wi-tribe Launches WiMAX Services in Jordan

The relatively new company started in April 2007 through a joint venture between Qatar Telecom (Qtel) and the A.A. Turki Group of Companies (ATCO), and seeks to cater for the current high demand for broadband services in the Middle East. WiMAX in Jordan is still a relatively new technology which was first launched by Umniah last year through its own branding, UMAX (see Jordan: 12 November 2007: Umniah Launches WiMAX under UMAX Trademark). Broadband growth in the Middle East has now exceeded that of mobile which had phenomenal growth in the past few years but has since slowed with many countries exceeding penetration levels of 100%. One of the limiting factors in the past for internet access has been the lack of fixed-line services in the country, currently standing at 9.37% at the end of 2007, a gradual decline of its peak of 12.9% in 2001 over the past eight years. Internet penetration is still low at 13.5% at the end of 2006 but will increase at a much faster rate in the future. The new operator has selected Airspan Networks for its WiMAX infrastructure requirements, which has already provided similar services to its new competitor Umniah (see Jordan: 3 September 2007: Umniah Selects Airspan for WiMAX Deployment in Jordan). In Jordan, Wi-tribe is focusing its launch services on providing fixed-location wireless internet access for residential and SOHO users, using the 3.6 GHz frequency band.

The operator has set up six retail outlets in the country for customers to enable customers to sign up to the service. Initially two types of services will be offered for both short-term users (targeted at business customers who will stay in the country for a relatively short period of time) and long-term users, typically Jordanian residents. The regular service will work on either a flat rate, annual or monthly fee, based on the connection speed provided, with 256 Kbps, 512 Kbps, 1 Mbps, and 2 Mbps versions with no cap on usage. Fees for the monthly service range from 17 Jordanian dinars (US$24) per month for the 256 Kbps package, up to 40 Jordanian dinars for 2 Mbps, with reduced rates for annual subscription. Customers can either buy or rent the modem. Short term users will have four speed options starting at 22 Jordanian dinars per month and 45 Jordanian Dinars for the modem. Sheikh Abdullah Bin Mohammed Bin Saud Aa-Thani, chairman of the Qtel Group said: "The launch of our first services in Jordan is just the beginning. As the Qtel Group continues to expand, we will continue to leverage our strengths to deliver important technologies to new markets, and enhanced services across all operations. As always, our customers are our focus and it is this passion that lies squarely behind wi-tribe."

Outlook and Implications:

wi-tribe's business model is the only feasible option to target the very high demand for wireless broadband solutions throughout the Middle East. The launch in Jordan is an important step for the operator, targeting a relatively small but important market. Jordan's population of less than six million is fairly low; however, WiMAX offers the opportunity to target a wide market at very low costs in comparison to deploying a wired infrastructure.

• Competition: wi-tribe currently only faces competition from Umniah, which launched services at the end of last year. The lack of competition will give wi-tribe initial high growth potential.

• Financial Backing: Qtel, one of wi-tribe's major shareholders is one of the highest cash-rich operators in the MENA region, its financial backing will enable it to deploy services at a much faster rate.

• Other Markets: wi-tribe has already targeted Pakistan, which will commence services in the near future. Pakistan is a market which has not, as yet, gained significant access to the online community, giving wi-tribe the opportunity to lead the way and develop strong customer relationships.