Overview of Telecommunications Sector in Kuwait Article

Overview of Telecommunications Sector in Kuwait - Article ExampleThis has worked against Wataniya Telecom, for example, the conjunction had to drop charges on incoming calls. In early 2009, there was a shift from mobile-to-mobile calls because charges for calling from wintry lines to mobile were abolished. This has resulted in the APRU levels declining and tighter competition prompting consumer price reduction. Telecoms revenues dropped to KD475.5m ($1.66bn) in 2009 from KD476m ($1.66bn) in 2008 though there was a 31.4% attach in net profits from KD82.4m ($288m) in 2008 to KD108.3m ($378.5m), 2009 (Business Management International 2010) Even as prices go down, the Telecommunications sector in the country is experiencing elasticity and is expecting further growth in subscriptions. There has also been an change magnitude use of cell phones due to lower tariffs. This puts the sector in position to make up for the decreased revenue through increased utilisation of value-added serv ices. The main focus in this sector now is the increase of broadband and mobile internet services. One telecommunications company in this sector, Wataniyas recently acquired revenues of about 43%, and is a very important revenue generator for the country. At the end of 2009, some other companies in the sector were also very profitable. Telecom held 39% of the Kuwait market as compared to 15% for oral examination and 46% for Zain, which are all companies in Kuwait telecommunications sector. Telecom also took about 30% of the mod telecommunications subscriptions, as compared to 61% for Viva. The Telecommunications sector in Kuwait bundles its services, unlike other telecommunication companies. However, they sell handsets one after another except for Blackberry and iPhone which are under promotion. Customers are given Blackberry and iPhone handsets for free after acquiring a pre-paid subscription and operating on pay-as-you-go basis. This has led to increased usage of mobile interne t, therefore, a source for revenue from non-voice services.