RIYADH, 1 October — Zajil, which claims to be among the top five Internet service providers (ISPs) in the Kingdom with more than 50,000 subscribers, is positioning itself as a regional player as it seeks to penetrate the markets of the GCC states and the Middle East.

“At one time we used to have a phenomenal growth rate with 1,000 new subscribers being enrolled every month. Now it has stabilized to some 20 percent of the market,” Mohammed A. Al-Tuwaijri, chairman, Zajil, and Zahid Badshah, Zajil’s general manager, told Arab News in a joint interview.

Al-Tuwaijri emphasized that the decision to expand their services in the GCC states and the Middle East reflects their confidence in the Arab market, notably that of Egypt and Syria, where the market potential is huge. In Egypt, he pointed out, Internet banking through mobile phones is poised for rapid growth.

“We feel we have the expertise and know how to develop quality products and services for their needs,” he said. “We want to be a regional company more than a local company and act as a one-stop supplier.”

To this end, Zajil has already taken the necessary steps by qualifying for ISO-9001 and 9003 certification in terms of its help desk and technical services. It has also forged strategic alliances with major mobile service providers and Internet service providers for offering a range of services, including news supply, news alert, financial services, and entertainment products. News alert is of special interest to individuals who play the international stock markets. It will send a message to the subscriber when there is any price fluctuation in the investment portfolio that he is holding. All Zajil’s new services will be available within the coming six months.

One of the areas of concern for Internet users is the price factor. However, according to Badshah, Internet prices are bound to drop as competition stiffens. Part of the problem, he observed, is the fact that prices have not been strictly regulated.

“King Abdul Aziz City for Science and Technology, the regulator of the Internet services market, sometimes is not taking action against companies that are undercutting the market. It needs to enforce the pricing policy properly for the healthy growth of the market,” he advised.

Zajil has responded to this challenge with its decision to launch Zajil Club in October for its subscribers.

Zajil Club members will be able to look forward to a range of incentives, such as discounts in subscription rates, and prizes for various competitions.

“We are far behind the European market when it comes to Internet subscription and services,” Al-Tuwaijri said. “Even so, the Internet market in Saudi Arabia has matured and the consumer is looking for quality in products and services. So we are alive to this challenge. Moreover, this challenge is coming from across our borders, where major players like Etisalat of the UAE, for example, are targeting the Saudi Internet users both on the price and services front,” Badshah added.

As for the problem of access to the Internet, it is a matter of building up connectivity. This matter is being addressed by the Saudi Telecom Company, which has launched ADSL services for simultaneous access to the Internet and phone. This should pave the way for the rapid expansion of the market, since more than 60 percent of the Internet users are below the age of 20, Badshah explained.

Zajil has welcomed the government’s decision on the partial privatization of STC, as a result of which 30 percent of STC’s shares will be floated for subscription to the Saudi public and government agencies.

“It is a good move, as it reflects the government’s determination to respond to the challenges thrown up by the WTO membership bid,” Al-Tuwaijri said, confiding that he would be among the investors when STC’s shares are quoted on the Saudi stock exchange.