Q3 2018

Quarterly Market

Indicators

2

Content

Disclaimer Page 3

Mobile services Page 4

Fixed line telephony services Page 6

Broadband services Page 8

Definitions Page 10

3Tuesday, December 18, 2018

TRA has relied on information supplied to it by third parties. It has not independently verified that data and as such does not make any

representations or warranties, either express or implied, that:

the information is free from inaccuracies, errors or omissions;

the information is exhaustive;

the information is of merchantable quality and fitness for a particular purpose.

TRA, including its officers, board members, employees, agents and contractors, is not liable for:

any inaccuracy, error or omission in the information contained in this document; nor

any loss, damage, cost or expense whether direct, indirect, consequential or special, incurred by, or arising by reason of, any person using

or relying on the information and whether caused by reason of any inaccuracy, error, omission or misrepresentation in the information or

otherwise.

Disclaimer

4

• By the end of Q3 2018, Mobile subscriptions continued its decline to reach 2.1 million subscriptions;

which is about a 11% decrease from the end of 2017 and a 19% decrease compared to Q2 of 2017.

• Mobile penetration rate declined to 136% by the end of Q3 2018. This decrease is attributed to the

increase in the reported population number during 2018 and the 11% decrease in number of mobile

subscriptions compared to the end of 2017 due to changes in consumer behavior moving from pre-paid

services to post paid services which provide more data allowances catering for the changing needs of

subscribers.

• A noticeable change in the Mobile market is the increase of Postpaid subscribers and decrease of

Prepaid subscribers. As of Q3 2018, Postpaid subscribers increased by 16,784 subscription while prepaid

subscriptions decreased by 268,749.

Mobile services: Subscriptions

Number of Mobile subscriptions

End of Q2 2018

2,112,512 Subscribers136% Penetration rate

* In 2018, IGA revised population figures for the year 2018 to 2023** Revised the number of accepted mobile porting requests

for Q4 2017

2015 2016 2017 Q3 2018

Total 2,541,688 2,994,865 2,364,477 2,112,512

% of Prepaid 78% 81% 74% 70%

% of Postpaid 22% 19% 26% 30%

12,923 14,049

12,040

7,892

3,751 3,185 3,018 2,652 2,328 4,160

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

Number of Accepted Mobile Porting Requests

2,4

76

2,5

07

2,5

42

2,6

41

2,8

27

2,8

03

2,9

95

2,6

93

2,6

75

2,6

14

2,3

64

2,2

67

2,1

91

2,1

13

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Tho

usa

nd

s

Number of mobile subscriptions

Total

Prepaid

Postpaid

2.21 2.33 2.54 2.99 2.36 2.11

173% 177%187%

213%

163%

136%

0%

50%

100%

150%

200%

250%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Mil

lio

ns

Mobile subscriptions and penetration

Total mobile subscriptions Mobile penetration rate

5

Mobile services: Traffic (Minutes)

• Total outgoing mobile traffic decreased by 13.5% between Q3 2018 and Q3 2017

continuing the downward trend on voice calls usage.

• The Total domestic outgoing mobile traffic decreased by 12.9% (164 million

minutes) in Q3 2018 compared to Q3 2017, whereas the total international mobile

outgoing voice traffic decreased by 15% (81 million minutes).

• Prepaid voice traffic continued to account for the majority of outgoing domestic

mobile calls and represents 53% of total domestic mobile voice traffic in Q3 2018.

Total Outgoing Traffic in Minutes

(Domestic + International)

Q3 2017

1,813,066,131

Q3 2018

1,567,269,735

(13.5%)

337 297 278 279 265 267 267 253 247 233 245 248 252 244

- 50

100 150 200 250 300 350 400

Average Monthly Minutes Per Subscription(Domestic-International)

8

65

2,290

1,567

-

1,000

2,000

3,000

-

20

40

60

80

Dat

a Tr

affi

c in

Mill

ion

s

Vo

ice

Traf

fic

in M

illio

ns

Mobile Voice Traffic Vs Mobile Broadband Data Traffic

Mobile Broadband Traffic (GB) Mobile Voice Traffic (minutes)

1,5

79

1,5

24

1,5

61

1,4

17

1,3

77

1,2

73

1,2

94

1,2

41

1,1

93

1,1

09

631

728

785

695

617

540

513

475

474

458

T O T A L O U T G O I N G M O B I L E V O I C E T R A F F I C I N M I L L I O N S O F M I N U T E S

( D O M E S T I C - I N T E R N A T I O N A L )Domestic

6

Fixed telephony services: Subscriptions (PSTN & Wireless)*

• As of Q3 2018, Fixed telephony subscriptions has decreased by 2%.

