NSN forms joint venture in KSA
Joint venture with local telecoms company to help expand Saudi business
Finland-based telecom vendor Nokia Siemens Networks has signed a deal with local Saudi Arabian telecoms specialists, Al Sarya Telecommunications Company and Belal Company, to form a joint-venture to expand its business in the country.
The joint venture company, which will be called Nokia Siemens Networks al Saudia Ltd, will combine the local knowledge of Al Sarya Telecommunications Company and Belal Company with the scale and expertise of NSN to tap growth opportunities in Saudi Arabia.
The joint venture will complement and not replace NSN's existing business in Saudi Arabia. "The joint venture has a specific mission of service delivery and implementation, whilst NSN's Saudi office will focus on sales of equipment and products. This will allow them to specialise and grow with increased levels of competition in the KSA market," a spokesperson for the company told CommsMEA.
Under the terms of the deal, the joint venture will offer operators services in four main areas comprising: network implementation; business solutions; managed services; and hardware and software maintenance.
Jorg Erlemeier, head of Middle East region, NSN, said that the joint venture would provide "the right platform" to develop its business in Saudi Arabia.
"This strategic partnership should allow us to pursue new directions such as the possibility of offering multi-vendor services and will unlock fresh revenue streams. This is a unique opportunity at a time when the Saudi telecom sector continuous to grow at an impressive pace," he said.
Erlemeier added that although telephony penetration rate is already one of the highest in the Middle East region, mobile subscriptions are expected to grow by at least 10% in the next two years.
The new venture will be led by executive director Ali Damiri, who previously headed up NSN for Saudi, the Levant and Iran sub-region, covering six countries.
Al Sarya Telecommunications Company and Belal Company are both members of the Ghazzawi Group of Companies.