aregnet price benchmarking 2009 final… · yemen, tele yemen * libya, libya telecom saudi arabia,...

Telecommunications Price Benchmarking

for Arab Countries 2009

Final Report from the AREGNET Price Benchmarking StudyJune 2009

Prepared by:Name Halvor SannæsPosition Director Tariff ServicesT l 4 3 02 3400

www.Teligen.com© Teligen, 2009. All rights reserved.

Tel +47 3702 3400Email [email protected]

Acknowledgements

Teligen wishes to thank:– The AREGNET members for feedback and support in the collection

of tariff information and to TRA Bahrain for commissioning and coordinating the study on behalf of AREGNET

– The operators who have contributed with additional tariff information

Contents of this report

Background on this study and the basket concept 4Results from the PSTN basket 6Results from the Mobile basket 17Results from the Leased Line basket 24Results from the Broadband basket 33Results from the call price comparison 42Summary of findings 50Reference information and acronyms 51Reference information and acronyms 51

The context

The benchmarking study was originally initiated by TRA Bahrain in 2008. This update for 2009 was commissioned by TRA Bahrain on behalf of AREGNET.In increasingly competitive markets it is important for regulators to be able to track the evolution of prices and analyze the impact of price change and competition on theevolution of prices and analyze the impact of price change and competition on the effective prices paid by consumers. This study allows Arab countries to compare the price levels within and between countries, and also to compare with the OECD countries. Data presented in this report is comparable with data from the 2008 report. However, please note that exchange rates

diff tare different.The benchmarking covers the following services:

– Fixed voice (PSTN) (OECD basket equivalent)– Mobile telephony (OECD basket equivalent)Mobile telephony (OECD basket equivalent)– Leased Lines (OECD basket equivalent)– Broadband ADSL (Teligen basket)– Call cost for specific types of calls

The methodologies for fixed and mobile telephony and leased lines are identical to the OECD Price Benchmarking baskets, with minor changes. A separate document explaining the methodology used in this study is available.The data was collected by Teligen from public sources on the Internet. Data has

b tl b d t ti l l t f t

subsequently been passed to national regulators for comments.

The “Basket” method for price benchmarking

Tariff informationTariff information

Tariff informationTariff information

Combine tariff information with a usage profile in a “basket calculation engine” to calculatecost of individual calls and tariff elements.

Basket results

Tariff information

Usage profile(“Basket”)

as et esu tsper tariff

(in national currency)Basket results

per tariff(in national currency)

Basket resultsper tariff

(in national currency)Basket results

per tariffAdjust costs for tax, currency and purchasingpower to create comparable results.

Tax and exchange rateadjustments.

Purchasing Power.

(in national currency)

Benchmarking resultsfor all tariffs

(i )

The benchmarking results show the end usercost of using the service according to the

(in common currency) usage profile, in a consistent format.

Fixed voice (PSTN) basket, as defined by the OECD

Five different basket definitions:– Low usage, medium usage and high usage for residential users– SoHo usage (single user) and SME usage (30 users) for business

The baskets define the volumes and the structure of usageThe baskets define the volumes and the structure of usage– Volume and distribution of calls to different destinations– Distribution and duration of calls at different times of day

Volumes Call proportions Call durations (minutes)Total callsper month Fixed line Mobile International Fixed Mobile International

Tariffs from the incumbent operator in each country

Residential Low 50 76.0% 19.0% 5.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2Residential Medium 100 75.0% 23.0% 2.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2Residential High 200 65.0% 31.0% 4.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2Business Small 150 67.0% 29.0% 4.0% 1.9 - 3.1 1.6 - 1.7 2.9 - 3.9Business SME 233 72.0% 20.0% 8.0% 1.9 - 3.1 1.6 - 1.7 2.9 - 3.9

Tariffs from the incumbent operator in each country– Several tariff packages can be covered for each operator

Tariff information included in basket calculation:– Fixed charges for installation and rental– Usage charges covering local through to national calls, calls to mobiles, and

international calls to other AREGNET countries plus a few other destinations

The results show the lowest cost option for each operator

Fixed voice (PSTN) data issues

Tariff data was researched from operator websites in the first weeks of January 2009.– Additional clarifications have been sought from operators and regulatorsAdditional clarifications have been sought from operators and regulators.– Regulators have been offered the opportunity to comment on the tariff

information, and on this report, prior to final publication.Due to lack of published data, and lack of feedback, no data is available for:– Comoros– Iraq

K it– Kuwait– Sudan

Part of data is missing for:Syria (no prices for calls to mobile)– Syria (no prices for calls to mobile)

– Yemen (no prices for national calls and fixed line)The analysis covers 37 tariffs from the incumbent operators in 18 countries

in 18 countries

Low usage basket results

Most Arab countries have a lowfixed cost, and “average to high” usage cost.

OECD Residential basket, Low Usage

21.4924.59

25 53

UAE, EtisalatTunisia, Tunisie Telecom

B h i B t l

January 2009OECD simple average

usage cost.

International calls are particularlyexpensive (see international basket).For Arab countries the international

25.53

25.7526.52

29.4232.55

34.37

36 99

Bahrain, BatelcoSyria, Syrian Telecom *

Qatar, QtelYemen, Tele Yemen *Libya, Libya Telecom

Saudi Arabia, Saudi TelecomJordan Orange

Arab simple average

For Arab countries the internationalusage is 62% of the total usage, whilefor the OECD it is 31%.

36.9941.28

42.81

43.1751.11

62.7570 53

Jordan, OrangeAlgeria, Algerie Telecom

Lebanon, OgeroOman, Omantel

Egypt, Egypt TelecomSomalia, Somali TelecomMorocco Maroc Telecom 70.53

73.49

79.3398.16

19.46

22.3944 77

Morocco, Maroc TelecomMauritania, Mauritel

Djibouti, Djibouti TelecomPalestine, Paltel

Turkey, Turk TelecomSweden, Telia

USA V i NY + AT&T

Tw o cheapest OECD countries

44.77

48.4331.02

45.63

- 10 20 30 40 50 60 70 80 90 100

USA, Verizon, NY + AT&TCzech Rep.

OECD simple averageArab simple average

Currency : USD/PPP per month, VAT Included

Tw o most expensive OECD countries

C t i k d * d t h

The “average” lines are indications of the averages across OECD countries and Arab countries covered in this study

y p ,

Fixed UsageCountries marked * do not havecomplete tarif f data.

