STC is currently the largest operator in Saudi Arabia, with around 20 million mobile subscriptions
Saudi Telecom Company (STC) announced plans to expand its 5G network in over 75 cities across Saudi Arabia, Arab News reported. According to the report, the project is an extension of the group’s success in delivering 5G network to over 90% of its locations in major cities.
The telco is currently the largest operator in Saudi Arabia, with around 20 million mobile subscriptions, representing nearly 40% of the market share.
STC had initially launched its 5G commercial services in June 2019, reaching over 35% of the population in Riyadh, Jeddah, Makkah, Madinah and Dammam.
“This expansion reflects stc’s keenness to advance the Saudi digital economy by raising empowerment and digital connectivity to the highest level,” the operator said in a statement.
The group is also focused on devising operations and business models to contribute to achieving the goals of Saudi Vision 2030 and play a more profound role in the Kingdom’s digital transformation.
Last month, STC purchased a 9.9% interest in Spanish telco Telefónica for €2.1 billion ($2.25 billion) to further its growth ambitions outside of Saudi Arabia. The stake, said the company, is comprised of 4.9% of Telefónica’s shares, as well as “financial instruments giving economic exposure to a further 5% of Telefónica’s share capital.”
STC ha said it plans to convert those instruments into shares but noted that it requires official approval to do so. Government authorization is needed for any foreign investor taking a stake of 5% or more in certain “strategic” defense companies, it explained, adding that Telefónica’s businesses related to national security and cyber defense puts it in that category.
STC chief executive Olayan Alwetaid said the purchase represents a “compelling investment opportunity” for the company to use its “strong balance sheet whilst maintaining [its] dividend policy,” while STC Chair Mohammed K. A. Al Faisal commented that the “long-term, significant investment… is a continuation of [STC’s] growth strategy, as [it] invest[s] in vital technology and digital infrastructure sectors across promising markets globally.”
This latest move is another example of STC’s growing interest in expanding outside of its home country. Earlier this year, STC’s tower infrastructure unit Tawal acquired €1.2 billion ($1.23 billion) worth of tower assets from United Group’s mobile tower infrastructure unit in Bulgaria, Croatia and Slovenia.
