Press Release/Commentary by AAG posted on August 22, 2004 at 17:28:00: EST (-5 GMT)

Sudan’s telecom market gears up for a competitive era

Arab Advisers Group
August 22, 2004

Sudan’s fixed line and cellular markets are still monopoly markets operated by Sudatel and its cellular subsidiary Mobitel. The cellular sector is expecting a second mobile operator by the end of 2004, while the fixed line sector is slated for liberalization in 2005. Due to competition, the Arab Advisors Group projects Sudan’s fixed lines to grow at an annual rate of 25% between 2003 and 2008 to exceed a penetration rate of 7.7% by 2008, up from 2.8% in 2003. During the same period, the Arab Advisors Group projects a compounded annual growth rate of 50% in the cellular market to exceed a penetration rate of 10% by 2008, up from 1.6% in 2003.

A new report, “Sudan Communications Projections Report” was released to the Arab Advisors Group’s Strategic Research Services subscribers on August 8, 2004. This report can be purchased from Arab Advisors Group for only US$ 850. The 42-pages report, which has 40 detailed exhibits, fully analyses Sudan’s telecommunication market and its regulatory framework. The report also profiles the main operators and vendor landscape in the country including Sudatel and Mobitel. Arab Advisors’ report also provides 5-year historical information and 5-year projections for over 40 telecom (cellular and fixed), economic and revenue indicators in the Sudanese telecom market.

Any investment in this report will count towards an annual Strategic Research Service subscription should the service be acquired within three months from purchasing the report.

“In 2001, Sudan formed the National Telecommunication Corporation as the regulatory body for telecommunication services. NTC was established under Telecom Act 2001. The NTC regulates the establishment, operation and maintenance of telecommunication services in the country. It also promotes the interest of telecommunication service providers and beneficiaries. This represents one of Sudan’s preliminary, yet major, steps towards liberalizing its telecommunications market and attracting Foreign Direct Investment into this important sector.” Sami Sunna’, Arab Advisors Group’s research manager wrote in the report.

In 2003, Sudatel’s fixed line subscribers increased by 39% to reach 936,756 subscribers up from 671,842 subscribers in 2002.

“Despite the healthy growth rates, it is noted that the fixed line and cellular penetration rates are still considered low by regional standards at 2.8% and 1.6%, respectively. The Arab Advisors Group believes that this is mainly due to the current unstable political, economic, and security conditions in the country. The size of the country and its inhospitable terrain are important factors, as well. It is also noteworthy that the relatively low GDP per capita in Sudan is one of the factors contributing to the low fixed line and cellular penetration rates in the country. Sudan has a very low GDP per capita, by regional standards, which is estimated at US$ 566 per capita.” Mr. Sunna’ commented.

The Arab Advisors Group’s team of analysts in the region has already produced more than 270 reports on the Arab World’s communications and media markets. The reports can be purchased individually or received through an annual subscription to Arab Advisors Group’s (www.arabadvisors.com) Strategic Research Services (Media and Telecom). To date, Arab Advisors Group has served more than 170 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients. Some of our clients can be viewed on http://www.arabadvisors.com/clients.htm

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Arab Advisors Group’s Arabic name is ãÌãæÚÉ ÇáãÑÔÏíä ÇáÚÑÈ

Arab Advisors Group provides reliable research, analysis and forecasts of Arab communications, media and technology markets.

Arab Advisors Group Strategic Research Services (Media and Telecoms) are annual subscriptions. The services cover eighteen countries in the Arab World: Lebanon, Syria, Jordan, Palestine, Iraq, Egypt, Sudan, Saudi Arabia, Yemen, UAE, Kuwait, Qatar, Bahrain, Oman, Libya, Tunisia, Algeria and Morocco.

For more information, please contact the Arab Advisors Group offices. www.arabadvisors.com