RIYADH, 31 October — Plans are under way to introduce more players to the Kingdom’s telecommunications sector. Two companies will be set up to compete against the Saudi Telecom Company in the fixed and mobile telephone services.
This was disclosed by Sir Bryan Carsberg, leader of the MEED/ITIM International Telecoms & IT delegation to Saudi Arabia, following his talks with Jameel Mulla, governor of the Saudi Communications Company.
He was speaking at a seminar on investment opportunities in the telecom sector where speakers also stressed the need for transparency in the operations of the telecom sector and non-discriminatory approach to other players entering the field.
The participants were told that despite the vagaries of the oil prices, Saudi Arabia and the other GCC states represent the engine of growth in the Middle East. The potential investors should take a closer look at this market characterized by a five percent growth rate, financial and political stability, population surge, and abundant energy sources.
Asked about the substance of his talks with Jameel Mulla, Sir Bryan said the commission is exploring various possibilities as a regulatory authority. "I have heard from several sources that they are expecting a new mobile company to be set up in 2004. It could be a joint venture company, including a foreign partner. It is a good move, as it will facilitate the transfer of expertise through a foreign company."
Speaking of his experience as a former regulator of telecom services in Britain, Sir Bryan referred to "incentive regulation‚ enabling companies to qualify for such rewards for holding the price line, maintaining quality control, and inventing new products."
Dr. Abdulaziz Al-Jazzar, chairman of the Riyadh Chamber of Commerce and Industry’s high tech committee, said the STC was getting set to meet the competition that was expected with the gradual opening up of the telecom sector.
He said the government was considering allowing another player to compete against STC for the fixed telephone services.
Dr. Abdulrahman Al-Mazi, chairman, International Networks Engineering and managing director, National Information Systems, said the regulatory authority should consider introducing transparency in its operations and promote innovative products/services and pricing without interference.
