Zain's towers sale is a positive development for the operator and for the Kuwaiti mobile market at large. The deal will allow Zain to focus on a data-monetisation strategy while running a leaner operation. More tower sharing will lower barriers to entry for new players, improving competition in the medium term.
The limited reach of Tunisia's wireline infrastructure means that mobile networks have shouldered the burden of fast-maturing digital services consumption. This is not sustainable even with 4G technology. A national wholesale network operator would spread the load and make it easier to launch and grow the use of advanced services, benefiting the wider economy.
Omantel's investment in Zain will deliver improved profitability in return for relatively low risk. Both companies are keen to grow their digital services business and their respective skills and assets are highly complementary. A full take-over seems unlikely as it would not serve Omantel's core interests.
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Thanks, BMI Research