Core Insights - The consumer technology market in the Middle East and Africa (MEA) is shifting from hardware to services, with media and entertainment spending expected to reach $36 billion by 2027, driven by ecosystem collaboration [1][12][16] - Hardware remains foundational, with revenue projected to grow from $32.9 billion in 2020 to approximately $41.9 billion by 2027, while media and entertainment spending is expected to nearly double from $18 billion to $36 billion during the same period [1][12] Market Trends - In some global markets, service revenue has already surpassed device sales, with the GCC market showing an average ARPU exceeding $20, creating space for bundled service models [2][12] - As of Q2 2025, MEA accounts for only 14% of global telecom operators' partnerships with OTT providers, despite a mobile user dominance [2][12] Ecosystem Collaboration - Ecosystem collaboration is leading the shift from product to experience, with manufacturers repositioning devices as service-driven "experience platforms" [4][12] - Bundled offerings, such as Samsung's foldable phones with Netflix, enhance user experience and create strategic opportunities for content providers [4][12] Bundled Service Models - The cost-sharing structure of bundled services varies by partnership type, with telecom-led collaborations typically having operators bear most costs [8][12] - Bundled packages enhance user retention for operators and provide differentiation for manufacturers while expanding reach for service providers [8][12] Role of Telecom Operators and Retailers - Telecom operators and retailers act as enablers in the ecosystem, using multi-layered service bundles to prevent ARPU decline and reduce churn [9][12] - Bundled packages in high ARPU markets offer significant profit margins, enhancing customer retention compared to standalone service purchases [9][12] Consumer Benefits - Bundled packages lower overall usage costs and provide better value compared to purchasing services separately, with convenience and cultural relevance being key factors [9][12] Market Dynamics - The MENA online video market is projected to grow over fivefold to $8.4 billion by 2029, necessitating a shift from subsidy-driven models to sustainable subscription systems [12][16] - The collaboration between manufacturers, telecom operators, and content providers is crucial for capturing long-term value in the evolving market landscape [13][16] Strategic Recommendations - Manufacturers should shift marketing focus from specifications to user experience, while telecom operators expand bundled offerings to mid-tier markets [16][17] - Retailers need to transition from hardware sales to becoming integral parts of the service ecosystem, leveraging partnerships with streaming or software providers [16][17] - Content providers should prioritize collaborations with telecom operators and manufacturers to achieve scale in a fragmented market [16][17]

Core Insights - Nepal Telecom (NTC) reported a significant decline in performance for the fiscal year 2024/25, with net profit dropping from 6.23 billion NPR to 2.66 billion NPR, a decrease of 57.21% [1] - Earnings per share also fell to 14.82 NPR, reflecting the overall downturn in the company's financial health [1] Factors Affecting Performance - The decline in international call revenue has been a major contributor to the overall performance drop [1] - The impact of Over-The-Top (OTT) services on traditional business models has intensified, further straining revenue [1] - Increased competition from rivals offering WiFi services has led to a reduction in mobile data income [1] Additional Influencing Factors - High costs associated with expanding services in remote areas have negatively impacted profitability [1] - Changes in pricing policies and a decrease in interest income have also contributed to the financial challenges faced by the company [1] - Rising employee pension expenses and external pressures such as deferred tax liabilities and tax litigation have compounded the issues [1]