STC strikes government deal to supply fibre services in Saudi

08 May 2017 | James Pearce

Saudi Telecom Company (STC) has struck a $1.95 billion agreement with the Saudi government to offer high-speed fibre broadband services throughout the Kingdom.

The project will connect around 1.3 million households with fibre lines, with STC taking on responsibility for connecting around 60% of the units, according to a report from Reuters.

STC said it expects the project to be completed by the end of 2020, with the project costing around 7.3 billion riyals ($1.95 billion). 

Demand for fibre in Saudi Arabia is growing, with STC and Mobily already offering up to 200Mbps connections in some areas. Last year, Zain’s Saudi arms was also rumoured to be looking at launching fibre in the kingdom after securing a unified concession.

Elsewhere, STC is one of three companies to have bid to become the third mobile operator in neighbouring Oman. Etisalat and Zain have also bid to compete in the Omani mobile market against Omantel and Qatar-based Ooredoo.