Pyramid Research: UAE to go all fiber by 2011

AUGUST 18, 2010 -- Pyramid Research says that increasing broadband penetration and to the switch to a nationwide all-fiber network by 2011 will make fixed broadband services a significant source of growth in the United Arab Emirates (UAE). These services will generate $1.01 billion in 2015, up from $695 million in 2010, says the market research firm’s new report, UAE: Fiber Deployments Will Boost Uptake of Pay-TV and VoIP.

Aug 18th, 2010

AUGUST 18, 2010 -- Pyramid Research says that increasing broadband penetration and to the switch to a nationwide all-fiber network by 2011 will make fixed broadband services a significant source of growth in the United Arab Emirates (UAE). These services will generate $1.01 billion in 2015, up from $695 million in 2010, says the market research firm’s new report, UAE: Fiber Deployments Will Boost Uptake of Pay-TV and VoIP.

The report states that, since the UAE telecom market has caught up with those of the developed world in terms of service penetration, it can look forward to healthy but not dramatic growth between 2010 and 2015. The switch from copper to a fiber fixed-line infrastructure, a process due to be completed by 2011, will be a significant factor, according to Pyramid Research.

For example Du, the smaller and newer of the UAE's two operators, initially took the lead with fiber deployment, notes Hussam Barhoush, senior analyst at Pyramid Research.

"However, Etisalat has already caught up and surpassed its new rival in terms of fiber rollout. Abu Dhabi, was the first capital in the world to be all fiber, as Etisalat connected the city to the 'elife' FTTH network," says Barhoush. Etisalat plans to have upgraded its whole fixed network to fiber by 2011.

"As well as providing a boost to broadband revenue, the change will lead to growth in pay-TV adoption, as operators use advanced VAS to make IPTV services significantly more attractive than those of satellite operators," says Barhoush.

As broadband penetration rates increase, it becomes critical that operators provide VAS in order to raise their current monthly ARPS, in Barhoush’s view. The next major opportunity for vendors will be LTE, which Pyramid expects both Etisalat and Du to deploy within the next three years.

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