UAE's Internet accounts are projected to double by 2009 with Internet users pushing the 3 million users threshold

The country, a regional leader in advanced services adoption, is on track for more growth especially as the market approaches a competitive and liberalized stage.

The Internet and datacomm markets in the UAE are still monopoly markets. The markets are closed to all but Etisalat, which provides its Internet and datacomm services through its Internet business division, the e-Company. Dubai Internet City is just a reseller of Internet and datacomm services to its limited market of tenants. e-Company was formed in late June 2004, by merging the two business divisions of Etisalat: Emirates Internet and Multimedia (EIM) and Comtrust. Prior to that, EIM was Etisalat's working arm in Internet and datacomm services.

A new report, "United Arab Emirates Internet & Datacomm Landscape Report 2005" was released to the Arab Advisors Group's Telecom Strategic Research Service subscribers on April 12, 2005. This report can be purchased from the Arab Advisors Group for only US$ 850. The 61-pages report, which has 50 detailed exhibits, provides a detailed and comprehensive analysis of the UAE's Internet, datacomm, e commerce and online content and services landscape. Please contact the Arab Advisors Group to get a copy of the reports Table of Contents.

Any investment in this report will count towards an annual Strategic Research Service subscription should the service be acquired within three months from purchasing the report.

The investment can also count towards attending Arab Advisors' second annual Media and Telecoms Convergence Conference on June 11 & 12 2005.

"The Internet penetration in UAE is one of the highest in the region. By end of 2004, the Internet account penetration was around 9.6%. The Internet accounts grew at a CAGR of 26% from 1999 to 2004. The number of total Internet accounts reached nearly 414,000 by end of 2004 while the users stood at an estimated 1,034,000 (using an account usage multiplier of 2.5)." Commented Mr. Andrawes Snobar, the author of the report. "The Arab Advisors Group projects the growth to continue from 2004 to 2009, yet at a lower CAGR of 15%. Much of the new growth will be dialup users upgrading to broadband services. We estimate the total Internet accounts to reach more than 800,000 and the users to reach around 3 million (using an account usage multiplier of 2.5) by end of 2009. The ADSL accounts will continue gaining higher shares of the total Internet accounts, as dialup subscribers upgrade to using ADSL or new customers adopt the broadband service. This is highly expected if Etisalat continues it s strategies in offering tempting ADSL offers over limited periods each year, which include lower rates and privileges for new subscribers. Moreover, The Arab Advisors Group expects that any new player in the market offering fixed line services, including broadband, will increase the market uptake of ADSL." Mr. Snobar added.