| February 14, 2024

Weighing the Pros and Cons of Legacy Network Sunsetting in MENA

Operators seek additional spectrum, a generally scarce and costly resource, to improve the coverage and capacity of 4G and 5G networks. This need led to the decommissioning of legacy technologies and the refarming (i.e. repurposing) of existing spectrum. In this article, we examine operators’ plans for sunsetting 2G and 3G networks in the Middle East and North Africa (MENA), focusing on developments in Oman, Saudi Arabia, and the U.A.E. We evaluate the impact of network shutdowns on performance and customer satisfaction for operators that completed the process and highlight key considerations for a successful network transition to mitigate commercial and brand risks.

Key Takeaways:

  • Sunsetting legacy networks contribute to improvements in performance and customer satisfaction. For example, Zain Bahrain, which decommissioned its 3G at the end of 2022, saw its median download speed increase from 58.43 Mbps in Q2 2022 to 88.52 Mbps in Q2 2023, while customer satisfaction ratings climbed steadily throughout 2023.
  • Gulf operators are generally on track to phase out their old networks by the end of 2024. Our data indicate that 3G share of samples in Oman dropped to 4.7% by the close of 2023 in anticipation of the scheduled shutdown of 3G services by Q3 2024. In Saudi Arabia, stc saw its 3G share of samples fall sharply in 2023, suggesting that the phase-out process is nearing completion. Meanwhile, 2G share of samples in the UAE dropped rapidly in 2023 as operators planned to turn off 2G by the end of the year.
  • A carefully managed, phased approach is crucial to minimize service disruption during the transition from 2G/3G to advanced networks. Retiring old technology can reduce operating and maintenance costs, optimize spectrum use, simplify network management, and accelerate service innovation. However, operators need to take into consideration existing deployments, potential revenue loss, traffic on older networks, and market readiness for 4G and 5G.

Network sunsetting – still an emerging trend in MENA

Operators across the globe are prioritizing the retirement of 2G and 3G networks to refarm spectrum for the more efficient 4G and 5G technologies. This shift aims to lower their operating costs and direct investments from maintaining outdated systems to deploying more efficient networks that support faster speeds and greater capacity.

The decision of which network to turn off first and the associated timeline varies depending on market conditions and operator readiness. In Asia, operators in China and Japan opted to decommission 2G networks while in Europe, operators typically retire (or plan to retire) 3G before 2G due to the latter’s widespread use in Internet of Things (IoT) applications in the utility and automotive industries. In the U.S.A., the three main operators, AT&T, T-Mobile, and Verizon completed their 3G sunsetting in 2022. However, that has not happened without hiccups. For example, carmakers including BMW, Ford, Porsche, and Volkswagen faced lawsuits because some of their car models’ connected services were rendered obsolete due to the 3G shutdown

The MENA region had fewer completed and planned legacy sunsets compared to Asia and Europe, with diverse strategies between and within markets. For example, in Bahrain, Batelco shut down its 2G network in November 2021, while competitors, stc and Zain, turned off their 3G networks in 2022. We expect network sunsets to peak by 2025 in the region as 4G becomes more prevalent, and 5G gathers momentum in the region. Some operators in Bahrain and Jordan, have either completed or made significant progress in their sunsetting efforts. Operators in Oman, Saudi Arabia, Tunisia, and the U.A.E. either initiated the process of sunsetting 2G or 3G or will do so within 1 to 2 years.

Chart Timeline of Planned and Completed 2G and 3G Switch-offs, Middle East and North Africa

Network sunsetting can increase efficiency, reduce costs, and improve customer satisfaction

The phasing out of older technologies enables operators to greatly simplify network management since maintaining multiple radio technologies requires significant resources and personnel expertise. By streamlining their infrastructure, operators can reduce operational costs, direct resources towards optimizing 4G and 5G networks, and deploy innovative services based on newer technologies.

4G and 5G are also many times more spectral efficient than their predecessors. That means that modern networks can transmit much more data over the same spectrum than previous standards, and support more users per cell site. According to Coleago Consulting, while 2G and 3G can deliver 0.16 and 0.8 bits/Hz, respectively, 4G with a 2×2 MIMO antenna can deliver 1.9 bits/Hz, and the figure jumps to 4.8 bits per hertz for 5G with advanced 16×16 MIMO. This efficiency gain is important as the demand for high-speed and low-latency services grows in the MENA region. GSMA Intelligence expects mobile data traffic per smartphone will quadruple in Sub-Saharan Africa by 2028 to 19 GB per month, while the Middle East and North Africa will experience more than a threefold increase to 37 GB per month.

Refarming spectrum for 4G or 5G not only boosts capacity and expands service coverage but also saves operators from the expensive process of bidding for new spectrum. By freeing up the 900 MHz, 1800 MHz, and 2100 MHz bands, commonly used for 2G and 3G, operators can take advantage of their superior propagation characteristics to extend 4G/5G reach with fewer sites.

Furthermore, modern network equipment is more energy-efficient than older systems. This can help operators reduce their energy costs, lower OPEX, and progress towards sustainability goals. Case in point, Vodafone (UK) reported that sending 1 TB of data across 5G will use just 7% of the energy required for the same transfer over 3G. O2 Telefónica (UK) claimed a 90% reduction in power consumption per transmitted byte following the retirement of its 3G network in 2021.

The deployment of modern technologies also translates to greater throughput and potentially reduced costs for end-users. Ookla’s Speedtest Intelligence® data shows that operators that deactivated 2G or 3G networks improved their median download and upload speeds. For example, Zain Bahrain began 3G sunsetting in February 2022, refarmed the 2100 MHz spectrum, and gained access to 20 MHz bandwidth of contiguous spectrum. This move improved 4G capacity and spectral efficiency compared to using carrier aggregation. Switching off the 3G network at the end of 2022 (the first in the Middle East) combined with more 4G sites deployed resulted in increasing the operator’s median download speed from 58.43 Mbps in Q2 2022 to 88.52 Mbps in Q2 2023 while customer satisfaction ratings climbed steadily throughout 2023.

Chart of Median Download and Upload Speed for Zain, Bahrain

Operators should carefully plan the network sunsetting process to minimize service disruption

Careful planning is essential to minimize service disruption and negative impacts on finances and brand. Since this process should involve many stakeholders, including enterprise customers, and consumers, operators should expect 2 to 4 years to complete the switch-off.

Pulling the plug on 2G or 3G means disconnecting many consumers who use voice and SMS, potentially leading to massive churn and exacerbating the digital divide. The question becomes then whether these users can afford to acquire a feature phone or a smartphone and upgrade to 4G and 5G plans. The impact on inbound roamers, who might face connectivity issues or be unable to access emergency services, and the potential loss of roaming revenue are additional considerations. 

Insights into the usage patterns of 2G and 3G services and the volume of inbound roamers lacking LTE roaming agreements with local operators are vital to assess the financial impact. Operators should gradually turn off their legacy networks based on traffic, prioritizing areas with minimum 2G/3G activity and excellent 4G/5G coverage. Regions with high 2G/3G presence should be last to transition.

We used Ookla’s Cell Analytics™ to identify geographical regions with a concentration of 2G and 3G users in three countries, Oman, Saudi Arabia, and the U.A.E., that plan to sunset either or both technologies. The red dots on the map pinpoint customers connected to 2G and 3G because they have SIM cards not provisioned for LTE (including roamers), lack 4G coverage, or use devices incompatible with 4G. The maps below provide a high-level view of the coverage and activity level of the legacy network in each city. We used background measurements captured in December 2023.

The analysis reveals that operators in Oman and the U.A.E. are ahead in migrating customers from 2G/3G and ensuring comprehensive 4G/5G coverage, even in rural areas and along highways. In contrast, Saudi Arabia still relies significantly on 2G and 3G networks for connectivity within city centers, suburban areas, rural regions, and along transport corridors. Given the vast geography of this market, the full transition to modern networks is likely to take longer than in Oman and the U.A.E.

Operators in MENA are at different stages of decommissioning their 2G and 3G networks

We used network “Availability” data from Speedtest Intelligence to get the percentage of users with a service-active device who spend the majority of their time connected to 2G and 3G (including while roaming) between January and December 2023 in Oman, Saudi Arabia, and the U.A.E.. This data serves as a proxy for the proportion of samples that accessed 2G or 3G networks out of all network measurements. 

In Oman, 3G usage has been steadily decreasing. The percentage of 3G samples dropped from 7.9% in January 2023 to 4.7% in December of the same year. If this trend continues, operators should be well-positioned to turn off 3G around Q3 2024 as planned with little disruption to customer experience. Indeed, in 2023, Ooredoo initiated the process of ‘future-proofing’ IoT devices, such as home security systems and fitness trackers, that use 3G networks. The telecoms regulator TRA also plans a trial to gauge the challenges of a 3G shutdown, alongside mandating VoLTE enablement on all smartphones to facilitate a smooth transition.

Chart of Share of2G and 3G Samples of Total in Oman

In Saudi Arabia, despite initial plans to sunset 2G networks in 2022, a substantial segment of the market continues to use 2G SIMs according to our data, fluctuating around 1% throughout 2023. Mobily had the lowest proportion of 2G samples at 0.4% in December 2023, and Zain had the highest at 1.7%. 

In 2020, stc planned to switch off its 3G network in 2022, later postponed to 2023. Speedtest Intelligence data revealed that 3G share of 4.3% at stc in January 2023 before falling sharply throughout the rest of 2023. This suggests that stc nearly completed or has already completed its 3G shutdown. Mobily and Zain have yet to announce their 3G decommissioning plans, with the technology representing 3.9% and 3.6% of total samples, respectively, at the end of 2023.

Chart of Share of2G and 3G Samples of Total in Saudi Arabia

The U.A.E. telecoms regulator, TRA, initially set a deadline for the 2G shutdown by the end of 2022, which was later deferred to the end of 2023 to allow operators to coordinate with businesses that rely on 2G for equipment connectivity, such as vehicle-tracking devices and POS devices. Operators have been offering to upgrade or replace those devices to support LTE CAT-M1 (LTE-M), a category of 4G that is adapted for IoT. While Speedtest Intelligence data does not capture IoT connections, it shows that 2G share of samples has dwindled rapidly in 2023, representing around 0.2% of samples in December 2023.

Chart of Share of2G and 3G Samples of Total in the U.A.E.

Operators need to consider various aspects before phasing out legacy networks

The decision to sunset one network before another should be informed by market conditions including the number of customers that use legacy networks, the cost of maintaining their operations, and the reliance of enterprise services on these networks. In markets with high smartphone penetration, such as those in the Gulf region, the phasing of 2G and 3G effectively began years ago. In those markets, operators have stopped activating new 2G/3G SIMs. In less mature markets, operators need to check that there is a sufficiently large base of 4G or 5G-enabled handsets in the market before the transition.

Communication is critical regardless of how the market and customers are ready. Operators should engage with subscribers well ahead of planned shutdowns to facilitate a smooth migration and prevent connectivity disruptions. Some customers might not realize that their handsets are still connected to 2G/3G even with modern handsets. Most operators we analyzed started communicating about the shutdown of their legacy networks and addressing common concerns about the upcoming changes.

Operators can also facilitate and accelerate this process by making available a range of affordable feature phones and smartphones, for example, by partnering with handset manufacturers. They could also offer financing schemes to support their acquisition, particularly, for those who cannot afford outright purchases. Regulators can also restrict or prohibit the sale and distribution of basic and feature phones before the decommissioning of 2G and 3G networks. 

Finally, voice services, a critical revenue stream for MENA operators, can be particularly affected by sunsetting. That is why operators need to carefully consider their options. They could switch off 3G and keep 2G as a fallback network for voice despite potential quality degradation. A better alternative would be to migrate customers to use 4G for voice with VoLTE. However, VoLTE adoption is generally slow, so operators need to raise awareness and encourage subscribers to enable the technology on their handsets.

The situation is more challenging considering international roaming. Visitors from countries where VoLTE is disabled may struggle to access voice services, even on VoLTE-compatible phones. Solutions exist to convert traditional circuit-switched voice calls to VoLTE to establish a connection between the home and host networks. However, they require testing to ensure network interoperability and device compatibility, as well as a review of roaming terms such as pricing. Alternatively, operators can sign national roaming agreements with their competitors that maintain an active legacy infrastructure to support 2G subscribers, like in Jordan.

Operators should work with other industry stakeholders on the network sunsetting process to avoid delays

Sunsetting legacy networks can bring many benefits to the operators, such as lowering operating and maintenance costs, optimizing spectrum usage, streamlining network management, and accelerating service innovation.

Another advantage of sunsetting older networks is the opportunity to repurpose low-frequency bands, which cuts down deployment costs and also enhances network coverage and capacity. This, in turn, can lead to more affordable services for end-users, contributing to the narrowing of coverage and data usage disparities.

However, the process of sunsetting legacy networks is complex and lengthy. That is why operators should plan the transition well ahead to prevent unnecessary delays and execute it properly to minimize the risk of losing customers and revenue and damaging brand reputation. This planning process should include discussions with various stakeholders, including other mobile network operators, consumers, enterprise customers, wholesaler partners, and regulators.

To find out how Ookla’s crowdsourced data and analytical tools can help you as you evaluate, implement, and track network sunsetting, contact us.

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| February 12, 2024

Consumers Enjoy Better 5G Coverage in U.A.E. Malls Than Those in Qatar and Saudi Arabia

As 5G adoption increases, consumers and businesses expect the same level of coverage and performance wherever they go. Yet, the characteristics of 5G, which typically operates in mid-band frequencies of 1.8 GHz to 3.5 GHz, pose a challenge for indoor coverage, as these frequencies struggle to penetrate walls and windows depending on the materials used in construction. Therefore, operators need to invest in additional solutions to enhance indoor coverage and potentially offload onto in-building Wi-Fi systems. 

In the Gulf region, where shopping malls are central to the economic and social lifestyle, bridging the indoor-outdoor coverage gap is ever more important. In this article, we use data from Cell Analytics™ to benchmark indoor 5G coverage provided by seven mobile operators across 28 malls in Qatar (Doha), Saudi Arabia (Jeddah and Riyadh), and the U.A.E. (Abu Dhabi and Dubai) based on crowdsourced measurements collected between December 2022 and November 2023.

Key takeaways

  • Good indoor coverage is vital for 5G more than for previous generations. Indoor 5G coverage is more crucial than ever since people spend 90% of their time indoors, and an increasing number of consumers and businesses depend on its availability and expect near gigabit speeds wherever they are.
  • Top U.A.E. malls have superior indoor 5G coverage compared to top malls in Qatar and Saudi Arabia. du leads the way in the U.A.E. (particularly in Abu Dhabi), while in Saudi Arabia, Mobily has the edge in terms of the number of malls where it has better indoor 5G coverage. In Qatar, Ooredoo comes first for indoor coverage and its lead over Vodafone is more evident than in the other two countries.
  • Efficient deployment of indoor network coverage solutions requires addressing non-technical challenges. Beyond cost and technical factors, operators must anticipate other issues when aiming to improve indoor coverage, such as site acquisition and permission and compliance, all of which can be facilitated through regulatory measures.

5G underscores the importance of indoor coverage more than previous generations of mobile technologies

Before 4G, mobile networks were designed primarily for outdoor voice coverage. That is why outdoor deployment took precedence over indoor coverage in previous generations of mobile networks since coverage maps were important marketing collateral to grow market shares. With 5G, consumers and businesses expect high-speed and consistent mobile connectivity everywhere. As they rely heavily on continuous 5G availability, operators are pressured to deliver a similar quality of experience indoors and outdoors. Delivering consistent high-speed data connectivity across both indoor and outdoor networks is far more challenging since the performance of a 5G network is limited by interference. 

5G is also the main data growth driver of usage for the operators and most of the usage is likely to be generated indoors. According to Ericsson, we spend 90% of our time indoors, and up to 80% of our data is consumed indoors. Therefore, operators should strive to improve coverage and capacity indoors if they want to capitalize on data growth, reduce churn, and support new consumer and business use cases.

Indeed, 5G enables a wide range of applications because it supports high bandwidth, low latency, and high device density. As 5G adoption increases, there will be more use cases where an excellent indoor 5G experience will be essential to end users and commercially beneficial to the operators. 

Technical and commercial reasons also explain why indoor 5G performance is typically inferior to outdoors. The mid-band frequencies (1.8 GHz to 3.5 GHz) used in 5G deployment do not effectively penetrate walls and windows. The increasing use of insulating materials and metal structures further hamper the propagation of radio waves. Furthermore, indoor network systems need to be designed to fit within the site-specific requirements for antenna placement, connectivity, and power distribution systems, minimize interference with careful coordination between adjacent sites, and connect more customers per square meter than outdoors which impacts network performance.

Commercially, operators have prioritized outdoor coverage because it requires less CAPEX and OPEX per subscriber compared to indoor coverage and has a better return on investment. Additionally, operators need to adapt their indoor network solution to suit different venues and building configurations, find other service providers to share deployment costs with, and convince venue owners to offset some of them.

Technical solutions exist to address the 5G coverage gap

Spectrum is arguably the most influential factor for 5G coverage and speed. High frequencies (shorter wavelengths) carry data faster but have a shorter range than lower frequencies, leading to lower coverage levels and inferior indoor quality of service.

Operators can opt for higher towers to cover a large area to compensate for the shorter range or adjust spectrum usage in specific areas to maximize coverage while not too negatively impacting performance.

Alternative technical solutions also exist to address indoor cellular coverage challenges (see table below). Most of these solutions were designed originally for 3G and 4G but were upgraded by increasing their power and the number of antennas to enable greater performance and improve spectral and energy efficiency. However, deploying some of these solutions can be complex and costly. For example, a DAS that supports MIMO costs multiple times a typical outdoor macro site. They may also lead to unnecessary duplication of infrastructure if operators do not share their assets.

