How mobile telecommunications in the MENA region are creating jobs and improving everyday life

(Al Bawaba Via Thomson Dialog NewsEdge)The mobile phone industry in the Middle East and North Africa (MENA) region is creating hundreds of thousands of new jobs inside and outside the industry, boosting economic growth and fostering social harmony and security, according to a new report released today.

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MTC, the fastest growing mobile operator in the region, published the results of a first-of-its-kind detailed survey of the industry, "Mobility for One Language, Diverse Cultures" at the 3GSM World Congress at Barcelona.

The report highlights both economic and social effects of mobile communications usage on the MENA region. Its results show that mobile revenues alone accounted for five percent of the increase in GDP in Bahrain between 2002 and 2004. In Jordan, the number of employees in the mobile sector increased by 42 percent over the four-year period of liberalization. Elsewhere, the data produced in this extensive report revealed that some mobile operators represent more than 30 percent of a total stock market such as Egypts Cairo and Alexandria Stock Exchange (CASE) and can result in a return of around $33,500 for each $1,000 invested, as was the case on the Kuwait Stock Exchange.

According to Dr. Saad Al Barrak, Chief Executive Officer of MTC Group, "The report shows the potential of mobile communications to enhance not only the economic position of countries and people but also to change the social fabric of our communities. At MTC, we have always believed that mobile communications are part of the framework of societies and the daily lives of people and this report attests to that fact." Al Barrak added, "We are very interested by the finding that in Egypt for every job created in the mobile sector, eight other jobs are created in different sectors of the economy, as well as the conclusion that if ICT (Information and Communication Technologies) investment in Egypt were doubled it would create 1.3 million new jobs and the rate of GDP growth would rocket from 4 percent to 8 percent and more. This makes us ever keener on winning the third mobile license in Egypt and contributing to that growth potential, as we did in Iraq and other countries of the region." The report conducted by independent research firm Zawya is divided into five major segments, including an overview of the regions mobile sector, economic and social impacts of mobile phones, the impact of the mobile phone in Iraq (analyzed through a survey done by Dubai-based Money Line) and a thorough MENA survey carried out in six different countries by Nicosia-based ACNielsen.

"The undertaking of this report was a challenging task, especially for a region largely lacking in essential statistics," said Tarek El Zein, the Project Manager at Zawya. "The results have shown how, when and where mobile phones have affected the lives of the many people and economies of the MENA region." On the social side, MTCs report reveals how the mobile phone has become the Arab worlds most commonly used leading-edge technology. From research by a sociologist in Beirut, to a fact-finding report by a journalist in Jordans Wadi Rum, passing by the Palestinian Territories, this side of the report shows how the mobile has become an integral part of life in the MENA region. Even television has not been spared by the ever growing influence of the technology, according to another part of the research.

In the Iraqi section, a survey conducted in three major cities (Baghdad, Basra and Najaf) by Money Line showed how 95 percent of Iraqis use their phone to ensure the safety of their loved ones and 43 percent consider it as their best friend. What is most surprising is that although the widespread use of mobile phones has only recently been introduced in Iraq, 83 percent see it as a necessity in life and 77 percent said it made life easier. "This indicates the positive role that mobile communications has provided to Iraqi society both on an economic and social level," said Al Barrak.

Finally, a survey conducted in six countries by ACNielsen shows in detail how the people of the region use their phones. The findings suggest that Moroccans tend to call their siblings the most, while in Saudi Arabia 65 percent of interviewees call their friends. The Lebanese who have a more even spread of calls tend to call boyfriends or girlfriends the most (38 percent of responses).

On the micro-business level, the survey found that the mobile phone has become a vital tool for businesses with a reported 32 percent increase in profitability for those interviewed in Bahrain and Jordan and a 25 percent gain in Tunisia. Additionally, 62 percent of respondents in Tunisia believed the mobile has helped lower costs by reducing travel needs.

The list of contributors to the report includes corporate and academic names such as Booz Allen Hamilton, Global Investment House, United Nations, American University of Cairo, Connexus Consulting, Lebanese University, Palestine Monitor, Journal of Middle East Broadcasters, and the BBC.

AL Barrak concluded, "with over 14 million customers, we at MTC consider the commissioning and findings of this report as a further step to understanding the needs of our customers and the potential of mobile communications. We hope that all who read it will benefit and will find it interesting." The 140-page report, "Mobility for One Language, Diverse Cultures The socio-economic impact of mobile phones in the Arab world," is available in its entirety on www.mtctelecom.com Mobile Telecommunications Company (MTC) is the pioneer of mobile services in the Middle East and now a major player in Africa. We began life in 1983 in Kuwait as the regions first mobile operator, and since the initiation of our "3x3x3" expansion strategy in 2002, we have expanded rapidly.

As a leading mobile and data services operator in five Middle Eastern and 14 sub-Saharan African countries with 6500 employees, we provide a comprehensive range of mobile voice and data services to over 13 million individual and business customers.

We operate in Kuwait and Bahrain as mtc-vodafone, in Jordan as Fastlink, in Iraq as mtc atheer, in Lebanon as mtc touch, and in 14 sub-Saharan countries in Africa as Celtel: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Niger, Sierra Leone, Sudan, Tanzania, Uganda and Zambia and most recently Madagascar.

Listed on the Kuwait Stock Exchange (Code; Tele), MTCs market capitalization exceeded US$13 billion as of December 31, 2005. For more visit: www.mtctelecom.com 2006 Al Bawaba (www.albawaba.com)