Intn.
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Page 16
Fixed voice basket results 2008 - 2010
Price changes for the entire study period – Most countries have seen some price reductions
– Price increases for some users seen in Algeria, Egypt, Oman and Syria.
– General price increases in Jordan and Tunisia
– Price increase shown for Qatar due to adjustment to per minute billing. No price increase per say.
Un-weighted price change per basket across countries
– Low basket changed -3%
– Medium basket changed -4%
– High basket changed -8%
– SOHO basket changed +1%
– SME basket changed -4%
– International calls basket changed -11%
Most users of fixed telephony will have seen a price reduction over the three years.
Price change analysis is based on prices in national
currency for each country.
PSTN price change 2008 - 2010
-80% -60% -40% -20% 0% 20% 40% 60% 80%
Algeria
Bahrain
Djibouti
Egypt
Jordan
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan *
Syria
Tunisia
UAE
Yemen
Low
Medium
High
SOHO
SME
Res. Intn.
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Page 17
Observations from PSTN basket results
The cheapest countries throughout are : (*)
– UAE , Syria, Bahrain, Yemen, Tunisia
• The exact order of these may vary with usage level
• This list is based on average ranking across all five baskets, residential and business
Most of these countries have total costs below or just above the OECD average for all baskets
– Generally the Arab countries in North Africa are more expensive than the Arab countries in the Middle East.
As before, the price range for the Arab countries (cheapest to most expensive) is wider than for the OECD countries
– The cheapest OECD country is below the cheapest Arab country
– The most expensive Arab country is significantly more expensive than the most expensive OECD country
Most of the Arab countries have fixed costs well below the OECD countries, causing the usage element to dominate. This makes the overall cost grow quicker with increasing usage, something that will discourage growth in usage.
– This situation has not changed much over time
Even with significantly lower fixed cost the overall cost of using the service is higher in the Arab countries than in the OECD countries.
There is a clear lack of rebalancing in most Arab countries, where the usage revenue covers a significant portion of the fixed line cost for the operators.
International calls are significantly more expensive than in OECD countries
* Countries with gaps in the tariff information are not considered.
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Page 18
Fixed voice (PSTN) baskets, 2010 version
Six different basket definitions: – Defined by number of calls per month
– Residential: 20, 60, 140 and 420 calls per month
– Business: 100 and 260 calls per month
Tariffs from the incumbent operator in each country – Several tariff packages can be covered for each operator
– The results show the lowest cost option for each operator
Tariff information included in basket calculation: – Fixed charges for installation and rental
– Usage charges covering local through to national calls, calls to mobiles, and international calls to other AREGNET countries plus a few other destinations
– Structure of basket is somewhat simpler than the 2006 baskets
The results using the 2010 baskets come from a different implementation of the basket spreadsheets, and will inevitably give slightly different results due to the difference in basket structure.
Call distribution
Calls per month Total calls
Fixed to fixed Local
Fixed to fixed
National
Fixed to mobile
International
20 calls basket 20 61% 20% 17% 2%
60 calls basket 60 60% 15% 21% 4%
140 calls basket 140 58% 15% 23% 4%
420 calls basket 420 73% 17% 8% 2%
100 calls business basket 100 48% 19% 30% 3%
260 calls business basket 260 43% 23% 25% 9%
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Page 19
2010 OECD PSTN baskets: 20 calls/month
No national tariffs for
Yemen are included.
No F2M prices for
Syria are included.
20 calls basket
-
7.71
9.18
9.82
10.33
10.41
10.93
15.82
16.08
16.87
18.97
21.07
22.33
23.46
25.31
33.08
38.34
41.24
44.27
-
-
-
12.93
15.47
32.96
36.92
20.85
24.67
0 5 10 15 20 25 30 35 40 45 50
Sudan
Syria
Libya
UAE
Bahrain
Tunisia
Algeria
Qatar
Egypt
Saudi Arabia
Djibouti
Jordan
Lebanon
Oman
Mauritania
Palestine
Somalia
Morocco
Korea
Finland
New Zealand
Czech Rep.
Arab average
OECD average
USD PPP including VAT
Fixed charges
Fixed to Fixed
Fixed to Mobile
International
Discount
OECD Low & High
Arab average
OECD average
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Page 20
2010 OECD PSTN baskets: 60 calls/month
No national tariffs for
Yemen are included.
No F2M prices for
Syria are included.
60 calls basket
-
23.31
23.46
24.15
27.76
28.32
28.96
33.67
34.47
35.02
40.00
41.48
42.51
43.27
63.46
77.91
77.99
79.10
102.16
-
-
-
19.92
21.50
50.12
63.74
45.94
37.01
0 20 40 60 80 100 120
Syria
UAE
Bahrain
Qatar
Sudan
Tunisia
Egypt
Saudi Arabia
Libya
Jordan
Algeria
Lebanon
Oman
Somalia
Morocco
Djibouti
Mauritania
Palestine
Iceland
Turkey
Australia
Czech Rep.
Arab average
OECD average
USD PPP including VAT
Fixed charges
Fixed to Fixed
Fixed to Mobile
International
Discount
OECD Low & High
Arab average
OECD average
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Page 21
2010 OECD PSTN baskets: 140 calls/month
No national tariffs for
Yemen are included.
No F2M prices for
Syria are included.
140 calls basket
-
46.87
47.23
47.71
49.79
64.09
64.72
68.56
69.19
74.55
76.94
78.37
81.14
81.23
103.05
109.93
135.65
170.57
251.71
-
-
-
30.31
36.12
97.92
108.67
90.07
59.61
0 50 100 150 200 250
Syria
UAE
Qatar
Bahrain
Tunisia
Saudi Arabia
Egypt
Sudan
Jordan
Algeria
Libya
Oman
Lebanon
Somalia
Morocco
Mauritania
Djibouti
Palestine
Iceland
Turkey
Mexico
Czech Rep.
Arab average
OECD average
USD PPP including VAT
Fixed charges
Fixed to Fixed
Fixed to Mobile
International
Discount
OECD Low & High
Arab average
OECD average
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Page 22
2010 OECD PSTN baskets: 420 calls/month
No national tariffs for
Yemen are included.
No F2M prices for
Syria are included.
420 calls basket
63.57
75.08
90.51
92.61
108.44
118.13
126.81
131.89
132.23
151.41
155.47
156.08
165.57
176.19
184.45
187.96
338.05
704.66
-
-
-
-
37.09
41.18
188.91
232.08
175.51
101.78
0 100 200 300 400 500 600 700 800
Qatar
Saudi Arabia
UAE
Syria
Libya
Bahrain
Morocco
Tunisia
Algeria
Egypt
Somalia
Jordan
Mauritania
Sudan
Lebanon
Oman
Djibouti
Palestine
Iceland
Norway
Australia
Czech Rep.
Arab average
OECD average
USD PPP including VAT
Fixed charges
Fixed to Fixed
Fixed to Mobile
International
Discount
OECD Low & High
Arab average
OECD average
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Page 23
2010 OECD PSTN baskets:
100 calls/month, Business
No national tariffs for
Yemen are included.
