Mobile: revenue growth in MENA slowed in Q1, growing 3% against 8% in 2008

[ame] Mobile operator revenue growth in the Middle East and Africa (MEA) has slowed down in the first quarter of 2009, although it continues to outperform other world regions. According to a report by Strategy Analytics, while Q1 service revenues grew an average 3% worldwide for operators (down from 8% for the same period last year), in this region growth was 9.5%.

In its 'Wireless Operator Performance Benchmarking, Q1 2009', the company said that almost 40% of mobile operators saw revenue growth drop in Q1.

And while MEA is outperforming most other regions (only Central and Latin America is doing better), Q1 revenue growth is down from the first quarter of 2008, when it was 15%.

Despite the slowdown in growth, Strategy Analytics said MEA is a 'significant driver of subscriber growth' when compared to other parts of the world. 'The region as a whole has performed better and is outperforming the rest of the world,' Phil Kendall, Director, Wireless Network Strategies told AME Info.

'The falling revenues are loaded in a few regions. Europe is really struggling, because it's so saturated. In the Gulf, the performance of operators has been much more robust.'

In a separate report, 'A Q1 Look at Emerging Markets: It Could Be Worse', Strategy Analytics found that in some emerging countries, mobile subscriptions were up 20% in the first quarter. It pointed to Vodafone Egypt, where subscriptions are up 7% and Zain Uganda, which has seen an 11% rise.

While competition is growing - Vodafone recently launched in Qatar as the country's second operator, for instance - it is still minimal compared to other regions. 'The region as a whole seems to have more competition and is licensing more operators,' Kendall said.

That competition, he added, is likely to apply pressure to high telco prices and speed up the introduction of new types of services.

Middle East mobile revenue growth slows