BMI View: We have made negative revisions to our mobile forecast outlook in the latest Q117 report update to account for the negative growth in the first nine months of 2016. With mobile penetration rate now falling in a heavily saturated market, Kuwait ' s mobile operators are now focusing on new ways of generating revenue growth. All of the mobile carriers have launched their LTE services, thus stabilizing ARPUs over recent quarters, as well as improving their subscriber mix by offering attractive data bundles on post-paid contracts. Kuwait's Ministry of Communications ' move towards fixed - line privatisation in Q116 could, if reali s ed, enable the sector to attract investment and catch up with Gulf Cooperation Council standards of fibre connectivity .
|Speed To Drive Demand|
|3G/4G & Broadband Subscriptions (2014-2020)|
Latest Updates And Industry Developments
Monthly blended average revenue per user (ARPU) stabilised around USD23.5 in H116 following several years of decline. Despite a boost from data services, ARPU will decline to USD22.6 by the end of 2020.
The mobile market lost over 279,000 subscribers in the first nine months of 2016 with the market ending September 2016 with a total of 7.118mn subscribers, representing a YOY contraction of 4.5%.
While the mobile market has been contracting to the level of Q214 with 7.1mn subscribers in Q316, efforts to migrate customers to higher-value services will result in strong growth in the 3G/4G market, where we project the number of subscriptions to rise to 6.120mn, or 87.31% of total mobile subscriptions, by 2020.
The broadband market also holds significant growth capacity, with penetration remaining low considering income levels in Kuwait and in a regional context. We forecast the market reaching 1.025mn subscriptions and a 23.73% penetration rate by the end of 2020.
Three key trends are emerging in Kuwait in response to intense competition. Operators are looking to improve customer services, to increase data usage and to expand the range of non-voice and enterprise-facing solutions. We expect these to remain the dominant trends over the coming years.
The Kuwait Telecommunications Report features BMI Research's independent industry forecasts on the future strength of Kuwait's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Kuwait Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Kuwait.
- Benchmark BMI's independent telecoms industry forecasts for Kuwait to test other views - a key input for successful budgeting and strategic business planning in the Kuwaiti telecoms market.
- Target business opportunities and risks in Kuwait's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Kuwait.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
BMI Industry Forecast Scenario
Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
- Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
- Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.
BMI’s Telecommunications Risk Reward Index
BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:
- Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
- Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.