< PreviousTHE NETWORK OF THE FUTURE Kuwait’s three MNOs have begun offering 5G services, pioneered 5G roaming services and are increasing broadband penetration K uwait’s three MNOs are offering LTE services and exploring the 5G landscape, with Zain Kuwait, Viva Kuwait and Ooredoo Kuwait already rolling out 5G access, and expand- ing their broadband networks. Kuwait has an extremely high mobile penetration rate, currently standing at around 90 per cent, one of the highest in the world, according to GSMA Intelligence. The country is also connected to seven submarine cables. This high penetration rate and strong mobile infrastructure driven by the three MNOs, means that Kuwait can easily scale up its 5G services. According to a report by bud- de.com, entitled Kuwait - Telecoms, Mobile and Broadband - Statistics and Analyses, in 2019 the research firm was seeing 5G de- velopments accelerate in Kuwait, with the operators beginning to formulate offerings around 5G service packages and devices. However, according to the report, the country’s fixed broadband penetration is one of the lowest in the Middle East region. The Kuwait government is focusing on building fixed broadband networks and this sector also offers a potential future growth opportunity for both the operators and government. Improvements to the fixed broadband infrastructure will assist to grow markets such as e-commerce, along with smart infrastructure development, start-ups and M2M. Kuwait’s MNOs are de- veloping both infrastructure and services. In March 2017 Zain Kuwait and VIVA, in conjunction with Huawei and GSMA, successfully launched a VoLTE intercon- nection in Kuwait, according to Reuters. The telecoms sector boom comes as the right time, as the nation looks to move away from just relying on oil revenues. According to Reuters, The National Bank of Kuwait recently detected a year-on-year growth in profit, contributed by the tel- ecom sector. The launch of the new Com- munication and Information Technology Regulatory Authority (CITRA) took place in February 2016 and in 2017 continues to establish its role, according to Reuters. KUWAIT DEVELOPS WHAT ARE KUWAIT’S MNOS DOING? • Ooredoo, Viva, and Zain are rolling out 5G services • All three operators have upgraded networks to support faster downlink speeds • All three MNOs are increasingly focused on mobile content and applications Kuwait has an advanced mobile network infrastructure with very high mobile penetration rates. Photo by JC Gellidon on Unsplash 40www.commsmea.com COUNTRY FOCUS KUWAIT CommsMEA December 2019ZAIN GROUP REPORTS 10 PER CENT NET INCOME GROWTH IN Q3 2019 VIVA KUWAIT ANNOUNCED A 4.3 PER CENT GROWTH IN REVENUE FOR Q3, 2019 OOREDOO KUWAIT REPORTS KWD 470 MILLION REVENUE FOR NINE MONTHS ENDED SEPT 30 Maintaining its market share, Zain Group’s flagship operation in Kuwait saw its customer base serve 2.7 million people. It remains the Group’s most profitable operation with revenue for 9M 2019 remaining stable at KD 248 million ($818 million), EBITDA increasing 17 per cent to KD 98 million ($322 million), representing an EBITDA margin of 39 per cent. Net income increased an impressive 10 per cent to reach KD 66 million ($217 million) for 9M 2019, with data revenue growing eight per cent Y-o-Y and accounting for 37 per cent of total revenue. Zain Kuwait’s launch of 5G services enhanced the operator’s position on the world telecom map as the first mobile operator in the region to offer the technology commercially, bolstering its transformation to a digital services provider. Through this launch, Zain Kuwait offers a smart lifestyle for consumers and boosts the business sector in ways that empower the achievement of the ambitious New Kuwait 2035 Vision. Zain Kuwait launched 5G roaming services between Kuwait and Saudi Arabia, with download speeds reaching as high as 500 Mbps for both outbound and inbound roaming. Zain’s operation in Kuwait announced the commercialisation of 5G in May. VIVA Kuwait, a subsidiary of STC Group, announced its financial results for the nine-month period ended 30 September 2019; where VIVA’s Revenues reached KD 215.6 million, and the company’s net profit reached KD 