Increasing Broadband Internet Penetration
In the OIC Member Countries
37
Figure 9: Total telecommunications industry revenues (in trillion US$) (2010-2014)
Source: International Telecommunications Union; Telecom Advisory Services analysisRevenue stagnation is affecting operator’s margins. To compensate, operators are capitalizing
on the mobile Internet momentum and betting on convergence with video distribution. In
addition, consolidation within countries and across borders represents a lever to generate a
return to economies of scale.
Furthering consolidation of global broadband playersThe global broadband market is served by global, regional, and local operators. Some countries
are served by local operators and subsidiaries of global players. Other countries are served
only by global service providers. For example, Cote d’Ivoire (a country studied in detail in
Chapter V) is almost exclusively served by global players: Orange and MTN (in fixed and
mobile segments), Moov (a subsidiary of Etisalat) in mobile, Yoomee in fixed segment and two
minor local fixed broadband players.
The geographic focus of global players is driven by the need to leverage economies of scale and
knowledge of specific market conditions. The broadband industry exhibits strong economies of
scale, indicating that there is a strong economic benefit to be obtained by operators with larger
customer bases (see figure 10).
0.9
1.00
1.10
1.25
1.50
1.67
1.81
2.09
2.01
1.88 1.90
1.99 1.97 1.95 1.96
0.0
0.5
1.0
1.5
2.0
2.5
2000 2002 2004 2006 2008 2010 2012 2014