2003 News Story

STC reports successful progress

According to a recent report, the Saudi Telecom Company (STC) has shown a growth potential of 36 percent in fixed lines, and a doubling of mobile lines. Competition is not expected until 2005, providing time for STC to increase customer loyalty and drive down operating costs. FY 2003 should also see a one-time improvement in margins as government fees are lowered. Beyond three to five years, it is expected that opportunities depend on improved productivity.

In the four years since deregulation, STC has evolved from a state-administered, monopoly service provider, with only a hazy concept of corporate governance and customer service quality, to a transparent and quality one, highly productive, efficiently managed, and customer-focused. STC employs more than 20,000 staff and generates some SR3.8 billion [U.S. $ 1.01 billion] in profits.