Kuwait Telecommunications Report Q3 2011
Business Monitor International, July 2011, Pages: 85
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 Q311 update on Kuwait's telecommunications market contains latest operational data from market leader Zain and second-ranked Wataniya, which resulted in a slight revision in forecasts for the mobile market. Our fixed-line and internet analysis and forecast remains largely unchanged as latest official data by the Ministry of Communications (MoC) still relates to 2009. Meanwhile, we introduced mobile ARPU forecasts for the Kuwaiti mobile market based on the weighted average of available ARPUs in the mobile market.
After two consecutive quarterly losses in H210, market leader Zain recorded positive growth in Q111, albeit muted with net additions of just 17,000 subscribers. Second-ranked Wataniya recorded its first ever quarterly subscriber net loss during Q111. Wataniya lost 21,000 subscribers or 1.2% of its subscriber base. The slow growth of Kuwait's two biggest mobile operators since mid-2010 supports BMI's view of increasing saturation in the mobile market resulting in slower growth. In future, we expect mobile operators to focus on revenue growth using higher value services. This will largely depend on the roll-out of mobile data networks and the migration of subscribers onto postpaid contracts. Kuwait's three mobile operators are investing significantly in the roll-out of advanced data networks. However, only Zain seems to have succeeded in building a relatively large postpaid subscriber base. Wataniya's postpaid subscriber base contracted considerably between June 2010 and March 2011. Meanwhile, BMI believes third-ranked Viva's subscriber base is mainly prepaid, based on its value-led strategy.
Zain's superior subscriber mix is reflected in its high ARPU, which was US$51 at the end of Q111. notes this is one of the highest in the region. Our maiden
ARPU forecast for the Kuwaiti mobile market is based on the weighted average of ARPUs from Zain and Wataniya, representing about 81.2% of the mobile market by subscribers. While we expect competition between the three mobile operators and the saturating market to increase downward pressure on ARPU, we expect operators to achieve ARPU stability through premium offerings and value-added services.
In June 2011 Kuwait's Ministry of Communications (MoC) urged local internet service providers (ISPs) to reduce their tariffs to boost competition in the sector. Further, the ministry's undersecretary, Abdulmuhsen al-Mazidi, said the MoC intends to resolve internet tariff-related issues soon. However, BMI believes greater competition is required in the internet and broadband sectors. 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 we have 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.
Executive Summary
SWOT Analysis
Kuwait Mobile SWOT
Kuwait Wireline SWOT
Kuwait Political SWOT
Kuwait Economic SWOT
Kuwait Business Environment SWOT
Business Environment
Middle East And North Africa
Middle East And North Africa Q311 Telecoms Business Environment Ratings
Kuwait
Industry Forecast Scenario
Mobile
Table: Telecoms Sector – Mobile – Historical Data & Forecasts
ARPU
Table: Monthly Blended ARPU
Fixed Line
Table: Telecoms Sector – Fixed Line – Historical Data & Forecasts
Internet
Table: Telecoms Sector – Internet – Historical Data & Forecasts
Market Data Analysis
Mobile
Table: Kuwait Mobile Market Share, Q410
Subscriber Mix
ARPU
3G
Mobile Contract Wins
Table: Mobile Contract Wins
Mobile Content
Country Outlook
Mobile Payments
Value-Added Services Timeline
Table: Selected VAS
Mobile Operator Data
Table: Kuwait Mobile Market Overview
Table: Zain (formerly MTC)
Table: Viva
Table: Wataniya
Fixed Line
VoIP
Internet
WiMAX
IPTV
Wireline Contract Wins
Table: Wireline Contract Wins
Regulatory Environment & Industry Developments
Table: Kuwait – Regulatory Bodies & Their Responsibilities
Legislation And Market Liberalisation
Regulation
Licensing And Spectrum
Industry Developments
Etisalat Opts Out Of Zain Deal
Competitive Landscape
Key Players
Table – Key Players: Kuwait Telecoms Markets
Table – Selected Operators Financial Indicators
Company Monitor
Ericsson
Table: Ericsson Quarterly Net Sales By Division, SEKmn
Company Profiles
Zain (formerly MTC Group)
Wataniya Telecom
Regional Telecommunications Penetration Overview
Fixed Line
Table: Regional Fixed-Line Penetration Overview
Mobile
Table: Regional Mobile Penetration Overview
Broadband
Table: Regional Broadband Penetration Overview
Country Snapshot: Kuwait Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 1997-2006
Table: Consumer Expenditure, 2000-2012
Glossary Of Terms
Table: Glossary Of Terms
BMI Methodology
How We Generate Our Industry Forecasts
Table: Key Indicators For Telecommunications Industry Forecasts
Telecoms Business Environment Ratings
Risk/Reward Ratings Methodology
Table: Ratings Indicators
Weighting
Table: Weighting Of Indicators
Sources
- Ericsson
- Zain (formerly MTC Group)
- Wataniya Telecom
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