For anyone interested in the current state of the Middle East’s telecommunications industry, it is an interesting time. At present, many industry experts have suggested that the market here has hit its peak. Some countries have even seen contractions in the overall telecommunications market as a result. With figures such as a 120% mobile penetration figure and falling expat numbers to help grow demand, the sector here needed a new strategy to progress into the future.
The good news for Middle Eastern telecoms is that this is beginning to happen. Many providers around the region have begun to roll out new plans that will usher in a digital telecoms revolution.
What new technologies are expected to help?
When it comes to keeping this sector moving forward as it should and in good health, the below are some of the key plans that telecoms providers in the Middle East have announced:
- More digital capabilities – one of the big changes that telecoms in the region will tap into is the digital nature of how smartphones or mobile devices are used now. Much information is consumed via the internet on these devices, and telecoms within the Middle East needs to adapt to this demand. In combination with this, new pricing models are expected around usage and data.
- Focused acquisitions – one interesting lesson that Middle Eastern telecommunications looks likely to learn from other regions is that of deliberate acquisitions in related industries. Think of Orange buying a 65% stake in a French bank so that it could launch a digital-only bank itself. It is expected that regional operators in the Middle East will step up their game here to compete with the global providers.
- 5G – one key challenge currently facing Middle Eastern telecoms is getting ready to have 5G installed in the region by 2020. It is thought that many local providers in the region will look to make efficiency savings to help fund this and may even band together to make it more affordable.
- Work with regulators – one area that will help resolve the current situation of market saturation is local telecoms providers working more closely with regulators. This will enable them to move into other areas and pursue far-reaching strategic goals to expand the Middle Eastern telecoms market eventually.
Local providers are key
To escape the shrinking market that is currently in play within the whole region, Middle Eastern telecoms companies are key to the solution. Major regional players that have helped in the past and will surely help in the future include Investcom LLC. Led by Najib Mikati as part of M1 Group, it is a superb example of a Middle Eastern telecommunications company that is flourishing.
Other key local companies in the area include Kuwait’s Zain, STC from Saudi Arabia, and Du from Dubai. These are all helping to reinvent the current situation in the Middle East and allowing next-generation digital technology to increase market size.
The future looks bright
With the digital transformation of Middle Eastern telecoms underway and 5G not far off, the current state of the sector here is set to change. Where recent years had seen a slow-down in the market, these recent changes are likely to see it pick up again.
