Saudi Communications 2006

February 12 - February 16   2006

The 11th International Telecommunications Exhibition

Privatization and expansion characterize the Middle East’s largest telecommunications market

In the process of selling part of the state-owned Saudi Telecommunications Company (STC), a further privatization and liberalization of the Saudi market is expected in the coming years. In a more open market, demand for all telecom services will sharply increase. Saudi annual GSM revenues will increase from $3.4 billion in 2002 to $7.9 billion in 2007, while Internet use will triple by 2005, which will be accompanied by a rise in demand for all related communications hardware, software and services.

Saudi Communications 2006 is the ideal platform to present the latest technologies in a modern and rapidly expanding market

The UFI certified Saudi Communications fair is held every two years in Riyadh, the governmental and corporate capital of the Saudi Kingdom. Traditionally, the world’s leading telecommunications firms take part in the show and send participants to the many associated conferences. Having established a sound reputation over the past two decades, the fair has become a gathering place for both decision makers and captains of industry. Saudi Communications 2004 is an ideal platform to expand existing business and develop new opportunities in the largest market of the Middle East.

Further privatization and liberalization offer widespread opportunities

Following the oversubscribed $4 billion sale of 30% of the STC monopoly, the state telecommunications regulatory body aims at a further market liberalization and expects a major expansion in coming years, especially in the mobile phone and data-service segments. Partial liberalization of the mobile telephone market is expected by the end of 2004, while the monopoly on fixed lines should end by 2008. “Liberalization is a necessary policy that will address market needs and will benefit all segments of society,” said state commission president Mohammed Mussa.

Mobile phone use to become the most lucrative market segment

A partly privatized STC and more competition will launch the Saudi GSM market to become the most lucrative segment in the Saudi communications landscape. While main line revenues will stay stable at some $3 billion a year, the Arab Advisors Group projects that mobile phone revenues will increase by an annual 14% to reach a total of $7.9 billion by 2007. Market penetration will reach 77% similar to the Gulf countries. Currently there are 4 million fixed lines and 5 million mobile phone users, up from only 300,000 four years ago.

A strong demand for secure high speed data equipment

STC has invested $1.5 billion in a Fibre Optic Link around the Globe (FLAG), which will stretch from Jeddah through the United Kingdom to the United States. The King Fahd Satellite Communications City in Jeddah, the largest such complex in the Middle East, has four ground stations dealing with INTELSAT, ARABSAT and ANMASAT. It provides services to ships, planes, vehicles, telephone and TV companies.

Internet use to increase by 200% in two years

Following the STC slashing telephone charges by 25% last March, Internet use is set to continue to grow at a dramatic pace. Internet was introduced in the Saudi Kingdom in 1998. By January 2003 there were 22 ISPs with a total of 600,000 subscribors and 1.5 million users, a number expected to grow to 4,5 million by 2005. The Saudi market remains the largest in the Arab world, accounting for 40% of all regional IT spending worth some $4.5 billion. The increase in Saudi Internet services creates an exceptional demand for all kinds of hardware, software and associated services.

Network opportunities at telecom conferences

Conferences, seminars and workshops will be organized in association with the Saudi government and professional groups. The program will feature new technologies and developments on a global, regional and national level. Exhibitors will have the opportunity to inform the business community about their latest offers.