Saudi Arabia’s telecom market is about to witness a revolution with the entry of new players. For the consumers, not only will this mean more options but also better service and better prices.
Nexnation Communication Bhd has inked a content provider deal with its unit Usape Nelson Wireless Sdn Bhd and Saudi Arabia’s Tawasul Communication Co LLC to enter the Middle East. The agreement requires collaboration between the companies for R&D, provision of wireless VAS (Value Added Services) (with related software) and Internet and wireless technologies, that The Edge Daily reported in its news.
"The Middle East is still very much in the middle of the mobile boom and the market is dominated by high-end devices and users. There is strong demand for localized content and applications and I am pleased that Tawasul recognises our proven track record in the Asia Pacific region, and has chosen to partner us to fulfil the growing demand for wireless value-added services. Also I am confident that this agreement will pave the way for us to make a strong presence in the Middle East region” said Tey, Nextnation's Managing Director, according to the news from Wireless design Asia, Barnama.
Economics Studies House, based in Riyadh, reveals the wide recognition of Saudi Arabia as the leading telecom market in Middle East. This sector is estimated to have a current growth of around 30% annually. The penetration rate of mobile phone of the nation is forecasted to rise to 60% through 2014 with total subscribers surpassing 20 million. Tremendous potential is also suggested for the higher purchasing power of citizens for new foreign telecom players to offer their services in Saudi Arabia’s telecom market.
Saudi Arabia is second to none in the Gulf region as a telecom market with 4 million landlines and seven million mobiles. Its extremely low teledensity also makes it a highly profitable market with an annual growth rate of 30%. A population crazy about gadgets and low Internet-penetration rate also means Saudi Arabia has huge potential for third generation mobile phone technology.
At RNCOS, a research analyst says, Saudi Arabia’s telecom market is set for boom with the entry of new players. The implication of this is better consumer service, applications and new services. At the same time, intensified cost warfare and improving tele-density in the country will boost the prospects of the Saudi Arabian telecom market even further.
Related Market Research Reports:
Middle East Broadband Forecast to 2010
Middle East and Africa Broadband Sector Analysis
Changing Faces of The Global Mobile Handset Market (2007)
