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Saudi likely to reduce connection fees next year

26 Jan 2012

(MENAFN) Saudi’s Mobily CEO, Khaled Al-Kaf, said that in a move that would boost competition in the country, in 2013, Saudi might reduce connection fees for telecom operators, reported Arab News.

Al-Kaf added that termination fees in the country have been the same for over 4 years at USD0.07 for mobile-to-mobile and fixed line-to-mobile calls and USD0.02 for mobile-to-fixed line calls.

He also said that termination rates are fees that one telecom operator charges another for terminating calls on its network, adding that the fees tend to favor more established operators, since they terminate a greater portion of calls.

It is worth noting that operators in the Kingdom pay royalties of 15 percent on mobile revenue, 10 percent on fixed line and 7 percent on data.

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