Mobile operators in Saudi Arabia and the UAE are expected to migrate to 4G technologies soon to accommodate the surge in data traffic, said a report.

Long-Term Evolution (LTE) and Worldwide Interoperability for Microwave Access (WiMax) are the two competing 4G technologies expected to drive the growth in mobile broadband, globally, according to an upcoming Frost & Sullivan Report, ‘LTE Outlook for India, Saudi Arabia, and the UAE’.

This surge in use of mobile broadband is attributed to the proliferation of smartphones and smart devices along with the increasing use of social networking and blogging tools, amongst others.

Mobile broadband is also gaining momentum because of the users’ need for seamless mobility and continuous Internet connectivity. The increasing popularity of the bandwidth-intensive mobile applications has further boosted the use of mobile broadband. To sustain the momentum, mobile operators in Saudi Arabia and the U.A.E. are progressively committing themselves to LTE technology, as a natural progression towards 4G services.

Saudi Arabia is one of the largest mobile markets in the Gulf region, with 51.6 million mobile subscribers and mobile penetration of 186 per cent; whereas the UAE boasts of a highly-saturated mobile market, with mobile penetration of 197.2 per cent, the report said.

The mobile consumers in Saudi Arabia and the UAE have a strong demand for mobile data services. Hence, operators are continually upgrading their networks to offer high-speed data services. Saudi Arabia and the UAE are also expected to witness high LTE growth, with compound annual growth rates (CAGR) of 54 and 85 per cent, respectively.

“The UAE has dynamic subscriber demographics due to its large expatriate population. Also, similar to Saudi Arabia, the market has large youth population, which is driving the demand for mobile services, particularly mobile Internet and mobile data. Also, with high disposable income, the penetration of smartphones, laptops, and tablet PCs is high, and is expected to increase further,” said a Frost & Sullivan Information and Communication Technologies expert.

The Frost & Sullivan Report further indicated that LTE is expected to lead the shift toward 4G technologies, with the developing ecosystem and increasing support from the equipment vendors.

The technology launches in Saudi Arabia and the UAE will be limited to only major metros, with operators expected to increase their service coverage gradually in 2012-2013. Though LTE penetration might see a marginal uptake initially, it is expected to rise with gradual coverage expansion and a more developed device ecosystem.

The report also recommends commitment and support from equipment manufacturers and mobile operators to drive the growth in the LTE market, and concludes with insights on the kind of opportunities that the next 5–10 years would see in Saudi Arabia and the UAE. – TradeArabia News Service