RIYADH, 16 April 2004 — Saudi Arabia is to slash Internet access rates by 10 to 45 percent from May 1.
The move, aimed at boosting the number of subscribers, follows approval of the discounted rates by the Ministry of Telecommunications and Information Technology, the Communicatons and Information Technology Commission and the King Abdul Aziz City for Science and Technology (KACST).
Internet service providers (ISPs) will receive 45 percent discounts on the international network and 25 percent on the local network. “STC has also decided to give 45 percent discounts to DSL customers through the ISPs, whereas 10 percent discounts will be given to consumers on lease lines,” a statement said here yesterday.
KACST has been looking into the volume and changes in the profile of the subscribers on Internet. It is also focusing on improving the quality of Internet services by providing higher bandwidth and by working closely with ISPs.
The Kingdom’s 22 ISPs have been unable to achieve targeted profit figures because the access charges are so high.
The Kingdom, with a population of 22 million, has more than 700,000 Internet subscribers and some 1.5 million users, according to an estimate. Up to 70 percent of users are not regular Internet subscribers but use the service occasionally through widely available pre-paid cards.
The service is controlled by KACST as the main domain provider.
The Internet penetration rate in Saudi Arabia still remains low, with the UAE comfortably leading the region. The Kingdom has reported a penetration rate of eight percent.
