Kuwait Telecom Market Size

Kuwait Telecom Market Analysis

The Kuwait telecom market is expected to grow at a CAGR of 6.5% over the next five years. The telecom industry in Kuwait has expanded to a significant level, with a particular emphasis on mobile infrastructure and services. The importance of the telecommunications industry to the nation's economy is expected to increase in the next few years.

• The Kuwait Vision 2035 program seeks to diversify the economy of the nation. This will continue to open new investment opportunities for telecoms and ICT providers. Telecom companies Would have the chance to provide premium 5G services due to the renovation and extension of the 5G network. Ooredoo/Fastelco customers would have more opportunities to enjoy stable, high-speed connections due to the telecom provider's efforts to extend its fiber optic network to untapped regions of the nation.
• Although the country is moving towards the phase of digital transformation, this could be a bit challenging owing to the need for a specialized skilled workforce. However, the companies are actively addressing the gap through measures to match contemporary education with the market's demands, better technology access, and initiatives to reskill the present workforce.
• Telecom users are evolving quickly, and the amount of 5G traffic has also been steadily growing. The operator has been witnessing a positive increase in revenue and profit. Of late, the 5G networks have received the MNOs' investment attention attributing to revenue growth in recent quarters. According to a report released by Opensignal, Kuwait stands second among the Gulf Cooperation Council (GCC) nations regarding the availability of the 5G telecommunications network, with a rate of 33.6%.
• As a result of the government's National Development Plan - Kuwait Vision 2035 program, which intends to promote advancements and investments in fixed broadband connection, the population's penetration of fixed broadband is expected to rise in the future years. Substantial increases in FTTH/B and set wireless subscribers would also raise the country's fixed broadband penetration rate. The primary source of the rise in fixed voice is VoIP services offered by telecoms through fixed broadband networks. For the forecast period, both phone and broadband lines would rise. This uptick is attributable to the nation's expanded fiber network.
• Compared to most Middle Eastern nations, Kuwait has made significant progress toward integrating telecom into a society based on the facts that are currently available. The country's high mobile phone connections (1.6 to 1.8 phones per person on average), comprehensive 5G mobile coverage, and practically universal rates of internet access (99%) and social media activity (99%) are a few of its standout characteristics. According to the Kepios report, in Kuwait, 4.31 million people used the internet in January this year, depicting that 99.0% of people had access to the internet. Kuwait had a 54 thousand (+1.3%) growth in internet users year over year.
• The COVID-19 problem has significantly impacted several businesses in the nation, although the Kuwaiti telecom industry remained mainly unaffected or even expanding the internet. The crisis has dramatically accelerated Kuwait's economy's digital transition. Due to an increase in data traffic, telecom providers' operations have grown. The e-payment sector, like teleconferencing and e-health, has seen a significant uptick in activity since the outbreak, escalating the demand for smartphones and digital services across the country. Furthermore, the Kuwaiti government tried to manage this exceptional circumstance and steer the nation's economic recovery, prioritizing involvement with and growing the private sector, much like other nations.