Font Size

- Aa +

Tue 17 Apr 2012 08:50 PM

Font Size

- Aa +

Saudi's Mobily in talks with foreign MVNOs

CEO says in discussions to sell surplus network capacity to other operators

Saudi's Mobily in talks with foreign MVNOs
(Photo for illustrative purposes only)

Saudi Arabia telecom company Mobily is in talks to sell surplus network capacity to a number of foreign operators, the firm's chief executive said on Tuesday.

The negotiations come after the kingdom's telecoms regulator said it would issue three mobile virtual network operator (MVNO) licences in 2012.

MVNOs lease excess capacity from conventional operators, which earn wholesale revenue and also include MVNO subscribers as their own, potentially boosting market share.

"We are talking to a number of MVNO operators worldwide," Mobily CEO Khalid al-Kaf told reporters on the sidelines of a conference in Dubai.

"If it will add value because it can address a segment much better than us, we will be glad to host an MVNO."

Al-Kaf said Mobily, an affiliate of UAE former monopoly Etisalat, was likely to decide on whether it will host an MVNO by the end of the third quarter.

In the Gulf, only Oman has issued MVNO licences, where former monopoly Omantel has hosted these operators to target low income expat groups and win back market share from rival Nawras, a unit of Qatar Telecom.

For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.