JEDDAH, 18 February 2003 — The Saudi Telecom Company (STC) has formally told private phone cabin owners that their investment in the business is temporary and that their permits can be canceled at any time without any financial or other formalities from STC.
Saleh Al-Jasir, media manager at STC, told Arab News that the company had originally given five-year permits to private investors, but the period was extended to an additional three years.
He explained that STC periodically reviewed its rules and regulations with a view to improving the quality of its services to the public.
The permit enjoins some conditions on investors. One of these stipulates that STC has the right to cancel permits without any obligations. According to STC, the clause is essential because the market is open and new technology is continually being intro-duced.
STC has asked call cabin owners to sign the document which deals with canceling or renewing permits, paying the company every 10 days and absolving it of any liability in the event of embezzlement.
Investors have urged STC to reconsider the decision in order to safeguard their investment. They have also voiced their apprehension that the STC move may jeop-ardize their business and pave way for their final exit from the market. They want their rights protected.
Muhammad Al-Othmani, a call cabin owner in Jeddah, told Arab News that STC was enforcing its new rules and regulations without considering their cabin owner’s rights or interests.
When the company opened its doors for private investment they were given to under-stand that they were in it for the long haul, he added.
Of the 12,000 Saudis working in the call cabin business throughout the Kingdom, more than 300 are employed in Jeddah.
According to investors, their revenue dropped 55 percent lately because of the introduction of prepaid SAWA cards.
