ISPs shed more light on merger

AwalNet, and Naseej believe their historic merger will help reduce costs and improve the quality of Internet access.

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By  David Ingham Published  April 11, 2002

AwalNet, and Naseej have said that faster Internet access and more competitive pricing will be the result of their three way merger.

The three Saudi Arabian ISPs formally confirmed their intention to merge at a press conference in Riyadh this week. The name of the merged ISP and who will occupy senior positions remains to be decided.

H.H Prince Mohammed Khalid Al Abdullah Al Faisal, president of Al Faisaliah Group, owner of AwalNet, said that the aim of the merger is to achieve economies of scale “by combining back offices, IT infrastructures and staff.”

However, certain non-ISP activities will be left out of the merger and will remain the property of their original owners. Naseej, for example, will keep its popular portal as a separate business and Al Alamiah will retain its e-business consulting and integration division.

The new ISP will have 100,000 subscribers and around 25% subscriber market share, according to the companies. Without elaborating, the companies said that they expect other ISPs to join the merger.

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