Narrowband internet nears extinction in UAE

A report from US firm Pyramid Research predicts that fixed broadband connections in the United Arab Emirates will continue to grow strongly over the next five years while slower speeds will disappear altogether.

The study estimates that fixed broadband connections will increase at a compound annual growth rate (CAGR) of five per cent between 2013 and 2017 to its maturity, while generating a cumulative revenue opportunity of US $6.6bn in the same period.

“Narrowband internet revenue will vanish from the market altogether, while broadband services will be a significant source of growth over the next five years, thanks to being bundled in attractive pay-TV packages,” said Kerem Arsal, Senior Analyst at Pyramid Research.

Etisalat currently has an advantage in this revenue segment because it has a more extensive fixed network infrastructure than du, and it is nearing completion on its nationwide fibre rollout, according to Arsal.

However, the effects of a yet-to-be-implement fixed network sharing agreement remain to be seen.