Iran Telecom Market Review & Investment Opportunity Table of Contents
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نشريه تخصصي كانون تفكر مخابرات ايران سال يازدهم، شماره 52 خرداد و تير 1395 Iran Telecom Market Review & Investment Opportunity Table of Contents Foreword ..............................................................................................................................2 IRAN AT A GLANCE ...........................................................................................................4 IRAN Economy ....................................................................................................................5 Iranian Telecom sector: History, Governance and Regulation .............................8 IRAN Mobile Market Review...........................................................................................11 Fixed Broadband Market in Iran ................................................................................... 15 IRAN FIXED MARKET DATA SHEET ........................................................................... 18 IRAN MOBILE MARKET DATA SHEET ........................................................................ 21 Revolution of Iranian Startups ....................................................................................22 MVNO Licensing in IRAN .............................................................................................. 24 Virtual Operators and Real Opportunities ............................................................. 24 Opportunities in Iranian Telecom Market ...............................................................26 How to do business in Iran successfully .................................................................28 IRAN IoT Forum: Enabling the Internet of Things in Iran .................................... 32 FANAP: Biggest ICT Holding In Iran ......................................................................... 33 Arya Hamrah Samaneh ................................................................................................ 34 Pars Online: Pioneer in Telecom Services ............................................................. 36 Zoha Kish Telecom ..........................................................................................................37 Teyf Research & Consulting Group .......................................................................... 38 نشريه تخصصي كانون تفكر مخابرات ايران سال يازدهم، شماره 52 خرداد و تير 1395 ماهنامه خبری تحلیلی سال یازدهم، شماره 52 خرداد و تير 1395 Iran Telecom Market Review & Investment Opportunity صاحب امتیاز و مدیر مسوول: دکتر حامد شکوری گنجوی سردبیر: محمد کشوری [email protected] Tel: +98-21-88513812 www.teyf.com [email protected] [email protected] A GUIDE TO BUSINESS IN IRAN TELECOM MARKET 2016 TEYF RESEARCH AND CONSULTING GROUP Foreword The announcement of an agreement solutions to enhance their services. between Iran and the 5+1 group, and lifting International investors, solution providers, international nuclear-related sanctions operators and consultants can collaborate according to the Joint Comprehensive to build a new model for relations based Plan of Action (JCPOA) brings an optimistic on mutually successful partnerships with expectation throughout the international telecoms actors in Iran. and domestic business communities in In this new space, we will bring all regard to the Iranian economy. Therefore, stakeholders to build an effective community Teyf Research and Consulting Group for investment and developing business in hosted ‘ITC 2016’, dedicated to exploring Iranian telecoms, opportunities for investment and doing especially in relation to new Regulatory business in the Iranian telecoms market in announcement for the TD-LTE spectrum post era of nuclear sanctions. auction, MVNO licensing, fixed broadband Following the announcement of JCPOA, new licensing framework and huge demand the Iranian ICT market is opening up and in mobile broadband market. offers significant untapped opportunities Teyf Group is committed to provide you with for foreign investment and for exploring this short guide to do a successful business new business partnership in telecom, IT, in IRAN and hope you find it helpful and media, as well as vertical markets using ICT informative. Mahdi Rouhaninejad Teyf Group Director 2 A GUIDE TO BUSINESS IN IRAN TELECOM MARKET 2016 TEYF RESEARCH AND CONSULTING GROUP IRAN AT A GLANCE Iran is the second largest economy in the Iran’s economy is characterized by a large Middle East and North Africa (MENA) region hydrocarbon sector, small scale agriculture after Saudi Arabia, with an estimated Gross and services sectors, and a noticeable state Domestic Product (GDP) in 2015 of US$419.6 presence in manufacturing and financial billion. It also has the second largest services. Iran ranks second in the world in population of the region after Egypt, with an natural gas reserves and fourth in proven estimated 78.8 million people in 2015. 