• The fixed-wired telephony services continue to increase, as it has recorded an

increase of 6,491 subscription from end of Q3 2017 to Q3 2018.

• On the other hand, fixed-wireless service has decreased by 7,227 subscriptions

between Q3 2017 to Q3 2018.

• Accepted ported fixed lines were 381 requests in Q3 2018.

End of Q3 2018

230,18215% Penetration rate

2015 2016 2017 Q3 2018

Total 242,439 233,917 234,709 230,182

% of Fixed Wired 73% 76% 79% 82%

% of Fixed Wireless 27% 24% 21% 18%

*The number of OLO’s subscriptions’ are estimated for 2018. The number of fixed telephony were revised in for 2017 subscriptions.

*The number of Fixed telephony for Q2 2018 was revised by an operator.

Number of fixed telephony subscriptions

152

596

109 218

399

1,238

789

236 109

381

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Number of Accepted Fixed Line Porting Requests

249 237 231 231 230

19%17%

16% 16%15%

0%

5%

10%

15%

20%

0

50

100

150

200

250

300

Tho

usa

nd

s

Number of fixed lines

Total Fixed wired Fixed wireless Penteration

73% 76% 79% 78% 82% 82%

27% 24% 21% 22% 18% 18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 Q1 2018 Q2 2018 Q3 2018

Distribution of fixed lines by access type

Fixedwireless(e.g.WiMax)

Fixed(Wired)

7

Fixed telephony services: Traffic (PSTN & Wireless - Minutes)*

•Domestic fixed telephony traffic continued the downward trend as traffic has

decreased between Q3 2018 & Q3 2017 by 5.9% a decline of 1.956 Million

minutes.

• The monthly average outgoing minutes per subscription decreased to 134

minutes in Q3 2018 compared to 144 minutes in Q3 2017.

• International Outgoing Fixed line traffic decreased in 2018 due to the removal of

ISDN traffic from the calculation.

Total fixed domestic outgoing

traffic in minutes

Q3 2017

32,904,064

Q3 2018

30,947,274

(5.9%)

* The OLO’s traffic (minutes usage) is estimated for 2017 ^ In 2018 Fixed ISDN traffic has been removed

** The OLO’s traffic was revised from Q4 2014 to Q4 2016

*** Domestic traffic was revised in June 2018 due to an operator revision

52

,16

8,3

28

51

,95

2,8

97

47

,66

3,3

09

44

,84

9,2

46

40

,13

0,5

86

39

,64

6,4

01

36

,25

1,0

84

34

,33

9,8

22

32

,90

4,0

64

31

,72

1,1

05

30

,53

5,5

85

29

,98

5,5

57

30

,94

7,2

74

Fixed Line Total Domestic Outgoing Traffic (Minutes)

221 216202 191

173 170 166 154 144 136 128 130 134

Average Outgoing Domestic Minutes Per Subscription

4,2

72

,50

4

3,9

25

,24

8

3,8

01

,61

2

3,5

93

,41

0

1,9

19

,42

1

1,7

48

,55

1

1,5

48

,43

6

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018

Total Outgoing International Fixed lines Traffic^

Total Outgoing International Fixedlines Traffic

8

Broadband services: Subscriptions

At the end of Q3 2018, there were about 2.3 million broadband subscriptions, a

decrease of 3% compared to end of 2017, and an increase of 3,759 compared to Q2

2018.

Broadband penetration stayed stable at 148% at the end of Q3 2018.

Fixed broadband subscription has increased by 2% between Q2 2018 & Q3 2018

while mobile broadband subscription stayed stable over the same period.

Add-on broadband to voice and pay-per-use mobile broadband represent 66% of

mobile broadband subscriptions at the end of Q3 2018. In addition, 80% of mobile

subscribers have data subscription confirming the importance of data services to the

consumers.

End of Q3 2018

2,297,366148% Penetration rate

* The number of OLO’s subscriptions’ are estimated for 2017 and 2018.

