Zain Saudi sees reduction of interconnection fees as a ‘positive’ move

Mobile Telecommunication Co. Saudi Arabia (Zain), the country’s third-largest mobile company by number of subscribers, said a recent decision by the kingdom's telecom regulator to reduce mobile and fixed lines interconnection fees will reflect positively on the company’s financial results and will help increase its subscriber base.

The move will also help foster fair competition among telecom providers because fees are simply too high, said Hassan Kabbani, Zain’s chief executive. He suggested that prices be reduced to less than SAR 0.8 so that companies are able to offer competitive rates to consumers.

Saudi Communication and Information Technology Commission reduced on Monday mobile and fixed lines interconnection fees provided by the incumbent operator to other service providers to SAR 0.15 from SAR 0.25. Fixed lines fees were cut to SAR 0.07 from SAR 0.10, according to data compiled by Argaam.

Kabbani added that Zain's data network subscribers increased last year after the company spent money toupgrade its network as part of its plans to turn around losses.