JEDDAH, 9 September 2005 — Saudi Arabia’s mobile phone market is not saturated, but set for tremendous growth. There has been a remarkable increase in mobile penetration in the Kingdom. Recent studies indicate that the country’s market for mobile phones is set for a major boom over the coming years.
The multipurpose use of the mobile phone is contributing a great deal toward its utility as a need rather than a fashion statement. Today, mobile phones are not merely a device for voice communication, but are becoming a comprehensive tool — as a camera, and for a host of other uses including MP3 player, data communication, e-mail, and Internet browsing. Broadband Internet and video screening on the mobile phone will be among the future attractions.
The expansion across the Kingdom is triggered by the recent entry of the second mobile operator (Mobily-Etihad Etisalat), development of the third generation (3G) technology, and likely entry of a third mobile operator within about a year. Demand for replacements will increase with the introduction of the 3G technology.
“In fact, the Kingdom’s market is estimated to exceed seven million mobile handsets by 2005-end and expected to grow by 20 percent every year in the next three years,” Cellucom’s Dubai-based Managing Director Arun Nagar told Arab News on Wednesday night.
He spoke on the sidelines of the opening of the new Cellucom Mall, a two-storied facility dedicated to mobile phones, on Tahlia Road. Saudi Rally Champion Ahmad Al-Sabban inaugurated the new mall, which also houses 54 other outlets.
“The mall is part of Cellucom’s strategy to aggressively expand its operations in the Kingdom, which is by far the largest market in the Gulf,” Nagar said. Aside from an extensive range of latest mobile phones from major brands and original accessories, what sets the company apart is its range of services. These include lifetime warranty, 30-minute repair or replace service, regional warranty, trade-in facility, and value-added software. “We’ve showrooms in all the six GCC states and in Africa - Kenya, Uganda and Tanzania,” he said. By the end of December, we plan to have 23 outlets.
“Cellucom has ushered in a mobile phone retail revolution,” Sara Holding Vice President Waleed A. Bahamdan said. “We plan to open a second store in Jeddah, a second store in Riyadh and one in the Eastern Province by September-end. We also have a future expansion plan with service centers, all ISO 9001 certified, around the Kingdom.
“Cellucom’s retail vision, exhaustive product range and services are in keeping with the vision we’ve outlined for this unique mall,” said Saeed A. Al-Garni, managing director, Al-Kaf Construction Company, the developer of the mall.
