Telecommunications Price Benchmarking for Arab Countries 2009

Final Report from the AREGNET Price Benchmarking Study June 2009

Prepared by: Name Halvor Sannæs Position Director Tariff Services TlTel +47 37 02 3400 Email [email protected]

Teligen wishes to thank: – The AREGNET members for feedback and support in the collection of tariff information and to TRA Bahrain for commissioning and coordinating the study on behalf of AREGNET – The operators who have contributed with additional tariff information

Page 2 Contents of this report

z Background on this study and the basket concept 4 z Results from the PSTN basket 6 z Results from the Mobile basket 17 z Results from the Leased Line basket 24 z Results from the Broadband basket 33 z Results from the call price comparison 42 z Summary of findings 50 z Reference information and acronyms 51

Page 3 The context

z The benchmarking study was originally initiated by TRA Bahrain in 2008. This update for 2009 was commissioned by TRA Bahrain on behalf of AREGNET. z In increasingly competitive markets it is important for regulators to be able to track the evolution of prices and analyze the impact of price change and competition on the effective prices paid by consumers. z This study allows Arab countries to compare the price levels within and between countries, and also to compare with the OECD countries. Data presented in this report is comparable with data from the 2008 report. However, please note that exchange rates are different . z The benchmarking covers the following services: – Fixed voice (PSTN) (OECD basket equivalent) – Mobile telephony (OECD basket equivalent) – Leased Lines (OECD basket equivalent) – Broadband ADSL (Teligen basket) – Call cost for specific types of calls z The methodologies for fixed and mobile telephony and leased lines are identical to the OECD Price Benchmarking baskets, with minor changes. A separate document explaining the methodology used in this study is available. z The data was collected by Teligen from public sources on the Internet. Data has subtlbdttilltfbsequently been passed to national regulators for commen ts.

Page 4 The “Basket” method for price benchmarking

Tariff information Combine tariff information with a usage profile Tariff information in a “basket calculation engine” to calculate Tariff information cost of individual calls and tariff elements. Tariff information

Usage profile (“Basket”) Basket resu l ts Basketper tariff results (in nationalBasketper currency) tariff results (in nationalBasketper currency) tariff results Adjust costs for tax, currency and purchasing (in nationalper currency) tariff power to create comparable results. (in national currency) Tax and exchange rate adjustments. Purchasing Power.

Benchmarking results The benchmarking results show the end user for all tariffs cost of using the service according to the (in common currency ) usage profile, in a consistent format.

Page 5 Fixed voice (PSTN) basket, as defined by the OECD

z Five different basket definitions: – Low usage, medium usage and high usage for residential users – SoHo usage (single user) and SME usage (30 users) for business z The baskets define the volumes and the structure of usage – Volume and distribution of calls to different destinations – Distribution and duration of calls at different times of day Volumes Call proportions Call durations (minutes) Total calls per month Fixed line Mobile International Fixed Mobile International Residential Low 50 76.0% 19.0% 5.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2 Residential Medium 100 75.0% 23.0% 2.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2 Residential High 200 65.0% 31.0% 4.0% 3.7 - 7 1.8 - 2.1 5.5 - 7.2 Business Small 150 67.0% 29.0% 4.0% 1.9 - 3.1 1.6 - 1.7 2.9 - 3.9 Business SME 233 72.0% 20.0% 8.0% 1.9 - 3.1 1.6 - 1.7 2.9 - 3.9 z Tariffs from the incumbent operator in each country – Several tariff packages can be covered for each operator z Tariff information included in basket calculation: – Fixed charges for installation and rental – Usage charges covering local through to national calls, calls to mobiles, and international calls to other AREGNET countries plus a few other destinations z The results show the lowest cost option for each operator

Page 6 Fixed voice (PSTN) data issues

z Tariff data was researched from operator websites in the first weeks of January 2009. – Additional clarifications have been sought from operators and regulators. – Regulators have been offered the opportunity to comment on the tariff information, and on this report, prior to final publication. z Due to lack of published data, and lack of feedback, no data is available for: – Comoros – Iraq – KitKuwait – Sudan z Part of data is missing for: – Syria (no prices for calls to mobile) – Yemen (no prices for national calls and fixed line) z The analysis covers 37 tariffs from the incumbent operators in 18 countries

Page 7 Low usage basket results

OECD Residential basket, Low Usage January 2009 Most Arab countries have a low UAE, Etisalat 21.49 OECD simple average fixed cost, and “average to high” Tunisia, Tunisie Telecom 24.59 usage cost. BhBahrai n, B Btlatelco 25.53 Arab simple average Syria, Syrian Telecom * 25.75 Qatar, Qtel 26.52 Yem en, Tele Yem en * 29.42 International calls are particularly Libya, Libya Telecom 32.55 expensive (see international basket). Saudi Arabia, Saudi Telecom 34.37 Jordan, Orange 36.99 For Arab countries the international Algeria, Algerie Telecom 41.28 usage is 62% of the total usage, while Lebanon, Ogero 42.81 Oman, Omantel 43.17 for the OECD it is 31%. Egypt, Egypt Telecom 51.11 Somalia, Somali Telecom 62.75 Morocco, Maroc Telecom 70.53 Mauritania, Mauritel 73.49 Djibouti, Djibouti Telecom 79.33 Palestine, Paltel 98.16 Turkey, Turk Telecom 19.46 Tw o cheapest OECD countries Sweden, Telia 22.39 USA, V eri zon, NY + AT&T 44.77 Tw o most expensive OECD countries Czech Rep. 48.43 OECD simple average 31.02 Arab simple average 45.63

- 102030405060708090100 Currencyyp, : USD/PPP per month, VAT Included CtiCountries mark kd*dthed * do not have complete tariff data. Fixed Usage

The “average” lines are indications of the averages across Page 8 OECD countries and Arab countries covered in this study Medium usage basket results

OECD Residential basket, Medium Usage January 2009

Yem en, Tele Yem en * 23.53 OECD simple average UAE, Etisalat 24.58 Syria, Syrian Telecom * 24.97 Arab simple average Qatar, Qtel 28.64 Bahrain, Batelco 32.27 Tunisia, Tunisie Telecom 37.01 Saudi Arabia, Saudi Telecom 43.02 Libya, Libya Telecom 43.33 Jordan, Orange 49.28 Oman, Omantel 55.01 Lebanon, Ogero 58.97 Egypt, Egypt Telecom 62.52 Algeria, Algerie Telecom 64.13 Somalia, Somali Telecom 71.26 Djibouti, Djibouti Telecom 79.17 Morocco, Maroc Telecom 86.71 Mauritania, Mauritel 103.34 Palestine, Paltel 142.16 Sweden, Telia 28.32 Tw o cheapest OECD countries Korea, KT 29.24 AustraliaAus tralia, Telstra 58.49 Tw o most expensive OECD countries Czech Rep. 67.64 OECD simple average 41.32 Arab simple average 56.86

