JEDDAH, 18 March 2006 — The Saudi Telecom Company announced yesterday that it was planning to launch third generation mobile phone services this year in all major cities of the Kingdom.
“We’ll launch 3G service with all the related services,” said Saud Al-Duwaish, acting STC chairman. He hoped that 3G service would strengthen the STC’s position as the market leader in the Kingdom.
Al-Duwaish did not say when the company would actually launch the 3G service, which is expected to improve telecommunication services in the country.
The Communications and Information Technology Commission (CITC) granted a 3G mobile license to the Saudi telecom giant in July last year for SR753.7 million. At that time CITC chief Mohammed Ibrahim Al-Suwail told reporters his organization expected STC to provide 3G services to the public within the next 18 months.
With the upgrade to 3G, customers will be able to access the features of the advanced 3G services at higher transmission speeds and convenience. In order to use the new services and higher transmission speeds, customers would need 3G-enabled mobile handsets.
STC is facing tough competition from Mobily, the Kingdom’s second mobile service provider. Mobily showcased its new 3G technology in February. The technology that revolutionizes telecommunications with unique features will enable callers to view each other in real time during the course of the call, identify a caller’s position using GPS technology or watch satellite television channels.
Al-Duwaish said the STC was also planning to expand its investments both within and outside the Kingdom. “We’ll analyze investment opportunities carefully, not only outside the Kingdom but also within our market,” he said.
The STC chief emphasized his company’s resolve to provide quality services to its clients at competitive rates. “These include high-speed Internet service, distance education and all types of recreational services,” he said.
Al-Duwaish indicated his company’s plan to offer advanced Internet-based services to the business community.
“STC’s profits increased by 34 percent in 2005, the year when the second operator entered the market,” Duwaish said suggesting that the arrival of Mobily had not affected its business.
STC posted a net profit of SR12.45 billion last year, but annual revenue growth fell to seven percent from 12 percent in 2004.
Al-Duwaish was bullish about the future of the Kingdom’s telecommunications market. “The entry of third operator in mobile phones and second operator in land phones will result in optimum utilization of the Kingdom’s telecom network,” he said.
