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Dual licence win key to success in Saudi

Securing both the fixed and mobile licences on offer in Saudi Arabia could prove crucial for the new entrant into the market, an IDC analyst has warned.

Securing both the fixed and mobile licences on offer in Saudi Arabia could prove crucial for the new entrant into the market, an IDC analyst has warned.

Eight players are currently competing for the Kingdom’s third mobile licence, including Kuwaiti telco MTC, but IDC’s Mohsen Malaki said that, with Mobily vying for the fixed licence, being able to offer both mobile and fixed services would be imperative for the new player.

“Anyone who is bidding a high price [for the mobile licence] should consider if Mobily gets a fixed line licence also, they can also start offering bundle services which lock in a lot of customers and helps retain the customer base so a third entrant with mobile only will then have a bigger uphill battle,” he pointed out.

Malaki said obtaining both licences would enable the new entrant to compete with the Kingdom’s number one telco Saudi Telecom Company (STC) by offering, for example, converged services, as well as giving it the edge over Mobily.

The arrival of a third player is set to have an explosive impact on the Saudi market, Malaki predicts.

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