Saudi Arabia’s telecommunication regulator has awarded mobile virtual network operator (MVNO) license to two new companies - Virgin Mobile Saudi Arabia and Jawraa Lebara, said a report.

 

Virgin Mobile Saudi Arabia has teamed up with the Saudi Telcom Co (STC), while London-based Jawaraa Lebara will offer the service together with its operator Mobily, said the Saudi Gazette report.

 

The license has been granted for a period of 10 year, with a condition that the company shall start offering its commercial services within one year, the Communication and Information Technology Commission (CITC) governor Abdullah Al-Darrab, was quoted as saying.

 

“By giving the license, CITC aims to expand the options in front of the consumers as well as to improve the services, create more innovations, and offer diverse package of services. The regulator will announce the winner of the third MVNO license, which will tie up with Zain Saudi, the kingdom’s third mobile operator, after completing the licensing procedures,” he said. 

 

With licensing of the two new firms, the number of mobile operators in the kingdom rose to five, said the report.

 

The virtual mobile operators do not own the networks they use but instead lease capacity from conventional operators, usually paying them a percentage of revenues as well as fees, it said.

 

Virgin and Lebara are expected to launch services by the end of June, the report added. - TradeArabia News Service