Mobily pre-paid sim cards' sale suspended
Riyadh, November 25, 2012
Saudi Arabia's No.2 telecom operator Etihad Etisalat Company (Mobily) has been suspended from selling pre-paid sim cards by the industry regulator, the firm said in a statement to the Kingdom's bourse on Sunday.
Mobily's sales of pre-paid, or pay-as-you-go, sim cards will remain halted until the company "fully meets the prepaid service provisioning requirements," the telco said in the statement.
These requirements include a September order from regulator, Communication and Information Technology Commission (CITC).
This states all pre-paid sim users must enter a personal identification number when recharging their accounts and that this number must be the same as the one registered with their mobile operator when the sim card was bought, according to a statement on the CITC website.
This measure is designed to ensure customer account details are kept up to date, the CITC said.
Mobily said the financial impact of the CITC's decision would be "insignificant", claiming data, corporate and postpaid revenues would meet its main growth drivers.
The firm, which competes with Saudi Telecom Company (STC) and Zain Saudi, reported a 23 per cent rise in third-quarter profit in October, beating forecasts.
Prepaid mobile subscriptions are typically more popular among middle and lower income groups, with telecom operators pushing customers to shift to monthly contracts that include a data allowance.
Customers on monthly, or postpaid, contracts are also less likely to switch provider, but the bulk of customers remain on pre-paid accounts.
Mobily shares were trading down 1.4 per cent at 0820 GMT on the Saudi bourse.-Reuters
More IT & Telecommunications Stories
- Windows XP users warned on usage risks
- Tecom units welcome 181 new companies
- Ooredoo chairman joins WB gender equality council
- Mobily, Jasper start wireless M2M service
- Telecom Egypt expects mobile licence in Mar or Apr
- Sandvine wins big Etisalat follow-on order
- Aveva software for engineering plant design
- Nawras to upgrade VSat services across Oman
- Mobily, Huawei sign smart network contract
- Etisalat, Tata launch video connect service
- Talia seals new partnership with Thuraya
- 4-pillar approach for telecom operators to boost growth
- Dubai mobile emissions below global standards
- Nawras signs capacity contract with SES
- Etisalat showcases satellite solutions at Cabsat
- Batelco launches 4G LTE roaming
- Gulf Air clinches best innovation award
- Viva inks Pepsi partnership deal
- Du offers free smarphones on tablet purchase
- Batelco launches double credit promotion
- Cyber threats focus of Bahrain security talks
- Bahrain tech expo to honour innovators
- Scope ME named distributor for InfoWatch
- Nawras quadruples 3G+ mobile services
- Menatelecom expands bill paying network
- Du joins new global cable consortium
- Kuwait moves to create telecoms watchdog
- Batelco backs Royal Fund for Martyrs
- Egypt's Global Telecom posts $749m Q4 loss
- Red Hat launches open source BPM suite