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FINANCIAL NEWS
ME’s 2012 telecoms revenue likely to decline
11 Jan 2012
(MENAFN) Fitch Ratings said that since data revenue and mobile broadband would fail to make up for the deep drop in voice revenue, telecoms revenue in the Middle East would be forecasted to remain flat or decline, reported Emirates 24/7.
The firm added that pressure on average revenue per user (ARPU) levels that would result from a saturated voice market which was still the main contributor to overall revenues, could be seen as the key mid-term trend.
It also said that this year, mobile data traffic growth would still rise at double-digit rates, however, this would in part compensate some of the competitive pressure on ARPU’s and margins.
It is worth noting that a number of markets, including Kuwait, Qatar, and Bahrain will stay highly competitive, whereas Saudi and the UAE will likely become more competitive due to the maturity of these markets.
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