Telecoms and IT

Ever since Kuwait opened its mobile market to further competition by granting a licence to a third mobile operator, Viva, in 2008, competition has ratcheted up. However, while the number of mobile subscribers has also increased, from 4.09m in first-quarter 2010, to 4.59m registered users in 2011, operator revenues have declined. With tightening margins, mobile internet and value-added services have become the primary battleground in the fight for revenues. Blackberry, iPhone and iPad promotions, for example, are now targeted at the youth and high-income segments of the population. Internet penetration rates have increased, yet at just 39%, the coming years should see many opportunities for entrepreneurs to deliver specialised online content to Kuwaitis. However, the government wishes to ensure that internet service providers bring prices down over time as the market develops, and is considering the introduction of a sector regulator.