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Jordan Telecommunications Report Q3 2009Product Type: Market Research ReportPublished by: Business Monitor International Published: July 2009 Product Code: R302-7321 Description Our latest update on Jordan’s telecommunications market includes expanded market data sectionscovering the country’s fixed-line and internet sectors. In recent months, Jordan’s internet access markethas benefited from increased competition, lower prices and a wider range of services, and the sector nowhas at least ten operators providing fixed internet services. In addition to incumbent operator JordanTelecom, major ISPs include Cyberia Jordan and Umniah Mobile, which is owned by Bahrainiincumbent Batelco. In recent months, these companies have been joined by a number of new WiMAXbroadband service providers, including wi-tribe, Mada Communications and Kulacom Jordan. In May2009, Kulacom Jordan became the latest Jordanian operator to officially launch WiMAX-basedbroadband services. At launch, the network was said to cover over 30% of the population of GreaterAmman.BMI estimates that Jordan had around 12,200 WiMAX broadband subscribers at the end of 2008, around8.2% of the country’s total broadband customer base. Although ADSL services are expected to remain thelargest segment of the Jordanian broadband market over the next couple years, the slow decline ofJordan’s fixed-line sector will constrain the long-term development of DSL, unless there are moves tointroduce naked DSL services. BMI believes that WiMAX services will therefore become an increasinglyimportant way of ensuring that the government achieves its target of 50% internet user penetration by theend of 2012. In the meantime, the internet market is expected to benefit from the recent reduction of IPconnectivity costs. From June 1 2009, Jordan Telecom reduced the cost of IP connectivity for ISPs by15%. This reduction will decrease the cost of services to ISPs by 30%. Consequently, end-users areexpected to experience a drop in internet prices based on reductions by individual ISPs. This update on the Jordanian telecoms market sees the introduction of new five-year growth forecasts forthe country’s fixed-line, internet and mobile markets. As noted above, the fixed-line sector continues todecline, with Jordan Telecom reporting a 7.2% drop in the number of fixed lines in 2008. By the end of2008, the country’s fixed-line penetration rate had fallen to 8.5%. Although these losses are steep, the rateof fixed-line decline in 2008 was lower than in 2007, when the market shrank by 9%. Meanwhile, in the mobile market, it was reported in June 2009 that mobile operator Orange Jordan hadhad its bid for a 3G licence rejected by the country’s telecom regulator. Orange Jordan’s bid was seen ashaving failed to comply with key financial and technical aspects of the process. The operator was the onlycompany to submit a bid for a 3G licence by the May 26 deadline. Jordan has risen from eighth to sixth position in BMI’s latest set of Business Environment Rankings forthe Middle East. Jordan has increased its overall score as a result of a further improvement to its telecomsmarket and country risk scores. Table of Contents
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