The Saudi Communication and Information Technology Commission (CITC) recently qualified three consortia for mobile virtual network operator (MVNO) licenses in a bid to stimulate competition and provide users with more alternatives. In a statement, it said the licenses would improve the level of service, lower prices, enhance customer care and increase job opportunities for citizens.

The three beneficiaries under the project included Axiom Telecom, Jawraa Lebara and Virgin Mobile.

“MVNOs can be extremely nimble and focus on different segments of the market to deliver better choices and variety for consumers. Their likely impact in Saudi Arabia is potentially very promising, helping the telecommunication industry achieve growth through new propositions and services,” said Matthew Reed, principal analyst and head of research for the Middle East and Africa at a leading research organization.

Based on the Cellular Competition Intensity Index, the Saudi mobile market is already the most competitive in the Arab world. Mobile phone penetration stands at 181.6 percent, equivalent to nearly two subscriptions per individual, and the emerging broadband market offers huge growth opportunities for the Saudi telecoms industry.

According to figures presented by research firm Ipsos at the recent ArabNet conference, the Kingdom’s smartphone penetration rate stands at 63 percent, which is among the highest in the world.

Faisal Al-Bannai, CEO of Axiom Telecom, which qualified for an MVNO license as a part of the Axiom Mobile consortium, said: “Saudi Arabia boasts one of the youngest and most mobile-savvy populations on the planet. The potential to harness this technological advantage to innovate and compete on both the regional and global scale is extremely exciting and definitely something we want to be a part of.

“More than ever before, mobile technology is a vital enabler of life across the Kingdom. We are determined to pull out all the stops to launch best-in-class services that are cutting-edge, inclusive and crucially built to cope with the rich user experience demanded by Saudi Arabia’s highly discerning smartphone and tablet users.”

Axiom Telecom qualified for an MVNO license by the CITC and is now engaged in the final phase of the process. The company has a forward-looking strategy that will be bolstered by a significant retail presence by providing a direct and influential link to a wide target audience.