The World Bank has published a detailed report on broadband networks in the Middle East and North Africa region. The report reviewed the risk of slowing down broadband development in the region and the main obstacles to development.
He also talked about the international connection of the region to the global network through submarine cables, in addition to connecting the local entry in the countries. Develop a strategic framework for broadband network reforms in the Middle East to accelerate high-speed Internet access.
A special section was devoted to the development of new models of infrastructure supply procedures to reduce the costs of its deployment, as well as targeting disadvantaged areas in the country, such as the remote countryside. Finally, he came to a set of conclusions.
In the following, we try to summarize for you the most important points included in the report.
The term broadband generally refers to a method of communication that is “always on” as opposed to a “dial-up” connection over a public telephone line network to activate an Internet connection at rates faster than those obtained with a dial-up modem. The generally accepted definition of broadband bandwidth rates, according to the International Telecommunication Union, is at least 256 kilobits per second, which was adopted in the study.
Today, 11 out of 11 countries in the Middle East and North Africa region have adopted national broadband strategies. In fact, all countries in the Middle East and North Africa region have high prevalence rates.
The Global Information Technology Report for the year 2013 stated that many countries of the Gulf Cooperation Council (GCC) have improved their overall performance significantly during the year 2012 (Qatar, UAE, Saudi Arabia) and continued their investments to make information and communication technology one of the basic national industries that are trying diversify and transform their economies.
On the other hand, many North African countries (Algeria and Morocco) and the Arab Levant (as well as the Islamic Republic of Iran) have declined.
The price plays a decisive role in the process of broadband deployment. According to the International Telecommunication Union, broadband penetration grows rapidly when the retail price level falls below 3-5% of the monthly income level, making it affordable for everyone. In the MENA region, the price of fixed broadband represents ~3.6% of average monthly income per capita, while the price of mobile broadband stands at ~7.7%. While in Djibouti, Syria and Yemen it far exceeds the 5% threshold, and some countries have recently reached (i.e. Algeria, Egypt, Jordan, Libya, Morocco and Tunisia) the level that enables the rapid take-off of broadband.
The affordability of broadband in the Middle East and North Africa region
The affordability analysis is based on the percentage of disposable income that the poorest segment of the population needs to afford broadband. If we take, for example, a family representing the lowest 40 percent of income in Morocco, they must pay 33 percent of their disposable income to obtain mobile broadband. As for fixed broadband services, the same family has to pay 31 percent of their disposable income to enjoy them.
The situation is slightly better for the less than 61 percent of the Moroccan population in terms of income, as enjoying mobile broadband services requires about 26 percent of their disposable income, while fixed broadband services require 23 percent of the same income. Despite the important reforms undertaken by Morocco, which is pioneering in many respects, the costs of broadband services are still unaffordable for the majority of the population. Even if Morocco is the best performer in this category.
The situation is even worse for other countries in the Middle East and North Africa region that are experiencing the “beginning” stage of broadband development. In Tunisia, the poorest 41 percent of the population needs to spend more than 41 percent of their disposable income to enjoy fixed or mobile broadband services. In Yemen, the poorest 41 percent of the population needs to spend more than 51 percent of their disposable income to enjoy mobile broadband services and 46 percent for fixed.
In Djibouti, the mobile broadband package is equivalent to many times the disposable income of the poorest forty and sixty percent of the population, and fixed broadband consumes nearly the full income of the poorest sixty percent of the population. The enjoyment of fixed and mobile broadband services in countries classified in the “beginning” stage of the development of this service (Algeria, Djibouti, Morocco, Syria, Tunisia and Yemen), is still out of the reach of no less than 61 percent of the population.
The fixed broadband markets in the Middle East and North Africa region are largely underdeveloped, given that most of them are still in the early stage of development. At the end of 2012, the fixed broadband penetration rate in half of the countries in the Middle East and North Africa region did not exceed 25 percent, and this percentage was exceeded only in one country by reaching 71 percent.
