Saudi Arabian mobile operator Etihad Etisalat Company (Mobily) has selected Motorola, Inc. (NYSE:MOT) among other vendors to expand its GSM network within the Northwest and Southwest regions of the Kingdom. Under the agreement, Motorola will deploy its latest Motorola Reach GSM solution and provide various managed services for the Mobily network.
Additional capacity and network coverage of the newly expanded network will enable Mobily to launch new services rapidly and smoothly while maintaining high quality of service, thereby enhancing customer loyalty and reducing the potential for customer churn.
In managing the Mobily network, Motorola will be responsible for project management services as well as the operation and maintenance of the network according to an agreed set of key performance indicators, and will also include the ongoing network planning and optimization of the network to meet the operator’s increasing subscriber demand for high quality of service. The managed services contract will enable Mobily to help reduce network operational expenditures and total cost of ownership.
“Since we launched the service a year ago, we have had an ambitious expansion strategy. This deal not only increases the capacity and coverage of our network so that we can serve more customers, but also enhances our responsiveness to customer demands as we continue to deliver new applications and services,” said Mobily CEO Khalid Al-Kaf. “We’re excited to expand our relationship with Motorola among other major vendors to realize our business goals.”
“This Motorola Reach GSM network expansion will enable Mobily to significantly extend its network coverage and enhance its services offering, allowing the company to reduce its national roaming costs,” said Ali Amer, senior director of sales for Motorola Networks & Enterprise in the Middle East, North Africa and Pakistan. “Leading operators in the Middle East increasingly look to outsource all or parts of their network to realize strong business growth. The managed services component will allow Mobily to leverage Motorola's expertise and expansive services portfolio, enabling Mobily to maximize its infrastructure investment and focus on its core business objectives.” A portion of the revenue on this contract was recognized by Motorola in the second quarter of 2006.
Motorola began working with Mobily in 2004, supporting its business goal to reach over 3.5 million nationwide subscribers by the end of its first year of service in May 2006.
About Etihad Etisalat Company (Mobily)
Mobily is the official brand name of Etihad Etisalat, the new mobile service provider in the Kingdom of Saudi Arabia. Established in accordance with a 2004 royal decree, the ownership of the company is two-fold: A Saudi ownership, comprising public investors holding 20% of the company's shareholding, while private investors own a 45% stake. The balance of 35% is owned by the Etisalat of UAE. Mobily has more than 4.5 million subscribers in its first operational year, and has been able to cover all the cities and major towns, as well as the highways in the Kingdom, as a remarkable achievement. Mobily's points of sales are located in more than 2200 outlets throughout the Kingdom. The company aims at expanding rapidly through its major strategic back bone network project which will finish its first phase by the end of 2006.
About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit www.motorola.com
About Motorola Services
Motorola Services, based on innovative technologies, delivers optimal solutions and managed services for service providers, governments and businesses. Motorola offers a comprehensive portfolio of cost-effective, high performance services and applications that are robust and operational in critical multi-vendor, multi-technology environments. We leverage deep expertise in mobility, security and systems integration to deliver seamless communications. Motorola Services collaborates with customers to understand their needs and help them achieve their organizational objectives.
