KUWAIT: Kuwait’s third telecoms operator VIVA, an affiliate of Saudi Telecom Co, aims to attract 300,000 subscribers in its first year of operation, its chief executive said yesterday.
Kuwait, a country of more than 3 million people with mobile phone penetration of more 90 percent, sold a 26 percent stake in the state-created firm to Saudi Telecom for 248.7 million dinars ($930.4 million) in November.
The new company, which launched its brand name VIVA this week, will compete with Mobile Telecommunications Co (Zain) and National Mobile Telecommunications Co (Wataniya), a unit of Qatar Telecommunications Co when it launches operations by the end of the year.
“We target a market share of 10 percent, that means ... around 300,000 subscribers for the first year,” Najeeb Alawadhi told Reuters.
Zain said earlier this week it had 1.75 million subscribers while Wataniya had 1.27 million subscribers at the end of June.
Alawadhi declined to give a medium-term forecast for subscribers, market share or profits.
He said VIVA saw an opportunity despite the high mobile penetration.
“The market can still absorb more. In the United Arab Emirates the penetration is more than 100 percent,” Alawadhi said.
Like other Gulf Arab oil exporters, Kuwait is attracting a growing number of guest workers as regional economies boom on windfall oil revenues.
In November, Saudi Telecom Chief Executive Saud Al-Duweish said the new operator would have a market share of 30 percent in 10 years, on which Alawadhi declined to comment.
Alawadhi said the company, which complies with Islamic law banning the receipt of interest, saw no need to borrow or conduct a capital increase for the time being since its “significant” investments were fully funded by Saudi Telecom.