Market Structure of Saudi Telecommunication Industry

Subject: Industry
Pages: 2
Words: 296
Reading time:
< 1 min

This market has been largely run by the private sector since it was privatized in 1998. The telecommunication industry in Saudi Arabia is dominated by three major companies, which are Saudi Telecom Company (STC), Mobily, and Zain. The stiff competition in the industry has led to every company looking for different strategies to help it increase its market share and overcome competition. For instance, STC has embarked on providing prepaid calls, roaming, and monthly subscription plans as a way of expanding its market share.

There has been an increase in the need for internet services in the country. This has led to telecom companies providing broadband internet plans. STC offers 3.5G broadband services to its customers. The company also provides a very small aperture terminal (VSAT), a satellite-based communication service to its customers. On its part, Mobily Company has launched a push-to-talk (PTT) communication service. This has led to the introduction of a new voice service experience in the market. This technology has overcome the geographical barrier that had for a long-time hampered communication through walkie-talkies.

Through PTT, one is capable of communicating with up to ten people at a go. Conversations are encrypted over 3G networks making it hard for other people to intercept them or cross-talk when communicating with many people. Saudi Arabia’s telecommunication market is comprised of consumers who go for products or services at a low cost.

This has been the main reason why Zain Company has decided to use price promotion as the method of expanding its market share in the country. Companies are currently focusing on data transfer and other value-added services as a way of increasing their revenue as they have not managed to increase subscriptions.