Saudi Arabia: Authorities mysteriously re-tender wireless operator’s license

Wireless operator Zain Saudi was dealt a blow by Saudi Arabia’s Communications and Information Technology Commission, which ruled that the operator’s network will be retendered a year after Axiom Telecom won the bidding for a piggyback license.

According to reports, the regulator, which did not explain why it was putting the license out for tender a second time, announced the plans Tuesday. Axiom told reporters that it was unable to submit the proper documentation to regulators following its win of the piggyback license, which allows rivals to lease capacity for a fee.

Axiom said it plans to submit a new tender for the license in the next two days.

According to reports, Zain Saudi will not likely welcome the regulator’s decision as it will not be able to collect those leasing fees, while its rivals – Saudi Telecom and Etihad Etisalat – soon launch their own mobile virtual network operators through which they can receive fees and a percentage of revenue.

Full Content: Gulf Business

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