A price war would be detrimental for the Kingdom's three mobile phone operators since the market penetration rate has crossed 100 percent, a senior Saudi Telecom Company (STC) official warned Sunday. Jameel A. Al-Molhem, STC's vice-president, issued the warning after STC President Saud Bin Majid Al-Daweesh unveiled the company's new corporate identity at a press conference here Sunday. “The new logo reflects STC's growth and spirit in four different values – transparency, progress, straightforwardness and brilliance,” Al-Daweesh said, noting that STC has a promising future because of rising profitability, business expansion, innovative products and a dedicated workforce. Al-Molhem said STC has made tremendous progress from nine million subscribers when Mobily, the second mobile licensed phone operator, entered the market in May 2005, to 18.5 million subscribers today, the biggest market share in the Kingdom. Zain Saudi Arabia, the third operator, entered the Saudi telecom market last month, raising hopes among subscribers that phone rates would come down as competition among the three intensifies. But Al-Molhem does not foresee any price war following Zain's entry “because Saudi Arabia has rational pricing and STC has no intention of entering any price war.” A price war will not serve anyone's interest because the operators would not be able to achieve the targeted revenues required to provide the best possible services, he said, adding that it is up to the regulator, the Communication and Information Technology Commission (CITC), to ensure no price war takes place. “Healthy competition means a choice for the customers to choose from the best quality products,” Al-Molhem said, noting how STC now has three-quarters of the market revenue. Al-Molhem said the mobile phone penetration rate in the country has exceeded 105 percent, with some customers holding more than one subscription – either pre-paid or post paid. To open up a new market segment, STC has launched a Kids Phone scheme, “which will be an entry for penetration among the young population of the country.” For the forthcoming Haj, STC will upgrade capacity and offer totally new services for the best coverage possible across the ritual areas. The launch of the new logo signals the start of a new era for STC, Al-Molhem said. “We are not waiting for things to happen,” he said. “On the contrary, we make our future by creating innovative products at affordable prices.” __