No F2M prices for
Syria are included.
100 calls business basket
21.81
30.71
31.39
36.58
37.60
41.59
44.85
46.53
51.94
53.50
56.84
63.11
66.39
68.40
77.49
90.93
122.66
-
-
-
-
-
20.16
20.22
67.49
69.08
55.43
41.78
0 20 40 60 80 100 120 140
Syria
Bahrain
Tunisia
Saudi Arabia
UAE
Algeria
Lebanon
Oman
Libya
Egypt
Jordan
Qatar
Djibouti
Somalia
Morocco
Mauritania
Palestine
Turkey
Norway
UK
Czech Rep.
Arab average
OECD average
USD PPP excluding VAT
Fixed charges
Fixed to Fixed
Fixed to Mobile
International
Discount
OECD Low & High
Arab average
OECD average
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Page 24
2010 OECD PSTN baskets:
260 calls/month, Business
No national tariffs for
Yemen are included.
No F2M prices for
Syria are included.
260 calls business basket
94.12
104.38
105.22
107.96
114.75
118.51
129.45
130.68
134.01
141.89
178.41
186.87
189.61
206.88
305.00
346.79
414.80
-
-
-
-
-
30.70
36.02
156.83
169.95
177.02
86.49
-100 0 100 200 300 400
Saudi Arabia
Bahrain
UAE
Tunisia
Syria
Algeria
Jordan
Lebanon
Qatar
Oman
Libya
Somalia
Egypt
Morocco
Mauritania
Djibouti
Palestine
Norway
Turkey
UK
Mexico
Arab average
OECD average
USD PPP excluding VAT
Fixed charges
Fixed to Fixed
Fixed to Mobile
International
Discount
OECD Low & High
Arab average
OECD average
-
Page 25
OECD Mobile basket , 2006 version
Three different basket definitions:
– Low usage, medium usage and high usage
– The low usage results will include both pre- and post-paid tariff packages
The baskets define the volumes and the structure of usage
– Volume and distribution of calls to different destinations
– Distribution of calls at different times of day
– Call durations are in the range of 1.4 to 1.9 minutes per call
Tariffs from the two dominant operators in each country
– Several tariff packages are covered for each operator
Tariff information covers:
– Fixed charges for connection and rental
– Calls to fixed network, on-net and off-net mobile, and international calls to other AREGNET countries plus a few others (see international basket on earlier page)
– Charges for SMS, MMS and voicemail calls
The results show the lowest cost option for each operator
The international calls are added to the OECD basket definition for this study.
Destinations Local National
Mobile
On-net
Mobile
Off-net
Voice
mail
SMS
On-net
SMS
Off-net
Low usage 15.00% 7.00% 48.00% 22.00% 8.00% 65.00% 35.00%
Medium usage 14.00% 7.00% 48.00% 24.00% 7.00% 65.00% 35.00%
High usage 13.00% 7.00% 47.00% 26.00% 7.00% 65.00% 35.00%
Calls / messages
per month Voice SMS MMS
Low usage 30 33 0.67
Medium usage 65 50 0.67
High usage 140 55 1.00
ToD Peak Off-peak Weekend
Low usage 48.00% 25.00% 27.00%
Medium usage 50.00% 24.00% 26.00%
High usage 60.00% 19.00% 21.00%
-
Page 26
Mobile tariff data issues
Tariff data was researched from operator websites in the first weeks of
January 2010.
– Additional clarifications have been sought from the operators and
regulators.
– Regulators have been offered the opportunity to comment on the tariff
information and the draft version of this report.
No tariff information available for:
– Djibouti
– Only pre-paid for Libya
– One operator only for Comoros, Palestine, Syria and Mauritania
Part of tariff information missing for:
– Kuwait (international call prices for Zain)
Otherwise two operators are covered for each country
A total of 279 tariff packages covered for 36 operators in 20 countries
-
Page 27
Low usage mobile basket results
For the Low usage basket
both pre- and post-paid
tariffs are included.
The cheapest option is
selected regardless of
tariff type.
Most of the tariffs shown in
this graph are pre-paid
(marked with an *).
The OECD results do not include
International calls as these
are not part of the OECD
basket definitions.
The “Arab average – Intn” line
shows the equivalent average
based on the Arab basket results
Low user basket
6.95
7.58
8.44
10.37
11.50
11.68
12.00
12.49
12.73
13.48
14.22
14.61
15.24
15.32
15.37
16.60
16.97
17.96
18.06
18.37
19.56
19.73
19.92
19.98
21.30
22.53
23.85
26.28
26.86
31.47
43.18
50.85
52.90
56.93
58.03
68.46
4.37
4.91
22.25
24.85
12.53
23.11
- 10 20 30 40 50 60 70 80
Jordan, Orange *
Algeria, ATM Mobilis *
UAE, du *
UAE, Etisalat *
Kuw ait, Zain *
Jordan, Zain *
Iraq, AsiaCell *
Bahrain, Zain BH *
Iraq, Korek *
Bahrain, Batelco *
Kuw ait, Wataniya *
Qatar, Vodafone *
Sudan, Zain SD *
Oman, Naw ras *
Oman, Oman Mobile *
Saudi Arabia, Mobily *
Egypt, Etisalat *
Algeria, Djezzy *
Qatar, Qtel *
Saudi Arabia, Al Jaw al *
Yemen, MTN *
Tunisia, Tunisie Télécom *
Tunisia, Tunisiana *
Egypt, Mobinil *
Sudan, MTN *
Libya, alMadar *
Libya, Libyana *
Mauritania, Mattel *
Yemen, Sabafon *
Syria, Syriatel *
Comoros, Huri *
Lebanon, Touch *
Morocco, IAM *
Lebanon, Alfa *
Morocco, Meditel *
Palestine, Jaw w al *
Denmark, Telenor
Finland, Elisa
Czech Republic, O2
USA, Verizon
OECD simple average
Arab simple average
USD/PPP per month including VAT
FixedVoiceMessageIntn
OECD results, minimum and maximum
OECD average
Arab average
Pre-Paid and Post-paid
Arab average - Intn
-
Page 28
Medium usage mobile basket results
The OECD results do not include
International calls as these
are not part of the OECD
basket definitions.
