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Market |
Telecommunications |
Report Type |
Market Research |
Country |
Iran |
Published |
5 August 2009 |
Number of Pages |
72 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
The latest update on the Iranian telecoms market contains revised forecasts for the development of the country’s fixed-line, internet and mobile markets. At the time of writing, there was a limited amount of data available for the period ending December 2008. The latest data to be published by Iran’s incumbent operator, Telecommunications Company of Iran (TCI), relate to the end of September 2008. However, with Iran’s calendar year having ended on March 20 2009, new figures are expected to be published shortly; these figures will then be incorporated into BMI’s next report on the Iranian telecoms market. Of Iran’s mobile operators, only MTN Irancell had published data relating to the end of March 2009.
Iran’s fastest growing mobile network operator reported a total of 18.252mn mobile telephony customers at the end of March, up by 14% quarter-on-quarter (q-o-q) and 102% year-on-year (y-o-y). The most significant development to have occurred within Iran’s mobile market was the May 2009 announcement that the government had withdrawn the mobile licence awarded to Etisalat of the UAE in December 2008. Etisalat has expressed plans to launch commercial services in the second half of 2009 and had stated that it intended to offer HSDPA (3.5G) services from launch. The regulator withdrew the joint 2G and 3G concession, claiming that Etisalat had failed ‘to give necessary guarantees and licence fees on time’. Etisalat is understood to be considering whether it has grounds for an appeal. However, according to reports, Iran’s authorities are already discussing the possibility of awarding the licence to Kuwait’s Zain Group. Zain came second in the original auction .
Other recent developments which BMI perceives to have potentially negative implications for Iran’s telecoms market include the news, in May 2009, that Iran’s authorities had blocked access to the social networking website Facebook. According to reports, the site was banned because supporters of a leading opposition candidate, Mir Hossein Mousavi, were using Facebook to campaign on his behalf. Mir Hossein Mousavi, a former prime minister and reform candidate, was seen as a serious challenge to President Mahmoud Ahmadinejad, who was seeking a second four-year term in the country’s elections in June 2009. The subsequent disputed election result resulted in an eruption of online activity, followed by an array of site blocking .
The government’s recent attempt to control the use of Facebook in Iran is just the latest of several moves which have been aimed at restricting the use of popular communications services – including broadband internet content and mobile data services. State interventions in the sector are seen as one of the biggest uncertainties facing the long-term development of mobile data and broadband internet services in Iran .
Iran remains in 11th place in our Business Environment Rankings for the Middle East, despite gaining a slightly higher overall score. The higher score reflects a stronger performance for Iran in the telecoms market category. However, the higher score in this category has been counterbalanced by a weaker country risk rating.
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