Telecom firms lose SR250m during Eid due to WhatsApp

Telecommunication companies in the Kingdom must have lost about SR250 million during Eid festivities this year due to a huge increase in the use of WhatsApp texting messages to convey Eid greetings, a noted economist has said.

In the not so distant past, Eid greetings were being sent by using SMS via mobile phones. But that system is outdated and completely out of sync with the present system of texting messages through WhatsApp, which, of course, is free of charge.

Muhammad Shammakh said telecommunication companies used to make a profit of at least SR250 million during the feast from the exchange of Eid greetings only through SMS service. This is through at least one billion messages. Shammakh said despite the recent uproar regarding cancellation of WhatsApp service due to complaints by companies that they will lose over SR3 billion, the service still exists and thrives. He said at the pace with which technological development is taking place around the world, the latest telecommunication services will make people’s life much easier and more comfortable.

Meanwhile, Dr. Salim Ba-Ajajah, professor of accountancy in Taif University, said many technology companies have entered into the competition for providing programs similar to WhatsApp after its great success.

Ba-Ajajah said it was  difficult to completely cancel a certain service. In this connection, he gave the example of die-hard listeners of radio programs and readers of newspapers who stick to their habit despite the emergence of satellite channels that keep pace with events live.   

Fahd Muzahim, another economist, said the means for conveying greetings have become diverse due to the great technological development.

However, some people have remained faithful to their old methods of conveying greetings through family visits or meeting in open places during the Eid days.

Also, some people use FaceBook and other social media outlets in congratulating their relatives and friends. This is especially the case with stars, who are followed by their fans.