The “Arab average – Intn” line
shows the equivalent average
based on the Arab basket results
Medium user basket
19.17
23.41
24.14
27.14
27.75
28.15
28.21
30.42
34.87
35.74
35.83
36.50
36.63
37.64
38.16
38.45
39.35
39.45
40.27
40.84
41.91
43.58
45.41
45.53
54.57
61.11
71.13
72.48
74.98
78.39
82.35
86.00
131.66
-
-
-
7.47
7.78
48.04
52.99
24.53
41.71
- 20 40 60 80 100 120 140
UAE, du
Qatar, Vodafone
Kuw ait, Zain
Iraq, AsiaCell
UAE, Etisalat
Jordan, Orange
Bahrain, Zain BH
Bahrain, Batelco
Egypt, Mobinil
Oman, Naw ras
Kuw ait, Wataniya
Yemen, MTN
Jordan, Zain
Egypt, Etisalat
Sudan, Zain SD
Yemen, Sabafon
Algeria, Djezzy
Saudi Arabia, Mobily
Oman, Oman Mobile
Tunisia, Tunisiana
Algeria, ATM Mobilis
Qatar, Qtel
Sudan, MTN
Saudi Arabia, Al Jaw al
Tunisia, Tunisie Télécom
Mauritania, Mattel
Morocco, IAM
Syria, Syriatel
Morocco, Meditel
Lebanon, Touch
Lebanon, Alfa
Comoros, Huri
Palestine, Jaw w al
Norw ay, Telenor
Denmark, Telenor
Canada, Bell Mobility
USA, AT&T
OECD simple average
Arab simple average
USD/PPP per month including VAT
FixedVoiceMessageIntn
OECD results, minimum and maximum
OECD average
Arab average
Post-paid
Arab average - Intn
-
Page 29
High usage mobile basket results
The OECD results do not include
International calls as these
are not part of the OECD
basket definitions.
The “Arab average – Intn” line
shows the equivalent average
based on the Arab basket results
High user basket
35.49
38.62
41.35
44.12
45.18
47.22
51.55
53.17
55.15
56.39
56.82
57.44
58.50
58.61
59.74
59.79
59.94
62.84
63.25
63.76
63.96
65.60
70.97
72.85
93.33
108.71
111.74
114.64
117.72
118.61
120.25
154.82
189.02
-
-
-
10.27
12.74
56.05
66.41
34.70
66.90
- 20 40 60 80 100 120 140 160 180 200
UAE, du
Jordan, Orange
UAE, Etisalat
Bahrain, Zain BH
Qatar, Vodafone
Kuw ait, Zain
Bahrain, Batelco
Iraq, AsiaCell
Jordan, Zain
Oman, Naw ras
Yemen, Sabafon
Qatar, Qtel
Oman, Oman Mobile
Kuw ait, Wataniya
Algeria, Djezzy
Saudi Arabia, Mobily
Egypt, Etisalat
Tunisia, Tunisiana
Sudan, Zain SD
Algeria, ATM Mobilis
Yemen, MTN
Egypt, Mobinil
Saudi Arabia, Al Jaw al
Sudan, MTN
Tunisia, Tunisie Télécom
Morocco, IAM
Syria, Syriatel
Lebanon, Touch
Morocco, Meditel
Lebanon, Alfa
Mauritania, Mattel
Comoros, Huri
Palestine, Jaw w al
Denmark, Telenor
Netherlands, Vodafone
Portugal, Vodafone
Czech Republic, T-Mobile
OECD simple average
Arab simple average
USD/PPP per month including VAT
FixedVoiceMessageIntn
OECD results, minimum and maximum
OECD average
Arab average
Post-paid
Arab average - Intn
-
Page 30
Mobile basket results 2009 - 2010
Changes affecting the mobile basket results 2009-2010:
– Algeria: Selective discounts introduced
– Bahrain: Price changes
– Egypt: Price changes
– Jordan: Selective discounts introduced
– Kuwait: Changes in tariffs offered
– Lebanon: Changes in tariffs offered
– Mauretania: Price changes
– Morocco: Changes in allowance
– Palestine: Package changes
– Qatar: New operator tariffs
– Saudi Arabia: Price changes
– Tunisia: Package changes
– UAE: Package changes
– Yemen: Pre-paid package change
In other countries the changes have been minimal.
The Arab average has had a minor reduction over the last year, while the OECD average has had a clear decrease.
Price change analysis is based on prices in national
currency for each country.
Mobile price change 2009 - 2010
-50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuw ait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Sudan
Tunisia
UAE
Yemen
Low
Medium
High
-
Page 31
Mobile basket results 2008 - 2010
This graph shows the accumulated price
changes over the study period from 2008 to
2010.
Price change analysis is based on prices in national
currency for each country.
Mobile price change 2008 - 2010
-50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0%
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuw ait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Sudan
Tunisia
UAE
Yemen
Low
Medium
High
-
Page 32
Observations from Mobile basket results
The cheapest countries throughout are :
– UAE, Jordan , Kuwait, Bahrain, Qatar
• The exact order of these may vary with usage level
• Only UAE is among the top 5 for all baskets
• These are largely the same countries that have the best PSTN results
• These are also largely the same countries that came cheapest in 2009
For low usage, with pre-paid packages, only a handful of the Arab countries have price levels below the OECD average
For medium to high usage, with post-paid packages, most Arab countries are above the OECD average
The average across Arab countries is 80-100% above the OECD average.
Except for the five-six most expensive countries, the Arab countries have rather uniform price levels for mobile services.
Many operators have very few tariff packages on offer, i.e. do not make any great attempts to capture customers with tailored prices.
– There has however been an increase of the number of packages in some countries
-
Page 33
New OECD baskets 2010
The OECD has adopted new baskets in March 2010. The key
information about the basket definitions is shown below.
– The following 6 pages show the results using the new basket definitions
– Tariff information is the same as for previous results
– New baskets include a new way of calculating call costs, and also include
the capability to cover “Selective discounts”
– Pre- and Post-paid tariffs are included for all baskets
Call distribution Volume per month
Total calls per month
Mobile to fixed
On-net Off-net Voicemail SMS
30 calls basket 30 16% 55% 25% 4% 100
100 calls basket 100 17% 52% 28% 3% 140
300 calls basket 300 14% 46% 37% 3% 225
900 calls basket 900 14% 55% 28% 3% 350
40 calls prepaid basket 40 14% 64% 18% 4% 60
400 messages basket 8 8% 55% 25% 12% 400
-
Page 34
2010 OECD mobile basket: 30 calls/month
Please note:
No data for Djibouti and Somalia.
No international data for Kuwait.
Selective discounts included.
* marks pre-paid tariffs.
30 calls basket
6.46
12.92
16.47
18.06
18.43
18.57
20.99
21.12
21.22
23.78
24.78
25.27
27.05
32.92
39.36
39.41
62.66
67.25
67.44
95.37
0
5.40
6.02
28.24
40.85
32.98
17.19
0 10 20 30 40 50 60 70 80 90 100
Jordan, Orange *
UAE, du *
Algeria, ATM Mobilis *
Iraq, AsiaCell
Kuwait, Zain *
Oman, Nawras *
Qatar, Vodafone
Sudan, Zain SD *
Bahrain, Batelco *
Egypt, Etisalat *
Saudi Arabia, Mobily *
Yemen, MTN
Tunisia, Tunisiana *
Libya, alMadar *
Syria, Syriatel *
Mauritania, Mattel
Comoros, Huri
Morocco, Meditel
Lebanon, Touch *
Palestine, Jawwal *
Norway, Telenor
Denmark, Telenor *
Turkey, Turkcell
USA, Verizon *
Arab average
OECD average
USD/PPP including VAT per month
Fixed charges
Voice calls
International
MessagesOECD average
Arab average
-
Page 35
2010 OECD mobile basket: 100 calls/month
Please note:
No data for Djibouti and Somalia.
