UK-based Marconi has been awarded the contract to advise Saudi Telecommunications Company (STC) on the redesign and expansion of its GSM network. Under the $28.5 million contract, Marconi subsidiary Marconi (MSI)will advise STC on the redesign of its radio frequency (RF) services and transmission facilities and the ongoing expansion of its core network. The contract ratifies an agreement signed last year with MSI, shortly before it was acquired by Marconi. MSI operates GSM licences in 14 African countries and is a founding shareholder of Cairo-based GSM operator Vodafone Egypt.
STC awarded contracts in August to Sweden's Ericssonand Nokiaof Finland to expand GSM capacity by some 2.6 million lines. The company has said that it plans to increase network capacity by 1 million lines a year over the next four or five years. By the beginning of 2003, STC expects to have 4.5 million subscribers and to have expanded total network capacity to 5.6 million users.
Marconi (MSI) will advise STC on reducing network hardware costs and redesigning existing infrastructure. The company will also market the use of wireless application protocol (WAP) technology and high-speed data services in the kingdom.
The next major development in the GSM sector will be the launch of a second operating licence to run in competition with STC. The timing of the launch will be determined by the Saudi Communications Commission (SCC), which is being set up under the leadership of Mohammed Mulla (MEED 14:12:01).
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