Examples of solutions to improve indoor 5G coverage

SolutionDescriptionLimitations
Amplifiers• Strengthen a weak external cellular signal by amplifying it inside the building• Could cause interferences with signals from the macro cells
Small cells (microcells, picocells, and femtocells)• Low-power antennas that provide localized coverage and add capacity in dense locations
• Connected to the macro cell through backhaul
• More suitable for small indoor areas (e.g. a room or floor), not shopping malls
• Not cost-effective to cover a large area
Distributed Antenna System (DAS)• Set of antennas distributed around a venue to amplify the signal and provide consistent coverage and capacity throughout
• DAS is connected to one or more base stations via cable
• Could be expensive and complex to deploy and upgrade due to the multiple radio heads and cable connections required
Private LTE/5G Networks• Localized cellular networks deployed to offer customized indoor coverage and capacity solutions
• Cater to specific indoor environments such as factories, warehouses, and corporate offices
• Acquiring dedicated spectrum is challenging and costly
• Deployment complexity and cost can make it prohibitive for smaller organizations
• Navigating regulatory frameworks can be challenging

Indoor 5G coverage is more vital in Gulf countries because shopping malls play an essential economic and social role

The Gulf region has been a global 5G pioneer. Most countries have attained nationwide 5G coverage by 2023. 5G penetration among mobile users has also skyrocketed since the beginning of 2022. It reached 28.11%, 22.48%, and 26.86% in Qatar, Saudi Arabia, and the U.A.E. in Q3 2023, according to GSMA Intelligence.

Indoor network coverage is arguably more critical in the Gulf region. The high temperatures and long summers mean that people spend most of their time indoors, especially in shopping centers. These malls are the heart of the economic, social, and cultural life in the region for residents and tourists alike.

Aided by retail-friendly policies, such as low taxes and late opening times, malls experienced a boom in footfall and retail transactions. Despite the rapid rise in online shopping, especially after COVID-19 lockdowns, brick-and-mortar remains a pillar of national economies and accounts for the largest share of all retail transactions. The retail segment has also room to grow further as the retail gross leasable area (GLA) per capita across major GCC cities remains below that of developed markets like the U.S.A., despite being higher than other markets in the Middle East and North Africa.

Chart of Retail GLA Per Capita, Select Countries and Cities

5G connectivity inside the malls is not just crucial for consumers but also businesses. Stores can use the network to connect video cameras, point-of-sale (PoS) devices, and signage systems. Good indoor connectivity also enables shops to offer a hybrid retail experience, combining physical and digital sales channels. For example, customers can order items online for in-store pick-up. Indeed, nearly 60% of surveyed shoppers in the U.A.E. use their smartphones in-store to research products, compare prices, or look for offers. Excellent indoor 5G coverage also underpins future in-mall experiences that mix physical and digital interactions through technologies like AR/VR.

Operators and venue owners can also benefit from offering seamless connectivity in the malls. For example, operators can improve their brand image and prestige by associating themselves with iconic venues such as Dubai Mall in Dubai, Mall of Qatar in Doha, and Mall of Arabia in Jeddah. For landlords, exceptional indoor coverage and quality can serve as a key differentiator for the mall, potentially resulting in higher rental rates.

Operators can offload onto Wi-Fi as an alternative to extending 5G indoors, provided these systems are designed, optimized, and operated with equivalent quality of experience, using, for example, Ekahau®. While many malls in the region have Wi-Fi infrastructure, we believe that 5G complements rather than competes with Wi-Fi. Direct access to a 5G network offers more convenience for consumers and is intrinsically more secure than 4G or Wi-Fi.

The latest generations of Wi-Fi technology, including Wi-Fi 6 and Wi-Fi 7, are likely to play a more pivotal role in enhancing indoor coverage thanks to their improved performance, higher speeds, and increased capacity. Wi-Fi’s seamless integration with cellular coverage enables the offloading of cellular traffic in congested areas, maintains connectivity in deep indoor locations, and provides a robust and interconnected network experience for users.

Major differences in indoor 5G coverage quality between malls, operators, and countries in the Gulf region

In this analysis, we examine the variations in the strength of indoor 5G coverage across select shopping malls in Qatar, Saudi Arabia, and the U.A.E.. We use data from Cell Analytics based on crowdsourced measurements of consumers’ mobile devices worldwide. The tool captures RF measurement and data usage, both indoors and outdoors, enabling us to benchmark signal metrics and generate user density and competitive coverage difference maps.

We use the average Reference Signal Received Power (RSRP) as a measure of network coverage. RSRP represents the network signal strength received by a mobile phone. An RSRP value that exceeds -90 dBm indicates superior coverage. If the signal strength is between -90 dBm and -100 dBm then network coverage is considered good. Lower RSRP values signify lower download speeds and an increased probability of network disconnection.

In the sections below, we examine 5G RSRP measurements inside major malls in Qatar (Doha), Saudi Arabia (Jeddah and Riyadh), and the U.A.E. (Abu Dhabi and Dubai) from December 2022 to November 2023. For each location, we compare operators’ RSRP values to determine which ones offer superior 5G coverage. We included locations where we received sufficient samples to achieve a confidence level of 95%.

du commands a lead in indoor 5G coverage in more U.A.E. malls than Etisalat by e&

The U.A.E. emerged as the fastest 5G market globally in Q2 2023, according to Ookla® Speedtest Intelligence®. This achievement was facilitated by an almost nationwide 5G coverage of the population. Both operators, du and Etisalat by e&, have sought to continually enhance customer experience by improving network coverage and quality.

du reported 98.5% 5G coverage of the population in November 2023 and attributed much of its CAPEX to 5G deployment and specifically to enhancing indoor coverage. For example, it has installed small cell antennas in apartments and offices and expanded DAS in new mall locations. It also launched 5G Standalone (SA) and Voice over New Radio (VoNR) in 2023.

Etisalat by e& has managed to serve all main urban areas and highways across the country, with an estimated coverage of 97% in February 2023. It also made 5G Standalone (SA) services available for all mobile users in October 2023.

The chart below depicts indoor 5G RSRP values for du and Etisalat by e&, across 12 malls in Dubai and six others in Abu Dhabi. Both operators have the same number of malls in Dubai where they lead in indoor coverage. In Abu Dhabi, du consistently outperformed Etisalat by e& in terms of indoor coverage in all the malls we reviewed.

Map of Indoor 5G RSRP in Key Malls, by Operator Dubai, U.A.E.

Map of Indoor 5G RSRP in Key Malls, by Operator, Abu Dhabi, U.A.E.

Overall, top U.A.E. malls have better indoor 5G coverage than those in Qatar and Saudi Arabia. The weighted average RSRP per mall is at least -86 dBm in 9 out of the 18 locations analyzed, suggesting excellent indoor coverage. However, in some locations, such as Ibn Battuta Mall, Mall of Emirates (for both operators), Wafi Mall and Yas Mall (for Etisalat by e&), and Dubai Mall (for du), the signal power is equal or less than -90 dBm.

du consistently outperforms Etisalat by e& in indoor 5G coverage across all the six malls in Abu Dhabi. For example, du is 10% better than Etisalat by e& in Khalidiya Mall and 8% better in Marina Mall.

The difference in signal power in Dubai locations is generally smaller, implying that consumers are unlikely to perceive a difference in 5G coverage while shopping there. For example, the RSRP gap between operators is inferior to 1.5 dBm in Deira City Mall, Festival City Mall, Ibn Battuta Mall, Mirdif City Centre, and Wafi Mall. This could be because both operators share the same indoor coverage infrastructure in these malls to avoid duplication and to reduce costs.

Mobily and Zain are the frontrunners for indoor 5G coverage in Saudi malls

The Saudi Communications, Space & Technology Commission (CST) reported that 5G coverage reached 97 governorates in March 2023 (out of 136 governorates), up from 84 a year earlier. This is a substantial jump from the 35 governorates it first reported in Q2 2020.

This improvement is partially driven by the ongoing release of suitable spectrum for 5G. Indeed, operators had access to low-band spectrum (700 MHz and 800 MHz) from 4G that they could reuse for 5G, and auctions for 2.3 GHz, 2.6 GHz, and 3.5 GHz bands were completed in 2019. The CST also plans to auction 600 MHz, 700 MHz, and 3800 MHz bands in Q1 2024.

Operators have steadily invested in 5G infrastructure. stc reported that it provides 5G coverage to over 90% of its mobile site locations in major cities. In October 2023, it announced significant network investments to extend its reach to over 75 cities and governorates.

Similarly, Mobily expanded 5G rollout and network coverage as part of its growth strategy. Its 5G network covered 28 governorates in March 2023. For Zain, its 5G network had expanded to cover 64 cities and more than 62.5% of the population by the end of 2023.

The two charts below show indoor 5G RSRP values for Mobily, stc, and Zain across three malls in Riyadh and three others in Jeddah. Despite the large investments in 5G infrastructure and access to low-band spectrum, Cell Analytics reveals a weighted average RSRP of -95.5 dBm across the six surveyed malls, which is significantly lower than the weighted averages in Qatar and the U.A.E. at -85.3 dBm and -87.4 dBm, respectively.

Map of Indoor 5G RSRP in Key Malls, by Operator, Riyadh, Saudi ArabiaMap of Indoor 5G RSRP in Key Malls, by Operator, Jeddah, Saudi Arabia

Saudi Arabia is home to the five malls with the poorest indoor 5G coverage among the 28 malls analyzed in this article. The RSRP weighted averages ranged from -98.8 dBm in Al Salam Mall in Jeddah to -93.8 dBm in Riyadh Gallery Mall in Riyadh (the other lagging malls are Mall of Arabia and Red Sea Mall in Jeddah, and Al Nakheel Mall in Riyadh).

Mobily had better indoor 5G coverage than its competitors in three malls while Zain outperformed them in two of the malls. Mobily is quite ahead of its competitors in Mall of Arabia, one of the biggest malls in Saudi Arabia, with an RSRP of -92.8 dBm, a signal strength that is 6.5 dBm higher than Zain’s and 8.8 dBm stronger than stc’s.

Zain leads Mobily in two malls, Riyadh Gallery Mall and Red Sea Mall, by 2.4 dBm and 1.7 dBm, respectively. On the other hand, stc leads in 5G coverage inside Granada Center with an RSRP of -88.1 dBm, the highest signal power among the analyzed malls in Saudi Arabia. The RSRP difference between the three operators in the other malls varies between 3.3 dBm and 4.6 dBm, which suggests that operator choice can affect signal reception when shopping in these venues.

Ooredoo leads in 5G coverage inside the malls in Qatar

The organization of the FIFA World Cup in 2022 prompted Ooredoo and Qatar to modernize their 4G and 5G networks. For example, Ooredoo deployed over 8466 multi-beam antennas across eight stadiums to enhance indoor coverage, in addition to ‘smart poles’ and macro sites to boost coverage in surrounding areas. Ooredoo reported 533TB of mobile data during the competition, with nearly 40% via its 5G network. By the end of Q3 2023, its 5G network served 98.6% of the population.

Likewise, Vodafone nearly doubled its radio network sites, upgraded the existing sites’ technologies, and increased 5G coverage, especially indoors. It reported that over 1188 TB of data were consumed across all stadiums during the World Cup. These initiatives helped to make Vodafone the world’s fastest mobile network operator in 2022. By June 2023, 85% of Vodafone’s 2250 radio network sites were 5G enabled.

The chart below shows indoor 5G RSRP values for Ooredoo and Vodafone across four malls in Doha. It reveals that Ooredoo delivered superior indoor coverage in all of them, except for Villaggio Mall, where Vodafone outperformed.

Map of Indoor 5G RSRP in Key Malls, by Operator, Doha, Qatar

The difference in RSRP is highest in City Center Doha Mall where Ooredoo was ahead of Vodafone by 9.2 dBm. In the country’s largest shopping center, the Mall of Qatar, the difference in indoor signal strength between the two operators is sizable, standing at 4.4 dBm. However, since both operators offer excellent coverage simultaneously, with an RSRP of -81.4 and -85.8 for Ooredoo and Vodafone, respectively, consumers are unlikely to perceive a difference in coverage.

Operators need to consider non-technical aspects when deploying indoor solutions

Measures should be in place to encourage operators to make indoor network deployments more efficient. For instance, the Chinese government mandated that operators share the mid-band spectrum (3.3-3.4 GHz) for indoor coverage to promote co-development and cost-sharing. In Europe, mobile network operators (MNOs) share indoor networks deployed by neutral hosts, such as Cellnex, with a revenue model based on charging the venue or building owner for the network instead of the operator.

In the United States, the primary ownership model for DAS often involves a combination of ownership by neutral host operators, MNOs, and venue owners depending on agreements, partnerships, and specific needs of the venue or location. Neutral host operators often play a significant role in deploying shared DAS infrastructure, while venue owners, managers, or MNOs may also have ownership stakes or involvement in specific deployments to enhance indoor wireless coverage.

Beyond cost and technical considerations, operators need to carefully address other factors and practical challenges before and during the implementation of an indoor network coverage solution. These include site acquisition and permission, physical space and aesthetics, and regulatory compliance needs.

Regulators can have a proactive role in reducing bureaucratic hurdles and encouraging government-industry collaboration. For example, in South Korea, the regulator promotes the parallel development of indoor and outdoor 5G coverage across the country. Another example is the Telecom Regulatory Authority of India (TRAI) which recently requested industry views on the mechanism to rate digital connectivity in buildings. TRAI’s initiative illustrates the importance of devising standard guidelines, incentivizing investments in in-building infrastructure, and ultimately ensuring seamless and reliable indoor connectivity for consumers and businesses.

Ookla can support operators and venue owners in improving indoor cellular coverage 

As consumers’ expectations for network speed and consistent connectivity rise with the advent of 5G, operators should prioritize addressing indoor coverage issues to improve customer experience, drive data usage, and outperform their competitors.

As more consumers and businesses rely on 5G, an excellent indoor 5G experience will become even more essential. It will also pave the way for innovations that blend in-store with digital experiences. The future of physical malls in the region hinges on their ability to adopt new technologies and use them to transform the consumer experience.

Ookla can assist operators in identifying buildings or indoor venues with coverage or capacity issues using crowdsourced and controlled test data and the execution of precise walk tests for diagnosis. Cell Analytics helps to identify specific indoor areas with low signal-to-interference-and-noise ratio (SINR) and signal quality (RSRQ), causing sluggish data speeds despite adequate coverage (RSRP).

Equipped with this knowledge, mobile network operators can promptly deploy personnel for on-site walk-tests using Wind™, Ookla’s handheld walk-and-drive controlled testing platform. Wind enables testers to simulate user behavior while meticulously capturing detailed RF data in the background and processing it in near-real time. This allows operators to implement corrective actions to boost network performance within any venue.

An alternative to deploying in-building 5G systems is to selectively offload usage to Wi-Fi provided these systems are designed, optimized, and operated to deliver an equivalent quality of experience – this can be done using Ekahau.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

| January 15, 2024

Fixed Internet Speeds are Improving in North Africa, and Fiber Could Boost Them Even Further

Français

Since 2020, fixed broadband speeds in North Africa have improved substantially. However, there is still potential for further enhancement and adoption. This article explores the performance drivers of fixed wired internet performance (excluding fixed wireless access (FWA)) in Algeria, Egypt, Morocco, and Tunisia between Q3 2020 and Q3 2023 and discusses the market prospects.

Key takeaways

  • Egypt leads North Africa in the Ookla Speedtest Global Index™ for fixed broadband in Q3 2023. Egypt widened its lead in North Africa, achieving a median download speed of 56.61 Mbps and an upload speed of 25.07 Mbps. Meanwhile, Algeria saw a significant improvement in median fixed broadband download speed, with a 4.5-fold increase to 11.34 Mbps between Q3 2020 and Q3 2023. Morocco’s upload speed has also significantly improved, rising more than 22-fold to 19.09 Mbps during that period.
  • North African countries adopted different DSL migration strategies. Egypt upgraded most of its ADSL to VDSL and concentrated FTTH/B in greenfield areas. On the other hand, Algeria focused on replacing copper lines with FTTH/B, while Morocco and Tunisia deployed VDSL in tandem with FTTH/B rollout.
  • Fiber upgrades and revised broadband packages help to boost speed. The deployment and adoption of FTTH/B do not necessarily lead to increased broadband speed. ISPs should consider increasing headline speeds of entry-level packages and offering discounts on higher-speed tiers to incentivize customers to upgrade.

Egypt tops North Africa in download and upload speeds for fixed broadband

In our June 2021 report on internet speed in North Africa, Egypt ranked first in North Africa for fixed broadband, followed by Morocco, Algeria, and Tunisia. All countries, except Tunisia, saw more than a 25% improvement in median broadband speeds from Q2 2020 to Q1 2021, with Algeria more than doubling its median broadband download speed.

This upward trend continued through Q3 2023, with most North African countries improving their median download and upload speeds over fixed broadband. This has resulted in a boost in their ranking in the Ookla Speedtest Global Index. Notably, Egypt extended its lead within North Africa, achieving a median download speed of 56.61 Mbps and a median upload speed of 25.07 Mbps.

Algeria showed a substantial improvement in median fixed broadband download speed between Q3 2020 and Q3 2023, increasing 4.5-fold to 11.34 Mbps. Other countries, except Tunisia, saw their median fixed broadband download speeds more than double over the same period.

Median Download Speed for Wired Fixed Broadband, Select African Countries
Speedtest Intelligence, Q3 2020 and Q3 2023

Morocco saw a significant rise in median upload speed, with a more than 22-fold increase to 19.09 Mbps in Q3 2023. Despite this, it still lags behind South Africa, the African leader, which boasts more than double the upload speed at 38.53 Mbps. The other North African countries saw more modest improvements in upload speeds, ranging from a 1.5-fold increase in Algeria to a 2.5-fold increase in Tunisia.

Median Upload Speed for Wired Fixed Broadband, Select African Countries
Speedtest Intelligence, Q3 2020 and Q3 2023

DSL and wireless access are the most common technologies used for fixed broadband services in North Africa

Digital Subscriber Line (DSL) is the leading technology for fixed broadband services in North Africa, as they use existing phone lines for internet connectivity. The two main types of DSL are Asymmetric Digital Subscriber Line (ADSL) with speeds of up to 24 Mbps and Very high-speed Digital Subscriber Line (VDSL) offering speeds of up to  52 Mbps for VDSL1 and 200 Mbps for VDSL2. The latter can be further enhanced with G.Fast technology.

VDSL employs fiber that terminates at a nearby cabinet, a configuration often referred to as Fiber-to-the-Cabinet (FTTC). The ‘last mile’ connection to users’ premises then uses existing copper lines. FTTC typically serves as a transitional step towards Fiber-to-the-Home/Building (FTTH/B), where the fiber extends directly to the user’s location premises.

