Saudi Arabia Telecom News Saudi Telecom profits up on one-off gains (From Cellular News, January 26, 2010) Saudi Arabia based Saudi Telecom (STC) has reported a sharp rise in its fourth-quarter profits, thanks to capital gains from the floatation of a 25% in its Malaysian subsidiary. The company reported a net profit of SAR2.94 billion (US$785 million), compared to US$309 million a year ago. The company booked a one-off gain of US$182.3 million from the sale of 25% stake in Malaysia's Maxis. Excluding the one-off gain, operating profits fell by 16.8% to SAR13 billion (US$3.46 billion), while revenues reached around US$13.3 billion. The company doesn't provide subscriber base figures. Zain Saudi in credit talks after loan woes (From The Gulf News, January 24, 2010) Riyadh - Zain Saudi Arabia, the kingdom's newest mobile phone operator, said yesterday it is in talks with lenders after missing some commitments last year on a two-year $2.5-billion (Dh9.18 billion) Islamic loan. The announcement by the firm 25-per cent owned by Kuwait's Zain is a fresh reminder that Gulf Arab corporate debt problems could be far from being over at a time when economies in the region hope that 2010 will be a year of recovery. Investor confidence in the region has been hit over the past eight months by up to $22 billion of debt restructurings at two prominent groups and more recently by Dubai World's request for a standstill on $26 billion worth of debt. Shares in Zain Saudi slipped 1.47 per cent in the wake of the news, dragging the main index of the Saudi bourse the only regional market trading Saturday, two per cent into the red. Zain Saudi Arabia said its creditors pardoned it under the condition they agree to a financial plan for 2010 which will be presented by the firm, the company said in a statement published on the Saudi bourse's website as an addendum to its earnings statement on Tuesday. "The firm is in contact with creditors to provide them with this information based on the company's current financial forecasts to ensure that it honors these commitments for the quarterly periods [2010]," it said citing an auditors' note. It said however its ability "to ensure a timely delivery on commitments and to continue in its business hinges on the firm's ability to ensure adequate funds on time and also on its success in discussing and changing some of the commitments for the four quarters to end-December, 2010". It did not disclose details on the size of the missed commitments nor about the banks involved in the talks. It said, however, that current liabilities at the end of 2009 exceeded its current assets by 4.9 billion riyals. Saudi Telecom Company int'l call rate 50 halalas after the 4th minute (From Zawaya.com, March 21, 2009) JEDDAH - Saudi TelecomSaudi Telecom has slashed its long distance mobile call rate to 50 halalas after the fourth minute. Following are the existing rates per minute for some countries, which will go down to 50 halalas after the fourth minute: Philippines: SR2.70, Gulf States SR1.30, Britain SR2.60, Egypt SR1.80, Australia SR1.80, Jordan SR2.10, US and Canada SR2.00, Lebanon SR2.10, Bangladesh SR2.50, India SR2.00, France SR2.60, and Indonesia SR2.30. The offer is valid for one month. Talk time at 50 halalas per minute after the fourth minute is unlimited. Mobily buys $21mn stake in internet provider (From itp.net, November 3, 2008) - Etihad Etisalat (Mobily) Saudi Arabia's second-largest telecom operator, said on Monday it had bought 94 percent of local internet and data communication provider Zajil for 80 million riyals ($21.3 million). Mobily said in July it had won the approval of Saudi Arabia's telecom's watchdog for the transaction involving 96 percent of Zajil's capital. This is Mobily's second acquisition in the past year after it agreed to buy local data provider Bayanat Al Oula for $400 million. "With this acquisition Mobily will be able to provide high standard telecom solutions," Mobily said in a statement on the bourse website said, adding that it would give full support to Zajil and Bayanat operations. The acquisition was completed on Sunday, it said. Saudi Telecom Co. enters new deal with SRMG (October 30, 2008) (MENAFN) - The President of the Saudi Telecom Company (STC) announced that the telecom company has inked an agreement with Saudi Research and Marketing Group (SRMG) and a Malaysian company ASTRO for setting up a new company for content. It will be based in Dubai Media City, Khaleej Times reported. He further added that the deal was signed by Prince Faisal bin Salman, chairman of SRMG, Muhammad Al-Jasser, STC chairman, and Dato Khadar Merican, director of ASTRO at STC headquarters. According to the agreement, STC will invest 51 per cent of the $74.7 million capital, while SRMG will contribute 20 percent and ASTRO will add 29 percent to form the new company's capital. It was further mentioned by STC's president that the new agreement is an expression of the company's commitment to the local market by providing world-class innovative services to all beneficiaries of telecom-media-convergence representing value added services to customers. Saudi Telecom eyes North Africa growth (From the Gulf Daily News, September 15, 2008) RIYADH: Saudi Telecom said yesterday it is planning expansion in North Africa. The firm said it would cut 14 per cent of its workforce at home and boost efforts to expand abroad after being rebuffed by France's Vivendi over a stake in Maroc Telecom. Chief executive Saud Al Duweish said he hoped Vivendi would have a change of heart after the French media group declined to sell its Moroc Telecom stake, but later told Al Arabiya TV that it had not made an official bid. "We tested the waters for Maroc Telecom but we didn't get a positive feedback ... We hope Vivendi will change its mind," he said on the sidelines of an event to launch a new logo for the company. "We are interested in the Middle East and North Africa in general but we are looking at North Africa in particular." Saudi Telecom is among firms that are competing for a 25pc stake in Oman Telecommunications Company. Saudi Telecom is under intense pressure to improve profitability as a regional telecom war heats up, with rivals like Kuwait's Zain and Emirates Telecommunications competing within Saudi Arabia. Saudi Telecom has spent in excess of $6 billion on foreign expansion in the past 15 months. The expansion has already started paying off. The firm's second-quarter net profit beat forecasts and rose 24pc, while it was struggling to show any growth at all just a year earlier. "We are comfortable with the financing of any transaction that may seem worth it ... We have excellent ratings," Al Duweish said. The company paid $2.56bn this year to buy a 35pc stake in Oger Telecom. Oger Telecom owns 55pc of fixed-line operator Turk Telekom and 75pc of Cell C, South Africa's third-largest mobile operator. It offers Internet services in Saudi Arabia, Lebanon and Jordan. Oger Telecom had 35 million users and revenues of $6.9bn in 2006. Its first foreign investment was last year after it took a 25pc stake in Malaysia's Maxis in a $3bn deal that opened up markets in India and Indonesia. "We have already reached 1.5m mobile phone clients in Indonesia, which makes us the third largest operator there," he said. "The Indian market adds 6m new mobile phone users every month." Saudi Telecom also took a 26pc stake in a consortium that won a third mobile phone licence in Kuwait for $929.7m. "For Kuwait, all is set, we will launch it within two months," he said. Al Duweish said he was still interested in participating in the stalled privatization of Algeria Telecom. "We will always be interested in Algeria, which is a country with huge potential." Internal consolidation within the group was key to improving efficiency, Al Duweish said, and he hoped to cut expenses by 15pc. The group planned to cut 3,000 jobs, he said. Kuwait's Zain launches mobile phone service in Saudi (August 25, 2008) KUWAIT CITY (AFP) – Kuwait's telecom giant Zain will launch its mobile phone service in Saudi Arabia on August 26, the group said Monday in a statement. Last year, a Zain-led consortium won the third mobile phone license in the oil-rich kingdom after making the highest bid of 6.1 billion dollars. At the start, Zain in Saudi Arabia will cover 95 percent of the population, using 3.5G broadband technology to half the population, the statement said. With the launch of service in Saudi Arabia, Zain now operates in 22 countries in Africa and the Middle East and connects customers in 16 of them to the "One-Network" service. The service allows clients to make calls across borders and be treated as local customers in terms of pricing. Zain plans to extend the service to other countries. Zain in Saudi Arabia plans to invest between six and eight billion dollars in the next five years. "We are delighted to launch services in the economic powerhouse of the kingdom of Saudi Arabia and we intend to fulfill our promise to offer the community world class telecom services," Zain CEO Saad al-Barrak said. Barrak said that Zain is working to expand its customer base to 150 million clients in 2011, from 45 million at present, and become one of the top 10 global operators. Founded in 1983, Zain is capitalized at 27 billion dollars. Saudi Telecom in deal with Manchester United (August 17, 2008) Riyadh (Reuters) - Saudi Telecom (STC) is set to sign a marketing deal with British football club Manchester United that could be worth $18.6 million, a spokesman said, its first-ever deal with a non-Saudi football club. Football is a favoured pastime in the Middle East and telecom firms, including Emirates Telecommunications, are often lead sponsors of sporting events. STC has spent more than $6 billion in foreign expansion since June 2007 as it faces greater competition in its home market, where securing sponsorship deals with local soccer clubs helps telecom companies retain customers in a saturated market. "We are at Manchester now. We will have a press conference tomorrow and the deal will be announced during a Manchester United game," STC spokesman Mohammad Al Faraj told Reuters on Sunday. He declined to elaborate on the nature of the deal. Britain's The Sunday Times reported on Sunday that the five-year deal would grant STC rights to use Manchester United's logo and imagery in its marketing in Saudi Arabia. STC would be able to offer its subscribers video clips of match highlights, the paper said. "The arrangement is said to be one of the biggest non-shirt sponsorship deals in British football," the Times said. STC competes in Saudi Arabia with Etihad Etisalat (Mobily) and Zain Saudi Arabia. The incumbent operator has paid $200 million for five-year sponsorship agreements with three Saudi clubs. Mobily deal Its rival Mobily signed a 200-million-riyal ($53.3 million) sports-marketing deal with Saudi soccer club Al Hilal last year - then described as the Middle East's largest ever deal of its kind. STC's first foreign acquisition was of a 25 per cent stake in Malaysia's Maxis for $3 billion, opening markets in India, Indonesia and Malaysia. Many leading names in the world of soccer finance, including Manchester United, have sought to develop strong ties in various Asian countries in recent years, through sponsorship, tours and links with local clubs. The five-year deal would grant STC rights to use Manchester United's logo and imagery in its marketing in Saudi Arabia. STC to continue free installation of IP-VPN service (From Arab News, June 1, 2008) RIYADH - Saudi Telecom has announced the continuation of free installation of its IP-VPN service until July 19 at various speeds, which can reach up to 2.5 gigabytes. Samir Matboly, vice president-enterprise, said that the demand for IP-VPN service exceeded all expectations in 2007. "We are aiming to install this service to all government sectors and private companies and enterprises by 2008 due to the direct contribution of this service in linking and transferring data between various sectors in the Kingdom. Commercial enterprises are thus ensured better performance and profitability of their operations inside and outside the Kingdom," he added. The network uses 'IP' protocol for data transfer in the customer's network in addition to providing data security throughout the transfer process that is safe and secure allowing customers to transfer all types of applications whether audio, visual, the Internet and data with high efficiency and security. "What really distinguishes the IP-VPN service is its connectivity with the available technologies in the Kingdom such as (WiMAX) and (VSAT) enabling customers to link their branches Kingdom-wide in an integrated form regardless of location," he said. A dedicated customer service number for enterprise customers has been set up to provide additional information as well as the company's website www.stc.com.sa Saudi Telecom joins int'l cable agreement (May 15, 2008) (MENAFN) The President of Saudi Telecom said that the company has joined a partnership agreement for the installation of the most advanced marine cable directly between the United Kingdom and India, Arab News reported. He further pointed out that the project will further offer necessary means to support international communications for the Kingdom in general and STC in particular providing a high degree of dependability and continuity for the company's various services. The project is valued at approximately $600 million and Saudi Telecom is one of the key contributors to the project supported by 18 leading local, regional, and international telecommunications companies. Moreover, the project will contribute to the support of company investments and external expansion plans. This cable will link Saudi Arabia directly with 12 countries in three continents including France and the United Kingdom from the West passing through Libya and Portugal, India from the East, passing through Djibouti, Oman, and the United Arab Emirates. Saudi Telecom plans to spend $15bn on buys (March 19, 2008) RIYADH (Reuters) - Saudi Telecom Co plans to spend about $15bn acquiring firms and licenses outside its home market during the year, Meed magazine reported yesterday, citing the company’s strategic investment unit. The Middle East’s largest telecom company by market value will target mobile phone licenses in Bahrain and Lebanon, said Fahd bin Mushayt, according to the London-based magazine. “Saudi Telecom has so far invested 22.5bn riyals in this regard,” Mushayt said, according to Meed. “We have started procedures to secure licences for the third mobile phone operator in Bahrain and the second land-phone provider in Egypt.” The operator made three foreign acquisitions last year. It bought a 11.3bn riyal ($3.01bn), 25% stake in Maxis, a Malaysian operator, and won the third mobile phone license in Kuwait at a cost of 3.4bn riyals. It also agreed to buy a 35% stake in Oger Telecom, the telecoms division of construction conglomerate Saudi Oger for 9.8bn riyals. Saudi Telecom also wants to win the second fixed-line license in Egypt. France Telecom has also expressed interest in buying Egypt’s second fixed-line licence, joining five Arab companies that are also interested, Egypt’s telecom regulator said. Saudi awards new telecom license (From ameinfo.com, March 3, 2008) - The Optical Communications Company (OCC) consortium's application for license was approved by the Saudi Arabian Council of Ministers to provide public, fixed-line telecommunications services in Saudi Arabia. The OCC consortium includes Verizon Business which will exclusively provide management and operational support. Motorola gets $335 mln pact from a Zain Saudi firm (March 2, 2008) (MarketWatch) - Motorola Inc. said on Sunday that it received a $335 million contract to supply a communications network and related services to a Saudi Arabian member of Kuwait's Zain Group. The member, Zain in Saudi Arabia, is planning a $1.87 billion initial public offering, and the network will help the company provide voice, data and multimedia telecommunications services, Motorola said. Zain in Saudi Arabia was formed to provide mobile-telecom services in Saudi Arabia under the third mobile license the kingdom awarded last July, Motorola said. The Schaumburg, Ill., telecommunications giant said it expects to begin deploying the network in the first quarter. Zain, formerly MTC Group, has been a Motorola customer for 14 years, the company said. Motorola said it will finance a "substantial" part of the purchase price. Saudi Telecom says finalizes $2.6 bln Oger deal (February 9, 2008) RIYADH (Reuters) - Saudi Telecom Co. the largest Arab telecom firm by market value, said on Saturday it had finalized a 9.6 billion riyal deal ($2.56 billion) to buy 35 percent of Oger Telecom. "Saudi telecom has today signed a final agreement with Oger Telecom ... it is part of Saudi telecom's efforts to expand its investments overseas," the company said in a statement carried by the state news agency. Saudi Telecom chooses Wavetec for Queue Management System solutions (from ameinfo.com, December 17, 2007) - Saudi Telecom has decided to standardize all their Al-Jawal Customer Service sites with Wavetec's Electronic Queuing System. Four new Customer Service Centers in Riyadh and Makkah have been completed and further ten centers are expected to be commissioned by year end. Saudi Telecom's Al-Jawal Mobile service is the largest GSM provider in the Kingdom of Saudi Arabia. It is currently investing greatly in modernizing their Customer Service centers. To achieve a higher level of customer satisfaction and provide a more modernized environment STC relied on WAVETEC's Electronic Queuing system -eQTM. eQTM - Wavetec's Electronic Queuing system is a market leader in the Middle East with deployments in numerous nationwide Telecom companies. Saudi Telecom has joined a large list of prestigious Telecoms including the likes of Etisalat, Orascom, Hits-Unitel and Telenor that are using Wavetec eQTM to best cater for their customers. 