97% crude oil reserves. Economic activity and the literacy rate among ages 10-49 and 4.5 government revenues still depend to a million student in universities shows a good large extent on oil revenues and therefore situation in basic and academic education. remain volatile. Key Data Population 78.8 million 2015 Area 1,648,195 km2 Ranked 17th GDP (nominal) $425.3 billion 2014 GDP(PPP) $1001. 5 billion 2015 GDP Per Capita (nominal) $5439 2014 GDP Per capita (PPP) $ 12833 2015 GDP rank 29nd (nominal) / 18th (PPP) GDP growth 4.3% 2014 GDP by sector Agriculture (9.1%) industry (40.7%) services (50.3%) Income level Upper middle income Inflation 13.7% 2015 Unemployment 12.8% 2014 Gini 37.4 medium HDI 0.766 69th High Currency Rial (IRR) 10000IRR=0.29$ 4 A GUIDE TO BUSINESS IN IRAN TELECOM MARKET 2016 TEYF RESEARCH AND CONSULTING GROUP IRAN Economy Huge Potential, Small appearance Iran’s Economy is in rank 29th in size based Unlike its richer Gulf neighbours, Iran is not on nominal GDP (18th based on GDP (PPP)) an oil-soaked state, but a regional power and also is the second largest one in MENA with an industrial economy and lots of region. Iran’s economy is characterized by educated people who work. a large hydrocarbon sector, small scale According to the Economists, the prospects agriculture and services sectors, and a in a post-deal Iran are vast. Iran is the world’s noticeable state presence in manufacturing 18th-largest economy. The population of and financial services. With 10% of the 80m is well-educated; the country’s oil and world’s proven oil reserves and 15% of its gas reserves are huge. The Tehran stock gas reserves, Iran is considered an “energy exchange is the second-biggest in the Middle superpower”. Iran ranks second in the world East, with a capitalisation of about $150 in natural gas reserves and fourth in proven billion, according to Turquoise Partners. But crude oil reserves. Economic activity and at the end of 2014 foreigners owned only government revenues still depend to a 0.1% of listed companies’ shares, compared large extent on oil revenues and therefore with 50% on Turkey’s main exchange in remain volatile. Istanbul. Iran ought to be able to attract Iran’s stock market is the fifth-largest in the much more foreign direct investment, given Middle East, with a market capitalization of its size. One estimate puts Iran’s pent- about $150 billion. up need at over $1 trillion. In the next five years the country needs an estimated $230 Potentials for Economic Growth billion-$260 billion of investment in oil and after Nuclear deal gas, according to analysts. Iran Air, starved The January 2016 lifting of the nuclear- of investment since the Islamic Revolution in related sanctions will provide a short-term 1979, wants to buy several hundred planes. boost to Iran’s economy. One obvious Iran is preparing for take off after Nuclear consequence of the deal will be economic. deal. Fig1. Iran as an Investment opportunity 5 A GUIDE TO BUSINESS IN IRAN TELECOM MARKET 2016 TEYF RESEARCH AND CONSULTING GROUP Economic outlook in 2016-2017 positive impact this will have on the banking Due to this and a more business-oriented system, will significantly reduce international environment, real GDP growth is projected transaction costs. Strong capital inflows, to reach 4.2 percent and 4.6 percent in 2016 including FDI and the repatriation of part of and 2017, respectively. On the production the frozen assets, could put upward pressure side, growth will be mainly driven by higher on the Iranian Rial (IRR) which will help contain hydrocarbon production. On the expenditure imported inflation. Fiscal policy is projected side, consumption, investment and exports to be slightly contractionary with the deficit are expected to be the main drivers. projected to narrow to 1.8 and 1 percent in 2016 Notwithstanding the narrowing of the output and 2017, respectively, mostly on account of gap over the coming years, inflation is forecast improved oil revenues. Iran’s current account to remain moderate, by Iran’s standard. position is expected to turn into a surplus in The lifting of sanctions, and in particular the 2017, also primarily driven by rising oil exports. 8 6 4 2 0 -2 -4 2013 2014 2015 2016 2017 2018 (estimate) (estimate) (forecast) (forecast) (forecast) World Bank International Monetary Fund The Economist Intelligence Unit Fig 2. Iran’s GDP Growth Rate (2013-2018) Tehran Stock Exchange 339 companies with a combined market Iran’s stock market is the fifth-largest in the capitalization of US$104.21 billion were Middle East. The Tehran Stock Exchange listed on TSE. TSE, has been one of the (TSE ) is Iran›s largest stock exchange, world›s best