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TMCNet:  Research and Markets: Iran Telecommunications Report Q4 2012

[November 28, 2012]

Research and Markets: Iran Telecommunications Report Q4 2012

DUBLIN --(Business Wire)--

Research and Markets ( has announced the addition of the "Iran Telecommunications Report Q4 2012" report to their offering.

The Iran Telecommunications Report provides industry professionals and strategists, corporate analysts, telecommunication associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Iran's telecommunications industry.

BMI View:

Iran's mobile penetration has exceeded 100%. Although the fixed-line and internet sectors continue to record positive growth, they remain restricted by tight government regulation, censorship and underinvestment in network infrastructure. All three sectors present significant growth opportunities but we expect the mobile sector to continue to outperform because of superior network investments and competition between the operators.

Key data:

- Quarterly mobile growth averaged 3.7% in the 12 months to June 2012.

- We have revised our internet and broadband data for Iran to reflect new data from the ITU, as well as the impact of the launch of the first phase of the National Data Network (NDN),

expected in September 2012.

- Iran's mobile ARPU is unchanged this quarter despite growing market saturation that has the potential to increase downward pressure on mobile tariffs.

- The fixed-line sector grew by 3.4% y-o-y during 2011, according to latest data from the ITU,

bucking the trend of declining fixed-line subscriptions observed in many other markets.

Risk/Reward Ratings:

Iran is in 14th position on our telecoms Risk/Reward Ratings table, ahead of only Libya. Iran has one of the highest populations in the region, which bodes well for the telecoms market. However, it is restricted by a weak ARPU, a low Industry Risks rating, and an equally weak Country Risk score due to the uncertainly of government policies and long-term political stability. The high degree of state control and regulation in all sectors of the telecoms market, weak macroeconomic environment and reduced consumer spending power following cuts to subsidies on utilities and fuel, spiralling inflation and the more stringent sanctions imposed by the international community in late 2011 all drag on the country's score.

Key Trends And Developments:

Iran's internet market is expected to benefit from the government-backed NDN. The first phase of the project is expected to be launched in September 2012, according to Minister of Information and Communications Technology Reza Taqipour. The second phase is expected to be ready for service by March 2013. Although the network will still be censored by the government, its quality and coverage is expected to attract a considerable number of internet users.

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