The Next Wave of Growth in Saudi Arabia's Telecom Market Will be Driven by a Large Youth and Expatriate Consumer Base and a Surge in Broadband

DUBAI, UAE, October 9, 2010 - Delta Partners, the leading telecom advisory and investment firm in
emerging markets, released its latest White Paper today, "The rise of Saudi
Arabian telecoms: Unrivalled promise and opportunity in a vibrant market".
The publication discusses Saudi Arabia's telecom market and the next wave of
growth drivers based on six 'Promise Pillars'.

Over the last 5 years, the Saudi Arabian telecom market has seen
phenomenal growth to become a USD 11.6 bln industry in 2010 that contributes
to around 3% of GDP.

"The growth in Saudi Arabia's telecom market has been solid, with an
extra USD 1 bln revenue expected to be added this year - more than all the
remaining GCC market growth in 2010 together." said Josep Que, Partner.
"Growth historically has been driven by voice and basic data services. Going
forward, we believe six promise pillars will drive the majority of the growth
in Saudi Arabia's telecom market."

The six promise pillars to drive future growth in Saudi Arabia's telecom
market

The first pillar is the large youth and expatriate population that are an
influential part of the consumer dynamics in Saudi Arabia. They are currently
underserved but offer vast potential if directly targeted. This does not mean
creating products or services in isolation, but rather creating a holistic
value proposition that fulfils in a unique way their needs.

The surge in broadband represents the second pillar. Broadband users have
grown ten-fold since 2005 and are expected to nearly double from 3.2m users
in 2010 to 5.9m users in 2014. Industry stakeholders such as telecom
operators, equipment vendors, internet players and the government are all
expected to play a significant role in pushing broadband penetration and
thereby benefiting from the uptake of broadband services.

The third pillar is the smart device. Apple's Iphone and RIM's Blackberry
have caused a stir in Saudi Arabia. It has caused many consumers to pay more
attention to the device rather than to the operator (device brand, interface
and applications) giving competitive advantages to operators with the best
line-up. This will require operators to carefully design their device
strategy in order to capture the growth opportunity. Additionally, device
players will have a strategic decision to make: remain hardware-focused or
expand into the services market by linking devices to services.

Innovative telecom applications and services form the fourth pillar.
Value added services are already popular in Saudi Arabia, contributing today
25% of total data revenues. It is expected to reach nearly 40% of total data
revenues in 2014. Telecom applications and services with a focus on
innovation and adaptation to local needs will drive this opportunity. Both
the government and regulator can also play an important role by establishing
an enabling environment, and promoting Saudi Arabia as the main hub for
content and application development within the Middle East.

The fifth pillar is mobile financial services (MFS). MFS can place Saudi
Arabia at the forefront of mobile commerce in the region through the creation
of a standardized and large enough ecosystem that is attractive for all
players. MFS, if implemented properly, could bring important benefits to
multiple stakeholders such as the government, operators and banks.

Corporate need for sophisticated ICT services is the sixth pillar. As
Saudi businesses' communication needs expand, the business segment will
become increasingly sophisticated in their need for ICT services. Here, in
particular, telecom operators and vendors will have to deliver solutions for
verticals such as networking solutions, cloud services, data centers and
Machine-to-Machine (M2M), which are seen to have strong growth potential in
the market.

All industry stakeholders have an active role to play in making Saudi
Arabia's promise of growth a reality. The real winners in the Saudi Arabian
telecom market will be those who can smartly capitalize on these pillars and
continuously adapt their chosen strategies to relevant changes in the
economic environment, industry context and competitive dynamics.

For more on the White Paper please visit
www.deltapartnersgroup.com/our_insights/whitepapers

About Delta Partners

Delta Partners is the leading TMT advisory and investment firm in
emerging markets. With more than 160 professionals the firm operates across
50 markets in the Middle East, Africa, Eastern Europe and Emerging Asia.
Delta Partners provides three synergistic services: management advisory,
corporate finance and investments from its offices in the UAE, Bahrain, South
Africa, Spain and Singapore. Delta Partners delivers tangible results to its
clients and investors through its exclusive sector focus on telecom, media
and technology, and a unique approach to services, combining strategic advice
and a hands-on pragmatic approach.

    For further information and media relations please contact:

    Mia Mutic
    Delta Partners
    +971(4)369-2999
    mmu@deltapartnersgroup.com / www.deltapartnersgroup.com

For further information and media relations please contact: Mia Mutic, Delta Partners, +971(4)369-2999, mmu at deltapartnersgroup.com