Medium usage basket results

OECD Residential basket, Medium Usage

23.5324.58

24 97

Yemen, Tele Yemen *UAE, Etisalat

Syria Syrian Telecom *


24.97

28.6432.27

37.0143.02

43.33

49 28

Syria, Syrian Telecom Qatar, Qtel

Bahrain, BatelcoTunisia, Tunisie Telecom

Saudi Arabia, Saudi TelecomLibya, Libya Telecom

Jordan Orange

Arab simple average

49.2855.01

58.97

62.5264.13

71.2679 17

Jordan, OrangeOman, OmantelLebanon, Ogero

Egypt, Egypt TelecomAlgeria, Algerie Telecom

Somalia, Somali TelecomDjibouti Djibouti Telecom 79.17

86.71

103.34142.16

28.32

29.2458 49

Djibouti, Djibouti TelecomMorocco, Maroc Telecom

Mauritania, MauritelPalestine, Paltel

Sweden, TeliaKorea, KT

Australia Telstra


58.49

67.6441.32

56.86

- 20 40 60 80 100 120 140

Australia, TelstraCzech Rep.




Countries marked * do not have



High usage basket results

With high usage only three ofthe Arab countries can compare withthe average OECD cost.

OECD Residential basket, High Usage

61.5265.32

70 44

UAE, EtisalatQatar, Qtel

Syria Syrian Telecom *


The low fixed cost will, combined withthe relatively high usage cost, createa situation where competing operatorsmay easily attract high volume users

70.44

75.1778.70

84.1194.13

98.92

111 02

Syria, Syrian Telecom Bahrain, Batelco

Saudi Arabia, Saudi TelecomTunisia, Tunisie Telecom

Yemen, Tele Yemen *Jordan, OrangeOman Omantel

Arab simple average

may easily attract high volume users.Buying the low cost line from the incumbent operator, and cheapercalls from an indirect provider, may be a tempting alternative when usage

111.02119.61

129.12

132.20138.66

142.19154 65

Oman, OmantelLebanon, Ogero

Libya, Libya TelecomAlgeria, Algerie TelecomMorocco, Maroc Telecom

Somalia, Somali TelecomEgypt Egypt Telecom be a tempting alternative when usage

is high.This may put the incumbent operatorin a difficult position.

154.65

182.65

250.38344.78

32.30

42.43102 12

Egypt, Egypt TelecomMauritania, Mauritel

Djibouti, Djibouti TelecomPalestine, Paltel

Canada, BellSweden, Telia

Mexico Telmex


102.12

118.5269.21

125.76

- 50 100 150 200 250 300 350

Mexico, TelmexCzech Rep.







SOHO basket results

The profile of the “Small Office /Home Office” basket is largely similarto the Medium Residential basket.The main difference is higher overall

OECD Business basket, SOHO

28.1633.93

37 34

Syria, Syrian Telecom *Yemen, Tele Yemen *

Tunisia Tunisie Telecom


A b i le a d e e ce s g e o e a

usage and more international calls.

The difference between the Arab andthe OECD averages is smaller for

37.34

39.3243.91

48.0359.25

59.27

60 18

Tunisia, Tunisie TelecomBahrain, Batelco

UAE, EtisalatSaudi Arabia, Saudi Telecom

Algeria, Algerie TelecomOman, OmantelJordan Orange

Arab simple average

gbusiness services than for residentialservices.

60.1862.08

68.88

70.6971.74

83.8284 35

Jordan, OrangeLebanon, Ogero

Qatar, QtelLibya, Libya TelecomEgypt, Egypt Telecom

Morocco, Maroc TelecomSomalia Somali Telecom 84.35

91.24

112.39178.53

26.12

29.1567 36

Somalia, Somali TelecomDjibouti, Djibouti Telecom

Mauritania, MauritelPalestine, Paltel

Denmark, TDCKorea, KT

Czech Rep Telefonica O2


67.36

73.0351.95

62.76

- 20 40 60 80 100 120 140 160 180 200

Czech Rep., Telefonica O2Mexico


Currency : USD/PPP per month, VAT Excluded





SME basket results

The SME basket covers 30 lines and 30 users. Usage per useris higher than with the SOHObasket

OECD Business basket, SME

1,899.142,115.65

2 137 58

Tunisia, Tunisie TelecomSyria, Syrian Telecom *

UAE Etisalat


A b i l basket.2,137.58

2,201.682,261.94

2,803.352,844.84

2,923.86

2 947 11

UAE, EtisalatBahrain, Batelco

Saudi Arabia, Saudi TelecomAlgeria, Algerie Telecom

Jordan, OrangeQatar, Qtel

Lebanon Ogero

Arab simple average

2,947.113,060.37

3,167.18

3,506.193,715.62

4,004.054 518 98

Lebanon, OgeroOman, Omantel

Yemen, Tele Yemen *Libya, Libya Telecom

Morocco, Maroc TelecomSomalia, Somali Telecom

Egypt Egypt Telecom 4,518.98

5,995.38

6,772.449,802.02

960.54

1,005.503 077 09

Egypt, Egypt TelecomMauritania, Mauritel

Djibouti, Djibouti TelecomPalestine, PaltelNorway, Telenor

Denmark, TDCUK BT


3,077.09

3,273.642,048.62

3,493.30

- 2,500 5,000 7,500 10,000

UK, BTMexico


Currency : USD/PPP per month, VAT Excluded





International call basket

The international basket gives the weighted average of the cost of one call, weighted by:

Destination: 22 Arab countries 4 Western and 4 Eastern countries– Destination: 22 Arab countries, 4 Western and 4 Eastern countries– Time of day: Residential basket with 25% peak time and 75% off-peak

timeDuration: Peak calls of 3 minutes off peak calls of 5 minutes– Duration: Peak calls of 3 minutes, off-peak calls of 5 minutes

The destinations are weighted based on originating and destination countries:

F T N Af i ME W t ME E t E Af i E N A i A iFrom To N. Africa ME West ME East E. Africa Europe N. AmericaAsiaNorth Africa 30% 10% 10% 10% 20% 10% 10%ME West 10% 35% 10% 5% 20% 15% 5%ME East 10% 10% 35% 5% 5% 15% 20%East Africa 10% 10% 20% 30% 10% 10% 10%

North Africa Algeria Libya Mauritania Morocco TunisiaNorth Africa Algeria Libya Mauritania Morocco TunisiaME West Jordan Lebanon Palestine SyriaME East Bahrain Iraq Kuwait Oman Qatar Saudi UAE YemenEast Africa Comoros Djibouti Egypt Somalia SudanEurope France UK SpainN. America USAAsia India Phillipines Japan Australia

Asia India Phillipines Japan Australia

International call basket

International Residential Basket

1.762.30

2 57

Saudi Arabia, Saudi TelecomJordan, Orange

Morocco Maroc Telecom


International calls out of the Arab countries are 5 times as expensive

2.57

2.642.69

2.692.94

3.02

3 03

Morocco, Maroc TelecomLebanon, Ogero

Qatar, QtelTunisia, Tunisie TelecomAlgeria, Algerie Telecom

Bahrain, BatelcoUAE Etisalat

Arab simple average

pas the OECD countries on average,and even the cheapest Arab countryis 20 times more expensive than the “best in class” OECD country.

