The Mobile

Economy
Middle East
& North Africa
2024
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Contents
Executive summary 2

1. The mobile industry in numbers 10

2. Mobile industry trends 21

2.1 5G: the focus shifts to 5G-Advanced and 5G RedCap 22

2.2 Open Gateway: capturing the opportunities ahead 26

2.3 Satellite: momentum builds behind aerial connectivity 28

2.4 Generative AI: growing momentum in investment and use cases 30

2.5 Mobile financial services: supporting humanitarian assistance 32

3. Mobile industry impact 33

3.1 Operators progress towards net-zero emissions 34

3.2 The mobile industry’s impact on the SDGs 35

4. Mobile industry enablers 38

4.1 Measures to ensure industry sustainability 39

4.2 Policies for growth: importance of harmonised mobile spectrum 41

Executive
summary
Driving growth and innovation
The mobile industry continues to underpin in MENA (64% of the population) subscribed
rapid digital transformation in the Middle East to a mobile service. Growth in mobile internet
and North Africa (MENA), with advanced penetration has been remarkable. At the end of
mobile networks enabling innovative use cases 2023, 49% of the region’s population used mobile
for consumers and enterprises. The role of internet, equating to just under 327 million users
mobile infrastructure and services will become – almost triple the figure a decade earlier.
even more vital to the way society functions
However, large swathes of the population across
as governments increasingly use digital
the region still remain unconnected, most of them
technologies to tackle some of the most pressing
within the usage gap.1 Addressing the usage gap
social and economic challenges.
is crucial to closing the digital divide and enabling
The impact of mobile connectivity is evidenced life-enhancing applications around finance, health
by its contribution to the economy. In 2023, and education. Moreover, mobile connectivity
mobile technologies and services generated 5.5% continues to serve as a lifeline for individuals
of MENA’s GDP, a contribution that amounted and communities facing violent conflicts across
to $310 billion of economic value added, and the region, as well as a platform for government
supported around 1.3 million jobs across the and other stakeholders to deliver much-needed
region. By the end of 2023, 427 million people humanitarian relief.

1. People covered by a mobile broadband network but do not yet subscribe to a mobile internet service

Executive summary 2 / 43
Key trends shaping
the mobile ecosystem

5G’s next phase

The Gulf Cooperation Council (GCC) Arab
states are among the global leaders in the
development of 5G. The technology in these
markets benefits from a forward-looking policy
environment, which stimulates investments in
advanced network solutions, and a customer
base with high levels of readiness and
willingness to adopt new services. Operators
in these markets are also shifting their focus
to more advanced forms of 5G to unlock new
use cases and monetisation opportunities. In
particular, operators have begun deploying
5G networks based on the standalone (SA)
architecture while trialling 5G-Advanced and 5G
reduced capability (RedCap) technologies to
deliver new solutions for enterprises. Elsewhere
in MENA, 5G has made little progress, with
commercial services available only in four other
countries.

GSMA Open Gateway gains traction

By the end of June 2024, 53 operator groups
had signed up to the GSMA Open Gateway,
representing 240 mobile networks and
accounting for 67% of mobile connections
globally. Between the participating operators,
all regions are covered, with Du, e&, Omantel,
STC and Zain among the operators in MENA to
sign up to the initiative. As in other regions, early
GSMA Open Gateway launches in MENA have
focused on fraud prevention and security, using
APIs such as Device Status, One Time Password
SMS and SIM Swap. These can represent
quick wins, given the ever-present risks from
fraudsters and breaches for operators and their
customers. Other parts of the API library (e.g.
Quality on Demand) will be deployed in the
coming years as operators expand their rollouts
of 5G SA and other enabling technologies.

Executive summary 3 / 43
Momentum builds behind aerial Growing investments and use cases
connectivity with generative AI
The deserts and mountain ranges in several Operators in the region are increasingly adopting
countries in MENA mean that aerial connectivity generative AI (genAI) across operational and
will play an important role in realising universal business areas, driving internal transformation
connectivity, especially for communities in and new business opportunities. GenAI is being
remote and sparsely populated areas. While used to enhance customer service through
there has historically been significant interest chatbots, virtual assistants and personalised
in aerial solutions in the region, the emergence marketing; at the same time, it is being used to
of low Earth orbit (LEO) and high-altitude improve network performance via predictive
platform station (HAPS) solutions have increased maintenance and automated solutions. Many
the interest in satellites and non-terrestrial strategic collaborations are underway to help
networks (NTNs). This has ushered in a new operators maximise the value of this new
era of collaboration between telecoms and technology. Investments in AI-supporting
satellite operators for solutions spanning several infrastructure are growing, with telecoms
use cases, including remote area connectivity, operators expanding data centres to fuel AI
disaster response and maritime services. research and development, particularly in the
GCC region. However, data privacy concerns and
the shortage of skilled AI professionals, among
other challenges, remain key barriers to AI
adoption.

Mobile money for humanitarian relief

Mobile operators are at the forefront of
facilitating humanitarian relief through both
connectivity and mobile financial services,
such as mobile wallets and mobile money. In
areas affected by conflict, displacement and
economic instability, where traditional financial
systems are often disrupted, mobile connectivity
becomes a lifeline, enabling people to access vital
digital financial services to avail aid. By offering
mobile money services alongside emergency
relief efforts, operators not only address
immediate needs but also promote long-term
financial inclusion and resilience for vulnerable
populations.

Executive summary 4 / 43
Policies for success
The mobile industry in MENA has shown resilience Meanwhile, decisions achieved at the World
in the face of a myriad of macroeconomic Radiocommunication Conference 2023
challenges, such as hyperinflation and international (WRC-23) will have a major impact on the future
conflicts. At the same time, operators have of mid-band spectrum. Final harmonisation of the
remained committed to investing in high- 3.5 GHz band (3.3–3.8 GHz) – the pioneering 5G
performance networks, including 5G, to support band – was achieved across Europe, the Middle
the digitalisation agenda of governments in the East and Africa (EMEA) and the Americas. This
region, despite slowing revenue growth rates and step will allow more countries to take advantage
tightening margins. In this context, policymakers of economies of scale in the mobile ecosystem
in the region have a role to play to sustain the and benefit from higher speeds provided by wide
continued advancement of the mobile industry. spectrum channels in this range.
In particular, there is a case for policymakers in
The conference also identified 6 GHz (6.425–7.125
the region to address the widening investment
GHz) for mobile use by countries in every region
gap for telecoms infrastructure, rising taxes and
– EMEA, CIS, the Americas and Asia Pacific – and
regulatory fees and costly quality-of-service (QoS)
global, harmonised conditions for its use have
regulations, in addition to encouraging voluntary
been agreed in the ITU’s Radio Regulations. The
infrastructure sharing to ease the cost burden of
identification brings together billions of people
network operations.
into a harmonised 6 GHz mobile footprint. It also
serves as a critical developmental trigger for
manufacturers of the 6 GHz equipment ecosystem.

