QualityNet in talks over two regional telecoms deals

20 Jun 2011

Kuwaiti internet service provider (ISP) QualityNet has confirmed that it is in talks for ‘two major projects’ in the Gulf region. CEO Waleed Saleh Al Qallaf indicated that the transactions – which have yet to be identified – will mark the company’s first attempts at overseas expansion. QualityNet is in the process of forming two consortia to participate in the deals. Al Qallaf commented: ‘Our main target is outside, looking outside Kuwait. It is not operating in other countries but getting into some regional projects related to telecoms. The telecoms map in the region is being reformed. The growth in internet usage is considered one of the highest in the world. We anticipate good growth, and we want to be part of that’. The CEO suggested that the regional expansion will help QualityNet to match its 12% growth forecast for 2011.

As reported by TeleGeography’s CommsUpdate last week, Kuwait’s Ministry of Communications (MoC) called upon the country’s ISPs to cut their prices in order to promote increased competition within the sector. MoC Undersecretary Abdulmuhsen Al-Mazidi also indicated that a new law promoting the creation of a Communication and Information Technology Institute – which will be charged with overseeing such issues – was set to be approved (in draft form) by the National Assembly Committee yesterday. To this end, Al Qallaf added: ‘We are pushing the Minister to change the prices. We clearly told the Ministry, as soon as you lower your prices for the services offered to us, we will lower our retail price, because they come together. We want to open the market. The more the market is open the cheaper prices will get, with more diversity and better options’.

Kuwait, Solutions by STC (formerly Qualitynet)