IHS Global Insight Perspective | |
Significance | Qtel is following suit with the most advanced countries in the region to provide FTTH, aiming for it to be one of the most connected countries in the Middle East. |
Implications | Although it does not have any competitors for fixed-line services, Vodafone is in the process of deploying WiMAX which offers some versatility. |
Outlook | With a relatively small but growing population, the operator is keen to invest in its domestic market which has among the highest ARPUs in the world. |
The Qatari incumbent operator Qatar Telecom (Qtel) has announced it will set aside 600 million riyals (US$164 million) over the next two years for the first phase of its fibre-to-the-home (FTTH), the Qatar Tribune reports. Connectivity in Qatar has been advancing very rapidly over the past few years; however, a lack of competition in the fixed-line market has led to a dearth of very advanced services to the home. Qtel CEO, Nasser Marafih, made the announcement stating: "The company has allocated 600 million riyals for the first phase of the roll-out, which will be executed in collaboration with ictQATAR. Qtel is aiming to link homes across Qatar through fibre connections over the next three years."
The operator has already evaluated other FTTH services elsewhere in the Middle East and in Europe. It has carried out a testing which has resulted in the investment plan.
Outlook and Implications
Qatar already has among the highest penetration for broadband in the region at 60%; however, mobile penetration has far exceeded fixed-line and both Qtel and Vodafone are offering advanced data services over 3G.
FTTH will take significantly longer to roll out than any other telecommunications service; however, it will offer significantly higher data rates to the home and much better reliability for business customers. Marafih went on to comment: "Additionally, FTTH will be useful in the healthcare and education sectors. Schools will be able to download educational materials of entire libraries quickly and effectively and a range of virtual learning initiatives will get a boost."
In the United Arab Emirates both Etisalat and du, the only two integrated operators, are in the initial phases of rolling out national FTTH. So far these operators have managed to connect newer offices and new developments; however, the global economic climate has put significant strain on growth, especially in the emirate of Dubai where many foreign workers have left. Qtel has the added advantage that there is no other competition for fixed-line services; however, its main competitor for mobile services, Vodafone has won WiMAX frequencies which are a more versatile technology, providing mobility, and reasonable data rates.