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Jordan - Market Intelligence Report
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Market Intelligence Reports provide an invaluable mix of vital market data and background information, including telecoms regulation. Jordan's telecommunications market was completely liberalised at the beginning of 2005, ending the fixed-line basic services monopoly of state-controlled incumbent Jordan Telecommunications Company (Jordan Telecom) in accordance with Jordan's commitments to the World Trade Organization. There is no limit on the number of fixed-line licences that can be issued in the liberalised market, nor are there any limits imposed on the number of discrete services such operators may offer. However, the Telecommunications Regulatory Commission (TRC) continues to regulate the sector to ensure that fair and transparent interconnection agreements are in place. The existing telecommunications legislation has recently been rewritten to accommodate new requirements for number portability, universal service provision, and the like. Several new fixed-line operators have now been licensed, although few have actually begun providing services. It seems most likely that new entrants will prefer to utilise Jordan Telecom's network rather than build their own facilities and it is therefore expected that the early development of Jordan's competitive fixed-line market will see new entrants focusing on the provision of international voice-over-IP (VoIP) services or broadband access services via JTC's local loop. For its part, Jordan Telecom is already benefiting from increased traffic processing, call termination, and interconnection charges. It should be noted, however, that Jordan Telecom's core business of providing fixed-line telephone and ISDN connections is falling away as increased use is made of mobile phones and alternative access media such as leased lines and ADSL accesses. The number of fixed-lines in service grew from 511,000 in 1998 to 620,000 in 2000, before peaking at 674,500 in 2002. During 2003, the number of fixed-lines in service fell to 622,570. Although a small resurgence in demand for fixed lines was witnessed in 2004, taking the total to 637,800, the overall trend remains downward, with 628,200 lines in service at the end of 2005, falling to 614,000 at the end of 2006. In January 2000, the Jitco consortium of France Telecom SA and the Arab Bank Ltd acquired 40% of Jordan Telecom for a total consideration of US$508 million. France Telecom owned 88% of Jitco, while Arab Bank held the remaining 12%. During October 2002, the government of Jordan completed an initial public offering (IPO) of Jordan Telecom's shares, which are now traded on the Amman Stock Exchange. More than JD5,000 million was raised in the IPO. In late-June 2006, the Jordanian government agreed to sell its 41.51% stake in Jordan Telecom to France Telecom and various Arab investors in a deal worth more than JD500 million (US$705 million). France Telecom increased its stake by 10% plus one share and was given an option to purchase a further 1% stake for a maximum of US$18.2 million. Gulf Finance House of Bahrain and Al Nour for Communications of Kuwait each acquired 10% stakes in Jordan Telecom. A 5% stake was sold to the government pension fund while 3% was reserved for army and intelligence retirees under a discounted share scheme. The remaining 2.5% was offered to local shareholders on the Amman bourse. Jordan's mobile communications market is currently served by three cellular operators. The third player - Umniah Mobile Company - was licensed in August 2004 and began offering services in late-June 2005. By the end of 2006, it was estimated that there were around 4.343 million cellular subscribers in total in Jordan.
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