Business Monitor International


Kuwait Telecommunications Report

Published 03 September 2014

  • 91 pages
 
$1,295.00
Kuwait Telecommunications Report

BMI View: T he Kuwaiti telecoms market remains one of the most attractive in MENA , with high incomes supporting demand for high value services in both the wireless and wireline markets. However, there is downside, with high penetration rates precluding rapid subscription growth, and a government c lamp down on expatriate workers in 2013, with plans to cut its 1.8mn expatriates by 100,000 annually over the next decade , could father dampen this growth avenue for operators . This poses a downside risk to our subscriptions growth outlook on the back of a higher negative net migration rate. In view of this development, we reiterate our view that Kuwaiti telecoms services providers, particularly the country's three mobile operators, must diversify their services portfolios and, consequently, revenue streams to offset the expected decline in revenues from traditional services on the back of market saturation and intense competition.

Key Data

  • Despite high penetration the mobile market continues to report robust subscription growth. Total subscription increased 14% y-o-y to 7.25mn at the end of June 2014.

  • Monthly blended ARPU declined to KWD7.8 (USD27.6) in 2013, down from KWD9.7 a year earlier, and operator data for H114 indicates a continued dynamic of price erosion as Zain and Ooredoo respond the disruptive influence of VIVA.

  • The broadband market holds significant growth capacity, with penetration remaining low considering income levels in Kuwait and in a regional context. BMI estimates a total of 697,000 subscriptions at YE13, equal to penetration of 20.7%.

Key Trends And Developments

As operators face price erosion in Kuwait due to operator competition and a prospective decline in traditional voice and SMS services they are exploring other revenue channels to strengthen financial performance. One area BMI believes is fertile ground is the mobile payment space, a trend that is beginning to gain traction in both developed and emerging...

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

Executive Summary

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 Ratings

BMI's Telecommunications Business Environment Ratings provides a country-comparative Risk-Reward Ratings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.

The ratings 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-2017 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).

Regulatory Environment

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.

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.

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