Dark Fiber

The leading research firm, Pyramid Research has recently come up with the report of its research relating to UAE’s telecommunication sector for the upcoming years.

The report, titled, “UAE: Fiber Deployments Will Boost Uptake of Pay-TV and VoIP offers a precise profile of the country's telecommunications, media, and technology sectors” examines the various aspects of the country’s nationwide fiber deployment initiative and its possible outcomes and effects in the industry.

Its findings are based on detailed competitive data of both the fixed and mobile sectors. The research firm tracked the market shares of technologies and services, and monitored the introduction and spread of new technologies to make the predictions.

In its report, Pyramid Research predicted that Fixed broadband services will be a significant source of growth in the UAE over the next five years. According to the research firm, the sector is going to generate $1.01 billion in 2015, up from $695 million in 2010. The study attributes this tremendous growth to two factors. The first relates to increasing broadband penetration and the second relates to the switch to a nationwide all-fiber network by 2011.

However, the research firm has labeled the projected growth as “healthy” but not “dramatic.” At the same time, the research firm has pointed out that so far as service penetration is concerned, the UAE telecom market has caught up with those of the developed world. The country can expect a healthy growth of its telecom market between 2010 and 2015.

According to the research firm, over the next five years, country’s telecom sector is to experience a massive transformation, thanks to its switch from copper to fiber fixed-line infrastructure. The fiber deployment project is currently underway and due to be completed by 2011.

UAE’s telecom sector is mainly dominated by two rival companies---Du and Etisalat (News - Alert).

Although Du, the smaller and newer of the UAE's two operators, initially took the lead with fiber deployment, Etisalat soon surpassed its rival in fiber rollout and its fixed to fiber upgradation program is scheduled to be completed by 2011.

“Du, the smaller and newer of the UAE's two operators, initially took the lead with fiber deployment. However, Etisalat has already caught up and surpassed its new rival in terms of fiber rollout: Abu Dhabi, was the first capital in the world to be all fiber, as Etisalat connected the city to the 'elife' FTTH network,” Hussam Barhoush, senior analyst at Pyramid Research observed.

The fiber deployment is also predicted to change the television entertainment scenario, as the use of advanced VAS will make IPTV (News - Alert) experience more attractive for the viewers than those of satellite operators.

“As well as providing a boost to broadband revenue, the change will lead to growth in pay-TV adoption, as operators use advanced VAS to make IPTV services significantly more attractive than those of satellite operators. As broadband penetration rate increases, it becomes critical that operators provide VAS in order to raise their current monthly ARPS. The next major opportunity for vendors will be LTE (News - Alert), which we expect both Etisalat and Du to deploy within the next three years,” Barhoush observed.