Mobile Operators Competitive Landscape

Part
01
of two
Part
01

Competitive Landscape; Mobile Network Operators (Part 1)

The most recent launch of new mobile brands in Egypt is WE, which was launched in September 2017. There are three mobile operators in Algeria, the largest being Djezzy, the other two operators are Algerie Telecom and Ooredoo.

Egypt

  • Egypt has one of the largest mobile telecom markets in Africa with a penetration rate of 105%.
  • Telecom Egypt received the country’s first unified services license in August 2016, which allows it to offer LTE services.
  • The licenses also enable the providers to offer virtual fixed-line services using the infrastructure of Telecom Egypt.
  • Telecom Egypt signs a three-year wholesale agreement with Vodafone Egypt, secures $200 million loan to expand LTE infrastructure.
  • Vodafone Egypt sees subscriber decline into 2018.
  • MVNO licenses are issued as part of the new unified licensing regime.
  • Egypt has four MNOs: Vodafone Egypt, Orange Egypt, Etisalat Misr, and WE (Telecom Egypt).
  • There are currently no MVNO's operating in Egypt.
  • "As of November 2017 and excluding recently launched WE, Vodafone Egypt led the mobile segment with 44 million subscribers and a market share of 43.7%, according to Beltone Financial.
  • The launch of WE in September 2017 brought a fourth operator to an already competitive arena.
  • WE is set to use other operators’ physical network, like a mobile virtual network operator.
  • WE’s first months were successful in terms of subscription numbers.
  • By the end of the third quarter of 2017, just 12 days after the operator launched it had already acquired 350,000 customers, and by early December had 1.7 million.
  • It was followed by Orange Egypt with 33.5 million subscribers and a 33.3% market share, and Etislalat Misr with 23.2 million subscribers and a 23% share."
  • Vodaphone Egypt has led market share in Egypt since 2010.
  • MVNO licenses can be issued in the country.

Algeria

  • "Algeria and Tunisia agree to end roaming charges for travelers" which has led to improved service throughout both countries.
  • Mobile penetration in Algeria is at about 116%.
  • With the increases in taxes on voice and data services, the competition between the trio has had a negative effect on operator revenue.
  • Regulator allows network operators to extend LTE services to additional provinces.
  • VEON sells its 51% stake in Djezzy to a government investment fund for $2.64 billion.
  • Algeria has three mobile operators. The largest mobile operator by subscriber numbers is Djezzy.
  • There have not been any recent launch in the country.
  • The other two operators are Algerie Telecom which is a state-owned operator and Ooredoo.
  • Algérie Télécom contracts Huawei to build a national fiber network benefiting one million customers.
  • Algerian Space Agency launches Algeria’s first telecommunications satellite.
  • Company of Telecommunications Infrastructure Algeria set up to manage a national fiber network.
  • Algeria is also part of the 4,500km terrestrial Trans-Saharan Backbone network which will connect the national network with other fiber networks in the region.
  • Mobilis named universal service provider for 750 locations.
  • Algerie Telecom investing at least $1.74 billion this year.
  • Algerie Telecom’s cellular division Mobilis has announced the expansion of its 4G LTE mobile network to ten additional provinces.
  • Algerie Telecom Mobile (Mobilis) has tested gigabit-capable mobile technology in Oran, a port city in north-western Algeria, as part of the ‘Smart Algeria’ forum.
  • Algerie Telecom (AT) has lost a court case brought by consumer protection association APOCE regarding the telco’s scrapping of a low-cost offer for fixed modem 4G LTE wireless broadband users.
  • Mobile operator Ooredoo Algeria has obtained authorization from the Authority for Regulation of Post & Telecoms to expand its 4G LTE network to all 48 wilayas (provinces) of the country.
Part
02
of two
Part
02

Competitive Landscape; Mobile Network Operators (Part 2)

The most recent launches of new mobile brands in Bahrain and Kuwait is the 5G rollout for devices and services while 5G licenses will probably be available in Tunisia in 2021. The complete competitive landscape is detailed below.


TUNISIA

MNO:

1. Tunicelle (Tunisie Telecom) 
  • Tunicelle held 30.5% of the market in 2017.
  • Tunisie Telecom signed a three-year partnership with Vodafone Group contracts and Huawei to develop an LTE network.
  • The company has $1.4B in estimated revenue annually.
  • Tunisie Telecom offers the largest mobile coverage in the country, owns and operates a nationwide fixed fiber network infrastructure.
  • Tunisie Telecom’s service offering ranges from 4G mobile broadband to Fiber-To-The-Home and Fiber-To-The-Building as well as cloud and IP-MPLS solutions for enterprises.
2. Orascom Telecom Tunisia (Ooredoo) 
  • Ooredoo held 39.7% of the market in 2017.
  • The company also is licensed as a fixed-line operator and has launched DSL and Fiber-to-the-Premises (FttP) services.
3. Orange Tunisie 
  • Orange Tunisie held 26% of the market in 2017.
  • It is also licensed as a fixed-line operator and has launched DSL and Fiber-to-the-Premises (FttP) services.
4. Lycamobile 
  • Lycamobile held 3.8% of the market in 2017.

