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Sun 13 Jun 2010 12:25 PM

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Saudi's Atheeb Telecom says top exec replaced

Telecom operator says Ahmad Abbas Sindi has resigned amid company's large losses.

Saudi's Atheeb Telecom says top exec replaced
CEO GOES: Atheeb Telecom, which focuses mainly on broadband, started commercial operations in June, 2009. (Getty Images - for illustrative purposes only)

Atheeb Telecom, Saudi Arabia's first private fixed-line phone operator, said on Sunday its top executive has resigned after it accumulated losses close to 40 percent of its capital one year after starting business.

Ahmad Abbas Sindi was replaced by Raed Kayyal, Atheeb said in a statement posted on the bourse's website.

The company, which focuses mainly on broadband, started commercial operations in June, 2009.

It said last month its net losses stood at 379 million riyals between February, 2009 and March, 31, 2010 with sales of only 35.4 million riyals, which is below half the cost of sales themselves.

This has raised fears among investors that Atheeb would soon need to replenish its capital to keep the business running and competing with cash-laden rivals such as state-controlled Saudi Telecom and Mobily.

Bahrain Telecom holds a 15 percent stake in Atheeb Telecom.

Saudi Telecom and Mobily dominate the broadband landscape, which offers the best growth potential in the Arab world's largest economy.

Some analysts say Atheeb has put less focus on fixed-line voice services because it was bound to face a price war by Saudi Telecom.

Atheeb's shares lost 15 percent since the firm started commercial operations. (Reuters)

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GO Subscriber 9 years ago

I had to pay twice to get reconnected after my subcription ended in April 2010. Once on their website, then they could trace the payment and then a second time at their kiosk! I provided the visa card statement as proof of payment to no avail. Despite numerous calls, all I get is a polite apology from the lady at the call center (they're better than the men) and then they sms and email me a "trouble ticket", but never solve the problem! This is going on for almost 2 months now. Hope the new CEO pulls the place right!

ghaffar 9 years ago

I tried the service of Atheeb but due to the low coverage at the place of usage, I have decided to cancel the service within the permitted peroid 3 days. This was in the month of May 2010. Now we are in Sep 2010 and I am still waiting to receive money back. In fact, I have been suffering from the frequent follow ups and the serveral promises by Atheeb themself !!!!!