Mobily, Zain KSA give consent for arbitration, says communications minister

Etihad Etisalat (Mobily) and Mobile Telecommunications Company Saudi Arabia (Zain KSA) have given their consent for arbitration, said Fahaad Al-Hamad, Saudi minister of communications and information technology, without elaborating further.

Mobily, Saudi Arabia’s second-biggest telecom operator, and Zain KSA held their first arbitration session on Dec. 20.

During the session, ​in which Mobily presented its statement of claim, the operators said they agreed on the arbitration proceedings adopted by the panel.

Zain KSA has asked for some time to reply to the allegations​. The next arbitration session is set for Saturday, Feb. 7.

The dispute between the operators dates back to 2008, when Mobily signed an agreement with Zain Saudi, an affiliate of Kuwait's Zain, to provide site sharing and domestic roaming services, according to data available on Argaam.

Consequently, Mobily said Zain Saudi owed 2.2 billion riyals ($586.21 million) as of Nov. 30, 2013 for the deal. Zain has previously denied the claims.