No international data for Kuwait.
Selective discounts included.
* marks pre-paid tariffs.
100 calls basket
23.80
24.85
32.40
42.89
42.91
43.80
46.41
50.19
52.85
52.86
54.22
56.08
62.77
83.39
106.85
109.84
117.89
119.31
151.32
184.01
0
11.85
14.92
55.80
56.38
69.46
32.65
0 20 40 60 80 100 120 140 160 180 200
Jordan, Orange *
Algeria, ATM Mobilis *
UAE, du *
Kuwait, Zain
Bahrain, Zain BH
Qatar, Vodafone
Iraq, AsiaCell
Egypt, Etisalat *
Oman, Oman Mobile
Yemen, Sabafon
Sudan, Zain SD *
Tunisia, Tunisiana
Saudi Arabia, Mobily *
Libya, alMadar *
Mauritania, Mattel
Morocco, IAM
Syria, Syriatel *
Lebanon, Touch
Comoros, Huri
Palestine, Jawwal
Denmark, Telenor *
Norway, Telenor
Turkey, Vodafone
Spain, MoviStar
Arab average
OECD average
USD/PPP including VAT per month
Fixed charges
Voice calls
International
MessagesOECD average
Arab average
-
Page 36
2010 OECD mobile basket: 300 calls/month
Please note:
No data for Djibouti and Somalia.
No international data for Kuwait.
Selective discounts included.
* marks pre-paid tariffs.
300 calls basket
39.20
54.98
80.94
90.71
97.18
97.51
102.41
107.19
111.65
118.03
119.08
122.08
137.02
208.09
223.31
245.30
248.92
283.05
367.66
457.30
0
23.23
25.78
105.80
114.69
157.70
66.04
0 50 100 150 200 250 300 350 400 450 500
Algeria, ATM Mobilis *
Jordan, Orange *
UAE, du
Bahrain, Zain BH
Qatar, Vodafone
Kuwait, Zain
Yemen, Sabafon
Oman, Oman Mobile
Egypt, Etisalat *
Iraq, AsiaCell
Tunisia, Tunisiana
Saudi Arabia, Mobily
Sudan, Zain SD *
Morocco, IAM
Libya, alMadar *
Lebanon, Touch
Syria, Syriatel
Mauritania, Mattel
Comoros, Huri
Palestine, Jawwal
UK, O2
Denmark, Telenor
Hungary, Pannon
Czech Republic, T-Mobile
Arab average
OECD average
USD/PPP including VAT per month
Fixed charges
Voice calls
International
MessagesOECD average
Arab average
-
Page 37
2010 OECD mobile basket: 900 calls/month
Please note:
No data for Djibouti and Somalia.
No international data for Kuwait.
Selective discounts included.
* marks pre-paid tariffs.
900 calls basket
144.72
157.31
180.36
194.10
211.24
211.70
217.34
233.42
265.19
298.02
299.05
312.54
355.34
518.44
600.46
608.32
621.65
816.33
987.04
1,008.40
0
28.75
31.44
285.15
324.03
392.43
136.60
0 200 400 600 800 1000
Jordan, Orange *
Bahrain, Batelco
UAE, Etisalat
Kuwait, Zain
Egypt, Etisalat
Yemen, Sabafon
Algeria, ATM Mobilis *
Qatar, Vodafone
Oman, Oman Mobile
Saudi Arabia, Al Jawal
Tunisia, Tunisiana
Iraq, AsiaCell
Sudan, Zain SD
Morocco, Meditel
Libya, alMadar *
Lebanon, Touch
Syria, Syriatel
Mauritania, Mattel
Comoros, Huri
Palestine, Jawwal
Finland, Elisa
Luxembourg, LuxGSM
New Zealand, Vodafone
Hungary, Pannon
Arab average
OECD average
USD/PPP including VAT per month
Fixed charges
Voice calls
International
MessagesOECD average
Arab average
-
Page 38
2010 OECD mobile basket: 40 calls/month
Please note:
No data for Djibouti and Somalia.
No international data for Kuwait.
Selective discounts included.
* marks pre-paid tariffs.
40 calls prepaid basket
6.93
8.88
11.29
15.43
16.28
17.68
17.77
19.26
20.72
21.17
22.10
24.35
29.44
29.79
40.71
41.76
51.19
55.49
68.46
97.85
0
5.54
5.86
29.82
40.36
29.36
17.28
0 10 20 30 40 50 60 70 80 90 100
Jordan, Orange *
Algeria, ATM Mobilis *
UAE, du *
Egypt, Etisalat *
Iraq, AsiaCell
Kuwait, Zain
Qatar, Vodafone
Bahrain, Zain BH *
Sudan, Zain SD *
Yemen, MTN
Oman, Nawras *
Saudi Arabia, Mobily *
Libya, alMadar *
Tunisia, Tunisiana *
Mauritania, Mattel
Syria, Syriatel *
Comoros, Huri
Morocco, IAM
Lebanon, Touch
Palestine, Jawwal *
Denmark, Telenor *
Norway, Telenor
Slovak Republic, Orange
USA, Verizon *
Arab average
OECD average
USD/PPP including VAT per month
Fixed charges
Voice calls
International
MessagesOECD average
Arab average
-
Page 39
2010 OECD mobile basket:
400 messages/month
Please note:
No data for Djibouti and Somalia.
No international data for Kuwait.
Selective discounts included.
* marks pre-paid tariffs.
400 messages basket
20.61
24.89
27.15
29.40
29.43
29.72
37.30
38.03
40.63
42.02
45.99
46.79
53.19
53.74
69.10
77.68
85.12
100.00
108.92
133.41
0
7.22
8.69
56.81
57.03
52.05
23.70
0 20 40 60 80 100 120 140
Oman, Nawras *
Jordan, Orange *
UAE, du *
Algeria, ATM Mobilis *
Iraq, Korek *
Sudan, Zain SD *
Tunisia, Tunisiana
Yemen, MTN
Kuwait, Zain *
Bahrain, Zain BH
Saudi Arabia, Mobily *
Libya, Libyana *
Qatar, Vodafone
Egypt, Etisalat *
Mauritania, Mattel
Syria, Syriatel *
Lebanon, Touch *
Morocco, Meditel
Comoros, Huri
Palestine, Jawwal *
Finland, Elisa
Denmark, Telenor *
Italy, Vodafone *
Germany, T-Mobile *
Arab average
OECD average
USD/PPP including VAT per month
Fixed charges
Voice calls
International
MessagesOECD average
Arab average
-
Page 40
Leased Lines basket, as defined by the OECD
Prices for 64kb/s, 2 Mb/s and 34 Mb/s national circuits
6 specific distances are used: – 2 km, 20 km, 50 km, 100 km, 200 km and 500 km
Each distance is weighted in order to calculate a weighted average price for one circuit:
The 3 bitrates are calculated and reported separately.
