Vodafone Qatar

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Q2-2008Q3-2008Q4-2008Q1-2009Q2-2009Q3-2009Q4-2009Q1-2010Q2-2010Q3-2010Q4-2010ARPU (USD)ARPU (USD)Global Research - QatarVodafone Qatar1.81.61.41.21.00.80.60.40.2-Vodafone Qatar - Subscribers & Market Share Forecasts2010-11e 2011-12e 2012-13e 2013-14e45%40%35%30%25%20%Subscribers (in mn) - LHSMarket shareYear end in the chart is corresponding to Vodafone Qatar’s financial year end ( April-March)Source: Global ResearchARPUHistorically Qatar enjoyed relatively high mobile ARPU in the region. However, since the entry of Vodafone Qatar ARPU havecome down significantly mainly due to pricing pressure. Before the entry of Vodafone, Qtel’s mobile ARPU was as high asUSD55.2 (2Q08) which now declined to USD30.8 (4Q10).Qtel mobile ARPUVodafone & Qtel ARPU Trend50.045.040.035.030.025.047.536.4 33.747.032.427.733.9 31.330.828.633.030.860.050.040.030.020.010.055.252.9 52.844.2 43.036.433.7 32.433.931.3 30.820.0Sept-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-100.0VodafoneQtelSource: Company reports & Global ResearchVodafone’s mobile ARPU are much more comparable to other second operators in GCC. In case of Vodafone, ARPU hasincreased in the last three quarters, we expect it to increase further as from now onwards it will focus on postpaid segment. Thecompany was primarily focusing on prepaid segment as its base comprises mostly blue-collar workers.March - 2011 8
ARPU (USD)Global Research - QatarVodafone Qatar50.0Mobile ARPU of second operators in GCC45.040.035.030.025.020.015.010.0Sept-09 Dec-09 Mar-10 Jun-10 Sep-10Emirates Integrated Telecom Co. (du) - UAEVodafone QatarSource: Company reports & Global ResearchNawras Telecom - OmanZain - BahrainExpatriates - main focus of Vodafone QatarVodafone Qatar’s customer base is predominantly made up of workers and short-term expats. It has now started targetingQataris, Gulf Arabs, other Arabs from the MENA region, long-term residents and businesses. Part of that process will involvetargeting those communities with aggressive marketing and special offers.Posing stiff competitionThe advent of the second operator in the Qatari market had spurred incumbent Qtel to improve its services as well. The morecompetitive environment in Qatar has already paid dividends to the country’s consumer base. According to management, the costper average international call minute had dropped from between QAR2.50-QAR3.00 at the time of the Vodafone Qatar launch toaround QAR1.00 now. Vodafone Qatar's network now supports customers making a combined average of about three millionlocal call minutes every day, and more than two million international call minutes a day.Vodafone Qatar launched its mobile broadband services in the country with a range of flexible tariffs designed to lure priceconscious customers, and in August 2010, it introduced three new ranges of mobile numbers in line with its increasing subscriberbase. It also offers an exclusive sequential number range for its Business World customers. These are the few ways to stayahead in a highly competitive environment. Vodafone Qatar has plans for several product and service launches. In November2010, it launched Vodafone Money Transfer (VMT), an international mobile money transfer. In partnership with Doha Bank,Vodafone's financial services provider for Vodafone Money Transfer, and Globe Telecom, Vodafone Money Transfer will enablecustomers to instantly make mobile-to-mobile money transfer from Qatar to the Philippines. In future, Vodafone Money Transferwill be expanding remittance options beyond the Philippines to countries across Asia, Africa and the Middle East.March - 2011 9
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