Executive summary 5 / 43
The Mobile Economy
Middle East & North Africa
Unique Mobile
mobile internet
subscribers users

2023
427m
64% penetration rate*
2023
327m
49% penetration rate*

2030
517m
71% penetration rate*
2030
422m
58% penetration rate*

CAGR
2023-2030 2.4% CAGR
2023-2030 3.2%
*Percentage of population *Percentage of population

SIM 4G Percentage of connections

(excluding licensed cellular IoT)

connections
(excluding licensed cellular IoT)
2023
60%
2023
716m
108% penetration rate*
2030
35%
2030
874m 5G Percentage of connections
(excluding licensed cellular IoT)

4.3%
120% penetration rate*
2023

2.5%
50%
CAGR
2023-2030
2030
*Percentage of population
Smartphones Licensed
Percentage of connections
cellular
IoT connections
2023
81%
2030
90% 2023
48m
Operator
revenues and
2030

78m
investment
Mobile's
2023
$66bn
Total revenues
contribution
to GDP

2030
$88bn
Total revenues
2023
$310bn
5.5% of GDP

$97bn $360bn
Operator capex
for the period
2030
2023–2030:

Public Employment
funding

500k jobs
2023
2023

$20bn Directly supported by the

mobile ecosystem

Mobile ecosystem contribution to

public funding (before regulatory Plus 700k
and spectrum fees) indirect jobs
Subscriber and technology
trends for key markets

2+6+6626K 0+5+95K
GCC Arab states Technology mix* Subscriber penetration
2% 5% 2023
26% 6% 78%
2030
84%
2023 2030 Smartphone adoption
95% 2023
88%
66% 2030
2G 3G 4G 5G 91%

14+32+540K 2+14+4341K
North Africa Technology mix* Subscriber penetration
14% 2% 2023
14% 71%
2030
32% 77%
2023 2030 Smartphone adoption
2023
41% 43% 84%
54% 2030
2G 3G 4G 5G 90%

47+37+160K 43+22+2510K
Other Arab states Technology mix* Subscriber penetration
10% 2023
16% 47% 43% 36%
2030
44%
25%
2023 2030
Smartphone adoption
2023
54%
37% 22% 2030
2G 3G 4G 5G 81%

19+41+400K 2+17+6813K
Levant Technology mix* Subscriber penetration
<1% 2% 2023
19% 13% 50%
17%
2030
63%
2023 2030 Smartphone adoption
41% 68% 2023
40% 87%
2030
2G 3G 4G 5G 93%

*Percentage of total connections (excluding licensed cellular IoT)

Note: Totals may not add up due to rounding

Executive summary 8 / 43
Subscriber and technology
trends for key markets

11+10+772K 1+3+2967K
Iran Technology mix* Subscriber penetration
1% 3% 2023
2% 11%
58%
67% 2030
10%
68%
29%
2023 2030 Smartphone adoption
2023
77% 75%
2030
2G 3G 4G 5G 87%

1+2+6730K 0+10+90K
Israel Technology mix* Subscriber penetration
1% 2% 10% 2023
30% 68%
2030
75%
2023 2030 Smartphone adoption
2023
67% 90% 90%
2030
2G 3G 4G 5G 94%

4+1+950K 0+32+68K
Türkiye Technology mix* Subscriber penetration
4% >1%
2023
1.4% 73%
68%
2030
32%
80%
2023 2030 Smartphone adoption
2023
95% 89%
2030
2G 3G 4G 5G 94%

*Percentage of total connections (excluding licensed cellular IoT)

Note: Totals may not add up due to rounding

Executive summary 9 / 43
01
The mobile industry
in numbers
Almost half of the By the end of 2023, 327 million people in MENA
(49% of the population) subscribed to a mobile

population in MENA
service – an increase of 160 million people since
2015. Although the usage gap remains substantial,

now subscribe to
it has narrowed by 2% since 2020. This has been
driven by the widespread availability of affordable

mobile internet
data plans and some of the lowest-cost internet-
enabled handsets in the region.

services The rapid growth of digital services and large

proportion of young people in the MENA region
mean that online content is poised to become
a key driver of mobile internet adoption in the
coming years.

Figure 1
Usage gap
MENA: mobile internet connectivity Connected

Percentage of population Coverage gap

47% 49% 47%

30%

44% 49%

23%

7% 4%
2015 2020 2023

Source: GSMA Intelligence

The mobile industry in numbers 11 / 43

5G adoption in 5G adoption in the MENA region is set to
accelerate from 2025 onwards, reaching half of the

MENA will reach 50%

region’s population by the end of the decade. The
GCC states will continue to lead, with 5G forecast

by the end of 2030

to cover 95% of the population in the GCC states
by 2030, whereas other countries are still in the
early stages of 5G deployment. By the end of
this decade, 4G’s share of total connections will
decline, falling below that of 5G.

4G will remain the dominant technology in

MENA for the coming years and will account for
more than 50% of total connections until 2027.
Meanwhile, legacy networks (2G and 3G) are
gradually being phased out as countries repurpose
spectrum for 4G and 5G.

Figure 2
MENA: mobile adoption by technology
Percentage of total connections

70%

60%

50% 5G 50%

40%

4G 35%
30%

20%

10% 3G 10%
2G 5%

0%
2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 12 / 43

By 2030, there will The GCC states are among the global leaders in 5G
adoption, with operators here increasingly focusing

be 439 million 5G
on deploying 5G SA networks while also preparing
for 5G-Advanced. Smart cities present a significant

connections in
opportunity for operators, with 5G positioned as
the backbone for diverse applications. Recent

MENA
agreements, such as the collaboration between
Orange and the King Abdullah Financial District
Development and Management Company in
Riyadh, underscore the opportunity for mobile
operators to expand their role in the smart city
ecosystem.

5G adoption in the rest of MENA will lag behind,

partly due to the delay in the commercial
launch of the technology in several key markets.
Operators continue to lay the groundwork for the
introduction of commercial 5G services in North
Africa. A recent example is the announcement
from Telecom Egypt confirming the acquisition
of a $150 million 5G licence from the country’s
regulator.

Figure 3
2024–2030 increase
5G adoption in 2030 2023
Percentage of total connections

5G connections
(2030)

GCC states 95% 99m

Developed Asia Pacific* 93% 306m

North America 90% 461m

Greater China 88% 1.81bn

Europe 80% 656m

Latin America 54% 426m

Rest of MENA 44% 340m

Rest of Asia Pacific 40% 1.14bn

Sub-Saharan Africa 17% 250m

*Includes Australia, Japan, New Zealand, Singapore and South Korea

Source: GSMA Intelligence

The mobile industry in numbers 13 / 43

Mobile data traffic Mobile data traffic per connection is projected to
increase threefold between the end of 2023 and

per connection will

2030 in MENA. This growth has been primarily
driven by the rising consumption of online

triple between 2023

content among the region's large population of
young people, who are increasingly engaging

and 2030
with activities such as gaming, video streaming,
e-commerce and social networking.

Although mobile data traffic growth is expected to

moderate in the coming years, the GCC states will
continue to dominate the market share. Meanwhile,
North Africa and the Levant are expected to
experience more than a fourfold increase in data
traffic.

Figure 4
MENA: mobile data traffic per connection
GB per month

Region 2023 2030 Increase

MENA 9.4 29.9 3.2×

North Africa 5.1 21.1 4.1×

GCC Arab states 24.4 81.7 3.4×

Other Arab states 1.1 3.9 3.7×

Levant 2.8 11.6 4.2×

Top three smartphone markets in MENA

(number of smartphone connections, 2030)

Iran Egypt Türkiye

157m 128m 82m

Source: GSMA Intelligence

The mobile industry in numbers 14 / 43

Licensed cellular IoT By 2030, there will be almost 80 million licensed
cellular IoT connections in MENA, with Türkiye

connections in
and Iran together accounting for more than
half of these. IoT connections will be boosted

MENA will almost

by the growing number of 4G, and eventually
5G, connections in the region, as advanced

double between
connectivity will enable new use cases. To address
the diverse needs of IoT use cases, operators will
leverage a combination of connectivity options.
2023 and 2030 This will help ensure optimised performance across
different applications.

For example, there is growing interest among

operators in 5G RedCap technology, which can
serve as an important enabler for mid-tier cellular
IoT applications. In July 2024, e& and Ericsson
successfully conducted end-to-end verification
of a RedCap software solution on e&’s 5G SA
network.

Figure 5
Rest of MENA
MENA: number of licensed cellular IoT connections
Türkiye
Million Iran
GCC countries

90

80

70
29%

60

50
30%
40

30

22%
20

10
20%

2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 15 / 43

By 2030, mobile Mobile revenue is expected to grow steadily in
MENA as operators continue diversifying services.

revenues in MENA
Mobile capex to revenue in the region was 17%
at the end of 2022, likely marking the peak of

will reach $88 billion

4G investment and the start of the 5G investment
cycle. The introduction of 5G services has driven
incremental revenues in areas such as 5G fixed
wireless access (FWA) and private 5G.

