<P>Dubai: In what has been an exceptionally difficult year for the broad swathes of the economy, the GCC's telecom sector got off lightly.</P>
<P>There was only a marginal 1.86 per cent dip in the combined income of the 11 operators to $7.64 billion (Dh24 billion) in 2009 against $7.79 billion the previous year.</P>
<P>Even then, seven of these operators saw their profits increase. Two reported a slight decline in income and the other two recorded losses greater than they did in 2008, according to data in a recent Global Investment House report.</P>
<P>Saudi Arabia, not surprisingly given its population, contributed a hefty 37.58 per cent of the region's profits for the sector. The aggregate profits of the three telecom companies listed on the Saudi bourse touched $2.87 billion.</P>
<P>This was a 14 per cent gain on their 2008 numbers, the result of increased revenues from international operations and demand for high-speed internet and mobile services.</P>
<P><STRONG>New player benefits</STRONG></P>
<P>In the UAE, du generated the highest increase in annual. The numbers for the 2009 financial year were up a stratospheric 6,304 per cent year-on-year. Of course, this has to be placed in the context of a new entrant aggressively working to expand its base.</P>
<P>Yet, the numbers are telling. Du added another 1.01 million customers, putting the total subscriber base at 3.47 million.</P>
<P>In contrast, Kuwait presented a rather depressing picture. Zain's net fell 39.4 per cent to $675.2 million from $1.11 billion.</P>
<P>The fourth quarter played havoc as the company reported a loss of $2.4 million against a net profit of $299 million a year earlier.</P>
<P>Rather than operational weaknesses in its domestic market, Zain's losses stemmed from currency volatility and losses by its African interests.</P>
<P>It has now sold off all of these except for its exposure in Morocco and Sudan. A change of fortune could beckon for Zain going forward.</P>