Where the distances in the basket would go beyond the country borders, the weights of those distances will be attributed to the longest available tariff zone.
– For example: In Bahrain a 64 kb/s circuit costs BD 140 regardless of distance. The longest possible circuit distance in Bahrain is approximately 50 km. But the weights for 100 km (20%), 200 km (5%) and 500 km (5%) are still applied to this price as the price for the longest possible circuit in order to cover 100%.
– This may bias the results for small countries with distance-sensitive prices in the sense that a relatively higher proportion of the circuits will be at maximum cost
– Small countries with no distance pricing will be favoured by this scheme.
For the Arab country price benchmarking two more bitrates are added: – 256 kb/s in order to cover a wider range of services relevant for the region, and
155 Mb/s to show the potential for future development.
– To the extent they are offered in the countries concerned.
Distance (km) 2 20 50 100 200 500
Weight 35% 20% 15% 20% 5% 5%
-
Page 41
Leased Lines data issues
Tariff data was researched from operator websites in the first weeks of January 2010.
– Additional clarifications have been sought from the operators and regulators.
– Regulators have been offered the opportunity to comment on the tariff information and on the draft report.
No price data available for:
– Comoros
– Iraq
– Kuwait
– Somalia
– Sudan
Other countries may have data missing for specific bitrates
Due to a calculation error in 2009 the Leased Line price comparisons for 2009 has been reissued in a separate report.
-
Page 42
64 kb/s Leased Lines basket results
The OECD data shown represent
the lowest and highest prices found
in OECD countries, and the average
across all 30 OECD countries.
64 kb/s circuit prices
127
232
254
282
381
414
441
454
479
528
572
618
694
798
816
1,762
1,981
91
1,691
441
553
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Syria
Algeria
Libya
Egypt
Jordan
Lebanon
Qatar
Saudi Arabia
Tunisia
Bahrain
Oman
UAE
Yemen
Morocco
Palestine
Mauritania
Djibouti
Iceland
Czech Rep.
OECD simple average
Arab simple average
Monthly prices in US$ PPP, VAT excluded
OECD average
Arab average
-
Page 43
256kb/s Leased Lines basket results
Note: No equivalent OECD data exist.
256 kb/s circuit prices
407
552
734
839
860
887
957
1,015
1,060
1,088
1,144
1,275
1,389
1,623
1,731
2,506
2,843
1,230
- 500 1,000 1,500 2,000 2,500 3,000
Syria
Algeria
Egypt
Jordan
Lebanon
Libya
Tunisia
Bahrain
Saudi Arabia
Qatar
Oman
Palestine
Yemen
Morocco
UAE
Mauritania
Djibouti
Arab simple average
Monthly prices in US$ PPP, VAT excluded
Arab average
-
Page 44
2 Mb/s Leased Lines basket results
The OECD data shown represent
the lowest and highest prices found
in OECD countries, and the average
across all 30 OECD countries.
2 Mb/s circuit prices
1,499
1,688
1,694
1,732
2,360
2,409
2,488
2,861
3,615
3,664
4,027
4,069
4,085
5,304
6,600
6,944
269
5,451
1,913
3,440
- 4,000 8,000
Libya
Lebanon
Egypt
Algeria
Syria
Saudi Arabia
Qatar
Oman
Bahrain
UAE
Morocco
Tunisia
Jordan
Djibouti
Palestine
Yemen
Denmark
Czech Rep.
OECD simple average
Arab simple average
Monthly prices in US$ PPP, VAT excluded
OECD average
Arab average
-
Page 45
34 Mb/s Leased Lines basket results
The OECD data shown represent
the lowest and highest prices found
in OECD countries, and the average
across all 30 OECD countries.
Only a few of the Arab countries
publish these prices.
The service may still be offered
though.
34 Mb/s circuit prices
7,919
11,291
14,197
38,013
1,529
24,807
10,287
17,855
- 20,000 40,000
Qatar
Egypt
Saudi Arabia
Morocco
Iceland
Mexico
OECD simple average
Arab simple average
Monthly prices in US$ PPP, VAT excluded
OECD
average
Arab average
-
Page 46
155 Mb/s Leased Lines basket results
Note: No equivalent OECD data exist.
Only a few of the Arab countries
publish these prices.
The service may still be offered
though.
155 Mb/s circuit prices
22,581
28,935
30,991
27,503
- 10,000 20,000 30,000 40,000
Egypt
Saudi Arabia
Qatar
Arab simple average
Monthly prices in US$ PPP, VAT excluded
Arab average
-
Page 47
Leased Line basket results 2009 - 2010
The basket results are affected by:
– Algeria: General price reductions.
– Libya: Reduction of 70% from 2 Mb/s upwards
– Oman: General price reductions
– Qatar: General price reductions
– Syria: General price reductions
No price changes recorded in other countries.
The Arab average is closing in on the OECD average
– Please note: The average is only calculated on the basis of the prices shown. As the range of countries publishing prices may change from year to year the average may also change on that basis.
Price change analysis is based on prices in national
currency for each country.
Leased Line price changes 2009 - 2010
-80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0%
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
64 k
256k
2 M
34 M
155M
64 k 2 M 34 M
Arab/OECD 2010 104% 239% 121%
average 2009 136% 198% 257%
2008 198% 251% 252%
-
Page 48
Leased Line basket results 2008 - 2010
The changes over the study period
show price reductions in 7 of the 22
countries.
– Changes in Bahrain relate to a tighter
definition of the type of prices used in
2009 and 2010 than in 2008, i.e.
moving from month-by-month prices
to 1 year contracts.
Price change analysis is based on prices in national
currency for each country.
Leased Line price changes 2008 - 2010
-80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0%
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
64 k
256k
2 M
34 M
155M
-
Page 49
Observations from Leased Line results
Libya, Lebanon, Egypt, Algeria and Syria have the lowest prices for National Leased Lines.
– Price levels in these countries are below or close to the OECD average
– The price ranking may vary with product
Most of the Arab countries have prices below the most expensive OECD country
– For 64 kb/s the prices in Djibouti and Mauritania stands out as very high.
– For 34 Mb/s and 155 Mb/s some of the prices that were very high last year are now not available in the public domain, and have thus not been included.
However, all Arab countries are more expensive than the OECD “best-in-class”.
Many of the Arab countries are quite small in size and this price comparison may give advantage to the tariff structure used in these small countries.
– i.e. the reality may be worse than shown here.
-
Page 50
Broadband basket methodology
Research covering 200 ADSL service offerings from the incumbent ISP* in 18 Arab countries
Costs are presented for low speed (< 1 Mb/s) and medium speed (1-4 Mb/s) services separately.
