Wataniya is achieving standards of excellence in Kuwait’s telecommunications.

THE cellular market in Kuwait took off after the entry of Wataniya Telecom in 1999 as the second cellphone operator. In the following three years, penetration rates jumped from just 14% to 54%, and customers have reaped the benefit as competition has driven down prices.

“We were the company to bring competition to Kuwait’s telecommunications sector,” says Harri Koponen, Wataniya’s General Manager and Chief Executive Officer. “Wataniya showed Kuwaitis what competition can do for them.”

Over the last year, the penetration rate has risen to approaching 85%, but Wataniya continues to be a growing company looking for new business to explore.

This year, Wataniya Telecom has significantly upgraded its network, providing faster and more efficient wireless internet access and supporting applications such as video and music downloads. “It is important that we invest in customer service,” says Mr. Koponen.

Kuwait, he says, is distinguished from other developing countries by its wealth. “Kuwaitis want Kuwait to be a leading country and they don’t want to use old technology. They are very curious about new technology and are ready to spend for their future. They see the benefits.”

In the first quarter of 2005 the company posted a consolidated net profit of $41.6 million, an increase of 11% compared to the same period in 2004. There was growth in Wataniya’s markets in Tunisia, Algeria, and Iraq, and total active customers increased by 22% to almost 3.5 million.

In March, the company’s subsidiary, Wataniya International, signed a management agreement with Saudi Arabia’s Public Telecommunications Company after acquiring a 38% stake.

Wataniya Telecom and Nokia are embarking on extensive cooperation after signing a $125 million agreement to enhance Wataniya’s network in Kuwait, opening the way to fourth generation cellular technology.

“The company is becoming a service leader in the region and is seen by the people as a company that uses the highest technology to benefit the customer,” says Mr. Koponen.