Wednesday, February 22, 2006

In Iraq and Occupied Territories, security crises spur mobile phone usage

The Israeli occupation has been the most significant obstacle to the development of the telecommunications sector in the Occupied Territories, reports TerraNet, but paradoxically has increased the necessity of reliable communication, according to a landmark survey released Wednesday.

"The survey of mobile phone usage in the MENA region, which was sponsored by MTC Group, includes case studies of the telecom sectors in the Occupied Territories and Iraq. Both cases highlight the social significance in politically unstable countries of mobile phones, which link communities and families who have no other means of regular communication and help to ensure security.

"... In Palestine, mobile phones are indispensable communication tools, linking residents to displaced family members and the diaspora population, especially since the construction of Israel' s separation barrier. The Palestine Telecommunications Company and its mobile subsidiary Jawwal officials reported that mobile phones and supporting products - such as SIM cards, headsets, and chargers - are frequently held at the border for three to 12 months, meaning that by the time they reach Palestine they have lost market appeal. Also Jawwal is unable to provide consistent service to subscribers since it must get Israeli approval before constructing new mobile towers to improve reception.

... In Iraq in 2004, nationwide mobile service was provided by three companies for the first time, stimulating a mobile penetration rate unprecedented in the MENA region, with the level of mobile subscription reaching 3.45 million in March 2005. Mobile penetration has now reached 12.5 percent of the populace."




The Israeli occupation has been the most significant obstacle to the development of the telecommunications sector in the Occupied Territories, but paradoxically has increased the necessity of reliable communication, according to a landmark survey released Wednesday.

Meanwhile the security situation in Iraq has prompted rapid telecom penetration, since restricted mobility coupled with daily violence produces the need to remain in contact with family members.

The survey of mobile phone usage in the MENA region, which was sponsored by MTC Group, includes case studies of the telecom sectors in the Occupied Territories and Iraq. Both cases highlight the social significance in politically unstable countries of mobile phones, which link communities and families who have no other means of regular communication and help to ensure security.

In Palestine, mobile phones are indispensable communication tools, linking residents to displaced family members and the diaspora population, especially since the construction of Israel' s separation barrier. The report explains that despite progress made by the Palestinian Authority - which retains nominal control of the market through the Palestine Telecommunications Company (Paltel) and its mobile subsidiary Jawwal - the terms of the Oslo Accords preclude further growth of the mobile sector without Israel' s assent.

Paltel is most constrained by Article 36 of the Interim Agreement of Telecommunications, which allots the PA a frequency level adequate to support only 100,000 subscribers - an allotment based on 1993 market growth estimates. The market grew much faster than expected, however; there are now over 600,000 underserved Jawwal subscribers.

Furthermore, the customs stipulations of Oslo provide Israel with lawful methods of disrupting the Palestinian mobile market, since the PA is unable to control the flow of goods and services across its borders. Under the terms of the " customs envelope," imported products must pass Israeli inspections at the Kami border crossing before they can enter Palestine. Paltel and Jawwal officials reported that mobile phones and supporting products - such as SIM cards, headsets, and chargers - are frequently held at the border for three to 12 months, meaning that by the time they reach Palestine they have lost market appeal. Also Jawwal is unable to provide consistent service to subscribers since it must get Israeli approval before constructing new mobile towers to improve reception.

Paltel' s autonomy is further undermined by illegal competition from Israeli mobile providers, the report said. Jawwal is the only licensed mobile service provider in Palestine, but consumers are offered the choice of purchasing SIM cards from four Israeli operators who do not adhere to the taxation or consumer protection regulations of Palestine' s telecom sector. Jawwal officials also complain of Israeli " dumping," in which companies flood the market with cheap SIM cards around the holidays. The illegal competitors do not pay licensing fees to the PA and purposefully interfere with Jawwal frequencies in order to lure disaffected subscribers to their networks, the report said.

Despite the many obstacles stemming from the Israeli occupation, the report concludes that Paltel is a competitive regional player. However, the only way for Paltel to cater to the rising demand for mobile technology in Palestine is to improve telecom infrastructure - a goal that can only be realized, the report says, through foreign investment for which the " minimum precondition is the faithful implementation of the Oslo Accords."

In Iraq in 2004, nationwide mobile service was provided by three companies for the first time, stimulating a mobile penetration rate unprecedented in the MENA region, with the level of mobile subscription reaching 3.45 million in March 2005. Mobile penetration has now reached 12.5 percent of the populace. The results of one survey show that neither gender nor income-level influence mobile phone usage, with Iraqis across the socioeconomic spectrum jumping on the mobile bandwagon. Age proved to be the only influential factor.

The report ultimately concludes: " The high insecurity situation in present-day Iraq has proved to be the best promoter for mobile services." Mobile phones are primarily used to inquire about the safety of friends and family members in light of daily security incidents and travel restrictions. Sixty-four percent of survey respondents said that mobile phones " allow users to better handle emergencies," with 91 percent saying they used mobiles mainly to make sure their family was safe.







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