The saying goes, “if it looks like a duck, swims like a duck and quacks like a duck, then it probably is a duck”. It seems to be apt in describing the state of price competition in Saudi Arabia’s mobile market. Despite operators in the kingdom suggesting the market is not in the throws of a price war, recent promotions point to an extremely price-competitive environment, which will impact ARPUs negatively. Michelle Mills reports

Zain Saudi Arabia launched commercial services as the  third mobile operator in Saudi Arabia on August 26, 2008 and in less than two months garnered 966,000 subscribers. Speaking at the GSM > 3G conference in Dubai in December, CEO Marwan Alahmadi said the operator’s unique ‘You pay we pay’ offer had been instrumental in attracting customers in a market with a SIM card penetration rate in excess of 100 per cent. The crux of the campaign was that whatever a customer spends in one month, the following month he receives the same amount back in free credit, with the lifetime offer available indefinitely for the first 500,000 customers.

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The viability of mobile resellers and virtual network operators in the Middle East continues to be questioned by analysts, though answers are imminent given the impending launch of commercial MVNOs in Oman during the course of Q109. Majan Telecom and Friendi Mobile are the two companies entrusted with proving the business model for MVNOs in the region, and while he remains guarded about the finer points of his company’s market entry strategy, Majan Telecom’s CEO, Niklas Nielsen outlines how his organisation is set to do something never before seen in this part of the world

Niklas Nielsen is confident the MVNO business model will be vindicated in Oman, though he questions the market’s ability to support more than two resellers

Both Class II reseller licensees in Oman know it – being first to market will drastically improve either company’s prospects for success. As a consequence of this, both Majan Telecom and Friendi Mobile are working frantically behind the scenes to ensure their brand name, offering, and association with the latest business proposition to launch in the region since 3G services, hits the market first.

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The timing of the depressed global economic outlook could not have come at a worse time for Alcatel-Lucent. The situation only confounds further the technology company’s efforts to turn the corner of a post-merger era that has resulted in an underperforming share price and integration challenges. With a new CEO, a new strategy, and a strong focus on technology leadership, Alcatel-Lucent is looking to emerge from the economic downturn a leaner, more responsive and cohesive organisation than before

Alcatel-Lucent’s new CEO, Ben Verwaayen has a cool, approachable demeanour that his predecessor at the French/American technology company never had. Even Alcatel Lucent employees openly talk about the impression of hardness and rigidity they associated with former CEO Patricia Russo, who tried and failed to have the many different cultures, nationalities and operations that comprise the merged Alcatel-Lucent pull in the same direction.

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It has been suggested that rising political tensions between India and Pakistan over the Mumbai attacks at the end of November may spill over into the economic arena, and that companies such as Telenor and Etisalat that have investments in both countries may be barred from operating in both markets.

In 2006 Etisalat concluded the acquisition of a 26 per cent stake in Pakistan Telecommunication Company Limited (PTCL). The UAE operator also has a management agreement in place in Pakistan and at one point was even rumoured to be looking to double its equity stake in the Pakistan operator.

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An informed source in Nigeria has told Comm. that since Etisalat’s launch in the country on October 24, 2008, the UAE-based operator has become the most visible player across the country in terms of branding, visibility and awareness.

Despite Etisalat Nigeria entering as the fifth GSM operator in Africa’s most populous country, the source said that a massive impact had been felt through a strong marketing campaign prior to the launch of commercial services.

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