'We look forward to providing state of the art Queuing experience to all customers in the Kingdom. Our EQ is specially customized for the telecom sector's requirements and its Touch Screen interface is a first for any telecom company in the Kingdom.' Fahad Khan Chief Operating Officer – Wavetec. Saudi Telecom launches world’s largest EFM network with Zhone to provide up to 45 Mbps on existing copper infrastructure (October 11, 2007) OAKLAND, Calif. (BUSINESS WIRE) - Zhone Technologies, Inc., a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over copper and fiber access lines, today announced that Zhone’s Ethernet in the First Mile (EFM) solution has been selected by Saudi Telecom Company as a cornerstone business access technology in STC’s preeminent converged all-IP network initiative. Saudi Telecom Company is the incumbent operator in the Kingdom of Saudi Arabia, the largest wireless and wireline network in the Gulf. Since its independence from the Ministry of Posts and Telecommunications in 1998, Saudi Telecom has embarked on what is recognized as one of the world’s most advanced network transformation projects, migrating from legacy TDM to pure IP packet technology. The current phase of STC’s network transformation adds more than 60,000 lines of 802.3ah EFM technology — the world’s largest EFM deployment to date — supporting the first commercial EFM-based business services in the Europe, Middle East, and Africa (EMEA) region. STC’s extensive copper assets coupled with the rapid rise in new businesses in Saudi Arabia have set the stage for an ideal application of EFM. EFM is based on native Ethernet and provides the robust quality of ATM connections, but without the high cost and complexity of provisioning and management normally associated with ATM private virtual circuits. Additionally, Ethernet bonding has advantages over ATM such as the ability to bond pairs operating at different speeds and to perform hitless add/drops if one pair goes down –all of which were important technical factors for STC. STC has deployed Zhone’s MALC multi-service access platform, using the recently-adopted 802.3ah EFM standard over SHDSL.bis lines, to deliver premium-quality transparent LAN services (TLS) throughout Saudi Arabia. Zhone’s EFM-standard solution offers symmetric service speeds up to 45 Mbps. The MALC 719 model deployed by STC across their network leverages the industry’s highest-density aggregation architecture to support up to 384 EFM ports in a single, compact 7U chassis — maximizing STC’s business-service revenue opportunity at minimum cost. Zhone’s EFM solution was selected on the basis of link performance and standards-based interoperability trials, as well as the strengths of Zhone’s ZMS Management System. ZMS provides operators synchronous network monitoring and Quality of Service (QoS) prioritization over a full range of services and media. “We believe Zhone’s EFM solution will dramatically improve our service capability through copper loop bonding for higher bandwidth along with symmetric data capabilities for our business customers demanding enhanced services utilizing the existing copper infrastructure,” said Sami Al-Zomaia, access engineering manager at STC. “Zhone’s EFM standards-based access aggregation ensures our service objectives are met, including simplifying provisioning and management.” “Zhone’s EFM enables STC to migrate corporate and business customers to packet-based services bringing the power and speed of STC’s immense IP/MPLS backbone closer to the subscriber,” said Mory Ejabat, CEO of Zhone Technologies. “Saudi Telecom Company is a highly valued customer and the STC network serves as a model of the state-of-the-art for twenty-first century communications and the efficiency benefits of IP convergence.” Saudi Telecom’s second-quarter profit falls 8.6% to $826.6mn (From The Gulf Times, July 19, 2007) BEIRUT - Saudi Telecom, the kingdom’s second largest company by market value, said its second-quarter net profit fell 8.6% to 3.1bn Saudi riyals ($826.6mn) from a year earlier. STC, which is 70% owned by the Saudi government, said its second-quarter net profit rose 14% from the first quarter of 2007. First-half net profit fell 15% to 5.82bn riyals and earnings per share during this period fell to 2.91 riyals from 3.41 riyals. First-half operating income fell 11% to 6.15bn riyals from a year earlier, STC said in a statement on the Saudi Stock Exchange website late on Tuesday. STC said it will distribute 2.5bn riyals in dividends, or 1.25 riyals per share for the second quarter of 2007. Batelco, PCCW and Verizon get Saudi fixed-line okay (April 21, 2007) RIYADH (Reuters) - Consortia led by Bahrain Telecommunications Co., Hong Kong's PCCW and U.S. Verizon Communications have won initial approval to operate Saudi Arabia's new fixed-line phone network, the telecom regulator said on Saturday. "CITC has approved the applications by the three bidders," Abdulrahman al-Fehaid, deputy governor for Saudi Arabia's Communications and Information Technology Commission, told Reuters. "Ideally, and if the council of ministers approved their applications, we will have four fixed-line operators," he said. The country earlier this month short listed the three groups for licenses to build a second fixed-line telephone network across the country, ending the monopoly of state-controlled Saudi Telecom Co. The three firms set up to operate the fixed-line services would also sell shares in initial public offerings, he said. "All of them must offer a 25 percent stake of their capital to the public and 10 percent to state pension funds before the start of commercial operations," Fehaid said. Saudi Arabia, the largest Arab economy, is the Gulf Arab region's biggest telecom market. Saudi Mobily Q1 surges on subscribers, misses forecasts (April 21, 2007) RIYADH (Reuters) - Etihad Etisalat (Mobily), Saudi Arabia’s second mobile phone operator, posted a nearly seven-fold jump in first-quarter profit on high subscriber growth, but still fell short of analyst forecasts. Mobily made 251 million riyals ($66.9 million), or 0.5 riyals per share, in the three months to March 31, up 578.4 percent from the year-earlier period, it said in a statement on the Saudi bourse Web site. Mobily shares were flat at 1102 GMT, the only shares not in the red among Saudi Arabia’s largest ten companies. Mobily’s net profit was 37 million riyals, or 0.075 riyals per share, in the first quarter of 2006, it said. Growth in subscribers drove a 66.4 percent jump in revenues to 1.88 billion riyals, from 1.13 billion a year earlier. Mobily had 6.2 million subscribers at the end of March, compared with 5.5 million at the end of December, said Hamoud al-Ghobaini, Mobily’s corporate communications manager. The number of subscribers grew 121 percent over the year-earlier period, when Mobily had 2.8 million users, Ghobaini said. Still, the profit growth was below the average 1,086 percent rise analysts had forecast in a Reuters net profit survey last month. Analysts were expecting Mobily’s profit would range between 348 million riyals and 505.6 million riyals in the quarter after the company made 330 million riyals in the fourth quarter. But fourth-quarter profits were exceptional due to the five-day haj pilgrimage in Mecca that ended on Jan. 1, Ghobaini said. Mobily, which ended the mobile phone monopoly of Saudi Telecom Co. 7010.SE in 2005, got 30-40 million riyals of net profit from the haj, which attracted around two million Muslims, he said. “One should have expected our first-quarter net profit to be below the fourth quarter’s since we had exceptional activity then due to the haj and the religious celebrations,” he said. The company also failed to match analyst forecasts because of its aggressive pricing policy, said Ibrahim al-Alwan, deputy chief executive of KSB Capital Group. “The results are very disappointing compared to profit forecasts, but in terms of revenue growth they are very good,” Alwan said. ”The most important thing for Mobily should be winning market share regardless of profitability.” Mobily was able to capture 30 percent of Saudi Arabia’s mobile phone market within 18 months of starting operations. Last week, Saudi Telecom posted its smallest quarterly profit in more than two years as competition eroded the former monopoly operator’s margins. Mobily, whose bid for the second Saudi fixed-line licence was disqualified this month, borrowed $2.8 billion in March in the largest-ever syndicated Islamic loan to fund expansion of operations and infrastructure. Both operators will face more competition after a consortium led by Kuwait’s Mobile Telecommunications Co. submitted the highest bid of $6.11 billion in March to operate a third mobile phone network. Abu Dhabi-based Emirates Telecommunications Corp. holds a 35 percent stake in Mobily. Saudia Arabia's Mobily launches exclusive program for businesses (From the Gulf News, November 30, 2006) Riyadh - Mobily, Saudi Arabia's second mobile service provider, has launched a new program exclusively for business customers. The Mobily Partnership Program is aimed at making available the best possible services in the field of system integration, high-speed phone and internet access and providing best problem solution methods to companies. Ahmad Al Hosni, deputy-assistant president for marketing at Mobily, said that the new service shows how keen the company is to fulfill the requirements of a major section of its customers, as well as to provide comprehensive wireless solution with advanced security features. He urged companies in the private sector to take advantage of the new program. Mobily serves more than 345,000 subscribers for its 3G and 3.5G services while it has a total of 4.8 million subscribers. This achievement was registered in the first four months following the launch of 3G in June. The subscribers can use 2G and 3G on the same chip without replacement. The 3G subscribers get several free added-value services besides the features such as video conversations, high-speed internet access, television channels and games as well as the ability to watch video clips. Meanwhile, the company announced that the closing date for taking advantage of its new offers on favorite numbers has been extended to December 25 from December 1. This was in response to the tremendous response from subscribers for the new offers in three categories - Distinguished (Momayyiz), Silver and Bronze. The company has made subscription for these numbers free of charge with a condition that the minimum subscription should be for a period of three months. BlackBerry signs contract with Mobily in Saudi Arabia to offer mobile email service (From the Gulf News, September 11, 2006) - The maker of the BlackBerry mobile email device has partnered with a Saudi Arabian telecommunications operator to offer mobile email service. Canadian firm Research in Motion (RIM), which produces the BlackBerry, signed the deal yesterday in Saudi Arabia with Mobily. RIM is working with Middle East partner EMS, a Dubai-based mobile systems integration firm. "Saudi Arabia has always been the largest market for most companies doing business in the Gulf region," said Khalid Al Kaf, CEO of Mobily, which is part owned by etisalat. "Businesses are in urgent need of solutions that address the fast paced life and competitive environment they operate in. We're happy to be the first to bring BlackBerry to these customers." In May, RIM and EMS signed a deal with etisalat to launch the service in the UAE. Bill Rom, chief operating officer of EMS, said over 50 companies here have since begun using BlackBerry service and devices. When asked if BlackBerry would partner with du, the UAE's second mobile telecom operator, Robert Bose, RIM's director of carrier management for Europe, Middle East and Africa, said: "Our partner is etisalat …. but things change," without elaborating any further. Currently one BlackBerry model, the 8700g handset, is available for the UAE and Saudi Arabia but new models are expected soon. BlackBerry, with 5.5 million users worldwide, was the first company to offer a wireless email platform with devices only slightly larger than a mobile phone. Now the company is trying to keep ahead of the competition as other firms enter the hotly contested mobile email space. Last week the company released the BlackBerry Pearl, a device the size of a normal mobile phone but with a full "qwerty" keyboard, MP3 player, camera and capability to send emails, instant messages and video. David Keane, RIM carrier marketing manager, said the device retails for about $200 in Europe when packaged with a two-year service agreement. Huawei wins Saudi 3G deal (From The Gulf News, July 10, 2006) Dubai - Saudi Telecom Company has awarded a contract to Chinese telecom equipment provider Huawei Technologies to deploy its 3G network in Saudi Arabia. According to the contract, Huawei will supply a complete core network and new generation NodeBs to help STC launch 3G services countrywide. STC selected Huawei after its GSM Softswitch network built by Huawei withstood peak traffic during this year's Haj season. Dr. Zeyad Thamir Al Otaibi, vice-president of STC, said, "STC is dedicated to delivering superb 3G services through a reliable network and chose Huawei because the performance and reliability of Huawei's 3G solution more than meet our requirements." Market leadership "This contract further reaffirms Huawei's position as a leading supplier of UMTS infrastructure. Huawei's solution reduces operational and capital expenditure for telecom operators and enables flexible networking and coverage. "Huawei is pleased to be the major supplier for STC's 3G Network," said Li Huang, vice-president of Huawei Middle East and North Africa. "We are confident in our ability to continuously bring value to customers with innovative and leading 3G solutions." Huawei's UMTS new generation NodeB incorporates new and innovative features such as the digital power amplifier supporting the multi-carrier technology and support for full? Performance High-Speed Downlink Packet Access (HSDPA). The new generation UMTS NodeB improves network performance and reduces the total cost of ownership for operators. As one of the world's mainstream Universal Mobile Telecommunications System (UMTS) suppliers, Huawei has won 29 commercial contracts. Huawei's innovative mobile Softswitch and new generation NodeBs serve operators around the world and Huawei has accumulated abundant experience through the deployment of large-scale networks. STC is the biggest mobile operator in the Middle East and Africa serving 12 million subscribers and 4.5 million fixed line subscribers. Telecom industry sees 3G boom in Saudi Arabia (July 4, 2006) RIYADH (Reuters) - Saudi Arabia, which plans to license a third telecom operator by the end of this year, offers considerable growth potential for third-generation mobile-phone use, experts say. Walid Moneimne, senior vice-president for Europe, Middle East and Africa at handset manufacturer Nokia, said that in three years the number of 3G users had risen to 100 million worldwide, out of 2 billion mobile line subscribers. "It's a key indicator that definitely it is happening. We're talking about phenomenal development ... and the Middle East and Africa are going to be the fastest in the world," he told a seminar in the kingdom late on Sunday. Oil-rich Saudi Arabia, with its gadget-obsessed population and low Internet-penetration rate, offers particularly good opportunities for mobile phones with third-generation technology, experts told the seminar. 3G, the third generation of developments in wireless technology, and its high-speed upgrades offer Web access some 100 times faster than normal fixed lines and 350 times faster than GSM, the widely used digital mobile-phone system. 