By Roger Field
Broadband sector to produce revenue of $174 million in 2014
Tunisia's telecom market is expected to be among the fastest-growing in the Africa and Middle East region in the next five years, according to a report from US-based research organisation Pyramid Research.While Tunisia's mobile and fixed penetration were among the highest in the region in 2008 at 82.1% and 11.5% respectively, the low broadband penetration rate of 2.2% indicates there is still room for growth, according to Sylwia Boguszewska, an analyst at Pyramid Research and author of the report.
Indeed, broadband services will have a compound annual growth rate of 15.1% between 2009 and 2014, producing estimated revenue of $174 million in 2014, up from $81 million in 2008, according to the report. "This growth will over compensate for the decline in narrowband Internet services, which will only generate revenue of $4 million in 2014," Boguszewska said.
She added that the government launched a tender for a fixed-line services license in May in a bid to promote broadband Internet access and “prop up” mobile telephony services, which had helped stimulate the sector.
“The process of a tender for a technology-neutral license for a mobile and fixed operator was started in May 2009, and a new player is expected to enter the market in 2010. This, plus the sale of another stake in Tunisie Telecom, will have a positive effect on market competiveness and liberalisation.”
Total telecom revenue in Tunisia is expected to grow at a CAGR of 5.4% over the next five years, reaching $2.2 billion in 2014, despite a small contraction anticipated for 2009, according to the report.For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.