|
|
 |
|
Viewing report
|
|
|
|
Kuwait Telecommunications Report Q2 2011
Business Monitor International, April 2011, Pages: 78
Business Monitor International's Kuwait Telecommunications Report provides industry professionals and strategists, corporate analysts, telecommunication associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Kuwait's telecommunications industry.
BMI’s Q211 update on Kuwait’s telecommunications market contains latest operational data from market leader Zain and second-ranked Wataniya, which has led to a slight revision in forecasts for the mobile market. However, latest data on the fixed-line, internet and broadband markets by the Ministry of Communications (MoC) still relates to 2009, leading to the retention of current growth expectations. The five-ear forecasts extend to the end of 2015.
Zain experienced a net loss of subscribers for the second consecutive quarter in Q410, although to a lesser degree than in the previous quarter. The operator revealed a loss of 1,000 subscribers from its customer base to end Q410 on a total of 1.870mn. Zain's relatively weak performance in H210 tempered overall rate of growth in 2010 which was 1.7%, considerably less than 3.9% recorded in 2009. This reduced its market share to 42.5% at the end of 2010, down from 46.1 a year earlier. Zain's net loss could partly be due to discounting of customers that fall out of the 90-day active definition the operator uses.
By contrast, Wataniya made a net gain of 61,000 customers in the Q410, bringing total net additions in 2010 to 242,000 or growth rate of 15.7%. Wataniya had 1.780mn subscribers by December 2010, giving it a 40.4% market share. BMI notes there was just 2.1pps difference between Zain and Wataniya at the end of 2010. If current subscriber growth trends for both operators continue in 2011, Wataniya could assume market leadership by the end of 2011. Meanwhile, local media reports citing Viva officials suggest the third-ranked operator had about 700,000 subscribers at the end of September 2010. This was considerably lower than previously estimated. This report has, therefore, revised the subscriber estimates for the operator in 2010. This report now estimates that Viva had about 755,000 subscribers by the end of December 2010, giving it a market share of just over 17%.
On March 20 2011 Etisalat announced it is stopping a six-month, US$12bn bid to buy a 46% stake in Kuwait-based Zain Group, citing issues raised by its due diligence into Zain and the 'non-unanimous agreement' among Zain shareholders. Meanwhile, the Zain deal to sell its 25% stake in Saudi Arabia unit Zain STC for US$950mn to Saudi-based investment firm Kingdom Holding and Bahraini incumbent operator Batelco is hanging in the balance following reports on April 6 2011 that Zain suspended talks indefinitely with the consortium. The divestment of the stake was a key requirement for its deal with Etisalat to gain regulatory approval.
The MoC plans to disconnect users for failing to pay their overdue landline bills by April 2011. This follows similar exercises in 2009 and 2010 which, in addition to fixed to mobile substitution, resulted in a decline in fixed-line subscriptions during the past two years. The MoC which currently acts as regulator and sole provider of fixed line voice services in the country has announced plans to privatise the fixed line sector by 2010 as it seeks to help Kuwait achieve its goal of becoming an economic and financial hub. The privatisation of Kuwait Public Telephone (KPT) and the possible introduction of new competition could breathe greater life into the fixed-line market, which is currently suffering from a decline.
Similarly, greater competition is required in the internet and broadband sectors. However, the government revealed in November 2010 that it had suspended the issuance of licences for new internet service providers (ISPs) until a separate telecoms regulator from the MoC could be established in the country. Currently, as this report has stated, the interests of the MoC are in conflict as it is the sole provider of fixed line services. An independent regulatory body could be charged with granting licences and setting the relevant standards and conditions required to encourage greater competition.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
