AMMAN -- The number of mobile subscribers in Jordan would reach 4.5 million at the end of 2008, according to a report by the mobile communications industry BIS Shrapnel.
Wisam Francis, author of the 2005 report, referred to statistical information to indicate that by September 2005 a significant 41 per cent of Jordanians had subscribed to a mobile phone service. "This is a massive increase from the eight per cent and 28 per cent penetration rate at the end of 2000 and 2004 respectively," he remarked.
Local analysts described the outlook for the mobile market in Jordan as extremely positive despite several constraints to growth, including socio-economic factors such as employment and income levels.
They said the continuing development of a mobile calling culture, falling handset prices, innovative marketing strategies, new value-added products, the advent of new technology, and increased competition, will support future growth of the mobile phone market in Jordan.
The BIS Shrapnel research stated that the number of handsets shipped to Jordan by the end of 2005 reached 1.5 million units, including those for reexport.
The research expects the mobile handset market to continue exhibiting phenomenal growth until 2008, and anticipates the value of handsets shipped into Jordan to reach $479 million -- in wholesale prices, including reexport.
According to the BIS Shrapnel 2005 report, the cellular revenue growth rate in Jordan during the period 2000 to 2004 is on par with Saudi Arabia, and four-times that of United Arab Emirates and Israel.
Francis said Jordan's geographic location, and the abolition of import tax on mobile handsets in mid-2003, when the import tax was replaced with a four per cent tax on call tariffs, has made it a transit route for mobile handsets destined for countries such as Syria, Palestine and Iraq.
"These factors had a significant impact on the number of mobile handsets imported into Jordan," he remarked.
Analysts attributed the significant impact on the size of the Jordanian mobile handset market and shipments to the tax exemption and the launch of the fourth mobile network operator's service, Umniah.
As a result, the number of handsets shipped to Jordan increased by a staggering 43 per cent in 2004. The rise is also due to the growth in the reexport market which jumped from an average 21 per cent of the total shipment in 2003, to an average 34 per cent of the total shipment in 2004.
"The government has put great effort into expanding, modernising, and improving the efficiency of its telecommunications infrastructure over the past decade," Francis wrote in the report.
He said Jordan's telecommunication sector has been transformed from a monopolised and weak structure, which barely managed to service the market, to one that is fully liberalised, highly competitive and efficient.
Benefits seen by consumers so far include greater choice of providers and service options, enhanced customer service, and an overall reduction in tariffs, experts said.
They remarked that due to government budget constraints, much of this transformation has been carried out through the privatisation of the telecom sector.
The report indicated that the major vendors in Jordan's mobile handset market are Nokia, Sony Ericsson, Samsung, Motorola and Siemens.
Sony Ericsson and Samsung have been alternating behind Nokia for second position in Jordan mobile handset market over the past three years.
In 2003, Samsung had a three per cent more market share than its rival Sony Ericsson did. However, experts believe that this hierarchy, which changed in 2004, could reverse especially after the reshuffle of Samsung's distribution channels in Jordan.
"Approximately 50 per cent of Jordan's mobile handset retail outlets stock exclusively Nokia handsets only," the report indicated. "Forty per cent of outlets are stocking Samsung, Sony Ericsson, Motorola and Siemens, as well as Nokia. The remaining mobile handset retail outlets stock other brands, such as LG, Alcatel, Panasonic and Pantech."
Fast facts
1.5 million handsets were shipped to Jordan in 2005
More than 41 per cent of Jordanians currently subscribe to a mobile phone service
The value of handsets shipped into Jordan are anticipated to reach $479 million in 2008
The cellular revenue growth rate in Jordan during the period 2000 to 2004 is on par with Saudi Arabia, and four-times that of United Arab Emirates and Israel
50 per cent of Jordan's mobile handset retail outlets stock Nokia handsets exclusively
40 per cent of outlets stock Samsung, Sony Ericsson, Motorola and Siemens, as well as Nokia
10 per cent stock other brands, such as LG, Alcatel, Panasonic and Pantech
By Khaled Nuaimat
© Jordan Times 2006
