Etihad Atheeb Telecom

Etihad Atheeb Telecom emerged from Saudi Arabia’s effort to liberalize fixed telecommunications and introduce a second operator alongside the incumbent fixed-line provider. In March 2007, the company was among ten applicants seeking a public fixed-services license. The Saudi regulator approved a smaller group of eligible applicants in April, including Etihad Atheeb Telecom. After the licensing process, the company obtained 3.5 GHz spectrum intended to support service across thirteen regional divisions. The Council of Ministers approved the company’s establishment as a Saudi joint stock company on February 25, 2008. Its authorized capital was one billion Saudi riyals, and the approval required a public offering of at least one-quarter of its shares. The founding shareholder group included Atheeb Trading Company, Batelco, Al-Nahla Trading Company and Traco Trading Ltd. Co., together with Saudi Internet Ltd. Co., Atheeb Ltd. Co. for Computer and Communication, and Atheeb Maintenance and Service. The ownership structure reflected a combination of Saudi commercial interests and telecommunications expertise. Rather than relying on a conventional wireline rollout, the company selected WiMAX 802.16e as the foundation of its initial access network. In March 2008, it announced a contract with Motorola valued in the reference material at US$165 million. The agreement covered the first network phase and included planning, installation, optimization and support. The company also contracted with ZTE and Wipro. A later agreement with ZTE supported construction of a high-speed WiMAX network in five major cities, including locations in the Eastern Province. The company’s public-market transition occurred during a difficult period for global and Saudi capital markets. In January 2009, Etihad Atheeb Telecom announced an IPO representing 30 percent of its shares at 10 Saudi riyals per share. The offering closed on February 2, 2009, and was reported as oversubscribed by more than three times. It was characterized in contemporary reporting as the first Saudi IPO since new offerings had been halted in August 2008 during the global financial crisis. Etihad Atheeb Telecom introduced the GO brand in Riyadh on February 18, 2009. After receiving formal regulatory approval for its license on April 5, GO conducted a two-month early-registration campaign in Riyadh and Jeddah. The campaign preceded commercial service and served as the company’s initial customer-acquisition effort. Commercial WiMAX broadband service was announced in Riyadh on June 6, 2009. Expansion followed quickly: by August, the company reported full WiMAX coverage in Jeddah and Medina; Mecca was added in September. By the end of 2009, the western region was described as fully covered by the network. In January 2010, GO launched services in Dammam and Khobar and then expanded to Hofuf and Qatif, completing reported eastern-region coverage by the end of that month. Overall, the network was described as covering eleven cities. The company broadened its offer on November 15, 2009, with nomadic voice services delivered over WiMAX. This move ended Saudi Telecom’s fixed-line monopoly and positioned GO as a wireless fixed-access challenger capable of delivering both broadband and voice. Its documented portfolio also included fixed-line VoIP and fax services. The available source material ends largely with this early operating phase and a 2010 management change, when Raed Kayyal became acting chief executive in place of Ahmed Abbas Sindi. It does not provide sufficiently current information to confirm the company’s present operational status, ownership, leadership, network technology, financial condition or market position.

1. 2010Expanded coverage in eastern Saudi Arabia

   GO launched in Dammam and Khobar and subsequently added Hofuf and Qatif, completing its reported eastern-region expansion.

   Source
2. 2009Completed initial public offering

   The company completed an IPO for 30 percent of its shares, with the offering reported as heavily oversubscribed.

   Source
3. 2009Launched the GO brand

   The company introduced GO as its commercial identity for consumer and business telecommunications services.

   Source
4. 2009Started commercial WiMAX broadband

   GO launched commercial WiMAX broadband in Riyadh and expanded coverage through western and eastern Saudi Arabia.

   Source
5. 2009Introduced nomadic voice services

   GO began providing nomadic voice over WiMAX, adding voice connectivity to its broadband network.

   Source
6. 2008Established as a Saudi joint stock company

   Government approval formalized the company’s establishment with authorized capital of one billion Saudi riyals and an obligation to offer shares publicly.

   Source
7. 2008Announced Motorola WiMAX deployment contract

   Etihad Atheeb Telecom selected Motorola for the first phase of a WiMAX network and related engineering and support work.

   Source
8. 2007Selected as an eligible fixed-services license applicant

   Etihad Atheeb Telecom was included among the applicants approved to continue in Saudi Arabia’s fixed-services licensing process.

   Source
9. 2007Obtained 3.5 GHz spectrum

   The company acquired spectrum intended to support fixed wireless services across thirteen Saudi regional divisions.

   Source

A Saudi alternative fixed-line and broadband operator focused initially on wireless last-mile connectivity through WiMAX, with additional voice and fax services.

• GO WiMAX broadbandBroadband internet2009

  GO’s initial flagship service was broadband internet delivered through a WiMAX 802.16e fixed-wireless network. The service was designed to provide an alternative to conventional fixed-line access and was launched first in Riyadh before expanding to cities in the western and eastern regions of Saudi Arabia. The documented rollout included Riyadh, Jeddah, Medina, Mecca, Dammam, Khobar, Hofuf and Qatif, with the broader network described as covering eleven cities.

