Middle East – Wireline and Fixed Broadband Market Statistics and Forecasts- Q2 2015

Fixed Broadband by Technology

London 1st September- The total number of connections to fixed broadband technologies in the Middle East reached 10.5 million by the end of Q2 2015, an increase of 4% on Q1 2015 and 17% on the same quarter in 2014.


In Q2 2015, the number of xDSL connections, as the dominant access technology in Middle East passed 8 million lines, represented 70% of the fixed broadband market (Figure 1).
Figure 1. Broadband Connections by Technology, Q2 2015
Middle East1

FTTx connections, as the second largest access technology, totalled 1.5 million or 13% of the market. Fibre technologies experienced a net gain of 13% since Q1 2015 – which means that FTTx is the fastest growing technology in Middle East. Other fixed broadband technologies (including WiMAX, leased line and Satellite) have a relatively high regional market share (12%) and their number of connections rose to 1.4 million at the end of Q2.  Cable Modem, with nearly 740,000 connections, is the fourth most common fixed broadband technology in the region and is mainly deployed in Israel.

 

Quantum Web predicts that xDSL will remain the dominant technology for broadband access in Middle East. By the end of 2020, the number of xDSL connections will rise to 8.5 million, representing 70% of total broadband market in the continent.  The other main technology groups will be FTTx and other fixed broadband technologies accounting for 13% and 12% of the Middle East broadband market respectively (Figure 2).

Figure 2. Broadband Connections by Technology, Q4 2020
Middle East2

 

Fixed Broadband by Country

There has been little change overall at the country level since Q1 2015.

Iran continues to be the largest market in the region, with over 4 million broadband connections and 34% of the overall market in Q2 2015. This is primarily driven by a strong performance by the largest region’s wireline connected country, (32 million wireline connections).

Elsewhere in the region, Saudi Arabia posted a slower quarterly growth than Iran in Q2 and with 2.8 million broadband connections and 23% market share.  Israel is the third largest broadband country in the continent followed by UAE (see Figure 3 for further details).

Middle East3

As for growth performance, Iraq is the fastest growing market in the region (up 33% vs Q1), followed by Yemen (8%).  Iran and West Bank and Gaza both saw 7% growth in Q2 vs Q1 2015.  Jordan and Kuwait fixed broadband market shrank by 1% in the Q2 2015 due to convergence of subscribers from xDSL to LTE.