JEDDAH, 12 February 2005 — Ettihad Etisalat, winner of the Kingdom’s second GSM license, will start operation in the second quarter of this year and cover 96 percent of the country’s urban areas, according to Khaled Al-Kaf, the company’s managing director.
“As per the agreement with the Communications and Information Technology Commission (CITC), our company will cover 96 percent of urban areas in addition to main roads within a year of operation,” Al-Watan Arabic daily quoted Al-Kaf as saying.
He said subscribers would be able to transfer their old numbers onto the Etisalat network. However, the company will deal with clients having outstanding payments to Saudi Telecom as per CITC regulations. “We are now in the process of constructing the network including switchboards. The company’s working team is trying to provide our services within the specific time,” he said.
Etisalat plans to offer its mobile phone services in 30 Saudi cities in the first phase, Al-Kaf said, adding that his company’s employees were trained to extend quality service. “Our products will meet the needs of citizens irrespective of their business activities,” he pointed out.
Al-Kaf revealed his company’s plans to introduce third generation (3G) mobile services in the Kingdom in 2006.
Abdul Aziz Al-Sughair, chairman of Ettihad Etisalat, reaffirmed the company’s plan to raise its capital from SR5 billion to SR7 billion in coordination with the Capital Markets Authority.
“We are raising the capital as part of efforts to improve our services and establish the necessary infrastructure,” he said. However, he did not give a specific date for the increase.
On Dec. 22 last year, CITC, the Kingdom’s telecom regulator, formally handed over the GSM license to Ettihad Etisalat to carry out various activities including operation of the second GSM, financing, designing, construction, maintenance and supply of equipment and materials.
The licensing provisions call for ensuring fair competition between STC and Etisalat and achieve clarity and transparency in procedures. “We would like to make sure that the new service providers are aware of the potential competition ahead of time, so that they can prepare their business plans accordingly,” said Muhammad Al-Suwaiyel, CITC’s governor. The CITC will apply certain regulatory provisions while keeping a watch on the operations, he added.