3.033.35

4.74

4.984.99

5.257 54

UAE, EtisalatOman, Omantel

Syria, Syrian Telecom *Libya, Libya Telecom

Mauritania, MauritelSomalia, Somali Telecom

Egypt Egypt Telecom y7.54

7.74

10.5416.76

0.15

0.212 71

Egypt, Egypt TelecomYemen, Tele Yemen *

Palestine, PaltelDjibouti, Djibouti Telecom

Germany, Deutsche TelekomCanada, Bell

Korea KT


2.71

2.740.97

4.93

- 2 4 6 8 10 12 14 16 18 20

Korea, KTMexico


Currency : USD/PPP per call, VAT Included





Fixed voice basket results 2008 – 2009 (based on national currency)

Price changes 2008 - 2009:– Algeria: Line rental change– Egypt: Significant changes with higher line

rental, higher local call charges, and lower charges for calls to mobiles.

PSTN price change 2008 - 2009

-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30%

Algeria

B h i– Jordan: No actual increase, 2009 data

includes more international destinations and is thus a better reflection of the actual basket cost.

– Lebanon: Lower installation charge, and off-

Bahrain

Djibouti

Egypt

Jordan

peak call charge to fixed lines.– Morocco: New range of packages, higher line

rental, simpler call charges to fixed, cheaper international calls.

– Oman: New packages with higher line rental,

Lebanon

Libya

Mauritania

Moroccolong distance charges removed

– Qatar: Increase in call charges to mobiles.– Saudi Arabia: Reduction in international call

charges.– UAE: Minor change in residential international

Morocco

Oman

Palestine

Qatar

UAE: Minor change in residential international call charges, new business call charges.

– Libya was not included in the 2008 data.The gap between the Arab average and the OECD average has widened over the last year for residential users primarily because the prices in

Saudi Arabia

Somalia

Syria

Tunisia

LowMediumHighSOHO

residential users, primarily because the prices in OECD countries have gone down more than in Arab countries.

UAE

Yemen

SMERes. Intn.

Price change analysis is based on prices in nationalcurrency for each country.

Observations from PSTN basket resultsThe cheapest countries throughout are : (*)

– UAE, Tunisia, Bahrain, Qatar, Saudi Arabia• The exact order of these may vary with usage level• This list is based on average ranking across all five baskets, residential and businessg g ,

Most of these countries have total costs below or just above the OECD average for all baskets

– Generally the Arab countries in North Africa are more expensive than the Arab countries in the Middle East.

The price range for the Arab countries (cheapest to most expensive) is wider than for the OECD countries

– The cheapest OECD country is below the cheapest Arab country– The most expensive Arab country is significantly more expensive than the most expensive– The most expensive Arab country is significantly more expensive than the most expensive

OECD country

Most of the Arab countries have fixed costs well below the OECD countries, causing the usage element to dominate. This makes the overall cost grow quicker with increasing usage, something that will discourage growth in usage.Even with significantly lower fixed cost the overall cost of using the service is higher in the Arab countries than in the OECD countries. There is a clear lack of rebalancing in most Arab countries, where the usage revenue covers a significant portion of the fixed line cost for the operators.

g p pInternational calls are significantly more expensive than in OECD countries

* Countries with gaps in the tariff information are not considered.

Mobile basket , as defined by the OECD

Three different basket definitions:– Low usage, medium usage and high usage– The low usage results will include both pre- and post-paid tariff packages

Th b k t d fi th l d th t t fThe baskets define the volumes and the structure of usage– Volume and distribution of calls to different destinations– Distribution of calls at different times of day

Destinations Local NationalMobile On-net

Mobile Off-net

Voice mail

SMS On-net

SMS Off-net

Calls / messagesper month Voice SMS MMS

– Call durations are in the range of 1.4 to 1.9 minutes per call

Destinations Local National On-net Off-net mail On-net Off-netLow usage 15.00% 7.00% 48.00% 22.00% 8.00% 65.00% 35.00%Medium usage 14.00% 7.00% 48.00% 24.00% 7.00% 65.00% 35.00%High usage 13.00% 7.00% 47.00% 26.00% 7.00% 65.00% 35.00%

per month Voice SMS MMSLow usage 30 33 0.67Medium usage 65 50 0.67High usage 140 55 1.00

1.4 to 1.9 minutes per callTariffs from the two dominant operators in each country

– Several tariff packages are covered for each operatorTariff information covers:

– Fixed charges for connection and rental

ToD Peak Off-peak WeekendLow usage 48.00% 25.00% 27.00%Medium usage 50.00% 24.00% 26.00%High usage 60.00% 19.00% 21.00%

Fixed charges for connection and rental– Calls to fixed network, on-net and off-net mobile, and international calls to other AREGNET

countries plus a few others (see international basket on earlier page)– Charges for SMS, MMS and voicemail calls

The results show the lowest cost option for each operator

p pThe international calls are added to the OECD basket definition for this study.

Mobile tariff data issues

Tariff data was researched from operator websites in the first weeks of January 2009.– Additional clarifications have been sought from the operators andAdditional clarifications have been sought from the operators and

regulators.– Regulators have been offered the opportunity to comment on the tariff

information and the draft version of this report.N t iff i f ti il bl fNo tariff information available for:– Djibouti– Somalia

Syria– Syria– One operator only for Comoros, Palestine, Qatar(*) and Mauritania

Part of tariff information missing for:– Iraq (International call prices for AsiaCell)– Iraq (International call prices for AsiaCell)– Kuwait (international call prices for Zain)

Otherwise two operators are covered for each countryA total of 248 tariff packages covered for 32 operators in 19 countries

A total of 248 tariff packages covered for 32 operators in 19 countries

* There is only one active operator in Qatar.

Low usage mobile basket results

For the Low usage basketboth pre- and post-paidtariffs are included.The cheapest option is

Low user basket

10.3610.5110.6811.2011 63

Jordan, Orange *UAE, du *

UAE, Etisalat *Iraq, Korek *

Kuwait Zain *

OECD average

Pre-Paid and Post-paid

The cheapest option isselected regardless oftariff type.

