Efforts under way to develop Riyadh as a major IT center

RIYADH, 3 February — Over 300 national and international companies or their local representatives will participate in the Ninth Saudi Communications 2002 to be opened by Minister of PTT Dr. Khaled Al-Gosaibi at the Riyadh Exhibition Center today.

Describing it as the biggest event of its kind in a decade, an official of the Riyadh Exhibition Company told Arab News that the exhibition is taking place against the background of sweeping changes on the Kingdom’s telecommunications front.

Efforts are also under way to develop Riyadh into a major IT and telecommunications center. To this end, specialist companies visited various scientific centers specializing in information technology and telecommunications before concluding deals.

“The Kingdom is currently spending over $6 billion for the installation of additional digital lines and expansion of the GSM network, wireless local loop systems and long-haul fiber-optic connections. An additional 116,000 new Internet users, growing at an exceptional rate of eight percent per month, are stimulating the demand for the continued modernization and expansion of the Kingdom’s communications infrastructure and equipment,” the REC official said.

Saudi Telecom Company has already awarded Ericsson and Nokia an SR2.545 billion contract to expand the Kingdom’s mobile phone system by adding 2.8 million lines to the network within two years. STC is also expected to announce new cuts in mobile communication and telephone charges before opening up the market to international companies.

Currently, STC has a capacity for 2.2 million mobile lines. “Once the new expansion phase has been completed, the number of mobile lines will double,” according to Saleh Al-Jasser, director general of marketing at STC.

Pointing out that STC estimates the size of its privatization and development plans at over $10 billion, the REC official said the demand would snowball for the full range of communications hardware, software and services. “A recent decree opening the Kingdom to foreign telecommunications companies has created exciting opportunities for these companies. It will require major modernization of hardware, software services and systems upgrade.”