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Kuwait Telecommunications Report Q4 2009Product Type: Market Research ReportPublished by: Business Monitor International Published: October 2009 Product Code: R302-8532 Description BMI’s latest update on the Kuwaiti telecoms market contains new data on the size of the country’smobile telephony market as of mid-2009. Along with data published by Kuwait’s two largest mobileoperators, Zain and Wataniya, our assessment of the market includes estimates for the size of newcomerViva’s mobile customer base at the end of June.In the first half of 2009, Kuwait’s mobile customer base expanded by almost 12%. Growth in the first halfof 2009 was significantly higher than at any time in the previous year. One of the biggest factors behindthe upsurge in Kuwaiti mobile customer growth has been the launch of commercial services by SaudiTelecom’s Kuwaiti mobile business Viva. Since the launch of commercial services in December 2008Viva has proceeded to secure more than 10% of the entire mobile market. Although Viva’s CEOpreviously stated that Viva’s goal was to attract 300,000 subscribers within its first year of operations, theoperator already appears to have exceeded this target. According to the most recent reports, Viva’s goal isto reach a 20% market share by the end of 2010. BMI’s forecast for the Kuwaiti mobile subscriber market anticipates growth of over 22% for 2009 as awhole. By the end of the year, we predict that penetration will reach 122%, up from 110% in mid-2009.Continued growth over and above 100% reflects the prevalence of multiple SIM owners in the country’smobile market. Our forecast also accounts for a certain number of inactive prepaid users within the sector. Our forecast for the number of Kuwaiti internet users and broadband subscribers remain unchanged thisquarter. This follows the introduction of new forecasts for both of these markets in our previous update. In July, it was reported that Kuwait’s Ministry of Communications (MoC) had suspended the licences of anumber of ISPs providing wireless internet and WiMAX services. Several reasons have been given forsuspending the licences. These include, in some cases, the lack of an appropriate licence for the servicesoffered; they also include a failure to implement services within a designated time period and the failureto pay levies owed to the government as per existing agreements. The MoC is currently preparing tosubmit a fresh tender for wireless internet and WiMAX services in the country. Another significant development in the Kuwaiti telecoms sector was the news that shareholders in thecountry’s Zain Group had reached a preliminary agreement with a consortium to sell a 46% stake in thecompany. The Abu Dhabi Investment Authority (ADIA) is reportedly part of the consortiumnegotiating the deal, thought to be worth around US$15bn. Meanwhile, in our latest set of business environment ratings for the Middle East, Kuwait has seen afurther downward slippage for its Telecoms Market rating. The lower rating largely reflects the weakermobile average revenue per user (ARPU), which has resulted from the onset of increased competition. Table of Contents
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