3G also allows television reception. Saudi Arabia's biggest operator, the state-owned Saudi Telecom (STC), rolled out its 3G service last month, and three weeks later its competitor Mobily, which began operations in 2005, launched its own version. The government will grant a third mobile-phone license by the end of the year. Moneimne said the number of mobile-phone users in Saudi Arabia was set to rise to 22 million in 2009 from 10 million in 2002. The population, including over 6 million foreign residents, is currently around 24 million. Saudi operators hope that interest in 3G could also benefit from the kingdom's low Internet penetration compared to other Gulf countries, Mobily's IT chief Ahmed Al-Oraini told the forum. Ahmed Sindi of the government's Communications and Information Technology Commission said the number of Internet users is currently 3.2 million, or 14.5 percent. STC bids for Egypt license (From Arab News, May 5, 2006) - The Saudi Telecom Company (STC) is leading an international consortium to bid for the third mobile license in Egypt. STC President Saud Daweesh announced that Saudi Telecom signed a Memorandum of Understanding (MOU) with BICO — Egyptian investment company and TMI — Malaysia Telecom company to bid for Egypt's third operator mobile license. The Egypt government's sale of a third mobile license will allow a new entrant into a market dominated by MobiNil. As a regional telecommunication market leader and one of the top 15 telecommunications operators worldwide, STC decided to bid for Egypt's third mobile license. STC's long experience in leading the Kingdom's telecommunication industry since 1998, and currently having over 12 million mobile customers, undeniably puts the company forward as a strong candidate for the license. "The alliance with BICO — one of the biggest Egyptian investment companies with over 30 years wide scope of work experience in the Egyptian market, will enable STC to address Egypt third mobile license requirements and standards made by the Egyptian national telecommunication authority," said Daweesh. Telekom Malaysia signs marketing pact with Saudi Telecom (May 3 2006) (Ap) - Telekom Malaysia signs agreement for Saudi Telecom’s mobile bid in Egypt Telekom Malaysia Bhd said it has signed an agreement to provide marketing services for Saudi Telecom Company if that firm wins a bid for a mobile license in Egypt. Under the memorandum of understanding, Telekom’s unit, TM International Sdn Bhd, would provide Saudi Telecom Company of the Kingdom of Saudi Arabia and its consortium partners with marketing, sales, information technology and network services, Telekom said in a statement. The Egyptian government’s sale of a third mobile license will allow a new entrant into a market dominated by MobiNil — owned by Egypt’s Orascom Telecom Holding and France Telecom — and British firm Vodafone Group PLC. The deadline for bids is Thursday. Axalto signs contract to supply 3G SIM cards to Mobily (From Mena Report, February 21, 2006) - Axalto, the world's leader of microprocessor cards, today announced it has been awarded a contract by Etihad Etisalat Company (Mobily), the second mobile operator in Saudi Arabia, to supply an initial 1 million USIM cards for third-generation high-end services. The Axalto large capacity USIM features a wide variety of value-added applications such as Web browsing, information on demand, infotainement services and automatic handset configuration. Through this contract, Axalto and Mobily aim to serve the fast-growing Saudi Arabian market by offering advanced 3G services. Cards deliveries started this month. Since its launch less than one year ago, Mobily has enjoyed very strong growth. In the first three months of operation, Mobily secured 1.2 million subscribers and to date, it has reached the 2.5 million mark. By deploying the Middle East’s first high-capacity 3G cards, Mobily is leading technology innovation and is driving the mobile communications industry in the region. Axalto is committed to assisting them in their growth strategy, by providing them with a high-end product and ongoing technical support through an experienced local team. The Axalto cards will allow Mobily to provide their subscribers with interactive access to dynamic content and innovative services tailored to their specific needs. For instance, the Axalto USIM card has been designed to host a customized application that provides users with religious information and reminds them of prayer times, regardless of their location. Furthermore, it automatically mutes the handset at prayer times. “We selected Axalto for their strong regional presence and technological leadership, “ commented Mr. Khaled M. Khatib, Technical Marketing Manager at Mobily. “Also, the well-known reliability of their products was instrumental in the decision process.” Philippe Cambriel, president EMEA, Axalto, added: “Mobily has achieved a record number of subscribers in record time and selected Axalto to support its aggressive growth plans. We are proud to take part in this venture.” Saudi Telecom Co. reaches over 11 million subscribers (From Mena Report, December 21, 2005) - Saudi Telecom Company (STC) announced it had surpassed all expectations and now has just over 11 million subscribers (post paid and Sawa). STC continued its organic proportionate growth until mid November and in the past fifty days alone it has gained a record breaking 1.4 million new customers and has grown by 15%. The total number of customers is greater than the combined total of all the GCC countries mobile users and gives the company a total market penetration of 57.14%. Making it officially the largest telecom’s business in both Saudi Arabia and the GCC, with 95% coverage and is one of the top 15 telecom operators in the world. Consumers have a choice of operator and the indicators show that STC is the nation's first choice of mobile operator, whose customers still save on average 30% on their calls according to a recent marketing study carried out in 2005 as they only charge per second. The company’s president Mr. Kahlid Bin Abdullah Al-Molhem states,” I am truly elated, honored and pleased to be making this announcement, over the years we have taken this business to new heights, we could not have reached this monumentally achievement of 11 million without our loyal and dedicated customers, for which I would like to thank each and everyone one for their support in helping us reach this milestone”. He continues “Even though we have healthy competition in the Kingdom, we continue to out grow them on a daily basis and as a business we remain focused on delivering our strategy for growth. By offering our customers; value for money, providing the best service and are firmly committed to continuous development and innovation and we are looking forward to welcoming the next generation of customers to STC.” General Manager Eng. Saad Dhafer Al Qahtani, attributes part of the subscriber growth to: “its development program, which has helped bring more services to customers.” He states “STC is very proud of its achievements, its employees and loyal customers without them we would never have achieved so much and to celebrate this occasion we will be celebrating around the country with lots of activity to thank our customers who we value immensely, the climax of the celebration will be an event were we will change 11 peoples lives for ever!” Since the beginning when it was it first offered mobile services through its Al Jawal offering STC has grown phenomenally each year, bringing the Saudi people a wider choice of services to help them in their ever dynamic and evolving lifestyles. When it launched in 1998 it had 600.000 customers and in 2000 it grow to 1.4 million and again in 2.5 million after the introduction of Sawa, by 2002 it reached 5 million, 2004 and now in December 2005 it has more than 11 million subscribers. Saudi Telecom Company plans stake in Tunisian firm (From Arab News, October 10, 2005) RIYADH - The Tunisian government announced the intention to privatize the telecom sector by offering 35 percent for strategic partner. The Saudi Telecom Company (STC) along with 14 other telecom companies sent their intentions to the Tunisian government to acquire the stocks. On Oct. 7, the Tunisian government announced a list of companies qualified to acquire the stocks, which includes STC. After the announcement, STC will continue the economic feasibility study for this opportunity. STC is still searching for other outside investment opportunities. Saudi Oger signs Turk Telekom deal (From menareport.com, August 25, 2005) - A deal for the sale of a 55 percent stake in Turkey's fixed-line operator Turk Telekom was signed on Wednesday. The contract was signed by Turkish Finance Minister Kemal Unakitan, Transportation Minister Binali Yildirim, Privatization Administration (OIB) Chairman Metin Kilci and representatives of the Saudi Oger Telecom-led venture. The venture led by Saudi Oger Telecom, which included Telecom Italia, won a tender in July offering for a 55 percent stake in Turkish Telekom. Saudi Oger gave an offer in the amount of US$6.550 billion, whereas the second highest bidder was Etisalat’s offer (US$6.500 billion). Following the win, OgerTelecom Managing Director Paul Doany stated: “We have stated to the Turkish press many times that we are committed to Turk Telekom. We believe that Türk Telekom is a jewel and we are determined to invest in its growth." Turk Telecom serves 23 million subscribers in which 19 million in land lines and 4 millions in mobile service, with a profit of one billion US Dollars. The sale of Turkish Telekom is a central part in Turkey's privatization program. Saudi-led consortium makes top bid in Turkish telecom privatization (July 2, 2005) ANKARA (AFP) - A consortium led by Saudi Arabia's Oger Telecom placed the highest bid of 6.55 billion dollars (5.4 billion euros) in a privatization auction for a 55-percent stake in state telecommunications company Turk Telekom. Oger Telecom -- part of the Oger group owned by the family of assassinated former Lebanese prime minister Rafik Hariri -- was one of two bidders in the televised auction for the privatization of Turk Telekom, a key asset in the country's privatization program backed by the International Monetary Fund (IMF). The second consortium, led by Emirates Telecommunication Corporation (Etisalat), the United Arab Emirates telecom service provider, withdrew in the seventh round of bidding, refusing to increase its last offer of 6.5 billion dollars. The bid by Oger Telecom, which has Italian operator Telecom Italia as a minority partner, marks the highest offer Turkey has attracted in its often-faltering privatization drive since the 1980s. The previous record was three billion dollars offered by the Istanbul-based Tepe-Akfen Ventures for the operation of Istanbul airport for 15.5 years. Oger Telecom's bid requires approval by the Competition Board and the cabinet before the sale is finalized. Oger Telecom chief financial officer Muhammed Hariri told reporters after the auction that if their bid was approved, the company would pay 20 percent of the price immediately and the remainder in equal installments over five years. A total of four consortia had submitted bids for the Turk Telekom sell-off and privatization authorities earlier Friday eliminated two of them -- a group bringing together Turkey's Koc Holding and the US-based Carlyle Group and a Turkish group led by a subsidiary of mobile phone operator Turkcell. Turk Telekom, which has about 19 million subscribers and employs some 61,000 people, has been slated for privatization for years but the project has failed to take off either because of political wrangling or unfavorable market conditions. Privatization is a key element in Turkey's efforts to put its economy back on track after two severe financial crises in 1999 and 2001 which sent the country running for IMF aid. But efforts by successive governments to sell off state institutions have long been challenged in courts. The main trade union representing workers in the telecoms sector, Haber-Sen, earlier Friday asked an Ankara court to annul the decision to privatize Turk Telekom on the grounds that the move is against the interests of workers, the Anatolia news agency reported. Hundreds of trade unionists, meanwhile, gathered outside the treasury where Friday's tender was held, shouting anti-government slogans and vowing to oppose moves to privatize state institutions. Nokia's MMS link to Saudi (From Gulf Daily News, March 23, 2005) MANAMA - An agreement has been signed between Nokia and Al Jawal, the GSM operator of Saudi Telecom Company (STC), for the supply of the kingdom's first MMS (Multimedia Messaging Service). The service will be launched before the end of the second quarter of the year, said STC public relations and marketing general manager Saad Al Qahtani. It will allow the company's 9.6 million mobile customers the ability to send video clips, pictures and voice or sounds combined with text messages. Mr. Al Qahtani said that the company expects there to be a social impact from the introduction of the new service so it will be launching a campaign to educate the public about the benefits of the service and discourage misuse of it. "Camera phones were also banned at one point but have now been allowed," he said. "We know that there will be a segment of the population which will misuse the new service, but the technology is there and we have to keep up. The only thing we can do is highlight the positive aspects of the technology." Nokia Europe Middle East and Africa networks senior vice-president Dr Walid Moneimne said that people should adapt because changes in behavior is expected with the introduction of any major new technology. "The same thing happened when printing technology was introduced, for example." Camera phones and Bluetooth technology has created some controversy in the kingdom because of some people using it to send lewd messages. In addition to the MMS solution, Nokia will be providing care services including emergency support, a help desk, software maintenance and training as well as system integration services. They were speaking at a Press conference held on the sidelines of Telecom Arabiya yesterday. The event, under the patronage of Transportation Minister Shaikh Ali bin Khalifa Al Khalifa, ends today at the Bahrain International Exhibition Centre. Riyadh to grant two new licenses (From Gulf News, March 23, 2005) Riyadh - The Saudi Communications and Information Technology Commission said it will grant two new telephone licenses by next year. One license will be for mobile phone service and the other for land line service, officials of the Saudi Communications and Information Technology Commission (CITC) said The commission decided to bring the date set for liberalizing land line service forward to late 2006, two years ahead of the originally scheduled liberalization date of 2008, said Mohammad Al Suwayel, CITC's governor. The reason for the change is Saudi Arabia's efforts to join the WTO, Al Suwayel said. The Saudi Telecommunications Company and the UAE's Ettihad Etisalat (under the brand name Mobily) are the two companies currently permitted to operate in Saudi Arabia's mobile phone market. The Saudi government may agree to raise the 49 per cent ceiling on foreign investors' opportunities to hold stakes in telecom companies, Al Suwayel said. Motorola secures contract from 'Mobily' (Ittihad Etisalat Co.) (March 21, 2005) RIYADH (PRNewswire) - Motorola today announced an agreement to implement Saudi Arabia's second GSM mobile operator, "Mobily" (Ittihad Etisalat Company), with a GSM Base- Station System (BSS) mobile network including Enhanced Data for GSM Evolution (EDGE) and Push-To-Talk over Cellular (PoC). This contract is a breakthrough for Motorola in Saudi Arabia and means the company now works with operators in almost all Middle East markets. Under the contract, Motorola will provide a turnkey Radio Access Network (RAN) for GSM and EDGE, including Horizon II base stations. The network will cover parts of the Western, Southern and Northern regions of Saudi Arabia, and in addition to providing traditional voice services, "Mobily" (Ittihad Etisalat Company) will be able to offer subscribers walkie-talkie style communication using Motorola's PoC solution. By offering PoC services, "Mobily" (Ittihad Etisalat Company) will be able to benefit from additional revenue streams, while providing its subscribers with quick one-touch access to their friends, family and colleagues. Commenting on the announcement, Mr. Khalid Al Kaf, the Chief Executive Officer of "Mobily" (Ittihad Etisalat Company) said: "We were seeking a strong revenue-generating solution to enhance wireless service offerings and delivery for our customers. We chose Motorola to help advance our mission to provide Saudi Arabians with quality telecommunications services, including its latest innovations such as Push-To-Talk over Cellular." Margaret Rice-Jones, corporate vice president Motorola, Inc. and region management Motorola Networks EMEA added: "Saudi Arabia is a high growth market for mobile telecommunications. Our collaboration with 'Mobily' (Ittihad Etisalat Company) will help deliver ground-breaking services to subscribers. The smooth running of the network is clearly central to the successful delivery of these services." With the "Mobily" (Ittihad Etisalat Company) contract, Motorola's global PoC infrastructure solutions continue to gain traction, reaching 25 contracts in 29 countries. Deployment of "Mobily" (Ittihad Etisalat Company) network is taking place throughout early 2005. Motorola has over 30 years of experience working throughout the Middle East. Ittihad Itisalat to start operation in 3 months (February 20, 2005) (MENAFN) - The managing director of the new mobile operator Ittehad Itesalat has announced that the new company will start operation before the end of the second quarter of 2005, Saudi Economic Survey reported. The first phase of the company's commercial operation would cover 30 Saudi cities. More than 90 regions and main streets will be covered in the second phase. While referring to the major products and services to be offered by the new company, the director said that the company would launch third generation services in 2006, and thus becoming the first company extending such services not only in the Kingdom but also in the region