AREGNET Price Benchmarking Study 2012
AREGNET Price Benchmarking Study 2012 UAE Ranking Among GCC Countries provides insights into the pricing competitiveness of telecommunications services in the UAE compared to other GCC countries. The study covers various service baskets including PSTN, mobile, fixed broadband, mobile broadband, and leased lines. It highlights the UAE's rankings, pricing trends, and competitiveness in the region.
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AREGNET Price Benchmarking Study 2012 UAE Ranking Among GCC Countries
Table of Contents Page 3 Introduction . 4 Summary of overall results from the AREGNET study . . ... TRA Index .. . ... 5 6 PSTN Tariffs baskets . 12 Mobile Tariffs baskets Fixed Broadband Tariffs baskets . 17 Mobile Broadband Tariffs baskets ... 23 Leased line Tariffs baskets ... 28 Annexes Annex 1: Table of Results . 34 35 Annex 2: PSTN baskets Methodology 36 Annex 3: Mobile baskets Methodology .. . 37 Annex 4: Fixed Broadband baskets Methodology 38 Annex 5: Mobile Broadband baskets Methodology .. Annex 6: Leased Line basket Methodology..... .. 39 2 Page
Introduction The Retail Tariff benchmarking study is one of the AREGNET studies originally initiated by TRA Bahrain in 2008 and updated annually. The 2012 update was released in March 2013. This AREGNET study allows readers to compare the retail price levels for telecommunications services in the Arab countries, and to draw comparisons with the OECD averages. The purpose of this TRA document is to summarize the UAE s rankings compared with those of other GCC countries for each of the following services: Fixed voice (PSTN) Mobile telephony Leased Lines Broadband ADSL Mobile broadband 3 Page OECD : Organization for Economic Co- operation and Development)
Summary of overall results from the AREGNET study PSTN service UAE prices for residential PSTN service are among the lowest in the GCC. Residential PSTN services are much cheaper than business PSTN services. Mobile service UAE prices for mobile services are among the lowest in the GCC and the Arab region. Fixed Broadband service UAE prices for low speed (>256 Kbps) residential fixed broadband are among the lowest in the GCC and the Arab region. UAE prices for medium speed (2-8 Mbps) residential fixed broadband are among the lowest prices in the GCC. UAE is one of only eight Arab countries to offer high speed (>15 Mb/s) broadband UAE prices for high speed broadband are the second cheapest in the GCC after Bahrain Mobile Broadband service UAE prices for medium speed (2-8 Mbps) mobile broadband are among the lowest in the GCC. UAE prices for high speed (> 8 Mbps) mobile broadband are relatively high compared to other GCC countries. . Leased Line service UAE prices for leased line service are the forth lowest in the GCC. 4 Page
TRA Index To enable comparisons at the service levels, the TRA has developed an index based on the outputs of the study. This index works by combining countries scores on all baskets related to a specific service, e.g. all PSTN baskets (low, medium, and high speeds). Based on the TRA Index, the UAE ranked as follows: UAE Ranking among GCC countries Services PSTN services No. 1 Mobile services No. 1 Fixed Broadband services No. 1 Mobile Broadband services No. 3 Leased Line services No. 4 5 Page
PSTN Tariffs 6 Page