Most of the tariffs shown in

11.6311.77

13.2613.9914.2014.4514.6615.01

Kuwait, Zain *Jordan, Zain *

Bahrain, Zain BH *Saudi Arabia, Mobily *

Bahrain, Batelco *Oman, Oman Mobile *

Kuwait, Wataniya *Sudan, MTN *

Arab average

Arab average - Intn

Most of the tariffs shown inthis graph are pre-paid (marked with an *).

15.3916.0016.8817.0417.3618.1018.24

19 71

Oman, Nawras *Sudan, Zain SD *

Tunisia, Tunisie TélécomSaudi Arabia, Al Jawal *

Qatar, Qtel *Tunisia, Tunisiana *

Algeria, Djezzy *Algeria ATM Mobilis *

FixedVoiceMessagesIntn.

The OECD results do not includeInternational calls as theseare not part of the OECDbasket definitions

19.7119.88

22.3723.1223.56

26.0128.03

38.67

Algeria, ATM Mobilis Egypt, Mobinil

Libya, alMadar *Libya, Libyana *Egypt, Etisalat *

Yemen, MTN *Mauritania, Mattel

Comoros, Huribasket definitions.The “Arab average – Intn” line shows the equivalent averagebased on the Arab basket results

47.1648.53

68.5183.5884.22

4.004.45

20.57

Morocco, Meditel *Morocco, IAM

Palestine, Jawwal *Lebanon, Touch *

Lebanon, AlfaDenmark, Sonofon *

Sweden, Tele 2 ComviqSpain, MoviStar OECD results, minimum and maximum

25.1412.77

25.13

- 10 20 30 40 50 60 70 80 90 100

p ,USA, AT&T *


USD/PPP per month including VAT

Medium usage mobile basket resultsMedium user basket

27.0728.4228.8930.28

34 91

UAE, duUAE, Etisalat

Bahrain, Zain BHBahrain, Batelco

Oman Nawras

OECD average

Post-paid

34.9135.4836.9036.9737.9738.3039.4339.81

Oman, NawrasJordan, Orange

Jordan, ZainTunisia, Tunisie Télécom

Oman, Oman MobileTunisia, Tunisiana

Saudi Arabia, MobilySudan, Zain SD

Arab average

Arab average - Intn

39.9640.1640.6442.3142.4842.5643.0544.79

Algeria, DjezzyKuwait, Zain

Egypt, MobinilKuwait, Wataniya

Qatar, QtelAlgeria, ATM Mobilis

Egypt, EtisalatYemen, MTN



45.5247.37

56.4664.78

77.0290.45

111.81112 73

,Saudi Arabia, Al Jawal

Sudan, MTNMorocco, IAM

Mauritania, MattelComoros, Huri

Morocco, MeditelLebanon, Alfa

Lebanon Touch basket definitions.The “Arab average – Intn” line shows the equivalent averagebased on the Arab basket results

112.73129.91

182.26--

7.3710.45

43.44

Lebanon, TouchPalestine, Jawwal

Libya, alMadar - -

Sweden, Tele 2 ComviqFinland, Elisa

Canada, Bell Mobility OECD results, minimum and maximum

52.9924.51

55.62

- 20 40 60 80 100 120 140 160 180 200

USA, AT&TOECD simple average

Arab simple average


High usage mobile basket resultsHigh user basket

42.3442.95

48.0348.3548 71

UAE, EtisalatUAE, du

Jordan, OrangeKuwait, Zain

Bahrain Zain BH

OECD average

Post-paid

48.7151.29

55.0955.5656.7857.1558.9359.77

Bahrain, Zain BHBahrain, Batelco

Oman, NawrasJordan, Zain

Qatar, QtelOman, Oman Mobile

Tunisia, TunisianaSaudi Arabia, Mobily

Arab average

Arab average - Intn

60.6761.13

64.7465.98

70.1370.3570.9572.94

Algeria, DjezzyKuwait, Wataniya

Algeria, ATM MobilisSudan, Zain SD

Egypt, MobinilYemen, MTN

Saudi Arabia, Al JawalTunisia, Tunisie Télécom



76.0076.1376.67

125.94138.67

145.24155.61156 25

,Sudan, MTN

Morocco, IAMEgypt, Etisalat

Mauritania, MattelComoros, Huri

Morocco, MeditelLebanon, Alfa

Lebanon Touch basket definitions.The “Arab average – Intn” line shows the equivalent averagebased on the Arab basket results

156.25213.15

236.64--

13.8814.56

77.91

Lebanon, TouchPalestine, Jawwal

Libya, alMadar - -

Finland, ElisaDenmark, Sonofon

Slovak Republic, T-Mobile OECD results, minimum and maximum

78.6737.77

85.41

- 50 100 150 200 250

Spain, MoviStarOECD simple average

Arab simple average


Mobile basket results 2008 – 2009 (based on national currency)

Changes affecting the mobile basket results:

– Algeria: Many new tariffs– Bahrain: change in some per-paid tariffs

Mobile price change 2008 - 2009-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Algeria

Bahrain Low

MediumBahrain: change in some per paid tariffs elements

– Egypt: Price reductions– Iraq: International call charges reduced– Jordan: Price reductions and changes in

tariffs offered

Comoros

Djibouti

Egypt

Iraq

High

tariffs offered– Kuwait: Changes in tariffs offered– Lebanon: Changes in tariffs offered– Morocco: Price reductions– Oman: Price reductions and new tariffs

P l ti P i t t h

Jordan

Kuw ait

Lebanon

Libya– Palestine: Price structure changes– Qatar: Price reductions and new tariffs– Saudi Arabia: New tariffs– Tunisia: New tariffs– UAE: Pre-paid price structure change

Libya

Mauritania

Morocco

Oman

p p gIn other countries the changes have been minimal.The Arab average has not changed much over the last year, while the OECD average has had a clear

Palestine

Qatar

Saudi Arabia

Sudan

OECD average has had a clear decrease. Tunisia

UAE

YemenPrice change analysis is based on prices in nationalcurrency for each country.

Observations from Mobile basket results

The cheapest countries throughout are :– UAE, Jordan, Bahrain, Oman, Kuwait

• The exact order of these may vary with usage level• The exact order of these may vary with usage level• Only UAE is among the top 5 for all baskets• These are largely the same countries that have the best PSTN results

For low usage, with pre-paid packages, only a handful of the Arab O Ccountries have price levels below the OECD average

For medium to high usage, with post-paid packages, most Arab countries are above the OECD averageTh A b t i i 80 100% b th OECDThe average across Arab countries is 80-100% above the OECD average.