- 20 40 60 80 100 120 140 Currency : USD/PPP per month, VAT Included Countries mar marked ked * do not have complete tariff data. Fixed Usage

The “average” lines are indications of the averages across Page 9 OECD countries and Arab countries covered in this study High usage basket results

OECD Residential basket, High Usage With high usage only three of January 2009 the Arab countries can compare with UAE, Etisalat 61.52OECD simple average Qatar, Qtel 65.32 the average OECD cost. Syria, Syrian Telecom * 70.44 Arab simple average Bahrain, Batelco 75.17 Saudi Arabia, Saudi Telecom 78.70 The low fixed cost will, combined with Tunisia, Tunisie Telecom 84.11 the relatively high usage cost, create Yem en, Tele Yem en * 94.13 Jordan, Orange 98.92 a situation where competing operators Oman, Omantel 111.02 may easily attract high volume users . Lebanon, Ogero 119.61 Libya, Libya Telecom 129.12 Buying the low cost line from the Algeria, Algerie Telecom 132.20 incumbent operator, and cheaper Morocco, Maroc Telecom 138.66 Somalia, Somali Telecom 142.19 calls from an indirect provider, may Egypt, Egypt Telecom 154.65 be a tempting alternative when usage Mauritania, Mauritel 182.65 Djibouti, Djibouti Telecom 250.38 is high. Palestine, Paltel 344.78 This may put the incumbent operator Canada, Bell 32.30 Tw o cheapest OECD countries Sweden, Telia 42.43 in a difficult position. Mexico, Telmex Telm ex 102.12 Tw o most expensive OECD countries Czech Rep. 118.52 OECD simple average 69.21 Arab simple average 125.76

- 50 100 150 200 250 300 350 Currency : USD/PPP per month, VAT Included Countries mar marked ked * do not have complete tariff data. Fixed Usage

The “average” lines are indications of the averages across Page 10 OECD countries and Arab countries covered in this study SOHO basket results

OECD Business basket, SOHO The profile of the “Small Office / January 2009 Home Office” basket is largely similar Syria, Syrian Telecom * 28.16 OECD simple average to the Medium Residential basket. Yem en, Tele Yem en * 33.93 Tunisia, Tunisie Telecom 37.34 AbiArab simpl e average The m ain diff eeceserence is hi geoeagher overall Bahrain, Batelco 39.32 usage and more international calls. UAE, Etisalat 43.91 Saudi Arabia, Saudi Telecom 48.03 Algeria, Algerie Telecom 59.25 The difference between the Arab and Oman, Omantel 59.27 Jordan, Orange 60.18 the OECD averages is smaller for Lebanon, Ogero 62.08 business services than for residential Qatar, Qtel 68.88 Libya, Libya Telecom 70.69 services. Egypt, Egypt Telecom 71.74 Morocco, Maroc Telecom 83.82 Somalia, Somali Telecom 84.35 Djibouti, Djibouti Telecom 91.24 Mauritania, Mauritel 112.39 Palestine, Paltel 178.53 Denmark, TDC 26.12 Tw o cheapest OECD countries Korea, KT 29.15 Czech Rep ., Telefonica O2 67.36 Tw o most expensive OECD countries Mexico 73.03 OECD simple average 51.95 Arab simple average 62.76

- 20 40 60 80 100 120 140 160 180 200 Currency : USD/PPP per month, VAT Excluded Countries mar marked ked * do not have complete tariff data. Fixed Usage

The “average” lines are indications of the averages across Page 11 OECD countries and Arab countries covered in this study SME basket results

OECD Business basket, SME The SME basket covers 30 lines January 2009 and 30 users. Usage per user Tunisia, Tunisie Telecom OECD1,899.14 simple average Syria, Syrian Telecom * 2,115.65 is higher than with the SOHO UAE, Etisalat 2137582,137.58 AbiArab simpl e average basket. Bahrain, Batelco 2,201.68 Saudi Arabia, Saudi Telecom 2,261.94 Algeria, Algerie Telecom 2,803.35 Jordan, Orange 2,844.84 Qatar, Qtel 2,923.86 Lebanon, Ogero 2,947 .11 Oman, Omantel 3,060.37 Yem en, Tele Yem en * 3,167.18 Libya, Libya Telecom 3,506.19 Morocco, Maroc Telecom 3,715.62 Somalia, Somali Telecom 4,004.05 Egypt, Egypt Telecom 4,518 .98 Mauritania, Mauritel 5,995.38 Djibouti, Djibouti Telecom 6,772.44 Palestine, Paltel 9,802.02 Norway, Telenor 960.54 Tw o cheapest OECD countries Denmark, TDC 1,005.50 UK, BT 3,077 .09 Tw o most expensive OECD countries Mexico 3,273.64 OECD simple average 2,048.62 Arab simple average 3,493.30

- 2,500 5,000 7,500 10,000 Currency : USD/PPP per month, VAT Excluded Countries mar marked ked * do not have complete tariff data. Fixed Usage

The “average” lines are indications of the averages across Page 12 OECD countries and Arab countries covered in this study International call basket

z The international basket gives the weighted average of the cost of one call, weighted by: – Destination: 22 Arab countries, 4 Western and 4 Eastern countries – Time of day: Residential basket with 25% peak time and 75% off-peak time – Duration: Peak calls of 3 minutes, off-peak calls of 5 minutes

z The destinations are weighted based on originating and destination countries:

From To NAfiN. Africa ME Wes t ME Eas t EAfiE. Africa Europe NAN. Amer icaAiAsia North Africa 30% 10% 10% 10% 20% 10% 10% ME West 10% 35% 10% 5% 20% 15% 5% ME East 10% 10% 35% 5% 5% 15% 20% East Africa 10% 10% 20% 30% 10% 10% 10%

North Africa Algeria Libya Mauritania Morocco Tunisia ME West Jordan Lebanon Palestine Syria ME East Bahrain Iraq Kuwait Oman Qatar Saudi UAE Yemen East Africa Comoros Djibouti Egypt Somalia Sudan Europe France UK Spain N. America USA Asia India Phillipines Japan Australia