Services beyond core are becoming an

increasingly important part of the growth story
for operators in MENA. According to a GSMA
Intelligence survey, 57% of operators in 2023 cited
the public cloud as one of their top three strategic
enterprise technology priorities, behind only edge
computing and network slicing. Operators and
public cloud providers are becoming increasingly
intertwined (e.g. e& and Microsoft’s partnership),
with operators seeing webscalers as crucial to
generating new revenue opportunities in addition
to supporting internal transformation programmes.

Figure 6
Revenue
MENA: mobile revenue and capex to revenue
Capex to revenue (%)
Billion

18%
$100
17%
16%
$90 16% 16% 15%
14%
$80 14%

$70

$60

$50

$40

$30

$20

$10

$0
2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 16 / 43

The mobile sector In 2023, mobile technologies and services
generated 5.5% of GDP across MENA, a

added $140 billion of

contribution that amounted to $310 billion of
economic value added. The greatest benefits came

economic value to
from the productivity effects generated by the
use of mobile services across the economy

the MENA economy

reaching $220 billion. The direct contribution by
the mobile industry ecosystem was also significant
at $70 billion.
in 2023 The mobile ecosystem comprises three
categories: mobile operators; infrastructure and
equipment providers; and content and services.
The infrastructure and equipment category
includes network equipment providers, device
manufacturers and IoT companies. Meanwhile,
the content and services category encompasses
content, mobile application and service providers,
distributors and retailers, and mobile cloud
services.

Figure 7
MENA: total economic contribution of mobile, 2023
Billion, percentage of 2023 GDP

$220 $310

3.9%

Mobile ecosystem
5.5%

$20
$10
$10 0.3%
$50 0.2%
0.2%

0.8%

Mobile Infrastructure Content and Indirect Productivity Total

operators and services
equipment

Note: Totals may not add up due to rounding.

Source: GSMA Intelligence

The mobile industry in numbers 17 / 43

By 2030, mobile’s By 2030, mobile’s contribution will reach
$360 billion in MENA, driven mostly by the

economic
continued expansion of the mobile ecosystem
and verticals increasingly benefiting from the

contribution in MENA
improvements in productivity and efficiency
brought about by the take-up of mobile services.

will reach $360 billion

Figure 8
MENA: economic impact of mobile
Billion

$360

$310

2023 2030
Source: GSMA Intelligence

The mobile ecosystem Mobile operators and the wider mobile ecosystem
provided direct employment to more than

in MENA supported
500,000 people in MENA in 2023. In addition,
economic activity in the ecosystem generated

around 1.3 million

roughly 700,000 jobs in other sectors, meaning
around 1.3 million jobs were directly or indirectly

jobs in 2023
supported.

Figure 9
MENA: employment impact of the mobile industry, 2023
Jobs (million)

0.7
1.3

0.5

Direct Indirect Total

Note: Totals may not add up due to rounding.

Source: GSMA Intelligence

The mobile industry in numbers 18 / 43

The fiscal In 2023, the mobile sector in MENA made a
substantial contribution to the funding of the

contribution of the
public sector, with more than $20 billion raised
through taxes. The largest contribution came from

mobile ecosystem in
services VAT, sales taxes and excise duties, which
generated $10 billion, followed by handset VAT,

MENA reached
sales taxes, excise and customs duties at $5 billion.

$20 billion in 2023

Figure 10
MENA: fiscal contribution of the mobile ecosystem, 2023
Billion

$3

$3

$5
$20

$10

Services VAT, Handset VAT, Corporate taxes Employment Total

sales taxes and sales taxes, on profits taxes and social
excise duties excise and security
customs duties

Note: Totals may not add up due to rounding.

Source: GSMA Intelligence

The mobile industry in numbers 19 / 43

5G will add almost 5G’s contribution to the MENA economy is
expected to be just under $50 billion in 2030,

$50 billion to the

accounting for more than 13% of the overall
economic impact of mobile. Much of the 5G

MENA economy in
benefit will materialise over the second half of the
decade to 2030. Some countries are in the early

2030
stages of deployment – the 5G economic benefits
will increase as the technology starts to achieve
scale and widespread adoption.

While 5G is expected to benefit most sectors of

the MENA economy, some industries will benefit
more than others due to their ability to incorporate
5G use cases in their business. Between 2023 and
2030, more than 50% of the benefits are expected
to originate from the manufacturing sector, driven
by applications such as smart factories, smart
grids and IoT-enabled products. Other sectors that
will experience significant benefits are the public
administration and finance sectors at 11% and 8%,
respectively.

Figure 11 Other
MENA: annual 5G contribution by industry Construction and real estate
Finance
Billion
Information and communication
Services
Public administration
Manufacturing

$60

$50
11%
4%
$40 8%
5%
5%
$30 11%

$20

56%
$10

$0

2023 2024 2025 2026 2027 2028 2029 2030

Source: GSMA Intelligence

The mobile industry in numbers 20 / 43

02
Mobile industry
trends
2.1
5G: the focus shifts to 5G-Advanced and
5G RedCap
As of September 2024, 285 operators in 114 environment, which stimulates investments in
markets had launched commercial 5G services. advanced network solutions, and a customer base
GSMA Intelligence data shows that the number with high levels of readiness and willingness to
of 5G connections will reach 2 billion globally by adopt new services. Elsewhere in MENA, 5G has
the end of 2024, accounting for nearly a quarter made little progress, with commercial services
of total mobile connections. In several pioneering available only in four other countries (Jordan, Iran,
countries, notably China, South Korea and the US, Israel and Somalia).
5G adoption has reached mass-market levels. In
FWA has emerged as a top 5G use case, with
the US, for example, 5G is expected to account for
several operators offering the service alongside
nearly two thirds of total connections by the end
their 5G mobile services. A recent report3 by
of this year.
Ericsson showed high levels of satisfaction among
The GCC Arab states are among the global leaders FWA users in Saudi Arabia, with four out of five
in the development of 5G. Kuwait (ranked first) households choosing FWA as a full replacement
and the UAE (ranked second) were the top-ranked for previously used connectivity. In the UAE, Du
countries in the GSMA Intelligence 5G Index, 2 has doubled its share in the broadband market
which provides a comprehensive assessment of 5G to 30%; it attributes this and the associated
in 39 markets around world, while Qatar (ranked broadband revenue growth to its FWA offering.4
fifth) and Saudi Arabia (ranked 12th) were also The operator has launched specialised FWA
in the top 15 countries. 5G technology in these products for consumers and enterprises, including
markets benefit from a forward-looking policy an FWA package aimed at gamers.

Advanced 5G technologies gain traction

Operators in the GCC are increasingly shifting their Beyond the deployment of 5G SA networks,
focus to more advanced forms of 5G to unlock operators in the region are looking to leverage
new use cases and monetisation opportunities. 5G-Advanced and 5G RedCap technologies
In particular, operators have begun deploying 5G to deliver new solutions for enterprises.
networks based on the SA architecture, which 5G-Advanced, as part of 3GPP Release 18 in 2024,
offers several capabilities, including network is the next milestone in the 5G era and is set to
slicing – the flexibility of allocating network enhance mobility by enabling uplink and multicast
resources dynamically to specific service-level at better latency, increasing accuracy for extended
agreements. In MENA, as of June 2024, operators reality (XR) applications and improving the
in four countries (Bahrain, Kuwait, Saudi Arabia reliability of AI/machine-learning (ML) data-driven
and the UAE) had launched commercial 5G SA designs. Insights from the GSMA Intelligence
networks, while operators in four other countries Network Transformation Survey 2023 show that
(Israel, Oman, Qatar and Türkiye) had announced 5G multicast and low-cost IoT top the list of
plans to do so. 5G-Advanced use cases for operators (Figure 12).

