Tuesday, Apr 17, 2012
DUBAI (Zawya Dow Jones)--Saudi Arabia's Etihad Etisalat Co. (7020.SA), better known as Mobily, is currently in talks with a number of global Mobile Virtual Network Operators, or MVNOs, to host one on its network in the kingdom by the third-quarter of the year, the telco's chief executive said Tuesday.
"We are setting the strategy at the moment and we are talking to a number of MVNOs worldwide who have a profile that we are interested in," Khalid Al Kaf told reporters on the sidelines of a conference in Dubai. "We believe by the end of the year there will be something in the Kingdom of Saudi Arabia regarding the MVNO", adding he hoped to have an MVNO in place by the third quarter.
Saudi Arabia is expected to introduce three MVNO licenses in the Kingdom in 2012. MVNOs typically rent capacity on the operator's network to target a particular segment of the telecoms market.
Mobily's Al Kaf said the company will only host an MVNO "if it is going to add value for us".
"We look to an MVNO like a partner and if this partner is going to add a value. They have to have a segment and they address that segment much better than us," he added.
In terms of mobile tower sharing, Al Kaf talks between Mobily and Saudi operator Saudi Telecom Co., or STC, are ongoing, but he hoped an agreement could be reached sometime this year.
"We look into this one [tower sharing] as a very positive move for both of us and the industry. It is taking some longer time than we are expecting, but we are on the right track. There are a lot of evaluations. There are a lot of due diligence and dialogue on how to set it up," Al Kaf said.
On Monday, Mobily reported a 21% rise in first-quarter net profit on year to 1.2 billion Saudi riyals ($312.9 million), on higher revenue from voice services.
Al Kaf reiterated Tuesday that he sees the company's double digit rate of profit growth continuing until 2015.
The company also said Monday that it will collaborate with Saudi Arabia's fixed line operator Etihad Atheeb Telecom, or GO, to provide fixed voice services to a number of commercial and residential complexes, a move seen as helping Mobily diversify its revenue streams.
Mobily shares last traded 1.9% higher at SAR67.5 in broadly positive overall market.
-By Shereen El Gazzar, Dow Jones Newswires; +971 444 61684; Shereen.elgazzar@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
17-04-12 1222GMT