Page 13 International call basket

International Residential Basket January 2009

Saudi Arabia, Saudi Telecom OECD1.76 simple average Jordan, Orange 2.30

Morocco, Maroc Telecom 2572.57 Arab simple average Lebanon, Ogero 2.64 Qatar, Qtel 2.69 Tunisia, Tunisie Telecom 2.69 Algeria, Algerie Telecom 2.94 International calls out of the Arab Bahrain, Batelco 3.02 UAE, Etisalat 3033.03 countries are 5 times as expensive Oman, Omantel 3.35 as the OECD countries on average, Syria, Syrian Telecom * 4.74 Libya, Libya Telecom 4.98 and even the cheapest Arab country Mauritania, Mauritel 4.99 is 20 times more expensive than Somalia, Somali Telecom 5.25 Egypt, Egypt Telecom 7547.54 the “best in class” OECD country. Yemen, Tele Yemen * 7.74 Palestine, Paltel 10.54 Djibouti, Djibouti Telecom 16.76 Germany, Deutsche Telekom 0.15 Tw o cheapest OECD countries Canada, Bell 0.21 Korea, KT 2712.71 Tw o most expensive OECD countries Mexico 2.74 OECD simple average 0.97 Arab simple average 4.93

- 2 4 6 8 101214161820 Currency : USD/PPP per call, VAT Included Countries mar marked ked * do not have complete tariff data. Fixed Usage

The “average” lines are indications of the averages across Page 14 OECD countries and Arab countries covered in this study Fixed voice basket results 2008 – 2009 (based on national currency) z Price changes 2008 - 2009: PSTN price change 2008 - 2009 – Algeria: Line rental change – Egypt: Significant changes with higher line -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30%

rental, higher local call charges, and lower Algeria charges for calls to mobiles. BhBahrai n – Jordan: No actual increase, 2009 data includes more international destinations and Djibouti is thus a better reflection of the actual basket Egypt cost. – Lebanon: Lower installation charge, and off- Jordan

peak call charge to fixed lines. Lebanon – Morocco: New range of packages, higher line rental, simpler call charges to fixed, cheaper Libya international calls. Mauritania – Oman: New packages with higher line rental, Morocco long distance charges removed – Qatar: Increase in call charges to mobiles. Oman – Saudi Arabia: Reduction in international call Palestine charges. Qatar – UAE: Minor change in residential international call charges, new business call charges. Saudi Arabia

– Libya was not included in the 2008 data. Somalia Low z The gap between the Arab average and the OECD Medium Syria average has widened over the last year for High SOHO residential users, primarily because the prices in Tunisia SME OECD countries have gone down more than in Arab Res. Intn. UAE countries. Yem en Price change analysis is based on prices in national Page 15 currency for each country. Observations from PSTN basket results z The cheapest countries throughout are : (*) – UAE, Tunisia, Bahrain, Qatar, Saudi Arabia

• The exact order of these may vary with usage level

• This list is based on averaggge ranking across all five baskets , residential and business z Most of these countries have total costs below or just above the OECD average for all baskets – Generally the Arab countries in North Africa are more expensive than the Arab countries in the Middle East. z The price range for the Arab countries (cheapest to most expensive) is wider than for the OECD countries – The cheapest OECD country is below the cheapest Arab country – The most expensive Arab country is significantly more expensive than the most expensive OECD country z Most of the Arab countries have fixed costs well below the OECD countries, causing the usage element to dominate. This makes the overall cost grow quicker with increasing usage, something that will discourage growth in usage. z Even with significantly lower fixed cost the overall cost of using the service is higher in the Arab countries than in the OECD countries. z There is a clear lack of rebalancing in most Arab countries, where the usage revenue covers a siggpnificant portion of the fixed line cost for the o perators. z International calls are significantly more expensive than in OECD countries

* Countries with gaps in the tariff information are not considered. Page 16 Mobile basket , as defined by the OECD

z Three different basket definitions: – Low usage, medium usage and high usage – The low usage results will include both pre- and post-paid tariff packages

z The bas ke ts de fine the vo lumes an d the s truc ture o f usage – Volume and distribution of calls to different destinations – Distribution of calls at different times of day Calls / messages Mobile Mobile Voice SMS SMS per month Voice SMS MMS Destinations Local National On-net Off-net mail On-net Off-net Low usage 30 33 0.67 Low usage 15.00% 7.00% 48.00% 22.00% 8.00% 65.00% 35.00% Medium usage 65 50 0.67 Medium usage 14.00% 7.00% 48.00% 24.00% 7.00% 65.00% 35.00% High usage 140 55 1.00 High usage 13.00% 7.00% 47.00% 26.00% 7.00% 65.00% 35.00% – Call durations are in the range of 1.4 to 1.9 minutes per call

z Tariffs from the two dominant operators in each country ToD Peak Off-peak Weekend Low usage 48.00% 25.00% 27.00% – Several tariff packages are covered for each operator Medium usage 50.00% 24.00% 26.00% High usage 60.00% 19.00% 21.00% z Tariff information covers: – Fixed charges for connection and rental – Calls to fixed network, on-net and off-net mobile, and international calls to other AREGNET countries plus a few others (see international basket on earlier page) – Charges for SMS, MMS and voicemail calls

z The results show the lowest cost oppption for each operator

z The international calls are added to the OECD basket definition for this study.

Page 17 Mobile tariff data issues

z Tariff data was researched from operator websites in the first weeks of January 2009. – Additional clarifications have been sought from the operators and regulators. – Regulators have been offered the opportunity to comment on the tariff information and the draft version of this report. z NtiffifNo tariff informati on avail ilblfable for: – Djibouti – Somalia – Syria – One operator only for Comoros, Palestine, Qatar(*) and Mauritania z Part of tariff information missing for: – Iraq (International call prices for AsiaCell) – Kuwait (international call prices for Zain) z Otherwise two operators are covered for each country z A total of 248 tariff packages covered for 32 operators in 19 countries

* There is only one active operator in Qatar. Page 18 Low usage mobile basket results

