Cellular phone companies in the Yemeni market can expect a healthy demand for services in the next five years. Based on a July 2008 study by Yemen’s Public Telecommunications Corporation (PTC), analysts at the Arab Advisors Group expect the country’s cellular sector to reach 10.5 million cellular subscribers by the end of 2012. 2007 ended with the addition of a fourth cellular operator to the Yemeni market. Arab Advisors senior research analyst Hussam Barhoush commented on the effects of this increased competition in Yemen’s cellular market by saying that, “With four companies competing against each other offering different services and technologies, we believe (the market) is bound to grow.” Barhoush projects a Compound Annual Growth Rate (CAGR) of 15.7% from 2008 to 2012 resulting in a cellular penetration rate of 42.4%. “75% of Yemen’s population live in rural areas and don’t have fixed line services,” Barhoush said. “The PTC is
