New research and analysis from the Arab Advisors Group has revealed that Libya has the most expensive cellular connection fees in the Arab world and the highest postpaid minute rates. Lebanon has the highest average prepaid minute rates. The UAE lies on the other extreme with the most affordable average per minute rates in the region. While Yemen shares the lowest prices with the UAE for average postpaid minute rates.

The Arab Advisors Group analyzed the cellular rates in the 18 Arab countries of Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the UAE and Yemen. These countries have 34 operational cellular operators and four licensed ones expected to start operations soon. In order to allow for comparisons, the report focused on the average cellular rates of these countries’ 34 cellular providers.

Commenting on the results, Jawad Abbassi, Arab Advisors founder and president, said: “It is a bit of a paradox that the lowest average rates are in the monopoly market of the UAE. This indicates a savvy marketing approach of the operator there, which consistently provides good value in order to secure its position in its home market. Still, the story across the region is of falling rates and prices. This underlines the need for all operators to concentrate on non-voice services and traffic in order to enhance and maintain their revenue levels while also providing better value for money for the end-users.”

This analysis is part of the report, “Cellular Rates in the Arab World: A Regional Comparison” released by the Arab Advisors Group on March 17. The research revealed that for postpaid simple average minute rates (peak and off-peak), Libya has the highest rates at followed by Morocco, Tunisia, Oman, Lebanon, Saudi Arabia and Iraq, Palestine and Algeria, Jordan and Qatar, Sudan and Syria, Bahrain and Egypt and Kuwait, and finally Yemen and the UAE. The average postpaid minute rate in the Arab world was calculated to be $0.11. The highest was $0.22 while the lowest was $0.06.

As for prepaid simple average minute rates (peak and off-peak), Lebanon has the highest rate, followed by Morocco, Saudi Arabia, Egypt, Qatar and Libya and Algeria, Syria and Jordan, Tunisia, Oman and Kuwait, Palestine, Iraq, Bahrain and Yemen, and Sudan. The lowest average minute rate was in the UAE. The average prepaid minute rate in the Arab world was calculated to be $0.19. The range of average rates went from as low $0.06 to as high as $0.44.

Redington-MS Arabia Deal

Microsoft Arabia & Redington Gulf signed a distribution agreement that will allow Redington to be a full-fledged Microsoft distributor in Saudi Arabia. Redington started distribution of Microsoft products in Oman and Yemen in February this year. The company has already made inroads into the Saudi market having in-country offices in Riyadh, Alkhobar and Jeddah.

“This new partnership aims to focus on the broader locations, remote areas and cities in the Kingdom,” said Dr. Khaled Al-Dhaher, GM, Microsoft Arabia. “With this agreement, Microsoft’s target is to bring the high-tech and latest IT concepts to more channel partners and consumers as well as making them and their customers realize their full potential. This is part of Microsoft’s continuous efforts at developing the community in Saudi Arabia.”

Raj Shankar, director of Redington Gulf, was completely supportive of this goal.

“Saudi Arabia is considered to be a very important key market for us and Microsoft has been a key vendor for Redington for years,” he stated. “This is a major strategic tie-up and we at Redington are confident that we will be able to work closely with Microsoft Arabia to meet their objectives. At the same time this will help us to generate substantial revenue and increase our channel reach.”

Sage Conference in Alkhobar

The entire GCC region including Saudi Arabia has enjoyed modest growth in the past few years. The next decade presents a significant opportunity for Saudi businesses to grow revenues and profits. But there are also threats; competition is set to grow from both within the GCC and abroad. Unless companies have systems in place that can help them grow and stay competitive they are in danger of losing out to new competition. ERP systems can empower managers with information to make better business decisions that will help keep them ahead of the competition.

Sage Software, the third largest global ERP vendor, and Arabian Computer Projects will be demonstrating how easy it is for managers to use information from ERP systems to proactively run their business, improve customer service and cut costs. “Manager’s View of ERP,” a free seminar, will be presented on Wednesday, March 23 at Le Gulf Meridien Hotel in Alkhobar from 9.30-noon, followed by lunch. Register for the seminar by clicking to www.me.sage.com/saudiseminar.