Kuwait - Telecoms, Mobile, Broadband and Forecasts

Paul Budde Communication Pty Ltd, October 2012, Pages: 31

Kuwait is one of the wealthiest countries in the Middle East due to its oil dependent economy, which represents approximately 50% of GDP and almost all government revenue. Kuwait’s government is heavily involved in the economy, largely due to its control of the oil industry. A similar situation exists in the telecom sector due to the lack of market liberalisation. Not only does Kuwait not have an independent regulator, the Ministry of Communications (MOC) is both the regulatory entity and also the operating entity for fixed-line services.

Perhaps recognising the market’s development potential, in early 2012 the government was receiving commercial, technical and legal advice on privatising its fixed line telecom assets. The intention is to operate under a Public Private Partnership model in order to improve services and value.

Limited competition does exist in the Internet provision sector with four major ISPs, Qualitynet, Zajil KEMS, FASTtelco and United Networks offering retails services. Broadband services are accessible via ADSL, FttH, WiMAX and mobile. Prices for fixed Internet access are set by the government. In an effort to improve woefully low fixed broadband penetration levels the MOC reduced tariffs by up to 40% in September 2012. Competitors responded by blaming low penetration levels on the MOC’s underinvestment in fixed line infrastructure.

Recognising the potential of applying ICT to improve both social and economic development, Kuwait has taken steps to develop a digital economy; national level policies for e-health and e-government have been developed, with a number of services available online.

Kuwait’s mobile sector has seen the most success in the telecoms market in Kuwait. Zain and Wataniya operated as a duopoly with competition improving significantly after Viva launched services, grabbing over a fifth of the market in five years of operation. Competition is set to further intensify after the MOC issued a decision in September 2012 mandating introduction of mobile number portability.

LTE services have been launched and a decision to allow GSM spectrum refarming for LTE usage will only further encourage LTE network expansion. Despite market saturation the three mobile operators are in a prime position to grow revenue through mobile broadband offerings given the superior advertised download speeds offered by the mobile network operators relative to fixed broadband ISPs, a sizeable potential broadband subscriber market and the existing brand recognition, distribution channels and relationship the mobile operators enjoy with this potential market.

Key telecom parameters – 2010; 2012
Sector20102012
Subscribers to telecoms services (million):
Fixed Broadband0.0460.050
Fixed-line telephony0.570.59
Mobile phone4.405.30
(Source: BuddeComm)

This report provides a comprehensive overview of trends and developments in Jordan’s telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors.

Subjects include:

- Market and industry analyses, trends and developments;
- Facts, figures and statistics;
- Industry and regulatory issues;
- Infrastructure;
- Major players, revenues, subscribers, ARPU
- Internet, IPTV;
- Mobile voice and data markets;
- Broadband (FttH, DSL, cable TV, wireless);
- Convergence and digital media.

Companies covered in this report include:

Ministry of Communications, Hits Telecom, Qualitynet, Zajil KEMS, Fast Telecommunications Company (FASTtelco), United Networks, Orbit Showtime Network (OSN), Mobile Telecommunications Co (MTC) / Zain, National Mobile Telecommunication Co (NMT) / Wataniya Telecom, Kuwait Telecom Company (KTC) / Viva.