Number of broadband subscriptions

Mobile Broadband – Q3 2018

Proportion of broadband subscriptions by access type – Q3 2018

8.3% 91.7%

Fixed broadband (wired+wireless) Mobile broadband

Pay-per-use13%

Standalone21.1%

Add-on to voice 65.9%

172,4

73

178,2

99

169,1

75

194,1

44

199,3

44

186,2

92

190,2

81

25

3,3

04

35

9,1

94

32

5,9

77

31

7,5

90

33

5,2

84

41

3,0

28

44

4,7

75425,777

537,493495,152 511,734 534,628

599,320635,056

2014 2015 2016 2017 Q1 2018 Q2 2018 Q3 2018

Broadband services subscriptions from a fixed location(Dedicated Broadband)

Fixed Broadband Subscribtion (Wired & Wireless) Standalone mobile broadband (e.g. dongle, USB, tablet) Total

1,9

77

,60

2

2,4

07

,40

8

2,3

73

,30

6

2,3

41

,53

3

2,2

93

,60

7

2,2

97

,36

6

146%

171% 164%

151% 148% 148%

100%

150%

200%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2015 2016 2017 Q1 2018 Q2 2018 Q3 2018

Broadband Subscriptions and Penetration

Subscription Penetration

9

Broadband services: Data Traffic*

• The upward trend in data consumption is continuing to grow as data traffic

reached to 145.9 PB in Q3 2018, a growth of 21.7% over the year from Q3

2018.

• Year-on-Year, Mobile broadband traffic has increased by 10% while Fixed

broadband traffic has increased by 33%.

•The monthly average mobile broadband traffic per mobile subscription

remained at 10 GB compared to the monthly average fixed broadband traffic

per fixed subscription which increased to 142 GB.

• Overall, the monthly average traffic per user remained at 21 GB.

Total data traffic in Gigabyte

* The OLO’s traffic (data usage) is estimated for 2018

** Revised Q2 2018 mobile data traffic from 136.7 PB to 142.2 PB

Q3 2017

119,960,799

Q3 2018

145,994,500

21.7%

24 26 28 32 29

42

54 61 64

67

77 81

3135

41

4952 54

58 59 61 6265 65

Fixed Broadband Traffic (GB) Mobile Broadband Traffic (GB)

12 11 13 16 17 18 18 21 21

6358

82

98108 109 113

138 142

8 8 8 9 9 9 10 10 10

Per Subscription Per Fixed Broadband Subscription Per Mobile Broadband Subscription

10

Definitions

Indicator Definition

Fixed-telephone subscriptions Fixed-telephone subscriptions refers to the sum of active number of analogue fixed-telephone lines, voice-over-IP (VoIP) subscriptions,

fixed wireless local loop (WLL) subscriptions.

Prepaid mobile subscribers Prepaid mobile-cellular telephone subscriptions (ITU code i271p) Refers to the total number of mobile-cellular telephone subscriptions

that use prepaid refills. These are subscriptions where, instead of paying an ongoing monthly fee, users purchase blocks of usage time.

Only active subscriptions should be included (those used at least once in the last three months for making or receiving a call or carrying

out a non-voice activity such as sending or reading an SMS or accessing the Internet).

Postpaid mobile subscribers Postpaid mobile-cellular telephone subscriptions Refers to the total number of mobile-cellular subscriptions where subscribers are billed

after their use of mobile services, at the end of each month. The postpaid service is provided on the basis of a prior arrangement with a

mobile cellular operator. Typically, the subscriber’s contract specifies a limit or allowance of minutes, text messages, etc. The subscriber

will be billed at a flat rate for any usage equal to or less than that allowance. Any usage above that limit incurs extra charges.

Theoretically, a subscriber in this situation has no limit on use of mobile services and, as a consequence, unlimited credit.

Active mobile-broadband

subscriptionsActive mobile-broadband subscriptions refers to the sum of standard mobile-broadband and dedicated mobile broadband subscriptions

to the public Internet. It covers actual subscribers, not potential subscribers, even though the latter may have broadband enabled-

handsets. The indicator can be further broken down into:

Standard mobile-broadband subscriptions (ITU code i271mb_active): Refers to active mobile-cellular subscriptions with an advertised

data speed of 256 kbit/s or greater that allow access to the greater Internet via HTTP and have been used to make a data connection

using Internet protocol (IP) in the previous three months. Standard SMS and MMS messaging do not count as active Internet data

connections, even if they are delivered via IP.

This includes mobile subscriptions that use mobile-broadband services on a pay-per-use basis. It excludes mobile subscriptions with a

separate monthly data plan for mobile-broadband access (see Indicator 25b, Dedicated mobile broadband subscriptions).

Dedicated mobile-broadband subscriptions (ITU code i271md): Refers to subscriptions to dedicated data services (over a mobile

network) that allow access to the greater Internet and that are purchased separately from voice services, either as a standalone service

(e.g. using a data card such as a USB modem/dongle) or as an add-on data package to voice services that requires an additional

subscription. All dedicated mobile-broadband subscriptions with recurring subscription fees are included as ‘active data subscriptions’

regardless of actual use. Prepaid mobile-broadband plans require use in the last three months if there is no monthly subscription. This

indicator could also include mobile WiMAX subscriptions.

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