CEO of Wataniya Telecom says revenues will increase through value added services

"There are many types of VA services that can be introduced through the high-speed download packed access (HSDPA) platform, which can increase average revenue per user (ARPU)," said Scott Gegenheimer.

"As your penetration goes up, your ARPU declines because you are penetrating the lower segments of the market. One way to offset this is to continue to offer new value added services to all your customers. Every year we continue to launch new VA services, whether it is video calling, voice SMS or instant messaging," he added

He also pointed out that a particular challenge arises when it comes to applications which require 3G technology, because only a third of the population owns 3G handsets, while the other two thirds of the population are expats who work mainly in the service sector and are very price sensitive.

"That said, there are still opportunities to increase ARPU for this segment of the market, as there is more elasticity than in the high end," he pointed out. In Kuwait there is no independent regulator," he said. "One of the priorities of the newly appointed minister of communication is to establish and independent regulator. In the upcoming year customers will be allowed to move from one operator to another without having to change their actual number. This will truly make mobile operators compete on service."

The interview with Gegenheimer will be carried in The Report: Kuwait 2009, available in print form and online, and part of the range of OBG's publications, renowned as leading sources of information on developing and emerging economies around the world.

Rated as the premier guide for foreign direct investment in the country's rapidly transforming economy, The Report: 2009 will be a vital guide to the many facets of Kuwait, including its macroeconomics, infrastructure, political landscape, banking and sectoral developments. It is considered the most comprehensive intelligence review produced on the country.

The publication is a review of the country's business and economic environment available, with sector overviews and analysis supported by a list of exclusive interviews and viewpoints.