Booz Allen Hamilton: Middle East mobile markets are opening up to competition for the first time (page 4 of 4)

MVNOs may emerge in different shapes and forms, ranging from basic resellers to full MVNOs, falling short of owning network infrastructure. Such service providers will sell excess capacity installed in existing networks as a result of aggressive expansions during the early days of competition.

Wireless broadband will be on the increase through third generation mobile services and countless other wireless broadband technologies.
Although lines between fixed and mobile communications will become blurred, full mobility will remain a handheld personal communications service while fixed line services will focus on serving households and companies.

Telecom operators in the region are expected to continue reviewing their operating models and organizational structures, further expanding their operations into the value chain and accommodating changes in consumer behavior and market dynamics. We may increasingly see telecom and media convergence activities which could result in cross industry acquisitions or cooperation agreements.

Incumbent operators will be challenged by the nature of competition, which may come in the form of mobile or fixed separately or integrated services where they are combined. The nature of competition in each market will influence the way organizations are structured and customers are served. However, a common model is emerging to enhance the capability of operators to address specific needs. Structures will vary though, depending on how market segments are defined by operators. They could include home, enterprise, personal and other carriers, or a combination.

Booz Allen Hamilton has a recommendation to allow for an orderly entrance of new competition: regulation. But the regulation must not punish companies already established in the region. In order to ensure healthy growth and benefit to all stakeholders, regulators should focus on the task of creating value in the market and not transferring it from the incumbent operator to new entrants. Good regulation would result in benefits to the consumer, operators, vendors and Governments who will be, as a result, creating job opportunities, encouraging foreign and local investment and democratizing access to communications services.