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. We therefore retain our view that Kuwaiti operators must continue to diversify their services and revenue streams away from the traditional voice market. We expect mobile data services to b e the key source of alternative revenue growth, 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 .
Despite high penetration the mobile market continues to report robust subscription growth. Total subscription increased 17.9% y-o-y to 7.5mn at the end of September 2014.
Monthly blended ARPU declined to KWD6.9 (USD23.7) in Q314, compared to KWD7.8 at the end of 2013, as Zain and Ooredoo respond the disruptive influence of VIVA through price competition.
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 798,000 subscriptions and a 23% penetration by the end of 2014.
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 strategies for the market.
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 threat from VIVA and was slow to respond with strategies to defend its market share and sustain revenue growth. As a result, in September 2014...
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.
- 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 ICT, fixed-line, mobile (including 3G), 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.
Business Environment Rankings
BMI's Telecommunications Business Environment Rankings provides a country-comparative Risk-Reward Rankings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.
The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.
BMI Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry indicators (see list below) 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; mobile phone subscribers/100 fixed line subscribers.
- Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.
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, WiMAX, IPTV, pay-TV, LTE and value-added 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 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. 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.