Vodafone Maintains Contract Edge

Kuwait's MTC-Vodafone maintained its postpaid edge in 2003, while Wataniya remains a predominantly prepaid service provider, according to a report from the Arab Advisors Group. With the Kuwaiti market approaching saturation, the two operators have expanded their operations outside Kuwait, establishing themselves as strong regional operators. MTC reversed the 2002 results in 2003 and grabbed 57% of total market additions in 2003. This has moved its market share from 53% in 2002 to 54% in 2003.

There are 1.7 million mobile subscribers in Kuwait translating into a penetration rate of 74%. The high penetration is the healthy result of the duopoly competition between Kuwait's two mobile operators, MTC-Vodafone and Wataniya Telecom. As the competition for market dominance in Kuwait continues, and with the cellular market nearing saturation, the operators have been scrambling to achieve the technological edge to win over customers. Kuwaiti mobile users already enjoy services such as online bill payment, GPRS services that offer downloads of music and games, and MMS services.

"Kuwait remains a predominantly prepaid market, with prepaid subscribers constituting almost 80% of cellular users. Wataniya holds the edge in the prepaid market, with a 53% market share. MTC-Vodafone holds a dominant 81% of the postpaid market share." Yaman Al Jundi, Arab Advisors Group's research analyst wrote in the report. "The mobile market grew by 30% in 2003. MTC-Vodafone lost postpaid subscribers for the third straight year, recording a 4% drop in 2003. Wataniya recorded an impressive 90% growth in postpaid subscribers, but its overall postpaid subscriber base stands at only a quarter of MTC-Vodafone's postpaid subscribers base." Mr. Al Jundi added.

The Arab Advisors Group believes the Kuwaiti mobile market to be the model for healthy competition in the Gulf region. The cellular penetration in Kuwait jumped from 28% in 2000 to reach an impressive 74% in 2003. The result of the competition has been a race to offer improved value-added services and technologies, which ultimately will benefit the individual mobile user, as well as the operators themselves, since these services will surely enhance revenues and profits."

Posted to the site on 19th April 2004