In countries like Algeria and Tunisia, mobile broadband and FWA services that use 3G and 4G technologies account for almost 30% of all fixed broadband connections. However, these cellular connections are less prevalent in Morocco and Egypt. 4G offers download speeds comparable to ADSL and VDSL1 but falls short of VDSL2 and FTTH/B.

North Africa lags behind the Gulf region in fiber coverage, adoption, and internet speed. Ambitious fiber development plans placed Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the U.A.E. high on the global speed leaderboard. For example, in Q3 2023, the U.A.E. ranked fourth on the Speedtest Global Index™ with a median download speed of 231.98 Mbps. Kuwait ranked twenty-second, and Qatar twenty-third. Other Gulf countries trailed the U.A.E. but were ahead of all markets in North Africa.

Fixed internet speeds are still relatively low in North Africa despite significant improvements in FTTH/B access

The slow pace of fiber deployment compared to the Gulf countries can be attributed to factors such as limited public funding, restrictive telecom regulations, scant private investments, as well as geographical and urbanization challenges. Most North African countries also have a larger land mass, more varied geology, and a lower level of urbanization, making fiber deployment more complex and costly.

The market’s competitive landscape is also a factor, with incumbents controlling over 80% of fixed internet subscriptions. Even in Tunisia, which boasts more alternative ISPs, Tunisie Telecom holds the majority of DSL and fiber subscriptions. By contrast, alternative network providers play a key role in accelerating fiber adoption in Europe. Furthermore, North Africans have a lower income than Gulf residents, and most cannot afford high-speed broadband services because of their high costs.

Market challenges delayed fiber deployment and limited service adoption and innovation. However, local ISPs have made significant progress since 2020 in upgrading the fixed infrastructure and making their services more affordable. Egypt has primarily upgraded its ADSL to VDSL and focused FTTH/B deployments in greenfield areas. Algeria concentrated on replacing copper lines with FTTH/B while Morocco and Tunisia deployed VDSL while also progressing with FTTH/B rollout.

As of June 2023, Algeria has the highest number of FTTH/B connections in North Africa, totaling 800,000. Morocco follows closely with 730,000 connections and boasts the largest fiber share of the wired broadband market (see chart below). Egypt has the highest number of VDSL connections in the region, and an estimated few hundred thousand active FTTH/B customers as of September 2023. Tunisia is in fourth position with 55,000 FTTH/B connections and 176,000 VDSL connections.

In the following sections, we provide an overview of the fixed broadband market in Algeria, Egypt, Morocco, and Tunisia. We highlight the status of fiber rollout, and its impact on network performance, and discuss ISPs’ future deployment plans.

FTTH/B Connections, Algeria, Morocco and Tunisia
Telecoms Regulators, ISPs | 2019-Q2 2023

FTTH/B Connections and Share of Fixed Wired Connections, Algeria, Morocco and Tunisia
Telecoms Regulators, ISPs | 2019-Q2 2023

Significant progress achieved in fiber coverage in Algeria but room to drive adoption and boost speed

As of March 2023, Algeria boasted over 3.4 million fixed wired connections, according to the Autorité de Régulation de la Poste et des Communications Electroniques (ARPCE). The state-owned Algerie Telecom (AT) is the sole provider of wired broadband services. With an additional 1.5 million 4G FWA connections, Algeria is among Africa’s largest fixed broadband markets.

AT prioritized the replacement of copper lines with fiber in major cities while maintaining its ADSL services. It also used 4G FWA technology to service areas where wired infrastructure is unavailable or costly to deploy. AT was late to the game but it rapidly expanded FTTH/B services since their introduction in 2018. It also increased maximum speeds on fiber from 100 Mbps to 300 Mbps for consumers in 2023. AT introduced regular promotions, such as free speed doubling for new customers. It has also reduced tariffs every year since 2020, with a 100 Mbps fiber line costing $22/month in 2023. These actions contributed to the surge in the number of fiber subscribers by nearly 14-fold between 2020 and November 2023, reaching the 1 million milestone, making Algeria one of the largest FTTH/B markets in Africa.

Fixed Broadband Connections by Technology, Algeria
ARPCE | 2019-Q1 2023

The migration from ADSL to FTTH has undoubtedly improved the quality of service for consumers. However, it has yet to boost the speed that most households experience. While the download speed of the fastest 10% samples increased from 8.01 Mbps in Q3 2020 to 45.71 Mbps in Q3 2023, the median download speed only reached 11.34 Mbps during that period, according to Ookla Speedtest Intelligence® data.

According to the ARPCE, more than 85% of connections had a download speed of 10 Mbps in March 2023. To improve the country’s median download speed, AT should increase the speed of its entry-level fiber package from the current 10-15 Mbps. It should also work towards lowering the price of its higher-speed packages. The government proposed to exempt fixed broadband services from VAT in 2024, which should help make it more affordable for customers to upgrade to higher-speed packages.

AT has set ambitious goals to expand its fiber coverage substantially. The number of households passed by fiber (i.e. premises that can connect to the fiber network) is expected to increase from 3.5 million in 2022 to 6 million by 2024 (out of an estimated 7.4 million households). This is part of the government’s broader strategy to provide two-thirds of households with fixed broadband service by 2024, potentially adding 2 million new subscribers to the market.

Rapid network performance improvement in Egypt thanks to the incumbent’s ambitious FTTC strategy

With nearly 11 million subscribers at the end of 2022, Egypt is North Africa’s biggest fixed broadband telecoms market. State-owned Telecom Egypt (TE) dominates the sector, controlling over 80.1% of the market with over 8.7 million fixed broadband subscribers.

Other operators such as Vodafone, Orange, and Etisalat by e&, offer broadband services through wholesale access to TE’s network. This allows them to provide comparable broadband speeds. Notably, the combined market share of these alternative ISPs has been on an upward trend year-on-year since 2019.

TE’s strategic focus has been to develop its core and transmission networks, upgrade ADSL to VDSL, and expand fiber to the street cabinets. As of September 2023, TE connected 95% of households to the next-generation FTTC network (up from 85% in 2019).

The introduction of VDSL services in Egypt in 2018 marked a significant shift in broadband speeds, raising the maximum from 16 Mbps to 100 Mbps. TE took this opportunity to increase the speed of its entry-level plan from 5 Mbps to 30 Mbps, with a modest price increase of 9%. Infrastructure upgrades also positively impacted alternative ISPs that boosted their broadband packages’ speeds.

These improvements in VDSL coverage, speeds, and affordability significantly accelerated the adoption of broadband services. The number of fixed broadband subscribers surged by 55% from the end of 2019 to June 2023. Raising the minimum broadband speed to 30 Mbps led to a substantial increase in the country’s median download speed to 56.61 Mbps in Q3 2023, up from 25.07 Mbps in Q3 2020, according to Ookla Speedtest Intelligence. Given that TE currently offers speeds of up to 150 Mbps, there’s ample opportunity to enhance download speeds further.

Fixed Broadband Connections by ISP, Egypt
Telecom Egypt | 2019-Q2 2023

TE launched FTTH/B services in 2009, making Egypt among the early adopters of fiber in the region. It prioritized FTTH/B deployments in greenfield areas such as new developments, gated communities, and residential compounds. TE aims to eventually migrate existing VDSL customers to FTTH/B.

The government allocated a $360 million budget in 2021 to extend Fiber-To-The-Home (FTTH) to a million households to improve fiber accessibility. The development of ‘New Cairo,’ a new mega-city located 35 km east of the Capital, is also expected to spur demand for fiber services.

The competitive fiber market in Morocco drove broadband adoption and speed improvements

Maroc Telecom (MT) dominates the fixed broadband market in Morocco. The operator’s control over the copper infrastructure has spurred other ISPs, inwi and Orange, to develop their own fiber infrastructure and lease capacity from local utility and transport companies.

The fixed wired broadband market has been expanding rapidly in Morocco, increasing from just over 1.6 million in 2019 to over 2.2 million connections in June 2023 (out of around 8 million households). This growth is mainly due to a shift from DSL to FTTH/B since 2020, as observed in the chart below.

Fixed Broadband Connections by Technology, Morocco
ANRT | 2019-Q2 2023

Consumers have been leaning toward faster and more reliable services, with demand for DSL connections falling since 2020 and FWA adoption decreasing since 2022. MT launched fiber in 2014 as a premium service with speeds of 100 Mbps and 200 Mbps. In 2022, MT accelerated the deployment of its FTTH/B network and increased network capacity by 40% year-on-year in June 2023, helping to expand its fiber customer base by 43%.

inwi and Orange introduced their fiber services in 2018, offering a broader range of speeds starting from 20 Mbps and lower price points than MT at the high end. These services are available in big cities like Casablanca, Rabat, and Fez. They accounted collectively for 52.69% of the fiber market in June 2023 which shows that the segment is quite competitive in Morocco.

This has resulted in a boost to user-end speeds. As of Q3 2023, the median download speed of fixed internet services had increased to 21.68 Mbps, up from 9.07 Mbps in Q3 2020, according to Ookla Speedtest Intelligence data. There has been a marked shift to higher-speed broadband packages, as evidenced by the fact that 17.3% of fixed broadband subscribers had speeds of at least 20 Mbps in June 2023, a dramatic increase from only 0.6% in 2019 who had a minimum speed of 16 Mbps, according to the Agence Nationale de Réglementation des Télécommunications (ANRT)

As only around one-third of wired broadband subscribers in Morocco use FTTH/B, there is still an ample opportunity to migrate more DSL customers to fiber and encourage existing fiber users to upgrade to higher-speed packages. This is especially relevant for inwi and Orange as they offer more affordable fiber packages starting at 20 Mbps, compared to MT’s 100 Mbps fiber package which costs around $50/month.

Looking ahead, the Moroccan government has ambitious plans to connect more households to high-speed broadband services under the “Maroc Digital 2030” program. The government aims to connect 5 million households with fiber by 2026, potentially making Morocco one of the largest FTTH/B markets in Africa.

Limited infrastructure sharing and investments in Tunisia constrained speed improvement

Tunisia has the lowest fixed download speeds in North Africa at 8.61 Mbps in Q3 2023, according to Ookla Speedtest Intelligence. This is despite having eight ISPs – compared to one in Algeria, three in Morocco, and five in Egypt. The poor network performance is due to the limited coverage of high-speed broadband services and their unaffordability for many households. For example, a 50 Mbps VDSL line costs more than $26/month. Furthermore, it was not until 2022 that the ISPs lifted the speed of basic DSL packages from 4 Mbps to 10 Mbps

The wired broadband sector has consistently grown, reaching over 1.2 million subscribers by June 2023. This represents a 50% increase from 2019 levels. Interestingly, this growth rate outpaced that of the 4G fixed wireless access segment, which only saw a 27.4% increase, reaching just over 470,000 connections during the same period. On the other hand, fiber service remains a niche offering due to its limited coverage and high cost. Fiber share of the fixed wired broadband market saw a minor increase, rising from 3.0% in 2019 to a modest 4.5% in June 2023.

Fixed Broadband Connections by Technology, Tunisia
INT | 2019-Q2 2023

Tunisie Telecom (TT), a state-owned entity, holds the majority stake in the fixed broadband sector. TT controls the national copper infrastructure, operates the nationwide fiber-optic backbone, and competes both directly and indirectly in the retail market via its subsidiary, Topnet. Ownership of TT is divided between the Tunisian state (at 65%) and Emirates International Telecommunications (EIT, at 35%).

TT maintains a strong position within this sector, controlling 72.9% of all fiber connections in Tunisia by June 2023. This figure includes direct customers (39.1%) and those provided through Topnet (33.8%). Fiber services, which were launched in 2012, are only available in Greater Tunis and Sfax. Additionally, TT dominates the VDSL market with a substantial 92.4% market share, mostly through Topnet.

Regulatory pressure from the telecom authority INT (Instance Nationale des Telecommunications) has urged TT to reduce its network access charges and expedite line activation to help other ISPs. Despite these efforts, various challenges persist, prompting operators such as Ooredoo and Orange to supplement their wired offerings with mobile broadband services based on 3G and 4G, in addition to TD-LTE-based FWA.

Ooredoo, which introduced fiber services in 2013, saw its share of the fiber market rise to 16.8% by June 2023. Its fiber network covers Greater Tunis and Sfax. Orange, however, lacks consumer fiber offerings. Other ISPs, including Bee, GlobalNet, and HexaByte, use a mix of ADSL, VDSL, and FTTH/B by accessing TT’s infrastructure.

In the short term, TT plans to upgrade most DSL ports to VDSL and promote higher-speed packages. This strategy aims to increase the average fixed speed from 10 Mbps in 2022 to 50 Mbps in 2024. Over the medium term, TT aims to expand its FTTH coverage and capacity from 100,000 connections in 2022 to 500,000 by 2025. These initiatives are expected to enhance fiber service accessibility and improve the country’s median download and upload speeds.

Furthermore, the INT initiated a consultation in August 2023 to set the conditions required to share facilities to avoid infrastructure duplication and ensure efficient fiber investments. The proposal is to have all ISPs and infrastructure operators provide shared access to their telecom facilities after 12 months of commercial operations. This initiative should help expand fiber coverage, reduce access costs, and support the development of 5G.

Fiber can further unlock the connectivity potential in North Africa

As discussed above, North African ISPs have adopted various strategies to roll out fiber and promote its take-up. They have made considerable strides in enhancing fiber accessibility and fixed broadband speed since 2020. However, a significant gap remains when compared to more advanced markets in the Middle East and Africa.

To bridge this gap, it is essential to facilitate fiber investment through public-private partnerships, promote infrastructure sharing, encourage competition, provide robust regulatory frameworks, and increase international bandwidth. Such initiatives will make high-speed broadband services more affordable and accessible, which is integral to advancing national digital transformation and boosting economic growth.

Ookla has been working with ISPs, such as Bahrain Network (BNET) and telecoms regulators, to support their national broadband plans, track improvements to fiber connectivity and coverage, and promote their networks to consumers. If you are interested in Ookla’s solutions and services for network intelligence and management, get in touch.


La Vitesse de l’Internet Fixe s’Améliore en Afrique du Nord, et la Fibre Pourrait l’Augmenter Encore d’Avantage

English

Depuis 2020, les débits du haut débit fixe en Afrique du Nord se sont considérablement améliorés. Cependant, il existe encore un potentiel d’amélioration et d’adoption. Cet article s’intéresse aux facteurs de performance de l’Internet fixe filaire (hors accès fixe sans fil (FWA)) en Algérie, en Égypte, au Maroc et en Tunisie, entre le troisième trimestre 2020 et le troisième trimestre 2023 et discute des perspectives du marché.

À retenir

  • L’Égypte est en tête de l’Afrique du Nord dans le Speedtest Global Index™ pour le haut débit fixe au troisième trimestre 2023. L’Égypte a élargi son avance en Afrique du Nord, atteignant une valeur médiane du débit descendant de 56,61 Mbps et celle du débit ascendant de 25,07 Mbps. Parallèlement, l’Algérie a connu une amélioration significative du débit descendant sur le fixe, avec une multiplication par 4,5 pour atteindre 11,34 Mbps entre le troisième trimestre 2020 et le troisième trimestre 2023. Le débit ascendant au Maroc s’est également considérablement amélioré, multiplié par plus de 22 pour atteindre 19,09 Mbps au cours de cette période.
  • Les pays d’Afrique du Nord ont adopté différentes stratégies de migration DSL. L’Égypte a mis à niveau la plupart de son ADSL vers le VDSL et a concentré le FTTH/B pour le déploiement .dans de nouvelles zones. D’autre part, l’Algérie s’est concentrée sur le remplacement des lignes de cuivre par du FTTH/B, tandis que le Maroc et la Tunisie ont déployé le VDSL parallèlement au déploiement du FTTH/B.
  • Les mises à niveau de la fibre optique et les forfaits haut débit révisés contribuent à augmenter la vitesse. Le déploiement du FTTH/B et son adoption ne conduisent pas nécessairement à une augmentation de la vitesse de haut débit. Les FAI devraient envisager d’augmenter les vitesses de pointe des forfaits d’entrée de gamme et d’offrir des réductions sur les niveaux de vitesse plus élevés pour inciter les clients à améliorer leur forfait.

L’Égypte est en tête de l’Afrique du Nord en termes de débit descendant et ascendant pour le haut débit fixe

Dans notre rapport de juin 2021 sur le débit Internet en Afrique du Nord, l’Égypte se classe au premier rang en Afrique du Nord pour le haut débit fixe, suivie du Maroc, de l’Algérie et de la Tunisie. Tous les pays, à l’exception de la Tunisie, ont connu une amélioration de plus de 25 % des valeurs médianes du débit descendant entre le deuxième trimestre 2020 et le premier trimestre 2021, l’Algérie ayant plus que doublé sa valeur médiane du débit descendant.

Cette tendance à la hausse s’est poursuivie jusqu’au troisième trimestre 2023, la plupart des pays d’Afrique du Nord améliorant leurs valeurs médianes médianes du débit descendant et ascendant sur le haut débit fixe. Cela a permis d’améliorer leur classement dans l’Ookla Speedtest Global Index™. L’Égypte a notamment accru son avance en Afrique du Nord, atteignant une valeur médiane du débit descendant de 56,61 Mbps et une valeur médiane du débit ascendant de 25,07 Mbps.

L’Algérie a enregistré une amélioration substantielle de la valeur médiane du débit descendant sur le fixe entre le troisième trimestre 2020 et le troisième trimestre 2023, augmentant de 4,5 fois à 11,34 Mbps. D’autres pays, à l’exception de la Tunisie, ont vu leurs valeurs médianes du débit descendant sur le fixe plus que doubler au cours de la même période.

Valeur Médiane du Débit Descendant sur le Fixe Filaire dans Certains Pays Africains
Speedtest Intelligence, T3 2020 and T3 2023

Le Maroc a connu une augmentation significative de la valeur médiane du débit ascendant, avec une multiplication par plus de 22 pour atteindre 19,09 Mbps au troisième trimestre 2023. Malgré cela, il reste à la traîne de l’Afrique du Sud, le leader africain, qui affiche plus du double du débit ascendant, à 38,53 Mbps. Les autres pays d’Afrique du Nord ont connu des améliorations plus modestes du débit ascendant, allant d’une multiplication par 1,5 en Algérie à une multiplication par 2,5 en Tunisie.

