Increasing Broadband Internet Penetration
In the OIC Member Countries
78
However, based on this structure and the correspondent market shares of countries where
complete information is available, the Herfindhal-Hirschman Index
35
(an indicator of industry
concentration) indicates that only four OIC Member Countries have a somewhat healthy
competitive environment while the remainder are either concentrated or operating under
monopolistic market conditions (see figure 19).
Figure 19: OIC Member Countries: Herfindahl-Hirschman index of the fixed broadband
industry (2016)
Sources: GSMA Intelligence; Regulatory Agencies; Telecom Advisory Services analysis
As figure 19 indicates, Cote d’Ivoire, Nigeria, Turkey, and Kazakhstan tend to have fixed
broadband industries comprising a sufficient number of mobile broadband providers with
important market shares. On the other hand, the mobile broadband market structure in the
OIC Member Countries exhibits, in the aggregate, a moderate level of competitive intensity. Of
the countries with available information, twenty have more than three operators, seventeen
countries have three carriers, while twelve have less than three (an indication of low
competitive intensity) (see table 29).
35
The Herfindahl-Hirschman Index is calculated by adding the square power of the market share of all industry participants.
An index of 10,000 indicates a monopolistic market structure while an index lower than 3,500 is considered to depict an
industry with a healthy level of competition. An index higher than 3,500 would indicate moderate competitive intensity.
4,382 4,433
5,231
5,541
8,136
10,000 10,000 10,000 10,000 10,000 10,000 10,000
0
2,000
4,000
6,000
8,000
10,000
12,000
Cote d'Ivoire
Nigeria
Turkey
Kazakhstan
Saudi Arabia
Algeria
Mali
Sudan
Suriname
Yemen
Niger
Mali