Effects of Ownership and Market Share on Performance of Mobile Operators in MENA Region

The process of telecommunication liberalization and increased competition evolves fast and as a result the market competition and the structure of mobile industry changes heterogeneously across the Middle East and North African (MENA) countries. This study attempts to analyze the effects of foreign ownership and the market share on the traffic and financial performance of mobile operators in MENA region. To achieve these objectives, we analyze the mobile industry¡¯s performances using an unbalanced panel data of 13 mobile operators observed over the period from 2002 to 2007. The empirical results showed that both foreign ownership and a higher market share have a significant positive impact on traffic, revenues, returns on sales and returns on investment of mobile operators in the MENA region.