Advancements in Infrastructure: Challenges and Revenue-Assurance Tactics in SAMENA

2. iii i ii Advancements in infrastructure are happening. New challenges are arising. Operators need to apply new revenue-assurance tactics. A need for enhanced regulatory dialogue. South Asia, the Middle East and North Africa (SAMENA) have shown some of the highest growth rates in telecommunications expansion in the world. High telecom growth has begun to give strong boost to the economies of the SAMENA region. Introductory Remarks

3. South Asia North Africa MiddleEast Regional Facts

4. Regional Facts: South Asia South Asia (excluding India) has total population of 371 million and growing During 2001-2006, Internet usage has witnessed growth of 1200%, indicating rise in fixed-line teledensity Mobile phone telephony has been the winner. It experienced a growth rate of 105% during 2003-2006 South Asia 15-20% of the total population in South Asia uses cell phones, hence a large potential for further investment exists

5. Regional Facts: North Africa North African telecom market is to grow to US$10 Billion by 2008 Average growth rate of 22.5% expected during 2005-211 Mobile penetration to increase from 14% to 42% during 2005-2011 North Africa 378 million mobile subscriber base expected within the next few years Mobile subscriber base doubled from 7.6 million to over 14 million between 2004 and 2005

6. Regional Facts: Middle East Subscriber growth beyond 88 million Telecom democratization since 1998 By 2011, expected mobile subscriber base will be 150 million Mobile penetration hascrossed the 50% mark Arid terrains and other geographical variables cause populations to be sporadically distributed Wireless telecom solutions can provide remedies for impoverished areas MiddleEast Internet usage grew to over 800% during 2001-2006 Mobile penetration in Jordan alone grew from 28% in 2004 to 53% in 2005

7. Common Regional Concerns • Large populations, poverty, disconnectivity • Institutional improvements being slowly introduced • Scarce telecom infrastructure, prompting a need for large investments for increasing connectivity • Market liberalization happening, but slowly • Emergence of new technologies—need for educated decision making • 3G rollouts — risks and investments • WiMAX consideration — confusion, benefits, costs • VoIP — unwillingness to adopt, threats • ARPU falling—alternatives must be sought • Industry consolidation issues • Content management • Customer churn • Regulatory concerns

8. Need for A Collective Voice: SAMENA Motivation for Existence Mission & Goals SAMENA Telecommunications Council Approach & Capability SAMENA Members

9. SAMENA: Motivation for Existence • Regional dynamics require raising ICT competencies and furthering telecom expansion for propelling economic activity • Experiences and issues from one region can best be communicated through a common, mutual platform • A need for an unbiased and collective representation of telecoms issues of service providers and telecom entities • A dire need for a channel that would facilitate easy approachability to key regional and global decision makers (such as the ITU) • Collaboration and engagement are required in this era of fast change

10. SAMENA: Mission & Goals • To provide a non-biased working environment to leading operators, government and non-government bodies, technology suppliers, private industry entrepreneurs, and academia • To help create dialogue amongst private and public entities • To help accelerate the establishment of fair regulatory policies, keeping specific regional requirements in focus • To create an unprecedented collaborative and incubative front to unite the three regions (collectively SAMENA) • To be the ultimate, tri-regional telecoms industry promoter

11. SAMENA: Mission & Goals (contd.) • To communicate recommendations of the Council to the established national, regional, and international organization and institutions • To create means for diverse, telecom-related entities to work together with regard to telecommunications policies • To bring on board a diversified group of telecom-related entities to bring representation to SAMENA’s established committees, concerning different facets of the telecom industry • To promote ICT to enhance communications and economic betterment in the SAMENA region • To assist new market entrants • To continually educate, provide advocacy support, and assist in educated decision-making

12. SAMENA: Approach & Capability • Gather business intelligence • Regulators are involved with issues relating to unified policies, relating to access charges, universal service, market powers, human capacity building of the regional regulators, and the exchange of experiences amongst them. • Decision-makers, generally speaking, are ready to deploy IP telephony solutions. About seven out of ten unanimously agree on implementing IP telephony; forty-percent of those want to do it by the end of 2006. • Convergence of different industries, including the Internet, TV, and computing, and traditional regulatory models do not apply.

13. SAMENA: Approach & Capability • Gather business intelligence (contd.) • The ITU is actively working to help service providers bridge gap between “last-gen” networks with “next-gen” networks. • Stake holders need to be educated about NGN services. Regulators throughout the world are discussing the need and the timing for NGN regulations. • Need regulatory initiatives to encourage capital investment for the use of new technologies. • The Arab World may only have 4/5 major telecom players within the next 7 to 8 years. • Interact and participate • Expanding Membership • SAMENA at GITEX 2006 • Be neutral

14. SAMENA Members And many more…

15. SAMENA: Current Involvement • Two Annual Conferences a year, the first is “Beyond Connectivity” in Dubai, UAE from January 21st through Jan 23rd – Free attendance for SAMENA members. The 2nd event is in Casablanca in Sept 07. • CEO Live Session at “Beyond Connectivity” • Construction of large volume Market Research Data for Members use, including Regulatory, Technical and other Key Elements. Website updated daily. • Regulatory Advocacy Efforts are now beginning in Oman, UAE, KSA, Pakistan and others with regard to Interconnect, Rates, IRR and other important impact issues.

16. SAMENA: Concluding Remarks SAMENAbrings exceptional value to all operators in the regions that are currently not represented through a telecom council. i SAMENAraises awareness amongst its Members in the region, giving its service providers a higher platform of visibility and connectivity with others, globally, and on a continual basis. ii SAMENAwill elevate revenues and profits, and will provide its advocacy capabilities in all manners possible and needed, including its close interaction with the ITU. iii

17. Thank you