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Competition in the Middle East is creating a hotbed of opportunity that means operators need fast turnarounds to offer new services. Mobile infrastructure growth has quickly enabled countries to increase access to telecommunications. However, until now, they have not been as able to provide high-speed data services - something Middle East operators are keen to do to remain competitive.

HSPA allows operators to release new services quickly and solves the problem of delivering high-speed connections without making large investments in fixed lines, which can take much longer to put in place.

Bo-Erik Dahlström, President of Ericsson Middle East, says HSPA also creates an opportunity to provide a better experience than fixed-line broadband can currently offer in many parts of the region today.

Dahlström says that broadband over wireless will change the market, even though some operators are still concerned about what broadband services they can offer subscribers.

"It is clear that GSM operators will go for 3G and HSPA. The opportunity is there, but finding services that enable quick uptake and that can be adapted locally will determine success as well," he says. "Trials of mobile TV are under way both for HSPA and other technologies."

Dahlström says competition triggered by deregulation explains why telecoms is growing so quickly in the region. It is set to experience further investment and economic growth, so an investment in technology such as HSPA could be a sound one.

Operators in the region have already started using mobile networks to offer broadband. Saudi Arabian operator Mobily chose Ericsson in June 2006 to build its 3G network with full HSPA functionality. Ericsson will also deliver a major expansion of the operator's existing GSM network. Mobily is part-owned by the United Arab Emirates (UAE) operator Etisalat.

Ericsson also announced in June that it would supply a HSPA network to Saudi Telecom (STC). HSPA will enable STC to introduce a wide range of premium-quality multimedia and high-speed data services to Saudi users.

There is already proof that deregulation has spurred improvements in coverage and quality. In less than 18 months to June 2006, Mobily has reached 4 million subscribers out of a national population of 14 million.

"On the whole, deregulation has been positive for the region, and it is driving growth," Dahlström says. "As in other markets, deregulation has been done in the interest of the consumers, creating greater opportunities to access and use telecommunications."

Pakistan and Iran are also experiencing the same deregulation phenomenon.

In terms of growth, Pakistan is No.2 in the world right now. It is considered part of the Middle East in a telecom context because of the close connection between operators Etisalat and mobile operator Warid Telecom. In March 2006, the UAE's Etisalat took over PTCL (Pakistan Telecom Company Limited) and is operating its network.

Warid Telecom chose Ericsson as main supplier and manager of its network in 2004 and has already amassed nearly 4 million subscribers in less than two years.

Etisalat's home market, the UAE, is also being deregulated and a second operator, DU, is set to launch soon. This is expected to drive further development and the launch of 3G services in the UAE.

Dahlström says that Iran, with 13 percent telecom penetration, is a market with tremendous potential although much more can be done to deregulate the market further. "Telecom deregulation is still in its early days, but once regulations are lifted further, it will be one of the most promising markets," he says.