Saudi Arabia's number two telecom operator Etihad Etisalat Co (Mobily) has been suspended from selling pre-paid sim cards by the industry regulator, the firm said in a statement to the kingdom's bourse on Sunday.
Mobily's sales of pre-paid, or pay-as-you-go, sim cards will remain halted until the company "fully meets the prepaid service provisioning requirements," the telco said in the statement.
These requirements include a September order from regulator, Communication and Information Technology Commission (CITC). This states all pre-paid sim users must enter a personal identification number when recharging their accounts and that this number must be the same as the one registered with their mobile operator when the sim card was bought, according to a statement on the CITC website.
This measure is designed to ensure customer account details are kept up to date, the CITC said.
Mobily said the financial impact of the CITC's decision would be "insignificant", claiming data, corporate and postpaid revenues would meet its main growth drivers.
The firm, which competes with Saudi Telecom Co (STC) and Zain Saudi, reported a 23 percent rise in third-quarter profit in October, beating forecasts.
Prepaid mobile subscriptions are typically more popular among middle and lower income groups, with telecom operators pushing customers to shift to monthly contracts that include a data allowance.
Customers on monthly, or postpaid, contracts are also less likely to switch provider, but the bulk of customers remain on pre-paid accounts.
Mobily shares were trading down 1.4 percent at 0820 GMT on the Saudi bourse.
Apple's iPad Pro to launch in UAE on Wednesday
Cupertino's large-screen, productivity-focused tablet to...
BlackBerry's new Android phone to go on sale in the US from Friday
Priv will be sold first in the US through AT&T, but no word...
Revealed: Inside the new Apple store in Dubai
Mall of the Emirates outlet, which is reportedly the company...
$1m Batman Tumbler Batmobile for sale in Dubai
Owner has plans to bring new Batman vs Superman batmobile...
Apple Watch officially hits UAE on Oct 22
Prices start from $380, with the range set to include a...
Etisalat offers iPhone 6 pre-orders from Oct 2
Official sales in the UAE will start on Oct 10
Apple to officially start selling iPhone 6s, iPhone 6s Plus in the UAE from Oct 10
Smartphone manufacturer announces record sales of the newly...