DUBAI, Jan 19 (Reuters) - Saudi Telecom Co 7010.SE (STC) met estimates with a 10.3 percent rise in fourth-quarter profit on Thursday as operating costs and operating expenses declined.

The former monopoly, which competes domestically with Etihad Etisalat 7020.SE (Mobily) and Zain Saudi 7030.SE , made a net profit of 2.15 billion riyals in the three months to Dec. 31, up from 1.95 billion a year earlier, a bourse statement said.

Six analysts polled by Reuters had on average forecast a profit of 2.06 billion from STC, which owns stakes in operators in the Gulf, Turkey and Asia.

The company on Thursday announced it would pay an interim quarterly dividend of 1 riyal per share. >

(Reporting by Alexander Cornwell; editing by Jason Neely) ((Alexander.Cornwell@thomsonreuters.com;))