Valeur Médiane du Débit Ascendant sur le Fixe Filaire dans Certains Pays Africains
Speedtest Intelligence, T3 2020 et T3 2023

L’accès DSL et sans fil sont les technologies les plus couramment utilisées pour les services de haut débit fixe en Afrique du Nord.

La ligne d’abonné numérique (DSL) est la principale technologie pour les services fixes à haut débit en Afrique du Nord, exploitant les lignes téléphoniques existantes pour la connectivité Internet. Les deux principaux types de DSL sont la ligne d’abonné numérique asymétrique (ADSL) avec des vitesses allant jusqu’à 24 Mbps et la ligne d’abonné numérique à très haut débit (VDSL) offrant des vitesses allant jusqu’à 52 Mbps pour le VDSL1 et 200 Mbps pour le VDSL2. Cette dernière peut être encore améliorée grâce à la technologie G.Fast.

Le VDSL utilise une fibre optique qui se termine à une armoire à proximité, une configuration souvent appelée Fiber-to-the-Cabinet (FTTC). La connexion du « dernier mile » vers les locaux des utilisateurs utilise ensuite les lignes de cuivre existantes. Le FTTC sert généralement d’étape de transition vers la fibre jusqu’au domicile/bâtiment (FTTH/B), où la fibre s’étend directement jusqu’aux locaux de l’utilisateur.

En Algérie et la Tunisie, les services haut débit mobile et FWA qui utilisent les technologies 3G et 4G représentent près de 30 % de toutes les connexions haut débit fixes. Toutefois, ces connexions cellulaires sont moins répandues au Maroc et en Égypte. La 4G offre des débits descendants comparables à l’ADSL et au VDSL1 mais inférieures au VDSL2 et au FTTH/B.

L’Afrique du Nord est à la traîne par rapport à la région du Golfe en termes de couverture, d’adoption et de vitesse Internet de la fibre optique. Des plans ambitieux de développement de la fibre optique ont placé le Bahreïn, le Koweït, Oman, le Qatar, l’Arabie saoudite et les Émirats arabes unis en tête du classement mondial de vitesse. Par exemple, au troisième trimestre 2023, les Émirats arabes unis, classés quatrièmes dans le Speedtest Global Index™ avec une valeur médiane du débit descendant de 231,98 Mbps. Le Koweït s’est classé vingt-deuxième et le Qatar vingt-troisième. Les autres pays du Golfe sont à la traîne des Émirats arabes unis, mais étaient en avance sur tous les marchés d’Afrique du Nord.

Les débits Internet fixes restent relativement faibles en Afrique du Nord malgré des améliorations significatives de l’accès FTTH/B

La lenteur du déploiement de la fibre optique par rapport aux pays du Golfe peut être attribuée à des facteurs tels qu’un financement public limité, des réglementations restrictives en matière de télécommunications, des investissements privés limités, ainsi que des défis géographiques et d’urbanisation. La plupart des pays d’Afrique du Nord ont également une plus grande superficie terrestre, une géologie plus variée et un niveau d’urbanisation plus faible, ce qui rend le déploiement de la fibre optique plus complexe et plus coûteux.

Le paysage concurrentiel du marché joue également un rôle, les opérateurs historiques contrôlant plus de 80 % des abonnements Internet fixes. Même en Tunisie, qui compte davantage de FAI alternatifs, Tunisie Télécom détient la majorité des abonnements DSL et fibre. En revanche, les fournisseurs de réseaux alternatifs jouent un rôle clé dans l’accélération de l’adoption de la fibre optique en Europe. En outre, les Nord-Africains ont un revenu inférieur à celui des résidents du Golfe, et la plupart ne peuvent pas se permettre les services à haut débit en raison de leurs coûts élevés.

Les défis du marché ont retardé le déploiement de la fibre et limité l’adoption et l’innovation des services. Cependant, les FAI locaux ont réalisé des progrès significatifs depuis 2020 en modernisant l’infrastructure fixe et en rendant leurs services plus abordables. L’Égypte a principalement mis à niveau son ADSL vers le VDSL et concentré les déploiements FTTH/B dans les zones en friche. Pendant ce temps, l’Algérie s’est concentrée sur le remplacement des lignes de cuivre par du FTTH/B. Le Maroc et la Tunisie ont déployé le VDSL tout en progressant dans le déploiement du FTTH/B.

En juin 2023, l’Algérie possède le plus grand nombre de connexions FTTH/B en Afrique du Nord, soit 800 000. Le Maroc suit de près avec 730 000 connexions et possède la plus grande part de fibre sur le marché du haut débit filaire (voir graphique ci-dessous). L’Égypte possède le plus grand nombre de connexions VDSL de la région et comptait quelques centaines de milliers de clients FTTH/B actifs en septembre 2023. La Tunisie occupe la quatrième position avec 55 000 connexions FTTH/B et 176 000 connexions VDSL.

Dans les sections suivantes, nous donnons un aperçu du marché du haut débit fixe en Algérie, en Égypte, au Maroc et en Tunisie. Nous mettons en évidence l’état du déploiement de la fibre optique et son impact sur les performances du réseau, et discutons des futurs plans de déploiement des FAI.

Connexions FTTH/B, Algérie, Maroc et Tunisie
Autorités de régulation des télécommunications, FAI | 2019-T2 2023

Connexions FTTH/B et part des connexions filaires fixes, Algérie, Maroc et Tunisie
Autorités de Régulation des Télécommunications, FAI | 2019-T2 2023

Des progrès significatifs réalisés dans la couverture de la fibre optique en Algérie, mais il reste encore de la marge pour stimuler l’adoption et augmenter la vitesse

En mars 2023, l’Algérie comptait plus de 3,4 millions de connexions filaires fixes, selon l’ Autorité de Régulation de la Poste et des Communications Electroniques (ARPCE). La société publique Algérie Télécom (AT) est l’unique fournisseur de services haut débit filaires. Avec 1,5 million de connexions 4G FWA supplémentaires, l’Algérie figure parmi les plus grands marchés du haut débit fixe d’Afrique.

AT a privilégié le remplacement des lignes de cuivre par de la fibre dans les grandes villes tout en conservant ses services ADSL. Il a également utilisé la technologie 4G FWA pour desservir les zones où l’infrastructure filaire n’est pas disponible ou est coûteuse à déployer. AT a tardé à adopter la technologie, mais a rapidement étendu ses services FTTH/B depuis leur introduction en 2018. Il a également augmenté les vitesses maximales sur la fibre de 100 Mbps à 300 Mbps pour les consommateurs en 2023. AT a introduit des promotions régulières, telles que le doublement de la vitesse gratuit pour les nouveaux clients. Il a également réduit ses tarifs chaque année depuis 2020, avec une ligne fibre 100 Mbps coûtant 22 dollars/mois en 2023. Ces actions ont contribué à multiplier par près de 14 le nombre d’abonnés fibre entre 2020 et novembre 2023, pour atteindre le jalon important d’un million, faisant de l’Algérie l’un des plus grands marchés FTTH/B en Afrique.

Connexions à Haut Débit Fixe par Technologie, Algérie
ARPCE | 2019-T1 2023

La migration de l’ADSL vers le FTTH a sans aucun doute amélioré la qualité de service pour les consommateurs. Cependant, il lui reste encore à augmenter la vitesse que connaissent la plupart des ménages. Alors que le débit descendant des 10 % d’échantillons les plus rapides est passée de 8,01 Mbps au troisième trimestre 2020 à 45,71 Mbps au troisième trimestre 2023, la valeur médiane n’a atteint que 11,34 Mbps au cours de cette période, selon les données d’Ookla Speedtest Intelligence®.

Selon l’ARPCE, plus de 85 % des connexions avaient un débit descendant de 10 Mbps en mars 2023. Pour améliorer le débit descendant du pays, AT devrait augmenter le débit descendant de son forfait fibre d’entrée de gamme, qui est entre 10 et 15 Mbps. Il devrait également s’efforcer de réduire le prix de ses forfaits à vitesse plus élevée. Le gouvernement a proposé d’exonérer de TVA les services à haut débit fixe en 2024, ce qui devrait permettre aux clients de passer à un forfait à vitesse plus élevée plus abordable.

AT s’est fixé des objectifs ambitieux pour étendre considérablement sa couverture fibre. Le nombre de foyers desservis par la fibre (c’est-à-dire de locaux pouvant se connecter au réseau fibre) devrait passer de 3,5 millions en 2022 à 6 millions d’ici 2024 (sur un nombre estimé de 7,4 millions de foyers). Cela fait partie de la stratégie plus large du gouvernement visant à fournir un service haut débit fixe à deux tiers des foyers d’ici 2024, ce qui pourrait ajouter 2 millions de nouveaux abonnés au marché.

Amélioration rapide des performances du réseau en Égypte grâce à la stratégie ambitieuse FTTC de l’opérateur historique

Avec près de 11 millions d’abonnés fin 2022, l’Égypte est le premier marché de télécommunications à haut débit fixe d’Afrique du Nord. La société d’État Telecom Egypt (TE) domine le secteur, contrôlant plus de 80,1 % du marché avec plus de 8,7 millions d’abonnés au haut débit fixe.

D’autres opérateurs tels que Vodafone, Orange et Etisalat by e&, offrent des services haut débit via un accès de gros au réseau de TE. Cela leur permet de fournir des vitesses haut débit comparables. Il convient de noter que la part de marché combinée de ces FAI alternatifs suit une tendance à la hausse d’année en année depuis 2019.

L’objectif stratégique de TE a été de développer ses réseaux centraux et de transmission, de mettre à niveau l’ADSL vers le VDSL et d’étendre la fibre jusqu’aux armoires de rue. En septembre 2023, TE a connecté 95 % des foyers au réseau FTTC de nouvelle génération (contre 85 % en 2019).

L’introduction des services VDSL en Égypte en 2018 a marqué un changement significatif dans les vitesses du haut débit, augmentant le maximum de 16 Mbps à 100 Mbps. TE a aussi augmenté la vitesse de son forfait d’entrée de gamme de 5 Mbps à 30 Mbps, avec une modeste augmentation de prix de 9%. Les mises à niveau des infrastructures ont également eu un impact positif sur les FAI alternatifs, qui ont augmenté les vitesses de leurs forfaits haut débit.

Ces améliorations de la couverture VDSL, des vitesses et du prix abordable ont considérablement accéléré l’adoption des services haut débit. Le nombre d’abonnés au haut débit fixe a bondi de 55% entre fin 2019 et juin 2023. L’augmentation de la vitesse minimale du haut débit à 30 Mbps a entraîné une augmentation substantielle de la valeur médiane du débit descendant du pays, à 56,61 Mbps au troisième trimestre 2023, contre 25,07 Mbps au troisième trimestre 2020, selon Ookla Speedtest Intelligence. Étant donné que TE offre actuellement des vitesses allant jusqu’à 150 Mbps, il existe de nombreuses possibilités d’améliorer encore le débit descendant.

Connexions à Haut Débit Fixe par FAI, Egypte
Telecom Egypt | 2019-T2 2023

TE a lancé les services FTTH/B en 2009, faisant de l’Égypte l’un des premiers utilisateurs de la fibre optique dans la région. Il a donné la priorité aux déploiements FTTH/B dans des zones vierges telles que les nouveaux développements et les complexes résidentiels. TE vise à terme à migrer les clients VDSL existants vers FTTH/B.

Le gouvernement a alloué un budget de 360 millions de dollars en 2021 pour étendre la fibre jusqu’au domicile (FTTH) à un million de foyers afin d’améliorer l’accessibilité à la fibre. Le développement du “Nouveau Caire”, une nouvelle mégapole située à 35 km à l’est de la capitale, devrait également stimuler la demande de services de fibre optique.

Le marché concurrentiel de la fibre optique au Maroc a favorisé l’adoption du haut débit et l’amélioration de la vitesse

Maroc Telecom (MT) domine le marché du haut débit fixe au Maroc. Le contrôle de l’opérateur sur l’infrastructure cuivre a incité d’autres FAI, inwi et Orange, à développer leur propre infrastructure fibre, et louer de la capacité auprès des sociétés de services publics et de transport locales.

Le marché du haut débit fixe filaire connaît une croissance rapide au Maroc, passant d’un peu plus de 1,6 million en 2019 à plus de 2,2 millions de connexions en juin 2023 (sur environ 8 millions de foyers). Cette croissance est principalement due au passage du DSL au FTTH/B depuis 2020, comme on l’observe dans le graphique ci-dessous.

Connexions à Haut Débit Fixe par Technologie, Maroc
ANRT | 2019-T2 2023

Les consommateurs se tournent vers des services plus rapides et plus fiables, avec une demande de connexions DSL en baisse depuis 2020 et une adoption FWA en baisse depuis 2022. MT a lancé la fibre en 2014, offrant un service premium à 100 Mbps et 200 Mbps. En 2022, MT a accéléré le déploiement de son réseau FTTH/B et a augmenté la capacité de son réseau de 40 % sur un an en juin 2023, contribuant ainsi à élargir sa base de clients fibre de 43 %.

inwi et Orange ont lancé leurs services fibre en 2018, offrant une gamme de vitesses plus large à partir de 20 Mbps et des prix inférieurs à ceux de MT pour le haut de gamme. Ces services sont disponibles dans les grandes villes comme Casablanca, Rabat et Fès. Ils représentaient collectivement 52,69 % du marché de la fibre en juin 2023, ce qui montre que le segment est assez compétitif au Maroc.

Cela a entraîné une augmentation des vitesses côté utilisateur. Au troisième trimestre 2023, la valeur médiane du débit descendant des services Internet fixes était passée à 21,68 Mbps, contre 9,07 Mbps au troisième trimestre 2020, selon les données d’Ookla Speedtest Intelligence. Il y a eu une évolution marquée vers les forfaits haut débit fixe de vitesse supérieure, comme en témoigne le fait qu’en juin 2023, 17,3 % des abonnés au haut débit fixe disposaient d’une vitesse d’au moins 20 Mbps, soit une augmentation spectaculaire par rapport à seulement 0,6 % en 2019 qui avaient des vitesses d’au moins 16 Mbps, selon l’Agence Nationale de Réglementation des Télécommunications (ANRT)

Étant donné qu’environ un tiers seulement des abonnés au haut débit filaire au Maroc utilisent le FTTH/B, il existe encore de nombreuses opportunités de migrer davantage de clients DSL vers la fibre et d’encourager les utilisateurs existants de la fibre à passer à des forfaits à plus haut débit. Ceci est particulièrement pertinent pour inwi et Orange, car ils proposent des forfaits fibre plus abordables à partir de 20 Mbps, par rapport au forfait fibre 100 Mbps de MT qui coûte environ 50 $/mois.

Pour l’avenir, le gouvernement marocain a des projets ambitieux pour connecter davantage de foyers aux services à haut débit dans le cadre du programme “Maroc Digital 2030”. Le gouvernement vise à connecter 5 millions de foyers à la fibre optique d’ici 2026, faisant potentiellement du Maroc l’un des plus grands marchés FTTH/B d’Afrique.

Le partage limité des infrastructures et des investissements en Tunisie ont restreint l’amélioration du débit descendant

La Tunisie offre les plus bas débits descendants sur le fixe en Afrique du Nord, soit 8,61 Mbps au troisième trimestre 2023, selon Ookla Speedtest Intelligence. Et ce, malgré le nombre de huit FAI, contre un en Algérie, trois au Maroc et cinq en Égypte. La faible performance du réseau est due à la couverture limitée des services de haut débit à grande vitesse et à leur coût inabordable pour de nombreux foyers. Par exemple, une ligne VDSL à 50 Mbps coûte plus de 26 $/mois. De plus, il a fallu attendre 2022 pour que les FAI augmentent le débit des forfaits DSL de base de 4 Mbps à 10 Mbps.

Le secteur du haut débit filaire n’a cessé de croître, atteignant plus de 1,2 million d’abonnés en juin 2023. Cela représente une augmentation de 50 % par rapport aux niveaux de 2019. Il est intéressant de noter que ce taux de croissance a dépassé celui du segment de l’accès fixe sans fil 4G, qui n’a connu qu’une augmentation de 27,4 %, atteignant un peu plus de 470 000 connexions au cours de la même période. En revanche, le service fibre reste une offre de niche en raison de sa couverture limitée et de son coût élevé. La part de la fibre sur le marché du haut débit filaire fixe a connu une légère augmentation, passant de 3,0 % en 2019 à un modeste 4,5 % en juin 2023.

Connexions à Haut Débit Fixe par Technologie, Tunisie
INT | 2019-T2 2023

Tunisie Telecom (TT), une entité publique, détient la majorité des parts dans le secteur du haut débit fixe. TT contrôle l’infrastructure nationale de cuivre, exploite le réseau dorsal de fibre optique à l’échelle nationale et est en concurrence directe et indirecte sur le marché de détail via sa filiale Topnet. La propriété de TT est répartie entre l’État tunisien (à 65 %) et Emirates International Telecommunications (EIT, à 35 %).

TT maintient une position forte dans ce secteur, contrôlant 72,9 % de toutes les connexions fibre en Tunisie en juin 2023. Ce chiffre comprend les clients directs (39,1 %) et ceux fournis via Topnet (33,8 %). Les services fibre, lancés en 2012, ne sont disponibles que dans le Grand Tunis et à Sfax. De plus, TT domine le marché VDSL avec une part de marché substantielle de 92,4 %, principalement via Topnet.

La pression réglementaire exercée par l’autorité des télécommunications INT (Instance Nationale des Télécommunicationss) a exhorté TT à réduire ses frais d’accès au réseau et accélérer l’activation de la ligne pour aider les autres fournisseurs d’accès Internet (FAI). Malgré ces efforts, divers défis persistent, incitant les opérateurs tels que Ooredoo et Orange à compléter leurs offres filaires avec des services de haut débit mobile basés sur la 3G et la 4G, en plus du FWA basé sur TD-LTE.

Ooredoo, qui a introduit les services fibre en 2013, a vu sa part de marché fibre s’élever à 16,8 % en juin 2023. Son réseau fibre couvre le Grand Tunis et Sfax. Orange manque cependant d’offres fibre grand public. D’autres FAI, notamment Bee, GlobalNet et HexaByte, utilisent un mélange d’ADSL, de VDSL et de FTTH/B en accédant à l’infrastructure de TT.

