Reduced call fees hurt Saudi telcos’ earnings: former Atheeb CEO

A decision from Saudi Arabia’s Communications and IT Commission (CITC) to slash call connection fees in the kingdom had a negative impact on telecom operators’ operating revenues, Ahmed Abbas Sindi, Etihad Atheeb Telecommunications Co. (GO) told the Saudi-based Al Watan newspaper.

Meanwhile, the use of Internet calling applications also weighed on results, Sindi said. The decline has led telecom operators to cut operation costs, while they also struggle to expand their subscriber base due to market saturation, he added.

Last February, the kingdom’s telecom regulator announced that wholesale mobile termination rates (MTRs) would be reduced to SAR 0.15 (USD 0.04), marking a 40 percent cut from the SAR 0.25 previously charged for terminating calls on mobile networks. In addition, the watchdog announced that fixed termination rates will also be reduced, from SAR 0.10 to SAR 0.07.

The new call charges came into effect on May 1.