15.5% of Kuwait’s cellular subscribers are e-commerce users spending 356 US$ million over the past 12 months.

September 23rd, 2007
15.5% of Kuwait’s cellular subscribers are e-commerce users spending 356 US$ million over the past 12 months.
A new Arab Advisors’ major survey of Kuwait’s cellular users provides insightful analysis into one of the Arab World’s leading cellular markets. With 11.24% of cellular users having more than one line, the Arab Advisors Group calculates Kuwait’s effective mobile penetration to be 72.9% by mid 2007, 9 percentage points lower than the conventional mobile penetration rate of 82% by mid 2007.

A new major survey of Kuwait’s cellular users, was concluded by the Arab Advisors Group on September 21, 2007. The survey report, Kuwait Cellular Users Survey 2007- which has 259 detailed exhibits and 158 pages- provides the results of a major comprehensive survey of the cellular usage patterns and habits of the population in Kuwait. The survey fieldwork was conducted between August and September 2007. This survey report can be purchased from the Arab Advisors Group for only US$ 3,750 for subscribers to Arab Advisors Strategic Research Services. Non-Subscribers to Arab Advisors Groups Strategic Research Services can order the report for US$ 5,000. Please contact the Arab Advisors Group to get a copy of the report’s Table of Contents.

“Based on the trend of the same individual owning multiple lines, the Arab Advisors Group introduced the Effective Mobile Penetration Rate: The effective mobile penetration rate considers the percentage of individuals with one or more mobile lines and is calculated by dividing the number of the estimated individual mobile users (and not mobile lines) by the estimated actual population figure.” Mr. Jawad Abbassi, Founder and General Manager of Arab Advisors Group commented.

According to Kuwait’s operators’ published figures, Kuwait’s mobile market had 2.62 million lines by end of H1 2007. Hence, the mobile penetration rate (defined as number of lines divided by the population figure) stood at 82.0%. With 11.24% of cellular users in Kuwait using two lines, the number of individual mobile subscribers in Kuwait is estimated at 2.3 million subscribers by end of H1 2007.

“The Arab Advisors Group calculates the Effective Mobile Penetration rate (% of individuals with one or more mobile lines) to be around 72.9%. The survey results reveal that the ratio of multiple line ownership in Kuwait is much lower than it is in Saudi Arabia or Jordan. This –the Arab Advisors Group believes- is explained by the fact that the duopoly competition in Kuwait is less intense than the competition in Jordan or Saudi Arabia. With cost savings and leveraging operator promotions being a major factor behind multiple line ownership, the steady duopoly situation in Kuwait seems to offer less incentive to have multiple lines than the intense competition in a country like Jordan.” Mr. Andrawes Snobar, Arab Advisors Senior Research Analyst and Team Leader wrote in the survey report.

On the e-commerce front, Kuwait’s e-commerce users reported a preference for payments through credit cards with 72.3% of e-commerce users reporting credit cards as their e-commerce method of payment.

Arab Advisors Group’s major analytical survey of Kuwait’s main governorates’ population was scientifically done. The survey involved face-to-face interviews with 605 respondents from different households in Kuwait the Capital, Hawalli, Al Jahra, Al Ahmadi, Al Farwaniyah, and Mubarak Al Kabeer, selected randomly in a manner proportionate to the estimated population size of these areas. Respondents were 15 years old and above, and were cellular service users. This random survey is of current GSM users in Kuwait, yet may as well be of the total population of the country given the high GSM penetration in the country: Kuwait’s GSM penetration stood at 82.0% by end of H1 2007 according to reported figures from the two operators serving the market, MTC and Wataniya.

This survey provides deep insights into the telecom usage patterns in Kuwait. The random survey has a 99% confidence level with a less than 6% margin of error.

Arab Advisors Group divided the survey questionnaire into two main sections: Telecommunication and Media

The sections provide a balanced focus on the following areas:

Telecommunication
* General information
* Telecommunication methods used
* Cellular subscription
- Mobile plans
- Mobile penetration and effective mobile penetration rates
- Services used
* Cellular handsets
* Cellular data services
- SMS use
- MMS use
- 3G services
* International calls
* Perception of mobile operators
* Changing mobile lines and mobile operators
* Most important aspects for choosing a mobile operator
* Internet usage patterns of Kuwaiti GSM users
* e-commerce

Media
* TV viewing patterns and habits
- FTA Satellite TV
- Credibility of News Channels
- Pay TV
- Terrestrial TV
* Radio
* Movies and movie theatres
* Daily News Update
* Media Advertising
* Media Satisfaction Level

The Arab Advisors Group’s team of analysts in the region has produced over 875 reports on the Arab World’s communications and media markets. The reports can be purchased individually or received through an annual subscription to Arab Advisors Group’s (www.arabadvisors.com) Strategic Research Services (Media and Telecom). To date, Arab Advisors Group has served over 440 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients.