FVC predicts 3G migration to accelerate by 2006 in Middle East

Speaking on the eve of the 9th Annual Arab International Telecom summit for Arab states, Mr. K. S. Parag, Regional Director, FVC, said:

"The Middle East region is one of the most advanced market for mobile penetration and its broadband growth rate is at par with the average growth rate of most developed regions. With a successful 3G rollout in Bahrain followed by swift uptake of 3G services in the UAE, Saudi Arabia, Oman and Qatar, we believe that the Middle East region's 3G market is poised for acceleration by end of 2006."

Furthermore, the company has invited Dr. Marwan Jabri, Founder and CTO of Dilithium Networks, worldwide leader of 3G multimedia solutions for the global mobile and broadband industries, to speak on 'Multimedia Technologies for Convergent Networks' at the Arab Telecom summit. At the telecom summit, which takes place in Dubai's Emirates Tower on the 11th and the 12th of April 2006, FVC and Dilithium Networks will offer visitors a live video streaming experience on 3G phones using 3G gateways.

"The mobiles market has been the growth driver of the Middle East telecommunications industry for much of this decade. However, with limited potential for future growth in services, carriers will have to look to added value to grow their mobile revenues. With 3G services by far showing the highest average revenue per user (APRU) in the mobile market, telecom operators will have to intensify their 3G capabilities to persuade subscribers to adopt high-returning services such as mobile data and 3G multimedia," Mr. Parag added.

According to the Yankee Group in Western Europe, 3G penetration is projected to be 20 per cent of the of the total mobile market by 2006 with projections for 60 per cent by 2009, and the 3G handset market will account for over 80 per cent of the total handset sales in 2009 from the projected 42 per cent for 2006. In 2005, 3G handsets accounted for 20 per cent of the total handset sales and eight per cent of the total mobile customer base.

Dr. Marwan Jabri, Founder and CTO of Dilithium Networks said: "Dilithium Networks' 3G video-telephony solutions have become the industry standard for delivery of quality 3G video services. Mobile video communication presents new challenges to service providers and equipment vendors because they have to deal with problems unforeseen in mobile, fixed voice and data communication services. By partnering with Dilithium Networks, telecom service operators will be able to bridge the gap between the 3G mobile networks and broadband networks allowing them to grow the market for fully integrated IP voice and video solutions in the Middle East region."