À court terme, TT prévoit de mettre à niveau la plupart des ports DSL vers le VDSL et de promouvoir des forfaits à plus haut débit. Cette stratégie vise à augmenter le débit fixe moyen de 10 Mbps en 2022 à 50 Mbps en 2024. À moyen terme, TT vise à étendre sa couverture et sa capacité FTTH de 100 000 connexions en 2022 à 500 000 d’ici 2025. Ces initiatives devraient améliorer l’accessibilité du service de fibre optique et améliorer les valeurs médianes des débits descendants et ascendants du pays.

En outre, l’INT a lancé une consultation en août 2023 pour définir les conditions requises pour partager les installations afin d’éviter la duplication des infrastructures et garantir des investissements efficaces dans la fibre. La proposition est que tous les FAI et opérateurs d’infrastructures fournissent un accès partagé à leurs installations de télécommunications après 12 mois d’opérations commerciales. Cette initiative devrait permettre d’étendre la couverture fibre, de réduire les coûts d’accès et de soutenir le développement de la 5G.

La fibre peut libérer davantage le potentiel de connectivité en Afrique du Nord

Comme indiqué ci-dessus, les FAI nord-africains ont adopté diverses stratégies pour déployer la fibre optique et promouvoir son adoption. Ils ont fait des progrès considérables dans l’amélioration de l’accessibilité à la fibre optique et de la vitesse du haut débit fixe depuis 2020. Cependant, un écart important demeure par rapport aux marchés plus avancés du Moyen-Orient et d’Afrique.

Pour combler cet écart, il est essentiel de faciliter les investissements dans la fibre optique par le biais de partenariats public-privé, de promouvoir le partage des infrastructures, d’accroître la concurrence, de fournir des cadres réglementaires solides et d’étendre la bande passante internationale. De telles initiatives rendront les services à haut débit plus abordables et accessibles, ce qui fait partie intégrante de la progression de la transformation numérique nationale et de la stimulation de la croissance économique.

Ookla a travaillé avec des FAI, tels que Bahrain Network (BNET) et les régulateurs de télécoms, pour soutenir leurs plans nationaux de haut débit, suivre les améliorations de la connectivité et de la couverture fibre et promouvoir leur réseaux auprès des consommateurs. Si vous êtes intéressé par les solutions et services d’Ookla en matière d’intelligence et de gestion des réseaux, contactez-nous.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

| January 12, 2024

Bahrain’s 5G Gaming Performance and Investments are Aligned with its Aspirations to Become a Regional Hub

Bahrain took the lead in 5G gaming performance across the Gulf Cooperation Council (GCC) and the Middle East during the first half of 2023, based on Ookla Speedtest Intelligence® data. This article examines the gaming performance on Bahrain’s 5G networks, evaluates their suitability for multi-player on-device and cloud gaming services, and discusses local initiatives to position Bahrain as the regional gaming hub.

Key takeaways

  • Bahrain’s 5G Game Score™ was the highest in the Middle East at 87.64 out of 100 during Q1-Q2 2023. This exceptional network performance helps to deliver a good gaming experience. With ultra-fast 5G speeds (413.69 Mbps) and low latency (72 ms), most casual gamers can expect a top-notch multi-player gaming experience.
  • Bahrain’s pro-gaming policies and initiatives helped to attract international companies and foster a burgeoning local gaming ecosystem. The vibrant start-up landscape, bolstered by supportive business-friendly policies, funding, and access to tech-savvy talent, helped to attract international gaming studios and emerge local ones.
  • Bahrain faces competition from its neighbors to become a regional gaming hub. However, it can leverage its advanced networking infrastructure and reputation as a technology incubator to attract companies and entrepreneurs who want to trial new ideas and technologies for gaming and transform them into ventures that serve the region.

Bahrain leads the Middle East in terms of 5G Game Score and latency

The cellular infrastructure is critical for the growth of mobile gaming. Advanced network systems that offer speed, reliability, and low latency are pivotal to seamless gaming experiences and thus, the gaming industry. The growing popularity of mobile devices and portable gaming also pushes the boundaries of what mobile games can do. 

Recognizing this, Ookla has devised a new metric, Game Score, to measure the gaming experience. This score considers various network parameters that impact gaming, including download and upload speeds, latency, and jitter. Game Score is based on Ookla’s consumer-initiated Speedtest Intelligence results for download and upload speeds, as well as Consumer QoE’s™ latency and jitter measurements taken on actual game servers. 

Each component is scored on a scale of 0-100 and then combined in a weighted average to produce a Game Score. A higher score signifies a better gaming experience for the user. You can find more details about the Game Score methodology here.

In a recent article, we presented the Game Scores for the six GCC countries. Bahrain led the Middle East region during the first half of 2023 with the highest 5G Game Score at 87.64. The U.A.E. and Qatar trailed closely with scores of 85.59 and 85.23, respectively, reflecting the high-quality mobile network performance in these markets that provides excellent gaming experiences. Saudi Arabia, Kuwait, and Oman received lower Game Scores.

Chart of 5G Game Score, Gulf Countries

Gamers in Bahrain can enjoy a great multi-player gaming experience over 5G

Looking more closely at two main components of the Game Score – download speed and game latency – we can assess how well Bahrain’s 5G network supports multi-player gaming services.

  • Download speed is crucial for ensuring uninterrupted gameplay and maintaining high-quality streaming. High download speeds are also important for downloading digitally distributed games and updates. Download speed requirements for online mobile gaming vary depending on the game type (for example, cloud gaming needs higher bandwidth than a game played on a smartphone) and the gamer profile (for example, competitive gamers will require higher bandwidth than casual players)
  • Game latency is a measure of latency to popular gaming server locations. It impacts the speed at which a gamer’s response is reflected in gameplay and is particularly important for games where quick reactions are crucial. Low latency also means smoother and lag-free gaming.

For this analysis, we consider two types of multi-player games to account for variations in network requirements and user expectations. The table below outlines the minimum requirements for casual gamers (who make up the majority of gamers) for download speed and latency for on-device and cloud games.

List of Network Requirements for Mobile Games

Ookla’s data shows that Bahrain significantly exceeds the speed requirement for both game types, with a median download speed of 413.69 Mbps during Q1-Q2 2023. This implies that gamers should not face delays in downloading games, loading games, or applying patches.

Bahrain has also the lowest latency in the Gulf region at 72 ms and should provide smooth gameplay for most casual games. Yet, some multiplayer shooters, racing, fighting, and multiplayer online battle arena (MOBA) games might experience some lag, particularly if streamed from a cloud server outside the country. There’s room for operators to enhance conditions for multiplayer games, especially for competitive gamers.

It should be noted that the gaming experience can be affected by other factors besides 5G network quality. The location of the game server, for example, can influence latency. If the game server is outside the country or region then the quality of international connectivity matters more. Since Bahrain has a small land mass and a high population density, game servers, and international gateways are likely to be close to gamers. This partially explains why its game-related metrics are better than those of other countries in the region.

Chart of Median Download Speed and Latency in Bahrain vs. Minimum Requirements for Games

Bahrain made the digital sector, including gaming, central to its economic expansion. The government and various regulatory authorities have fostered a favorable business environment to attract investments from global technology companies. Operators have also supported the country’s ambition to become the regional ICT hub by developing advanced digital infrastructure and nurturing local talent.

Following the COVID-19 pandemic, Bahrain prioritized ICT as a key sector for economic growth and diversification, setting targets to achieve 100% broadband coverage and increase the number of start-ups by 20% by the end of 2026. According to the Telecommunications Regulatory Authority (TRA), mobile broadband penetration of the population reached 146.0%, and fixed broadband penetration of households reached 69% in Q3 2023. 

Bahrain was among the first countries in the Middle East to launch 5G in 2019. The three mobile operators, Batelco, stc, and Zain, have invested in its expansion, achieving 100% 5G commercial network coverage. Operators are also upgrading their 5G infrastructure to improve throughput and reduce latency by deploying 5G Standalone (SA) and 5G Advanced (5.5G). For example, stc tested 5G SA in May 2022 and 5G network slicing in October 2023. Batelco deployed a cloud-native 5G core and tested 5G SA in April 2022. Zain trialed 5G SA in 2022 and implemented 5G carrier aggregation using a mid-band frequency.

Furthermore, Batelco’s parent company, Beyon, announced an investment of over $250 million to support the country’s digital transformation. This includes the development of the country’s biggest data center. In 2022, stc announced that it plans the region’s largest technology park, which includes a new data center. These new facilities will supplement existing data centers and strengthen the country’s position as a regional digital infrastructure center.

The country’s extensive and high-quality network infrastructure underpinned its ‘Cloud First Policy’ which encouraged public and private organizations to migrate to the cloud. This strategy has proven successful in attracting major hyperscalers like AWS which established three ‘regional availability zones’ in 2019 in Bahrain.

Pro-graming policies and initiatives helped attract international companies and develop a local gaming ecosystem

This influx of international cloud service providers has caught the attention of game publishers eager to cater to their fans in the region. Take Epic Games, the publisher of Fortnite, as an example. They set up a local server over AWS infrastructure to boost game response times and stimulate interest in e-sports. They expected latency to improve between 20% and 50% for players in the Gulf region and India. Similarly, Riot Games set up a local server in Bahrain for its game Valorant.

Bahrain has a vibrant start-up landscape in the Middle East region bolstered by supportive government policies, funding schemes, and a pool of young, tech-savvy talent. As part of the Bahrain Economic Vision 2030, the government established Tamkeen, an agency designed to promote private sector development and digital services adoption. Tamkeen has been involved in initiatives such as setting up a training program for video game development and the creation of the ‘D11 Gaming Hub’, designed to strengthen the e-sports ecosystem in Bahrain.

Thanks to these efforts, Bahrain attracted foreign gaming studios, like The Stories Studio, to establish a local office. It has also nurtured a burgeoning local game production industry, with award-winning gaming studios, such as Juego Studios and Regnum Studio, and a host of start-ups offering a range of products, solutions, and services for the gaming industry. Bahrain also aspires to be a leading e-sports competition destination in the Middle East, having already hosted global events like the BLAST Pro Series Global Final, NVTC Tournament, and GIRLGAMER Festival.

Operators have also taken proactive steps to capitalize on the growing demand for gaming in recognition of its potential to diversify revenue, increase customer engagement, and differentiate their services. For example:

  • Batelco introduced a mobile gaming portal in 2022.
  • stc launched the ‘stc play’ app, hosted multiple e-sport tournaments, and bundled gaming packages with its mobile data and home services.
  • Zain introduced a mobile game pass with a dedicated data allowance for popular games. It also partnered with the Bahraini Esports Federation and gaming platform provider Playhera to organize e-sports tournaments. Most recently, it launched the ‘Zain Esports Lab’ in collaboration with Tamkeen to host e-sports leagues, provide training to gamers, and offer professional opportunities for e-sports enthusiasts.

Bahrain harbors grand ambitions to strengthen its standing as a regional gaming hub

As part of the Telecommunications, ICT, and Digital Economy Sector Strategy 2022-2026, the Bahraini government aims to consolidate its reputation as a regional innovation center while continuing to lure large technology companies. Part of this strategy revolves around making the country an even more attractive destination for gaming companies to cater to the rapidly expanding base of casual gamers, e-sports enthusiasts, and professional players across the Middle East.

In November 2023, the TRA also unveiled the Sixth National Telecommunication Plan (NTP6). The plan outlines the government’s strategic three-year approach and general policies for the telecommunications sector. Bahrain’s objective is to continue to lead the way in ICT and telecommunications infrastructure development within the GCC region and aspire to be among the global top 10 in this sector.

BCG reported that the Middle East boasts the highest gaming penetration in the world, with over 60% of the population identifying as gaming enthusiasts. The audience for live-streaming games is projected to surpass 200 million in 2025, making the Middle East one of the fastest-growing regions for gaming, outpacing even China.

The GCC region is particularly ripe for growth in terms of active gamers and e-sports participants, thanks to its youthful demographic, substantial disposable income, access to affordable high-speed connectivity, and the ongoing development of gaming infrastructure. The market is bound to expand as gaming becomes more mainstream and as more female users and older demographics engage in gaming.

Statista predicts that the gaming industry in Bahrain (including in-game ads and live streaming) will generate over $38 million in 2023 and grow to over $53 million by 2027. Mobile games constitute the largest segment, with a market value nearing $12 million in 2023, expected to grow to more than $18 million by 2027. This is driven by the increasing number of players, expected to reach nearly 400,000 users by 2027. 

These figures show that the domestic gaming market in Bahrain is relatively small because of the limited population. That is why the opportunity lies in serving the larger and growing gaming audience in the Middle East and fostering a local gaming ecosystem that can scale up to serve the region.

However, Bahrain faces stiff competition from its neighbors seeking to diversify their economies through digital services. For example, Saudi Arabia invested in major gaming studios such as Capcom and Activision Blizzard via the Public Investment Fund (PIF), its sovereign fund, and has a national gaming and e-sports strategy. U.A.E. encourages global gaming producers to establish a local presence and hosts major game tournaments and events.

Bahrain should leverage its unique advantages, such as its advanced connectivity infrastructure, skilled workforce, and favorable business environment. Its track record as a technology incubator can also position it as an ideal place to test new ideas, technologies, monetization models, and regulations to support innovative gaming services.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

| December 11, 2023

Gulf Mobile Users Enjoy Better 5G Roaming Experience Within the Region Than Outside

Roaming is a significant revenue stream for operators. As international travel returns to pre-COVID-19 levels and 5G sees wider adoption, we expect more revenue growth opportunities and heightened consumer expectations for network quality when they travel abroad. This article uses Ookla’s Speedtest Intelligence® data to assess the 5G experience of outbound roamers from select Gulf countries (Kuwait, Qatar, Saudi Arabia, and the U.A.E.) during Q1-Q3 2023 and compare their experience across different destinations and to their home network. 

Key messages:

  • Travelers from Qatar and the U.A.E. had the best 5G roaming performance within the Gulf region. According to Ookla’s Speedtest Intelligence data, roamers from Qatar enjoyed the fastest median download speed in Saudi Arabia at 362.93 Mbps. Those from the U.A.E. experienced a download speed of 225.46 Mbps in Qatar. Roamers from both countries also observed the lowest multi-server latency in the region at 76 ms and 75 ms, respectively.
  • Qatar is the fastest destination for 5G roamers from within the region. Visitors from Kuwait, Saudi Arabia, and the U.A.E. enjoyed a median download speed of at least 195.55 Mbps when roaming in Qatar. Outside the Gulf, Switzerland emerged as one of the fastest destinations for U.A.E. travelers, while the U.K. topped the list for Qatari travelers. Saudis traveling to Thailand enjoyed high download and upload speeds at 158.69 Mbps and 21.03 Mbps, respectively.
  • Roamers from Kuwait and the U.A.E. experienced a significant drop in 5G network performance when roaming. Travelers from these two countries perceived a notable decrease in download and upload speeds compared to their home networks. Kuwaiti travelers were also more likely to experience a degradation in streaming and online gaming experience abroad because roaming latency is at least four times higher than in their home network.

5G is a key driver for roaming revenue growth and customer retention for Gulf operators

Operators aim to leverage 5G technology to offset revenue lost due to COVID-19. As international travel rebounds and 5G adoption rises, roaming is projected to become an increasingly significant source of revenue. Juniper Research predicts that the global retail roaming market will nearly double from its 2022 level to $19 billion by 2027.

Gulf operators are well-positioned to benefit from the recovery of the travel industry given the region’s large expatriate population, its status as the Middle East’s business hub, and the increased economic activity spurred by high crude oil prices. These factors are contributing to revitalizing travel to and from the Gulf region.

5G adoption is poised to boost roaming revenue, thanks to increased data consumption and the emergence of new use cases like mobile cloud gaming. Therefore, operators should ensure that their premium 5G customers receive a consistent roaming experience comparable to their home network. This strategy can improve customer satisfaction and retention and present opportunities to upsell larger data roaming packages.

However, 5G roaming is still in its nascent stages. Current 5G roaming agreements require minimal system upgrades and changes to existing 4G agreements because most 5G networks deployed are ‘non-standalone’ (NSA), where 5G traffic is routed as 4G traffic in the core network.

Operators should start assessing the quality and consistency of 5G NSA roaming services in preparation for the gradual introduction of 5G standalone (SA) roaming agreements. The migration to a 5G SA architecture requires radio access and core network upgrades. This shift means new roaming agreements and thorough testing and validation to ensure optimal network performance. 

Gulf operators are early adopters of 5G SA and 5G SA roaming. According to the Global mobile Suppliers Association (GSA), five operators in the Gulf Cooperation Council (GCC) region were evaluating 5G SA, six either deployed or launched the service, and three were in the planning phase. stc Kuwait and Belgian operator Proximus announced one of the earliest 5G SA roaming connections in the GCC in November 2022. stc Kuwait and AIS Thailand set up a new 5G SA roaming connection the following year.Kaleido Intelligence reports that 88% of surveyed mobile network operators worldwide plan to launch 5G SA roaming by the end of 2025. By 2024, around 98% of operators are expected to have some form of 5G NSA roaming agreement in place.

Users are more likely to use 5G roaming services when traveling within the GCC

We used Ookla’s Speedtest Intelligence® to assess 5G network performance of outbound mobile roamers from Gulf countries to various destinations during the first nine months of 2023. We also benchmarked roaming network performance against home network performance for each country of departure.

We selected destination countries with at least 30 distinct outbound roamers from any individual Gulf country that ran Ookla Speedtests to ensure that it is a representative sample. We also excluded Bahrain and Oman from this analysis due to insufficient data points from destinations outside the Gulf region.

Our findings reveal that Gulf-based travelers were more likely to use 5G roaming services when traveling within the region than outside. It could be due to local operators offering more affordable and generous data allowances within the region, thereby encouraging roaming usage. It could also be that many travelers are migrant workers returning to their home countries and, therefore, are more likely to use a local SIM to avoid roaming charges.

The U.A.E. stands out as the top roaming destination for GCC users, based on Speedtest Intelligence® data, followed by Bahrain, Saudi Arabia, and Qatar. Europe and the U.S.A. were the next main destinations, with the U.K. leading this group, ranked fifth overall. The propensity to roam was less prominent in these countries than within the GCC, likely due to high roaming data fees. Asian countries, such as China, Thailand, and the Philippines, have the smallest representation in our data sample

Top Destinations for Roamers from all Gulf Countries, by Share of Samples
Speedtest Intelligence® | Q1-Q3 2023
Top Destinations for Roamers from all Gulf Countries, by Share of Samples

The sections below analyze 5G network performance for international roamers from Kuwait, Qatar, Saudi Arabia, and the U.A.E. For each country of origin and destination, we include median 5G download speed, upload speed, and multi-server latency results for roamers during travel, and upon returning to their home 5G network.