Low user basket Pre-Paid and Post-paid For the Low usage basket Jordan, Orange * 10.36 both pre- and post-paid UAE, du * 10.51 UAE, Etisalat * 10.68OECD average tariffs are included. Iraq, Korek * 11.20 Kuwait, Zain * 11.63 The cheapest option is Jordan, Zain * 11.77 Bahrain, Zain BH * 13.26 Arab average selected regardless of Saudi Arabia, Mobily * 13.99 Bahrain, Batelco * 14.20 tariff type. Oman, Oman Mobile * 14.45 Arab average - Intn Kuwait, Wataniya * 14.66 Sudan, MTN * 15.01 Oman, Nawras * 15.39 Most of the tariffs shown in Sudan, Zain SD * 16.00 Tunisia, Tunisie Télécom 16.88 Fixed this graph are pre-paid Saudi Arabia, Al Jawal * 17.04 Voice Messages Qatar, Qtel * 17.36 Intn. (marked with an *). Tunisia, Tunisiana * 18.10 Algeria, Djezzy * 18.24 Algeria, ATM Mobilis * 19.71 Egypt, Mobinil 19.88 Libya, alMadar * 22.37 Libya, Libyana * 23.12 Egypt, Etisalat * 23.56 The OECD results do not include Yemen, MTN * 26.01 International calls as these Mauritania, Mattel 28.03 Comoros, Huri 38.67 are not part of the OECD Morocco, Meditel * 47.16 basket definitions. Morocco, IAM 48.53 The “Arab average – Intn” line Palestine, Jawwal * 68.51 Lebanon, Touch * 83.58 shows the equivalent average Lebanon, Alfa 84.22 based on the Arab basket results Denmark, Sonofon * 4.00 Sweden, Tele 2 Comviq 4.45 OECD results, minimum and maximum Spp,ain, MoviStar 20.57 USA, AT&T * 25.14 OECD simple average 12.77 Arab simple average 25.13

- 102030405060708090100 Page 19 USD/PPP per month including VAT Medium usage mobile basket results

Medium user basket Post-paid

UAE, du 27.07 UAE, Etisalat 28.42 Bahrain, Zain BH OECD28.89 average Bahrain, Batelco 30.28 Oman, Nawras 34.91 Jordan, Orange 35.48 Jordan, Zain 36.90 Arab average Tunisia, Tunisie Télécom 36.97 Oman, Oman Mobile 37.97 Tunisia, Tunisiana 38.30Arab average - Intn Saudi Arabia, Mobily 39.43 Sudan, Zain SD 39.81 Algeria, Djezzy 39.96 Kuwait, Zain 40.16 Egypt, Mobinil 40.64 Fixed Kuwait, Wataniya 42.31 Voice Messages Qatar, Qtel 42.48 Intn. Algeria, ATM Mobilis 42.56 Egypt, Etisalat 43.05 Yem en, MTN 44.79 Saudi Arabia, Al Jawal 45.52 Sudan, MTN 47.37 Morocco, IAM 56.46 Mauritania, Mattel 64.78 The OECD results do not include Comoros, Huri 77.02 International calls as these Morocco, Meditel 90.45 Lebanon, Alfa 111.81 are not part of the OECD Lebanon, Touch 112.73 basket definitions. Palestine, Jawwal 129.91 Libya, alMadar 182.26 The “Arab average – Intn” line - - shows the equivalent average - - based on the Arab basket results Sweden, Tele 2 Comviq 7.37 Finland, Elisa 10.45 OECD results, minimum and maximum Canada, Bell Mobility 43.44 USA, AT&T 52.99 OECD simple average 24.51 Arab simple average 55.62

- 20 40 60 80 100 120 140 160 180 200 Page 20 USD/PPP per month including VAT High usage mobile basket results

High user basket Post-paid

UAE, Etisalat 42.34 UAE, du 42.95 Jordan, Orange OECD48.03 average Kuwait, Zain 48.35 Bahrain, Zain BH 48.71 Bahrain, Batelco 51.29 Oman, Nawras 55.09 Arab average Jordan, Zain 55.56 Qatar, Qtel 56.78 Arab average - Intn Oman, Oman Mobile 57.15 Tunisia, Tunisiana 58.93 Saudi Arabia, Mobily 59.77 Algeria, Djezzy 60.67 Kuwait, Wataniya 61.13 Algeria, ATM Mobilis 64.74 Fixed Sudan, Zain SD 65.98 Voice Messages Egypt, Mobinil 70.13 Intn. Yem en, MTN 70.35 Saudi Arabia, Al Jawal 70.95 Tunisia, Tunisie Télécom 72.94 Sudan, MTN 76.00 Morocco, IAM 76.13 Egypt, Etisalat 76.67 Mauritania, Mattel 125.94 The OECD results do not include Comoros, Huri 138.67 International calls as these Morocco, Meditel 145.24 Lebanon, Alfa 155.61 are not part of the OECD Lebanon, Touch 156.25 basket definitions. Palestine, Jawwal 213.15 Libya, alMadar 236.64 The “Arab average – Intn” line - - shows the equivalent average - - based on the Arab basket results Finland, Elisa 13.88 Denmark, Sonofon 14.56 OECD results, minimum and maximum Slovak Republic, T-Mobile 77.91 Spain, MoviStar 78.67 OECD simple average 37.77 Arab simple average 85.41

- 50 100 150 200 250 Page 21 USD/PPP per month including VAT Mobile basket results 2008 – 2009 (based on national currency)

Mobile price change 2008 - 2009 -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% z Changes affecting the mobile basket results: Algeria

– Algeria: Many new tariffs Bahrain Low – Bahrain: change in some per-paid tariffs Medium elements Comoros High – Egypt: Price reductions Djibouti

– Iraq: International call charges reduced Egy pt – Jordan: Price reductions and changes in tariffs offered Iraq – Kuwait: Changes in tariffs offered Jordan

– Lebanon: Changes in tariffs offered Kuw ait – Morocco: Price reductions Lebanon – Oman: Price reductions and new tariffs – PlPales tine: PiPrice s truc ture c hanges Libya – Qatar: Price reductions and new tariffs Mauritania

– Saudi Arabia: New tariffs Morocco – Tunisia: New tariffs Oman – UAE: Pre-pppaid price structure chan ge Pales tine z In other countries the changes have been minimal. Qatar z The Arab average has not changed Saudi Arabia much over the last year, while the OECD average has had a clear Sudan decrease. Tunisia

UA E Page 22 Price change analysis is based on prices in national Yemen currency for each country. Observations from Mobile basket results

z The cheapest countries throughout are : – UAE, Jordan, Bahrain, Oman, Kuwait

• The exact order of these may vary with usage level

• Only UAE is among the top 5 for all baskets

• These are largely the same countries that have the best PSTN results z For low usage, with pre-paid packages, only a handful of the Arab countries have price levels below the OCOECD average z For medium to high usage, with post-paid packages, most Arab countries are above the OECD average z The average across Arab coun tri es is 80-100%b% above thOECDthe OECD average.

z Except for the five -six most expensive countries, the Arab countries have rather uniform price levels for mobile services. z Many operators have very few tariff packages on offer, i.e. do not make any great attempts to capture customers with tailored prices.

