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REGIONAL NEWS

GCC Phone Shipments Total 6.5 Million Units in Q2

The GCC’s mobile phone market saw phone segments remaining stable in each announcement of a ban on US companies
strong unit growth in the second quarter of these countries. “Smaller GCC markets doing business with Huawei, the GCC’s
of 2019 with shipments totaling 6.5 million like Bahrain, Oman, and Kuwait have seen smartphone vendor rankings remained
devices worth $1.7 billion, according to their smartphone markets contract due to unchanged in Q2, with Samsung first
new figures. Statistics from International a reduction in consumer spending caused followed by Huawei and Apple. While
Data Corporation (IDC) showed growth of by the introduction of new levies, a difficult Huawei experienced a sharp halt in
11.5 percent compared to Q2 2018 and job market, and changing government shipments in June, immediately following
quarter on quarter growth of 8 percent, policies,” said Akash Balachandran, a news of the ban, its overall volumes for the
continuing the growth seen in Q1. Despite senior research analyst at IDC. “Kuwait has quarter were not impacted as significantly
shipments declining 4.5 percent in Q2 seen a significant degree of consolidation in as anticipated, IDC said. Looking ahead, IDC
compared to the year-earlier period, terms of brands, while the implementation said it expects overall GCC mobile phone
the feature phone market saw quarterly of new taxes has reduced the purchasing shipments to close 2019 up 3.5 percent
growth of 5.5 percent to total 1.7 million power of Bahraini residents. In Oman, the while in the long term the market os likely
units. The smartphone market, spurred by government’s Omanization policy has to expand at a five-year compound annual
particularly strong performances in Saudi caused a significant drop in the expat growth rate (CAGR) of 2.9 percent through
Arabia and the UAE, totaled 4.7 million population, which has naturally impacted to 2023. “This growth will be further fueled
units, up 19 percent on an annual basis. the mobile phone market.” He added: by the introduction and rapid proliferation
IDC also said combined mobile shipments “By contrast, Saudi Arabia’s smartphone of 5G devices and other form factors, such
declined in Bahrain (-5.9 percent), Oman market is seeing growth as the market as foldable devices, that are also expected
(-4.4 percent), and Kuwait (-12 percent) finally stabilizes following all the upheaval to drop in prices quite rapidly towards the
compared to Q1, caused by a downturn in caused by domestic policy and regulatory end of the five-year forecast period,” said
smartphone shipments, with the feature changes in recent years.” Despite May’s IDC.

Oman’s Third Mobile Network to Begin Operations in 2020

UK-based Vodafone has signed a non-equity agreement
with Oman Future Telecommunications (OFT) to roll out
the sultanate’s third mobile telecoms network. Operating
under the Vodafone brand, the new company will develop
“new services … to drive the next stage in the development
of the country’s telecommunications market”, the joint
statement said. The new operator is expected to begin
commercial operations in the second half of 2020. OFT is
a consortium of local investment funds led by Itqan Tech
Development, a subsidiary of Oman 70 Holding. In October
2017, Oman cancelled the tender for the contract to operate
its third mobile license in favor of a team comprising its
sovereign wealth funds and an undisclosed “international
partner”. UAE-based Etisalat Group, Saudi Arabia’s
Saudi Telecom Company and Kuwait’s Zain submitted
a bid for the contract. Oman has two existing mobile
telecoms operators – Omanmobile, a subsidiary of Oman
Telecommunications (Omantel), and the Oman subsidiary
of Qatar-based Ooredoo. Formerly called Nawras, Ooredoo
Oman was awarded the second mobile license in 2004.

74 SEPTEMBER 2019