Free mobile apps are no more a threat to telecom operators, rather they are a trigger for growth, a senior official of Ooredoo has said.
Waleed Al Sayed, Deputy CEO of Ooredoo Group and CEO of Ooredoo Qatar, hinted the company does not propose blocking free apps that take a share of the business of telecom companies.
“Mobile apps are no more a challenge for telecom companies. It was a matter of concern in the past. We have overcome that. I think mobile apps are not a threat to telecom companies. Instead, they create opportunities to upgrade their services,” said Al Sayed, in an interactive programme on Qatar TV.
“Telecom operators can switch from providing traditional call based services to provider of mobile data and compete in increasing its speed. Therefore, we do not consider apps as a risk for telecom companies but as opportunities,” he added.
Al Sayed said Ooreedoo expected its revenue from data services to rise in the coming years helped by an increase in use of various applications.
“More than 60 percent revenue of telecom companies operating in Qatar comes from mobile data,” said Al Sayed.
However, telecom companies in other countries generate 20 to 30 percent of their revenue from mobile data sale, he added. And this ratio will increase in future with the popularity of mobile apps like whatsapp and instagram that require high speed internet.
“In short, the services should be in the reach of every segment of the society including families and individuals. Therefore, Ooreedoo has made its services and products in different packages to serve all sections of the community,” said Al Sayed.
On blocking apps that steal the business of telecom companies, Al Sayed said: “This issue is related to the telecom regulator of the country, I cannot say anything on it. In Qatar we enjoy freedom and the country provides services to all citizens and expatriates. It is not possible to fight against new developments in the world. Websites of such apps could be blocked for some time, but how long? Once day we will be forced to lift the restrictions. We had similar experiences in the past about satellite dish,” said Al Sayed.
“The most important thing is that the telecom companies should change their thinking and diversify their sources of income to avoid possible risks,” he added.
There are several factors which play important roles in determining the prices of services. They include size of investment, taxes, frequency charges and number of customers, among others. All these contribute to operation costs. The prices of services increase with increase in operation costs, said Al Sayed.
