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Iran Telecom Market Expected to Reach $12.9 Billion by 2014: Report
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January 22, 2010

Iran Telecom Market Expected to Reach $12.9 Billion by 2014: Report

By Susan J. Campbell, TMCnet Contributing Editor

While Iran’s telecom market continues to face formidable regulatory and legal hurdles, it is still expected to grow to $12.9 billion by 2014, a CAGR of 6.9 percent, according to a new report from Pyramid Research.

The report, called “Iran: Strong Telecom Growth Expected, Despite Political Uncertainties,” provides a profile of the country’s converged telecommunications, media and technology sectors based on proprietary data from Pyramid’s research in the Iranian market.

Dearbhla McHenry, senior analyst at Pyramid Research and author of the report, said that from a revenue aspect, Iran is one of the most attractive markets in the Middle East region, considering its size. By the end of 2009, it was the fourth-largest market in the region at $9.2 billion and is expected to grow to $12.9 billion by 2014 at a CAGR of 6.9 percent.

'However, regulatory and legal hurdles forbid foreigners from owning majority stakes in telecom companies, and with most of the fixed sector still under the monopoly of the government-owned incumbent, TCI, the Internet sector in particular is still only beginning to enter the growth phase,' McHenry said in a statement.
A 30-page document, it provides detailed competitive analysis of both the fixed and mobile sectors. The report also tracks the market shares of technologies and services, as well as monitors the introduction and spread of new technologies, including WiMax, IPTV (News - Alert) and VoIP.

The report provides a comprehensive view of the Iranian communications market through the analysis of key trends, the evaluation of near-term opportunities and the assessment of upcoming risk factors.

'The country's comparatively late introduction of competition means that the market is still in a rapid-growth phase, with the data segment in particular developing very fast in terms of number of users and amount of use,' McHenry said. 'We expect data's share of total revenue to double over the next five years, reaching $4.5 billion by 2014; important drivers of new growth in both segments will keep the split between fixed and mobile services steady over the forecast period.'

For mobility, McHenry noted that Pyramid anticipates the launch of a third operator to boost adoption and revenue. On the fixed side, the launch of new WiMax operators will mark the beginning of Iran's broadband era.

In a recent report,  U.S. Secretary of StateHillary Clinton called out countries like Iran for its history of censoring the Internet and/or harassing bloggers. She said that those individuals and countries involved in cyber attacks should be punished and condemned by the international community.
 'In an interconnected world, an attack on one nation's networks can be an attack on all,' Clinton reportedly said.

Susan J. Campbell is a contributing editor for TMCnet and has also written for To read more of Susan’s articles, please visit her columnist page.

Edited by Amy Tierney

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