$100 million in profits from Yemeni communication centers [Archives:2006/931/Business & Economy]
Abdulaalim Al-Sharaabi
Communication center owners say they earn considerable income compared to the average income of middle class Yemenis.
Yemen's communication services sector has witnessed noticeable progress in recent years, with communication centers revenue for the Yemeni government estimated at tens of millions of dollars, said engineer Fadhl Al-Maamary, owner of the Communication Services Center project in Yemen. Begun in the late '80s, it was the first private sector investment project of its kind in this field. Such projects then spread to other Arab countries like Saudi Arabia, which began a similar project in 1996.
Al-Maamary affirmed the project's economic importance in that Yemen's government gains $100 million in revenues annually, adding that it is one of Yemen's projects contributing to fighting poverty. He noted that the U.N. Development Program (UNDP) considered it the best poverty fighting project in 2003, mentioning that it provides approximately 50,000 job opportunities for youth, as well as about 10,000 opportunities for small investors.
Nevertheless, Al-Maamary said despite positive steps Yemen has taken in this area, it does not mean it has reached an advanced stage because, “We are still consumers of communication technology manufactured abroad and then we import it.”
He said Yemen is the only country in the region allowing the private sector to invest in this sector, thereby achieving advanced levels in developing this field. There were only 130,000 fixed telephone lines in 1990, whereas now there are 1.5 million. Added to this are two million GSM and CDMA lines, also operated by the private sector. Engineer Al-Maamary said there are presently approximately 90,000 telephone booths receiving a million calls daily, an average of 100-150 calls per booth.
Communication center owner Emad Abdulwahid said his average monthly income is more than YR 150,000. The government's cable and wireless communication establishment takes approximately 30 percent of the income, 20 percent goes to rent and center employees, while the remaining 50 percent is Abdulwahid's monthly profit, saying it is high compared to the average middle class income.
Another communication center owner, Ali Mohammed Ali, said his center, which has five booths, averages 70 to 80 outgoing calls daily. In this regard, a citizen who owns a mobile phone said he prefers calling from communication centers rather than other telephones because it is cheaper.
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