The Saudi Telecommunications Company (STC) will reduce its international call rates by 63 percent for 223 countries. STC also intends to float up to 30 percent of its shares worth $960 million.
The initial public offering (IPO) is expected to generate between three and four billion dollars and will be available to local investors only. In 2000, the Saudi Supreme Economic Council announced that foreign investors were banned from involvement in the local telecom sector.
The Saudi government began the telecom privatization process by passing control of the national services to the joint stock STC. Gradually taking over from the Ministry of Post, Telephone and Telegraph (PTT), STC carried out major telecommunication projects kingdom-wide, while treading a path that would eventually enable it to operate on a commercially competitive basis. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
