Telecoms & IT
From The Report: Jordan 2013
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Subscriber numbers among the four mobile operators have continued to grow in recent years. Operating costs have risen somewhat and profits have fallen, due mostly to heightened competition. The outlook for this sector remains positive – the kingdom’s telecoms industry is progressing toward a more IT-oriented future, as data demand grows and network operators ramp up their mobile broadband and mobile content offerings. As one of the most productive sectors of the Jordanian economy, ICT accounts for some 14.1% of the kingdom’s GDP, with operators continuing to invest in infrastructure. Further, the highly skilled local labour force, stable business environment and government support have helped to support IT sector growth.
This chapter contains a roundtable with Jean-François Thomas, CEO, Orange; Ihab Hinnawi, CEO, Umniah; and Ahmad Hanandeh, CEO, Zain.

Articles from this Chapter

Overview

Increasingly mobile: The expansion of mobile broadband creates opportunities for new revenue streams
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In 1961, Jordan’s first automatic telephone service was introduced, with roughly 5000 lines in operation. Since then, the country has come a long way, becoming the second in the region to launch GSM services, after Qatar. Until the 1990s, the government was the sole telecoms operator in the country, after which time the authorities began to open the sector to private stakeholders with the aim of fostering competition and reaping the gains. In 1995, legislators introduced a new telecommunications…

Analysis

Forging ahead: Despite a highly competitive environment, operators continue to invest in mobile network upgrades
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The mobile sector in Jordan is marked by stiff competition. Indeed, in its 2012 Cellular Competition Intensity Index Amman-based Arab Advisors Group said the kingdom had the most competitive mobile telephony market in the region after Saudi Arabia, having evaluated the number of operators and services available in 19 Middle East and North Africa (MENA) countries. Competition in the local telecoms sector is positioned to become all the more intense if a fourth network operator is allowed to enter.…

Interview

OBG talks to Jean-François Thomas, CEO, Orange; Ihab Hinnawi, CEO, Umniah; and Ahmad Hanandeh, CEO, Zain
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Interview:Jean-François Thomas, Ihab Hinnawi, Ahmad Hanandeh What kind of impact would a fourth mobile operator have on the telecommunications sector? JEAN-FRANCOIS THOMAS: I believe those already operating within the sector are right to question the need for a fourth operator. Telecommunications is a capital-intensive sector in which large investments are needed to establish and expand coverage in both mobile and fixed networks. With technology changing rapidly, operators must continuously…

Overview

On a solid footing: The government and other stakeholders are driving infrastructure development and export expansion
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As a share of the overall economy, information and communications technology (ICT) stands out as one of the most productive sectors in Jordan. ICT accounts for the largest share of GDP per worker, generating 14.1% of the kingdom’s GDP, while directly employing just 1.23% of the workforce. The comparably large tourism sector, which generated 14.3% of GDP, directly employed a workforce about twice the size, accounting for 3.28% of those employed in Jordan. The country’s IT sector did not…

Analysis

The road ahead: Potential synergies from ICT development are expected in the forthcoming national strategy
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The role of the information and communications technology (ICT) sector in the Jordanian economy has grown tremendously over the past decade. In 2011 ICT generated about 14% of Jordan’s GDP, on par with sectors like the tourism sector, according to official data (see overview). As the industry grows, two key government players are responsible for guiding its development: the Ministry of Information and Communications Technology (MoICT) and the Telecommunications Regulatory Commission (TRC).…

Analysis

Looking abroad: Export strategy set to benefit from increased cross-sector cooperation
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Although the domestic market for IT products has grown in the past few years, the National Information and Communications Technology (ICT) Strategy 2013-17 recognises that supporting expansion will require a renewed focus on exports. The kingdom’s companies have been quite successful in marketing their wares abroad. Export revenues rose from just over $40m to $230.6m between 2002 and 2011, according the Ministry of ICT (MoICT). The sector was once characterised by a dependence on foreign technology,…