Friday, September 30, 2011

We're no longer in the telco business, rather becoming multimedia company; Saudi Telecom CEO


Understanding customer behaviour is key for telecoms operators to maintain revenue in the face of competition from over-the-top content and services providers, Saudi Arabia's STC said on Thursday.
″It is really hurting us as telecoms operators that we are not reaping the benefits from the pipes,″ Saad Al Qahtani, STC group CEO, said during a presentation at Broadband World Forum.
This is no longer a telecoms business; we are becoming multimedia companies, he added.
″Today, broadband subscribers are not just looking for fast Internet,″ Al Qahtani said. Rather, they want applications and services that make their lives easier.
″Work on scope, rather than scale,″ he advised the telecoms operators in the room.
According to Al Qahtani, IPTV and gaming will drive demand for high-speed broadband connections in Saudi Arabia. STC calculates that the most basic service bundle comprising TV and multimedia services will require a 19-Mbps connection; a top-tier bundle will come with a 60-Mbps link.
By 2014 10% of broadband connections in the Middle East and North Africa will come with IPTV, he predicted. ″We have almost 20,000 customers for IPTV,″ he said.
″[Telcos] have to understand their customers, their behaviour, their needs,″ Al Qahtani insisted. ″Telcos will have to develop additional revenue streams,″ beyond access.


(C) Total Telecom

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