JEDDAH, 11 March 2007 — Ten consortia led by leading international companies including Verizon Communications of the US and Mahanagar Telephone Nigam Ltd. of India and China Telecom are competing for the Kingdom’s second land phone license.

“The Communication and Information Technology Commission (CITC) has received applications from 10 consortia in response to the request forms issued on Oct. 14, 2006,” an official statement issued by the commission said yesterday.

The new license is set to break the monopoly of state-owned Saudi Telcom Company (STC) in fixed-line phone services in the Middle East’s largest telecom market. STC has about four million land phone subscribers in a country with a population of nearly 27 million including expatriates.

The 10 consortia are: Optical Communications Company (Verizon), Khaled Ahmed Al-Juffali Co. (WorldCall Telecom of Pakistan), Saudi Telecom Holding Co. (Qtel-Atco), Al-Mutakamilah (Hong Kong’s PCCW), Electronet (Autelia of Italy), Etihad Etisalat (Mobily), Atheeb Telecom (Batelco of Bahrain), Makkah Telecom (China Telecom), Al-Shola (MTNL India) and Bayanat (Korea Telecom).

“During the coming weeks, the STC will study and evaluate the applications, based on the criteria specified in the request for applications (RFA),” said Sultan Al-Malik, a spokesman of the commission. The winner of the license will be announced soon.

Dr. Mohammed Al-Suwayel, governor of the CITC, expressed his appreciation for the efforts and contributions of all parties who participated in the various phases of the licensing process. “We wish success to all in this important phase of liberalization of the Kingdom’s telecom market,” he said.

Last month, the CITC said nine consortia led by major international companies including Egypt’s Orascom Telecom, Kuwait’s Mobile Telecom Co. (MTC) and South Africa’s MTN were vying for Saudi Arabia’s third mobile license, which is expected to generate SR20 billion for the Kingdom.

Other consortia in the race are Kingdom Holding Co., owned by Prince Alwaleed bin Talal, which is bidding with Turkish mobile operator Turkcell, and Dubai-based Oger Telecom, Reliance Telecom with local partner Abdullah Abdulaziz Al-Rajhi, Samawat with Bharti, Al-Shoula with MTNL, and Tawasul Digicel.

The CITC did not give any value for its second land phone license and third mobile license. A consortium led by UAE telecom giant Etisalat paid SR12.21 billion for the second GSM license in 2004. Etihad Etisalat, in which the UAE company has a 35 percent stake, captured 30 percent of the market within 18 months after the launch.

Saudi Arabia’s mobile penetration rate is about 76 percent and could rise to 95 percent within two years as the Kingdom’s population grows, a market analyst said. Average revenue per user is about $33 compared to $12 in Egypt, he said.

Saudi Telecom was established in 1998. It sold 20 percent of its shares to Saudis in a major initial public offering in 2002 and five percent each to the General Organization for Social Insurance (GOSI) and Pension Fund. It has won 62nd position among the world’s 500 largest telecom companies in 2005, in terms of market value.