as a whole. Moreover, the company will facilitate interaction between the employees and the employer through continuing contacts and exchanging information in a speedy way and through making arrangements for video conferences. STC, Etisalat reach accord (From Arab News, January 12, 2005) RIYADH - An agreement between the Saudi Telecommunications Company (STC) and Ettihad Etisalat was reached here on Monday. The agreement between the two companies reflected upon the healthy and long term ties that they are looking forward to develop in the years to come. According to the agreement, the STC will provide services to Etisalat for a period of three years. One of the major provisions of infrastructure made available by the STC will be its transmission links that will allow interlinking between Etisalat locations. Another important provision the STC will make available to Etisalat is the unhindered flow of traffic both through the linking of Etisalat's and the STC's switchboxes. The STC will offer to the Etisalat subscribers national roaming capabilities which will allow the subscribers network access in areas that at present are not covered by Etisalat's network and this will be made available till Etisalat's network is up and running across the Kingdom's various cities. In order to speed up Etisalat's ground stations, the STC has also agreed upon providing its mobile telephone towers. Etisalat's Managing Director Khalid Al-Kaf said that the accord would allow for the rapid linking up of the two companies networks, thus speeding up our ability to offer Etisalat's services in the Kingdom. On the other hand STC President Khalid ibn Abdullah Al-Mulhem said that STC welcomed Etisalat as one of its main customers and users of its network, which will have a positive impact on the utilization of its network that is spread across the Kingdom. First 'Made in Saudi Arabia' mobile coming (From The Arab News, January 6, 2005) JEDDAH - A new brand of mobile phones made in Saudi Arabia by a Saudi company will hit the market later this month. Based on indigenous technology, the product will be the first "Made in Saudi Arabia" mobile phone, Ghazi Saleh Al-Shalhoub, chairman of Saudi Television Manufacturing Company, told Arab News. "The product is made without collaboration with any foreign manufacturer," he claimed. He said Saudi Television Manufacturing Company's new mobile phone is the first such product in the Kingdom and the Middle East region. It puts Saudi Arabia in a league of nations possessing electronic technology capable of producing such sophisticated products on its own. Al-Shalhoub said the company has invested about $9 million to develop its own technology for the product named Islamic Saudi Mobile Phone which will be offered for sale at the end of January. The new mobile phone has high memory capacity, can save numbers of incoming and outgoing calls and record calls lasting more than 15 minutes. The new phone is equipped with color screen and a battery for continuous 12-hour use. The phone, which displays the Qibla direction and prayer times in over 5,000 cities worldwide, has a number of languages available, such as Arabic, English, French, Urdu, Persian and Bahasa Indonesia, as it is also targeted at the Haj pilgrim market. Al-Shalhoub said that the price of the mobile would not exceed SR400, and it would come with a one-year warranty. The company aims at producing 2 million units during 2005, for sale in Saudi Arabia and neighboring countries. The Kingdom imports around six million mobile phones a year, with 70 percent of consumers regularly changing their mobiles, something that has greatly boosted demand. Competition in the mobile phone market is expected to intensify with the arrival of a new competitor to the Saudi Telecom Company which until now has been dominating both the mobile and land phone markets. Ettihad Etisalat which won the second mobile phone service license said it expects to get up to seven million subscribers in the first five years of its operations in the Kingdom. Ettihad Etisalat share trading to begin tomorrow (From Khaleej Times, December 19, 2004) - The Saudi Capital Market Authority (CMA) has announced that shares in Saudi Arabia's second mobile phone operator Ettihad Etisalat will start trading on the kingdom's stock exchange tomorrow. According to stock market sources, the margin of 10 per cent up or down, which is applicable for other shares, will not be applicable for Etisalat shares for the first day of trading. But from the second day, trading will be normal starting with the highest price and then the 10 per cent limit will be enforced. Saudi shares also continued to show strong performance last week following the recent downward correction. The Tadawul All-Share Index climbed 6.8 per cent this week, closing on Thursday at 8,175.76 points propelled by large blue chip gains, particularly banks, industry and the telecom sectors. Etisalat's initial public offering in November was oversubscribed 51 times, reaching a whopping SR51 billion ($13.6 billion). "This is the biggest IPO in the history of the Saudi stock market," Issa Al Issa, chief executive of Samba Financial Group which managed the IPO, said at the time. Twenty million shares were on offer at SR50 ($13.3) each, totaling SR1 billion ($266.6 million). But the number of applicants reached a staggering 4.28 million, he said. The minimum per person was set at 10 shares, and the offering was limited to Saudi individuals. Bankers expect the shares to rise to over SR200 once trading starts. In early December, Saudi Arabia established Ettihad Etisalat as a Saudi joint-stock company with a capital of SR5 billion. Commerce and Industry Minister Dr. Hashem Yamani, who made the announcement, said the Riyadh-based company would have a capital of SR5 billion divided into 100 million shares, each with a nominal value of SR50. The company will have a 10-member board of directors appointed by the general assembly for three years. However, the term of the first board will be five years. Etisalat has also disclosed its plan to raise its capital by 40 per cent to SR7 billion. Etisalat has been given a free hand in fixing service charges. The Telecommunications & Information Technology Commission has said it would not interfere in charges offered by Etisalat to its clients. Etisalat signed a $2.35 billion Islamic loan in September to finance investments in the kingdom. International, Saudi Arabian, UAE and Kuwaiti banks arranged the Sharia-compliant loan. They include Samba Financial Group, Al Rajhi Banking and Investment Corporation, National Commercial Bank, Citigroup, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Bank Al-Jazira, Kuwait Finance House and Emirates Bank. The Saudi government awarded the consortium in August, which is partly owned by the UAE's telecoms monopoly Etisalat, the permit to set up and operate a mobile phone network worth SR12.2 billion ($3.25 billion). It also gave the firm a license to set up and operate a third-generation network valued at SR735.8 million. Etisalat will have a capital of SR20 billion and the license was valid for 25 years. Alcatel selected by Ettihad Etisalat to deliver a new GSM/EDGE network in Saudi Arabia (December 2, 2004) (menafn) - Alcatel (Paris: CGEP.PA and NYSE: ALA) announced today that it has been selected by Ettihad Etisalat, the United Arab Emirates fixed and mobile operator, to be one of the major suppliers for new GSM/EDGE network in Saudi Arabia. This contract increases Alcatel's leadership in Saudi Arabia and constitutes a major GSM deployment for Alcatel in the Middle East. The new national network will be operational under the commercial name of Ettihad Etisalat and will be ready by the first quarter of 2005. This contract follows the acquisition of the new Saudi GSM license by a consortium led by Emirates Telecommunications Corporation "Etisalat". Following the broad solutions and services portfolio already supplied by Alcatel to support Etisalat fixed and mobile activities in the UAE, Alcatel is now one of the major suppliers of this new network in Saudi Arabia. Under the terms of the frame contract Alcatel will supply its industry leading Evolium™solution, including Base Stations Sub-systems (BSS) and revenue-generating applications such as next generation Voice Mail System (VMS) and the transmission system based on Microwave PDH, SDH, and Optical device. Alcatel is also responsible for installation and commissioning of a significant part of the network. Khalid Al Kaf, Managing Director of Ettihad Etisalat said, "Alcatel has proven to be a very flexible and supportive partner of Etisalat in the UAE. With the full support of Alcatel we will be able to meet this new global challenge and provide enhanced GSM services to the Saudi people in record time." Marc Rouanne, Chief Operating Officer of Alcatel's mobile communications activities added, "This project strengthens our excellent business relationship with Etisalat, already experienced in the fixed and mobile business. This new contract brings together expertise and competence from both companies and confirms Alcatel's commitment to provide fast-growing operators such as Etisalat with the best fitted mobile solutions to support their growth." The natively multi-standard design of Alcatel's Evolium™ solution allows the smooth and cost-effective introduction of GSM/GPRS/EDGE and 3G/UMTS capabilities on existing Evolium™ powered networks, thus allowing operators to implement enhanced broadband mobile multimedia services. Thanks to the continuous cost reductions made possible on Evolium™ future-proof platforms, and to Alcatel's extensive applications portfolio including "mobile kiosk", a turnkey ASP solution for the quick launch of user-centric services, Alcatel is best positioned to assist 2G mobile operators evolve their networks at reduced cost of ownership. In another recent move, Alcatel had announced that it had also been selected by Etisalat to carry out part of its 3G/UMTS deployments in the UAE, thus setting the basis for the delivery of new attractive multimedia broadband services to Etisalat's subscribers. TV: Saudi mobile phone IPO 50 times oversubscribed (October 31, 2004) RIYADH (Reuters) - Saudi Arabia's 1 billion riyal ($267 million) initial public offering of shares in mobile phone operator Ettihad Etisalat was 50 times oversubscribed, Saudi-owned Al Arabiya television said on Sunday. It said 4.3 million investors -- around one-fourth of the country's native population -- applied for a total of 51 billion riyals worth of shares. Twenty million shares at 50 riyals each were offered in the IPO which closed on Oct. 25. Company officials were not immediately available to comment. Ettihad Etisalat, a consortium led by the United Arab Emirates' Etisalat telephone operator, was awarded licenses earlier this year to operate Saudi Arabia's second GSM network and the first 3G system in the country of 24 million people, including foreign workers. Etisalat bid around 12 billion riyals to win a foothold in Saudi Arabia's rapidly expanding and potentially lucrative telecoms market. Demand for shares in Ettihad Etisalat was so great that scuffles broke out last week at banks, and newspapers reported subscription forms were being sold on the black market. At least two banks involved in the issue, Al-Rajhi Banking and Investment Corp and Banque Saudi Fransi kept dozens of branches open nationwide throughout Saudi Arabia's Thursday-Friday weekend to try to meet the demand. The launch of the new company ends the monopoly of majority state-owned Saudi Telecommunications Co, the kingdom's second-largest listed firm and one of the most heavily traded on the bourse. Four firms win Saudi GSM deal (From Gulf Daily News, October 6, 2004) DUBAI - A Saudi consortium has awarded four international firms 1.5 billion riyals ($400 million) worth of contracts to set up the second GSM network in the kingdom. The consortium, led by UAE's Etisalat, gave the contracts to Ericsson, Motorola, Alcatel and China's Huawei, Etisalat Senior Executive Vice President, Obaid Saeed bin Meshar said. Ettihad Etisalat will also sell this month 20m shares - or 20 per cent of its equity - in its first initial public offering, he added. Shares will be for 50 riyals each. "The contract has been given to them to set up a complete infrastructure to cover 70pc of Saudi territory within six months," Meshar said. He would not say how much the individual contracts were worth. The Saudi government awarded in August Ettihad Etisalat, partly owned by the UAE telecoms monopoly Etisalat, the permit to set up and operate a mobile phone network worth 12.2bn riyals Saudi Telecom to cut phone rates by mid-Ramadan (October 6, 2004) (MENAFN) - The Media Manager at the Saudi Telecom Co. (STC) said that his company will cut call rates and other service costs by 30 percent in mid-Ramadan, the Saudi Gazette newspaper reported. The official added that this is in keeping with the company's plan of extending affordable rates to its customers. The discounts for mobile and land lines and other services were expected as STC braces for the entry of UAE telecom giant Emirates Telecommunications Company (Etisalat) to operate the second generation mobile phone network in the Kingdom. Industry sources said that the current GSM penetration level in the Kingdom is less than 35 percent. There is still a large segment of the market 65 percent that does not have the service. Juniper Networks chosen to supply security for Saudi Telecom (From Tech Web, September 23, 2004) - Juniper Networks has been chosen to supply security solutions to Saudi Telecom Corporation (STC), the leading provider of telecommunications voice and data services in Saudi Arabia, and the provider with the largest number of subscribers in the Middle East. Juniper Networks will provide integrated firewall and virtual private network (VPN) and secure socket layer (SSL) VPN solutions to secure the internal networks supporting Saudi Telecom's business. STC provides communications services, including fixed and mobile, voice and data services based on a variety of transmission systems including microwave, fiber optic, coax, satellite and submarine facilities. Saleh Al-Zahrani, director, Information Security Controls and Solutions at Saudi Telecom, said in a statement: "As a regional leader in tele- and data-communications, Saudi Telecom recognizes the need to leverage superior security solutions to protect its operational data from the ever-increasing threats caused by hackers and unauthorized users. We found that Juniper Networks provides the best product range to meet these needs." Eddie Minshull, vice president of sales, EMEA for Juniper Networks, added: "We have provided Saudi Telecom with an integrated, best-in-class suite of security solutions for its internal network, which enables the company to secure its customer-facing organizational activity with confidence. This is an excellent example of the value of Juniper Network's broad security portfolio and how complementary IPSec and SSL VPN deployments can be." Britain's Vodafone, France's Bouygues disqualified from bidding for Saudi's 2nd GSM (July 11, 2004) (MENAFN) - Vodafone of Britain and Bouygues of France have been disqualified from bidding for a second mobile phone operator license in Saudi Arabia, leaving six consortia in the race, AFP reported. The Head of the Communications and Information Technology Commission (CITC) said that the consortia whose offers would be evaluated in the final phase of the process include firms from Egypt (Orascom), Kuwait (MTC), Spain (Telefonica Moviles), South Africa (MTN) and the UAE (Etisalat). The official listed the six as Etisalat Consortium (Etisalat), Kingdom Telefonica Consortium (Telefonica), MTC and Partners Consortium (MTC), MTN Saudi Arabia Consortium (MTN), Orascom Telecom Saudi Arabia Consortium (Orascom) and Samawat Consortium (Telecom Italia Mobile). Bouygues had teamed up with the Saudi company of Lebanese Prime Minister Rafik Hariri to bid to become the second GSM operator in the lucrative Saudi market. Potential bidders were required to form a consortium of at least five Saudi companies and an international mobile operator, with foreign investors allowed to buy up to 49 percent of the joint company to be set up to operate the new GSM. Value-added mobile services to get boost with new operator (From Arab News, July 1, 2004) RIYADH - New opportunities may soon open up for high-tech entrepreneurs when the second mobile operator is launched later this year. With a new provider in the Kingdom, the market is expected to develop quickly with new valued-added services, new technologies, and new types of businesses. It is commonly accepted among IT industry sources here that mobile networks are more than just base stations, telecommunications cables and handset sales: They facilitate the introduction of new services with the potential to reach literally millions of customers. Nokia estimated that of the $460 billion earned from global mobile services in 2002, about 10 percent came from data/messaging. It is expected to jump to $751 billion by 2007, of which 10 percent will be made up of messaging, 10 percent entertainment and media, and another five percent pure data. A service as basic as ringtones is already a multibillion-dollar business. Although the Arab world has yet to see many of these value-added services take off, the