Saudi Arabia Plans to Privatize Telephone System Amid $4 Million Modernization

Strategic Insights -

Saudi Arabia's Transportation Minister announced on Sunday that the kingdom plans to privatize its telephone system, following a $4 million modernization project signed with American Telephone & Telegraph Co. The modernization program, known as telephone expansion project-6, aims to upgrade the state-run telephone company's aging analog network to a fully digital system, adding 1.5 million new digital lines. This expansion will increase the Kingdom's telephone network to 3 million lines and nearly double the mobile telephone network to 220,000 lines, a tenfold increase from its current capacity.

Key Takeaways:

  • The Saudi government plans to privatize its telephone system after completing a $4 million modernization project with American Telephone & Telegraph Co.
  • The modernization program, telephone expansion project-6, aims to convert the analog network to a fully digital system, adding 1.5 million new digital lines.
  • The expansion will increase the Kingdom's telephone network to 3 million lines and nearly double the mobile telephone network to 220,000 lines.
  • Saud Abdulaziz Algosaibi, vice president for industry and trade of the Algosaibi Group of companies, suggests splitting mobile phones and pager systems from the core telephone service to create added value for the Saudi economy.
  • The establishment of independent companies for the mobile phone sector would contribute indirectly to the government revenue base.
  • The Telecommunications Ministry is accepting applications for permits to operate coin-operated phone systems.
  • Saudi Telephones and Saudi Airlines are also expected to be privatized after improvement and studies are completed.

Statistics:

  • $4 million: The cost of modernization project-6 with American Telephone & Telegraph Co.
  • 1.5 million: The number of new digital lines to be added to the existing network.
  • 3 million: The expected total number of telephone lines in the Kingdom, a doubling of the current capacity.
  • 220,000: The expected number of mobile telephone lines, a tenfold increase from the current capacity.
  • 10 times: The increase in mobile telephone network capacity expected after the modernization project.

Sources:

  • [No explicit source listed in the original text.]