• GO nomadic voiceVoice telecommunications2009

  Introduced in November 2009, GO’s nomadic voice service used the company’s WiMAX infrastructure to provide voice connectivity that was not tied to a single conventional fixed location. The launch expanded the company from broadband into voice and was presented as a significant competitive development in Saudi Arabia’s fixed telecommunications market.

• Fixed-line VoIPVoice telecommunications

  Fixed-line voice over IP was part of GO’s documented service portfolio. It complemented the company’s WiMAX broadband offering by allowing voice services to be delivered through an IP-based network rather than a traditional circuit-switched fixed-line infrastructure.

• Fax servicesBusiness communications

  Fax services were listed among Etihad Atheeb Telecom’s offerings. The available reference material does not provide additional detail about the technical platform, target customers, pricing or later availability of this service.

• 2009GO early registration campaign

  Riyadh · Jeddah

  After receiving formal license approval, GO opened an early-registration campaign in Riyadh and Jeddah for two months before its commercial launch. The campaign was intended to build an initial customer base for the forthcoming WiMAX broadband service.

  Outcome. The campaign preceded the June 2009 commercial launch of GO broadband services.

  Source

• 2009Completed a public offeringOther

  Government approval required the Saudi joint stock company to offer a portion of its shares publicly, while the Saudi IPO market was recovering from a suspension of new offerings during the global financial crisis.

  What changed. The company offered 30 percent of its shares at 10 Saudi riyals per share and closed the offering on February 2, 2009.

  Aftermath. The issue was reported as oversubscribed by more than three times and was described as the first Saudi IPO after the 2008 suspension of new offerings.

  IPO offer value. 300 million Saudi riyals (January-February 2009)

  Source
• 2009Launched GO commercial broadbandProduct launch

  Following licensing, network trials and customer registration, the company sought to establish a new fixed-wireless broadband alternative in Saudi Arabia.

  What changed. GO launched commercial WiMAX broadband in Riyadh in June and expanded coverage to western and eastern cities during 2009 and early 2010.

  Aftermath. The network was reported to cover eleven Saudi cities during the initial rollout.

  Source
• 2009Added nomadic voice over WiMAXProduct launch

  GO had initially positioned itself around broadband but held a license for fixed telecommunications services that also included voice.

  What changed. The company launched nomadic voice services over its WiMAX network on November 15.

  Aftermath. The launch marked the end of Saudi Telecom’s fixed-line monopoly and broadened GO’s service portfolio beyond internet access.

  Source
• 2008Adopted WiMAX as the initial access technologyStrategy

  The company needed to build a competing fixed-access network across multiple Saudi regions while entering a market historically dominated by an incumbent fixed-line operator.

  What changed. Etihad Atheeb Telecom contracted with Motorola, ZTE and Wipro for the planning, construction, optimization and support of a WiMAX 802.16e network.

  Aftermath. The technology enabled the GO brand to launch broadband and later nomadic voice services without relying solely on a conventional wired local-access rollout.

  Announced Motorola infrastructure contract value. US$165 million announced contract (2008)

  Source

• 2010Raed Kayyal appointed acting chief executive

  The board appointed Raed Kayyal as acting chief executive officer, replacing Ahmed Abbas Sindi.

  Leadership change
  Source
• 2009GO brand launched in Riyadh

  Etihad Atheeb Telecom introduced GO as its commercial trademark at a launch event in Riyadh.

  CampaignProduct launch
  Source
• 2009Etihad Atheeb Telecom completes Saudi IPO

  The company completed an offering representing 30 percent of its shares. The issue was reported as substantially oversubscribed and was described as the first Saudi IPO after the suspension of new offerings during the 2008 market turmoil.

  Other
  Source
• 2009GO begins commercial WiMAX broadband service

  GO announced the commercial launch of WiMAX broadband in Riyadh and later expanded the network to additional western and eastern Saudi cities.

  Product launchProduct generation
  Source
• 2009GO launches nomadic voice services over WiMAX

  The company introduced nomadic voice services using its WiMAX infrastructure, expanding beyond broadband and challenging the established fixed-line structure.

  Product launchRegulation
  Source
• 2008Etihad Atheeb Telecom announces Motorola WiMAX infrastructure agreement

  The operator announced an agreement with Motorola for the first stage of its WiMAX network, including planning, installation, optimization and support.

  Other
  Source
• 2007Etihad Atheeb Telecom selected in Saudi fixed-services licensing process

  The company was among the applicants considered for a public fixed-services license, and it was included in the group of eligible applicants approved by the Saudi telecommunications regulator.

  Regulation
  Source
• 2007Etihad Atheeb Telecom receives 3.5 GHz spectrum

  The company acquired spectrum in the 3.5 GHz band for a network planned across thirteen Saudi regional divisions.

  RegulationOther
  Source

1. Etihad Atheeb Telecom