MVNO: 

1. Ooredoo
  • Ooredoo also is licensed as a fixed-line operator and has launched DSL and Fiber-to-the-Premises (FttP) services.
2. Watany Telecom
  • Watany Telecom is licensed as Tunisia's second MVNO.

MOBILE BRAND RECENT LAUNCHES 

  • Chinese companies such as Huawei and ZTE bid aggressively on telecommunications tenders.
  • Siemens, Alcatel, and Ericsson are the major European competitors in the sector.
  • The Tunisian brand EVERTEK announced the official launch of its new Android smartphone called V9 + curved 4G.
  • 5G licenses will probably be available in 2021 in Tunisia.


BAHRAIN

MNO

1. Batelco
  • Batelco has an estimated market share of 34%.
  • In mid-2019, the TRA renewed the mobile frequency licenses held by Batelco for another ten years.
  • Batelco announced the launch of the Batelco Gulf Network (BGN) in 2018.
  • Bahrain’s state-controlled operator Batelco is working with Sweden’s Ericsson on its 5G network.
  • It is the first company to launch the 5G device in the Kingdom of Bahrain, which will provide a new exciting experience to its customers, including higher speeds for uploads and downloads while maintaining almost zero latency.
2. Viva
  • In 2017, the company held a market-leading share of 42.2% of mobile subscribers in the Kingdom.
  • In 2018, it acquired MENA Telecom.
  • In February 2019, VIVA Bahrain, a subsidiary of Saudi Arabian state-controlled telecoms firm STC, signed an agreement to use Huawei products in its 5G network; it is one of several Gulf telecoms companies working with the Chinese company.
3. Zain Bahrain 
  • In mid-2019, the TRA renewed the mobile frequency licenses held by Zain for another ten years.
  • Zain Bahrain has yet to announce a technology provider.
  • Zain Bahrain has managed to position itself well for the long-term with a reported 22% surge in its customer base.

MOBILE BRAND RECENT LAUNCHES:

Bahrain 5G rollout:
  • Batelco is working with Sweden's Ericson.
  • VIVA Bahrain signed an agreement to use Huawei products within its 5G network.
  • Batelco is the first company to launch the 5G device in the Kingdom of Bahrain.


KUWAIT

MNO

1. Zain Kuwait
  • Zain is a mobile and data services operator with a commercial footprint in eight Middle Eastern and African countries with a workforce of over 7,000 providing a comprehensive range of mobile voice and data services.
  • The company has $3.6B in estimated revenue annually.
2. Ooredoo
  • Ooredoo is a leading international communications company delivering mobile, fixed, broadband internet, and corporate managed services tailored to the needs of consumers and businesses across markets in the Middle East, North Africa, and Southeast Asia.
  • It has $8.2B in estimated revenue annually.
3. Viva Kuwait
  • VIVA is the newest, most advanced mobile telecommunications service provider in the country. VIVA has rapidly established itself in the market through its customer- and employee-centric approach.
  • The company has $941.9M in estimated revenue annually.

MVNO: 

  • Kuwait is expected to issue virtual telecom operator licenses in 2020.
  • The applicant will have to partner with a company that can provide it with the technology, know-how and operational and management experience. The partner will also own at least 40% of shares and have a five-year management agreement.
  • Kuwait’s existing telecom providers, as well as anyone holding 25% or more shares in Kuwaiti telecom companies, are not allowed to apply for MVNO.

MOBILE BRAND RECENT LAUNCHES 

  • Zain, Ooredoo and Viva (a subsidiary of The Saudi Telecoms Company) all launched commercial 5G services in Kuwait in June 2019.


Research Strategy

We started by searching for precompiled information through surveys, consumer reports, and profile analyses of each Mobile Network Operator in the countries Tunisia, Bahrain and Kuwait detailing the mobile accessibility each country has. Our primary focus was to find precompiled information; specifically the overview, services, products, market analysis and revenue on data surrounding each country's mobile network operator to create a competitive landscape for each country's mobile network operator. Although, we learned that most of these mobile network operators has already invested in its LTE, 2G, 3G and 4G networks, recent launches of mobile brands in each country is for the 5G services which are detailed in the findings above.

We also used the data from press releases, news releases, and more detailed independent research conducted on these countries and their mobile operators for each mobile network operators to find the mobile virtual network operators market for each country. However, most of the data found were for Mobile Network Operators only. Hence, we could not apply this strategy for the analysis of each country's MVNO, especially to Bahrain and Kuwait. For this reason, that license for the virtual network operator is not yet available in Bahrain and Kuwait's license for a virtual network operator will be available in 2021.
Sources
Sources

From Part 02
Quotes
  • "Following international trends, Tunisia possesses a buoyant market for telecommunications products and services. Penetration rates for fixed and mobile phones reached a tele-density of 138.8% in 2018. With over 14.8 million mobile lines already, Tunisia enjoys one of the highest mobile phone subscriber rates in Africa. In 2018, there were about 9.8 million internet subscribers, 81% of them (8 million) subscribed through their smartphones. The number of mobile internet users is expected to increase further. "
Quotes
  • "During a press briefing on February 13 in the city center, the Tunisian brand EVERTEK announced the official launch of its new Android smartphone. Called V9 + curved – 4G, this new technological gem with a giant screen and chic design aims to give everyone a fluid mobile communication thanks to reliable applications and operating system optimized for small configurations (Android Go)."