Page 23 Leased Lines basket, as defined by the OECD

z Prices for 64kb/s, 2 Mb/s and 34 Mb/s national circuits z 6 specific distances are used: – 2 km, 20 km, 50 km, 100 km, 200 km and 500 km z Each distance is weighted in order to calculate a weighted average price for one circuit: Distance (km) 2 20 50 100 200 500 Weight 35% 20% 15% 20% 5% 5% z The 3 bitrates are calculated and repppyorted separately. z Where the distances in the basket would go beyond the country borders, the weights of those distances will be attributed to the longest available tariff zone. – For example: In Bahrain a 64 kb/s circuit costs BD 140 regardless of distance. The longest possible circuit distance in Bahrain is approximately 50 km. But the weights for 100 km (20%), 200 km (5%) and 500 km (5%) are still applied to this price as the price for the longest possible circuit in order to cover 100%. – This may bias the results for small countries with distance-sensitive prices in the sense that a relatively higher proportion of the circuits will be at maximum cost – Small countries with no distance pricing will be favoured by this scheme. z For the Arab country price benchmarking two more bitrates are added: – 256 kb/s in order to cover a wider range of services relevant for the region, and 155 Mb/s to show the pppotential for future development. – To the extent they are offered in the countries concerned.

Page 24 Leased Lines data issues

Page 25 64 kb/s Leased Lines basket results

64 kb/s circuit prices

Syria 96 Libya 193 Egypt 217 AbArab average Jordan 300 Lebanon 325 Tunisia 350 Saudi Arabia 354 Algeria 405 Bahrain 410 Qatar 457 UAE 483 The OECD data shown represent Oman 484 Yem en 542 the lowest and highest prices found Morocco 555 in OECD countries, and the average PlPalesti ne 637 across all 30 OECD countries. Mauritania 1,410 Djibouti 1,516 Iceland 100 Czech Rep. 808 OECD simple average 333OECD average Arab simple average 451

- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Monthly prices in US$ PPP, VAT excluded

Page 26 256kb/s Leased Lines basket results

256 kb/s circuit prices

Syria 199 Egypt 564 JdJordan 660 Arab average Libya 672 Lebanon 676 Tunisia 701 Bahrain 788 Algeria 801 Saudi Arabia 827 Qatar 839 Oman 967 Palestine 995 Yem en 1,084 Morocco 1,129 UAE 1,351 Mauritania 2,005 Djibouti 2,175 Arab simple average 967

- 500 1,000 1,500 2,000 2,500 3,000 Monthly prices in US$ PPP, VAT excluded

Note: No equivalent OECD data exist.

Page 27 2 Mb/s Leased Lines basket results

2 Mb/s circuit prices

Egypt 1,302 Lebanon 1,327 Syria 1,778 AbArab average Saudi Arabia 1,879 Qatar 2,039 Oman 2,418 Algeria 2,553 Morocco 2,802 Bahrain 2,807 UAE 2,860 Tunisia 2,978 Jordan 3,211 The OECD data shown represent Libya 3,786 the lowest and highest prices found Djibouti 4,058 in OECD countries, and the average Palestine 5,150 across all 30 OECD countries. Yem en 5,419 Mauritania 15,082 Denmark 247 OECD average Czech Rep. 4,446 OECD simple average 1,826 Arab simple average 3,615

- 4,000 8,000 12,000 16,000 20,000 Monthly prices in US$ PPP, VAT excluded

Page 28 34 Mb/s Leased Lines basket results

34 Mb/s circuit prices Only a few of the Arab countries Qatar 6,108 publish these prices. Egypt 8,682 Arab average The service may still be offered Saudi Arabia 11,074 though. Algeria 25,526 Morocco 26,450 Libya 64,365 Iceland 1,683 Mexico 21,358 OCOECD simple average OECD9,210 Arab simple average 23,701

- 20,000 40,000 60,000 80,000 The OECD data shown represent the lowest and highest prices found Monthly prices in US$ PPP, VAT excluded in OECD countries, and the average across all 30 OECD countries.

Page 29 155 Mb/s Leased Lines basket results

155 Mb/s circuit prices Only a few of the Arab countries Egypt 17,364 publish these prices. Arab average Saudi Arabia 22,571 The service may still be offered Qatar 23,905 though. Algeria 76,579 221,079 ---> Libya Arab simple average 72,300

- 50,000 100,000 150,000 200,000 Monthly prices in US$ PPP, VAT excluded

Note: No equivalent OECD data exist.

Page 30 Leased Line basket results 2008 – 2009 (based on national currency)

Leased Line price changes 2008 - 2009 z The basket results are affected by:

– Algeria: General price reductions. -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0%

– Bahrain: No price reduction (2009 Algeria

data based on 1 yy,ear contract tariff, Bahrain 2008 was based on open term contract tariffs). Comoros – Jordan: Slight price increase for 256 Djibouti kb/s, long distances. Egypt Iraq – Morocco: Slight price increase for 64 k Jordan 64 kb/s. 256k Kuwait 2 M – Oman: Slight price increase for 64 34 M Lebanon kb/s, below 100 km. 155M – Saudi Arabia: Price reductions for Libya circuits below 100 km Mauritania – Tunisia: Price increase for 64 kb/s, Morocco all distances Oman Palestine z No price changes recorded in other countitries. QtQatar Saudi Arabia z The Arab average is closing in on the OECD average for low speeds Somalia (<= 2 Mb/s): Sudan 64 k 2 M 34 M Syria Arab/OECD 2009 136% 198% 257% Tunisia average 2008 198% 251% 252% UAE Price change analysis is based on prices in national Yemen Page 31 currency for each country. Observations from Leased Line basket results

z Egypt, Jordan, Lebanon, Qatar, Saudi Arabia and Syria have the lowest prices for National Leased Lines. – Price levels in these countries are below or close to the OECD average – The price ranking may vary with product z The majority of the Arab countries have prices below the most expensive OECD country – For 64 kb/s the prices in Djibouti and Mauritania stands out as very high. – For 2 Mb/s the prices in Mauritania stands out as very high. – For 34 Mb/s and 155 Mb/s the prices in Libya appear on the high side z For speeds up to 2 Mb/s the Arab average is in line with the OECD average. – For higher speeds the prices in Arab countries appear higher than in the OECD countries z However, most Arab countries are more expensive than the OECD “best-in- class”. z Many of the Arab countries are quite small in size and this price comparison may give advantage to the tariff structure used in these small countries. – i.e. the reality may be worse than shown here.

