Doing Business In Saudi Arabia - Bna

Telecommunication Services (TES)
Overview Return to top
The Saudi government foresees the kingdom's telecommunications sector revenues to
exceed 55 billion Saudi riyals ($14.7 billion) by 2010, up from SAR40 billion in 2006,
Telecom sector revenues grew from SAR19.8 billion in 2001, to SAR40 billion by the end
of 2006, with annual growth of 15%, revenue is expected to exceed SAR55 billion by
2010. STC and Mobily, the current mobile telecom providers in Saudi Arabia have
generated combined operational revenue of SAR39.8 billion in 2006, from fixed-line and
mobile phone services.
The Saudi Arabian cabinet has recently granted the country's third mobile license to a
Kuwaiti MTC-led consortium. It's also expected to grant licenses for three new fixed-line
operators.
Saudi Arabia had 19.5 million mobile phone lines by the end of 2006, with a penetration
rate of 81.7% of the population. Digital subscriber lines reached 300,000 by the end of
the first quarter of 2007. Internet users reached 5 million, or 20%, of the population.
The Saudi government is mulling investing SAR3 billion to execute its e-government
program that will allow 40 state agencies to provide 150 government services through
electronic media within five years.
Best Prospects/Services Return to top
The Kingdom of Saudi Arabia is expected to need a significant amount of technology,
software and hardware to create the new digital infrastructure that the Saudi government
is hoping for.
Best Prospects include:
DSL access switch, enabling multi-service transmission equipment,
Fiber-optic satellite links
Wideband transceivers
Network protocol software and systems
Broadband wireless access system
Opportunities Return to top
The Saudi Council of Ministers has approved a national plan for the development of its
telecom and information technology sector with the objective of transforming the
Kingdom into a knowledge-based society and a digital economy.
The plan calls for the establishment of a powerful telecom and IT industries to make
them one of the major sources of income.
5/13/2008