JEDDAH, 27 August 2004 — As UAE telecom giant Etisalat makes intense preparations to operate the Kingdom’s second mobile network, Saudi Telecom Company recently offered new free services, triggering major competition in the market, which was hitherto under the monopoly of the Saudi company.
In advertisements published in local Arabic newspapers, STC said it was offering new and additional landlines free of charge to all types of clients for four months from Aug. 28 until the end of this year. The offer helps clients save SR500 as the charge for installing a new line.
The company said people would be able to avail themselves of the new free service by visiting its client service offices, business sales centers, customer care centers (907) and VIP sales centers. “We offer this service to meet the requirements of our clients,” Al-Jazirah Arabic daily quoted STC as saying.
A consortium led by Etisalat won the Kingdom’s second mobile license earlier this month by bidding SR12.21 billion. Etisalat said it was planning to launch full-scale GSM services in major Saudi cities providing one million lines within six months.
Obaid Saeed ibn Meshar, senior executive vice president of Etisalat, indicated that the new Saudi mobile company could cut charges up to 15 percent. “We have got powers to reduce telecom service charges up to 15 percent,” he said.
However, Meshar emphasized that his company does not want to enter a price war with STC, adding that such a war would not serve the interests of either firm. He said any rate cut would depend on demand and supply.
Khalid Abdullah Al-Molhem, STC’s executive president, has said that the entry of Etisalat would not affect his company’s market share.
