The CITC claims the move is to ensure that the three telecommunications companies do not “tamper with the fair competitive environment.”
The Saudi telecom regulator had earlier insisted that all three companies charge 55 halalas per minute for calls received by customers while out of the Kingdom.
Although CITC’s move would boost revenue for all three, they have not welcomed it. An official at Mobily (which along with STC provides free call reception to a select number of customers when abroad) told Arab News on condition of anonymity that while it respects the role of the telecom operator, “the CITC regulations do not prevent us from offering free service to our customers.”
In the case of Zain, which has implemented the decision, the move scuttled its One Network marketing concept. Under One Network, Zain’s customers traveling to six countries — Saudi Arabia, Jordan, Bahrain, Kuwait, Sudan and Iraq — could make calls at local call rates and receive them for free as well as linking into Egypt’s Mobinil.
CITC’s imposition of roaming tariffs comes a few days after Saad Al-Barrak, Zain’s former CEO, resigned from his post. Al-Barrak had worked for years on Zain’s One Network concept. His resignation followed reports that the company has lost almost SR5 billion during its short period of activity so far in the Saudi market. The CITC is convinced it can force the international roaming charges. It says that all three telecoms went ahead with offering free roaming services without its consent.
The CITC reiterated that it would not stand against the interests of the subscribers as long as the offers made by the mobile companies were not against its rules and regulations. “The CITC had previously approved a number of reduced promotional offers made by the mobile companies which were to the interest of the subscribers,” it said.
Meanwhile, customers are fuming. “Why would the CITC insist that companies charge us higher fees?” said Saudi Ali Al-Harthi, an engineer. “The CITC should only care that companies actually follow through on their advertised offerings.”
Wael Al-Fares, a Saudi university student, was also upset at the prospects of seeing higher mobile phone bills.
“Did you see how much money the mobile companies made last year — during bad economic times?” he asked. “Mobiles are essential to life now but we can hardly afford to pay our phone bills.”
Al-Fares may have a point. In January, Reuters reported that revenue from STC’s operations exceeded SR50 billion in 2009. Mobily’s gross revenues increased 21 percent to SR13.058 billion last year. Zain’s fourth quarter 2009 revenues more than doubled to a record SR895 million but the Saudi company’s net loss for all of 2009 swelled 36 percent to SR3.1 billion.
The move will not be welcomed by the many foreigners working in the Kingdom who have taking advantage of the free international roaming service offered to some clients by Mobily and STC to phone home on the cheap. They had been buying a SIM card in Saudi Arabia and sending the card back home so that their families could receive calls at no charge.
“I have been an STC customer for 20 years,” said Filipino Benny Paulino, a cost engineer. “I don’t have an issue with STC’s actual telephone service, but I would like to see them improve their customer service. The waiting time on 907, the customer service line, can be intolerable. Overall, their service is good, but it could be better.”
Paulino tried to be diplomatic in his criticism, but Canadian Jamal Dadah, an aircraft technician, was more direct. “Local customers get ripped off by the telcos too often. I am a Zain customer. When I go on vacation for two months, my phone is off, but when I come back I have call charges on my bill. How is that possible?” he asked.
