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Thursday, 29 November 2007 |
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Saudi Telecom goes large on Kuwait mobile purchase.
Saudi Telecom has paid more than US$900mn for a 26% stake in Kuwait’s third mobile licence. It expects to take a 30% market share within 10 years. Saudi Telecom is said to have bid more than 25% on top of the next nearest bids, believed to have come from the likes of Batelco in Bahrain and Zain of the UAE.
The Saudis and most of their neighbours (aside from the ones we are in the process of destroying) are awash with cash just now. The Kuwaiti deal is an easy one: others, further afield, might bring Saudi policy under increased scrutiny.
It has been suggested that Saudi Telecom will attempt to make inroads in the Kuwaiti market by promoting multimedia access to various websites and social networking forums. I doubt that. Lots of money… not much sense.
Jim Chalmers
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