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Dubai, UAE, United Arab Emirates, 2011/09/07 - With the current Third Generation (3G) networks proving incapable of handling the growth in mobile data traffic, mobile operators in Saudi Arabia and the UAE are expected to migrate to 4G technologies to accommodate the surge in data traffic.
Long-Term Evolution (LTE) and Worldwide Interoperability for Microwave Access (WiMAX) are the two competing 4G technologies that are expected to drive the growth in mobile broadband, globally.
This surge in use of mobile broadband is attributed to the proliferation of smartphones and smart devices alongwith rise in the usage of social networking and blogging tools amongst others. Mobile broadband is also gaining momentum due to the users need for seamless mobility and being connected to internet at all times. Increasing popularity of the bandwidth intensive mobile applications has further led to increase in the use of mobile broadband. In order to sustain the momentum, the mobile operators in Saudi Arabia and the UAE are progressively committing themselves to LTE technology, as a path for moving towards 4G services.
According to a Frost & Sullivan’s upcoming Report ‘LTE Outlook for India, Saudi Arabia and the UAE’, Saudi Arabia is one of the largest mobile markets in the Gulf region, with 51.6 million mobile subscribers and penetration of 186 per cent whereas the UAE boasts of a highly saturated mobile market, with mobile penetration of 197.2 per cent. The mobile consumers in Saudi Arabia and the UAE have a strong demand for mobile data services. Thus, operators are progressively upgrading their networks to offer high-speed data services. Saudi Arabia and UAE are also expected to witness high LTE growth, with Compound Annual Growth Rates (CAGR) of 54 per cent and 85 per cent respectively.
"UAE has dynamic subscriber demographics due to large expatriate population. Also, similar to Saudi Arabia, the market has large youth population which is driving the demand for mobile services, particularly mobile Internet and mobile data. Also, with high disposable income, the penetration of Smartphones, laptops and tablets PCs is high and is expected to increase further", says Frost & Sullivan Information and Communication Technologies Expert.
The Frost & Sullivan Report further indicates that LTE is expected to lead the shift towards 4G technologies, with developing ecosystem and increasing support from equipment vendors. The initial launches in Saudi Arabia and UAE will be limited to only major metros, with operators expected to increase service coverage gradually in 2012-2013. LTE penetration might see marginal uptake initially; but with gradual coverage expansion and more developed device ecosystem, LTE penetration will increase.
The Report also recommends commitment and support from equipment manufacturers and mobile operators to drive the growth in LTE Market and concludes with insights on the kind of opportunities that next 5-10 years will bring up in Saudi Arabia as well as the U.A.E.
If you are interested to know more on this Report, please send an email with your contact details to Tanu Chopra/Deepshri Iyer, Corporate Communications, Frost & Sullivan, at tanu.chopra[.]frost.com/deepshrii[.]frost.com.
About Frost & Sullivan:
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation, and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 40 offices on six continents.
Contact Nimisha Iyer
Corporate Communications – South Asia, Middle East, and North Africa
P: +91 98200 50519 / F: +91 22 2832 4713 - E: niyer[.]frost.com.