Residential PSTN Service low usage basket Low usage PSTN residential basket (20 calls/month) OECD average 24.15 GCC Countries Ranking Arab average 21.59 UAE No 1 UAE 8.52 Bahrain No 2 Bahrain 10.37 Qatar No 3 Qatar 15.81 Oman No 4 Oman 24.13 Saudi Arabia No 5 Saudi Arabia 25.15 0 5 10 15 20 25 30 USD/PPP UAE ranked first among GCC and Arab countries for the price of low usage PSTN residential services (20 calls/month) followed by Bahrain. UAE prices for low usage basket are much lower than OECD and Arab averages. 7 Page
Residential PSTN Service Medium usage basket Medium usage PSTN residential basket (140 calls/month) OECD average 51.1 GCC Countries Ranking Arab average 82.41 UAE No 1 UAE 28.99 Qatar No 2 Qatar 45.92 Bahrain No 3 Bahrain 49.63 Oman No 4 Oman 62.91 Saudi Arabia No 5 Saudi Arabia 63.98 0 20 40 60 80 100 USD/PPP UAE ranked first among GCC and Arab countries in terms of prices of the medium usage PSTN residential basket (140 calls/month). UAE prices for the medium usage basket are lower than OECD and Arab averages. 8 Page
Residential PSTN Service high usage basket High usage PSTN residential basket (420 calls/month) OECD average 76.26 GCC Countries Ranking Arab average 147.5 UAE No 1 UAE 43.78 Qatar No 2 Qatar 61.44 Saudi Arabia No 3 Saudi Arabia 72.2 Oman No 4 Oman 75.15 Bahrain No 5 Bahrain 117.74 0 20 40 60 80 100 120 140 160 USD/PPP UAE ranked first among GCC and Arab countries for the price of the high usage PSTN residential basket (420 calls/month) UAE prices for the high usage basket are lower than OECD average and Arab averages. 9 Page
Business PSTN Service low usage basket Low usage PSTN business basket (100 calls/month) OECD 37.57 GCC Countries Ranking Arab average 53.05 Bahrain No 1 UAE 35.77 UAE No 2 Bahrain 30.61 Saudi Arabia No 3 Saudi Arabia 42.42 Oman No 4 Oman 43.05 Qatar No 5 Qatar 61.96 0 10 20 30 40 50 60 70 USD/PPP UAE ranked second among GCC countries and third compared to Arab countries for the price of the low usage PSTN business basket (100 calls/month). UAE prices for the low usage basket are lower than OECD average and Arab averages. 10 Page
Business PSTN Service High usage basket High usage PSTN business basket (260 calls/month) OECD average 75.69 Arab average 166.92 GCC Countries Ranking Bahrain 104.03 Bahrain No 1 UAE No 2 UAE 106.92 Saudi Arabia No 3 Saudi Arabia 111.39 Oman No 4 Oman 116.74 Qatar No 5 Qatar 131.7 0 50 100 150 200 USD/PPP UAE ranked second among GCC and Arab countries for the price of the high usage PSTN business basket (260 calls/month). UAE prices for the high usage basket are lower than Arab average prices but higher than OECD averages. 11 Page
Mobile Tariffs 12 Page
Mobile Service Low usage basket Low Usage Mobile basket (30 calls/month) OECD average 14.35 GCC Countries Ranking Arab average 22.02 UAE 12.94 Saudi Arabia No 1 Saudi Arabia 11.23 UAE No 2 Kuwait 13.8 Kuwait No 3 Bahrain Bahrain No 4 15.46 Qatar No 5 Qatar 16.44 Oman No 6 Oman 17.5 0 5 10 15 20 25 USD/PPP UAE ranked second among GCC countries for the price of the Low usage basket (30 calls/month). UAE prices for the Low usage basket are lower than OECD and Arab averages. 13 Page
Mobile Service Medium usage basket Medium Usage Mobile basket (300 calls/month) OECD average 47.26 GCC Countries Ranking Arab average 133.6 UAE UAE No 1 62.1 Bahrain No 2 Bahrain 71.73 Qatar No 3 Qatar 87.18 Saudi Arabia No 4 Saudi Arabia 94.6 Kuwait No 5 Kuwait 96.57 Oman 103.97 0 50 100 150 USD/PPP UAE ranked first among GCC and third compared to Arab countries for the price of the Medium usage basket (300 calls/month). UAE prices for the medium usage basket are much higher than OECD averages but lower than Arab averages. 14 Page