Except for the five six most expensive countries the Arab countriesExcept for the five-six most expensive countries, the Arab countries have rather uniform price levels for mobile services.Many operators have very few tariff packages on offer, i.e. do not make any great attempts to capture customers with tailored prices.

make any great attempts to capture customers with tailored prices.

Leased Lines basket, as defined by the OECD

Prices for 64kb/s, 2 Mb/s and 34 Mb/s national circuits6 specific distances are used:

– 2 km, 20 km, 50 km, 100 km, 200 km and 500 kmEach distance is weighted in order to calculate a weighted average price for one circuit:

The 3 bitrates are calculated and reported separately.

Distance (km) 2 20 50 100 200 500Weight 35% 20% 15% 20% 5% 5%

p p yWhere the distances in the basket would go beyond the country borders, the weights of those distances will be attributed to the longest available tariff zone.

– For example: In Bahrain a 64 kb/s circuit costs BD 140 regardless of distance. p gThe longest possible circuit distance in Bahrain is approximately 50 km. But the weights for 100 km (20%), 200 km (5%) and 500 km (5%) are still applied to this price as the price for the longest possible circuit in order to cover 100%.

– This may bias the results for small countries with distance-sensitive prices in the sense that a relatively higher proportion of the circuits will be at maximum costsense that a relatively higher proportion of the circuits will be at maximum cost

– Small countries with no distance pricing will be favoured by this scheme.For the Arab country price benchmarking two more bitrates are added:

– 256 kb/s in order to cover a wider range of services relevant for the region, and 155 Mb/s to show the potential for future development.

p p– To the extent they are offered in the countries concerned.

Leased Lines data issues

Tariff data was researched from operator websites in the first weeks of January 2009.

Additional clarifications have been sought from the operators and– Additional clarifications have been sought from the operators and regulators.

– Regulators have been offered the opportunity to comment on the tariff information and on the draft report.information and on the draft report.

No price data available for:– Comoros– Iraq– Iraq– Kuwait– Somalia

Sudan– SudanOther countries may have data missing for specific bitrates

64 kb/s Leased Lines basket results

64 kb/s circuit prices

96193217

SyriaLibyaEgypt A b217

300325350354

405410

EgyptJordan

LebanonTunisia

Saudi ArabiaAlgeria

Bahrain

Arab average

The OECD data shown representthe lowest and highest prices foundin OECD countries, and the averageacross all 30 OECD countries

410457483484

542555

BahrainQatarUAE

OmanYemen

MoroccoP l ti across all 30 OECD countries.637

1,4101,516

100808

333

PalestineMauritania

DjiboutiIceland

Czech Rep.OECD simple average OECD average

451

- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

Arab simple average

Monthly prices in US$ PPP, VAT excluded

256kb/s Leased Lines basket results

256 kb/s circuit prices

199

564

660

Syria

Egypt

J d 660

672

676

701

788

Jordan

Libya

Lebanon

Tunisia

Bahrain

Arab average

801

827

839

967

995

Algeria

Saudi Arabia

Qatar

Oman

Palestine

1,084

1,129

1,351

2,005

2,175

Yemen

Morocco

UAE

Mauritania

Djibouti

967

- 500 1,000 1,500 2,000 2,500 3,000

Arab simple average


Note: No equivalent OECD data exist.

2 Mb/s Leased Lines basket results

2 Mb/s circuit prices

1,3021,327

1,778

EgyptLebanon

Syria A b1,7781,8792,039

2,4182,5532,8022 807

SyriaSaudi Arabia

QatarOman

AlgeriaMoroccoBahrain

Arab average


2,8072,8602,9783,211

3,7864,058

BahrainUAE

TunisiaJordan

LibyaDjibouti

across all 30 OECD countries.5,1505,419

15,082247

4,4461,826

PalestineYemen

MauritaniaDenmark

Czech Rep.OECD simple average

OECD average

3,615

- 4,000 8,000 12,000 16,000 20,000

Arab simple average



Only a few of the Arab countriespublish these prices.The service may still be offeredthough


6,108

8,682

11,074

QatarEgypt

Saudi ArabiaArab average

though.25,526

26,450

64,365

1,683

21,358

AlgeriaMorocco

LibyaIcelandMexico

O C OECD


9,210

23,701

- 20,000 40,000 60,000 80,000



OECD

across all 30 OECD countries.


Only a few of the Arab countriespublish these prices.The service may still be offeredthough


17,364

22,571

23,905

EgyptSaudi Arabia

Qatar

Arab average

though.76,579

72,300

- 50,000 100,000 150,000 200,000

AlgeriaLibya

Arab simple average


221,079 --->

Note: No equivalent OECD data exist.

Leased Line basket results 2008 – 2009 (based on national currency)

The basket results are affected by:– Algeria: General price reductions.– Bahrain: No price reduction (2009

data based on 1 year contract tariff,

Leased Line price changes 2008 - 2009

-80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0%

Algeria

Bahrainy ,2008 was based on open term contract tariffs).

– Jordan: Slight price increase for 256 kb/s, long distances.Morocco: Slight price increase for

Bahrain

Comoros

Djibouti

Egypt

Iraq– Morocco: Slight price increase for 64 kb/s.

– Oman: Slight price increase for 64 kb/s, below 100 km.

– Saudi Arabia: Price reductions for

Jordan

Kuwait

Lebanon

Libya

64 k

256k2 M

34 M

155M

circuits below 100 km– Tunisia: Price increase for 64 kb/s,

all distancesNo price changes recorded in other

t i

Mauritania

Morocco

Oman

Palestine

Q tcountries.The Arab average is closing in on the OECD average for low speeds (<= 2 Mb/s):

Qatar

Saudi Arabia

Somalia

Sudan

Syria64 k 2 M 34 M

y

Tunisia

UAE

Yemen

Arab/OECD 2009 136% 198% 257%average 2008 198% 251% 252%

Price change analysis is based on prices in nationalcurrency for each country.

Observations from Leased Line basket results

Egypt, Jordan, Lebanon, Qatar, Saudi Arabia and Syria have the lowest prices for National Leased Lines.

– Price levels in these countries are below or close to the OECD average– The price ranking may vary with product

The majority of the Arab countries have prices below the most expensive OECD country

– For 64 kb/s the prices in Djibouti and Mauritania stands out as very high– For 64 kb/s the prices in Djibouti and Mauritania stands out as very high. – For 2 Mb/s the prices in Mauritania stands out as very high. – For 34 Mb/s and 155 Mb/s the prices in Libya appear on the high side

For speeds up to 2 Mb/s the Arab average is in line with the OECD average. – For higher speeds the prices in Arab countries appear higher than in the OECD

countriesHowever, most Arab countries are more expensive than the OECD “best-in-class”.Many of the Arab countries are quite small in size and this price comparison may give advantage to the tariff structure used in these small countries.