liberalization of the Kingdom's mobile services sector could provide the required boost. "Liberalization of the mobile market offers enormous growth potential for advanced mobile services and content in Saudi Arabia, where most consumers use their mobiles for voice and SMS only," said Phuthuma Nhleko, CEO of the MTN Group, Africa's leading mobile operator, and a bidder for the second mobile license in the Kingdom. Part of the business model of the new operator must be a strategy to nurture and encourage growth of Saudi mobile application and content providers. According to Gartner, end users in Western Europe spent a staggering $1.09 billion in mobile applications in 2003. Ringtones, logos and screensavers accounted for $691 million of this, with $121 million on games and $317 million spent on applications. Another research group, Strategy Analytics, estimated in a 2003 report that downloadable games (downloaded and stored on handsets) hit $655 million worldwide, and predicted that this market will reach $6.2 billion by 2008. The local market potential is big as Saudi users become attuned to using their mobiles for more than voice. "Wireless Application Service Providers (WASPs) in South Africa have developed a range of world-class services, and similar business models can be effectively applied in Saudi Arabia," said Nhleko. Products range from simple, fun services (such as real-time wind reports for people sailing) to high-end business applications. Mobile commerce applications allow small contractors such as electricians to take payment on the spot for services, while mobile banking applications used by some major banks allow customers to manage their accounts or get notifications about payments coming in. "The mobile operator plays a huge role in assisting entrepreneurs by giving them access to its network and billing systems to make it easy for customers to pay for the services, and to save the application provider the cost of having to manage their own billing," adds Nhleko. The future for mobile is definitely going to be a mixture of data and voice. Sun Microsystems, creator of the Java "device independent" platform, estimates that mobile handset manufacturers with combined market share of over 80 percent support J2ME (Java 2 Mobile Edition). Nokia estimates that 10 million Java applications are downloaded worldwide per month. As Microsoft's mobile platform also gains popularity, the sky is the limit as more powerful applications are developed for mobile devices. Etisalat sets up office in Riyadh to bid for Saudi GSM license (June 21, 2004) (MENAFN) - Emirates Telecommunications Corporation (Etisalat) has set up a project office in Riyadh to manage its tender offer to win the second GSM license for mobile phone services in Saudi Arabia, Gulf News daily reported. Eleven pre-qualified consortia are making strong bids ahead of the June 26 deadline, which include Etisalat Consortium, FAL Holdings Arabia (Deutsche Telekom), Integrated Visions (Malaysia's Maxis), Kingdom Telefonica (Telefonica Moviles), Mobilkom Saudi Arabia (Mobilkom Austria). The pre-qualified consortia also include MTC and Partners (MTC Kuwait), MTN Saudi Arabia (MTN), Oger Telecom (Bouygues), Orascom Telecom Saudi Arabia (Orascom), Samawat (Telecom Italia Mobile), and Vodafone and Saudi Partners (Vodafone). The consortia were selected from 12 applicants who took part in the pre-qualification bid, which ended in March. Saudi's CITC to publicly open second mobile license bids (May 26, 2004) (MENAFN) - Saudi Arabia's Communications and Information Technology Commission (CITC), the Kingdom's telecommunications sector regulator, said it would publicly open the final bids of the 11 consortia vying for the second mobile phone license, Arab News reported. Pre-qualified consortia are Etisalat Consortium, FAL Holdings Arabia (Deutsche Telekom), Integrated Visions (Malaysia's Maxis), Kingdom Telefonica (Telefonica Moviles), Mobilkom Saudi Arabia (Mobilkom Austria), MTC & Partners (MTC Kuwait), MTN Saudi Arabia (MTN), Oger Telecom (Bouygues), Orascom Telecom Saudi Arabia (Orascom), Samawat (Telecom Italia Mobile), and Vodafone & Saudi Partners (Vodafone). CITC is expected to announce the winner of the license by the last quarter of 2004. The license sale is expected to net the Saudi treasury at least $1 billion. Revenue from mobile phone services in the Kingdom is expected to rise to around $8 billion in 2007. STC faces competition with the entry of 2nd GSM operator by July (May 16, 2004) (MENAFN) - Saudi Telecom Company (STC), the sole GSM operator in Saudi Arabia, with more than 7.5 million mobile phone users faces competition for the first time with the entry of a second GSM operator anticipated by July 2004. Eleven consortia, including major regional operators, Etisalat, Orascom and MTC, have been selected as candidates for Saudi Arabia's second cell-phone license. Industry analysts said that the impact of this dramatic development on STC and the restructuring of Saudi's telecom industry will change the Saudi connectivity landscape by 2005. The Saudi telecom market, which is growing at an average rate of 30 percent annually, is estimated to touch $7.9 billion by 2007. STC to protect customer privacy (From Arab News, May 11, 2004) JEDDAH - Saudi Telecom has intensified efforts to protect the privacy of its customers. STC's public relations director Saeed Al-Kahtani said staff passing on details of customers or found browsing their files would be punished. Al-Kahtani stressed the importance of keeping information about STC's 12 million customers confidential. "The company will not hesitate to fire anyone leaking confidential information about customers," he said. However, the company will in fact only fire staff caught three times passing on confidential information. The first and second offenses merely carry a salary deduction. Al-Kahtani added STC had the technology to discover which employees are accessing customer information. Saudi Telecom earns $667 million in Q1 (April 24, 2004) (MENAFN) - Saudi Telecom (STC), the largest listed company in the Kingdom, reported its net profits grew by 11 percent to SR2.5 billion ($667 million) in the first quarter of 2004. Operating revenue from wireless services reached SR 4.93 billion during the quarter, while operating revenue from fixed line services reached SR 2.38 billion. Total operating revenues rose 9 percent to SR7.3 billion ($1.95 billion) during the quarter. Earnings per share during the quarter reached SR 8.34, as compared with SR 7.53 during the year earlier period. Saudi Telecom, which was partly privatized in 2002, posted a 140 percent jump in profits to $2.26 billion in 2003. Saudi Telecom to add zero to mobile numbers to improve network capabilities (April 7, 2004) (MENAFN) - The Saudi Telecom Co. (STC) will add a zero to all 05 mobile numbers starting April 21 in order to bring improved services to STC's 7.5 million GSM subscribers in the Kingdom, Arab News daily reported. The President of STC's mobile unit said that the move would be able to improve network capabilities and relieve congestion. Meanwhile, the Communications and Information Technology Commission (CITC) has this week pre-qualified11 consortia, including international telecom giants Vodafone of Britain, Deutsche Telekom of Germany and Telefonica of Spain to apply for the Kingdom's second mobile phone operator license, in order to end STC's monopoly. Each consortium will consist of five Saudi companies and an international mobile phone operator. The winner will be announced in the last quarter of 2004. 11 consortia pre-qualify for second mobile phone operator license (From Arab News, April 5, 2004) JEDDAH - International telecom giants Vodafone of Britain, Deutsche Telekom of Germany and Telefonica of Spain were among 11 consortia pre-qualified to apply for Saudi Arabia's second mobile phone operator license. "Pre-qualified consortia will be able to purchase the request for application from Communications and Information Technology Commission (CITC) headquarters beginning April 11, 2004," the commission said in a statement. The statement indicated that the commission would announce the winner of the license by the last quarter of 2004. The consortia were selected from 12 applicants who took part in the prequalification bid, which ended on March 21. The license sale is expected to net the Saudi treasury at least $1 billion. Revenue from mobile phone services in Saudi Arabia is expected to rise to nearly $8 billion in 2007. CITC had stated in the prequalification conditions that candidates bidding for the new mobile license should form a consortium of at least five Saudi companies and an international cellular mobile operator. The commission has pre-qualified the following consortia: Etisalat Consortium, FAL Holdings Arabia (Deutsche Telekom), Integrated Visions (Maxis), Kingdom Telefonica (Telefonica Moviles), Mobilkom Saudi Arabia (Mobilkom Austria), MTC & Partners (MTC), MTN Saudi Arabia (MTN), Oger Telecom (Bouygues), Orascom Telecom Saudi Arabia (Orascom), Samawat (Telecom Italia Mobile) and Vodafone & Saudi Partners (Vodafone). Mohammed Al-Suwayel, the governor of the commission, has said that foreign investors could buy up to 49 percent of the new joint stock company to be set up to operate the new GSM. "The foreign investor can own a minimum stake of 15 percent and a maximum of 49 percent," he said. The CITC launched the formal licensing process for the new mobile operator and two new data telecommunications service providers two months ago by issuing a request for prequalification. Stringent criteria have been set for the operator, who must control and run a mobile network (or networks) serving at least 1.5 million subscribers and must have at least two years' experience in deploying and operating a greenfield mobile phone system. Saudi Arabia is the largest telecom market in the Gulf region with four million landlines and seven million mobiles. The sector is growing at the rate of 30 percent annually. Camera phones freely available despite ban (From Arab News, April 4, 2004) JEDDAH - Legal or not, mobile phones with cameras are alive and well in the Kingdom. They are openly on sale in phone souks and freely available over the counter in branded stores. To add to the confusion, the technically illegal Samsung E 700 is even advertised on a main thoroughfare in Jeddah. The authorities are reacting. Al-Yaum Arabic daily recently reported that a college student was expelled in the Eastern Province for taking pictures of her friends with her mobile phone camera on campus and distributing them via the Internet. Parents complained to the college administration and the college disciplinary committee decided to expel her. The college student affairs administration is investigating 50 other students caught with mobile cameras — and these were only the ones they knew about. One student particularly upset the college when she took photos of a staff member and posted them on the Internet, souring relations between students and teachers. In the Riyadh area, students complained to their high school principal about a fellow student with a camera phone. Eventually, the head of the Commission for the Promotion of Virtue and the Prevention of Vice in the region, Turki Al-Shamri, was called in to deal with the situation. His chosen method was to destroy it with a large mallet, "as a disciplinary act and a lesson for others to learn from." Al-Shamri stressed that parents should make sure their daughters do not own, carry or use mobiles with cameras and that school administrations should be stricter in applying these regulations. This girl's case has been taken to the Ministry of Education, and Al-Shamri said all mobiles with cameras are to be confiscated. The intense dislike of camera phones being used to take secret photographs is not confined to Saudi Arabia. In Japan and the UAE, men have been prosecuted for taking voyeuristic photos of women, and even Hollywood has become nervous. Camera phones are banned from film previews. Last year, an Illinois village became the first municipality in the US to outlaw the use of camera phones in private places. Several states, including Wisconsin, California, Iowa, Washington and Louisiana, are considering taking similar action. Town Sports International, which owns and operates New York Sports Club, only allows cell phones to be used in the lobby, hallways and stairwells of its gyms. "We saw that it could become a problem," Town Sports spokeswoman Susan Gerson said. The company has banned the camera phones at its 130 health clubs in New York and Boston. By 2006, 80 percent of the total number of cell phones sold in the United States and Europe will be camera phones claimed a recent study by the Gartner Group, a cell phone industry analyst. Rules in Italy on the use of images taken with phone-cameras require that the images may be used for personal use only, that they be kept safe and that the subjects give written permission before their images can be used on the Internet. Here, the phones are on sale and advertised. The fact that they are in the Kingdom in sufficiently large quantity as to be on sale in almost every store indicates they are being imported in bulk. But by whom and how, given customs regulations and the mountains of paperwork and intricate procedures importing goods into the Kingdom demands? Syed Hussein, speaking for Samsung, assured Arab News the company neither imports nor sell camera phones, "as we are fully aware and respect the laws of Saudi Arabia." But he stressed the company's concern over "gray market imports." The gray market is often used to describe the illicit sale of smuggled goods in conventional outlets. "Not only camera phones but all our star models are suffering because of the other channels through which these phones come into the Saudi Arabian market. We consulted with all the government departments with regards to this problem, and the government has assured us of action," he said. Other companies are facing similar problems created by what they describe as smuggled goods. "All of us," said Hussein, "are taking measures to curb this problem." Their camera phones are, however, still available and advertised widely. We contacted Nokia, but at the time of going to print had received no reply. Their phones are on sale in many of the stores in Jeddah — some on display, but usually only obtainable by asking the assistants. LG Electronics also emphasized the company's adherence to the laws and customs of any country they do business with. S.M. Arshad, the deputy general manager, said, "Gray imports are damaging to the national economy of any country. It is illegal, unethical and immoral. Since the camera-phone is a banned product in the country, we never considered importing it." Saudi Telecom to participate in next generation underwater cable system (From Saudi Economic Survey, April 1, 2004) - Saudi Telecom Company along with 15 other national telecommunication service providers has signed an agreement in Dubai to develop the next generation underwater cable system for high-speed data communications. The "SMW4" submarine cable system will stretch nearly 20,000 km from Singapore to France. With a capacity of one terabit per second data transfer, it is to be commissioned in the third quarter of next year, according to a report published in the press here. The $500 million contract to build and install SMW4 has been won by a consortium of Alcatel Submarine Networks of France and Fujitsu Ltd. of Japan. The other national telecom providers are from the United Arab Emirates (UAE), Egypt, Algeria, Tunisia, Pakistan, India, Sri Lanka, Bangladesh, Malaysia, Singapore, Thailand, Italy and France. Awarding of second GSM license postponed (From Arab News, March 29, 2004) RIYADH - Saudi Arabia has postponed the award of the second GSM license for two weeks, according to Dr. Muhammad Al-Suwayyel, governor of the Communications and Information Technology Commission. A decision on the second Saudi mobile phone operator was expected yesterday. No explanation was given for the postponement of the award, which has been fiercely contested. Twelve consortiums had submitted bids for the mobile license, which was expected to net the Saudi treasury an estimated $1 billion in revenues. The line-up consisted of 72 companies making up the 12 groups. Each consisted of five companies from the Kingdom and one from abroad. The requirement of at least five Saudi partners to be involved in each consortium appears to reflect a concern to share out the benefits of the deal among several business groups. All bids were in on March 20. The Vodafone consortium was seen as the frontrunner, although other consortia from Germany, Spain, Italy, Kuwait, the UAE and France were also strong contenders. Saudi Oger was the only company bidding for the license on its own rather than as part of a consortium. It owns South African mobile phone operator Cell C, which will act as its technical partner in the bid. The CITC governor has laid down stringent conditions for the operator. The company must control and run a mobile network serving at least 1.5 million subscribers. It must have at least two years experience in deploying and operating a Greenfield mobile phone system. Other requirements are that it must be listed on the national stock exchange and have a market capitalization of at least $1 billion. Etisalat seeks