DIGITAL DIVIDE AND THE BROADBAND IN SAUDI ARABIA

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this research study, the broadband internet services providing companies in Saudi Arabia are being analyzed and compared. The two companies that are analyzed and compared are STC and Mobily. In this research study, the secondary qualitative research methods are being used, questionnaires are being filled by the target population and interviews are being conducted via Skype.

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: INTRODUCTION1

1.1Background of the study1

1.2Saudi ICT market3

1.3STC Company4

1.4Etihad Etisalat Company4

1.5Research Aims and Objectives4

1.5.1Aim4

1.5.2Objectives4

1.6Significance of the Research5

CHAPTER 2: LITERATURE REVIEW7

2.1Saudi Arabia7

2.2ICT8

2.3ICT Opportunities in Saudi Arabia9

2.4ICT Promotion9

2.5International partners10

2.6The Market10

2.7Broadband access to the internet in Saudi Arabia11

2.8Business Opportunities12

2.9Leading Telecom Companies13

2.10STC Company Overview13

2.11Business Description14

2.11.1GSM (global system of mobile)14

2.11.2PSTN14

2.11.3DATA15

2.12Major Products and Services15

2.13Revenue Analysis16

2.13.1Saudi Telecom Company16

2.14SWOT Analysis16

2.15Strengths and Competitive Advantages17

2.15.1Strong revenue growth17

2.15.2Leading brand image17

2.16Weaknesses18

2.16.1Declining market share18

2.17Opportunities18

2.17.1Geographic expansion18

2.17.2Network expansion19

2.17.3Increasing adoption of 3G19

2.18Threats20

2.18.1Intense competition20

2.19Etihad Etisalat Company21

2.19.1Personal division21

2.19.2Business division21

2.20Competitive Advantage22

2.21Products and Services23

2.22Top competitors24

2.23SWOT Analysis24

2.24Strengths25

2.25Weaknesses26

2.26Opportunities26

2.27Threats26

REFERENCES28

APPENDIX29

Broadband in Saudi Arabia Questionnaire29

CHAPTER 1: INTRODUCTION

Background of the study

Since the mid- 1990s, the explosion of the internet has promoted intense speculation about its ultimate impact upon the economy, society and politics. Internet use has been growing steadily for the past decade. Furthermore, the increased importance of information and communication technologies (ICTs) has stimulated productivity, and driven the economic growth of countries by investing in ICT (Rice, 2006, 60). In business, Internet has significant impact as it helps in increasing the profitability of the business and saves the cost of the business.

The increasing disparities in the usage, expenditures, and accessibility of the technology are evident worldwide. This is known as ''Digital Divide''; the inequality between the information 'haves' and information 'have-nots' has been labeled the digital divide (Graham, 2010, 55). The gap between individual, household, business and geographic area at various socio-economic levels with respects both to their opportunities to access information technology and to their use of the internet for a wide variety of activities is also widening. The primary factors that contribute to the digital divide are following:

Income

Employment

Education

Internet has transformed many lives, the broadband connections help in transforming the lives of the individual. Cable connections and DSL make the advancement in the lives of the individuals.

Broadband internet access means that the users do not have to use the dial-up phone call for connecting to the Internet. Moreover, no more additional telephone line is being required to connect to the Internet from home to any other place worldwide. To attain the broadband access, there are simply two ways (Gilroy, 2006, 110). The first way to access to the Internet is by cable modem, the cable modem is ...