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Revenues of Saudi telecom companies decline by four per cent in 2014

Data issued by CITC attributes decline to fall in prices of services in general

Total direct revenues of telecom companies operating in Saudi Arabia reached SAR68.18 billion by the end of 2014, down by 4.3 per cent, recent data shows.

Data issued by the Saudi Communications and Information Technology Commission (CITC) attributes this decline to the fall in the prices of services in general, in addition to the efforts made by the commission to regulate the prices of services in non-competitive markets.

CITC reveals a decrease in the number of subscriptions in fixed telecom services, as a result of the current competition between them and the services of mobile operators and their appropriate prices to subscribers, reports UAE-based Aliqtisadi.

Another reason for the decline is the cancellation of fixed lines belonging to expatriates who left the kingdom, adds CITC, pointing out that mobile services’ revenues accounted for 77.8 per cent of total revenue, while fixed-line services and data accounted for 22.2 per cent.

CITC says that the liberalisation of the telecoms sector and the opening of its market to competition, have led to the proliferation of services, a multiplicity of choices and an improvement of quality, in addition to a reduction prices at a sustainable pace over the past few years.