2. The State of 5G 2024, GSMA Intelligence, 2024

3. “Ericsson ConsumerLab Report reveals households in KSA highly prefer 5G Fixed Wireless Access”, Ericsson, March 2024
4. “Du to bolster FWA 5G play to challenge rival”, Developing Telecoms, February 2024

Mobile industry trends 22 / 43

 Figure 12
Rank 1
5G-Advanced: priority use cases
Rank 2
Which 5G-Advanced use cases and applications are most important
to your network transformation priorities? (Top two choices)
Percentage of operators (globally)

5G multicast services 52% 29%

Low-cost IoT support 23% 45%

Enhanced integration with

satellite resources 20% 18%

Enhanced integration
with drone resources 4% 4%

Improved device
positioning accuracy 1% 2%

Improved AR/VR support 2%

Source: GSMA Intelligence Operators in Focus: Network Transformation Survey 2023

Meanwhile, 3GPP Release 17 introduced the 5G RedCap is an important enabler for mid-tier
RedCap user equipment category for energy- and cellular IoT applications; it serves as a platform
cost-efficient 5G IoT connectivity (also known for the successful migration of IoT applications
as 5G NR-Light). In comparison to 5G enhanced to 5G networks in order to take advantage of
mobile broadband (eMBB) devices that can the benefits of 5G beyond just speed. A range
deliver gigabits per second throughput in both the of use cases will benefit from RedCap, notably
downlink and uplink, RedCap devices efficiently wearables, video monitoring and telematics. For
support 150 Mbps and 50 Mbps in the downlink example, most wearables support medium data
and uplink, respectively. The reduced complexity rates in small form factors with relatively low
of RedCap devices contributes to cost efficiency, power consumption, which is not achievable with
a smaller device footprint and longer battery life eMBB or massive machine-type communications
due to lower power consumption. (mMTC). Also, many video applications for
surveillance don’t require eMBB’s high data
rates and so can benefit from the lower power
consumption achievable with 5G RedCap.

5G RedCap is an important
enabler for mid-tier
cellular IoT applications,
serving as a platform for
the successful migration
of IoT applications to 5G
networks in order to take
advantage of the benefits
of 5G beyond just speed

Mobile industry trends 23 / 43

Below are some examples of operator activities • In May 2024, Zain Saudi Arabia disclosed that
around 5G-Advanced and RedCap in the MENA it was investing SAR1.6 billion ($425 million)
region: to expand its 5G network and digital services
ecosystem, with around 45% of the new
• In September 2024, Du and Huawei announced
expansion expected to support 5G-Advanced
the deployment of an indoor 5G-Advanced
technologies.
network in the UAE to improve connectivity in
indoor spaces such as shopping malls, hotels, • In March 2024, STC Kuwait announced the
airports and residential buildings. commercial deployment of RedCap FWA in
collaboration with Huawei.
• In July 2024, STC and Ericsson announced the
implementation of automated radio resource • In December 2023, Du and Nokia conducted
partitioning on a 5G SA network slice, setting a RedCap trial over the operator’s commercial
the stage for the operator to transition to a network.
high-performing, programmable 5G-Advanced
The growing focus on 5G-Advanced and
network.
5G RedCap has spurred a new round of 5G
• In July 2024, e& conducted an end-to-end investments in 2024 and laid the foundation for
verification of Ericsson’s RedCap software the next wave of 5G use cases that could unlock
solution on its 5G SA network. The operator new revenue streams for operators and the wider
plans to scale the RedCap implementation across ecosystem in both the consumer and enterprise
its commercial network in the UAE, in line with segments. More than half of respondents in
the evolution towards 5G-Advanced. the GSMA Intelligence Network Transformation
Survey 2023 indicated that they plan to deploy
• In June 2024, Vodafone Qatar achieved speeds
commercial 5G-Advanced solutions and services
of over 10 Gbps with 6 GHz spectrum as part of
within one year of the release of the 5G-Advanced
its phase-two trial on 5G-Advanced technologies.
standards.
The trial showcased 5G-Advanced capabilities on
the 6 GHz upper mid-band spectrum.

Mobile industry trends 24 / 43

5G development is still nascent in parts of MENA
The 5G landscape in MENA presents a mixed • In October 2024, Egypt’s National
picture. Despite widespread 5G deployment Telecommunications Regulatory Authority
and adoption in the GCC and other pioneering signed agreements for the second phase
countries, the majority of countries in the of 5G licensing with Vodafone, Orange and
region are on the other end of the 5G e&. This followed the award of a 5G licence
deployment spectrum. These include countries to Telecom Egypt in the first phase of the
in North Africa and the Levant (with the process during January 2024.
exception of Jordan). There are many reasons
• In September 2024, Tunisia’s three main
for the slow pace of 5G development in these
telecoms operators – Tunisie Telecom,
countries, including the lack of 5G spectrum
Orange and Ooredoo – submitted bids for a
and technology-neutral spectrum licensing
5G licence to the Ministry of Communication
(to allow the refarming of existing spectrum
Technologies in response to a tender issued
holdings), low levels of market readiness
in June 2024.
for 5G and a number of macro challenges,
including insecurity and international conflicts, • In September 2024, Türkiye received its
in several countries. first signal from a domestically produced
5G portable private network, marking
Given that 5G is a capital-intensive technology,
a milestone in the country's ambition
it is essential for policymakers, operators and
to establish a fully independent 5G
other ecosystem players to put in place the
infrastructure. The government plans to hold
necessary building blocks for the efficient
a 5G licence auction in 2025, with the first
deployment of 5G networks and a sustainable
commercial service expected in January
business case ahead of commercial rollout.
2026.
This includes ensuring the availability of
adequate 5G spectrum and upgrading existing • In January 2024, the telecoms regulator in
networks to prepare for future 5G rollout. Libya started looking into a roadmap for
Recent developments in some countries licensing of 5G services. Several scenarios
highlight that progress is being made: are being considered, including awarding
licences to existing state-owned operators
only or to new players as well.

Mobile industry trends 25 / 43

2.2
Open Gateway: capturing the opportunities
ahead
While it has long been possible to expose network interoperable and federated framework. The APIs
APIs, operators have struggled to adopt a are defined, developed and published in CAMARA,
standardised approach that unlocks innovation the open-source project for developers to access
at a global scale. This is the driving force behind enhanced network capabilities, driven by the Linux
the GSMA Open Gateway, which helps developers Foundation in collaboration with the GSMA.
and cloud providers enhance and deploy services
The GSMA Open Gateway comprises a library of 17
more quickly via single points of access to operator
APIs. These are split into different families based
networks.
on the use case being addressed. The APIs have
The GSMA Open Gateway is achieved via common, the potential to facilitate numerous use cases,
northbound service APIs that expose mobile including tackling digital fraud, simplifying user
operators’ network capabilities within a consistent, authentication and addressing QoS issues.

Open Gateway gains traction

By the end of June 2024, 53 operator groups As in other regions, early GSMA Open Gateway
had signed up to the GSMA Open Gateway, launches in MENA have focused on fraud
representing 240 mobile networks and accounting prevention and security, using APIs such as
for 67% of mobile connections globally. Between Device Status, One Time Password SMS and SIM
the participating operators all regions are covered, Swap. These can represent quick wins, given the
with Du, e&, Omantel, STC and Zain among the ever-present risks from fraudsters and breaches
operators in MENA to sign up to the initiative. for operators and their customers. Other parts
of the API library (e.g. Quality on Demand) will
The geographic breakdown of operator
be deployed in the coming years as operators
commitments indicates whether a particular
expand their rollouts of 5G SA and other enabling
region is above or below their established market
technologies.
share. Europe, for example, is the leading region,
with committed operators representing a quarter
of GSMA Open Gateway commitments despite
accounting for only 10% of mobile connections.
The share of operators in MENA committed to the Early GSMA Open
GSMA Open Gateway is slightly below MENA’s
mobile market share of 8%, despite the region
Gateway launches in
being a vibrant digital services marketplace. MENA have focused
Further commitments are likely over the next on fraud prevention
12 months, meaning that take-up should rise in
regions that remain underpenetrated relative to and security, using
expectations. APIs such as Device
Status, One Time
Password SMS and
SIM Swap

Mobile industry trends 26 / 43

Figure 13
Commercially launched GSMA Open Gateway APIs in MENA

API name Description Example use cases

Device Status Checks the connectivity status Fraud prevention in banking;

of user equipment. In its current regulatory compliance; service
version, this API only checks the delivery (e.g. a content provider
roaming status of a device may need to enforce territory
restrictions of their content)

One Time Delivers a short-lived one-time Account management (e.g.