Page 32 Broadband basket methodology z RhiResearch covering 148 ADSL serv ice o ffer ings from t he incum bent ISP* i n 18 AbArab countr ies z Costs are presented for low speed (< 1 Mb/s) and medium speed (1-4 Mb/s) services separately. – Low speed does not include 1024 kb/s offers – Not all ppyroviders may offer services in both cate gories – Not all providers may publish tariffs for both residential and business services z Total monthly cost calculated based on two usage profiles: – Low usage: 1 GB and 10 hours per month, in 20 minute sessions. – High usage: 5 GB and 30 hours per month, in 30 minute sessions . z Only “actual price” results are shown in this report. – “Actual price” refers to the monthly cost paid by the customer, as opposed to the “Normalised” price per 1 Mb/s that can also be produced by the benchmarking system

z The European data shown refer to the incumbent ISP* ADSL services in 30 European countries z Tariff data cover the cheapest form of installation, modem cost (if applicable), monthly rental, usage allowances and any usage charges. z Additional information on speed, web-space, email addresses, penalties with excess usage, and contract term duration is also included in the basic data and presented along with the cost results. – To the extent this information is published by the provider – Please also see the document on “AREGNET Price Benchmarking Methodology

* Incumbent ISP will normally mean the ISP owned by the incumbent operator in the country. Page 33 Broadband data issues

z Price data not available for broadband services in: – Iraq – KitKuwait – Palestine – Somalia z SdSpeed assumpt ions for up ldload spee dhdbd had to be ma dfde for: – Saudi Arabia z Regulators have been offered the opportunity to comment on the tariff information and the draft report. z Most providers in the Arab countries offer speeds down towards 128 kb/s. The highest speed from many providers is 2 Mb/s or below. – The results shown focus on speeds from 256 kb/s and upwards. This corresponds with the general definition of broadband.

Page 34 Residential low speed broadband (below 1 Mb/s)

Low speed residential broadband services

21.87 Algeria - 32 / 256 Red line = European low usage simple average Morocco - 128 / 256 28.59 Blue line = Arab low usage simple average Egypt - 128 / 256 29.28 UAE - 64 / 256 30.79 Tunisia - 128 / 256 37.81 Bahrain - 64 / 256 41.54 Libya - 128 / 256 45.48 Oman - 128 / 512 57.64 Sudan - 64 / 256 65.15 Jordan - 128 / 512 65.38 Saudi Arabia - 128 / 256 66.95 Lebanon - 64 / 256 70.62 Syria - 64 / 256 143.00 Djibouti - 128 / 256 147.56 Mauritania - 64 / 256 163.16 Yemen - 64 / 256 644.26 Comoros - 64 / 256 671.32 - - Switzerland - 100 / 300 20.33 Lowest and highest price level in Europe Cyprus - 192 / 512 42.39 29.82 Europe simple average European and Arab region averages Arab simppgle average 137.08

- 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00 Actual prices in US$ / PPP per Month, VAT included Page 35 Low usage cost High usage cost Residential medium speed broadband (1 – 4 Mb/s)

Medium speed residential broadband services

43.47 Morocco - 512 / 1024 Red line = European low usage simple average Blue line = Arab low usage simple average Tunisia - 512 / 1024 52.77 56.36 Algeria - 64 / 1024

Qatar - 128 / 1024 75.33

Jordan - 256 / 1024 82.50 83.68 Oman - 128 / 1024

UAE - 256 / 1024 92.54

Egypt - 256 / 1024 97.61 129.46 Saudi Arabia - 256 / 1024

Lebanon - 256 / 1024 157.01

Bahrain - 256 / 1024 162.80 268.08 Sudan - 256 / 1024

21.26 Lowest and highest price level in Europe Ireland - 128 / 1024

Malta - 512 / 2048 64.88 37.66 Europe simple average European and Arab region averages 150.55 Arab simple average

- 50.00 100.00 150.00 200.00 250.00 300.00 Actual prices in US$ / PPP per Month, VAT included Page 36 Low usage cost High usage cost Business low speed broadband (below 1 Mb/s)

Low speed business broadband services

28.59 Morocco - 128 / 256 Red line = European low usage simple average Egypt - 128 / 256 29.28 Blue line = Arab low usage simple average Libya - 128 / 256 45.48 Sudan - 64 / 256 65.15 Lebanon - 64 / 256 90.56 Jordan - 128 / 512 97.52 Bahrain - 64 / 256 114.29 UAE - 128 / 512 173.93 Algeria - 32 / 256 192.88 Djibouti - 128 / 512 606.98 Yemen - 64 / 256 644.26 Tunisia - 256 / 512 897.52 ------28.10 Switzerland - 100 / 1000 Lowest and highest price level in Europe Cyprus - 192 / 512 42.39 Europe simple average 34.77 European and Arab region averages Arab simple average 248.87

- 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00 900.00 Actual prices in US$ / PPP per Month, VAT included 1,000.00

Low usage cost High usage cost Page 37 Business medium speed broadband (1 – 4 Mb/s)

Medium speed business broadband services

43.47 Morocco - 512 / 1024 Red line = European low usage simple average Blue line = Arab low usaggpe simple averag e Egypt - 256 / 1024 97.61

Jordan - 256 / 1024 166.03

Lebanon - 256 / 1024 183.59

Oman - 256 / 1024 213.91

Qatar - 128 / 1024 219.92

Sudan - 256 / 1024 268.08

UAE - 256 / 1024 439.07

Algeria - 64 / 1024 463.03

Bahrain - 256 / 1024 511.96

Djibouti - 256 / 1024 1,008.97

Tunisia - 512 / 1024 1,451.91 21.26 Ireland - 128 / 1024 Lowest and highest price level in Europe Austria - 2048 / 2048 160.42

Europe simple average 61.64 European and Arab region averages Arab simple average 422.30

- 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 1,600.00 Actual prices in US$ / PPP per Month, VAT included

