Arabian Gulf States to spend 25 percent of infrastructure funds on telecommunications sector over the next decade

According to estimates by industry experts, an investment of over US$ 3 billion is needed to help the regional industry reach its full potential.

This is one of the issues that will be discussed at CONNECT, the international telecoms summit organised by IIR Telecoms and Technology at the Crowne Plaza Hotel, Dubai, from May 30 to June 2, 2004. The theme of the event is "Maximising Profitability in Competitive Telecoms Markets" and will feature case studies, presentations, and two full-day workshops, conducted by 19 leading international and regional telecoms operators. The summit will highlight the lucrative growth opportunities in the region's booming telecoms sector.

CONNECT is especially relevant in light of the recent signing of a historic agreement between 16 international telecommunications companies, including UAE's Etisalat, for the SMW4 submarine cable. The SMW4 cable, which will stretch approximately 20,000 km (12,400 miles) long from Singapore to France, will be an ultra-fast submarine communications link that will transform data connectivity between the Eastern and Western worlds. The cable will cover the following signatory partners: the UAE, Singapore, Malaysia, Algeria, Thailand, Bangladesh, India, Sri Lanka, Pakistan, Saudi Arabia, Egypt, Italy, Tunisia and France.

"This project is just one of the developments in the dynamic Middle East telecoms scenario. With modern businesses being driven by communication, governments are increasingly allotting more funds to set up a world-class telecoms infrastructure," said Sabine Enthammer, Executive Director, IIR Holdings Ltd.

"Additionally, the mobile phone market is growing at a rapid pace, outnumbering fixed lines in most countries of the Middle East. Market studies indicate that up to US$ 3 billion would be invested in mobile network infrastructure in the MENA region in 2003 and 2004. CONNECT is a need of the hour initiative that will give industry players in the Middle East an overall picture of the telecom scenario over the next decade and beyond, and help them devise new strategies to maximise profits."

"Incumbent operators in the Middle East are facing emerging deregulation and market liberalisation," said Khalid Abdullah Al Molhem, Executive President, Saudi Telecom (STC), one of the speakers at the summit. "They can elect to take a defensive position or erode their business base over the long-term, or they can embrace the new environment and use it as an incentive for revising their business and operational models in order to achieve a sustainable competitive posture in the future marketplace."

"The telecommunications landscape in the Middle East is experiencing marked developments towards deregulation and market liberalisation," said Karim Sabbagh, Vice President, Booz Allen Hamilton, another CONNECT speaker. "The emerging environment raises three fundamental questions for the region: How should Middle East markets be deregulated and liberalised? How far should liberalisation evolve in the region? What are the priorities and prospects for incumbent operators? This summit will help operators stay competitive in the long-run."

"As telecommunications development is a necessary component for continued economic growth, there is a growing realisation among the Middle East countries that adopting advanced telecoms technologies is an excellent investment," added Enthammer. "This has an even greater significance as these countries are joining the ranks of the global community through the World Trade Organisation. By doing so, they will be subjected to the requirements of the General Agreement on Trade Services. The exchange of ideas will help the regional operators to shape their policies in keeping with the times."