Password SMS password to a mobile phone password reset); high-value
number via SMS transactions and onboarding for
digital services (e.g. banking, social
media)

SIM Swap Obtains information on any recent Fraud prevention in banking; fraud
SIM pairing change related to the prevention for password reset
user’s account

Figure 14 China
Regional breakdown of operator participation in Europe
the GSMA Open Gateway South and Southeast Asia
Latin America
Percentage of operators
<1% Sub-Saharan Africa
MENA
4% North America
5% Northeast Asia (excluding China)
5% Oceania

31%
5%

7%

18%

24%

Mobile industry trends 27 / 43

Visible markers of progress will be key to sustaining momentum
In the next 12 months there will likely be more In addition to strategies focused on direct
operator commitments and market launches in engagement with developers, many operators
MENA. Operators are also likely to increase their will also likely collaborate with channel partners
focus on the developer experience, dedicating (companies that connect multiple operators to
internal resources to work directly with developers multiple developers) to reach a broader base
to grow API usage and capitalise on monetisation of developers. Hyperscalers, communications
opportunities. e& is one operator with experience platform-as-a-service suppliers and network
in this area, having worked with API aggregators infrastructure vendors are all vying to play this role
to support local hackathons aimed at fostering in the GSMA Open Gateway ecosystem. As the
innovation and enhancing the technical skills of number of partnerships between operators and
young people in the region. 5 The operator has also channel partners grows, it will be important for
launched a developer portal that provides free these collaborations to yield concrete examples of
access to a suite of APIs in service management, how federation and agreement on common APIs
customer management, product catalogue, billing can create new monetisation opportunities in order
and network exposure.6 to sustain the momentum behind network APIs.

2.3
Satellite: momentum builds behind aerial
connectivity
Telecoms networks remain the primary form of deliver connectivity in maritime, remote and polar
connectivity, supported by the wide area coverage areas, where deploying conventional terrestrial
of wireless networks and the mass production networks could be costly and challenging.
and adoption of mobile devices. In recent years,
The 3GPP has laid the foundation for satellite-
however, technological advances in various
based connectivity through standardisation to
satellite and other NTNs, such as unmanned aerial
extend the reach of 5G to regions lacking terrestrial
vehicles (UAVs), have helped to overcome several
infrastructure. Four broad use cases have been
limitations associated with aerial connectivity.
identified:
This has resulted in significant performance
improvements, lower deployment costs and more • Service continuity: For coverage where it is
commercially viable business models for satellite not feasible with terrestrial networks, such as
and NTN-based connectivity solutions. maritime or remote areas.
LEO satellite and HAPS providers have attracted • Service ubiquity: For mission-critical
much attention on the back of significant communications, such as for disaster relief during
investments and technical breakthroughs outage of terrestrial networks.
that improve the business case for delivering
connectivity at scale. A key selling point for aerial • Service scalability: For offloading traffic from
connectivity solutions is the potential to provide terrestrial networks to NTNs for better system
ubiquitous coverage all over the globe. Telecoms efficiency.
networks now cover more than 95% of the world's • Backhaul services: For transport for sites with
population but less than 45% of the world's weak or no backhaul capacity.
landmass. Satellites and NTNs are well suited to

5. “FutureNow Hackathon With Manipal University, e& enterprise, and Vonage”, Vonage, November 2022
6. “e& UAE adopts TM Forum and-Camara based Open APIs”, e&, June 2024

Mobile industry trends 28 / 43

A new era of telco-satellite partnerships in MENA
The deserts and mountain ranges in several • In October 2023, STC signed an agreement
countries in MENA mean that aerial connectivity with Tonomus, Neom’s digital infrastructure
will play an important role in realising universal subsidiary, for access to LEO satellite capacity.
connectivity, especially for communities in remote The collaboration will enable the provision of
and sparsely populated areas. As a result, there high-speed internet access to residents of rural
has historically been significant interest in aerial and remote areas across Saudi Arabia.
solutions and the opportunity they offer to help
• In August 2023, Zain Saudi Arabia signed an
extend connectivity to hard-to-reach locations. The
MoU with AST SpaceMobile to collaborate on
UAE has been at the forefront of the development
new telco-satellite solutions and digital services
of homegrown satellite communications companies
in Saudi Arabia, with the goal of increasing
in the region, notably Thuraya, which was acquired
access to mobile services in remote locations,
by another Emirati satellite company, Yahsat, in
including on land, at sea and in flight.
2018. In 2020, Ooredoo partnered with Es’hailSat
to deliver Inmarsat L-band satellite voice and data The resurgence of D2D solutions follows technical
services to enhance business communications breakthroughs that have enabled satellites to
across Qatar and beyond. connect to standard smartphones for SMS, voice
and data services. For operators, D2D services
The emergence of LEO and HAPS solutions have
offer access to new customers in underserved
heightened the interest in satellites and NTNs, and
areas and the capability to provide connectivity
ushered in a new era of collaboration between
in remote areas. For satellite providers, operators’
telecoms and satellite operators for solutions
existing relationships with end users and, where
spanning several use cases, including remote
relevant, existing spectrum holdings are crucial
area connectivity, disaster response and maritime
for satellite solutions to achieve scale. GSMA
services. Some examples of partnerships and other
Intelligence estimates a total incremental revenue
recent activities are highlighted below.
opportunity from D2D services of over $30 billion
• In March 2024, e& signed a memorandum of for telecoms operators by 2035.
understanding (MoU) with satellite operator
It is worth noting that the availability of compatible
Yahsat for its direct-to-device (D2D) solution
devices will contribute to the take-up of end-user
that enables satellite connections for standard
satellite-enabled services, such as messaging
smartphones. Both companies will collaborate
and voice calling in emergency situations or
on initiatives around Yahsat’s D2D ecosystem,
areas without access to terrestrial networks.
dubbed Project Sky, which is designed to provide
Unsurprisingly, major OEMs have stepped up
voice, SMS and data solutions for smartphones
investments and innovation into solutions to enable
and IoT devices.
NTN-based connectivity. For example, in June
• In January 2024, Du announced a partnership 2024, Apple disclosed that it was expanding the
with satellite operator Intelsat to provide capabilities of satellite messaging on the iPhone
coverage around the UAE. Du will combine its 14 and subsequent models by broadening the
mobile backhaul solution with Intelsat’s IS-39 availability of the service beyond emergency
geostationary satellite to extend services to messaging and making messages via satellite an
remote areas. In January 2023, Du also used option when cellular and Wi-Fi connections are not
SES’s satellite to conduct a proof-of-concept for available. In February 2024, Qualcomm announced
satellite-enabled 5G backhaul. the introduction of the Snapdragon X80 5G
modem, which would enhance the connectivity of
smartphones and other devices to 5G and satellite
networks.

