Convergence in Telecommunication in Saudi Arabia

Companies that offer convergence and multiple services are able to strengthen their position in the global market and this would become a key to survival, as customers would prefer a single operator who would offer bundled services (Shneyderman, 2009). The global telecommunication market is growing exponentially, in 2008, it showed a growth of 8.9%, and the market value was about 557.3 billion USD. It is estimated that the total number of global subscribers in 2008 was about 2 billion and this represents a rise of 10.9%. By 2012, it is estimated that the global subscriber base would reach 3.1 billion customers and the market would be worth 733.1 billion USD. Networks have moved away from the early 2G networks to 3, 3.5 and 4 G networks and beyond. Having an optimum and affordable bandwidth is one of the basic requirements for convergence. It affords a great value addition for mobile telephony operators and a business and entertainment tool for people. It is obvious that convergence holds the key for growth, development, and telephony operators that can offer this service would survive (Datamonitor, August 2009). This thesis would perform a techno-commercial analysis of the convergence market in Saudi Arabia – SA.

About Saudi Arabia
Saudi Arabia is the worlds leading oil-producing nation. The country has a high standard of living and has one of the highest GDP per capita in the world. Moving from an oil-based economy, SA has started constructing the King Abdullah Economic City and this would attract trade, stock markets, tourism, and offer port services. Obviously, such a high growth plan requires easy access to information and a means to merge voice and data traffic through mobile handheld devices. Internet users have increased over the years and use the Internet to access news, trading, and stock market news and to conduct eCommerce and online shopping, entertainment, and many other creative uses. It is estimated that by 2008 end, the eCommerce market in SA was worth 1 billion USD.&nbsp.