Roamers from Qatar and the U.A.E. enjoy the best 5G download speed and latency when traveling

Roamers may experience different levels of network QoS when traveling abroad due to several factors, such as whether host operators enable 5G roaming, the terms of roaming agreements between the home mobile operator and host operators, and the partner’s network capacity allocated to roamers. For example, telecom groups active in the region, such as e&, Ooredoo, stc, and Zain, can leverage their presence in different markets to provide superior network performance to visitors and offer lower data fees than if they were partnering with a third-party host.

Data from Ookla Speedtest Intelligence reveals that customers from Qatar and the U.A.E. experienced the fastest median 5G download speeds when roaming (362.93 Mbps and 225.46 Mbps, respectively) and the lowest latency (76 ms and 75 ms, respectively) among the countries analyzed during Q1-Q3 2023.

5G Network Performance for Roamers from Qatar
Speedtest Intelligence® | Q1-Q3 2023
5G Network Performance for Roamers from Qatar

Latency increased significantly in other locations for visitors from Qatar, ranging from 255 ms in the U.A.E. to 310 ms in Bahrain. For U.A.E. travelers, the second-best latency was in Saudi Arabia at 236 ms, way higher than in Oman where it was 75 ms.

5G Network Performance for Roamers from the U.A.E.
Speedtest Intelligence® | Q1-Q3 2023
5G Network Performance for Roamers from the U.A.E.

Mobile users from Qatar traveling outside the GCC witnessed a significant decrease in network performance. For example, median download and upload speeds dropped to 31.59 Mbps and 4.55 Mbps in the U.K.  Switzerland emerged as one of the fastest destinations for download speed outside the GCC for U.A.E. travelers at 132.34 Mbps and an upload speed of 15.66 Mbps. Outbound roamers from the U.A.E. experienced more drastic deterioration in 5G upload speeds outside the GCC region than those from Qatar, reaching a maximum of 4.67 Mbps recorded in the U.S.A.

Qatar also delivered impressive download speeds, exceeding 195 Mbps, to tourists from Kuwait, Saudi Arabia, and the U.A.E. Furthermore, it provided an upload speed of more than 15.66 Mbps for visitors from Kuwait and Saudi Arabia. By contrast, U.A.E. operators provided a download speed of 176.37 Mbps to Kuwaiti travelers but only 108.78 Mbps for Saudi roamers.

Travelers from Saudi Arabia get the highest 5G download speeds when roaming in Qatar and Thailand

Outbound roamers from Saudi Arabia get high 5G download and upload speeds in Qatar, at 199.15 Mbps and 25.93 Mbps, respectively. Thailand also offers a high 5G median download and upload speeds of 158.69 Mbps and 21.03 Mbps, respectively, outperforming other GCC and European countries.

5G latency experienced by Saudi roamers varied greatly depending on the destination. When visiting Bahrain, Kuwait, and Qatar, the median latency was very low, ranging from 87 ms to 109 ms. This response time is suitable for activities like streaming and online gaming. However, latency more than doubled when Saudi travelers visited European destinations and the U.A.E.

5G Network Performance for Roamers from Saudi Arabia
Speedtest Intelligence® | Q1-Q3 2023
5G Network Performance for Roamers from Saudi Arabia

As for the internet speeds experienced by roamers from other countries in Saudi Arabia, Qatari travelers get the best download speed at 362.93 Mbps. Travelers from the U.A.E. also experienced good download speeds at 212.72 Mbps, while those from Kuwait achieved a more modest median download speed of 83.53 Mbps. Notably, Saudi Arabia offers lower latency for roamers from Qatar and Kuwait than any other country, at 76 ms and 132 ms, respectively. 

Outbound roamers from Kuwait experience worse 5G performance than their peers from Qatar, Saudi Arabia, and the U.A.E.

Kuwaiti tourists experienced less impressive 5G performance than their peers in the region. Kuwaiti roamers in Qatar achieved download and upload speeds of 195.55 Mbps and 16.87 Mbps, respectively. The U.A.E. followed closely in second place for roaming download and upload speeds for visitors from Kuwait.

Saudi Arabia would be the preferred destination for Kuwaiti users seeking lower latency at 132 ms, roughly half of other Gulf and European destinations. In this analysis, Kuwait appears as a roaming destination for inbound travelers from Saudi Arabia only due to the small number of Kuwaiti samples in other GCC destinations.

5G Network Performance for Roamers from Kuwait
Speedtest Intelligence® | Q1-Q3 2023
5G Network Performance for Roamers from Kuwait

Roamers from Kuwait and the U.A.E. saw a significant performance decline compared to their home networks

Mobile network operators strive to offer excellent network performance to their customers when they travel abroad to enhance customer satisfaction and retention. This is especially true for high-value customers, as operators aim to provide at least a comparable experience to what they get on their home network.

Data from Speedtest Intelligence confirms that GCC residents traveling abroad experience better download/upload speeds and latency on their home networks than when they roam. However, it’s more insightful to analyze and contrast the performance gap in each country to reveal where customers are likely to be dissatisfied with their network experience when traveling. The charts below show the median download/upload speeds and latency experienced by users on their home networks and how they compare to the best-performing roaming destinations for each metric.

5G Network Performance While Roaming Compared to Home Network, Select GCC Countries
Speedtest Intelligence® | Q1-Q3 2023
5G Network Performance While Roaming Compared to Home Network, Select GCC Countries

Visitors from Kuwait and the U.A.E. experienced a notable decrease in download speeds when roaming compared to their home network. The ratio of home-to-best-roaming-destination download speed was 2.3x. in the U.A.E. and 1.9x in Kuwait. 

Qatari travelers to Saudi Arabia witnessed minor changes in network performance. In fact, they enjoyed the highest download speed in the group, both at home and when roaming, at 550.61 Mbps and 362.93 Mbps, respectively.

The median upload speed differences follow largely the same trend. Users in the U.A.E. encountered more than a 50% drop in upload speed when roaming outside the country. The home-to-best-roaming-destination upload speed ratio was 1.6x in Kuwait and 1.4x in Qatar.

Saudi Arabian travelers in Qatar were more likely to notice a drop in download speeds as the home network’s download speed was 340.64 Mbps compared to 199.15 Mbps when roaming in Qatar. On the other hand, upload speeds remained more consistent between the home network and roaming in Qatar at around 26 Mbps. 

Latency is generally more impacted by roaming because signaling needs to be routed back to the user’s home network. That is why we see larger latency differences between home and the best roaming networks. For example, the best-roaming-destination-to-home ratio was high for Kuwaiti roaming in Saudi Arabia (3.8x), resulting in a minimum latency of 132 ms, higher than in the other countries. That means that Kuwaitis were more likely to experience more degradation in their streaming and online gaming experience when traveling.

The response time of roamers from Qatar and the U.A.E., at best, more than doubled compared to 76 ms and 75 ms in their home network, respectively. The gap widens if we consider other destinations where roaming latency jumps to a minimum of 255 ms for Qataris and 235 ms for U.A.E. travelers. In other words, most roamers from Qatar and the U.A.E. will experience subpar performance of lag-sensitive services such as video streaming in many destinations.

The exception is Saudi Arabia, where travelers could enjoy similar response times (87 ms in Bahrain compared to 78 ms in the home network). Latency remained acceptable when traveling to Qatar and Kuwait (below 110 ms), but then it increased to beyond 233 ms for the U.A.E. and other European destinations.

Ookla provides unique insights into 5G roaming performance

This analysis shows that travelers from the Gulf generally enjoy better network performance when they travel within the region than outside. Two notable exceptions are Switzerland for the U.A.E. roamers and Thailand for Saudi travelers. 

This difference in performance may be due to non-GCC countries having lower 5G coverage and local operators having unfavorable roaming agreements with host networks and potential speed throttling.

Roaming performance is also not reciprocal within the Gulf region. For example, travelers to Qatar enjoy much faster download and upload speeds than Qatari visitors roaming on their neighboring countries’ networks.

Ookla can provide visibility on outbound roamers’ experience and carry out country-level and operator-level benchmarks. It can also help identify potential network issues to improve roaming agreements with current partners. Finally, it enables operators to compare users’ experience between home and roaming networks.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

| October 24, 2023

Government and Regulatory Support is Key to Improving 4G Performance in Africa

In this article, we analyze select African countries that have consistently improved their ranking in Ookla’s Speedtest Global Index™ between June 2020 and June 2023 and discuss the drivers that contributed to this rise. These countries can provide lessons and best practices that other operators and regulators can apply to bridge the 4G performance gap.

Key takeaways

  • Government and policy intervention is critical in supporting the rollout of 4G networks in Africa. Operators need more than ever support amid the challenging macroeconomic, operating conditions, and shrinking consumer disposable income. For example, the government intervened in Nigeria to cancel excise tax to reduce operators’ financial burden, promoted infrastructure sharing in Cote d’Ivoire and Zimbabwe to speed up network deployment, and led the expansion of 4G infrastructure in Libya.
  • Spectrum availability is crucial to improving network performance and coverage to meet growing data demand. For example, public authorities encouraged the efficient spectrum usage by freeing up legacy bands and refarming existing ones in Mauritius, Namibia, and Tanzania, and by adopting technology-neutral spectrum licensing in Zimbabwe.
  • Non-punitive network QoS compliance policies can help drive investments and promote fair competition. Policymakers and regulators in Africa are increasingly adopting alternatives to financial sanctions to encourage operators to meet coverage and QoS obligations. For example, the regulator in Tanzania mandated network investments instead of issuing non-compliance penalties.

Some African countries show a marked improvement in 4G download and upload speeds as well as coverage

Cellular networks are critical to connect individuals and businesses as internet access in Africa is predominantly mobile. In addition, the adoption of digital services, spurred by the COVID-19 pandemic, has rapidly increased the demand for data services. As a result, consumer needs and economic growth will increasingly depend on a fast, reliable mobile network.

We used Ookla’s Speedtest Global Index™ to identify African countries that have consistently improved their mobile speed ranking between June 2020 and June 2023. We then used Speedtest Intelligence® data to compare 4G mobile performance on modern chipsets between Q2 2020 and Q2 2023.

We focused on markets that offer strong growth potential for 4G, so we selected countries whose 4G share of connections was lower than 50% at the end of 2022 (based on data from GSMA Intelligence). The shortlisted countries represent different sub-regions and have different demographical and geographical characteristics, as shown on the map below. 

Map of Demographic and 4G Data in Select African Countries

According to Speedtest Intelligence data, Cote d’Ivoire showed impressive improvement in 4G network performance since Q2 2020, reaching a median download speed of 23.8 Mbps in Q2 2023, the third highest speed behind only Mauritius with 27.33 Mbps and Namibia with 26.92 Mbps. Tanzania doubled its 4G download speeds to 20.83 Mbps while Libya, Nigeria, and Zimbabwe had download speeds between 15 Mbps and 20 Mbps in Q2 2023.

Chart of 4G Median Mobile Downloads Speeds Comparison in Select African Countries | Q2 2020 - Q2 2023

Improvements in upload speeds over the same period and the differences between the countries were less pronounced than download speed results. With a jump of 1.6 times in 4G upload speed between Q2 2020 and Q2 2023, Tanzania moved from fourth to second place, ahead of Cote d’Ivoire and Mauritius and just behind Namibia. Notably, Libya lagged behind other countries in download and upload speeds but improved markedly over three years, despite being the last one to launch 4G in 2018, and arguably, where operators had the most challenging environment. 

Chart of 4G Median Mobile Uploads Speeds Comparison in Select African Countries | Q2 2020 - Q2 2023

In the following sections, we analyze market dynamics in each country, review operators’ 4G investments, and discuss the factors that drove (or inhibited, at times) 4G market development.

Cote d’Ivoire has plenty of room to increase 4G adoption

Mobile penetration of the population in Cote d’Ivoire increased rapidly since 2020 to reach 142.4% in Q1 2023 (according to Autorité de Régulation des Télécommunications (ARTCI)). 

Orange is the largest mobile operator in Côte d’Ivoire in terms of subscribers (45.6% in Q1 2023) and 4G network population coverage (90.6% in December 2022). It launched 4G services in March 2016 over 1800 MHz. It expanded its subscriber base rapidly thanks, in part, to a $312 million investment in network deployment and upgrades in 2019 and 2020. It also set a plan to invest a further USD120 million between 2020 and 2025 to upgrade the fiber-optic backbone of its 4G network. 

MTN captured just over a third of mobile subscribers in March 2023. It launched 4G shortly after Orange, followed by LTE-A in Abidjan in December 2020, the only operator to offer this service to date in the country. In October 2022, it signed a $75 million five-year contract with Canadian infrastructure supplier NuRAN Wireless to expand its network coverage in rural areas. However, we understood that this only concerns 2G and 3G services. MTN’s 4G coverage reached 57.4% of the population at the end of 2022, way behind Orange. 

Moov had been capturing an increasing share of mobile connections until 2018. Since then, its market share has remained mostly stable at around 20%. It launched 4G services in Q3 2016 over 900 MHz. Moov has extensive network coverage in remote areas, which has helped it to grow its subscriber base. Coverage reached just over half of the population at the end of 2022, lagging behind Orange and MTN.

The three operators managed to rapidly expand 4G coverage after launch. According to Speedtest Intelligence®, 4G service availability, which represents the proportion of an operator’s known locations where a device has access to 4G LTE service, already reached 83.5% in 2018 and increased to 94.3% during Q1-Q3 2023. Despite this, 4G share of mobile connections remains low at 18.8% in 2022 (according to GSMA Intelligence). The unaffordability of smartphones, combined with the limited coverage in rural areas and poor network QoS remain obstacles to mobile data adoption.

To address these challenges, Orange and MTN launched financing schemes and introduced affordable handset models. Further, ARTCI initiated discussions with the operators in 2022 on how to implement improvements in their network and was given additional powers to improve service quality levels. ARTCI also awarded the three operators 2×20 MHz in the 2600 MHz band for LTE to improve network data capacity and is looking for infrastructure sharing as an option to speed up 5G deployment, in time for the African Cup, which will take place at the beginning of 2024.

Government support was pivotal in Libya to accelerate 4G rollout amidst challenging conditions

Libya experienced prolonged political unrest and violence since 2011, leading to the destruction of communication networks, equipment theft, and power shortage. The progressive return to stability since 2021 has somewhat enabled the restoration and extension of existing network infrastructure.

Despite these challenges, Libya has one of the highest mobile penetration in Africa (178.5% in June 2023, according to GSMA Intelligence), and it is one of the few North African countries with an MVNO (albeit capturing less than 1% of the market). The market is a duopoly with two subsidies of Libyan Post, Telecommunication and Information Technology Company (LPTIC): Al Madar Aljaded and Libyana. Both operators introduced 4G over 1800 MHz in 2018, initially covering only a few cities.

Libyana took the lead by launching LTE in January 2018 and covering 30 major towns and cities by the end of that year. It subsequently expanded coverage to more than 49 towns and cities by April 2022. 

Almadar Aljaded launched LTE and LTE-A in October 2018 in Greater Tripoli Benghazi and Misrata before expanding nationwide, claiming coverage for more than 80% of the population in 2022. 

4G deployment gained momentum and the restoration of the telecoms infrastructure resumed thanks to LPTIC’s program launched in 2021 to extend LTE coverage to underserved areas thanks to cooperation agreements with foreign governments and telecoms groups. According to Speedtest Intelligence®, access to 4G service increased from 11.8% in 2019 to 76.8% during Q1-Q3 2023. Northern regions had particularly benefited from network coverage enhancements as shown in the map below where green squares show locations where 4G service is available and red squares where 4G service is unavailable.

This coverage expansion was accompanied by a boost to median download and upload speeds reaching 15.08 Mbps and 6.43 Mbps in Q2 2023, respectively. However, 4G network throughput is low compared to the performance of other countries featured in this article, suggesting that there is room to improve capacity.

Unfortunately, the deadly floods that struck the eastern part of the country in September 2023 are a significant setback. We expect network expansion and upgrade efforts will be delayed as funding will be directed toward relief efforts and the restoration of basic mobile services.

Maps of 4G Service Availability in Northern Regions, Libya | 2019 and 2023

The allocation of additional spectrum in Mauritius helped to improve 4G coverage and speed

Mauritius is an early adopter of 4G with a saturated mobile market (population penetration reached 160.0% in Q3 2023). The market has three active mobile network operators: incumbent operator Cellplus Mobile Communications (under my.t mobile), Emtel, and Mahanagar Telephone Mauritius Limited (MTML) (operating under the CHiLi brand).

Cellplus Mobile launched 4G in 2012 over the 1800 MHz band. It initiated a major network modernization project in 2017, which resulted in a 50% increase in data traffic in 2018 enabling 4G traffic to overtake 3G traffic for the first time. It achieved quasi-nationwide 4G coverage by mid-2019.

The second operator Emtel also launched 4G in 2012 and claimed its 4G network covered the whole island by end-2022. Lastly, MTML (CHiLi), introduced LTE services in 2015 and progressively expanded coverage until it reached 90% of the population by end-2022. This led to a 7% increase in monthly data traffic year-on-year in FY2022/2021.

Operators continued to improve 4G coverage and speed as they prepared to launch 5G. According to Speedtest Intelligence®, access to 4G service increased from 64.40% in 2019 to 96.3% during Q1-Q3 2023. During that period, Mauritius pulled further ahead than the other countries with 27.33 Mbps median 4G download speed in Q2 2023, overtaking Namibia which, until then, had the fastest download speed among the countries analyzed.

These achievements were partly driven by initiatives led by the Information and Communication Technologies Authority (ICTA) which continually encouraged the refarm and release of additional spectrum. For example, the 2100 MHz spectrum (1920‐1980 MHz paired with 2110‐2170 MHz) was reused for LTE and LTE-A services since 2018, after being used exclusively for 3G. ICTA also assigned 2×10 MHz of spectrum in the range 832MHz-862MHz and 791MHz-821MHz for LTE services in 2021, which helped to increase 4G coverage.