Mobile industry trends 29 / 43

2.4
Generative AI: growing momentum in
investment and use cases
Operators are increasingly embracing genAI across well as for networks. In the MENA region, genAI
various operational and business areas, driving adoption is gaining significant momentum, fuelled
both internal transformation and new business by major investments, strategic partnerships and
opportunities. In the mobile industry, genAI is cross-industry applications.
largely used to improve customer services as

A focus on data-driven decision-making

Operators are utilising AI to analyse vast amounts • STC’s 'Scan & Go SIM’: STC introduced a self-
of data to enable better decision-making. By using activation ‘Scan & Go SIM’, which uses Al facial
insights from user behaviour, network performance recognition. Customers can buy and activate
and market trends, operators are optimising their the SIM within one minute via the My STC BH
services and resources more effectively. GenAI app, without visiting a branch. The service offers
solutions are being leveraged to improve customer flexible prepaid and postpaid plans.
service through chatbots, virtual assistants and
• e& expands Al capabilities: e& has expanded
personalised marketing strategies. Furthermore,
its collaboration with Oracle to enhance AI
operators are using genAI to predict network
capabilities. The operator will deploy Nvidia
issues, automate maintenance and enhance overall
H100 graphics processing unit (GPU) clusters
network performance.
within its Oracle Cloud Infrastructure (OCI)
The rise of genAI is supported by strategic Dedicated Region, hosted at Etisalat by e&
partnerships aimed at enhancing infrastructure data centres. It aims to facilitate the localisation
and developing diverse AI-driven use cases. and development of new Al services for its
Many telecoms operators in the MENA region product portfolio and business operations. The
are partnering with technology firms to access accelerated computing capabilities by Nvidia
advanced AI capabilities. Collaborations with GPUs, combined with OCI’s Al infrastructure
companies such as Microsoft and IBM are helping featuring bare metal and remote direct memory
operators integrate AI into their operations, access (RDMA) cluster networking, will provide
fuelling innovation. These partnerships are e& with a diverse array of options for business
enhancing operators’ AI capabilities, laying the services and AI training.
foundation for new business models and revenue
• Turkcell’s collaboration on Al research: Turkcell
streams. Some recent examples include the
and Huawei have signed three agreements on
following:
5G-Advanced, green energies and AI-based
networks. The companies will conduct research
on 5G-Advanced technologies, including ambient
IoT and RedCap, and will collaborate on the
development of 5G-Advanced networks. Further,
they will also start a joint innovation project
to implement Al-based, user-centric and self-
optimising networks.

Mobile industry trends 30 / 43

Investments in data centres
In addition to operational innovations, there are Despite the growing momentum for genAI,
increasing investments in data centres to support challenges remain, such as the shortage of skilled
genAI adoption across industries, especially in AI professionals. To support AI adoption and skills
the GCC countries. For example, in 2024, e& for the telecoms sector, the GSMA and IBM have
expanded its SmartHub data centre network to together launched the GSMA Advance AI Training
Abu Dhabi, which plays a crucial role in the region’s programme and the GSMA Foundry Generative
AI ecosystem by providing advanced services that AI challenge and programme, furthering genAI
facilitate AI research and development. Its Kalba progress across the telecoms industry.
data centre anchors the 2Africa cable landing,
significantly enhancing connectivity and data
transfer speeds essential for AI advancements.
Similarly, in 2023, Du unveiled a new data centre
to elevate Emirates NBD's IT infrastructure. This
facility plays a critical role in supporting AI-driven
financial services, enhancing data security and
enabling sophisticated AI applications in the
banking sector.

Mobile industry trends 31 / 43

2.5
Mobile financial services: supporting
humanitarian assistance
Over the past decade, mobile money has • In Sudan, mobile wallets such as MyCash and
expanded from a niche offering in selected RittalPay, which don't require formal bank
markets to a mainstream financial service, bringing accounts, are more accessible to the unbanked
millions of households into a more inclusive population during crises.9 Additionally, Zain
digital economy. Where mobile penetration is Sudan and MTN have played a key role in
high enough, mobile money and broader digital supporting humanitarian efforts by offering
financial services can facilitate financial inclusion mobile money services. Their platforms have
and the financial well-being of people in need of allowed rapid and secure cash-based aid
humanitarian assistance during crises. According distribution to displaced people, even in remote
to a GSMA survey on mobile money, nearly one conflict-affected areas.
third of operators partnered with humanitarian
• In Palestine, Jawwal Pay provides accessible
organisations in 2023 to offer essential services.7
and reliable e-payment services across Gaza
In the MENA region, mobile operators are at the and the West Bank. In 2024, the United Nations
forefront of facilitating humanitarian relief through Development Programme partnered with Jawwal
both connectivity and mobile financial services, Pay and PalPay to implement innovative digital
such as mobile wallets and mobile money. In areas payment systems aimed at delivering fast,
affected by conflict, displacement and economic transparent and secure financial transactions for
instability, where traditional financial systems are both banked and unbanked citizens, especially
often disrupted, mobile connectivity becomes during emergency situations in Gaza. Moreover,
a lifeline, enabling people to access vital digital Jawwal and Ooredoo expanded their mobile
financial services to avail aid. 8 networks and mobile money services in the
West Bank and Gaza. The expansion allowed aid
Mobile wallets provide a secure, efficient and
agencies to transfer funds directly to affected
transparent way to distribute humanitarian
families during periods of conflict. These
assistance. Through mobile networks, aid agencies
mobile wallets enabled families to buy food and
and governments can send emergency cash
medicine in a region where banking services are
transfers directly to refugees, internally displaced
often disrupted.
people and marginalised communities. These funds
can be used for critical needs, including food, Mobile operators often collaborate with
shelter and healthcare, ensuring that vulnerable governments, non-governmental organisations
populations receive immediate support, such as and international organisations to expand their
the following: mobile money services. For example, operators in
Egypt, Jordan and Lebanon have partnered with
organisations such as the World Food Programme
and the Office of the United Nations High
Commissioner for Refugees to facilitate mobile-
based cash transfers for refugees and vulnerable
populations.

Operators are increasingly focused on enhancing

their services to drive financial inclusion and
resilience. In 2023, Ooredoo adopted Huawei’s
mobile money platform to enhance its mobile
money services across MENA. By offering mobile
money services alongside emergency relief efforts,
operators not only address immediate needs but
also promote long-term financial inclusion and
resilience for vulnerable populations.
7. The State of the Industry Report on Mobile Money, GSMA, 2024
8. Digital Financial Services in Humanitarian Settings, GSMA, 2023
9. “Digital money apps become a lifeline for war-affected Sudanese”, The New Humanitarian, February 2024

Mobile industry trends 32 / 43

03
Mobile industry
impact
3.1
Operators progress towards net-zero
emissions
Mobile network operators globally are increasing significant increase in the share of renewable
their commitments to achieving net-zero carbon electricity (up from 3% to 23%). This has led to a
emissions, addressing both direct and indirect drop of 25% in both Scope 2 emissions overall and
emissions across their value chains. Operators in Scope 1 and 2 emissions per connection, as per
in MENA have seen a slight decrease (2%) GSMA research.10
in electricity usage from 2021 to 2022 but a

Transition to renewables
The shift from fossil fuels to renewable energy For example, Orange has deployed three solar
sources is key for a zero-carbon business. farms in Jordan, supplying around 70% of the
Countries with few or no natural energy resources electricity needs of its subsidiary in the country.
are more exposed to global fluctuations in energy In Egypt, the operator has converted hundreds
prices, so local operators have every reason to of sites to work with hybrid energy by installing
be ambitious with renewables. Turkcell provides modern generators that reduce the use of diesel
a strong example, having already committed to while also working on charging high-efficiency
meeting its electricity demand from renewables lithium batteries. This means, the number of
by 2030. The operator announced plans in August conventional generators has decreased by
2023 to invest $240 million in green energy more than 55%. Other MENA operators are also
projects. exploring hybrid solutions. Zain recently became
the first operator in Bahrain to implement a
Many parts of the MENA region enjoy abundant
renewable power source at one its sites, using a
sunshine, making solar power a particularly
hybrid solution combining generators, batteries
promising option for network operators. They can
and solar panels. The solution reduces CO2
deploy solar panels at their sites, storing excess
emissions by more than 15%.
electricity in batteries, or build large-scale solar
farms.