Mobile Service High usage basket High usage Mobile basket (900 calls/month) OECD average 86.22 GCC Countries Ranking Arab average 340.3 Bahrain No 1 UAE 193.3 Kuwait No 2 Bahrain 142.46 UAE No 3 Kuwait 177.31 Saudi Arabia No 4 Qatar 188.48 Oman No 5 Saudi Arabia 237.7 Qatar No 6 Oman 267.44 0 100 200 300 400 USD/PPP UAE ranked third among GCC countries for the price of the High usage mobile basket (900 calls/month). UAE prices for the high usage basket are higher than OECD averages but lower than Arab averages. 15 Page
Mobile Service SMS basket SMS basket OECD average 16.02 Arab average 43.74 GCC Countries Ranking UAE 28.38 Oman No 1 Oman 21.54 Saudi Arabia No 2 Saudi Arabia 23.04 UAE No 3 Kuwait 39.89 Kuwait No 4 Bahrain 41.39 Bahrain No 5 Qatar Qatar 45.19 No 6 0 10 20 30 40 50 USD/PPP UAE ranked third among GCC countries for the SMS basket (400 SMS/month). UAE prices for the SMS basket are higher than OECD averages but lower than Arab averages. 16 Page
Fixed Broadband Tariffs 17 Page
Residential Fixed broadband Service Low speed Low usage/low speed (256 kb/s 2.5 Mb/s) OECD average 24.4 Arab average 54.23 GCC Countries Ranking UAE 33.12 UAE No 1 Bahrain Bahrain No 2 40.48 Oman No 3 Oman 57.62 Saudi Arabia No 4 Saudi Arabia 68.11 Qatar No 5 Qatar 77.47 0 20 40 60 80 100 USD/PPP UAE ranked first among GCC countries for the price of low speed fixed broadband residential services. UAE prices for low speed are slightly higher than OECD averages but lower than Arab averages. 18 Page
Residential Fixed broadband Service Medium speed Low usage/Medium speed (2.5 15 Mb/s) OECD average 27 Ranking (1) GCC Countries Arab average 154.46 Bahrain No 1 UAE 95 UAE No 2 Bahrain 56.87 Oman No 3 Oman 109.7 Saudi Arabia No 4 Saudi Arabia 109.78 Qatar No 5 Qatar 150.78 0 50 100 150 200 USD/PPP UAE ranked second among GCC countries for the price of medium speed fixed broadband residential services. UAE prices for medium speed are much higher than OECD averages but lower than Arab averages. 19 Page (1) Only 14 Arab countries offer this speed
Business Fixed broadband Service Low speed Low usage/Low speed (256 Kb/s 2.5 Mb/s) OECD average 27.83 GCC Countries Ranking Arab average 148.65 Oman No 1 UAE 112.15 Bahrain No 2 Oman 57.62 UAE No 3 Bahrain 80.97 Saudi Arabia No 4 Saudi Arabia 160.71 Qatar No 5 Qatar 224.08 0 50 100 150 200 250 USD/PPP UAE ranked third among GCC countries for the price of low speed fixed broadband business services. UAE prices for low speed services are much higher than OECD averages but lower than Arab averages. 20 Page
Business Fixed broadband Service Medium speed Low usage/Medium speed (2.5 15 Mb/s) OECD average 31.75 Arab average 563.93 Ranking (2) GCC countries UAE 251.86 Saudi Arabia No 1 Oman No 2 Saudi Arabia 160.71 UAE No 3 Oman 161.78 Qatar No 4 Qatar 444 Bahrain No 5 Bahrain 488.61 0 100 200 300 400 500 600 USD/PPP UAE ranked Third among GCC countries for the price of medium speed fixed broadband business services. UAE prices for medium speeds are much higher than OECD averages but lower than Arab averages. 21 Page (2) Only 12 Arab countries offer this speed
