'Regulations will determine margins for ME telcos'

Market realisation and sector regulations to drive change in ME telecom sector.
Sector-specific regulations is seen to determine profit margins for Middle East telecom sector.
Sector-specific regulations is seen to determine profit margins for Middle East telecom sector.


Pressure in market realisation and sector-specific regulations are seen as the two main forces driving change in Middle East telecoms sector in the coming years, according to Ian Sanders, partner at research firm Pricewaterhouse Coopers (PwC).

Sanders said that these trends have the power to “shift operating models” in the telecom sector.

He said that liberalisation of the telecom sector has run its course to a large extent, particularly in countries where second and third licenses have been issued in the region. “Though we see frameworks including laws to provide sector regulations are largely in place in most of the countries in the region and a lot of capabilities are being built, there remains a gap in the actual implementation of the complex framework.” Sanders added that filling the gap can be made possible with the right regulations in place “that will increasingly determine market shares and profit margins for operators”.

“Of course, it also has to do with the political will,” he said.

“We will see this evolving as the Middle East market becomes more mature, and the governments’ appreciation on proper sector regulations rise around platforms for investment in telecom sector and service provisioning in terms of right pricing that will serve for a wider economic growth,” said Sanders. However, he added that a lot of these platforms are lacking, especially in key emerging areas such as wholesale pricing. “What this means is that the previous high operating margins of telecom operators in the region will tend to drift down. I am already seeing 50-60% of it gradually going down,” Sanders said.

He also said that as markets become more mature in the region, the focus will increasingly be on operational efficiency. “This will set the pace for more investments in next generation core and access networks, both fixed and mobile, that is seen as changing the structure and figuration of the means in which telecom services are built,” Sanders added.


REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story