Will Saudi’s telcos, government charge Saudi consumers to use social media?

Saudi is a country that isn’t well understood by many, especially by communicators. However, for all of the stereotypes the Kingdom has the capacity to surprise. Take for example a piece published by Saudi Arabic-language newspaper Al-Watan on the 15th of December. If true, the short story was a good piece of investigative journalism. To summarize for non-Arabic speakers out there, a number of telecommunications companies have met with the Communications and Information Technology Commission, the national regulator which oversees the telecommunications industry, to discuss levying on consumers a charge for social media services (the full story in Arabic is below).

Saudi telco operators have apparently met with the national regulator to discuss levying a social media charge on consumers, according to this piece in Al-Watan

Saudi telco operators have apparently met with the national regulator to discuss levying a social media charge on consumers, according to this piece in Al-Watan

The Kingdom has the most active social media base in the region; Saudis are avid users of services such as Snapchat, Twitter and YouTube. Saudis have taken to social media to call for boycotts against the telcos for what they describe as poor service and high costs. Quite understandably, this report didn’t go down too well with Saudi consumers. A new hashtag was conceived, named fees/charges on social media (#رسوم_علي_مواقع_التواصل).

The regulator has moved to deny the initial story – Al-Watan carried a denial piece the day after. However, partly due to a lack of trust in both the telcos and the regular, many Saudis online have expressed their belief that the news is true. The report prompted many Saudi influencers to share their own views online on the quality of service offered by Saudi telecommunications firm; below is a vblog by Saudi Gamer.

Globally telcos have been seeking solutions to redress the challenge of revenues lost to social media channels or applications which offer lower or free services such as messaging and calling. The issue is going to get worse, according to London-based research and analytics firm Ovum. The telecommunications industry will lose a combined $386 billion between 2012 and 2018, the firm predicts, from customers using over-the-top (OTT) voice applications such as Skype, or Whatsapp.

Some operators such as Verizon are looking to become content producers as well as deliver the content through the pipes. However, charging consumers for accessing social media would be a short-term but unpopular option for telcos to use as they seek to fill the revenue gap. How much it may impact online consumer behavior and advertising is anyone’s guess. We may find out next year.

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