Atheeb scraps partnership deal with Mobily

June 4, 2014 11:32 am

Saudi Arabia’s Etihad Etisalat (Mobily) has said it will cut its second-quarter profit by SR338.7m ($90.3m) after fixed-line rival Etihad Atheeb scrapped a deal between the two companies, Reuters has reported. Mobily and Atheeb concluded an Indefeasible Rights of Use (IRU) agreement on March 30 that would enable Atheeb to use Mobily data subsidiary Bayanat’s fibre network, but Atheeb has exercised a clause to cancel the deal, Atheeb said, “due to some technical and logistical difficulties.” A separate agreement that allows Mobily to include Atheeb’s voice lines in its fixed data and voice packages remains in place, said Atheeb’s chief executive, Ahmad Maali.