Kuwait Telecommunications Report

Published 26 February 2015

  • 92 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Kuwait Telecommunications Report

BMI View: Despite its small size, Kuwait's telecoms market remains attractive, as high income levels support strong demand for high value mobile and wireline services. However, intensifying price competition between the country's three mobile operators an d the government's clamp down on expatriate workers pose downside risks to both value and subscriptions growth in the market. Operator data from end of 2014 reinforces BMI 's view that mobile content and data are steadily increasing as operator revenue drivers , with the launch of 4G/LTE networks in 2013 and 2014 creating opportunities for telecoms operators to partner with content providers to boost take-up and usage of 3G and 4G services.

Key Data

  • Despite high penetration the mobile market continues to report robust subscription growth. Total subscription increased 17.9% year-on-year (y-o-y) to 7.5mn at the end of September 2014.

  • Monthly blended average revenue per user (ARPU) declined to KWD6.9 (USD23.7) in Q314, compared to KWD7.8 at the end of 2013, as Zain and Ooredoo respond to the disruptive influence of VIVA through price competition.

  • Data from ITU suggests that fixed-line connections reached 508,000 in 2013, which is roughly in line with BMI's estimates. Meanwhile, ITU estimated fixed-line penetration at just 15.1% in 2013, down from 19.2% in 2008.

  • The broadband market holds significant growth capacity, with penetration remaining low considering income levels in Kuwait and in a regional context. BMI forecasts the market to reach 889,600 subscriptions and a 25% penetration by the end of 2015.

Key Trends And Developments

VIVA's impressive growth in Kuwait's market has considerably altered market dynamics and has forced both Zain and Ooredoo to revise their local strategies.

Ooredoo has struggled the most in the mobile market since the arrival of VIVA in late 2008, falling behind the new entrant by subscriber market share in 2013. In BMI's view, Ooredoo underestimated the...

Table of Contents

BMI Industry View
7
SWOT
8
SWOT
10
Political SWOT
12
Economic SWOT
13
Business Environment SWOT
14
Industry Forecast
16
Mobile
16
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (Kuwait 2011-2018)
16
Wireline
18
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Kuwait 2011-2018)
18
Industry Risk Reward Ratings
21
Table: MENA Telecoms Risks/rewards ratings, Q314
24
Market Overview
25
Mobile
25
Regional Perspective
25
Table: Kuwait Mobile Market Regional Comparison, 2013
26
Key Developments
26
Market Growth
27
Market Shares And Net Additions
28
Subscriber Mix
29
ARPU
30
Networks
31
Mobile Content
33
Table: Selected VAS
36
Table: Mobile Contract Wins
37
Mobile Operator Data
38
Table: Market Overview
38
Table: Zain
38
Table: Wataniya
39
Table: VIVA
40
Mobile Content
40
Wireline
45
Recent Developments
45
Fixed-Line
45
Broadband
46
Wireless Broadband
49
IPTV
50
Table: Wireline Contract Wins
50
Industry Trends And Developments
51
Regulatory Development
53
Table: Kuwait - Regulatory Bodies & Their Responsibilities
53
Competitive Landscape
58
Table: Key Players: Kuwait Telecoms Market
58
Table: Selected Operators Financial Indicators (USDmn)
58
Company Profile
59
Zain
59
Wataniya Telecom
64
VIVA Kuwait
69
Regional Overview
72
Table: OSN Recent Content Developments
73
Demographic Forecast
77
Table: Kuwait's Population By Age Group, 1990-2020 ('000)
78
Table: Kuwait's Population By Age Group, 1990-2020 (% of total)
79
Table: Kuwait's Key Population Ratios, 1990-2020
80
Table: Kuwait's Rural And Urban Population, 1990-2020
80
Glossary
81
Table: Glossary Of Terms
81
Methodology
83
Industry Forecast Methodology
83
Sources
84
Risk/Reward Ratings Methodology
85
Table: Risk/Reward Ratings Indicators
86
Table: Weighting Of Indicators
87

The Kuwait Telecommunications Report features Business Monitor International (BMI)'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.

Key Benefits

  • 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).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the ARPU, fi xed-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).

Regulatory Environment

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.

Company Profiles*

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.

Sources

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.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc