Zain Saudi says Mobily’s claims are unfounded

3 Dec 2014

Zain Saudi Arabia, the country’s third largest cellco in terms of subscribers, has suggested that Mobily’s recent claim that it is owed SAR2.2 billion (USD586.3 million) is unfounded. According to Zain Saudi, the amount due for payment under the Roaming Service Agreement currently stands at SAR13 million. Reuters cites Hassan Kabbani, Zain Saudi’s chief executive, as saying: ‘We have been asking Mobily to provide documentation that could justify this claim and so far they have failed to do so – these claims are not valid … It is something very serious – there is no way this amount is feasible or reasonable.’ Kabbani said that Mobily provided national roaming services for Zain Saudi until August 2013, when his company switched to former monopoly Saudi Telecom Company (STC).

As reported by CommsUpdate yesterday, Mobily requested a referral to arbitration with regards to receivables due under an agreement signed with rival Zain Saudi on 6 May 2008. Mobily disclosed that by 30 November 2013, Zain owed it SAR2.2 billion for the provision of national roaming, site sharing, transmission links and international traffic; the company said that it could not reach an amicable settlement with its rival for the amount due, so its management decided to revert back to arbitration, in accordance with the Arbitration Rules and Regulations outlined in the Service Agreement.

Saudi Arabia, Mobily (Etihad Etisalat), Zain Saudi Arabia