Technology for energy savings

In addition to adopting renewable energy, • IoT energy platform: Orange has launched its
operators in MENA are increasingly leveraging IoT platform, Orange Smart Energies, for energy
AI/ML and IoT to drive energy savings, such as the suppliers in Africa and the Middle East. The
below examples: platform tracks payments, solar kits and smart
meters in rural areas to improve service uptake
• AI/ML for RAN energy savings: Umniah Jordan
and electricity access. Payments are processed
has partnered with Ericsson to deploy AI/ML
through Orange's mobile finance platform,
solutions to cut energy use in its network. The
Orange Money.
deployment comes after a successful proof-of-
concept, where Ericsson's intelligent RAN power-
saving solution demonstrated a roughly 20%
reduction in energy use on 5G daily power-saving
capabilities. The solution uses ML to analyse
real-time data, making intelligent decisions
to optimise energy use, which lowers carbon
emissions and operating costs.

10. Mobile Net Zero: State of the Industry on Climate Action 2023, GSMA, 2023

Mobile industry impact 34 / 43

3.2
The mobile industry’s impact on the SDGs
The mobile industry continues to achieve its impact the most improved SDGs in the MENA region. The
on the Sustainable Development Goals (SDGs), increasing migration to mobile broadband services
driven by the increased reach of mobile networks is supporting the mobile industry’s contribution to
and growing adoption of mobile internet services. the SDGs.
SDG 1: No Poverty, SDG 4: Quality Education and
SDG 16: Peace, Justice and Strong Institutions are

Figure 13
Mobile's impact on the SDGs in MENA

Most improved SDGs

Source: GSMA Intelligence

Mobile industry impact 35 / 43

Driving growth of SMEs and digital inclusion
Mobile technologies have played a key role in These features will boost commercial operations,
advancing SDG 1: No Poverty, having reached enhance efficiency and improve customer
2.1 billion of the world's poorest people. Among experience for SMEs.
these, nearly half are now connected to mobile
• Orange offers technology access: In early 2024,
internet – an increase of 770 million since 2015.11
Orange Middle East and Africa (OMEA) signed
As a general-purpose technology, mobile drives
an agreement with Microsoft to support 15,000
sustainable economic growth, boosts productivity
SMEs across 17 countries, with a long-term goal
and enhances efficiency across the wider
of reaching 1 million over time. The initiative will
economy. It supports small and medium-sized
provide SMEs, including micro-businesses and
enterprises (SMEs) by enabling them to reach new
those in the education sector, with access to
markets beyond their local areas, creating jobs and
tools and support to accelerate digital adoption.
contributing to local economic development. In
The initiative focuses on three areas. First,
the MENA region, mobile operators are fostering
Orange’s distribution network in the Middle East
SME growth through partnerships that provide
and Africa region will provide SMEs with easy
access to essential technologies and digital tools.
access to Microsoft solutions such as Microsoft
Examples of key initiatives include the following:
365, Copilot, Azure and Dynamics 365. Second,
• e& supports SMEs: In June 2024, The Abu Dhabi Orange and Microsoft will collaborate on training,
Chamber of Commerce and Industry signed a marketing and sales support programmes to
deal with e&, aimed at boosting cooperation to enable SMEs to adopt and benefit from Microsoft
back SMEs in Abu Dhabi. The partnership aims to Modern Work solutions. Finally, the two will
enhance the business community by deploying establish a joint steering committee to ensure
advanced communication solutions and digital the successful execution of the partnership, with
services. The Chamber will leverage e& UAE’s progress monitored through key performance
expertise in digital technologies to facilitate indicators.
digital transformation processes for SMEs in
Abu Dhabi, while e& will provide customised
solutions in cloud computing, digital marketing,
cybersecurity and innovative payment solutions.

11. 2024 Mobile Industry Impact Report: Sustainable Development Goals, GSMA

Mobile industry impact 36 / 43

Building inclusive societies through awareness and education
Mobile operators are also contributing to SDG • STC empowers older people to safely navigate
4: Quality Education and SDG 16: Peace, Justice the digital world: To address the growing
and Strong Institutions by promoting inclusivity digital literacy gap between older and younger
and providing access to quality education. SDG 4 generations, STC launched the SmartTruck
aims to ensure equitable education and lifelong initiative in Saudi Arabia in 2023 – a mobile
learning opportunities for all, while SDG 16 focuses digital classroom equipped with advanced
on access to information and stronger institutions. ICT tools. The smart truck travels across Saudi
By leveraging connectivity and digital solutions, Arabia to target remote areas and deliver
mobile operators are enhancing educational digital education directly to those in need. The
access and fostering stronger, more informed initiative offers awareness sessions for six key
communities. Some recent operator-led initiatives government applications, including health apps,
are listed below: helping attendees navigate these platforms and
complete online tasks with ease. The programme
• e& promotes inclusivity for visually impaired
also educates participants about potential risks
individuals: e&’s Basira project, in collaboration
in the digital world and equips them with the
with Dialogue in The Dark, was developed to
knowledge to mitigate these risks. The initiative
raise awareness and promote inclusivity for
has benefited over 4,150 adults, providing them
individuals with visual impairments, both within
with essential digital literacy skills.
the company and the wider community. The
project aimed to foster empathy and combat • Zain Omantel International joins One
discrimination, particularly among school-aged Consortium to combat fraud: Zain Omantel
children, through an immersive experience. International (ZOI) joined forces with One
Participants were guided through everyday Consortium, a not-for-profit organisation
tasks in complete darkness for an hour, allowing dedicated to combatting illegal and unwanted
them to experience the world as visually international voice calls and messages. Working
impaired individuals do. This was designed to alongside global telecoms operators and
build understanding and inspire employees to regulators, One Consortium aims to tackle
integrate accessibility into their work. the growing issue of telecoms fraud, which
poses significant risks to both consumers and
businesses. According to the Hiya Global Call
Threat Report, 7.3 billion suspected spam
calls were recorded in Q4 2023, an alarming
increase from 6.55 billion in Q3 2023. As a voting
member of One Consortium, ZOI will contribute
By leveraging to working groups on key issues such as fraud
detection, regulatory policy, messaging fraud,
connectivity and international traceback and caller ID spoofing.
digital solutions,
mobile operators are
enhancing educational
access and fostering
stronger, more
informed communities

Mobile industry impact 37 / 43

04
Mobile industry
enablers
The mobile industry in MENA has shown resilience connectivity, despite slowing revenue growth rates
in the face of myriad macroeconomic challenges, and tightening margins. This scenario of slowing
such as hyperinflation and international conflicts. revenue growth and rising costs undermines the
At the same time, operators have remained long-term financial sustainability of the mobile
committed to investing in high-performance industry in the region. In this context, policymakers
networks, including 5G, to support the in the region have a role to play to sustain the
digitalisation agenda of governments in the region continued advancement of the mobile industry.
and meet the growing demand for enhanced

4.1
Measures to ensure industry sustainability
The challenges faced by the mobile industry are pertinent issues that require urgent attention from
multi-faceted. While there is no one-sized-fits-all policymakers in the region, some of which are
approach to tackling these challenges, there are highlighted below.

Investment gap
Across MENA, the rollout of 5G is driving an to meet ambitious national and regional digital
increase in data traffic. However, the ability policy targets. European authorities are currently
of operators to expand network capacity gauging the ‘fair share’ proposal to help close
and coverage is often hindered by regulatory the investment gap. Meanwhile, in South Korea,
constraints, market structures and excessive tax regulatory pressure has led to commercial
burdens. This has created an ‘investment gap’, agreements on contributions to network costs
whereby market conditions for private investment between a large traffic generator and a telecoms
in telecoms networks are not favourable enough operator.