31.6 million for the nine-month period ended 30 September. “The company’s financial results grew during the third quarter compared to the second quarter of this year, third quarter revenues reached KD 76.1 million compared to KD 72.9 million during second quarter of 2019, a growth of 4.3 per cent, EBITDA grew by 11 per cent reaching KD 21.4 million in the third quarter of 2019, while, the net profit for the same period increased to reach KD 11.7 million compared to KD 10.3 million for the second quarter of 2019, a growth of 13.3 per cent. VIVA was able to achieve this growth during the third quarter of 2019 despite the continued competition witnessed in the Kuwaiti telecom market which is one of the most competitive markets in the region, where VIVA was able to achieve outstanding levels of revenues in addition to enhancing the operational efficiency to ensure generating value and positive return to our shareholders. VIVA has accomplished these results due to the implementation of the digital transformation strategy and providing integrated solutions for both consumers and enterprises, and has driven its business to new areas of sustainable growth, through a series of innovative initiatives which aims to improve operational efficiency, customer service, and offering the best services and products that cater to its customer’s needs, as well as invested in the advanced 5G framework with the biggest scope over the country,” said Maziad Nasser Al Harbi, VIVA CEO. VIVA managed to achieve revenues KD 215.6 million during the nine-month period of 2019, while the EBITDA recorded a growth of 11.3 per cent to reach a KD 59.5 million during the nine-month period of 2019 compared to KD 53.4 million for the same period in 2018. EBITDA margin reached 28 per cent during the nine-month period of 2019 compared to 25 per cent during the nine-month period of 2018. As a result, VIVA reported a net profit of KD 31.6 million (earnings per share of 63 fils) during the nine-month period of 2019 with a profit margin of 15 per cent. VIVA’s customer base reached 2.01 million at the end of September 2019. “I am pleased to report a robust set of results for the first nine months of 2019, with Net Profit up 45 per cent to KWD 23.5 million for Ooredoo Kuwait (NMTC). Growth was driven primarily by our strong focus on operational efficiencies, benefitting from leveraging group synergies, technology and improved resource management. Consolidated customer base grew to 27 million at the end of the first nine months of 2019, supported by our ongoing investments to enhance customer experience and the development of innovative solutions that are tailored to the needs of a new generation of technological savvy users,” said Sheikh Saud Bin Nasser Al Thani, chairman of the Board of Directors. “Revenues remain under pressure due to geopolitical and macroeconomic factors, including currency depreciation in Tunisia and Algeria, in addition to intense price competition in Kuwait. NMTC reported revenues of KWD 470 million during the first nine months of 2019 compared to KWD 502 million for the same period last year. EBITDA of the Ooredoo operation in Kuwait continued to improve, despite the decreasing revenues, reflecting the success of our efficiency programme,” Sheikh Saud Bin Nasser Al Thani said. 41www.commsmea.com COUNTRY FOCUS KUWAIT CommsMEA December 2019 Got something to say? If you would like to be featured in Backchat, please message: georgina.ford@os.itp.com Nabil Ben Soussia, vice president – Maritime, IEC Telecom Group looks at maritime trends for the future The future of smart connectivity in maritime Revenue’s projected for maritime ser- vice providers is estimated to exceed $2.5 billion by 2025, largely driven by the increased demand for on-board connectivity. The maritime industry can expect to see the new trends emerge in smart connectivity. Trend 1 IoT will dominate the market With the rapid adoption of IoT con- nectivity, comes a slew of new data- based revenue opportunities for the maritime industry. With IoT, day-to-day operations at sea, at port and as part of a wider logistics network can be streamlined. Issues can be pinpointed, downtime