RIYADH, 18 May 2004 — How the Saudi Telecom Co., as the sole GSM operator in the Kingdom, will respond to the entry of a second GSM operator by July this year is one of the challenges its Executive President Khaled Al-Molhem will spell out at CONNECT, an international telecoms summit to be held in Dubai from May 30 to June 2.
IIR Middle East, the organizer of the event, said the summit would highlight changes in the Saudi telecom sector.
Eleven consortia, including major regional operators Etisalat, Orascom and MTC, are in the bidding for Saudi Arabia’s second cell-phone license.
“The entry of a second GSM player is a welcome development, that we have anticipated and been preparing for it for several months,” Molhem said.
“We foresee several benefits arising out of this situation, for industry players and customers alike.
The industry is currently growing at an average rate of 30 percent annually, and we are confident that a new player will expand the market, rather than restrict STC’s market share.”
“The immediate impact of liberalization is a shift in prices in the face of increased competition.
The decreased pricing will tap into previously unexplored markets within the Kingdom, allowing more consumers to avail themselves of GSM services,” he said.
The theme of the conference is “Maximizing Profitability in Competitive Telecom Markets”.
