Arab Mobile Communication Studies

BEIRUT: The biggest survey ever carried out into the mobile-phone industry in the Middle East has produced a series of astonishing statistics as well as some insightful observations on the social changes it has effected throughout the region. The industry in the Middle East and North Africa (MENA) is creating hundreds of thousands of new jobs inside and outside the sector, boosting economic growth and fostering social harmony and security, according to the report published Wednesday.

It says there are around 75 million subscribers in the MENA, using services offered by 38 mobile operators in 18 countries. With a 2005 penetration rate standing at nearly 25 percent - compared to 15 percent only two years ago - mobile phones have become a "big driver for economic development and job creation," claims the report, in a region where unemployment rates on average are 15 percent. For every job created in the mobile sector in Egypt, up to eight other jobs are created in different sectors of the economy, says the report, "Mobility for One Language, Diverse Cultures."

The findings of the report, commissioned by the MTC Group, also show mobile revenues alone accounted for 5 percent of the rise 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.

The industry has also had a big effect on Arab capital markets, with cases where telecom companies represent over 30 percent of capitalization. Telecom company listings have single-handedly jump-started dormant markets with IPOs oversubscribed by as much as 58 times. $1,000 invested since the listing date in Etihad Etisalat, Mobinil, Orascom Telecom and MTC would have generated $14,500, $12,000, $11,500 and $33,500, respectively.

MTC published the results of its survey at the 3GSM World Congress in Barcelona. Saad al-Barrak, chief executive officer of MTC Group, said: "We are very interested by the conclusion that if ICT 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."

MTC Group has already signaled its intention to apply for Egypt's third cellular license.

Based on detailed survey results obtained by ACNielsen, the report outlines usage patterns and creates a profile of typical mobile-phone users in each country. The findings suggest 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).

Mobile-telephone charges in Lebanon, where cellular phone usage has peaked at about a quarter of the population, are the most expensive in the MENA region. Though mobile technology is not correlated with age in Beirut, younger users take advantage of all of a phone's facilities, including its camera, organizer, calculator and Internet capability, while those over 55 use phones only for voice communication.

Another theme of the report is the impact of mobile telephones on small and medium businesses. Based on the assumption that mobile phones will soon exceed fixed lines in MENA states, the report concludes that businesses in economically marginalized rural communities will benefit most from mobile-phone penetration.

Mobile phones are used for business in Lebanon more than any other MENA country, with one survey concluding that 62 percent of mobile communication relates to business. Respondents from Lebanon said that the ability to make business calls was the one benefit that enhanced their lives the most.

The survey reported a 32-percent increase in profitability for business people interviewed in Bahrain and Jordan and a 25-percent gain in Tunisia. Additionally, 62 percent of respondents in Tunisia believed the mobile phone has helped lower costs by reducing travel needs.

Finally, the report analyzes the consequences of mobile-phone penetration across all genres of media. In a case study of Saudi Arabia, where the trend of media convergence was initiated, the show Star Academy spawned SMS interactive television. The revenues from SMS-television marriage now account for at least 70 percent of the annual gross for most music and gaming television channels in the region.