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WiMAX Accounts for 8.3% of Jordan's Domestic Internet Customer Base

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A survey of Jordan's Internet users by the Arab Advisors Group revealed that the newly launched WiMAX operators have already secured an 8.3% share of residential broadband Internet accounts in the country.

Arab Advisors' online survey revealed that of the respondents who have an ADSL subscription at home, 13.3% share it with neighbors. 28% of those sharing share the ADSL connection with two more households, 22.7% with three additional households and 29.3% with one additional household.

The survey also revealed that 20.5% of Internet users in Jordan are e-commerce users. The Arab Advisors Group estimates the number of Jordan Internet users who use e-commerce to be more than 198,000 which is around 3.42% of the total population in Jordan, spending USD181.2 million in e commerce transactions in the past 12 months.

According to official figures from the Jordan Telecom Group, Jordan had 119,700 ADSL lines by the end of September 2008. The Arab Advisors Group estimates that 80% of those are residential ADSL lines. Accordingly, residential ADSL lines penetration in Jordan was 1.65%, while ADSL lines' household penetration was 8.97%.

"Due to the practice of ADSL lines sharing by households, the Arab Advisors Group notes that this penetration figure based on ISP ADSL accounts does not accurately represent broadband adoption in Jordan. Based on this trend, the Arab Advisors Group calculated the Effective ADSL Penetration Rate. The effective ADSL penetration rate accounts for ADSL connections shared between households, by dividing the number of actual households with access to an ADSL connection (shared or direct and not just ADSL accounts) by the population, or households to give the households ADSL penetration." Ms. Faten Bader, Arab Advisors Senior analyst noted. "Based on the survey we estimate the number of households with ADSL connections in Jordan to be 125,000 households by end of Q3 2008. This yields an effective ADSL penetration rate of 2.15% and a households' ADSL penetration rate of 11.71%" Ms. Bader added.

The survey also revealed that WiMAX operators had around 8.3% share of residential broadband Internet connectivity in the country. Commenting on this finding, Jawad J. Abbassi Arab Advisors Founder and General Manager, said: "Clearly, WiMAX services -a year after their launch in Jordan- have gained good traction. The sales and marketing efforts of the two WiMAX operators, as well as the enhanced market awareness for broadband Internet in general, are factors in this growth. With the recent ADSL price drops -due to bit stream offers by Orange in Jordan- the Arab Advisors Group expects healthy competition between the various broadband access technologies in Jordan. Price drops, bundles and promotions will likely increase in 2009 and beyond. In a market where the cellular penetration is 91% and some 50% of households do not have a fixed phone line, WiMAX operators will continue to underline that -unlike ADSL- their broadband offer does not need a fixed phone line in addition to the service portability (nomadic service that is unrestricted by location)."

Respondents were randomly targeted by receiving an email shot in their inbox to ask them to fill the survey in cooperation with major online players in Jordan. The survey results encompass answers from 931 respondents that passed rigorous quality control checks. Quality control was conducted by Arab Advisors Group's team. The survey was conducted on the general Internet population that is above 18 years of age. The online survey yields a confidence level of 99% with a margin of error of less than 4%.

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