– i.e. the reality may be worse than shown here.

Broadband basket methodologyR h i 148 ADSL i ff i f h i b ISP* i 18 A b iResearch covering 148 ADSL service offerings from the incumbent ISP* in 18 Arab countriesCosts are presented for low speed (< 1 Mb/s) and medium speed (1-4 Mb/s) services separately.

– Low speed does not include 1024 kb/s offers– Not all providers may offer services in both categoriesp y g– Not all providers may publish tariffs for both residential and business services

Total monthly cost calculated based on two usage profiles:– Low usage: 1 GB and 10 hours per month, in 20 minute sessions.

High usage: 5 GB and 30 hours per month in 30 minute sessions– High usage: 5 GB and 30 hours per month, in 30 minute sessions.Only “actual price” results are shown in this report.

– “Actual price” refers to the monthly cost paid by the customer, as opposed to the “Normalised” price per 1 Mb/s that can also be produced by the benchmarking system

The European data shown refer to the incumbent ISP* ADSL services in 30 European countriesTariff data cover the cheapest form of installation, modem cost (if applicable), monthly rental, usage allowances and any usage charges.Additional information on speed, web-space, email addresses, penalties with excess usage, and contract term duration is also included in the basic data and presented along with the cost results.

– To the extent this information is published by the providerPlease also see the document on “AREGNET Price Benchmarking Methodology

– Please also see the document on AREGNET Price Benchmarking Methodology

* Incumbent ISP will normally mean the ISP owned by the incumbent operator in the country.

Broadband data issues

Price data not available for broadband services in:– Iraq

K it– Kuwait– Palestine– Somalia

S d i f l d d h d b d fSpeed assumptions for upload speed had to be made for:– Saudi Arabia

Regulators have been offered the opportunity to comment on the tariff information and the draft report.Most providers in the Arab countries offer speeds down towards 128 kb/s. The highest speed from many providers is 2 Mb/s or below.– The results shown focus on speeds from 256 kb/s and upwards. This

corresponds with the general definition of broadband.

Residential low speed broadband (below 1 Mb/s)

Low speed residential broadband services

21.87

28.59

29 28

Algeria - 32 / 256

Morocco - 128 / 256Red line = European low usage simple averageBlue line = Arab low usage simple average

29.2830.79

37.81

41.54

45.48

Egypt - 128 / 256UAE - 64 / 256

Tunisia - 128 / 256

Bahrain - 64 / 256

Libya - 128 / 25657.64

65.1565.38

66.95

70.62

Oman - 128 / 512Sudan - 64 / 256

Jordan - 128 / 512

Saudi Arabia - 128 / 256

Lebanon - 64 / 256143.00

147.56163.16

644.26

671.32

Syria - 64 / 256

Djibouti - 128 / 256Mauritania - 64 / 256

Yemen - 64 / 256

Comoros - 64 / 256-

20.33

42.3929.82

137.08

-

Switzerland - 100 / 300Cyprus - 192 / 512

Europe simple average

Arab simple average

Lowest and highest price level in Europe

European and Arab region averages

- 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00

p g

Actual prices in US$ / PPP per Month, VAT included

Low usage cost High usage cost

Residential medium speed broadband (1 – 4 Mb/s)

Medium speed residential broadband services

43.47

52.77

Morocco - 512 / 1024

Tunisia - 512 / 1024

Red line = European low usage simple averageBlue line = Arab low usage simple average

56.36

75.33

82.50

83.68

Algeria - 64 / 1024

Qatar - 128 / 1024

Jordan - 256 / 1024

Oman - 128 / 1024

92.54

97.61

129.46

157.01

UAE - 256 / 1024

Egypt - 256 / 1024

Saudi Arabia - 256 / 1024

Lebanon - 256 / 1024

162.80

268.08

Bahrain - 256 / 1024

Sudan - 256 / 1024

21.26

64.88

37.66

150.55

Ireland - 128 / 1024

Malta - 512 / 2048


Arab simple average



- 50.00 100.00 150.00 200.00 250.00 300.00

Arab simple average



Business low speed broadband (below 1 Mb/s)

Low speed business broadband services

28.59

29.28Morocco - 128 / 256

Egypt - 128 / 256Red line = European low usage simple averageBlue line = Arab low usage simple average

45.48

65.15

90.56

97.52

114 29

Libya - 128 / 256

Sudan - 64 / 256

Lebanon - 64 / 256

Jordan - 128 / 512114.29

173.93

192.88

606.98

644.26

Bahrain - 64 / 256

UAE - 128 / 512

Algeria - 32 / 256

Djibouti - 128 / 512

Yemen - 64 / 256897.52

-

-

-

Yemen 64 / 256

Tunisia - 256 / 512

-

-

- 28.10

42.39

34.77

248.87

Switzerland - 100 / 1000

Cyprus - 192 / 512


Arab simple average



- 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00 900.001,000.00Actual prices in US$ / PPP per Month, VAT included


Business medium speed broadband (1 – 4 Mb/s)

Medium speed business broadband services

43.47

97.61Morocco - 512 / 1024

Egypt 256 / 1024

Red line = European low usage simple averageBlue line = Arab low usage simple average

166.03

183.59

213.91

219 92

Egypt - 256 / 1024

Jordan - 256 / 1024

Lebanon - 256 / 1024

Oman - 256 / 1024

g p g

219.92

268.08

439.07

463.03

Qatar - 128 / 1024

Sudan - 256 / 1024

UAE - 256 / 1024

Algeria - 64 / 1024511.96

1,008.97

1,451.91

21.26

Bahrain - 256 / 1024

Djibouti - 256 / 1024

Tunisia - 512 / 1024

Ireland - 128 / 1024 Lowest and highest price level in Europe160.42

61.64

422.30

Ireland 128 / 1024

Austria - 2048 / 2048


Arab simple average



- 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 1,600.00



Residential vs. Business broadband prices

The reason for the highbusiness price inTunisia is the chargeto the incumbent operatorfor network access.

