The telecommunications sector in Qatar will be an attractive potential market for interested parties especially on the GSM and Internet amd datacomm services front, stated an Arab Advisors report. Nonetheless, Q-Tel’s datacomm infrastructure is small and datacomm services in Qatar are limited by the small size of the market.
Qatar Telecom (Q-Tel) solely provides Internet and Datacom services to the country. Internet Qatar is one of Qatar Telecom’s divisions, which started operations in July 1996 to serve businesses and consumers by providing Internet and data communications services and solutions.
“Internet usage in Qatar has reached a somewhat high level. Demand is strong and the service is affordable by virtually all segments of the population. By end of 2001, Internet accounts reached 13,449, a 2.2 percent penetration rate while users’ penetration exceeded 4.96 percent.” Arab Advisors Group’s analyst, Sami Sunna’ wrote in the report.
“Due to the monopoly status of the Internet and datacomm market in Qatar, the Internet access charges are quite high by regional standards, which result in high total revenues. Qatar’s Internet monthly ARPU stood at around $118 in 2001, translating into total annual revenues of more than $17.1 million. By end of 2006, we expect Internet monthly ARPU to reach $40, translating into total annual revenues of close to $29.1 million.” Sunna’ added.
Continuing its “profitable monopoly” performance since 1998, Q-Tel reported total net profits of $ 74 million and $ 68.5 million for the first and second quarters of 2002, respectively. When compared with the net profits of the first two quarters in 2001, one can see that Q-Tel has been doing well, with growth rates of 24.7 percent and 12.6 percent, respectively. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
