Mobily: Saudi Arabia tend to reduce the termination fee calls

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Sign Khalid Al Kaf, CEO of Etihad Etisalat Company (Mobily) Saudi Arabia to cut termination fee calls for telecom companies in 2013 in a move that would stimulate competition in the UK market. Termination fee, and calls are the fees imposed by the telecommunications companies to other companies in return for ending calls on their networks. The fees are usually in favor of the older companies as they end a greater number of calls.

CAF said: I think you will see a decrease in call termination fee unless regulator expects to market the largest reduction in the termination fee calls. He said in answer to a question that he would prefer to reduce call termination fee: I want to stay neutral in this regard.

And settled termination fee calls Saudi Arabia unchanged for more than four years at 0.25 riyals ($ 0.07) for calls from mobile to mobile and fixed line to mobile and at 0.1 riyals for calls from mobile to fixed line which determines already a minimum tariff of calls . The fees apply only to calls from one network to another while consumers pay the same price regardless of the profit margin, which makes telecommunications companies higher than calls made within their networks.

Said Mark Hamod, a telecom analyst at Deutsche Bank: decline termination fee calls with increasing competition. The companies usually pass a part of any reduction in fees to consumers. As a former monopoly market may be the most affected by the STC to reduce fees, but it will help her campaign for the sale of strong fixed-line packages. Saudi Telecom competes with Mobily and Zain Saudi Arabia, but to dominate the fixed-line calls.

Asim said Bakhtiar, head of research at Riyad Capital: reduce call termination fee will pour probably in the interest of Mobily and Zain Saudi Arabia, unlike STC but the latter will benefit in terms of revenue with the decline in fees between networks. He added, using Zain Saudi Arabia Mobily network in most areas, where you do not have coverage of the Kingdom as a whole may benefit, so after a bit of cut termination fee calls. But it will be useful in the short term under the Zain attempts to expand its network.