– Low speed does not include 1024 kb/s offers
– Not all providers may offer services in both categories
– Not all providers may publish tariffs for both residential and business services
Total monthly cost calculated based on two usage profiles:
– Low usage: 1 GB and 10 hours per month, in 20 minute sessions.
– High usage: 5 GB and 30 hours per month, in 30 minute sessions.
Only “actual price” results are shown in this report.
– “Actual price” refers to the monthly cost paid by the customer, as opposed to the “Normalised” price per 1 Mb/s that can also be produced by the benchmarking system
The European data shown refer to the incumbent ISP* ADSL services in 30 European countries
Tariff data cover the cheapest form of installation, modem cost (if applicable), monthly rental, usage allowances and any usage charges.
Additional information on speed, web-space, email addresses, penalties with excess usage, and contract term duration is also included in the basic data and presented along with the cost results.
– To the extent this information is published by the provider
– Please also see the document on “AREGNET Price Benchmarking Methodology
* Incumbent ISP will normally mean the ISP owned by the incumbent operator in the country.
-
Page 51
Broadband data issues
Price data not available for broadband services in:
– Iraq
– Kuwait
– Somalia
Regulators have been offered the opportunity to comment on the tariff
information and the draft report.
Most providers in the Arab countries offer speeds down towards 128
kb/s. The highest speed from many providers is 2 Mb/s or below.
– The results shown focus on speeds from 256 kb/s and upwards. This
corresponds with the general definition of broadband.
– Speeds above 2 Mb/s are available in 8 of the 18 countries
-
Page 52
Residential low speed broadband
(below 1 Mb/s)
Low speed residential broadband services
29.72
30.78
32.07
34.27
40.31
41.74
50.83
52.62
59.00
61.07
68.14
70.19
73.48
92.11
106.00
150.51
159.13
749.54
5.21
98.31
40.42
105.64
- 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00
Egypt - 128 / 256
UAE - 64 / 256
Morocco - 128 / 256
Algeria - 32 / 256
Tunisia - 128 / 256
Bahrain - 64 / 256
Libya - 128 / 256
Yemen - 0 / 256
Oman - 128 / 512
Sudan - 64 / 256
Saudi Arabia - 128 / 256
Lebanon - 64 / 256
Jordan - 128 / 512
Syria - 64 / 256
Palestine - 64 / 256
Djibouti - 128 / 256
Mauritania - 64 / 256
Comoros - 64 / 256
Poland - 128 / 512
Malta - 2048 / 512
Europe simple average
Arab simple average
Actual prices in US$ / PPP per Month, VAT included
Low usage cost High usage cost
Lowest and highest price level in Europe
Red line = European low usage simple average
Blue line = Arab low usage simple average
European and Arab region averages
Total monthly cost
calculated based on two
usage baskets:
Low usage: 1 GB and
10 hours per month, in
20 minute sessions.
High usage: 5 GB and
30 hours per month, in
30 minute sessions.
-
Page 53
Residential medium speed broadband
(1 – 4 Mb/s)
Medium speed residential broadband services
48.75
55.50
56.27
78.37
85.66
92.50
93.25
93.98
99.05
102.67
110.02
155.94
181.71
204.21
251.46
452.37
11.69
95.31
33.07
135.11
- 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00
Morocco - 512 / 1024
Algeria - 64 / 1024
Tunisia - 512 / 1024
Qatar - 128 / 1024
Oman - 128 / 1024
UAE - 256 / 1024
Jordan - 256 / 1024
Saudi Arabia - 256 / 1024
Egypt - 256 / 1024
Bahrain - 256 / 1024
Yemen - 0 / 1024
Lebanon - 256 / 1024
Palestine - 192 / 1024
Syria - 256 / 1024
Sudan - 256 / 1024
Mauritania - 256 / 1024
Romania - 512 / 2048
Malta - 512 / 4096
Europe simple average
Arab simple average
Actual prices in US$ / PPP per Month, VAT included
Low usage cost High usage cost
Lowest and highest price level in Europe
Red line = European low usage simple average
Blue line = Arab low usage simple average
European and Arab region averages
Total monthly cost
calculated based on two
usage baskets:
Low usage: 1 GB and
10 hours per month, in
20 minute sessions.
High usage: 5 GB and
30 hours per month, in
30 minute sessions.
-
Page 54
Business low speed broadband
(below 1 Mb/s)
Low speed business broadband services
29.72
32.07
50.83
52.62
61.07
82.36
89.98
112.15
127.16
191.50
588.42
619.13
18.03
145.96
63.41
169.75
- 100.00 200.00 300.00 400.00 500.00 600.00 700.00
Egypt - 128 / 256
Morocco - 128 / 256
Libya - 128 / 256
Yemen - 0 / 256
Sudan - 64 / 256
Bahrain - 64 / 256
Lebanon - 64 / 256
UAE - 128 / 512
Jordan - 128 / 512
Algeria - 32 / 256
Tunisia - 256 / 512
Djibouti - 128 / 512
Cyprus - 192 / 512
Malta - 2048 / 512
Europe simple average
Arab simple average
Actual prices in US$ / PPP per Month, VAT included
Low usage cost High usage cost
Lowest and highest price level in Europe
Red line = European low usage simple average
Blue line = Arab low usage simple average
European and Arab region averages
Total monthly cost
calculated based on two
usage baskets:
Low usage: 1 GB and
10 hours per month, in
20 minute sessions.
High usage: 5 GB and
30 hours per month, in
30 minute sessions.
-
Page 55
Business medium speed broadband
(1 – 4 Mb/s)
Medium speed business broadband services
48.80
99.05
110.02
182.32
206.35
218.97
224.53
251.46
311.39
329.99
457.52
948.63
1,029.18
11.69
159.50
57.06
339.86
- 200.00 400.00 600.00 800.00 1,000.00 1,200.00
Morocco - 512 / 1024
Egypt - 256 / 1024
Yemen - 0 / 1024
Lebanon - 256 / 1024
Jordan - 256 / 1024
Oman - 256 / 1024
Qatar - 128 / 1024
Sudan - 256 / 1024
Bahrain - 256 / 1024
UAE - 256 / 1024
Algeria - 64 / 1024
Tunisia - 384 / 1024
Djibouti - 256 / 1024
Romania - 512 / 2048
Malta - 512 / 2048
Europe simple average
Arab simple average
Actual prices in US$ / PPP per Month, VAT included
Low usage cost High usage cost
Lowest and highest price level in Europe
Red line = European low usage simple average
Blue line = Arab low usage simple average
European and Arab region averages
Total monthly cost
calculated based on two
usage baskets:
Low usage: 1 GB and
10 hours per month, in
20 minute sessions.
High usage: 5 GB and
30 hours per month, in
30 minute sessions.
-
Page 56
Residential vs. Business broadband prices
Low usage basket
Business to residential price relationship in Arab
countries compared to European average.
Some business services offer higher speed and more space
than comparable residential services.
The reason for the high
business price in
Tunisia is the charge
to the incumbent operator
for network access.