Low speed (<1 Mb/s), low usage broadband

21.87

28.59

29.28

192.88

28.59

29 28

Algeria

Morocco

Egypt

Medium speed (1-4 Mb/s), low usage broadband

43.47

52.77

56 36

43.47Morocco

Tunisia1,452 --->

30.79

41.54

45.48

57.64

29.28

173.93

114.29

45.48

-

gyp

UAE

Bahrain

Libya

Oman

56.36

75.33

82.50

83.68

463.03

219.92

166.03

213.91

Algeria

Qatar

Jordan

Oman

65.15

66.95

147.56

644.26

65.15

-

606.98

644.26

Sudan

Saudi Arabia

Djibouti

Yemen

92.54

129.46

157.01

162.80

439.07

-

183.59

UAE

Saudi Arabia

Lebanon

B h i671.32

-

29.82

137.08

-

-

34.77

248.87

Comoros


Arab simple average

268.08

37.66

150.55

511.96

268.08

61.64

422.30

Bahrain

Sudan

Europe simpleaverage

Arab simple average

- 100 200 300 400 500 600 700

US$/PPP per month, VAT included

Residential Business

- 200 400 600 800 1,000

US$/PPP per month, VAT included

Residential Business

Low speed Medium speed

Business to residential price relationship in Arabcountries compared to European average.

Some business services offer higher speed and more space than comparable residential services.

p pArab simple average 182% 280%Europe simple average 117% 164%

Broadband basket results 2008 – 2009 (based on national currency)

The basket results are affected by:– Algeria: Reduced monthly rental

– Djibouti: Reduced monthly rental

Broadband price change 2008 - 2009

-100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0%

Algeria

Bahrain Low Speed Low usagej y

– Egypt: Change in usage allowance

– Jordan: Not an actual increase, but the incumbent access charge was not registered in the 2008 data

Comoros

Djibouti

Egypt

Iraq

Low Speed, Low usage

Low Speed, High usage

Medium Speed, Low usage

Medium Speed, High usage

registered in the 2008 data

– Morocco: Reduced monthly rental

– Oman: Change in package range, and monthly rental

Jordan

Kuw ait

Lebanon

Libya

– Qatar: Price structure change for business

– Sudan: Reduced prices

– UAE: Reduced monthly rental

Prices in Arab countries have gone down

Mauritania

Morocco

Oman

Palestine

Prices in Arab countries have gone down significantly over the last year. But so has prices in Europe, and the relative difference stays basically the same.

Qatar

Saudi Arabia

Somalia

Sudan

Syria

Syria

Tunisia

UAE

YemenPrice change analysis is based on prices in nationalcurrency for each country.

Observations from Broadband basket results

Speeds above 4 Mb/s appear only to be offered by incumbents in 5 of the countries:

– Morocco, Oman, Qatar, Saudi Arabia, Syria.Th i diff t b t t i– The prices are very different between countries

– Price difference between lowest and highest price level is 3064% for low speed services, and 2321% for medium/high speed.

Speeds below 256 kb/s are common in most Arab countriesFor speeds above 1 Mb/s the prices are generally higher than what is found inFor speeds above 1 Mb/s the prices are generally higher than what is found in Europe

– For low speed broadband (0.256 - 1 Mb/s) the prices in the majority of the Arab countries tend to be similar to the European average, but the speeds used in Europe will be higher.p g

– In Europe the most common speeds are in the range 1-4 Mb/s and above, and lower speeds are in many cases not offered at all. There is a clear move towards higher speeds, only since last year the situation has changed significantly.

The average price relationship between business and residential offering is hi h f A b t i th E t ihigher for Arab countries than European countries

– Please note that specific business offerings often include higher speeds, more email and web space, and different conditions.

Most services are very basic and do not offer many additional facilities

facilitiesOnly some of the countries apply usage-based prices

Call cost comparison

The comparison of call cost is based on the actual cost of a 3 minute call.C t d f L l ll N ti l ll d ll t th USACosts are compared for Local calls, National calls and calls to the USA– At peak and off-peak times– Off-peak meaning the lowest possible cost period

These comparisons have a much simpler methodology than the basket comparisons shown elsewhere in this report, and will reflect the costs for specific call types.The results are presented with countries in alphabetical order as a ranking of these results is not necessarily useful.– Services with for example free calls (zero cost per call) may still have a

higher cost to the end user

Local call comparison

Many of the countries have the same prices for local and national calls.

3 minute local call

0.170.08

AlgeriaBahrain

Comoros No data

Peak averageOff-peak average calls.

Entries with call cost of 0.00 havefree calling included in the monthlyrental

0.180.08

0.12

0.18

DjiboutiEgypt

IraqJordanKuwait

Lebanon

No data

No data

No data

rental.0.00

0.640.28

0.200.26

0 00

LebanonLibya

MauritaniaMorocco

OmanPalestine

0.000.06

0.00

0.030.05

QatarSaudi Arabia

SomaliaSudan

SyriaTunisia

Peak

Off-peak

No data

0.00

0.14

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70

UAEYemen

Arab simple average

No data

US$ PPP, VAT included

National call comparison

3 minute national call

0.340.08

AlgeriaBahrain

Comoros No dataPeak averageOff-peak average

Entries with call cost of 0.00 havefree calling included in the monthlyrental

0.180.39

0.14

0.18

DjiboutiEgypt

IraqJordanKuwait

Lebanon

No data

No data

p g

rental.0.00

0.640.51

0.200.26

0 00

LebanonLibya

MauritaniaMorocco

OmanPalestine

Qatar 0.000.25

0.06

0.030.47

0 33

QatarSaudi Arabia

SomaliaSudan

SyriaTunisia Peak

No data

0.33

0.24

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70

UAEYemen

Arab simple average

Off-peakNo data


Local vs. National

3 minute local vs. national call (peak time)

0.170.08

0.340.08

AlgeriaBahrain

ComorosLocal averageNational average

For entries with no bar in the graph,please refer to the data in thespecial local and national graphs

0.180.08

0.12

0 18

0.18

0.14

0.39

DjiboutiEgypt

IraqJordanKuwait

Lebanon

National average

special local and national graphs.0.18

0.640.28

0.200.26

0.510.20

0.26

0.64

0.18LebanonLibya

MauritaniaMorocco

OmanPalestine

0.06

0.030.05

0.250.06

0.47

0.03

QatarSaudi Arabia

SomaliaSudan

SyriaTunisia Local

0.14

0.470.33

0.24

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70

UAEYemen

Arab simple average

Local

National


International call comparison (call to USA)

3 minute call to USA

1.642.18

AlgeriaBahrain

Comoros No data

Peak averageOff-peak average

14.485.88

0.95

2.17

DjiboutiEgypt

IraqJordanKuwait

Lebanon

No data

No data

No data

2.104.83

2.492.60

5.552 29

LebanonLibya

MauritaniaMorocco

OmanPalestine

Q t 2.292.50

1.05

4.271.18

QatarSaudi Arabia

SomaliaSudan

SyriaTunisia

Peak

Off-peak

No data

2.316.05

3.58

0 2 4 6 8 10 12 14 16

UAEYemen

Arab simple average


National vs. International to USA

3 minute National vs. International call (peak time)

