Saudia-Online the Net Gate to Saudi Arabia Market
Saudi Arabia Business News
Business Opportunities
Business Guide
Companies Directory
Corporate Websites
Currency Exchange
Saudi Arabia Events
Local News
Saudi Stocks
Monthly Economic Reports
Saudi Arabia Travel
Saudi Arabia Weather
Submit Press Release
Read Press Releases

Free Websites
 for Saudi companies and Establishment


for Foreign companies 
interested in exporting
to Saudi Arabia

Community Sign Up

Message Boards
Should women be in the army?

About Saudi Arabia
About us

Arabic cuisine
Arabic newspapers

Arabic radio and TV

Free downloads

Saudi Arabia ISP's

Science and Technology

Send us feedback


Traveling to Saudi Arabia

Phone Free

Top Saudi Arabia Business News


Shoura OKs bill to allow foreign investors in telecom sector

 Riyadh 15th May 2001

  The Shoura Council passed yesterday a draft bill to end the state’s monopoly of the telecom sector and allow foreign investors. The bill, which is subject to government approval, allows for the establishment of new shareholding companies while not ruling out foreign investors, Council member Abdul Aziz Al-Suwayegh said.

“The bill aims firstly to break the monopoly over the telecom service,” which is controlled by the Saudi Telecom Company (STC), Suwayegh said. The government has been considering plans to privatize the firm which also controls the Internet and mobile services.

The bill recommended the setting up of joint stock companies for providing services without stipulating a minimum capital. The bill aims at paving the way for the development of quality telecommunication services at cheaper cost with the free play of market forces. It will also help the sector to catch up with the rising demand from other sectors as well as the demands of the fast growing population.

According to another Council member, the new bill, which will expedite the restructuring of the telecommunication sector, will coincide with the founding of a Telecommunication Authority to supervise the whole sector and monitor the prices and the quality of services. However, the proposed authority will by no means reduce the significance of the Ministry of Post Telegraph and Telephone, he added.

The 11 chapters of the new bill cover general rules, licensing, rules of competition, frequencies, networking, machinery and equipment, utilization of real estate, and violations and fines.

The bill also defines the general policies of the sector and the general framework for expansion and development as well as the rights of the government, service providers and beneficiaries.

The Kingdom has more than three million land lines and almost two million mobile lines. Four foreign companies — Ericsson of Sweden, Finland’s Nokia, and Motorola and Lucent Technologies of the United States — are bidding to expand the GSM network by one million lines, according to the Middle East Economic Digest. Saudi Arabia also has just under 200,000 Internet subscribers and an estimated 600,000 users, figures which IT experts term modest for a population of more than 20 million.

They say introducing competition to the vast Saudi market would upgrade the service and cut its existing high rates. An international e-commerce conference in Riyadh last week, among a list of recommendations, called on the authorities to cut telecom rates and promote electronic trade in the Kingdom.

The conference said the Kingdom must have high quality and reliable telecom facilities, and that plans to upgrade the telecom infrastructure must be accelerated.

The policy-steering Supreme Economic Council in February drew up a list of sectors to be excluded from foreign investment, including telecommunications. But the list is being modified.

Source: Arab News© SPA and Agencies
Send Page To a Friend  

Starting Business with Saudi Arabia Use the Saudi Business Guide

Join the mailing list
Your Email Address:

Archives Section

Back to Business News


Free services in Saudia-Online
Free services

Free Websites for 
Saudi Arabia

Free services

Free Websites for Saudi companies and Establishment

Free services

Free Websites for
Saudi Arabia Travel
Agencies and Companies

Free services

Free Domain

Free services

List your Saudi
Arabia Company in
our Directory

Free services

Subscribe to our

Free services Jobs......
Post a job!

Job Openings

Free services

Advertise Free
Classifieds section. 

Free services

Gift Reminder

Free services


Get Stock Quote: Enter Symbol's)

Symbol Lookup
My Portfolio
Our Privacy Vow 


Make Saudia-Online My Start Page  -  Bookmark Saudia-Online
Contact Us -  Advertising Info -  About Us -  Terms Of Service -  Add My Site -  Privacy Policy 

© 1999-2000 by Horizon for Commercial Development Co., Ltd, All rights reserved.
  Saudia-Online,Malls2Save,JeddahMalls,RiyadhMalls,RiyadhShops,SaudiMade,Travel2Saudi and HDC are  trademarks of Horizon for Commercial Development Co. Ltd.  P.O. Box 14657, Jeddah 21434, Saudi Arabia
 Telephone 00966-2-6693585, Fax 00966-2-6693472

15 May 2001 06:13:43 PM

Click Here!