Reuters reports that state security requirements and a lack of co-operation from Saudi Arabia’s existing telecom operators have delayed the launch of two new mobile companies until later this year, citing their chief executives.
“VMMEA in March said it hoped to launch services in the first half of 2014, while Mobily initially said its Jawraa’s launch target was the end of March, yet both have yet to do so,” according to the report.
“MVNOs usually pay their host operator a percentage of their revenues plus fees, while also allowing the host to target segments outside their core market, In STC and Mobily’s case, these would probably be Saudi’s low income foreign workers….Saudi has 1.8 mobile subscriptions per person, which means the new firms must likely woo customers from existing operators and that threat could explain their apparent reluctance to cooperate.”