Taxation
Faced with fiscal challenges, some governments The mobile sector is committed to paying taxes
in MENA have mobilised resources locally through in the countries where it operates to support the
increased taxation to meet their development government's development objectives. However,
objectives. As a result, the sector is taxed the industry calls for more structured taxation
disproportionately higher than others, despite regimes that do not impact the affordability
its positive externalities across various sectors. of services to consumers and investment in
These include increased value from agricultural the industry. To this end, policymakers should
resources, improved access to global value chains, eliminate or decrease industry-specific excise
enhancements to education and healthcare taxes applied to mobile services, and remove
provision, reductions in transaction costs for sector-specific taxes/fees on mobile operators,
economic and public service activities, improved particularly those imposed on operators’ revenues
efficiency of government services, transparency irrespective of profitability, to ensure fair treatment
and good governance. Additionally, sector-specific of the sector and encourage investment in mobile
taxes increase the cost of broadband access and infrastructure.
usage, making digital devices and services less
accessible, lowering economic growth.

Mobile industry enablers 39 / 43

QoS regulations
QoS is increasingly important in mobile Meanwhile, QoS is the result of a complex and
communications, with consumer digital services multidimensional reality that places significant
now fundamental for many facets of life and direct responsibility on governments, the mobile
access to the latest digital solutions a key ecosystem (mobile operators, device makers and
competitiveness driver for businesses. There digital platforms) and consumers. This highlights
is a broad stakeholder interest (including from the need to move towards a collaborative
governments and policymakers, industry players framework across these agents that delivers real
and consumer groups) in maintaining high levels of QoS progress – one that protects the interest
mobile QoS. However, a recent GSMA Intelligence of consumers, promotes fair competition and
study on QoS in Asia Pacific found that where QoS choice and encourages investments in network
obligations are introduced, they generally have no infrastructure and services. Alternative approaches
discernible effects on QoS. If anything, they can such as consumer-focused regulations and co-
impose significant compliance costs on mobile regulations can often offer a better balance by
operators and heighten the risk of unintended delivering on policy objectives while minimising
consequences, for example that resources compliance costs.
destined to invest in coverage are reallocated to
meet QoS requirements.

Infrastructure sharing
With the adoption of 5G, mobile data traffic is The Recommendation indicates that there is
expected to grow threefold in MENA between a potential saving of up to 30% with passive
2023 and 2030. Operators will have to increase infrastructure sharing and up to 50–60% for active
their number of sites, particularly in urban areas, infrastructure sharing.
to cope with rising data demand. Moreover, the
The network investment required to roll out 5G is
growing popularity of 5G FWA in countries such
driving operators to reconsider their approaches
as Oman and Saudi Arabia adds further impetus to
to mobile tower ownership. In recent years
densifying mobile networks. Even in areas where
there has been a wave of activity among mobile
network densification is not required, existing
operators, tower companies and investment funds.
sites must be upgraded to cope with rising data
For operators, tower divestments boost liquidity
traffic levels. For example, massive multiple-input
and free up cash to invest in other parts of the
multiple-output (MIMO) antennas will be needed to
business. Recognising this opportunity, there is a
optimise 5G capacity and throughput.
need for policymakers to encourage and expedite
One policy measure that has helped to reduce approvals for voluntary infrastructure sharing
the prices of telecoms services is the sharing of to ease the burden of network expansion and
infrastructure. Recommendation ITU-T D.264 maintenance costs on operators.
proposes a set of possible methods to help
telecommunications providers save costs and
enhance efficiency through the shared use of
the telecommunications infrastructure, including
passive and active infrastructure sharing.

Mobile industry enablers 40 / 43

4.2
Policies for growth: importance of
harmonised mobile spectrum
The importance of harmonised mobile spectrum
Spectrum harmonisation continues to play a The identification brings together billions of
key role in the success of mobile networks. As people into a harmonised 6 GHz mobile footprint.
spectrum is a scarce resource, ensuring the timely It also serves as a critical developmental trigger for
availability of prime bands should be a priority. manufacturers of the 6 GHz equipment ecosystem.
2 GHz of mid-band spectrum (1–7 GHz) will be
Discussions regarding the future of 6 GHz should
required per market, on average, by 2030 to
focus on maximising its value and balancing
ensure the 5G requirements of speed and quality
different uses. The outlook for the 6 GHz IMT
of mobile. Mid-bands deliver citywide capacity,
ecosystem is robust and there are also no technical
and sufficient capacity is important for minimising
barriers to developing and commercialising IMT
network densification, keeping down both
solutions. Trials by mobile operators around the
costs and carbon emissions. The 3.5 GHz band
world are underscoring this.
represents the birthplace of 5G. Reusing 4G bands
and extending the 3.5 GHz range are important More low-band spectrum (below 1 GHz), which
steps as countries look to expand mid-band supports coverage in wide and rural areas, will also
capacity, but adding new bands (such as the 6 GHz play an important role for future expansion and
band) is also important. can help 5G deliver digital equality. Adding
600 MHz to the low-band portfolio can bring
Decisions achieved at WRC-23 will have a major
further economic growth to remote locations
impact on the future of mid-band spectrum.
and drive higher speeds in rural areas, lowering
Final harmonisation of the 3.5 GHz band (3.3–3.8
the divide between urban and rural areas. Some
GHz) – the pioneer 5G band – was achieved
pioneering countries have started the development
across Europe, EMEA and the Americas. This
of 600 MHz, and following WRC-23 there is an
step will allow more countries to take advantage
opportunity for the MENA region to lead this
of economies of scale in the mobile ecosystem
development.
and benefit from higher speeds provided by wide
spectrum channels in this range. By 2030, an average of 5 GHz of high-band
spectrum (mmWave) per market will also be
WRC-23 also identified 6 GHz (6.425–7.125 GHz)
needed to satisfy demand for different 5G use
for mobile use by countries in every region –
cases, including enhanced mobile broadband
EMEA, CIS, the Americas and Asia Pacific – and
eMBB, FWA and enterprise networks.
global, harmonised conditions for its use have
been agreed in the ITU’s Radio Regulations.

More low-band spectrum

(below 1 GHz), which
supports coverage in
wide and rural areas,
will play an important
role for future expansion
and can help 5G deliver
digital equality

Mobile industry enablers 41 / 43

Spectrum licensing priorities
Spectrum licensing is important for mobile For licences approaching the end of their current
broadband development. The longer the duration terms, timely renewal decisions (ideally three to
of a licence, the greater the certainty provided to five years in advance of licence expiry) would
operators and investors to commit to large long- help facilitate ongoing network investments and
term network projects. Putting a presumption of enable planning that ensures service continuity for
licence renewal in place, or using indefinite licence end users. Any subsequent fees associated with
terms, also helps avoid investments being delayed licensing renewals should not prevent reasonable
due to uncertainty about the future. A decision returns being earned on risky investments, as this
not to automatically renew a licence should only discourages technological innovation.
be made where there is a reasonable prospect
that the benefits from reassigning spectrum would
exceed the costs.

Fair spectrum prices

Recent studies have demonstrated that higher To accelerate 5G network investment, short-term
spectrum prices can slow the rollout of next- monetary gains from spectrum awards should no
generation mobile networks and reduce the longer be a measure of success. Policymakers may
network quality experienced by consumers. They want to consider shifts in award designs to reflect
can also be associated with higher retail prices in wider economic goals, such as assigning spectrum
developing countries. Best practice in this area with no upfront fees in return for coverage (as has
shows that regulators should aim to: been the case in Tunisia, Jordan, Qatar and the
UAE).
• assign spectrum to users who will be able to
extract the most value from this scarce and finite
resource for the benefit of society as a whole

• set reserve prices conservatively to allow the

market to determine a fair price and to reduce
the risk of leaving spectrum unassigned

• limit ongoing charges to recovering the cost of

spectrum management, following auctions.

Technology-neutral spectrum licences

A technology-neutral spectrum licensing technologies simultaneously, including 4G and
approach enables the efficient use of spectrum 5G. This facilitates the introduction of newer
by mobile operators, as then it is not tied to technologies in line with increasing mobile
existing technologies and services. An important broadband demand while also supporting legacy
development has been the ability to ‘gracefully users. For regulators, this means fewer concerns
refarm’ bands so that they are used for several that refarming will leave legacy users unserved.

Mobile industry enablers 42 / 43

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