Market Trends of UAE Telecom Industry
Data and Messaging Services to Hold Major Share
- Data and messaging services are witnessing a surge in demand in the United Arab Emirates due to the rising need for efficient and reliable internet services in businesses as the digitization trend is gaining momentum. In addition, growing 5G deployment, cost-effective bundled messaging and data packages from market vendors, a robust network infrastructure coupled with rising use cases of artificial intelligence, IoT, smart Home, metaverse, and UHD cloud gaming are driving the demand for data and messaging services growth of the segment.
- Major market vendors are launching innovative broadband services to add new revenue streams and elevate business and residential users' experience for high-speed internet connectivity within indoor environments, thus indicating demand for fixed networks.
- For instance, in June 2023, Nokia announced that Du, from Emirates Integrated Telecommunication Company, is deploying Nokia's Multi-Access Gateway (MAG) to provide broadband services to business and residential users over 4G/5G fixed-wireless access (FWA) in addition to the mobile services. The telecom company is leveraging the Nokia FastMile 5G gateways, MAG, and Nokia professional services. Furthermore, as per the survey by ITU and OECD, the number of mobile broadband connections per 100 inhabitants in UAE is estimated to increase by 16.4% by 2028.
- Internet requirements are rising due to industries moving to cloud solutions and adoption of advanced technologies in business processes, and consumers are moving towards online shopping in the country, fueling both Fixed and mobile data services. In addition, the high number of internet users and social media users also augment the growth of the market.
- Moreover, market vendors are introducing innovative and flexible data and messaging packages, attracting consumers to use their services. For instance, Etisalat's Wasel Flexi plans allow customers to make their own plans according to their mobile needs. For small and medium-sized businesses, the company also offers Data Only Plans that are agile and rich in benefits, offering supersonic data with a selection between 500MB to 100GB, from only AED 29/month. Further, Du offers data-only SIM for postpaid customers and Flexi plans for prepaid customers, which deliver Double Data for six months on 4GB plus plans.
- Overall, the demand for data and messaging services tends to grow at a significant rate in coming years, largely supported by growing internet and social media penetration, adoption of advanced technologies among businesses, increasing need for reliable and high-speed connectivity, innovative services launches by market vendors coupled with cost-effective data and messaging package offered by the telecom vendors.
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Mobile Network to be the Fastest Growing Segment
- The increasing use of devices per user, high rates of replacement, and users shifting from traditional phones to smartphones with the drop in prices were the significant factors that contributed to the growth of the mobile network segment.
- Also there has also been the introduction of 5G, and the increase in mobile internet speed is expected to fuel further the growth of the mobile network segment in the country. Also, the United Arab Emirates has a robust mobile market dominated by major players, including Etisalat and Du, who are majority government-owned. Companies operating in these countries expand their business as the mobile network continuously evolves.
- For instance, In February 2023, Du collaborated with Huawei to develop 5.5G (5G-Advanced) technology to provide significantly faster data speeds, lower latency, and increased energy efficiency. It has also selected Nokia to upgrade its existing 5G network, with the vendor providing services such as equipment replacement and automated transport slicing. Etisalat will launch its commercial 5G standalone network in late February 2023.
- Moreover, the country's Telecommunications and Digital Government Regulatory Authority has initiated the United IX program, which merges telecom providers' internet traffic exchange platforms e& and du. The program was completed in November 2022.
- The growing mobile network in the country has elevated the demand for data and messaging services. Implementing 5G technology has amplified internet speeds and facilitated smoother and more efficient data transmission. This has led to a surge in data-hungry activities such as high-definition video streaming, online gaming, and other bandwidth-intensive applications.
- The United Arab Emirates has experienced a steady and significant increase in telecom subscribers over recent years. The aggressive rollout and adoption of 5G technology by major telecom operators have attracted consumers seeking faster and more reliable connectivity. This push towards cutting-edge technology has encouraged more subscriptions. Additionally, the country ranks second in the survey by Speedtest, with an average mobile internet speed of 175.34 Mbps. Such technological advancements introduced by the regional mobile telecom vendors fuel the demand for mobile telecom services.