to pre-qualify to bid for Saudi license (From Khaleej Times, March 18, 2004) ABU DHABI - The Emirates Telecommunications Corporation, Etisalat, is submitting a request for Pre-Qualification (RFPQ) in the bidding process for a license to provide mobile phone services in Saudi Arabia, due before March 21. This is the first official statement from Etisalat regarding the RFPQ and corrects unsubstantiated reports in a section of the media falsely quoting Etisalat President and Chief Executive Officer or other sources at the Corporation on this issue, Etisalat said in a statement yesterday. In preparation for the pre-qualification the Corporation has formed a consortium of leading Saudi investors to meet the entry criteria set down by the Communications and Information Technology Commission (CITC), the Saudi Arabian regulatory authority. Etisalat is also being advised by an international investment bank and a legal firm over the submission of a bid. "As a leading telecommunications provider in the region, we continually explore all possible investment opportunities to extend our services into new markets when the conditions are right," said Saeed M. Al Bahhar, Etisalat General Manager, International Business. Saudi Arabia is an attractive opportunity and we plan to participate in the bidding process. "The final choice of pre-qualified candidates will be made by the CITC regulator but due to the sensitive nature of this first phase, Etisalat cannot provide more details at this time," he said. and added that the final award is several months away, and the Corporation will continue to update our stakeholders at each stage. Saeed Al Bahhar pointed out that Etisalat has already invested successfully in Zanzibar, Sudan and Qatar, all overseas opportunities that perfectly balance Etisalat's UAE operations. "Our interest in the Saudi Arabia mobile license and other regional opportunities reflects our long-term strategy for international investments," he added. STC to issue new numbers for mobile phone subscribers (March 17, 2004) (MENAFN) - The Saudi Telecom Company (STC) will issue new nine-digit numbers for mobile phone subscribers instead of the current eight at the end of next month, Arab News daily reported. The daily added that the change will give STC the capacity to host 100 million mobile phone numbers instead of the current 10 million. The new numbers will start with 050 and will cover all subscribers on April 20, by which time STC hopes to have completed testing the system. Customers will have three months to alter their numbers and will receive a text message informing them of their new number to avoid confusion. The old numbers will become obsolete on July 21. STC said that this move comes in preparation for the opening of the telecommunications industry to other phone companies. Nokia delivers GSM network expansion to Saudi Telecom Co (March 16, 2004) STOCKHOLM (Dow Jones) - Nokia Corp Tuesday said it has delivered the upgrade and expansion of Saudi Telecom Company's GSM network in Saudi Arabia. The network provides capacity for the Hajj Pilgrimage, which has one of the highest mobile traffic densities in the world, Nokia said. The upgrade and expansion covered the areas of Mina, Muzdalifah and Arafat and provided increased capacity for more than 2 million Pilgrims, Nokia said. Deliveries include GSM network equipment, including Nokia Ultrasite Base Stations and Nokia high capacity Base Station Controller BSC3i. Nokia UltraSite can support GSM/EDGE, High Speed Data, GPRS, and WCDMA for 3G technologies, the company said. Hariri to bid for Saudi mobile phone permit (From the Khaleej Times, March 13, 2004) DUBAI - Lebanese Prime Minister Rafik Al Hariri's construction company, Saudi Oger Ltd., plans to bid for the first mobile-phone license offered to private companies by Saudi Arabia, which wants to boost competition in the industry. Saudi Oger, started by billionaire Hariri in 1978, will bid on its own rather than as part of a group for the license, Emad Jalal Baban, the company's senior vice president said. "It's an underdeveloped market with lots of opportunities,'' Baban said in an interview in Dubai. Revenue from mobile-phone services in Saudi Arabia will more than double to almost $8 billion in 2007 from $3.4 billion in 2002 as more people subscribe, Jordan-based Arab Advisers Group said in a report last March. Only a fifth of Saudi Arabia's 25 million people subscribed to mobile-phone services at the end of 2002. That will rise to almost 80 per cent in 2007, it said. Saudi Arabia bans sale of camera-equipped mobile phones (From menareport.com, March 12, 2004) - The Saudi government began enforcing Wednesday a ban on the sale of camera-equipped mobile phones, reported Al-Watan. The hand-held devices have become synonymous with immorality in the Kingdom, as locals complain that the phones are being used to photograph women on the street. Local newspaper also reported that a number of female students have been expelled from schools and universities for using the phones to photograph their peers. Mobile retail outlets across the Kingdom are being searched by representatives from the interior ministry and phones are confiscated if found. The authorities plan to re-export the collected devices and compensate shop owners with the profits. The ban on camera hand phones was previously issued by the Ministry of Trade but the order was difficult to enforce since phones were being smuggled into the country by traders in Dubai and Bahrain. Foreign investors can buy mobile phone shares: CITC Governor (From Arab News, March 11, 2004) JEDDAH - Foreign investors will soon be able to buy shares of a joint stock company being established to provide a mobile phone service, the Kingdom's telecom regulator said. "Mobile phone services have been removed from the prohibited list for foreign investment," said Dr. Muhammad Al-Suwail, governor of the Communications and Information Technology Commission. "Foreign investors can now own shares of a joint stock company, which is to be established and licensed to provide a mobile phone service," the Saudi Press Agency quoted the CITC chief as saying. Suwail said foreign investment in the sector would be allowed under conditions set out in the prequalification process for licensing a new mobile operator in the Kingdom. The CITC launched the formal licensing process for the new mobile operator and two new data telecommunications service providers recently by issuing a Request For Pre-Qualification. Many investors within and outside the Kingdom have expressed a keen interest in the project. Prince Alwaleed ibn Talal, chairman of Kingdom Holding, said recently that he was in the process of setting up a consortium of Saudi investors and an international cell phone provider to win the country's second mobile license. The CITC has given until March 21 for Saudi firms to apply for the highly prized license. Candidates for the license must be "a consortium of at least five Saudi companies and a cellular mobile operator," according to conditions set by the commission. Saudi Telecom offers unified telephone service at low rates (From Saudi Economic Survey, March 10, 2004) - The Saudi Telecom Co. has started a new unified telephone service, which is known as (UA). The new service will begin with the numerals (802) and will be provided to different government departments and organizations and large companies and other private sector enterprises having several branches. Subscribers to the new service will have the option to chose a single connection number, which would serve all their branches. This number could be called from any place inside the Kingdom, without the need to have a zero for in-Kingdom connections. The caller may use a fixed telephone or a mobile to call this number. The new service has the advantage of call transfer from one branch to another, according to the wishes of the subscribing company or enterprise. In the new service, there is the possibility of having the caller wait for an answer or listen to a pre-recorded message. The new service would make it quite easy for any caller to reach any public service government department or private sector organization subscribing to the service. The call will cost a negligible amount of 5 Halala, using a fixed telephone or a mobile phone. The subscribers to the new service will be given eight digit numbers, beginning with (802). The first subscriber to choose the service is Saudi Arabian Airlines with the number (8022 2222). Saudi Telecom blocks Globalstar's roaming (February 26, 2004) (MENAFN) - The Saudi Gazette newspaper reported that a financial dispute between the Saudi Telecommunications Company (STC) the official provider of telecommunications services in the Kingdom, and the Saudi Globalstar Company Limited has cut satellite telephone service to around 6,000 Globalstar subscribers. An official at STC said that Globalstar had fallen behind on payments of ground network user fees for several years, despite repeated rescheduling over the past two years in the form of monthly installments. The official added that Globalstar did not honor the rescheduling agreement or the contract signed between both parties, but STC subsequently cut only the roaming service facility to avoid inconveniencing Globalstar subscribers. Deadline set for 2nd mobile license application in Saudi (February 24, 2004) (MENAFN) - Companies have until March 21 to apply for Saudi Arabia's second mobile phone license, Arab News reported. According to pre-qualification conditions set out by the Communications and Information Technology Commission (CITC), candidates for the license must be a consortium of at last five Saudi companies and a cellular mobile operator. Bidders will also be required to state their commitment to create a Saudi joint stock company. Founding shareholders will be subject to a two-year lock-in period and 20 percent must be made available for public subscription. At least 40 percent of the shares must free float within three years. The CITC has decided to issue only one 25-year license for the installation and operation of a GSM network. The regulator will consider issuing an additional license in the fourth quarter of 2006. Currently, Saudi Arabia has more than seven million mobile phone subscribers. Saudi Telecom Co. is the only provider of mobile phone services in the Kingdom. STC to reduce charges for telephone calls and services (From Saudi Economic Survey, February 15, 2004) - Minister of Telecommunications and Information Technology Eng. Mohammed Jameel Mulla, who is also chairman of the Board of Directors of Saudi Telecom, has unveiled plans to further reduce the charges of telephone calls and services being provided by the company. The move is in response to the anticipated stiff competition, which may be faced by STC after the expected entry of two new companies in the Saudi Arabian telephone market. It is expected that licenses would be issued for a private company to offer mobile phone services by the end of the current year and another for fixed telephone services in the year 2006. Mohammed Mulla said that the Telecom Authority is started receiving applications from the local and international companies for the sole license for extending mobile phone services which would be granted in the fourth quarter of the current year. The company has already issued four licenses to extend visa services and these companies will provide the services within the coming six months. The minister also indicated that there is a move to transfer the Internet unit from King Abdul Aziz City for Science and Technology to the Telecom Authority. Studies are being carried out in this regard, he said while adding that the city's role may be in a supervisory one. Saudi Telecom profits soar (From the Gulf Daily News, February 13, 2004) RIYADH - Saudi Telecom (STC), the largest listed company in the kingdom, said yesterday that net profits soared by 140 per cent in 2003, boosted by a "big increase" in subscribers and a drop in operating costs. The company said net profits last year reached 8.5 billion riyals ($2.26bn), compared to 3.5bn riyals ($933 million) in 2002, according to a statement carried by the official Saudi Press Agency. STC said revenues last year reached 27 billion riyals ($7.3bn), a 16pc increase over 2002. The company's chief executive and chairman Khaled Al Melhem said the "marked improvement in results was due to a big increase in the number of subscribers and the company's efforts to cut operating costs." This was achieved despite "reducing mobile service tariffs and spending 700 million riyals ($186m) on an upgrade program", he said. Melhem said the company's board has approved a dividend of 22 riyals ($5.85) per share for 2003, payable to all shareholders on record before the company's annual meeting, whose date is to be announced later. The company's shares closed yesterday with a weekly gain of 1.7pc on expectations of a strong earnings report, according to Bakheet Financial Advisors. The government sold 30pc of the company's shares to Saudi citizens in 2002 for just over four billion dollars. The government has set up a Saudi Telecommunications Commission, a regulatory body to supervise the liberalization and opening up of the sector. IDC: Mobile services in Saudi to undergo tremendous growth in 2004 (February 9, 2004) (MENAFN) - A recent IDC study showed that mobile services subscriptions and spending in Saudi Arabia is set to undergo tremendous growth in 2004, fueled by strong pent-up demand from a large yet under penetrated addressable market. The licensing of a second mobile operator by the end of 2004 and the possible introduction of an MVNO in 2005 are expected to provide further impetus for market growth in 2005 and beyond. According to IDC's study, the launch of mobile prepaid services in 2002 fueled an unprecedented expansion of mobile service subscriptions in Saudi Arabia. In both 2002 and 2003, growth in the number of subscriptions was accompanied by equally rapid growth in voice traffic. IDC believes that the liberalization of the Saudi mobile services market together with the strong pent-up demand will be the key drivers of growth in subscriptions and spending over the next four years. Prince Al Waleed to apply for a mobile license in Saudi (January 18, 2004) (MENAFN) - Saudi Prince Al Waleed said that he would apply for a license to establish a mobile phone network in Saudi Arabia and the wider Arab world, Reuters reported. Al Waleed was quoted as saying that he has started discussing this matter with a number of companies. In December, Saudi Arabia's independent Communications and Information Technology Commission invited mobile telephone firms to build and operate GSM networks in the Gulf's biggest telecoms market. It said that the networks would be operational by late 2004. Currently, the Saudi Telecommunications Company (STC) is the monopoly provider of telecom services in the oil-rich country. Investors in Saudi telecom services fear of incurring losses worth $26.66 million (January 12, 2004) (MENAFN) - A number of investors in telecommunication services in Saudi Arabia have expressed fears of incurring losses amounting to SR100 million ($26.66 million) as a result of the Ministry of Information's decision to prohibit advertisements involving the Dial 700 service, the Saudi Gazette reported. The Saudi Television, a facility under the Saudi Ministry of Information, had signed a contract worth at least SR20 million ($5.33 million) with one of the companies that provide the Dial 700 service, with 40 percent of the proceeds going to the Saudi Television. Justifying its decision, the Ministry of Information said that these advertisements have therapeutic or cosmetic aspects, in addition to being contrary to the Kingdom's values, customs and traditions and turning out to be fraudulent. Saudi Telecom to issue half a million mobile phone chips to pilgrims (January 6, 2004) (MENAFN) - The Saudi Telecommunications Company (STC) will issue half a million mobile phone chips to pilgrims, the Saudi Gazette reported. An official at STC was quoted as saying that the numbers will start with 08. The chips will be available for two months starting next Thursday. The official added that this is the first time in STC's history that 500 thousand chips will be in the shops especially for pilgrims at any given time. The newspaper added that it expect sales of the pre-paid chips at around 75 percent of the total number of 08 chips on sale. Ericsson expected to get big Saudi Arabia order (December 17, 2003) STOCKHOLM (Dow Jones) - Telefon AB LM Ericsson is expected to book a sizable network equipment order from Saudi Arabia, but the deal isn't likely to come until early in the new year. The order would be the latest in a string of deals secured by the Swedish company for second-generation telecom equipment in Saudi Arabia, sources close to the deal told Dow Jones Newswires. Saudi Telecom Co. has said it would prefer to place the order in January 2004, a source said. STC officials weren't available for comment. It wasn't disclosed exactly how large the upcoming order will be, but a source said the size of the previous order announced in 2001 - $826 million - would give a good indication. Ericsson booked total orders from Saudi Arabia worth about SEK7.7 billion in 2002, but has not disclosed any figures for 2003. In 2000, Ericsson received an order