VMMEA launches commercially in Saudi over STC network

Virgin Mobile Middle East & Africa (VMMEA) today launched the first MVNO business in Saudi Arabia, making it the fifth country in which VMMEA has opened, after Oman, Jordan, South Africa and Malaysia.

The VMMEA operation in Saudi Arabia is launching the group’s flagship Virgin Mobile brand, as well as the internationally focused Friendi Mobile offering.

The Virgin Mobile brand is bringing the unique style and customer experience that has made Virgin Mobile the most successful MVNO brand globally with some 20 million customers, to young-at-heart customers in Saudi Arabia.

The Saudi MVNO process has turned into a race of elimination as the three original selected bidders for the MVNO licences (VMMEA, Jawraa Lebara, and Axiom Telecom) were first reduced to two due to Axiom’s selection being withdrawn, and now VMMEA has outpaced Jawraa Lebara to launch just before Eid, which is an important sales period for telecom, and will make it difficult for Jawraa Lebara to launch until after the holidays

Friendi Mobile is targeted at multi-cultural customers in Saudi Arabia who are looking for a better mobile service to stay in touch with friends and loved ones locally and globally.

To secure the best possible basis for success in the Saudi Arabian market, the local operating company is owned by a consortium consisting of VMMEA and strong local partners including prominent Saudi Arabian and Middle Eastern investors.

Saudi Arabia typically serves as a regional catalyst for new technological and regulatory development. The introduction of MVNOs in Saudi Arabia is likely to spur mobile operators and telecom regulators across the region to accelerate their plans to introduce the MVNO model in their own markets.

Earlier this year, Hassan Kabbani, CEO of Zain Saudi Arabia, and the operator that was set to host Axiom Telecom’s MVNO said the decision to introduce MVNOs into the market is rather questionable given the timing. “The third operator, Zain, has yet to reach the level of maturity appropriate to introduce MVNOs. Also, these MVNOs paid very low prices to obtain their licences with little obligation on their side, which can lead to problems in the market with few tangible benefits,” he commented.