Access to additional spectrum and operators’ investment in Namibia helped to boost 4G coverage and performance

Mobile population penetration reached 110.7% in Q3 2023, behind other African markets with similar GDP. Similar to Libya, the market is a duopoly with two mobile operators controlled by a state company, Namibia Post and Telecommunications Holdings (NPTH): MTC, with an 86% market share, and Telecom Namibia (TN Mobile).

Market leader MTC launched a 4G LTE network over 1800 MHz in May 2012, initially for mobile broadband only. MTC then activated LTE-A in April 2016 contributing to boosting download speed, despite limited service availability in selected urban areas. MTC refarmed 2100 MHz for LTE in 2018 and was awarded 2x5MHz lots in the 900 MHz spectrum band in August 2021, but that was deemed insufficient to serve its large subscriber base. It initiated the ‘081EVERY1’ project to build additional base stations and upgrade 4G infrastructure in towns to provide 100% population coverage by the end of 2023. However, we understand that this objective has not been attained as of October 2023 (LTE coverage expanded to more than 68% of the population in 2022).

TN Mobile launched 4G in November 2013 and LTE-A in late 2019, using only 1800 MHz. In July 2022, the operator outlined a plan to invest more than $124 million over five years to modernize its network, starting with its national backbone, core network, and access technologies to boost population coverage and network QoS. Before that, TN Mobile had been deploying or upgrading mobile sites in selected rural and urban areas since 2019 to achieve 100% population 4G coverage by end-2023. However, the cost of competing with the dominating incumbent operator will likely make it difficult to achieve it.

According to Speedtest Intelligence, 4G service availability in Nambia increased from 24.7% in 2019 to 76.6% over January-October 2023, with the Otjozondjupa region showing substantial improvement (see map below). However, according to the Communications Regulatory Authority of Namibia (CRAN), only seven out of fourteen regions were covered by 4G, calling for more private-sector investment to increase 4G footprint. To support these efforts, the CRNA kicked off the auction process for 700 MHz (703-788 MHz) and 800 MHz (790-862 MHz) frequency bands in February 2023. The spectrum was awarded in October 2023 to the two mobile operators and local ISP Loc8 Mobile for 4G and 5G services.

The three licensees should provide 4G and 5G services with at least 20 Mbps download speed and have to extend 4G coverage to at least 80% of the population in six out of the 14 regions. This suggests that operators will need substantial investments in network infrastructure to satisfy these coverage and speed requirements.

Maps of 4G Service Availability in Otjozondjupa Region, Northern Namibia | 2019 and 2023

Access to multiple spectrum bands helped operators in Nigeria to rapidly expand 4G network coverage

Nigeria is the largest market in Africa in terms of mobile connections with over 220 million mobile subscribers. The market peaked in 2020 and then contracted due to the implementation of the SIM registration policy. The market started recovering more in the second half of 2021 as previously-restricted subscribers obtained a new SIM through ID verification. Mobile penetration reached 90.3% in Q3 2023.

The market is highly competitive with three main players: MTN (38.7% share of subscribers in July 2023), Glo (Globacom) (27.82%), and Airtel (27.24%). 4G coverage increased rapidly to reach 80.9% at the end of 2022 though adoption peaked at around 25% before starting to fall as some customers migrate to 5G. 

Glo was the first main operator to introduce 4G services in 2016 over 700 MHz, which it then combined with 1800 MHz spectrum in 2019. It launched LTE-A in 2023 by combining  700 MHz, 1800 MHz, and 2600 MHz (which it acquired recently), and plans to deploy 4,000 LTE-A mobile sites in major towns and cities.

MTN launched 4G the same year using 1800 MHz and 2600 MHz bands. It then launched LTE-A by combining 2600 MHz and 1800 MHz in 2019. MTN then acquired 800 MHz spectrum to improve coverage 4G coverage which reached 83% in 2023. Its CAPEX (excluding right-of-use assets) increased by 18.1% in 2022 to around $470 million to accelerate 4G and 5G network expansion. In September 2023, it acquired an additional 10 MHz of spectrum in the 2600 MHz band to improve the capacity of its LTE network. 

Airtel was the last to launch LTE over 1800 MHz, before incorporating 2600 MHz in 2019 and 900 MHz in 2022, which helped to expand coverage to more than 463 locations in the country.

Maps of 4G Service Availability in Nigeria | 2019 and 2023

Operators faced several technical and operational challenges that impacted the quality of 4G connectivity in Nigeria. This was the result of the network infrastructure not being able to keep up with pent-up demand for mobile device services. Other factors also contributed to the deterioration of network quality including the limited access to continuous power supply, vandalism, and multiple taxes and levies. 

Furthermore, the Nigerian Communications Commission (NCC) and the government took a tough stand against operators for failing to meet QoS obligations or delaying tax payments, resulting in significant fines between 2012 and 2016. 

The NCC started adopting less punitive measures against operators recently and being more actively engaged with them on QoS issues, following the South African model. The government also reversed its decision to impose a 5% excise duty on telecom services in 2023. These measures should help somewhat operators weather the current challenging macroeconomic climate.

The regulator’s efforts helped improve 4G coverage in Tanzania but data services remain unaffordable to most of the population

Tanzania has a crowded mobile market with seven operators and fierce price competition. The introduction of biometric SIM identification slowed market growth in 2020 (the market contracted by 9.5 million) before recovering in 2021. Mobile penetration reached 93.9% in June 2023.

Three operators dominate the market: Vodacom (30% of subscribers in June 2023), Airtel (27%), and third-placed Tigo (27%), which was acquired by a consortium led by Axian Telecom in April 2022.

Vodacom launched 4G commercially in 2016. It uses 700 MHz and 1800 MHz spectrum bands. It reported having deployed 2315 4G sites by the end of 2022 (up from 1814 in September 2021) and that broadband coverage reached 93% of the population.

Airtel launched LTE services over 1800 MHz in the capital Dodoma in November 2019 then expanded to other cities in 2020. It announced the deployment of its ‘Supa 4G’ LTE-A network in 2021 which uses 700 MHz and 2100 MHz in 500 cities and villages. It claims to have rolled out LTE-A in 80% of its mobile sites by April 2022. Airtel was also allocated an additional spectrum in the 1800 MHz band in 2019. 

Tigo launched LTE services in Dar es  Salaam in April 2015 over 800 MHz. It progressively expanded its network to reach 26 regions by February 2022. It launched LTE-A in September 2018 over 800/1800 MHz in a limited number of cities. In May 2022, Axian Telecom announced plans to invest $500 million in infrastructure over the next five years to improve 4G coverage and QoS, especially in rural areas, and to support the country’s digital transformation and bridge the digital divide. 

Maps of 4G Service Availability in Tanzania | 2019 and 2023

The Tanzania Communications Regulatory Authority (TCRA) has been less punitive than before. For example, in 2019, it fined the six operators $2.6 million for failing to meet QoS standards. However, in 2021, the TCRA ordered the operators to invest $16.4 million to address network issues rather than issue a new fine

The government also freed up the 700 MHz band and auctioned it off in 2018 to enable operators to provide 4G data services to more communities. Four years later, another auction was completed for 2300 MHz, 2600 MHz, and 3500 MHz bands to be used for 4G and 5G. More recently, the government launched the ‘Digital Tanzania’ project in May 2023 in partnership with mobile operators and with support from the World Bank to reach 80% broadband population penetration by 2025. Operators will use the universal access fund to deploy 758 mobile towers to provide data services to 1407 villages and over 8.5 million potential users. 

While 4G coverage reached 65%, Tanzania has the lowest 4G share of connections among the countries reviewed in this article, at 17.8% in Q2 2023. Furthermore, according to TCRA, only 27% of Tanzanians owned smartphones and mobile internet-enabled devices in 2022. 

This suggests that many consumers still can not afford data-enabled handsets and that data tariffs remain out of reach for most Tanzanians, given low income levels, since most of them live in rural areas and work in the agriculture sector.

The government plays a crucial role in progressing the national broadband connectivity agenda in Zimbabwe

According to the Postal and Telecommunications Regulatory Authority (POTRAZ), mobile penetration reached 91.9% at the end of Q2 2023. Mobile data connectivity is the most common way to access internet services. 3G and 4G services represented more than 98% of data connections in the country, and the main driver for internet penetration.

The market is dominated by Econet which controls 72.3% of subscriptions as of June 2023. It launched 4G over 1800 MHz in August 2013, but adoption was muted because of limited coverage, and expensive tariffs. Fast forward to October 2022, and 4G network reached 39% of the population. Econet has the highest number of LTE base stations in the country, 54.3% of the 1962 stations in June 2023. In September 2023, it announced the deployment of 30 new 4G sites by March 2024 and an upgrade of all existing 2G sites to 4G in the eastern provinces. 

NetOne is a state-owned operator and the second-largest player with a 25.5% market share in June 2023. It launched 4G in November 2014, using 1800 MHz before adding 700 MHz in 2016. It resumed deployment of LTE base stations in rural areas in 2021, which helped it to control more than 44.5% of total 4G towers in the country (867 base stations) and grow its data subscribers.

Telecel has been struggling to maintain its market share over the past few years. It initially opted not to launch LTE along with competitors because it believed that the market was not ready. It eventually introduced LTE in late 2017 but had just 17 LTE base stations according to the regulator by mid-2022.

The government announced its plan to raise internet penetration to above 75.0% by 2025, up from 65.2% in Q2 2023. It announced the national broadband program covering 2023–2030 to reduce the cost of broadband access to 2% of the average monthly income from 10.1%. The government is committed to raising the funds for this plan which includes the deployment of fibre infrastructure for broadband access and backhaul. It also plans to deploy 300 base stations across the country to be shared by the operators to support mobile services in rural areas using the universal services fund.

This is a vital initiative as operators are struggling to finance their network deployment and upgrade their networks due to currency depreciation, and limited access to foreign currency to pay for equipment. Their revenues are also down due to the reduction in consumer spending as a result of inflation and reduced disposable income, which is impacting their ability to finance their infrastructure development plan.

It is clear, from the examples discussed above, that the role of governments and regulatory authorities is crucial to making mobile data services accessible in Africa. Operators need sufficient spectrum, favorable policies and regulations, and the support they need to expand 4G infrastructure. In light of the current macroeconomic and operational challenges hindering the adoption of 4G, such as spectrum availability, coverage requirements, and handset affordability, overcoming these challenges will help with the next phase of 5G development.

Connectivity is crucial to economic development, competitiveness, and innovation in the Middle East and Africa region. Ookla’s crowdsourced insights and data help policymakers make informed decisions on how to use spectrum efficiently and improve network performance and user experience. Ookla also regularly hosts events in the region to help regulators share knowledge and experiences on how to close the digital divide. Regulatory officials from Jordan, Palestine, Iraq, Qatar, Bahrain, and Libya attended the last regulatory summit in June 2023 in Jordan.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

| October 8, 2023

Gulf ISPs should help fiber customers upgrade and configure their Wi-Fi routers to deliver faster speeds

Gulf countries improved fiber coverage and adoption by investing in fixed infrastructure, raising entry-level speeds, and making fiber services more affordable. Their efforts paid off, as evidenced by their improved position in Ookla’s Speedtest Global Index™. However, the persistent use of legacy and underperforming Wi-Fi standards in home networks can hamper efforts to provide the best network experience to customers.

Key messages

  • Wi-Fi 4 is still prevalent in the region which limits fiber’s potential. Many customers cannot get close to headline fixed broadband speeds because of the widespread use of Wi-Fi 4. Indeed, more than one-third of Speedtest® samples during Q2 2023 were using this old Wi-Fi standard. That means that a sizable proportion of users are not utilizing broadband services to their full potential.
  • Migrating to modern Wi-Fi standards can bring significant speed gains. On average, customers who used Wi-Fi 5 had a median download speed that was more than five times higher than those on Wi-Fi 4 in Q2 2023. Likewise, the speed over Wi-Fi 6 was 1.2 times faster on average than with Wi-Fi 5. Therefore, fixed broadband subscribers in the Gulf (most of whom use fiber services) with routers that only support Wi-Fi 4 would benefit the most from a CPE (Customer Premise Equipment) upgrade.
  • ISPs should do more to ensure their customers’ routers and smartphones are configured correctly. Even if consumers in the Gulf region own modern smartphones and Wi-Fi routers, they may still unknowingly use Wi-Fi 4 due to device misconfiguration and coverage constraints. ISPs can help educate consumers about how to correctly set up their home Wi-Fi routers and offer solutions to improve their indoor connectivity in order to use the more efficient 5 GHz spectrum band.

Most Gulf countries improved their global fixed broadband speed ranking since 2020

The GCC (Gulf Cooperation Council) region which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the U.A.E. leads the Middle East in fiber coverage and adoption. Local ISPs, backed by the government, accelerated fiber roll-outs to keep pace with the demand for data services and to ensure universal access to high-speed internet as part of national broadband development strategies. According to the FTTH Council industry body, the U.A.E. topped the global rankings for fiber household coverage, reaching 98.1% in September 2022, a position it has maintained since 2016. Qatar closely followed in the second position with 97.8% coverage.

These two GCC countries ranked ahead of Singapore (96.5%), Hong Kong (91.6%), and China (89.4%). In Bahrain, meanwhile, more than 88% of households were connected to the fiber infrastructure, whereas fiber coverage exceeded 60% in Saudi Arabia and reached 52% in Oman.

According to Speedtest Intelligence®, the U.A.E. leads the Gulf region in median download speeds at 236.67 Mbps in Q2 2023, a number that doubled since Q2 2022. Bahrain saw another story of improvement, with its median download speed reaching 70.17 Mbps, an increase of 46% year-on-year since Q2 2023. ISPs also saw significant improvements in upload speeds. Fixed upload speeds increased by 61% and 40% in Oman and Qatar, respectively, reaching 29.27 Mbps and 73.21 Mbps. Users in Bahrain experienced the biggest jump in median upload speed, which doubled between Q2 2022 and Q2 2023 to 20.37 Mbps.

As a result, most Gulf countries boosted their ranking in the Ookla Speedtest Global Index™. The U.A.E was ranked second in the Speedtest Global Index™ for median download speeds over fixed broadband in June 2023. Other GCC countries improved their rankings as well but trailed the U.A.E.

The telecom regulatory regimes and policies also helped, to different degrees, stimulate competition in the market, raise minimum broadband speeds, and reduce broadband tariffs. For example, in April 2023, Bahrain’s Telecommunications Regulatory Authority (TRA) approved an offer from BNET, the wholesale fixed infrastructure provider, to double the speed of entry-level fiber packages while maintaining the same wholesale prices. In the U.A.E., Etisalat by e& and du increased minimum download speeds to 500 Mbps and offered discounts on higher-tier fiber plans in 2022. 

Wi-Fi 4 is still prevalent in the region which limits fiber’s potential

The choice of Wi-Fi standards and spectrum bands has a direct impact on connectivity quality, throughput, and network coverage. Indeed, Wi-Fi 5 (802.11ac) significantly increases the maximum theoretical throughput speed of the access point to 3.5 Gbps, compared to 600 Mbps supported by the old Wi-Fi 4 (802.11n) standard. 

Wi-Fi 6/6E (802.11ax) supports even faster maximum data rates (up to 9.6 Gbps) and lower latency than earlier generations. It also combines 2.4 GHz, 5 GHz, and 6 GHz spectrum bands and wider channels for better throughput and less interference. Note that achievable speeds in real life will be much lower than these theoretical limits because of signal attenuation, interference, and the hardware and software variety of connected devices.

The rest of the analysis focuses on the most penetrated fiber markets in the region: Bahrain, Qatar, Saudi Arabia, and the U.A.E. We used the percentage of samples that used a particular Wi-Fi standard and frequency band when connecting to the CPE as a proxy for their adoption by wired broadband customers in each country. We assume that most of the results reflect the performance of fiber services given that fiber represents the majority of fixed broadband connections in these four markets.

Our results show that more than one-third of test samples reported using Wi-Fi 4 to connect to the fixed CPE, but this varies considerably by country. Bahrain has the highest incidence of samples that use Wi-Fi 4 and the lowest proportion of Wi-Fi 6. Wi-Fi 4 was more prevalent in the U.A.E. than Wi-Fi 6 (30.8% compared to 17.2% in Q2 2023). This suggests that the ISPs have an opportunity to improve the network experience for nearly a third of their customer base and extend their lead in the speed leaderboard if they can address that CPE speed bottleneck.

The distribution of samples by Wi-Fi standard is largely similar between the U.A.E and Saudi Arabia. The minimum broadband speed currently offered by ISPs in Saudi Arabia is 100 Mbps, while the median download speed on fixed broadband measured by Speedtest Intelligence data was 93.85 Mbps in Q2 2023. This suggests that many customers might still be on legacy, lower-speed plans, but the more likely case is that home Wi-Fi CPEs are limiting speeds in users’ homes. Indeed, 40.2% of Speedtest samples used Wi-Fi 4 in Saudi Arabia, limiting maximum achievable speeds.

Chart of Share of Wi-Fi Samples by Generation in Gulf Countries

Migrating to modern Wi-Fi standards can bring significant speed gains

Consumer-initiated speed tests confirm that users’ experience of network speed is significantly affected by how their devices connect to Wi-Fi access points. The chart below shows the median download speed distribution by Wi-Fi standard used.

Chart of Median Download Speed by Wi-Fi Generation in Gulf Countries

Median download speeds for devices that use Wi-Fi 4 topped out at 37.18 Mbps in Bahrain, and dropped to a low of 28.47 Mbps in Saudi Arabia. Contrary to what some might think, speed improvements were far more pronounced when looking at results on Wi-Fi 4 compared to those on Wi-Fi 5, rather than comparing speeds on Wi-Fi 5 and Wi-Fi 6. Users who connected to Wi-Fi 5 had a median download speed that was more than five times higher on average than those on Wi-Fi 4. While download speeds over Wi-Fi 6 were 1.2 times faster than with Wi-Fi 5.

Wi-Fi 5 users in the UAE had the largest speed lead over Wi-Fi 4 users (6.5x). With Wi-Fi 6, median download speeds more than doubled to 251.68 Mbps for users in Qatar compared to those on Wi-Fi 5. Bahrain and Saudi Arabia were outliers, with speeds largely similar regardless of whether test samples were with Wi-Fi 5 or Wi-Fi 6. This is because these three countries have the lowest reported median download speeds (below 100 Mbps), and many users who consider upgrading from Wi-Fi 5 to Wi-Fi 6 are unlikely to see a difference in their home network performance.

