RIYADH, 24 July 2006 — Saudi Telecom Co. (STC) has renewed its network use agreement with Etihad Etisalat (Mobily) for another three years. Based on this agreement, STC will provide mobile network coverage services nationwide to Mobily customers at areas not yet covered by the Mobily network. The agreement covers all regions and major and minor road not covered by the Mobily network in various parts of the Kingdom.
Saud Al-Dewish asserted that the agreement is a continuation of former arrangements and will bring STC approximately SR3.00 billion in revenue over the next three years. The agreement will avail customers of both companies of common communication with a full coverage to Mobily customers. The agreement reflects STC’s keenness to enhance and diversify its revenues through optimizing the use of available capabilities of its network, which is one of the largest diverse telecom (mobile-telephone-data) networks in the Middle East.
It is worthwhile noting that the agreement would enable customers of the other service provider to tap into Al-Jawal’s more than 4,000 base stations (towers) at various cities and provinces of the Kingdom not currently covered by Mobily. Moreover, it will be possible, under the agreement, to use the Al-Jawal network in over 3,000 villages and provinces in addition to more than 20,000 km of main and minor roads connecting major cities and provinces covered by STC but not yet served by the Mobily network.
Another agreement has been signed for additional services provided by STC’s telephone sector including the 700 service, 800 toll-free number service designated to the business community, and the 9200 unified number service functioning as a link that combines common business sector lines in a single number. The agreement will offer customers of the other service provider an easy access to this service, and augment and diversify STC’s revenues from the various service components and networks offered for third parties. STC is set to benefit from new entrants to the Saudi market next year by concluding similar agreements with them to utilize the existing STC capabilities and network resources.
