Increasing Broadband Internet Penetration
In the OIC Member Countries
127
constantly growing since 2011, reaching 98% in the case of 3G and 90% for LTE technology
(see table 63).
Table 63: Saudi Arabia: Evolution of mobile broadband service coverage (2011-2015) (%)
2011 2012 2013 2014 2015 3G 94 95 97 97 98
LTE 40 65 76 85 90
Source: GSMAComparatively speaking, a 97% coverage level for 3G is equivalent to that of OECD countries,
and significantly higher than the average for all OIC Member Countries (64.16%), and even
Arab OIC Member Countries (74.30%)75. These high levels of service coverage can be
explained by the incentive resulting from industry competition, which will reviewed in the
next section.
Broadband market structureThe Saudi fixed broadband market is serviced by several players, but dominated by two
operators: Saudi Telecom Company and Mobily (see table 64).
Table 64: Saudi Arabia: Fixed broadband market structure (2Q2016)
Number of Subscribers Market Share
(by Subscribers) (%) Saudi Telecom Co. 2,190,960 71.60
Mobily (Bayanat al Oula) 679,300 22.20
Etihad Atheeb (GO Telecom) 79,560 2.60
Integrated Telecom Co. 15,300 0.50
Other minor players 94,800 3.09
Total 3,060,000 100
Source: Telegeography; CITC; Telecom Advisory Services analysisOn the other hand, the mobile broadband market is served by Saudi Telecom Company and
two subsidiaries of Middle Eastern regional players (see table 65).
Table 65: Saudi Arabia: Mobile broadband m rket structur (2Q2016)
MNC Number of Subscribers Market Share
(by Subscribers) (%) Saudi Telecom Co STC (Saudi Arabia) 13,310,000 50.00
Mobily Etisalat (UAE) 7,719,800 29.00
Zain Zain Group (Kuwait) 5,856,400 22.00
Total 26,620,000 100
Source: CITC; GSMA Intelligence; Telecom Advisory Services analysisIn the 2012-13 time period a fourth wireless operator, Wataniya Telecom, entered the Saudi
market. However, it never gained traction and in October 2013, it was acquired by STC. Its exit
triggered a moderate increase in consolidation.
75 Source: International Telecommunications Union.