The Saudi Telecommunications Company (STC) recently announced a 33 percent reduction in Internet charges from 7.5 halalas to five halalas per minute. The new rates will take effect on July 1. The National Economy and Finance Minister and Acting Minister of Posts,
Telegraphs and Telephones approved a proposal made by the company to cut Internet charges.
The Minister and STC also agreed to slash by 30 percent, the charges for leased circuits for the transmission of information. The move will reduce the rates charged by the Internet service providers (ISPs) to their clients.
"It will also benefit the business sector as they depend greatly on these circuits to circulate information," the company's statement revealed. In February, the STC purchased capacity on the Flag Atlantic-1 transatlantic cable system, for transmission purposes to cities in Europe, and countries in the Middle East, Asia and Latin America, and to be a gateway to global connectivity. The move extended the reach of Saudi Telecom's existing
network through providing cost-effective, high-speed access to the US Internet market.
The Saudi Telecommunications Company (STC), established in 1998 with capital of SR 10 billion decided to move rapidly to install much needed phone lines in the Kingdom. Approximately 300,000 additional telephone lines were installed by the end of the sixth phase of the Kingdom's telephone expansion program, which was completed at the end of 1999.
© 2000 Mena Report (www.menareport.com )