Etisalat supports Mobily’s position in the face of prepaid sales ban

Etisalat is backing its Saudi Arabian affiliate Mobily after authorities banned it from selling prepaid SIM cards, reports Reuters.

The ban was imposed by the Saudi regulator to force Mobily to meet "prepaid service provisioning requirements" outlined in an order regarding SIM registration rules made in September. If the ban on prepaid SIMs isn’t resolved quickly it could hurt revenue, according to analysts.

Etisalat CEO Ahmad Julfar told Reuters that the company is committed to its relationship with Mobily. Julfar also reiterated his company’s desire to increase its stake in Mobily if there is an opportunity to do so. Etisalat currently holds a 28 per cent stake in the Saudi number-two operator.