Looking at the performance of the fastest 10% samples in Q2 2023 reveals a more significant potential speed uplift for data-heavy users when using modern Wi-Fi standards. Users in the top 10% of our results experience the best performance, so it is possible to gauge from their results what speeds are achievable with each Wi-Fi standard. To that end, the median download speed of the 10th percentile results on Wi-Fi 4 users across Bahrain, Qatar, Saudi Arabia, and the U.A.E. was 71.60 Mbps, compared to 330.91 Mbps on Wi-Fi 5 and 693.48 Mbps on Wi-Fi 6. Wi-Fi 5 was 2.7x faster than Wi-Fi 4 in Bahrain and 5.9x faster in Qatar, while the speed ratios of Wi-Fi 6 to Wi-Fi 5 ranged from 1.2 in Saudi Arabia to 1.9 in the UAE.

Given the clear performance advantages of Wi-Fi 5, ISPs should encourage customers to migrate from Wi-Fi 4 to Wi-Fi 5 because it will significantly impact the end-user network experience. It’s also important to note that our data confirms that fiber broadband subscribers who continue using Wi-Fi 4 are the most penalized, especially if they subscribe to a service that is advertised as offering hundreds of megabits per second.

Chart of Performance of Top 10% of Speedtest Samples by Wi-Fi Generation in Gulf Countries

The persistent usage of legacy Wi-Fi is likely due to incorrectly configured routers

Huawei and TP-Link are the top router brands reported by Gulf users utilizing Wi-Fi 4. However, their popularity can vary vastly by market depending on the equipment bundled by ISPs with their broadband offerings, as well as the ability of consumers to use third-party routers (some ISPs allow only their own routers). Our data shows that Bahrain and Saudi Arabia have the highest proportion of samples connected to a Huawei CPE. TP-Link routers are most common in Qatar and the U.A.E.

The U.A.E. has the highest proportion of routers from D-Link, Cisco, and less popular brands used with Wi-Fi 4 (nearly 64% of samples reported using ‘other’ manufacturers). This high level of market fragmentation is likely due to users replacing routers provided by their ISP or installing refurbished routers to extend coverage indoors. Such fragmentation complicates the task of ISPs to ensure that their customers use more recent routers or that they configure them correctly to use more modern Wi-Fi standards.

Chart of Wi-Fi 4 Router Market Share by Manufacturer in Gulf Countries

Our research showed that most commercial CPEs in the region introduced since 2020 likely support Wi-Fi 5 (if not Wi-Fi 6). Further, tests also showed that most Android-based smartphones that used Wi-Fi 4 were equipped with Wi-Fi 5-capable chipsets. Therefore, many users in the region are capable of using Wi-Fi 5 but are still on Wi-Fi 4. We believe that misconfigured routers could be the primary cause of such a high prevalence of legacy Wi-Fi 4 technology among Gulf countries.

ISPs can address the factors that favor Wi-Fi 4 and 2.4 GHz spectrum usage, for example, by working more closely with device manufacturers, supporting customers to acquire newer Wi-Fi routers, and correctly configuring them, as shown in the table below. 

Factors that lead to Wi-Fi 4 usage and how ISPs can address them

Legacy equipment
  • Some fixed broadband customers are locked into long service contracts and are not eligible for router upgrades
  • ISPs may not offer newer routers to existing customers whose contracts are automatically renewed
Solutions
  • Encourage existing broadband customers to upgrade to faster fiber packages to benefit from modern Wi-Fi routers
  • Offer customers the option to replace their old Wi-Fi routers for free or for a small fee during their contract
Configuration issues
  • Routers may, by default, use older Wi-Fi standards or diactivate the 5 GHz band
  • Some routers are pre-configured to use the same network name for both the 2.4 GHz and 5 GHz bands, and some devices may not handle this well
  • Some old mobile devices latch to 2.4 GHz (which is more likely used by Wi-Fi 4) on first-run but do not switch back to 5 GHz due to firmware limitations or a hardware/software setting in the router/end-user devices
Solutions
  • Work with OEMs to push firmware and software updates to prioritize newer Wi-Fi standards and the use of 5 Ghz over 2.4 GHz
  • Educate customers about the importance of updating the router’s firmware and smartphone software
  • Preconfigure the routers to have separate names for the 2.4 GHz and the 5 GHz bands
  • Offer routers that can automatically select the optimal Wi-Fi channel and band to improve performance
Coverage and performance issues
  • Distance from CPE, physical obstruction, and interference in the crowded 2.4 GHz band
Solutions
  • Offer Wi-Fi extenders to improve indoor coverage
  • Share best practices with customers on the configuration and placement of the router

Gulf-based IPSs have managed to rapidly grow their fiber footprint and migrate their customers to faster broadband services. However, a substantial portion of subscribers may not benefit from these speed increases due to the prevailing usage of Wi-Fi 4. As many ISPs in the region already offer a minimum fiber speed of 250 Mbps, they should, as a priority, migrate existing customers with legacy Wi-Fi routers to more modern models and educate customers with newer routers on how to correctly configure them. ISPs’ efforts to introduce newer CPEs will help improve the end-user experience, boost global speed rankings in the region, and ensure that their routers are more future-proof as gigabit speeds become more widespread.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

| September 21, 2023

Mobile gaming in the Gulf region: 5G improves the experience, but latency remains an issue

In this article, we look at the performance of mobile networks in the six countries of the Gulf Cooperation Council (GCC) during the first half of 2023 for their ability to support gaming services. To this end, we introduce Ookla’s Game Score™ to quantify the gaming experience and analyze four network metrics that typically impact mobile gaming: download speed, upload speed, latency, and jitter.

Key takeaways

  • The Gulf region offers strong growth potential for mobile gaming. The region benefits from a large youth demographic, a growing casual gaming base, widespread smartphone adoption, and high-speed internet access. Operators and governments are also helping to increase public engagement in gaming.
  • The U.A.E., Bahrain, and Qatar had the highest Game Scores in the Middle East (83.49, 83.24, and 82.81, respectively, on a 100-point scale). These countries have superior mobile network performance that helps to deliver a good gaming experience. Their Game Scores were also higher for 5G compared to 4G, highlighting the importance of network upgrades and migrating customers to 5G.
  • Relatively high latency in some markets can make some games glitchy. Most casual gamers should be able to enjoy a smooth experience over 5G thanks to fast download and upload speeds, but some latency-sensitive games (like multiplayer shooters) may have noticeable lags. Mobile operators can explore different approaches (such as deploying edge computing infrastructure) to improve game responsiveness and prepare their networks for more data-intensive games.

Ookla’s Game Score™ helps quantify the gaming experience

Game Score™ compares the performance of operators’ networks in terms of their ability to offer the best gaming experiences to consumers. The score is composed of different components, each measuring a different aspect of a consumer’s gaming experience based on multiple network key performance indicators. Game Score™ is based on Ookla’s consumer-initiated Speedtest Intelligence® results for download and upload speeds, as well as Consumer QoE’s™ latency and jitter measurements taken on real-world game servers. 

Each component is evaluated and scored on a scale of 0-100 for each eligible operator. Finally, scored components are combined in a weighted average to produce a Game Score for each operator. For this article, we aggregated the scores of eligible operators to obtain a country-level Game Score. More details about our Game Score methodology can be downloaded from this link.

The Gulf region offers strong growth potential for mobile gaming

According to BCG, the Middle East region has the highest gaming penetration: more than 60% of the population are game enthusiasts. The audience for live-streaming games is expected to exceed 200 million in 2025, making the Middle East one of the fastest-growing regions for gaming.

The GCC region, in particular, has strong growth potential in terms of active gamers and e-sports participants thanks to its large youth demographic, sizable disposable income, access to high-speed connectivity, and the ongoing development of gaming infrastructure (such as hosting local gaming servers and setting up gaming arenas and e-sports facilities). The market will expand as gaming becomes more mainstream and more female users and older demographics engage in gaming.

5G is also helping to increase mobile gaming adoption as it enables smoother gameplay than 4G. According to the GSMA, around half of surveyed 5G users (or those intending to upgrade to 5G) in eight developed markets game frequently compared to around 30% among non-5G users. More operators are also bundling gaming services into their 5G plans, making mobile gaming more mainstream. Operators consider gaming as a growth area and a means to increase customer engagement and differentiate their connectivity propositions (see table below).

Local governments have also implemented strategies to develop a local gaming ecosystem to diversify their economies. For example, Saudi Arabia has a national gaming and e-sports strategy while the U.A.E. aims to encourage global gaming producers to establish a local presence.

Recent gaming-related propositions and initiatives

Bahrain Batelco introduced a mobile gaming portal in 2022
stc offers stc play app and organizes e-sports tournaments. It partnered with gaming infrastructure provider Subspace in 2019 to improve the multi-player experience in the region
Zain offers a mobile game pass with a dedicated data allowance for popular games
Kuwait Zain has a dedicated e-sports division that hosts tournaments. It partnered with PLAYHERA to establish a gaming and e-sports platform in 2022
Ooredoo offers gamer-dedicated 5G and fiber plans with reduced latency. It also organizes e-sports competitions
stc offers a 5G plan add-on that promises to reduce latency, jitter, and packet loss
Oman Omantel launched ‘GeForce NOW’ cloud gaming service in partnership with NVIDIA. It also offers an add-on to get 100 Mbps extra speed on fiber and a dedicated mobile add-on for game data traffic
Ooredoo organizes local e-sports tournaments
Qatar Ooredoo launched the first e-sports tournament in Qatar, part of its e-sports brand, Ooredoo Nation – Gamers’ Land, in 2021. In 2023, it launched Ooredoo Nation League as a hub for Qatari gamers
Vodafone commercialized the Vive Cosmos headset with a subscription to VIVEPORT Infinity, a repository of VR games, apps, and videos
Saudi Arabia stc launched ‘stc play’ e-sports and game distribution platform and rolled out the Blacknut cloud gaming platform. It also offers a mobile data add-on tailored for gamers
Mobily launched an e-sports platform for gamers powered by D11 Gaming. It also offers Game Mode, an add-on for unlimited use of PUBG Mobile and League of Legends: Wild Rift games
Zain launched ‘GeForce NOW’ cloud gaming service. It also offers a fiber package dedicated to gaming that includes a low-latency router, up to 500 Mbps for download and 200 Mbps for upload speeds
U.A.E. Etisalat by e& launched ‘Arena Play’ mobile add-ons to enable customers to play without incurring data charges. It also introduced ‘Arena eLife’ fixed broadband add-on to access many games online from home
du launched Games Instant Play as part of its ‘My World’ mobile portal

Bahrain, Qatar, and the U.A.E. had the highest Game Scores in the Middle East

The U.A.E., Bahrain, and Qatar had the highest Game Scores during the first half of 2023 in the Middle East. That means that users in these countries get the best mobile gaming experience in the region. The U.A.E. is home to the fastest 5G operator globally in Q2 2023, according to Ookla Speedtest Intelligence™ data. The U.A.E. comes first with a Game Score of 83.49 on a 100-point scale (considering all mobile technologies). The U.A.E.  was closely followed by Bahrain with a score of 83.24 and Qatar with a score of 82.81. These results reflect the superior mobile network performance in these three markets which helps to deliver a good gaming experience. Kuwait, Saudi Arabia, and Oman were further down the Game Score ranking, achieving scores of 80.41, 78.74, and 75.40, respectively. 

Chart of Overall Game Score™, per Country

Game Scores were consistently higher for 5G than 4G users in all Gulf countries. The gaming experience benefits from the larger bandwidth and lower latency offered by 5G, contributing to smoother and more responsive gameplay. Game Scores on 4G lagged those on 5G by a range from 5.37% in Oman to 8.26% in Saudi Arabia. Gulf operators have the potential to improve the gaming experience by continuing to improve their 5G infrastructure, migrating more customers to 5G, and establishing local gaming servers.

Chart of Game Score™ for 4G and 5G, per Country

In the following sections, we break down the Game Score into its components to understand how being on a 4G or 5G network can affect the everyday gaming experiences of Gulf-based mobile users.

Gaming download and upload speeds are markedly higher on 5G than on 4G, making mobile gaming more enjoyable

Download speed is essential in creating a smooth gaming experience without interruptions or degradations in streaming quality. High download speeds are also important for downloading digitally distributed games and updates. Download speed requirements for online mobile gaming vary depending on the game type (for example, cloud gaming needs higher bandwidth than a game played on a smartphone), gamer profile (for example, competitive gamers will need higher bandwidth than casual players) and use cases (for example, downloading game updates compared to playing preload games). 

For the purpose of this analysis, we assume that 25 Mbps is the minimum download speed to enjoy a good gaming experience for casual gamers (who represent the majority of gamers). According to Ookla’s data, all Gulf markets comfortably exceed that requirement on 4G and surpass it significantly on 5G. Kuwait had the lowest download speed over 4G in the first half of 2023 at 35.12 Mbps. In contrast, Oman had the lowest 5G download speed at 176.79 Mbps. 

U.A.E. offers the fastest median download speeds for both 4G and 5G at 69.17 Mbps and 566.10 Mbps, respectively, ahead of Qatar and Bahrain which rounded out the top 3 in the region. 5G offers significantly better performance than 4G in all markets. The median 5G speed across Gulf countries was 6.8X faster than the median 4G speed (345.53 Mbps vs. 43.9 Mbps).

Chart of Median Download over 4G and 5G, per Country

Upload speed also plays an essential role in creating a smooth gaming experience without interruptions or quality degradation, particularly in multiplayer games. We use 3 Mbps as a reference point based on the recommended minimum upload speed for a good gaming experience for casual gamers.

Ookla’s data shows that Gulf markets are crushing it when it comes to exceeding upload requirements for both 4G and 5G. The lowest median upload speed recorded on 4G was in Saudi Arabia at 10.87 Mbps; For 5G, it was in Oman at 17.28 Mbps. Median upload speeds on 5G were 1.27X faster than those on a 4G network in the region. The gap between 4G and 5G upload speeds is larger in Bahrain, Saudi Arabia, and the U.A.E., which means that gamers in these countries could see the most significant improvement in gameplay and streaming quality when switching from 4G to 5G. In absolute terms, Qatar, Bahrain, and the U.A.E. offer the fastest upload speeds, reaching a maximum of 38.48 Mbps for the latter.

Chart of Median Upload over 4G and 5G, per Country

Relatively high latency in some markets can make some multiplayer games glitchy on 5G

Game Latency is a measure of latency to popular gaming server locations. Latency affects how quickly a gamer’s response is reflected in gameplay and is of particular interest to those who prefer games where reaction time is crucial. Low latency can provide smooth and lag-free gaming. For this analysis, we consider a sub-100 ms latency to be good for many games and most casual gamers.

Ookla’s data shows that most countries, except Oman, recorded latency below 100 ms on 5G. Bahrain had the lowest latency on 5G at 72.01 ms, and Oman had the highest latency at 115.46 ms. Saudi Arabia and Kuwait also had a relatively high 5G latency at 93.2 ms and 90.31 ms, respectively, which means that some multiplayer shooters, racing, fighting, and multiplayer online battle arena (MOBA) games might have a noticeable lag. Operators have room to improve the conditions for multiplayer games, especially for competitive gamers. 

Users saw more modest differences in latency between 4G and 5G than for download and upload speeds. That means that multiplayer gamers can still get decent gameplay on either network technology and may not perceive an improvement in response time when switching to 5G. However, enhancements in 5G infrastructure will widen 5G’s advantage over 4G and provide a stronger incentive for gamers to migrate over time.

Chart of Gaming Latency over 4G and 5G, per Country

The variation in latency to popular gaming servers, known as Game Jitter, can also cause laggy gameplay or distorted audio if it is too high. For smoother gameplay, latency should be consistently low. A jitter below 30 ms is considered good for casual mobile gamers.

Results show that the Gulf region has low jitter, especially on 5G. Jitter ranged from 8.26 ms in Bahrain to 13.43 ms in Oman during Q1-Q2 2023. Jitter on 4G was slightly higher than 5G in all countries except in Oman where it was surprisingly lower at 11.55 ms – both Ooredoo and Omantel recorded lower jitter on their 4G network than on 5G during the first half of 2023. 

Chart of Gaming Jitter over 4G and 5G, per Country

The localization of gaming servers, the rollout of 5G Standalone (SA), and edge computing can push mobile gaming performance to new heights

Mobile operators can explore different approaches to improve connectivity consistency, speeds, and latency compared to current 5G in order to support more data-intensive games, enhance the multi-player gaming experience on smartphones, and cater to competitive gamers. 

  • Shorten the distance between the users and the game servers. According to data published by the Saudi’s telecoms regulator, users can save, on average, 60 ms in latency when playing popular games with servers located in the GCC compared to servers in Europe. We expect more Gulf-based operators will host game servers in their data centers as more publishers strive to offer the best experience to local gamers.
  • Deploy 5G Standalone (SA) to increase bandwidth and speed and enable ultra-low latency. Most of the 5G networks deployed in the Gulf region use the Non-Standalone (NSA) model, where the radio antennas (part of the radio access network) are based on 5G but the core uses a 4G infrastructure. As of July 2023, the GSA reported that seven operators in the Gulf region were evaluating 5G SA, while six have either deployed or launched the service. The migration to 5G SA is expected to reduce latency to sub-5 ms, which should help the multiplayer and cloud gaming experience.
  • Deploy edge computing infrastructure to make gaming experiences more immersive. Edge computing enables new use cases with stringent bandwidth, latency, and availability requirements. Some local operators, such as Etisalat by e& and stc, have partnered with vendors and hyperscalers to develop edge computing capabilities to target enterprise customers. Operators should explore how to exploit these resources to support their own gaming and entertainment initiatives and support those of their partners.

The GCC region has a vibrant and untapped gaming market poised for tremendous growth. This potential hinges on the robustness of the telecoms infrastructure. Gulf operators’ investments in 5G infrastructure helped them climb Ookla’s Game Score leaderboard and demonstrated their commitment to putting their countries on the gaming map. Operators can continue to improve the gaming experience and further minimize latency by deploying local gaming servers, edge computing infrastructure, and 5G SA to make games more responsive and smooth. These improvements will put the region in an even better position to lead game development and foster the local gaming ecosystem.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.