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Telecoms and Technology: Saudi Arabia
(Business Middle East Via Thomson Dialog NewsEdge)The majority state-owned Saudi Telecom has awarded three major contracts as part of its efforts to provide a broadband network to serve the country. The first of these contracts went to Alcatel of France, which will provide its Intelligent Services Access Manager package, enhancingdigital line access. The total value of the Alcatel contract was put at SR88m (US$23.5m), with work due to be completed within a year.
Other contracts went to two US-based firms, Cisco Systems and Lucent Technologies. Cisco is to provide its Multi-Protocol Label Switching system (IP/MPLS) over 23 different sites. That work is to be completed by the end of March 2006. Finally, Lucent is to provide its Any Media Access System, together with WiMAX broadband connection technology.
The aim of these contracts is to create 250,000 new DSL lines (digital subscriber lines or broadband) to serve local telecoms consumers. The expansion programme is due for completion in 2006, and will mean that broadband services will be available in about three-quarters of the country.
Use of the Internet in Saudi Arabia remains relatively limited, with the International Telecommunications Union reporting that in 2004 under 7% of the population used the worldwide web. This was the lowest rate of internet usage for the whole of the Gulf Co-operation Council. Broadband use is particularly limitedaccording to the UK-based research company Point Topic, Saudi Telecom had only 12,000 broadband subscribers in mid-2004. The investment in DSL lines will provide substantially more access in the kingdom, and will thus help to address what the local Arab News describes as a nasty bottleneck in the supply of broadband services.
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