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Saudi telecommunications to flourish amid hajj pilgrimage [ICN.com Financial Markets]
[October 01, 2014]

Saudi telecommunications to flourish amid hajj pilgrimage [ICN.com Financial Markets]


(ICN.com Financial Markets Via Acquire Media NewsEdge) The three big telecommunication companies in Saudi Arabia (Saudi Telecom Company, Mobily and Zain) are set to compete fiercely in the coming few weeks as the pilgrim season starts.  A simple calculation, the number of pilgrims is predicted to reach 1.7 million with an average consumption of $3,500 per person, which means the three companies will do their best to sell new pre-paid sim cards during this period. This coincides with the ongoing work by telecommunications companies to improve internet services at sacred places. The companies are also estimated to provide customers with new offers during the pilgrim period to gain the largest market share. Increasing demand on internet services The number of internet in the Saudi Kingdom users have soared to 18.3 million by the end of the first half of the current year, with a widespread rate of 59 percent, where projections refer that the number could increase further due the rise in sales of smartphones that mainly relies on applications and games that require internet connection. Strong preparation for the pilgrim season Saudi Telecom Company has signed a national sponsorship campaign to educate pilgrims during the season. At the same time, the company is exerting effort to ameliorate its services at sacred places. As for Mibily, the CEO of the company announced that Mobily has raise its network capacity to provide a distinguished service during the pilgrim, given the large number of pilgrims who will put extra pressure on the company's networks, by enabling 5.5 million phone call at the same time. The third rival, Zain, mentioned it would cover all the sacred places with its fourth generation (4G) service, after it has finished all the required technical work needed for accomplishing this task. It is reasonable to claim that the telecommunication sector is one of the promising areas in Saudi Arabia amid the rise in tourism and increase in the number of population. During the coming period, the three companies will work on improving their services by supporting 4G network services and using fiber optics, which will probably yield in higher revenues for the sector. Upside direction remains favorable  From a technical perspective, the telecommunication sector is moving in an upside trend, reaching its highest level 3,220, yet it retreated from these levels after it faced resistance before it rebounded once again to 3,220. Thereafter, the index has started a downside direction but probably the correction has been over after the stabilization above 3,000, where it is currently trading around 3,115. The telecommunication index is predicted to resume its rise targeting 3,115, which represents the neckline of a classical pattern (Head and Shoulders). Over the medium term, the index is estimated to rise towards 3,600 if it managed to record consecutive closings above 3,200. The Relative Strength Index (RSI) has showed a positive reversal sign, but for confirmation the breach of the 50 centre line is needed. As for the moving average trend indicator, the index is still trading below it, thereby giving support to the upside direction.



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