Low speed Medium speed
Arab simple average 159% 248%
Europe simple average 157% 173%
- 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00
Bahrain - 256 / 1024
Morocco - 512 / 1024
Algeria - 64 / 1024
Tunisia - 512 / 1024
Qatar - 128 / 1024
Oman - 128 / 1024
UAE - 256 / 1024
Jordan - 256 / 1024
Saudi Arabia - 256 / 1024
Egypt - 256 / 1024
Yemen - 0 / 1024
Lebanon - 256 / 1024
Palestine - 192 / 1024
Syria - 256 / 1024
Sudan - 256 / 1024
Mauritania - 256 / 1024
Romania - 512 / 2048
Malta - 512 / 4096
Europe simple average
Arab simple average
Low speed (
-
Page 57
Residential vs. Business broadband prices
High usage basket
Business to residential price relationship in Arab
countries compared to European average.
Some business services offer higher speed and more space
than comparable residential services.
The reason for the high
business price in
Tunisia is the charge
to the incumbent operator
for network access.
Low speed (
-
Page 58
Broadband basket results 2009 - 2010
The basket results are affected by:
– Algeria: Elimination of lowest speed offers
– Bahrain: New range of packages
– Jordan: New range of packages
– Libya: Installation charge
– Qatar: Installation / modem price
– Saudi Arabia: Modem price increase, rental
reduction for high speeds
– Sudan: Lower installation prices
– Syria: Lower monthly rental
– Yemen: New range of packages with usage
limitations and lower prices.
Prices in Arab countries have gone down
significantly over the last year. But so has
prices in Europe.
Data shown cover both residential and
business prices, however, only residential
prices show as the cheapest per country.
Price change analysis is based on prices in national
currency for each country.
Broadband price change 2009 - 2010
-100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0%
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuw ait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Low Speed, Low usage
Low Speed, High usage
Medium Speed, Low usage
Medium Speed, High usage
-
Page 59
Broadband basket results 2008 - 2010
There have been significant price
reductions over the study period 2008 –
2010.
About half of the countries have seen price
reductions in some way
Price change analysis is based on prices in national
currency for each country.
Broadband price change 2008 - 2010
-100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0%
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuw ait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Low Speed, Low usage
Low Speed, High usage
Medium Speed, Low usage
Medium Speed, High usage
-
Page 60
Observations from Broadband basket results
Speeds above 4 Mb/s appear to be offered in 8 of the countries: – Bahrain, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, UAE.
– There were 5 last year
– The prices are very different between countries
Speeds below 256 kb/s are still common in most Arab countries – Speeds in this range are hardly offered in Europe any more
For speeds above 1 Mb/s the prices are generally higher than what is found in Europe
– For low speed broadband (0.256 - 1 Mb/s) the prices in the majority of the Arab countries tend to be similar to the European average, but the speeds used in Europe will be higher.
– In Europe the most common speeds are in the range 1-4 Mb/s and above, and lower speeds are in many cases not offered at all. There is a clear move towards higher speeds, only since last year the situation has changed significantly.
The average price relationship between business and residential offering is higher for medium to high speeds in Arab countries than European countries
– Please note that specific business offerings often include higher speeds, more email and web space, and different conditions.
Many services are very basic and do not offer many additional facilities
Only some of the countries apply usage-based prices
-
Page 61
Call cost comparison
The comparison of call cost is based on the actual cost of a 3 minute
call.
Costs are compared for Local calls, National calls, F2M calls and calls
to the USA
– At peak and off-peak times
– Off-peak meaning the lowest possible cost period
These comparisons have a much simpler methodology than the basket
comparisons shown elsewhere in this report, and will reflect the costs
for specific call types.
The results are presented with countries in alphabetical order as a
ranking of these results is not necessarily useful.
– Services with for example free calls (zero cost per call) may still have a
higher total cost to the end user
-
Page 62
Local call comparison
Many of the countries have the
same prices for local and national
calls.
Entries with call cost of 0.00 have
free calling included in the monthly
rental.
3 minute local call
0.30
0.09
0.18
0.09
0.12
0.19
0.00
0.63
0.48
0.12
0.28
0.00
0.06
0.00
0.15
0.04
0.05
0.00
0.15
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Arab simple average
US$ PPP, VAT included
Peak
Off-peak
No data
No data
No data
No data
No data
Peak average
Off-peak average
-
Page 63
National call comparison
Entries with call cost of 0.00 have
free calling included in the monthly
rental.
3 minute national call
0.30
0.09
0.18
0.32
0.14
0.19
0.00
0.63
0.48
0.12
0.28
0.00
0.25
0.00
0.15
0.04
0.50
0.33
0.22
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Arab simple average
US$ PPP, VAT included
Peak
Off-peak
No data
No data
No data
No data
Peak average
Off-peak average
-
Page 64
Fixed to Mobile (F2M) call comparison
Entries with call cost of 0.00 have
free calling included in the monthly
rental.
3 minute Fixed to Mobile call
0.79
0.17
0.55
0.59
0.51
0.66
1.76
1.10
1.63
0.44
2.46
0.50
0.50
0.00
0.45
0.11
1.13
0.33
0.76
0.00 0.50 1.00 1.50 2.00 2.50 3.00
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Arab simple average
US$ PPP, VAT included
Peak
Off-peak
No data
No data
No data
No data
No data
Peak average
Off-peak average
-
Page 65
Local vs. National
For entries with no bar in the graph,
please refer to the data in the
special local and national graphs.
3 minute local vs. national call (peak time)
0.30
0.09
0.18
0.09
0.12
0.19
0.63
0.48
0.12
0.28
0.06
0.04
0.05
0.15
0.30
0.09
0.48
0.12
0.25
0.00
0.50
0.33
0.22
0.04
0.28
0.63
0.18
0.14
0.19
0.32
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Arab simple average
US$ PPP, VAT included
Local
National
Local average
National average
-
Page 66
National vs. F2M
For entries with no bar in the graph,
please refer to the data in the
special local and national graphs.
3 minute national vs. F2M call (peak time)
0.30
0.09
0.18
0.32
0.14
0.19
0.63
0.48
0.12
0.28
0.25
0.04
0.50
0.22
0.79
0.17
1.63
0.44
0.50
0.00
1.13
0.33
0.76
0.59
0.66
0.51
0.55
1.10
2.46
0.11
0.00 0.50 1.00 1.50 2.00 2.50 3.00
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Arab simple average
US$ PPP, VAT included
National
F2M
National average
F2M average
-
Page 67
Making and receiving calls to/from mobile
The relationship between prices of
calls to a mobile phone and from a
mobile phone varies a lot between
countries.
