Saudi Telecom Environment
Table of Contents
TABLE OF CONTENTS 2
1. SAUDI TELECOM ENVIRONMENT 3
2. COMPETITION AND BENEFITS 8
3. PRICE SETTING 10
4. PERFORMANCE OF KEY MARKET PLAYER 11
5. CONCLUSION 12
6. REFERENCES 14
1. Saudi telecom environment
Being resident of Saudi Arabia, I have chosen Saudi Telecom Environment as subject for my case study. Even though some of the things could not be examined very closely like that of a democratic country, I have made sincere efforts to examine it based on information available thru internet, topics learned so far and my experience.
Particular emphasis placed on the telecommunications sector during the Seventh Development Plan (2000-2005). The Plan calls for increasing line density rates to 25 lines per 100 people by 2005, from 10 lines per 100 people in 1996. In 2003, line density rates stood at 15.54, with an additional expansion of 450,000 fixed lines, expansion being carried out by four telecommunications companies.
The Ministry of Communications was established in 1952 with the responsibilities of operating post and telecommunications services, roads, railways, and all other communications operations in Saudi Arabia. The Ministry of Post, Telegraph, and Telephone (PTT) replaced the Ministry of Communications in overseeing the Saudi telecommunications sector in 1976. PTT was renamed the Ministry of Telecommunications and Information Technology in April 2003.
In May 2001, Saudi Arabia approved a bill liberalizing the telecommunications sector and opening up the sector to foreign investment and competition. The Saudi Cabinet passed new laws on the regulation of the sale of stakes in the telecommunications sector to the private sector. Laws were passed to establish a regulatory system for the sector, and create the Saudi...