GCC telecom report 2013

With an estimated 12mn mobile subscribers and 1.26mn fixed lines at the end of 2011

However, while there is active competition among the operators in the mobile segment, the fixed-line business is segmented in such a way that Du mainly caters to newer developments in Dubai (e.g. Downtown and JLT), while Etisalat serves the remainder of the country. However, the regulator and both telecom operators are currently in process of implementing network sharing, whereby customers will have open choice between the two operators for fixed-line services as well. Additionally, mobile number portability (MNP) is also currently under review in the UAE, which could further add to competition in the country.

These areas include Dubai Marina, JLT, Downtown, DIFC, Tecom, Dubai Media City, Palm Jumeirah, The Greens, Emirates Hills and Arabian Ranches among others. Consequently, Etisalat and Du have not been competing for fixed telephone and broadband services in the UAE and the landscape remains a non-overlapping duopoly.

At the time of writing, the latest data from Zain and Wataniya relate to the end of March 2012 while the latest data published by VIVA relate to end of December 2011.

4.962mn mobile subscribers in Kuwait at the end of December 2011.

11.5% during 2011

We are waiting for the final approval of the shareholding structure that the government wants to run. We expect to have this by the end of the year,

Vodafone Qatar does not expect its fixed line services to be fully operational until 2011 or 2012 after delays in receiving approval for the country’s second national operator (SNO) licence that it won in 2008, the company’s chief executive said, as reported by Dow Jones Newswires

This followed the first-ever quarterly contraction of the Qatari mobile market in Q211.

By 2016, we believe the mobile penetration rate will reach 189.3%, representing a subscriber base of 3.128mn.

We now expect the number of fixed-line subscribers to reach 304,000 subscribers at the end of 2011, reflecting a penetration rate of 19.8%.

2.794mn mobile subscribers in Qatar at the end of December 2011. This was a penetration rate of 149.4%, down from 157.1% in 2010

positive growth over the next five years, albeit at a slower rate, mobile penetration is forecast to trend downwards as population growth outstrips net additions. By

Operations in Kuwait were “negatively impacted by stronger competition” in the quarter, Qtel said in the statement. The company is now offering to purchase shares it doesn’t own in Kuwait’s National Mobile Telecommunications Co., also known as Wataniya Telecom. It submitted an offer document for approval from the Kuwait Capital Markets Authority, which may lead to an offer for all the issued shares of Wataniya, it said. Qtel offered to pay about 640 million dinars ($2.3 billion), or 2.67 dinars a share, to purchase the stake, Al-Rai newspaper reported July 1, citing unidentified people familiar with the matter. Wataniya competes with Mobile Telecommunications Co., Kuwait’s largest mobile phone operator, known as Zain. (ZAIN)

revenues of AED8.01 billion

Mobile data has also been vital to du's mobile revenue growth and its importance is set to continue in its future strategy; in the third-quarter of 2012, revenue generated from mobile data totalled AED323 million, up 93.4% y/y. Mobile data revenue now accounts for 16.7% of du's total mobile revenue,  up from 9.8% at the same time last year. The continued growth of mobile data revenue will be crucial, particularly as voice revenues come under pressure, whilst the country's large foreign workforce increasingly utilise internet-based services, to the detriment of international call and text services.

y 7% y/y to 1.1 million, though this decline was due to customers migrating to the company's double-play and triple-play services, which totalled 0.48 million, up 61% y/y

While affirming the UAE telco's long-term foreign currency issuer default rating (IDR) at 'A+' with a stable outlook, Fitch said the major concern facing the company was "increasing competition in the UAE market".

With the mobile penetration rate in the UAE hovering near 200 per cent - about two devices per resident - growth in the sector is slowing.

post-paid promotions such as the Elite Plan helped the rival company du to add 159,800 mobile customers in the third quarter. The smaller operator has about 37 per cent of the market.

Protecting that revenue stream is becoming increasingly important to Etisalat as it pursues a foreign expansion strategy, recently offering $11bn for a 51 per cent stake in the Kuwaiti operator Zain.

The UAE’s second biggest telecom firm said first-quarter revenues surged 20.1 per cent to Dh2.4 billion compared to Dh2 billion in the same quarter last year. In a statement on Thursday, the company said mobile revenue soared 21.8 per cent to Dh1.9 billion while mobile data revenue grew to 15.5 per cent of mobile revenues. Mobile data revenues more than doubled to Dh297 million from Dh141 million in the first quarter of 2011, representing approximately 15.5 per cent of total mobile revenues.

Du, formally known as Emirates Integrated Telecommunications Company, made a net profit of Dh325.5 million in the three months to June 30, up from Dh207.2 million in the same period last year. This is after paying royalty fees of Dhs325.5 million.

du’s share of the UAE mobile subscribers was 46.5 per cen

reported net profits of BD60.3 million ($160m), a decline of 24.6% compared to the previous year’s profits of BD80 million

The group’s gross revenues stood at BD304.7 million for the year, a decline of 6% compared to the telco’s 2011 revenues of BD327 million

brighter news, Batelco continued to increase its proportion of revenues and earnings from outside Bahrain, a key pillar of its diversification plans.

restructuring operations and outsourcing jobs

may see its earnings suffer as a result of the UAE government raising the percentage of royalty fees

percent share of the UAE mobile phone market

In its home market, the kingdom's former monopoly is facing increased competition from Mobily and Zain Saudi and handed the reins to a new chief executive last year to renew its focus on domestic operations, which account for two thirds of the company's revenue.

Between 2006 and 2011 STC suffered a 40% drop in annual profit, after the market was opened to competitors Mobily (in 2005) and Zain (in 2008).

fixed-line offerings by packaging phone, TV and Internet services

Based on data from Zain and Wataniya, there were net additions of roughly 205,000 subscribers - or growth of 4.9% q-o-q to reach 4.696mn subscribers

Zain accounted for majority of new subscribers with 64.9% market share of total net additions in Q211. Wataniya had an estimated share of 22.9% of net additions while Viva had 12.2%

Mobile penetration is expected to reach 169% by the end of 2011 and 187.2% by 2015

4.962mn mobile subscribers in Kuwait at the end of December 201