To/From mobile
Peak Off-peak
Algeria 51% 51%
Bahrain -48% -44%
Comoros
Djibouti
Egypt 44% 44%
Iraq
Jordan 63% 13%
Kuwait
Lebanon -6% -6%
Libya 90% 90%
Mauritania -13% -13%
Morocco 33% 33%
Oman 25% 25%
Palestine 114% 59%
Qatar 6% -25%
Saudi Arabia 45% 45%
Somalia
Sudan -9% -9%
Syria -88% -85%
Tunisia 55% 35%
UAE 0% -11%
Yemen
Average -26% -27%
+ means F2M higher than M2F
- means F2M lower than M2F
Call prices (peak time) to and from mobile phones
-100% -50% 0% 50% 100% 150%
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuw ait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Cheaper to call to a
mobile than from
Cheaper to call from a
mobile than to
-
Page 68
International call comparison (call to USA)
3 minute call to USA
2.58
2.19
14.77
5.94
0.78
1.72
2.37
2.16
4.71
2.38
1.56
3.97
2.31
2.50
0.00
2.69
4.43
1.26
2.31
5.95
3.33
0 2 4 6 8 10 12 14 16
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Arab simple average
US$ PPP, VAT included
Peak
Off-peak
No data
No data
Peak average
Off-peak average
-
Page 69
National vs. International to USA
For entries with no bar in the graph,
please refer to the data in the
special national graph.
3 minute National vs. International call (peak time)
0.30
0.09
0.18
0.32
0.14
0.19
0.63
0.48
0.12
0.28
0.25
0.04
0.50
0.22
2.58
2.19
2.38
1.56
2.50
0.00
1.26
2.31
3.33
0.00
0.00
0.33
5.94
2.37
0.78
4.71
3.97
4.43
2.159
2.31
5.95
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00
Algeria
Bahrain
Comoros
Djibouti
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
UAE
Yemen
Arab simple average
US$ PPP, VAT included
National
Intn. USA
National average
Intn. USA average
-
Page 70
Call costs 2009 - 2010
There have been some changes in call charges 2009 - 2010
– A significant rebalancing in Algeria
– An increase in local call charges in Egypt and Morocco
– Significant reductions in call charges in Oman
– Changes in international call charges in Algeria, Egypt, Jordan,
Morocco, Oman and Palestine
-
Page 71
Observations from the call cost comparison
Prices of calls vary considerably between countries
Less than half of the countries do not offer off-peak rates for national
calls
About half of the countries do not offer off-peak rates for calls to USA
In some countries the local and/or national calls are “free”,
i.e. included in the monthly rental.
– Libya, Qatar, Somalia and UAE
In some countries there are several tariff options available, with
different call charges and fixed charges. This analysis is based on the
so called “basic” packages.
Ratios of national to international call prices indicate that rebalancing
of call charges has not yet taken place in many countries of the region
-
Page 72
Main findings from the benchmarking study
Fixed voice telephony – Prices are on average higher in Arab countries than in OECD countries
– There is a wide spread of price levels between the Arab countries
– Rates are not rebalanced, with low fixed and high usage costs
– Especially the international call charges are higher than in OECD countries
– Prices have gone down over the last year in some countries
– The lack of rebalancing will make it difficult for the incumbent operators to perform in a competitive market
Mobile telephony – Price levels in most Arab countries compare well with OECD countries, especially for low and
medium usage
– Rather uniform prices through the region
– Many countries have reduced prices over the last year
Leased Lines – Prices for high speed circuits are generally higher than in OECD countries
– There is a wide spread of prices between the Arab countries
Broadband – Price levels are significantly higher in Arab countries than in Europe
– The speed range offered is lower in Arab countries, and prices increase rapidly with speed.
– The higher rates will inhibit broadband penetration
– Higher speeds are available in more countries than a year ago
Generally prices in Arab countries have gone down, most with Broadband services. But since prices have gone down in other parts of the world as well the gap between prices in Arab countries and prices in OECD / European countries remains.
These were the conclusions in 2009, and they are still valid in 2010!
-
Page 73
Reference information
Exchange rates and VAT
Prices for services in Iraq are given in US$
Exchange rates taken from the Oanda web service on the 1 January 2010.
PPPs are based on World Band CPL for 2005 (published 2007, latest available).
Related to: US$ US$ PPP % Currency
Algeria 0.014150 0.028300 17.0 % DZD
Bahrain 2.680700 4.061667 0.0 % BHD
Comoros 0.002913 0.005111 0.0 % KMF
Djibouti 0.005907 0.012306 19.0 % DJF
Egypt 0.184900 0.660357 10.0 % EGP
Iraq 1.000000 2.631579 0.0 % USDx
Jordan 1.412400 2.615556 16.0 % JOD
Kuwait 3.487400 4.777260 0.0 % KWD
Lebanon 0.000672 0.001199 10.0 % LBP
Libya 0.822400 2.056000 0.0 % LYD
Mauritania 0.003875 0.010473 0.0 % MRO
Morocco 0.131100 0.238364 20.0 % MAD
Oman 2.666100 4.443500 0.0 % OMR
Palestine 0.264500 1.322500 0.0 % ILS
Qatar 0.278100 0.370800 0.0 % QAR
Saudi Arabia 0.266800 0.416875 0.0 % SAR
Somalia 0.000688 0.002292 0.0 % SOS
Sudan 0.437700 0.994773 10.0 % SDG
Syria 0.022420 0.059000 0.0 % SYP
Tunisia 0.755900 1.679778 18.0 % TND
UAE 0.272300 0.363067 0.0 % AED
Yemen 0.004920 0.013667 10.0 % YER
UK 1.612900 1.366864 17.5 % GBP
USA 1.000000 1.000000 10.0 % USD
France 1.436900 1.249478 19.6 % EUR
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Purchasing Power Parities (PPP)
PPPs are used to incorporate not only the financial differences between exchange rates, but also the differences in the state of the economies as seen through the purchasing power of the citizens in each country.
– PPPs are based on an assessment of the price levels for a corresponding basket of goods and services in each country. i.e. how much the same basket costs in different countries.
– PPPs are normally stated based on the US$ or some other reference currency, e.g. Euro. This study uses the US$ PPPs calculated by the World Bank in 2007 based on 2005 data.
– PPPs are normally calculated every 4-6 years due to the effort required. CPLs can be adjusted more regularly, e.g. the OECD publishes CPLs on a monthly basis.
In order to update these values the Comparative Price Level (CPL) is used. CPL is the relationship between the PPP and the reference market exchange rate at the time the PPP was calculated.
– CPL is used together with updated, i.e. current, exchange rates to produce an “updated” PPP value.
– CPL = RatePPP / RateReference – PPPCurrent = RateMarket * CPL
The advantage of using PPPs is that the results reflect the price differences as seen by the end users in each country based on their income and other costs.
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Acronyms used in the context of this report
OECD: Organisation of Economic Co-operation and Development
OECD countries: Australia, Austria, Belgium, Canada, Czech Rep., Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Rep., Spain, Sweden, Switzerland, Turkey, UK, USA
AREGNET: Arab Regulators Network.
AREGNET member countries: Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, UAE, Yemen
VAT: Value Added Tax, a consumption tax system used in most European countries and some Arab countries.
PPP: