A new report from the Arab Advisors Group analyzes the cellular tariffs for 48 cellular operators in 19 Arab countries. The analysis revealed that the average postpaid peak minute rate dropped by 7.01%, while its off-peak average minute rates decreased by 9.94% in July 2012 compared to September 2011.

The average prepaid peak and off-peak minute rates both decreased by 2.26% and .79%, respectively. 12 Arab countries impose sales taxes on cellular services (paid by end users).

­Sudan has the highest sales tax rate on cellular services in the region followed by Jordan, Tunisia and Morocco.

The analysis of the cellular rates in the Arab World has revealed that the postpaid average minute rates in Morocco, Palestine, Mauritania, Tunisia, Lebanon and Kuwait are above the average peak minute rate. Sudan recorded the lowest average postpaid minute rates.

For prepaid average minute rates, Morocco, Lebanon, Mauritania, Palestine, Saudi Arabia, Kuwait and Qatar have rates that are above the average peak minute rate. Egypt and Sudan have the lowest prepaid average minute rates in the region.

"Twelve Arab countries impose taxes on cellular services charged to the end users. These are the governments of Algeria, Egypt, Iraq, Jordan, Lebanon, Mauritania, Morocco, Palestine, Sudan, Syria, Tunisia and Yemen. Such taxes might be referred to as sales tax, telecommunication tax, value added tax, or consumption tax. All rates analyzed in this report include all applicable taxes (representing the total costs that end users' bear). The governments of the Gulf Corporation Council (GCC) countries and Libya do not impose taxes on end users. Sudan has the highest sales tax rates on cellular services in the region followed by Jordan, Tunisia and Morocco." Mrs. Hind Qweider, Arab Advisors Group Research Analyst commented.

"When comparing the prepaid average minute rates with the postpaid average minute rates; two countries have a prepaid average rate lower than the postpaid average rate; namely: Egypt and Jordan. The Arab Advisors Group believes that this is the case in Egypt and Jordan due to the fierce competition between the operators in the market." Miss Mai Al-Zeir, Arab Advisors Group Research Analyst said.