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Jordan’s mobile operators target specific industry verticals to derive growth amidst the threat of saturation

Strategic Highlights
Published: 2016-05-05

Amidst the negative effect of market saturation and high operational cost, we observed that Jordan’s mobile operators targeted specific industry verticals to address revenue growth, in particular focusing on the large sectors such as real estate and the government.

The public sector is one of the largest employers in the country with more than 200 000 civil servants (excluding the military) as of 2015 and securing even a portion of this pool is expected to help significantly in revenue generation.

Umniah, for instance, secured a major government contract in March 2014 to supply mobile services to all government sectors including ministries, universities, associations, committees and their employees (note: the exact number of mobile subscriptions is not declared by our sources).

Other mobile operators focused and won deals from real estate, with Zain partnering with the Galleria Mall and Irbid City Centre to be their exclusive telecom partner (i.e. not only mobile but other telecom services too) for all the shops and premises of these properties.

It also won a government tender in April 2015 involving the installation of mobile tracking systems to 25 000 government vehicles.

Altogether, we believe these partnerships help mobile operators establish a more stable source of revenue for a longer period of time, as exclusive partnerships or government contracts usually last for several years.

Published: 2016-05-05

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