BMI View: T he Kuwaiti telecoms market is highly lucrative for operators, with high incomes supporting demand for high value services in both the wireless and wireline markets. However, with high penetration rates for mobile services 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 , subscription acquisition opportunities are severely diminished . 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.
The mobile sector recorded robust subscription growth of 12.2% in 2013, but this figure was down from 16.6% in 2012.
Monthly blended ARPU declined to KWD7.8 (USD27.6), down from KWD9.7 a year earlier as intensifying competition has resulted in price erosion.
Key Trends And Developments
In April 2014 the parliament of Kuwait approved the bill to set up an independent telecoms regulator. This has the potential to be a major development for the market, with Kuwait the only GCC state without a separate telecoms regulator. The country's Ministry of Communications (MoC) has been supervising the sector since it was created in 1962. Kuwait first announced plans to establish a telecoms regulator in 2001 but all previous attempts to do so have stalled at various stages of legislation. While we consider the move to establish an independent regulator a positive development, it is worth mentioning that the scope of the supervisory powers or level of independence of the regulator has not yet been made public.
A pro-competition regulator could be a boost for...
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).
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).
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.