Page 38 Low usage cost High usage cost Residential vs. Business broadband prices

Low speed (<1 Mb/s), low usage broadband Medium speed (1-4 Mb/s), low usage broadband The reason for the high 21.87 43.47 business price in Algeria Mor oc c o 192.88 43.47 Tunisia is the charge 28.59 Morocco 52.77 28.59 Tunisia to the incumbent operator 29.28 1,452 ---> for network access. Egypt 29.28 56.36 Algeria 463.03 30.79 UA E 173.93 75.33 Qatar 41.54 219.92 Bahrain 114.29 82.50 Jordan 45.48 166.03 Libya 45.48 83.68 Oman 57.64 213.91 Oman - 92.54 65.15 UA E Sudan 65.15 439.07

66.95 129.46 Saudi Arabia Saudi Arabia - - 147.56 Djibouti 157.01 606.98 Lebanon 183.59 644.26 Yemen 644.26 162.80 BhBahrai n 511.96 671.32 Comoros - 268.08 Sudan - 268.08 - Eur ope s imple 37.66 29.82 average 61.64 Europe simple average 34.77 150.55 Arab simple average 137.08 422.30 Arab simple average 248.87

- 100 200 300 400 500 600 700 - 200 400 600 800 1,000 US$/PPP per month, VAT included US$/PPP per month, VAT included

Residential Business Residential Business

Low speed Medium speed Business to residential price relationship in Arab Arab simple average 182% 280% countries compared to European average. Europe simple average 117% 164%

Some business services offer higher speed and more space Page 39 than comparable residential services. Broadband basket results 2008 – 2009 (based on national currency)

Broadband price change 2008 - 2009 z The basket results are affected by: -100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0%

– Algeria: Reduced monthly rental Algeria

– Djjyibouti: Reduced monthly rental Bahrain Low Speed , Low usage Low Speed, High usage Comoros – Egypt: Change in usage allowance Medium Speed, Low usage Medium Speed, High usage – Jordan: Not an actual increase, but the Djibouti Egy pt incumbent access charge was not Iraq registered in the 2008 data Jordan – Morocco: Reduced monthly rental Kuw ait

– Oman: Change in package range, and Lebanon

monthly rental Libya

– Qatar: Price structure change for business Mauritania – Sudan: Reduced prices Morocco – UAE: Reduced monthly rental Oman Palestine z Prices in Arab countries have gone down Qatar

significantly over the last year. But so has Saudi Arabia

prices in Europe, and the relative Somalia difference stays basically the same. Sudan Syria

Tunisia

UA E Page 40 Price change analysis is based on prices in national Yemen currency for each country. Observations from Broadband basket results

z Speeds above 4 Mb/s appear only to be offered by incumbents in 5 of the countries: – Morocco, Oman, Qatar, Saudi Arabia, Syria. – The pr ices are very different b et ween count ri es – Price difference between lowest and highest price level is 3064% for low speed services, and 2321% for medium/high speed. z Speeds below 256 kb/s are common in most Arab countries z For speeds above 1 Mb/s the prices are generally higher than what is found in Europe – For low speed broadband (0.256 - 1 Mb/s) the prices in the majority of the Arab countries tend to be similar to the European average, but the speeds used in Europpge will be higher. – In Europe the most common speeds are in the range 1-4 Mb/s and above, and lower speeds are in many cases not offered at all. There is a clear move towards higher speeds, only since last year the situation has changed significantly. z The average price relationship between business and residential offering is hig her for Ara b coun tr ies than European coun tr ies – Please note that specific business offerings often include higher speeds, more email and web space, and different conditions. z Most services are very basic and do not offer many additional facilities z Only some of the countries apply usage-based prices

Page 41 Call cost comparison

z The comparison of call cost is based on the actual cost of a 3 minute call. z Cos ts are compare d for Loca l ca lls, Na tiona l ca lls an d ca lls to the USA – At peak and off-peak times – Off-peak meaning the lowest possible cost period

z These comparisons have a much simpler methodology than the basket comparisons shown elsewhere in this report, and will reflect the costs for specific call types. z The results are presented with countries in alphabetical order as a ranking of these results is not necessarily useful. – Services with for example free calls (zero cost per call) may still have a higher cost to the end user

Page 42 Local call comparison

3 minute local call Many of the countries have the Algeria 0.17 Bahrain 0.08 Peak average same prices for local and national Off-peak average Comoros No data calls. Djibouti 0.18 Egypt 0.08 Iraq No data Entries with call cost of 0.00 have Jordan 0.12 Kuwait No data free calling included in the monthly Lebanon 0.18 rental. Libya 0.00 Mauritania 0.64 Morocco 0.28 Oman 0.20 Palestine 0.26 Qatar 0000.00 Saudi Arabia 0.06 Somalia 0.00 Sudan No data Peak Syria 0.03 Off-peak Tunisia 0.05 UAE 0.00 Yem en No data

Arab simple average 0.14

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 US$ PPP, VAT included

Page 43 National call comparison

3 minute national call

Algeria 0.34 0.08 Bahrain Peak average Comoros No data Off-ppgeak average Djibouti 0.18 Egypt 0.39 Iraq No data Entries with call cost of 0.00 have Jordan 0.14 Kuwait No data free calling included in the monthly Lebanon 0.18 rental. Libya 0.00 Mauritania 0.64 Morocco 0.51 Oman 0.20 Palestine 0.26 Qatar 0000.00 Saudi Arabia 0.25 Somalia 0.06 Sudan No data Syria 0.03 Tunisia 0.47 Peak 0330.33 UAE Off-peak Yem en No data

Arab simple average 0.24

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 US$ PPP, VAT included

Page 44 Local vs. National

3 minute local vs. national call (peak time)

Algeria 0.17 0.34 0.08 Bahrain 0.08 Local average Comoros National average 0.18 Djibouti 0.18 0.08 Egypt 0.39 Iraq For entries with no bar in the graph, Jordan 0.120.14 Kuwait please refer to the data in the Lebanon 0180.18 0.18 special local and national graphs. Libya 0.64 Mauritania 0.64 Morocco 0.28 0.51 Oman 0.20 0.26 Palestine 0.26 Qatar Saudi Arabia 0.06 0.25 Somalia 0.06 Sudan Syria 0.030.03 Tunisia 0.05 0.47 Local UAE 0.33 National Yem en

Arab simple average 0.14 0.24

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 US$ PPP, VAT included

Page 45 International call comparison (call to USA)

