Motorola, Inc. (NYSE:MOT) announced today that it has signed an agreement with SabaFon to increase the coverage range and capacity of the operator’s GSM network to serve a greater number of subscribers in Yemen. The network expansion initiative, using a Motorola Reach GSM solution, will widen the scope of SabaFon’s reach in both the northern and southern regions of Yemen and boost SabaFon’s customer reach as a growing number of residents opt for GSM connectivity.
Penetration of telecommunications in Yemen is on the increase as the modernization programs implemented by the government come to fruition, and international connectivity connections show the vast improvement in the state of the industry. Mobile subscription rates are also growing dramatically, albeit from a small base, which leads to exciting opportunities for companies such as SabaFon with strong local and regional knowledge, complimented by strategic relationships with global leaders such as Motorola.
"We are extremely satisfied with Motorola’s professional performance since 2003 that reflects our solid and fundamental strategic relationship. The network expansion is an ongoing process and Sabafon is committed to continuous investment in technology and people in order that we can continue to provide the very best service to our growing customer base,” said H.E. Sheikh Hameed Al Ahmar, chairman of SabaFon.
“SabaFon is not content to stand still. Under the leadership of H.E. Sheikh Hameed Al Ahmar, we are committed to grow the company in a cohesive and structured manner. This required significant investment in network infrastructure this year and we have clearly demonstrated our commitment to achieve our goal to remain the leading provider of GSM services to our growing customer base in Yemen. We are enormously proud of our achievements to date and are delighted by the support provided by our key suppliers such as Motorola; however, our biggest sense of pride is directed towards the professionalism and dedication of all SabaFon people and the continued loyalty of our customers,” said Mr. Tarik Al-Haidary, CEO of SabaFon.
SabaFon has been operating in Yemen since 2001 and has been working with Motorola since its launch. SabaFon is now able to provide GSM coverage for 85% of Yemen’s population.
“Yemen is a strategic market for Motorola in terms of our regional and global strategy to ‘connect the unconnected’ and boost economic development in emerging geographies. Research has shown that increasing the number of mobile subscribers in developing markets can have a measurable impact on a country’s GDP, and GSM network expansions projects like SabaFon’s directly benefit consumers through enhanced connectivity,” said Ali Amer, senior director of sales, Motorola Networks & Enterprise, Middle East North Africa and Pakistan (MENAPAK).
A portion of the revenue on this contract was recognized by Motorola in the third quarter of 2006.
