Saudi Arabian mobile operator Etihad Etisalat Company (Mobily) has selected Motorola, Inc. (NYSE:MOT) among other vendors to expand its GSM network within the Northwest and Southwest regions of the Kingdom. Under the agreement, Motorola will deploy its latest Motorola Reach GSM solution and provide various managed services for the Mobily network.
Additional capacity and network coverage of the newly expanded network will enable Mobily to launch new services rapidly and smoothly while maintaining high quality of service, thereby enhancing customer loyalty and reducing the potential for customer churn.
In managing the Mobily network, Motorola will be responsible for project management services as well as the operation and maintenance of the network according to an agreed set of key performance indicators, and will also include the ongoing network planning and optimization of the network to meet the operator’s increasing subscriber demand for high quality of service. The managed services contract will enable Mobily to help reduce network operational expenditures and total cost of ownership.
“Since we launched the service a year ago, we have had an ambitious expansion strategy. This deal not only increases the capacity and coverage of our network so that we can serve more customers, but also enhances our responsiveness to customer demands as we continue to deliver new applications and services,” said Mobily CEO Khalid Al-Kaf. “We’re excited to expand our relationship with Motorola among other major vendors to realize our business goals.”
“This Motorola Reach GSM network expansion will enable Mobily to significantly extend its network coverage and enhance its services offering, allowing the company to reduce its national roaming costs,” said Ali Amer, senior director of sales for Motorola Networks & Enterprise in the Middle East, North Africa and Pakistan. “Leading operators in the Middle East increasingly look to outsource all or parts of their network to realize strong business growth. The managed services component will allow Mobily to leverage Motorola's expertise and expansive services portfolio, enabling Mobily to maximize its infrastructure investment and focus on its core business objectives.”
A portion of the revenue on this contract was recognized by Motorola in the second quarter of 2006.
Motorola began working with Mobily in 2004, supporting its business goal to reach over 3.5 million nationwide subscribers by the end of its first year of service in May 2006.
