Saudi Telecom confident of winning Syrian mobile licence

Saudi Telecom Company expects to win a bid for a mobile operating licence in Syria, despite a delay in the auction process because of anti-government protests there.

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Analysts say the Syrian mobile market has strong growth potential, but an auction of its third mobile licence has been held up by political unrest.

Saud al Daweesh, the chief executive of Saudi Telecom , also known as STC, said the company was still pursuing the licence and was confident of success.

"We will win," Mr al Daweesh said. "Of course we are interested, we are very much interested."

STC had not received a reply from Syrian authorities regarding a decision on the licence.

"We are waiting for their answers," he said.

Syria was a good strategic fit with other markets in which STC operated, such as Turkey and the Gulf, Mr al Daweesh said. "Syria was identified by our board as strategic for STC to expand [in] the Middle East".

STC and its rival Qatar Telecom are the only major companies left in the running for the licence, after others including Etisalat, France Telecom and Turkcell pulled out.

Some operators cited concerns over a 25 per cent revenue share demanded by Syria, although STC feels there is potential there, given the relatively low use of mobile phones in the country at present.

Meanwhile, STC plans to invest more than $1 billion (Dh3.67bn) this year in infrastructure across its global operations, with a focus on its Indonesia business.

"STC plans to invest around $450 million on the Indonesian operations," Ghassan Hasbani, STC's chief executive of international operations, told Zawya Dow Jones. "We're focusing on infrastructure. This will be done through debt and shareholder loans."

STC faces new competition in its domestic fixed-line business from Saudi Integrated Telecom, which has recently undertaken an initial public offering.

Mr al Daweesh said the rivalry was healthy.

"I think it will be very good for the market," he said. "This licence was given three years ago, it's nothing new. Everyone has had it in [their] strategy. "It will enhance the market, it will expand and grow the demand."

The STC executives were speaking on the sidelines of the TMT Finance and Investment Middle East conference in Dubai, where industry consolidation and mergers and acquisitions were on the agenda.

Mr al Daweesh said STC was open to acquisitions in the Middle East and North Africa and beyond. "We are scanning any opportunity that fits within the portfolio.

We've always announced our interest in the Middle East, South East Asia and North Africa."

bflanagan@thenational.ae