1. Executive summary
2. Key statistics
2.1 Country overview
3. Telecommunications market
3.1 Overview of Kuwait’s telecom market
4. Regulatory environment
4.1 Background
4.2 Regulatory authority
4.3 Privatisation
5. Telecom operators in Kuwait
5.1 Ministry of Communications
5.2 Hits Telecom
6. Telecommunications infrastructure
6.1 National telecom network
6.2 International infrastructure
6.2.1 Submarine cable networks
6.2.2 Satellite networks
6.3 Telecoms & IT
7. Broadband access market
7.1 Overview
7.1.1 Broadband and Internet statistics
7.2 Broadband subscriber forecasts
7.3 ISP market
7.3.1 Overview
7.3.2 Qualitynet
7.3.3 Zajil /KEMS
7.3.4 Fast Telecommunications Company
7.3.5 United Networks
7.4 Asymmetrical Digital Subscriber Line (ADSL)
7.5 Fibre to the Home (FttH)
7.6 Wireless broadband
7.6.1 WiMAX
7.7 VoIP
8. Digital economy/digital media
8.1 Overview
8.1.1 E-government
8.1.2 E-health
9. Digital broadcasting
9.1 Overview of broadcasting market
9.1.1 Orbit Showtime Network (OSN)
10. Mobile communications
10.1 Overview of Kuwait’s mobile market
10.1.1 Mobile statistics
10.2 Mobile subscriber forecasts
10.2.1 Scenario 1 – higher growth
10.2.2 Scenario 1 – lower growth
10.2.3 Notes on scenario forecasts
10.3 Regulatory issues
10.3.1 Third mobile operator
10.3.2 Mobile Number Portability (MNP)
10.3.3 Roaming tariff reduction
10.3.4 Spectrum refarming for LTE
10.4 Mobile technologies
10.4.1 Analogue
10.4.2 2G / GSM
10.4.3 3G / HSPA
10.4.4 3GPP Long Term Evolution (LTE)
10.5 Major mobile operators
10.5.1 Mobile Telecommunications Co (MTC) / Zain
10.5.2 National Mobile Telecommunication Co (NMT)/Wataniya Telecom
10.5.3 Kuwait Telecom Company (KTC)/Viva
10.6 Mobile voice services
10.6.1 Prepaid
10.6.2 Satellite mobile
10.7 Mobile data
10.7.1 Mobile messaging
10.7.2 Mobile broadband
10.8 Mobile content and applications
10.8.1 Zain
10.8.2 Wataniya
10.8.3 Viva
10.8.4 Mobile TV
11. Related reports
Table 1 – Country statistics Kuwait – 2012
Table 2 – Telephone network statistics – 2012
Table 3 – Internet user statistics – 2012
Table 4 – Fixed broadband statistics – 2012
Table 5 – Mobile statistics – 2012
Table 6 – National telecommunications authority
Table 7 – GDP growth and inflation – 2005 - 2012
Table 8 – Fixed lines in service and teledensity - 1995 - 2012
Table 9 – Internet user and penetration estimates – 1995 - 2012
Table 10 – Fixed Broadband subscribers - 2001 - 2013
Table 11 – Household PC penetration – 2002 - 2012
Table 12 – Mobile subscribers and penetration rates – 1994 - 2012
Table 13 – Mobile operators, subscribers and annual change – June 2012
Table 14 – Mobile operators’ subscribers and market share – 2005 - 2012
Table 15 – Forecast mobile subscribers in Kuwait – higher growth scenario – 2015; 2020
Table 16 – Forecast mobile subscriber in Kuwait – lower growth scenario – 2015; 2020
Table 17 – Zain Group subscribers, revenue and profit – 2002 - 2012
Table 18 – Zain Kuwait revenue, income, ARPU and active customers – 2005 – 2012
Table 19 – Wataniya Group subscribers, revenue and profit – 2005 - 2012
Table 20 – Wataniya Kuwait financial data – 2006 - 2012
Table 21 – Wataniya Kuwait subscribers - 2006 - 2012
Table 22 – Wataniya Kuwait quarterly ARPU – 2010 - 2012
Table 23 – Zain pre and postpaid subscribers – 2005 - 2012
Table 24 – Wataniya pre and postpaid subscribers – 2005 - 2012
Table 25 – Zain’s consumer market mobile broadband offerings – October 2012
Table 26 – Wataniya’s consumer market mobile broadband offerings – October 2012
Table 27 – Wataniya Kuwait mobile broadband subscribers - 2010 - 2012
Table 28 – Viva’s consumer market mobile broadband offerings – October 2012
Chart 1 – Kuwait fixed-line and mobile subscribers – 2000 – 2012

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