Business Fixed broadband Service High speed Low usage/High speed ( > 15 Mb/s ) OECD average 39.50 Arab average 878.42 GCC(3) Countries Ranking Saudi Arabia No 1 UAE 475.21 UAE No 2 Saudi Arabia 169.05 Bahrain No 3 Oman No 4 Bahrain 974.41 Oman 1,394.29 0 200 400 600 800 1,000 1,200 1,400 1,600 USD/PPP UAE ranked Third among GCC countries for the price of high speed fixed broadband business services. UAE prices for high speeds are much higher than OECD averages but lower than Arab averages. 22 Page (3) Only 8 Arab countries offer this speed
Mobile Broadband Tariffs 23 Page
Residential Mobile broadband Service Medium speed Low usage/Medium speed (2-8 Mb/s) Arab average 38.54 Ranking (5) GCC Countries UAE 36.31 Bahrain No 1 Bahrain 12.15 Oman No 2 Oman 14.83 UAE No 3 Saudi Arabia No 4 Saudi Arabia 41.26 Qatar No 5 Qatar 75.59 0 20 40 60 80 USD/PPP UAE ranked third among GCC countries for the price of medium speed mobile broadband residential services. UAE prices for residential medium speeds are lower than Arab averages. 24 Page (5) Only 11 Arab countries offer this speed
Residential Mobile broadband Service High speed Low usage/High speed (> 8 Mb/s) Arab average 43.78 GCC(6) Countries Ranking UAE 35.94 Bahrain No 1 Bahrain 32.95 Qatar No 2 Qatar 34.72 UAE No 3 Saudi Arabia No 4 Saudi Arabia 45.14 Kuwait No 5 Kuwait 51.99 0 10 20 30 40 50 60 USD/PPP UAE ranked third among GCC countries for the price of high speed mobile broadband residential services. UAE prices for residential high speeds are lower than Arab averages. 25 Page (6)Only 6 Arab countries offer this speed
Business Mobile broadband Service Medium speed Low usage/Medium speed (2-8 Mb/s) Arab average 39.59 Ranking (7) GCC Countries UAE 33.28 Oman No 1 Oman 14.83 Bahrain No 2 Bahrain 20.24 Saudi Arabia No 3 UAE No 4 Saudi Arabia 30.13 Qatar No 5 Qatar 75.59 0 10 20 30 40 50 60 70 80 USD/PPP UAE ranked fourth among GCC countries for the price of medium speed mobile broadband business services. UAE prices for business medium speeds are lower than Arab averages. 26 Page (7) Only 11 Arab countries offer this speed
Business Mobile broadband Service High speed Low usage/High speed (> 8 Mb/s) Arab average 48.64 Ranking GCC Countries UAE 35.94 Bahrain No 1 UAE No 2 No 3 Saudi Arabia Bahrain 32.95 Saudi Arabia 38.2 0 10 20 30 40 50 60 USD/PPP UAE ranked second among GCC countries for the price of high speed mobile broadband business services. UAE prices for business high speeds are lower than the Arab averages. 27 Page (8) Only 5 Arab countries offer this speed
Leased Line Tariffs 28 Page
Leased line Service 64 Kb/s Leased linebasket Arab average 577 GCC Countries Ranking UAE 529 Qatar No 1 Qatar 412 Saudi Arabia No 2 Bahrain No 3 Saudi Arabia 514 UAE No 4 Bahrain 526 Oman No 5 Oman 571 0 100 200 300 400 500 600 700 USD/PPP UAE ranked fourth among GCC countries for the price of 64Kb/s leased line services. UAE price for 64 Kbps are lower than Arab averages. 29 Page No equivalent OECD data exists.
Leased line Service 256 Kb/s Leased linebasket Arab average 1,101 GCC Countries Ranking UAE 1,482 Bahrain No 1 Bahrain 1,012 Qatar No 2 Oman No 3 Qatar 1,020 Saudi Arabia No 4 Oman 1,142 UAE No 5 Saudi Arabia 1,193 0 200 400 600 800 1,000 1,200 1,400 1,600 USD/PPP UAE ranked fifth among GCC countries for the price of 256Kb/s leased line services. 30 Page No equivalent OECD data exists.
