Tunisia's telecom market will be one of the fastest-growing markets in the Africa/Middle East region with total telecom revenue estimated to grow at a CAGR of 5.4 percent over the next five years, reaching $2.2 billion in 2014, according to a new report from Pyramid Research.
Even though Tunisia's mobile and fixed penetration were among the highest in the region in 2008 (82.1 percent and 11.5 percent, respectively), the low broadband penetration rate of 2.2 percent indicates there is still room for growth, observes Sylwia Boguszewska, analyst at Pyramid Research and author of the report.
"To stimulate competition, the government launched a tender for a fixed-line services license so as to promote broadband Internet access and prop up mobile telephony services," Boguszewska says. "The process of a tender for a technology-neutral license for a mobile and fixed operator was started in May 2009, and a new player is expected to enter the market in 2010," she adds. "This, plus the sale of another stake in Tunisie Telecom, will have a positive effect on market competitiveness and liberalization."
"Although the market will contract in 2009, it will bounce back with broadband being the fastest growing among other significant market segments," explains Boguszewska. Broadband services will be a considerable source of growth over the next five years, with a CAGR of 15.1 percent between 2009 and 2014, producing estimated revenue of $174 million in 2014, up from $81 million in 2008. "This growth will over compensate for the decline in narrowband Internet services, which will only generate revenue of $4 million in 2014," concludes Boguszewska.