The decline in penetration can be attributed to several factors, including lack of infrastructure, little or no competition, and high prices for services. But more importantly, when the high level of usage of 3G and 4G services in the Middle East and North Africa region is taken into account, the development of the fixed broadband market cannot be analyzed in isolation from the mobile broadband market, as there may be an impact of migrating from fixed to mobile
It is noted that mobile broadband markets in the Middle East are considered more developed when compared to their counterparts in the field of fixed broadband. Most mobile broadband markets are in the growth stage. Mobile broadband penetration in most countries of the Middle East and North Africa region has exceeded 225% of the population at the end of 2012, and in eight of them it exceeded 50%, and in Bahrain it exceeded 70%.
International Connectivity
The Middle East and North Africa region has good potential for international broadband connectivity. However, there is an uneven sea connection between the Middle Eastern part and the North African part of this region. All countries (with the exception of the economy of the West Bank and Gaza Strip) are connected at the present time by at least two international sea cables.
. The “C-ME-WE4” submarine cable is the only international submarine cable that simultaneously reaches the countries of the Middle East region (UAE, Saudi Arabia) and North Africa (Algeria, Tunisia, passing through Egypt).
In addition, the geographical location of the infrastructure is congested, which makes the Red Sea a corridor for a particularly sensitive geographical area in terms of network redundancy. The new overland international cables (GADI, RCN, IPEG) have been built in the Middle East to provide an alternative connection between Asia and Europe, but it does not contribute to linking the Middle East with North Africa.
In October 2013, Vodafone Group, UAE du, and Kuwaiti companies Zain and Zajil formed a consortium called METS (Terrestrial System for the Middle East and Europe) to deploy a 1,400 km fiber optic cable system that will extend from Kuwait to Emirates, through Saudi Arabia, Bahrain and Qatar.
On the other hand, there is one fiber optic cable (Ibn Khaldun) that provides a regional broadband connection between Libya, Tunisia, Algeria and Morocco.
Bahrain is the only country in the Middle East that has removed all barriers to entry into the telecom sector.
Although mobile broadband penetration is expected to improve by simply allowing market forces to develop, some rural and remote areas in the countries of the region will continue to suffer from a widespread lack of mobile broadband. this service.
This can be due to social and economic disparities, in terms of income, literacy, age, and/or gender (the “social digital divide”) or to the presence of remote and/or geographically isolated lands, where services are Basic infrastructure is not sufficiently available due to high communication costs (the “regional gap”).
Of the 11 countries in the region, 7 are classified as lower-middle-income countries, and 6 of them are upper-middle-income.
It should also be noted that gender inequality in the use of mobile phones and the Internet has contributed greatly to the development of the social gap in the Middle East and North Africa region. In 2012, the gender gap in Internet use in this region reached 34%, the second largest regional gender gap after sub-Saharan Africa (45%).
The countries of the Middle East and North Africa region have a unique opportunity to bridge the gap in competitiveness, trade, and integration with more developed regions by developing low-cost broadband Internet infrastructure. Following the example of mobile communications, the countries of the region have the opportunity to create a dynamic competitive framework in which many broadband operators can meet the growing demand of tech-savvy youth.
The development of broadband can dramatically increase the production and use of digital content in the Middle East and North Africa region when it brings global knowledge. Broadband also enables the integration of companies and professional networks in the region and enhances job creation opportunities by bringing global jobs to local markets.
To reap these benefits, countries in the region must fully open their broadband markets to competition. The gap between this region and areas with high broadband penetration is mainly a gap in market structure, competition, and governance. Therefore, creating and promoting open markets for broadband infrastructure, networks, services and digital content is a top priority.
However, some special circumstances in the Middle East and North Africa region can facilitate this complex reform.
First, the presence of energy and transportation facilities can be used with the vast and currently unused fiber optic networks, in order to enhance local and international connectivity in a competitive environment.
And secondly, there is the emergence of a class of urban, young people that will exert enormous pressure on the demand for broadband on the one hand and on housing on the other. Coordination between civil works and infrastructure supply chains in the region could be improved to meet this growing demand in rapidly changing urban environments.
Third, the wide availability of capital in the region has made the telecommunications sector the driving force for foreign direct investment in most countries in the past decade. Regional capital can adequately finance the rapid expansion of broadband networks in the region, and lay the foundations for innovation. and growth based on broadband and mobile technology.
For those who wish to download the full report, it is available in full (219 pages) on the World Bank website in English, or you can download the summary (30 pages) in Arabic
Tags:broadband, World Bank, Broadband Internet Reports
