RIYADH, 12 March 2006 — Saudi Arabia will grant by the end of 2006 new mobile and fixed phone licenses, the telecoms watchdog said yesterday.
The new licenses will break the monopoly of Saudi Telecom Co. (STC) on landline phone services and add at least a third mobile phone operator after STC and Etihad (Mobily).
The Communications and Information Technology Commission (CITC) said in a statement it would publish the licensing schedule in the third quarter of this year and evaluate, select and award the new licenses by the end of the fourth quarter. Analysts had anticipated that a second fixed-line license in Saudi Arabia would be fiercely fought over.
While it has the largest telecommunications market in the Gulf Arab region, Saudi Arabia’s 4 million existing fixed lines offer scope for growth for a country of 24 million people. The Kingdom has a far lower Internet penetration.
With some 14.5 million mobile lines, the wireless segment is also set for growth.
In November, CITC head Mohammed Al-Suwaiyel voiced fears that declining international interest in landline services could hurt Saudi plans to issue a second fixed license in 2006. Al-Suwaiyel has said a third mobile license would be issued by next September — possibly more than one.
Saudi Arabia’s second mobile phone operator, Mobily, which started operation in May, reported in February 2.3 million users against 12 million mobile phone clients for STC.