from Saudi Arabia for SEK2.6 billion when the company regained its position as the main supplier to STC. Separately, several sources said that this may be the last major order for second generation, or 2G, equipment to be placed by STC. An Ericsson spokesman declined to comment. STC to introduce new mobile service for pilgrims (December 11, 2003) (MENAFN) - The president of the Saudi Telecom Company (STC) said that his company will introduce a "Pilgrim's Mobile" service during the coming Hajj season, Arab News daily reported. The official was quoted as saying that chips for the new service will be marketed during the Hajj season for a limited period, urging private companies to supply mobile handsets to pilgrims at reasonable rates. The STC chief also announced plans to improve mobile phone services during the Hajj, expanding the network's capacity to make more calls. Meanwhile, the official added that the company would soon introduce a new service for businessmen to help them identify callers when their mobiles are switched off. STC invites mobile phone companies to operate GSM networks in the Kingdom (December 10, 2003) (MENAFN) - Monopoly Saudi Telecommunications Co (STC) has officially invited mobile telephone firms to build and operate GSM networks in the Kingdom, noting that STC has the biggest telecommunications market in the Gulf region, Reuters reported. STC said the proposed networks would be operational by the last quarter of 2004, indicating that interested firms should send a detailed proposal by December 31, 2003 to pre-qualify. There are currently 5 million cell phone subscribers in oil-rich Saudi Arabia, which has a population of 22 million. The Kingdom's telecoms sector has been growing by some 30 percent annually. The STC added that it would consider granting licenses for more than one type of networks. Besides GSM, it would also consider bidders who offer the latest 3G system. Nearly $1.8 billion investment required to compete for second Saudi mobile license (December 4, 2003) (MENAFN) - Any new company planning to enter competition for the second mobile license in Saudi Arabia will need to invest an estimated SR 5 billion ($1.8 billion), Al Riyadh newspaper quoted local consulting firm BMG as saying. The newspaper added six investment groups intend to bid for the second mobile license, along with foreign partners. In November, Saudi Arabia's Communications and Information Technology Commission (CITC), the country's regulatory body for the IT and telecommunications sector, said it would award a new mobile license in late 2004. The size of the telecom market in Saudi is estimated at SR 27 billion ($7.2 billion) - with the mobile sector accounting for 70 percent. Saudi Telecom Co. (STC) is the only mobile service provider at the moment. STC's mobile revenues reached SR 12.9 billion ($3.44 billion) in 2002. The number of mobile subscribers as of the end of the third quarter reached 6.802 million subscribers with 3.417 million prepaid customers and 3.385 million post-paid customers. Analysts: STC shares undervalued (From arabnews.com, December 3, 2003) JEDDAH - Saudi Telecom shares are undervalued, a new report says. The report, published by BMG Financial Advisors after STC released its third-quarter results, suggests the real value of STC shares to be SR441 per share rather than the SR412 it is selling for in the market. The report said BMG upgraded STC from a "Reduce" to an "Add" for investors. Basil M. Al-Ghalayini, president of BMG, told Arab News STC had proved to be the most liquid stock in the Saudi stock market, generating 20 percent of the market turnover since the beginning of the year and representing 21.4 percent of market capitalization. "With the tremendous growth STC is currently witnessing, BMG revised its forecast to incorporate the better-than-expected third-quarter results," he said. Due to the tremendous growth in landline and wireless operations here in the Kingdom, STC's net income is expected to reach SR8,640 million for the full financial year. Analyzing STC's landline and wireless operations, BMG arrived at a target price per share of SR447.51, 91 percent higher than the current market price. "For the comparison-based valuation BMG used two peer groups — European operators and MENA (Middle East and North Africa) operators — and arrived at a fair value per share of SR433.79, 5.8 percent higher than the current market price. By taking an average of the two fair values, we reached a target value per share of SR440.65," according to Amr Sultan, a financial analyst with BMG. Saudi government issues tender notice for new telecom license (From menareport.com, November 30, 2003) - The Saudi government has issued a public notice inviting correspondence with interested parties on the procedures and conditions to be applied to the licensing of telecommunication providers in the Kingdom. The notice is part of the government’s efforts to privatize the telecommunications sector in Saudi Arabia. The Saudi Communications and Information Technology Commission (SCITC) plans to award licenses to telecom providers in 2004. Responses to the notice must be submitted to the SCITC by December 31, 2003, stated a press release. The SCITC will provide further details on the licensing process shortly after the conclusion of the public consultation. It will then issue a Request for Pre-Qualification (RFPQ) package and will disclose the fee for those intending to file a response. The pre-qualification phase will last for six weeks after the RFPQ is issued. During that time, the SCITC will determine which candidates will be included on a short list and are entitled to submit an application for a license. SCITC is seeking input to a number of questions as it moves forward with its plans to license new telecom providers, including the number of service providers it should license and the type and scope of coverage that providers should offer. Saudi Telecom awards LogicaCMG multi-mln euro next generation messaging deal (October 7, 2003) LONDON (PRNewswire) - LogicaCMG today announced a new multi million Euro contract with Saudi Telecom Company, Saudi Arabia's leading mobile and fixed line operator, to implement its next generation (NG) messaging architecture providing advanced payment and text messaging capabilities. Saudi Telecom will be deploying the IP-enabled next generation messaging platform elements of LogicaCMG's NG architecture such as the Pre-delivery Service Agent (PSA) and messaging nodes. These will increase the quality of service to STC's eight million subscribers, minimize operational costs and grow its messaging traffic and revenues, while at the same time preparing its network for the future. The converged PSA billing solution being implemented enables Saudi Telecom to charge for all current and next generation data services, including SMS and MMS. It can handle real-time billing of content such as ring tones and logos ensuring maximum revenue. The PSA system will process up to 1,400 transactions per second, improving performance and reliability for Saudi Telecom's prepaid services, especially important for highly interactive services like SMS TV voting. LogicaCMG's next generation messaging platform will significantly increase cost efficiency by offering common management, provisioning and network interfaces. It also provides the flexibility, features and framework components for Saudi Telecom to evolve its service portfolio to include richer and more interactive messaging services, such as SMS voting and polling. The NG architecture provides a smooth migration path to next generation services like Multimedia Messaging Services (MMS). Bhanu Sud, Director and General Manager, LogicaCMG Wireless Networks, Middle East & North Africa, said: "Mobile communications is a rapidly growing market in Saudi Arabia and we look forward to seeing Saudi Telecom reach the same messaging heights as other star customers around the globe have done. The flexibility and performance of our solutions, along with their ability to maximize revenues, places Saudi Telecom in an excellent position to accelerate future service growth." LogicaCMG is the global leader in messaging and payments, supplying messaging and billing solutions to 250 of the world's top operators in over 70 countries. These solutions serve over 500 million active mobile phone subscribers. The unique IP-enabled architecture developed by LogicaCMG has evolved from over ten years global leadership in mature messaging markets. It provides all operators, no matter what size or market phase they are in, with an extremely cost-effective solution to get the most out of their messaging business today, whilst preparing their networks to offer next generation services. Sendo appoints distributor for Saudi Arabia (May 19, 2003) - International phone manufacturer Sendo has appointed Al-Jammaz Telecom as its distributor in Saudi Arabia. Al-Jammaz will carry the complete range of Sendo mobile phones and accessories. Al-Jammaz will offer the handsets via its own retail outlets as well as independent retailers throughout the Kingdom. Sendo opened its Middle East headquarters at the Dubai Airport Free Zone earlier this year and has since launched its range of mobile phones in the region. The company’s business expansion to the Middle East has been fuelled by sales of its S200 and J500 series in Egypt, Saudi Arabia, Kuwait and the United Arab Emirates (UAE). Al-Jammaz Telecom is a provider of broadband and networking solutions, voice applications, card technologies and consumer products in Saudi Arabia and the Middle East. The company is headquartered in Riyadh, Saudi Arabia, with with eight offices around the Kingdom and a regional Middle East office based in Dubai. Saudi Telecom Q1 profit doubles (From topnic.com, April 21, 2003) - Saudi Telecom has more than doubled its profit in Q1 to USD603m, the largest first quarter profit announced by any Saudi company. Prepaid mobile phone card sales, lower call charges and new Internet services all fuelled the profits upturn, according to STC President Khaled Al Mulhim. STC has also awarded a USD975m contract to Ericsson and Nokia to expand the mobile phone network to 2.8m lines within two years. Saudi mobile market stands at threshold of major boom (From menareport.com, March 10, 2003) - Saudi GSM revenues are expected to reach $ 7.9 billion in 2007, up from $ 3.4 billion in 2002, forecasts the Arab Advisors Group. Saudi Arabia’s GSM penetration rate will catch up with its Arab Gulf states peers in the coming few years. A privatized and more market savvy Saudi Telecom (STC), and expected competition in the Saudi GSM market after 2004, will propel the Saudi GSM market to become the most lucrative segment, by far, in the Saudi communications landscape. “It is true that Saudi Arabia’s GSM market has belatedly boomed. However, a growth boom in currently in full swing and will continue through out the forecast period.” Arab Advisors Group’s senior analyst, Shahin Shahin said. “The GSM market is increasing in relative importance and will head towards becoming the most important segment in the market,” he added. Although revenues from the fixed lines service between 1999 and 2001 have increased at a CAGR of 6.5 percent, its share of total operating revenues has declined to 48 percent in June 2002 down from 67 percent in 1999. Revenues from mobile services, on the other hand have increased at a much higher CAGR of 41.1 percent, and its share of total operating revenues has also increased to 48 percent in June 2002 compared to 29 percent in 1999. This indicates that although revenues in both fixed and mobile segments are growing, mobile revenues are increasing at a much higher pace and are set to exceed those of fixed services. A major boom happened after 1999, when the mobile subscribers base grew at a CAGR of 82 percent during the period 1999 and 2002. This was due to rate reductions and better marketing on the part of STC. 2002 was another strong growth year, which is also mainly attributed to the introduction of the prepaid service. During the period between 1998 and 2002, STC mainlines subscribers grew by a CAGR of 11 percent, reaching around 3.3 million subscribers. The mainlines’ market experienced substantial growth in 1999 growing by 25 percent, however, since then the yearly percentage growth has been declining. “The growth in mobile adoption has radically changed the traffic patterns in the Saudi market,” Shahin noted. “Between 1999 and 2001 the absolute number of International calls via mobile grew by 305 percent, while the number of minutes over mainlines grew only by 26 percent,” he wrote in the report. The Arab Advisors Group projects Saudi mainlines revenues to decline to $2.72 billion by end of 2007, compared to 2.79 by end of 2002, a CAGR of –0.4 percent. At the same time, the Group projects mobile revenues, including roaming, to exceed $ 7.9 billion by end of 2007, growing at a CAGR of 14 percent. By 2007, GSM market penetration is projected to reach the 77 percent penetration mark, which close to existing penetration rates in other gulf countries like the United Arab Emirates (UAE). GSM subscriber base in Saudi Arabia set to rise (From the gulf-news.com, February 7, 2003) - With another tariff cut coming on April 1, the Saudi GSM market is set to witness another exponential increase in subscriber numbers, according to a senior official with Saudi Telecommunications Co (STC). By end 2002, the GSM subscriber base had grown to five million plus, with monthly additions at an average 300,000. The numbers ratcheted up further in January, when a staggering 406,000 signed up. From April 1, STC will cut charges per minute from 85 halalah to 50 during peak time, and from 50 halalah to 35 during off-peak hours. Currently, STC's GSM services cover 93 per cent of the country's populated areas. The official added that the process of attaining 100 per cent coverage on this count is already on. "The GSM numbers are just getting stronger with each passing month. With the new tariffs coming into place, which is over and above the cuts announced before, the mobile market is just going to take off," said Mohammed bin Abdul Aziz Alageel, general manager for IT at Al Jawal, the GSM arm of STC. He is also deputy chairman of GSM Arab World. "STC has been through a major restructuring to prepare us for upcoming competition and, equally importantly, to better serve our customer base." As per the current schedule, the country's mobile phone services market is expected to be opened up to more operators by as early as 2005. Having completed a very successful IPO in December, STC shares are now traded over-the counter (OTC) as of last week. On listing, the share shot up to 249 riyals from its offer price of 170 riyals. It is currently quoted at around the 200 riyal mark. STC is already the highest capitalized company on the Saudi bourse, making up 15 per cent of the capitalization. Saudi telecom sector may open doors wider (From gulf-news.com, January 26, 2003) - The Saudi telecoms sector's liberalization drive is open only to local investors for now, but may possible to invite foreign players in the future, a high-level Saudi official said here yesterday. The Saudi government has just completed the partial privatization of the state-owned Saudi Telecom Co, whereby the government has divested a 30 per cent stake in the company to the public, Mohammed Jamil Al Mulla, governor of the Saudi Communications Commission (SCC) told more than 150 delegates at a major telecoms  conference, held in Bahrain by Middle East Economic Digest. In September 2002, he added, the commission put a timetable for liberalizing the sector - the fourth quarter of 2004 for partial liberalization of mobile services and 2008 for partial liberalization of fixed telephone services. "Although the competition is only open to investors from within the kingdom; it may well be opened for foreigners in the future," he said. "Privatization is a new experience for us and we want to do it right." Al Mulla said the SCC is now in the midst of establishing "effective mechanism" to regulate incumbent services provider, while preparing for licensing new entrants in the data and mobile markets. "The commission expects viable and vibrant competition in all markets in due course of time." He said currently there are about 3.4 million working fixed lines and about five million mobile subscribers in Saudi Arabia. Both numbers are low in comparison to other countries, he said. "There is significant room for growth and opportunities exist for expanding the scale and scope of value added service offerings," he said. Speaking earlier, Bahrain's undersecretary of transportation, Sheikh Mohammed bin Khalifa told the delegates the time was right for specialists to look into the challenges facing the region regarding the rapid liberalization drive of the telecom sector. Bahrain, he said, has already made "very big stride" in this direction. "Bahrain is truly open for business, and we are very serious about attracting new telecommunications investment into the kingdom. We are eager to embrace new operators, whose innovative products and services will enhance and complement those already available to our people," he said. He said the ministry was about to present a national plan for the industry to the cabinet in support of the telecommunications law, which will clarify the government's direction