can be reduced, and pro- cesses can be simplified, changing the face of the industry. Trend 2 Autonomous ships a future reality Autonomous ships can help eliminate human error, reduce crew costs, en- able space efficiencies in ship design and use of fuel. More importantly, this concept can improve the transporta- tion of goods at sea, chartering of vessels and more. Issues concerning liability will need to be considered and dealt with in a number of areas. This includes the concept of duty of care with respect to collisions, salvage operations, limitations of liability for maritime claims etc. Undoubtedly, this concept will continue gaining popular- ity, however the professional com- munity will need to make sure that all these areas are addressed. Published by and Copyright © 2019 ITP MEDIA GROUP FZ-LLC. MEDIA PO Box 500024, Dubai, UAE Tel: + 971 (0)4 444 3000 www.itp.com Offices in Dubai, Abu Dhabi, London and Mumbai ITP MEDIA GROUP CEO Ali Akawi Managing Director Alex Reeve Group Publishing Director Ian Stokes EDITORIAL Editor at Large Georgina Ford Contributors Peter Branton, Kevin Sebastian ADVERTISING Content Marketing Manager Philip Smith Tel: +971 4 444 3637 email: philip.smith@itp.com ITP LIVE General Manager Ahmad Bashour Tel: +9714 444 3549 email: ahmad.bashour@itp.com PHOTOGRAPHY Senior Photographers Efraim Evidor, Adel Rashid Staff Photographers Aasiya Jagadeesh, Ajith Narendra, Fritz John Asuro, Jessica Samson PRODUCTION & DISTRIBUTION Group Production & Distribution Director Kyle Smith Distribution & Warehouse Manager Praveen Nair Production Manager Basel Al Kassem Production Co-odinator Manoj Mahadevan Image Editor Emmalyn Robles CIRCULATION Head of Circulation Vanessa D’souza Circulation Executive Loreta Regencia MARKETING Director of Awards & Marketing Daniel Fewtrell Marketing & Events Manager Brian McNamara ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies Subscribe online at www.itp.net/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publica- tion are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. Trend 3 VSAT technology continues to gain popularity An increased traffic across shipping routes is expected as marine activities pick up pace. More so, 50,000 merchant ships alone will cross the oceans daily with millions of cargo containers in tow, signalling the need for fast and efficient communications aboard vessels and between land and sea. The ap- petite for enriched content from seafarers, crew and passengers will spike the growth of VSAT technology with the total service revenue for VSAT expected to exceed $2 billion by 2025. Trend 4 Adoption of remote monitoring Remote monitoring strategies are recom- mended to avoid costly system shutdowns. This can also improve the efficiency of main- tenance operations. With remote monitor- ing it is now possible to take data readings at set intervals and transfer this data back to head offices. Moreover, solutions with Augmented Reality (AR) enable off site experts to guide on site technicians. Trend 5 Increased cybersecurity measures With the increase in connectivity at sea, the vulnerabilities to cyberthreats will increase. Some cyberattacks cost the maritime industry hundreds of millions of dollars. It is recommended that the industry imple- ments stronger cybersecurity measures to manage risk and potential loss. Eliminate cyberthreats with proper security processes, increase education on cyberthreat and place adequate IT & security policies. 42www.commsmea.com BACKCHAT MARITIME TRENDS CommsMEA December 2019For more information Mr Habib Chams Dubai +971588152161 Beirut +961 76 704 978 habib.chams@itp.com www.dgcgames.com C Level Delegates 500+ Companies 100+ Speakers 35 Countries Book your place now | www.dgcgames.com Join DGC Esports Summit the leading marketplace and forum for the Esports industry serving MENA region 4th Edition Connecting the Global Game Industry 1-2 April 2020 Dubai World Trade Centre, UAE DGC E Sports 2020 Press Ad 205x275 V2.indd 121/11/2019 07:26zain.com A Wonderful World WE ABLE GLOBAL BUSINESS AND DISABILITY NETWORK DISABILITY INCLUSIVE BY 2022 Zain WeAble magazine 20.5x27.5 AW.indd 19/23/19 11:31 AMNext >