Qatar Telecom Market

Qatar Telecom Market : Is the Price War Between Vodafone and Ooredoo Sustainable?

NEW YORK, Dec. 17, 2015 /PRNewswire/ -- Key Findings

In 2009, Vodafone entered the Qatar's telecom market to become the country's second telecom operator, thereby ending Ooredoo's (Qtel in 2009) monopoly in the country.

- Vodafone had to pay a mobile licenses fee of $ billion and a fixed license fee of $ .
- In late 2010, Vodafone launched post-paid services in the country. However, the offer was not well accepted in Qatar as it involved a direct debit payment method. In 2012, the company introduced a traditional billing service.
- In 2014, Qatar's telecom market generated $ billion.
- In the same year, Qatar's mobile market expanded by % and reached million subscribers.
- In 2014, Vodafone increased its mobile market share to % in terms of subscribers.
- On the other hand, Ooredoo managed to increase its subscriber base to million. In previous years Ooredoo had lost some of its subscriber base to Vodafone.
- Frost & Sullivan projects a steady market share increase for Vodafone, which is expected to reach % by 2019.
Ooredoo has a higher post-paid subscriber base than Vodafone. In 2014, % of Ooredoo's mobile subscribers had post-paid plans, while Vodafone had only % post-paid subscribers. Hence, Ooredoo had a higher average revenue per user (ARPU) rate in the market.
- In 2014, Ooredoo's revenue grew by % and reached $ billion. Less than % of the Ooredoo Group's total revenue (which was around billion in 2014), comes from Qatar's telecom market.
- Vodafone's revenue grew by % to $ billion. However, due to intensive competition, price wars, and high expenses and investments, Vodafone's profitability remained negative.
- The fixed-line market in 2014 reached subscribers and yielded more than $ million.
- Currently, Ooredoo controls the fixed-line market as Vodafone launched its fixed-line services only in 2012.
- Ooredoo continues to heavily invest in broadband infrastructure as it is developing the Gulf state's fibre-optic network and aims to have all homes connected to its service by the end of 2015. The initial investment cost was estimated to be $ million.

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