Axiom Telecom to distribute LG mobile handsets in Saudi Arabia

Axiom, which is part of Dubai-based Al Bannai Enterprises, has more than 50 retail outlets in Saudi Arabia, and there are ambitious plans to expand the network this year, officials say.

C.K Cho, General Manager of LG Electronics Saudi Arabia, signed the one-year, renewable distribution deal at a recent meeting in Dubai with Axiom Vice President Fahad Al Bannai, Simon Kim, Senior Manager of Telecommunication at LGe Saudi Arabia also attended the signing ceremony.

Cho said: "The lifting of the ban in Saudi Arabia on camera phones has opened up a new avenue for growth in the Kingdom, and relationships with quality distributors like Axiom Telecom will help drive the LG brand forward. We expect GSM handset sales in Saudi Arabia to double this year."

Fahad Al Bannai of Axiom Telecom said: "LG has excellent mobile handset products, which appeal to the specific tastes of the Saudi customer, like the F7100 Qiblah with prayer alarm and Mecca compass, and the new C3400 music phone with MP3 player. LG Electronics fills an important gap in the market and is a welcome addition to the world-class Axiom product portfolio."

The LG/Axiom tie up is expected to generate significant over-the-counter sales, but as much as 70 per cent of the business will come through Axiom's wholesale channel. Axiom has a strong retail presence in the UAE and Saudi Arabia, but also supplies the international market.

LG is the world's fifth largest mobile handset manufacturer, with a seven per cent global market share and total unit sales in 2004 of 44 million. LG's mobile business in Saudi Arabia was valued at around US$10 million last year.

Axiom Telecom is an authorised distributor of the leading international mobile handset brands, and operates its own maintenance and service facilities. The company also specialises in accessories, wireless communications, and multimedia and mobile content.

Axiom plans to introduce its popular AxiomPlus portfolio in Saudi Arabia this year, along with its 'Meeqat' prayer alarm software, which can be downloaded via SMS.

AxiomPlus offers mobile users a wide range of services like wallpapers, picture messages, animated MMS, operator logos, Java games, and SMS alert services. Other Axiom services include warranty protection, theft insurance, and price protection guarantees.