Leased line Service 2 Mb/s Leased linebasket OECD average 2,039 Arab average 3,078 GCC Countries Ranking UAE 3,112 Qatar No 1 Qatar 2,306 Saudi Arabia No 2 Oman No 3 Saudi Arabia 2,680 UAE No 4 Oman 2,856 Bahrain No 5 Bahrain 3,603 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 USD/PPP UAE ranked fourth among GCC for the price of 2Mb/s leased line services. 31 Page
A full copy of the AREGNET report can be found on the following website: https://www.tra.org.bh/EN/pdf/2012PriceBenchmarkingofT elecommunicationsServiceintheArabCountriesvF.pdf 32 Page
Annexes 33 Page
Annex 1: Table of Results UAE ranking among GCC countries Services Basket 1st Residential PSTN Service low usage basket 1st Residential PSTN Service Medium usage basket PSTN services 1st Residential PSTN Service high usage basket 2nd Business PSTN Service low usage basket 2nd Business PSTN Service High usage basket 2nd Mobile Service Low usage basket 1st Mobile Service Medium usage basket Mobile Services 3rd Mobile Service High usage basket 3rd Mobile Service SMS basket 1st Residential Fixed broadband Service Low speed 2nd Residential Fixed broadband Service Medium speed Fixed Broadband Services 3rd Business Fixed broadband Service Low speed 2nd Business Fixed broadband Service Medium speed 2nd Business Fixed broadband Service High speed 3rd Residential Mobile broadband Service Medium speed 3rd Mobile Broadband Services Residential Mobile broadband Service High speed 4th Business Mobile broadband Service Medium speed 2nd Business Mobile broadband Service High speed 4th Leased line Service 64 Kbps Leased Line Services 5th Leased line Service - 256 Kbps 4th Leased line Service 2 Mbps Page 34
Annex 2: PSTN Baskets Methodology The OECD 2012 basket methodology for PSTN services includes: installation, rental, fixed line calls (local & national calls), calls to mobiles, and International calls. The usage price is calculated using the weights shown in the table below. A time-of-day weighting is also applied: Call distribution Fixed to fixed Local Fixed to fixed National Total calls Fixed to mobile International Low usage basket - residential 20 61% 20% 17% 2% Medium usage basket - residential 140 58% 15% 23% 4% High usage basket - residential 420 73% 17% 8% 2% Low usage basket - business 100 48% 19% 30% 3% High usage basket - business 260 43% 23% 25% 9% 35 Page
Annex 3: Mobile Baskets Methodology The OECD 2012 basket methodology for mobile services includes: installation, rental, calls to fixed lines, calls to mobiles, voice mail, SMS and selected discounts. The value of international calls are added to the national basket as a separate international element. Mobile baskets are calculated for both pre-paid and post-paid services. The usage price is calculated using the weights shown in the table below. A time-of- day weighting is also applied: Call distribution Total calls Mobile to Fixed Lines Mobile to Mobiles Voicemail SMS Low usage basket 30 16% 80% 4% 100 Medium usage basket 300 14% 83% 3% 225 High usage basket 900 14% 83% 3% 350 36 Page
Annex 4: Fixed Broadband baskets methodology The OECD 2012 basket methodology for Fixed broadband services includes: installation, rental and usage costs. The Fixed broadband data is split into different speed ranges in order to obtain consistency between services compared. The ranges are listed in the table below : Usage per month Speed range Low usage High usage GB Hours GB Hours >0.256 Kbit/s 2 10 6 30 >2.5 Mbit/s 6 15 18 45 >15 Mbit/s 11 20 33 60 >30 Mbit/s 14 25 42 75 >45 Mbit/s 18 30 54 90 Only Low Usage baskets are used in this presentation. 37 Page
Mobile broadband baskets Annex 5: Mobile Broadband baskets methodology Mobile Broadband baskets are not yet agreed by the OECD so the available Teligen (4)profiles are used instead. The Teligen profile for Mobile broadband services considers: installation charges, rental and usage costs. Two speed ranges of 2 8 Mb/s and >8 Mb/s are also used in order to distinguish between traditional mobile broadband offers in the 3.6 7.2 Mb/s range, and newer offers with advertised speeds at 21 Mb/s and higher. Only the advertised speeds are considered. Data volume Days / month Hours / month Low usage - 1 GB 15 5 High usage - 6 GB 30 30 Only Low Usage baskets are used in this presentation. 38 Page (4)The consultant who conducted the benchmarking study for AREGNET
Annex 6: Leased Lines baskets methodology Non-recurring charges (installation) are excluded from the basket. Only monthly rental charges are included. The basket weights of the 2012 OECD basket methodology are: 2 km 20 km 50 km 100 km 200 km 500 km <=2 Mbit/s 50% 18% 6% 8% 10% 8% =>34 Mbit/s 42% 18% 15% 9% 8% 8% 39 Page
THANK YOU Page 40
