The Market of Telecommunications in the Middle East essay sample

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The Market of Telecommunications in the Middle East

The world is currently experiencing the era of information economy, allowing for a competition of different countries and regions, which is based on the stream of continuous information. In general, the sphere of telecommunication not only guarantees the transmission and exchange of information but also appears as an essential catalyst for economic growth. The Middle East is one of the world's most vibrant and fast-growing mobile markets—and one of the largest.

Determining the Level of Efficiency of the Middle East Mobile Industry

Newly introduced to the public, mobile phones quickly gained worldwide popularity. In the Middle East, mobile industry experiencing fast growth, but additionally the issuance of numerous mobile licenses led to considerable technological developments and hard competition (Naimy 94). Currently, due to the high level of competition among the mobile operators in the Middle East, there is a need to compare them and calculate the one that uses its resources with the greatest effectiveness. The research is conducted using the Partial Factor Productivity along with three models of the data envelopment analysis (DEA) technique, which is based on converting measures the of input and output into one unit (Naimy 95). The considered in research mobile operators are called DMU, which stands for decision making units (Naimy 95). The calculation and comparison of the level of effectiveness of 16 mobile operators in nine different countries in the Middle East Multiple is based on several inputs and outputs.

After conducting a research, the authors of the article offer multiply suggestions for improvements to be implemented in the work of the relatively inefficient mobile operators, which loose some points in comparison with their regional counterparts. The results of research show that among the sixteen considered operators there are seven efficiently working mobile operators such as Avea Turkey, Etsialat UAE, Wataniya Kuwait, Turkcell Turkey, Mobily Saudi Arabia, Orange Israel and du UAE and nine inefficiently working ones such as Cellcom Israel, Orange Jordan, Nawras Oman, Omantel Oman, Jawwal Palestine, Viva Kuwait, STC Saudi Arabia, Vodafone Qatar, Wataniya Palestine. Those mobile operators that turned out to be inefficient need to decrease their levels of input and increase the level of output to gain full efficiency.

As for dealing with the problem of the high licenses prices, mobile operators can either build an infrastructure of two or more operators or merge into the classic consolidation. Though there are a number of challenges for the mobile operators, operating at the highest level of efficiency is essential. Thus mobile operators of not only the Middle East but also of the whole world have no choice but to work efficiently so that they are capable of getting the highest possible income.

Middle East telecoms market research

The Middle East mobile market is characterized by high penetration rate. The industry is developing quickly due to the fact that there is intense competition between the operators, multi-SIM ownership and the wish of the customers to benefit from the special offers and moneysaving deals. For instance, the penetration …

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