Broadband subscribers in the Middle East increased by 48 per cent in 2007 compared to the previous year, making the Middle East an attractive market for Information and Communications products and services, said a report.

The report, titled 'Middle East Broadband Forecast to 2010' published by industry research company RNCOS said that 'the region's soaring broadband demand has been propelled by the inadequacy of existing broadband infrastructure, and government policies promoting rapid broadband adoption as a tool for economic development'.

The report also said that the aggressive development by the Gulf countries in the field of technology in their quest to break their image of ‘oil-rich’ region has created many opportunities for foreign as well as domestic players looking to access new markets.

Variations in the speed with which this is occurring has led to wide disparities in broadband penetration rates from state to state, the report added.

As a result, incumbent and alternative fixed-line operators are rolling out IPTV, helping the operators better maintain their main-line base and gradually increase spend per customer in the face of falling ADSL prices, the report said.

'The UAE is expected to become the region's premier ICT hub due to its heavy investments, which are aimed at boosting the technological potential of the country and the benefits of Dubai Internet City, Dubai Media City and its free trade zones,' Jacques Chammas, managing director, Mindware, told the Gulf News.

Egypt is expected to report the highest growth in its broadband subscriber base among the Middle Eastern countries with a rate of more than 83 per cent from 2008 to 2010.