0.340.08

1.642.18

AlgeriaBahrain

ComorosNational averageIntn. USA average

For entries with no bar in the graph,please refer to the data in thespecial national graph

0.180.39

0.14

0 18

5.88

0.95

DjiboutiEgypt

IraqJordanKuwait

Lebanon

Intn. USA average

special national graph.0.18

0.64

0.510.200.26

2.492.60

2.17

4.83

5.55

2.097

LebanonLibya

MauritaniaMorocco

OmanPalestine

0.25

0.03

0.47

2.501.05

1 18

0.00

0.06

4.27

2.29QatarSaudi Arabia

SomaliaSudan

SyriaTunisia National

0.24

1.182.31

3.58

0.33

6.05

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

UAEYemen

Arab simple average

National

Intn. USA


Call costs 2008 – 2009 (based on national currency)

Very few call charges have actually changed 2008 – 2009– No changes in basic national call charges and basic international

call chargescall charges– Some changes in local call charges (see below)– The range of tariff packages has expanded in many countries,

and alternative call charges may often be availableand alternative call charges may often be available.Changes in local call charges:– Egypt: Local call charges have increased with 30%

and are still below the average• … and are still below the average– Lebanon: Off peak charges for local calls are introduced– Oman: New tariffs have higher peak and lower off-peak charges

than before, last year had one charge at all times.than before, last year had one charge at all times.

Observations from the call cost comparison

Prices of calls vary considerably between countriesAbout half of the countries do not offer off-peak rates for national callsOff-peak discounts for international calls are generally quite smallIn in some countries the local and/or national calls are “free”, i.e. included in the monthly rental.– Libya, Qatar and UAE

In some countries there are several tariff options available, with different call charges and fixed charges. This analysis is based on the so called “basic” packages.Ratios of national to international call prices indicate that rebalancing of call charges has not yet taken place in many countries of the region

Main findings from the benchmarking studyFi d i t l hFixed voice telephony

– Prices are on average higher in Arab countries than in OECD countries– There is a wide spread of price levels between the Arab countries– Rates are not rebalanced, with low fixed and high usage costs– Especially the international call charges are higher than in OECD countriesEspecially the international call charges are higher than in OECD countries– Prices have gone down over the last year in some countries– The lack of rebalancing will make it difficult for the incumbent operators to perform in a

competitive marketMobile telephony

Price levels in most Arab countries compare well with OECD countries especially for low and– Price levels in most Arab countries compare well with OECD countries, especially for low and medium usage

– Rather uniform prices through the region– Many countries have reduced prices over the last year

Leased Lines– Prices for high speed circuits are generally higher than in OECD countries– There is a wide spread of prices between the Arab countries

Broadband– Price levels are significantly higher in Arab countries than in Europe

The speed range offered is lower in Arab countries– The speed range offered is lower in Arab countries, and prices increase rapidly with speed.

– The higher rates will inhibit broadband penetration– Higher speeds are available in more countries than a year ago

Generally prices in Arab countries have gone down, most with Broadband services. But i i h d i th t f th ld ll th b t i

since prices have gone down in other parts of the world as well the gap between prices in Arab countries and prices in OECD / European countries remains.

Reference information

Exchange rates and VATRelated to: US$ US$ PPP % CurrencyAlgeria 0.014370 0.028740 17.0 % DZDBahrain 2.667600 4.041818 0.0 % BHDComoros 0 002609 0 004577 0 0 % KMFComoros 0.002609 0.004577 0.0 % KMFDjibouti 0.005791 0.012065 19.0 % DJFEgypt 0.182200 0.650714 10.0 % EGPIraq 1.000000 2.631579 0.0 % USDxJordan 1.422900 2.635000 16.0 % JODKuwait 3.469200 4.752329 0.0 % KWDLebanon 0.000677 0.001208 10.0 % LBPLibya 0.798700 1.996750 0.0 % LYDMauritania 0.003973 0.010738 0.0 % MROMorocco 0.116900 0.212545 20.0 % MADOman 2.604500 4.340833 0.0 % OMRPalestine 0.246500 1.232500 0.0 % ILSQatar 0.274900 0.366533 0.0 % QARSaudi Arabia 0 266700 0 416719 0 0 % SARSaudi Arabia 0.266700 0.416719 0.0 % SARSomalia 0.000730 0.002432 0.0 % SOSSudan 0.456600 1.037727 10.0 % SDGSyria 0.021640 0.056947 0.0 % SYPTunisia 0.708900 1.575333 18.0 % TNDUAE 0.272400 0.363200 0.0 % AEDYemen 0.005007 0.013908 10.0 % YER

Prices for services in Iraq are given in US$

Exchange rates taken from the Oanda web service on the 2 February 2009.PPPs are based on World Band CPL for 2005 (published 2007 latest available)

PPPs are based on World Band CPL for 2005 (published 2007, latest available).

Acronyms used in the context of this report

OECD: Organisation of Economic Co-operation and Development

OECD countries: Australia, Austria, Belgium, Canada Czech Rep Denmark Finland

Service: A telecommunications serviceBasket: A theoretical usage profile describing the usage volumes across different types of calls. The basket shall include all importantCanada, Czech Rep., Denmark, Finland,

France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Rep., Spain, Sweden Switzerland Turkey UK USA

calls. The basket shall include all important elements of the service, including fixed cost elements.Tariff: The description of all the end user prices related to a serviceTariff element: The part of a tariff describingSweden, Switzerland, Turkey, UK, USA

VAT: Value Added Tax, a consumption tax system used in most European countries and some Arab countries.

PPP: Purchasing Power Parity exchange

Tariff element: The part of a tariff describing the price(s) for a single type of call or service.Basket calculation: The process where the Basket is applied to the individual tariff in order to calculate the cost of the individual tariff elements and the overall costPPP: Purchasing Power Parity, exchange

rates adjusted for the purchasing power of consumers in each country. Used in international comparisons to adjust for market differences. This study uses data from the World Bank

tariff elements and the overall cost.Basket result: The cost of using the service as described in the Basket.Re-balancing: The process through which the prices of individual Tariff elements will cover World Bank.

CPL: Comparative Price level. The relative factor between market exchange rates and PPP. Used to calculate the PPPs from current market exchange rates.

ptheir own cost, and not subsidise other Tariff elements.

aregnet price benchmarking 2009 final… · yemen, tele yemen * libya, libya telecom saudi arabia,...

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