Mobily optic fiber network growth

Mobily

With the deployment of an optic fiber network as well as the growth of mobile technology, Mobily is expecting strong growth, not just for the company's profit margins, but for the Kingdom's businesses.

Speaking to ArabianBusiness.com, Khalid Al Kaf, Chief Executive, said the deployment of the fiber optic network would be completed before the end of 2010 and that the network was already deployed in more than 30 cities in the Kingdom.

The fiber optic network will enable Mobily to provide new services such as Internet Protocol TV and business solutions as well as boost its wholesale businesses with other telecom firms.

For Mobily, the network will see strong profit growth, with the company's net profit already rising 44 and 49 percent in 2009 and 2008 respectively and by 40 percent over the first half of 2010.

Al Kaf added that, "Once completed, the fiber network coupled with our integrated wireless offer will enable us to maintain over 2011-2012 the profit growth of recent years".

Business network

The roll out of the fiber optic network has said to cost $267 million and is a collaboration between Integrated Telecom Co and Mobily (also known as Etihad Etisalat). Four years in the making, the network is expected to dramatically increase the online potential for Saudi and UAE businesses, such as the number of clients.

Broadband usage is increasing in the region with Mobily's revenues from broadband usage accounting for 18 percent of total revenues by the end of 2009.

Mobile internet is also on the increase with a new mobile network called Long Term Evolution (LTE) set to be introduced later in the year.

Mobily started as the Kingdom's second mobile phone operator five years ago and currently competes with state-controlled Saudi Telecom and Zain Saudi Arabia.

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