3 minute call to USA

Algeria 1.64 Peak average 2.18 Bahrain Off-peak average Comoros No data Djibouti 14.48 Egypt 5.88 Iraq No data Jordan 0.95 Kuwait No data Lebanon 2.17 Libya 2.10 Mauritania 4.83 Morocco 2.49 Oman 2.60 Palestine 5.55 QtQatar 2292.29 Saudi Arabia 2.50 Somalia 1.05 Sudan No data Syria 4.27 Peak Tunisia 1.18 Off-peak UAE 2.31 Yem en 6.05

Arab simple average 3.58

0246810121416 US$ PPP, VAT included

Page 46 National vs. International to USA

3 minute National vs. International call (peak time)

Algeria 0.34 1.64 0.08 Bahrain 2.18 National average Comoros Intn. USA average Djibouti 0.18 0.39 Egypt 5.88 Iraq For entries with no bar in the graph, Jordan 0.14 0.95 Kuwait please refer to the data in the Lebanon 0180.18 2.17 special national graph. Libya 2.097 0.64 Mauritania 4.83 Morocco 0.51 2.49 Oman 0.20 2.60 0.26 Palestine 5.55 Qatar 0.00 2.29 Saudi Arabia 0.25 2.50 Somalia 0.06 1.05 Sudan Syria 0.03 4.27 Tunisia 0.47 1181.18 National 0.33 UAE 2.31 Intn. USA Yem en 6.05

Arab simple average 0.24 3.58

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 US$ PPP, VAT included

Page 47 Call costs 2008 – 2009 (based on national currency)

z Very few call charges have actually changed 2008 – 2009 – No changes in basic national call charges and basic international call charges – Some changes in local call charges (see below) – The range of tariff packages has expanded in many countries, and alternative call charges may often be available . z Changes in local call charges: – Egypt: Local call charges have increased with 30%

• … and are still below the average – Lebanon: Off peak charges for local calls are introduced – Oman: New tariffs have higher peak and lower off-peak charges than before, last year had one charge at all times.

Page 48 Observations from the call cost comparison

z Prices of calls vary considerably between countries z About half of the countries do not offer off-peak rates for national calls z Off-peak discounts for international calls are generally quite small z In in some countries the local and/or national calls are “free”, i.e. included in the monthly rental. – Libya, Qatar and UAE z In some countries there are several tariff options available, with different call charges and fixed charges. This analysis is based on the so called “basic” packages. z Ratios of national to international call prices indicate that rebalancing of call charges has not yet taken place in many countries of the region

Page 49 Main findings from the benchmarking study z Fixe d vo ice te lep hony – Prices are on average higher in Arab countries than in OECD countries – There is a wide spread of price levels between the Arab countries – Rates are not rebalanced, with low fixed and high usage costs – Especially the international call charges are higher than in OECD countries – Prices have gone down over the last year in some countries – The lack of rebalancing will make it difficult for the incumbent operators to perform in a competitive market z Mobile telephony – Price levels in most Arab countries compare well with OECD countries , especially for low and medium usage – Rather uniform prices through the region – Many countries have reduced prices over the last year z Leased Lines – Prices for high speed circuits are generally higher than in OECD countries – There is a wide spread of prices between the Arab countries z Broadband – Price levels are significantly higher in Arab countries than in Europe – The speed range offered is lower in Arab countries, and prices increase rapidly with speed. – The higher rates will inhibit broadband penetration – Higher speeds are available in more countries than a year ago z Generally prices in Arab countries have gone down, most with Broadband services. But siihince prices have gone dithtfthldllthbtidown in other parts of the world as well the gap between prices in Arab countries and prices in OECD / European countries remains.

Page 50 Reference information

Exchange rates and VAT

Related to: US$ US$ PPP % Currency Algeria 0.014370 0.028740 17.0 % DZD Bahrain 2.667600 4.041818 0.0 % BHD Comoros 0.002609 0.004577 00%0.0 % KMF Djibouti 0.005791 0.012065 19.0 % DJF Egypt 0.182200 0.650714 10.0 % EGP Iraq 1.000000 2.631579 0.0 % USDx Jordan 1.422900 2.635000 16.0 % JOD Kuwait 3.469200 4.752329 0.0 % KWD Lebanon 0.000677 0.001208 10.0 % LBP Libya 0.798700 1.996750 0.0 % LYD Mauritania 0.003973 0.010738 0.0 % MRO Morocco 0.116900 0.212545 20.0 % MAD Oman 2.604500 4.340833 0.0 % OMR Palestine 0.246500 1.232500 0.0 % ILS Qatar 0.274900 0.366533 0.0 % QAR Saudi Arabia 0.266700 0.416719 00%0.0 % SAR Somalia 0.000730 0.002432 0.0 % SOS Sudan 0.456600 1.037727 10.0 % SDG Syria 0.021640 0.056947 0.0 % SYP Tunisia 0.708900 1.575333 18.0 % TND UAE 0.272400 0.363200 0.0 % AED Yemen 0.005007 0.013908 10.0 % YER

Prices for services in Iraq are given in US$

Exchange rates taken from the Oanda web service on the 2 February 2009. PPPs are based on World Band CPL for 2005 (published 2007, latest available).

Page 51 Acronyms used in the context of this report

z OECD: Organisation of Economic Co- z Service: A telecommunications service

operation and Development z Basket: A theoretical usage profile describing the usage volumes across different types of z OECD countries: Australia, Austria, Belgium, Canada, Czech Rep., Denmark, Finland, calls. The basket shall include all important France, Germany, Greece, Hungary, Iceland, elements of the service, including fixed cost Ireland, Italy, Japan, Korea, Luxembourg, elements. Mexico, Netherlands, New Zealand, Norway, z Tariff: The description of all the end user Poland, Portugal, Slovak Rep., Spain, prices related to a service Sweden, Switzerland , Turkey, UK, USA z Tariff element: The part of a tariff describing the price(s) for a single type of call or service. z VAT: Value Added Tax, a consumption tax system used in most European countries and z Basket calculation: The process where the some Arab countries. Basket is applied to the individual tariff in order to calculate the cost of the individual z PPP: Purchasing Power Parity , exchange tariff elements and the overall cost. rates adjusted for the purchasing power of z Basket result: The cost of using the service as consumers in each country. Used in described in the Basket. international comparisons to adjust for market differences. This study uses data from the z Re-balancing: The process through which the World Bank . prices of individual Tariff elements will cover their own cost, and not subsidise other Tariff z CPL: Comparative Price level. The relative elements. factor between market exchange rates and PPP. Used to calculate the PPPs from current market exchange rates.

Page 52