and strategy. Bahrain, which now has some 300,000 mobile users - a little more than half the population, plans to invite investors in April to compete for a new license for another mobile services provider, monopolized until now by the Bahrain Telecommunications Company (Batelco). "Batelco's task as the monopoly operator is to get ready for competition, because it presents us with massive business opportunities," said Phil Reynolds, head of legal and regulatory affairs at the company. "Batelco is very serious about welcoming competitors." He said competition means Batelco will lose some customers but that happens in any change form a monopoly. "But what comes next is overall growth in the size of the telecoms market- and that is what we are interested in. In fact, we are eager to embrace new operators whose innovative products and services will enhance and complement those already available," he explained. Saudi Telecom company IPO declared a 'huge success' (January 10, 2003) WASHINGTON (PRNewswire) - The Saudi Telecom Company (STC) sold 30% of its shares in a public offering valued at approximately $4 billion. The offering was oversubscribed, as investors offered to buy $9.6 billion worth of shares, according to Saudi Minister of Finance and National Economy Ibrahim Al-Assaf. “At close of the IPO, the value of requests filed by citizens was $9.6 billion. The process was a huge success," said the minister, a day after the three-week subscription period ended. Saudi Telecom posted net profits of $762.4 million in the first nine months of 2002. Total assets were $11.4 billion on Sept. 30, 2002, but economic studies predicted they would swell by another 20 percent once the company is listed. The IPO of Saudi Telecom is part of a broader privatization program directed at helping to modernize and expand the Saudi economy. The Kingdom has previously announced and implemented plans to privatize many of its vital economic sectors including: telecommunications, civil aviation, desalination, highway management, railways, sports clubs, municipal services, health services and government hotels. This press release is distributed by Qorvis Communications, LLC on behalf of the Embassy of Saudi Arabia. Additional information is available at the Department of Justice, Washington, DC. Saudi Telecom 60 mln share IPO oversubscribed (January 7, 2003) MANAMA, Bahrain (Dow Jones) - Saudi Telecommunications Co.'s recent initial public offering has been oversubscribed by more than two times, the country's Finance Minister Ibrahim al-Assaf said in remarks published by a Saudi newspaper Tuesday. The company offered 30% of its shares - a total 90 million shares - Jan. 17, as part of the government's privatization program. Two thirds, or 60 million shares were offered to individual investors, while the remaining 30 million shares were allocated equally between the quasi-governmental Pension Fund and Social Insurance Fund. Subscription ended Monday. Saudi business newspaper al-Eqtisadiah said 850,000 citizens offered 24 billion riyals ($1=SAR3.75) for 140 million shares in total. That made 80 million shares oversubscribed. The government is expected to allocate shares according to the offer terms and return excess monies. The offering was the largest in Saudi Arabia for 20 years. Saudi Telecom is expected to be listed in the local market next month. International investors are allowed to buy Saudi shares only through a Saudi equity fund based in London and managed by the Saudi American Bank. Privatization drive gathers steam with Saudi telecom $4 billion IPO (From menareport.com, December 17, 2002) - The long-awaited partial privatization of the Saudi Telecommunications Company (STC) was launched Tuesday, December 17, with the Initial Public Offering of 30 percent of the company’s shares to local investors. The 90-million share flotation is expected to pour 15.3 billion Saudi riyals (four billion dollars) into state coffers. The proceeds from STC’s privatization are hoped to alleviate the kingdom’s $168 billion public debt, roughly equivalent to the nation’s annual Gross Domestic Product (GDP). The Saudi British Bank is lead manager for the IPO, closing January 6. Operating in a market that has known an annual growth rate of 30 percent, STC currently boasts a 4.5-million strong mobile subscriber-base and 3.3 million fixed lines in operation. The company’s net income reached SR2.86 billion in the first nine months of 2002. The Saudi government began the privatization process back in 1998, by passing control of telecom services to the newly formed joint stock company STC. The mobile phone sector was scheduled to open to competition by 2004, while the fixed-line sector was to follow suit by 2008. Gradually taking over from the Ministry of Post, Telephone and Telegraph (PTT), STC carried out major telecommunication projects kingdom-wide, while treading a path that would eventually enable it to operate in a competitive environment. The private sector was expected to acquire equity participation in STC by the end of 2000 with the option of foreign involvement. However, the move was halted when the Saudi Supreme Economic Council announced that foreign investors were banned from involvement in the local telecom sector. The kingdom’s national privatization program, hoped to generate up to $50 billion, slated for sale public firms including industrial conglomerate Saudi Basic Industries Corporation (SABIC), the national road and railway companies, water desalination, aviation, ports, airport services, hotels and medical services. Saudi telecom provider net up (From gulf-news.com, November 20, 2002) - Saudi Telecommunications Co (STC), the kingdom's sole telecom provider, posted a net profit of 2.86 billion riyals ($762.6 million) for the first nine months of 2002 ahead of a planned public offering. An STC statement received by Reuters yesterday did not give a comparative figure for 2001 but said third-quarter net profit had increased 11 per cent to 1.56 billion riyals from the same period last year. STC posted a 12 per cent fall in 2001 net profit to 3.47 billion riyals from 3.95 billion riyals in 2000, its first published earnings report. The cabinet in September ratified plans to offer 20 per cent of STC to private Saudi investors, with the remaining 10 per cent going to state pension funds, in what will become the kingdom's biggest public offering since 1984, when the government offered 30 per cent of Saudi Basic Industries Corp (SABIC) to the public. STC President Khalid Al Molhim has said he expects the IPO, to be issued before the end of 2002, to generate up to 15.3 billion riyals. The state is offering 90 million shares each at 170 riyals. Saudi officials have said proceeds from the government's slow-moving privatization process would go to ease the public debt, estimated at around 600 billion riyals, or nearly 100 per cent of the kingdom's gross domestic product. STC has 4.5 million mobile phone subscribers and 3.3 million fixed lines. The sector has been growing by around 30 per cent in the past few years. SABB to manage Saudi Telecom Company's IPO (From menareport, October 15, 2002) - The Saudi government has commissioned the Saudi British Bank (SABB) to be the lead manager for the initial public offering (IPO) of the Saudi Telecommunications Company (STC). The IPO is scheduled to come into effect on December 10, reported Reuters. Some 30 percent of STC’s shares worth $960 million will be available for purchase. Bahrain’s Gulf International Bank (GIB) has been selected as chief advisor of the IPO. The Saudi government began the telecom privatization process by passing control of the national services to the joint stock STC. Gradually taking over from the Ministry of Post, Telephone and Telegraph (PTT), STC carried out major telecommunication projects kingdom-wide, while treading a path that would eventually enable it to operate on a commercially competitive basis. SABB was established in 1978 as a Joint Stock Company. The Bank formally commenced operations with the taking over the British Bank of the Middle East in Saudi Arabia. The bank recorded a net profit of 830 million Saudi Riyals ($221 million) in 2001, up from SR87 million ($23 million) in 2000. The Riyadh-based bank operates through a network of 81 locations, which includes a branch in London and 13 women branches. SABB is a 40 percent indirectly held associate of HSBC Holdings, one of the world's largest banking and financial organizations. The remainder is held by Saudi investors. November launch for Saudi Arabia's third satellite (From itp.net, August 26, 2002) - Saudi Arabia's third communications satellite is to go into orbit aboard a Russian launch vehicle, which is due to blast off from the Baikonur base in Kazakhstan. According to prince Turki ibn Saud, supervisor of the Saudi Space Research Institute, the satellite was designed and made entirely by a Saudi team. It will be used for purely commercial purposes, providing data on weather, oil exploration and the movement of vehicles in remote regions of the kingdom. "The King Abdul Aziz City for Science and Technology is currently designing and making a series of Saudi satellites to achieve the city’s objectives," he pointed out. The institute is an affiliate of KACST. Prince Turki called upon Saudi businessmen to invest in the services to be provided by the new satellites. The two satellites launched by the Kingdom two years ago are now in orbit 650 kms abover the earth. Both were designed by Saudi scientists. According to the Saudi daily, Arab News, they weigh around 10 kilos or more. Each one costs SR3.75 million ($1 million) excluding the cost of launching. The two already in orbit have already provided valuable data on agriculture, geology, mapping and natural disaster studies. Important studies have already been completed on fish resources in the Red Sea and environmental pollution. Saudi telecom sector opens to local operators (August 5, 2002) (MENA) - The Saudi government has issued new by-laws to liberalize its domestic telecom sector, which is currently monopolized by the state-owned Saudi Telecom Corp (STC). The by-laws allow for new operators to enter the telecom sector, provided they are public shareholding companies, established through public offerings. The government has set up regulatory body, Saudi Telecom Authority, to facilitate the process. Nonetheless, international companies are blocked from participating in the domestic telecommunications market, which remains one of the 19 sectors made off-limits by the Foreign Investors Act. There are 3.3 million fixed lines as well as three million mobile lines in Saudi Arabia. The Kingdom commissioned Sweden’s Ericsson and Findland’s Nokia to expand its GSM network last year to 5.5 million lines. Saudis may float up to 30% of STC (from gulf-news.com, June 20, 2002) - Saudi Arabia is expected to float up to 30 percent stake of its only telecommunication company in October, but the IPO will not be open to foreign investors, a company official and bankers said yesterday. "The flotation will most probably take place in October before the start of the Holy Month of Ramadan," said an official from the state-owned Saudi Teleco-mmunications Company (STC). Riyadh-based bankers said the initial public offering (IPO), the biggest since 1984, would generate between $3 billion and $4 billion and is expected to be fully subscribed locally. "This is the crown jewel and won't be open to foreigners. There is still a long way for that to happen," a Western banker said. STC, the kingdom's sole telecom firm with a capital of 12 billion riyals ($3.2 billion), was set up in 1998 to prepare for the privatization of the sector which has been growing by around 30 per cent in the past few years. The flotation of STC shares is required by a new telecom law passed by the Saudi government earlier this year. It is part of efforts to push forward the long-stalled privatization program to reduce $168 billion domestic debt. Economists say the sale of a host of state holdings in various monopolies, including some of the major firms listed on the Saudi stock market, can generate up to $50 billion. Saudi Arabia has mandated Bahrain-based Gulf International Bank, which has a branch in Riyadh, to arrange the IPO. In 1984, the government offered 30 per cent of industrial giant Saudi Basic Industries Corp (Sabic) to the public, including to investors from other Gulf states. Bankers said the STC offering was expected to attract many Saudi investors, and the move would certainly hit the official stock market. STC to sell shares ‘very soon’ (from the arabnews.com, April 25, 2002) RIYADH - Saudi telecom giant STC is preparing a partial float of shares on the Saudi stock exchange very soon after announcing its first financial results in four years, its chairman said yesterday. “We are preparing for the flotation of a small part of the shares very soon,” Saudi Telecom Co. Chairman Khaled Al-Melhem said. “We are awaiting the green light from the authorities.” Yesterday, STC declared 2000 net profit of $1.054 billion. Operating earnings reached $4.5 billion and total assets were $9.4 billion, up 13 percent on 1999. STC also announced profit of $1.099 billion for the period from May 1998 to December 1999. Net profit in 1999 alone was $644.8 million. STC began operating on a commercial basis in May 1998, when it was turned from a government department into a company as a first step toward privatization. The financial results announced yesterday were the first to be released since then. The company, which has a monopoly over telephone, mobile and Internet services in the Kingdom, is expected to announce its 2001 results in the next few days. This has been one of the most essential requirements for the listing of STC on the Saudi stock market and the flotation of some of its shares, which independent analysts estimate will be 25 percent. STC has a capital of SR12 billion ($3.2 billion) divided over 240 million shares each having a nominal value of SR50 ($13.30). Asked if the prevailing positive situation on the Saudi stock market might encourage STC to speed up the flotation, Melhem said the decision “should come from the owners.” The Saudi Tadawul All-Shares Index closed on Tuesday at 2,694.74 points, a new record high, up two percent from Thursday’s closing and some 11 percent higher than the end-2001 closing. The Saudi government last year approved a bill passed in the Shoura Council to end the state’s monopoly of the telecom sector and bring in foreign investors. The bill allows for the establishment of new shareholding companies while not ruling out foreign investors. Melhem told a conference in Riyadh yesterday that there are 3.3 million telephone lines and three million mobile lines in Saudi Arabia, adding there is a potential for much more in a country with a population of 22 million. Last year, STC picked Ericsson of Sweden and Finland’s Nokia for a project to expand the GSM network to 5.5 million lines. The government has also set up the Saudi Telecommunications Commission, a regulatory body to supervise the liberalization and opening up of the market to more companies. In the past few years, STC has dramatically slashed the prices of its services, especially for mobile phones. Charges for obtaining a GSM line have been reduced from $950 three years ago to just $80 now. STC is introducing the pre-paid mobile service on Saturday. Melhem said STC was considering further reductions in the near future and planning to upgrade services. By the end of the year, it will launch the third generation of cellular phones.  The Supreme Economic Council, the Kingdom’s highest policymaking body on economics, is expected to lift a ban on foreign investments in the telecommunications sector by modifying the so-called negative list of sectors barred to foreign investors. STC signs up Alcatel for $12 million network expansion project (from the itp.net, December 31, 2001) - Saudi Telecommunications Company (STC) has signed a US $12 million deal with Alcatel to will bring high-speed data access and other broadband services to the bandwidth starved Kingdom. During the initial phase of the project, Alcatel will deploy local mid-point distribution service (LMDS) base stations and associated networking kit for customer premises. STC will use the LMDS networking equipment to deliver high-speed data access, leased line, frame relay and PABX interconnection services to small-to-medium enterprises (SMEs). The LMDS rollout will connect the already existing 600-strong customer base in Jeddah and Riyadh. Alcatel will also deliver end-to-end network and service management (NSM) through its 5620 Network Manager. The vendor is due to provide such as additional services such as radio network planning, installation and commissioning, project management and technical support. “With Alcatel’s LMDS solution we will be able to quickly roll-out our network and begin delivering the revenue generating services customers are looking for in this rapidly developing market,” said Ayed Al Shemrani, vice president marketing & sales for STC. “Deploying Alcatel’s LMDS solution represents the first commercial broadband wireless deployment in Riyadh and Jeddah, and should give the growing local business community the communication tools they need to work more efficiently,” he adds. Saudi GSM market on strong footing (from the gulf-news.com, December 16, 2001)