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Kuwait mobile market: Competitive industry
Kuwait - Telecoms, Mobile, Broadband and Forecasts - a new market research report on 2014-04-17 03:33:01
Like the other countries in the Gulf Region, Kuwait is one of the wealthiest countries in the Middle East due to its abundance of natural resources such as oil. Kuwait´s government is heavily involved in the economy, largely due to its control of the oil industry. A similar situation exists in the telecom sector due to the lack of market liberalisation. Not only does Kuwait not have an independent regulator, the Ministry of Communications (MOC) is both the regulatory entity and also the operating entity for fixed-line services.
During June 2013 a draft law was passed to establish a telecoms regulator. Market competitors have long called for the establishment of separate regulatory authority to ensure fair competition.
Internet services are available throughout the country, with four major ISPs competing with each other. Underinvestment in infrastructure has hindered market development, with maximum speeds of 8Mb/s available on the government owned fixed line copper network. Alternative access network platforms such as FttH, WiMAX and mobile have been deployed, with the latter gaining much traction in the market given the market presence and abilities of the mobile network operators.
Recognising the potential of applying ICT to improve both social and economic development, Kuwait has taken steps to develop a digital economy; national level policies for e-health and e-government have been developed, with a number of services available online.
Kuwait possesses a competitive mobile market as evident by current penetration levels. Services are offered by Zain, Wataniya and Viva. Penetration levels rose significantly after Viva entered the market. The introduction of Mobile Number Portability in June 2013 will further improve competition.
LTE services have been launched and are being used to underpin mobile broadband offerings. Mobile operators are well positioned to profit from mobile broadband, given the superior advertised download speeds offered relative to fixed broadband ISPs, the sizeable potential broadband subscriber market, existing brand recognition, distribution channels and customer base.
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