0 items USD 0.00Saudi Arabia: The Resilient Telecom Leader of the Middle East
Mobile infrastructure in the Middle East has the highest population coverage compared to fixed broadband and the region is highly dependent on mobile services. In times of crisis, the ability to remain connected becomes even more essential to society and the economy.
This reliance on telecommunications infrastructure and services has been highlighted throughout the world during the COVID-19 outbreak, including in the Middle East, where many countries have required citizens to shelter at home. This has increased demand for telecoms infrastructure with people working and studying remotely. The operators have experienced a surge in bandwidth demand, which has led to a renewed push to either upgrade 4G networks or fast-track 5G developments.
**Note: Information is extracted from reports listed below
The Internet Penetration in Saudi Arabia is the Highest Among Middle Eastern Countries
Saudi Arabia offers one of the most progressive telecoms markets in the Middle East and is well-positioned to capitalize on the potential opportunities offered by 5G. Mobile penetration is considered high in and the market is heavily saturated, with a large number of mobile broadband users. In 2025, internet penetration in Saudi Arabia is forecasted to reach 97 percent, up from 84 percent in 2019. The number of Saudi internet users is forecasted to amount to 36.2 million in 2025, which is well above the average for the Middle East.
Saudi Arabia had entered 2018 on a positive note with the government announcement of its largest financial budget, which would support the country’s expansion and diversification plans as part of its Vision 2030 program. The proposed changes relate to improving the kingdom’s economy through increases in taxes and fuel prices and encouraging investment and diversification away from its reliance on oil. It was also expected to support the use of digital technologies for such uses as cloud computing and e-commerce and encourage ICT development, including investments in broadband infrastructure.
Saudi Arabia is committed to providing Internet services to its deprived rural areas, and a special Universal Services project was established in 2007. The program is now over three-quarters completed, with thousands of localities providing access where it was not considered commercially viable for operators to do so. While Saudi Arabia’s fixed broadband penetration is considered low on a global scale, there has been significant work towards developing fiber-based networks instead of DSL, which still comprise the largest market share.
Mobile operators have faced recent changes and challenges with the introduction of the biometric fingerprint law, which saw subscriber numbers drop and a shift away from pre-paid. accounts.
Leading Telecom Companies in Saudi Arabia
- Saudi Telecom Company (STC)
- Integrated Telecom Company (ITC)
- Etihad Atheeb Telecommunications Co. (GO)
- Mobily
- Mobile Telecommunication Company Saudi (Zain)
- Virgin Mobile KSA
- The Arab Satellite Communications Organization (Arabsat)
A major competitive shake-up for the Saudi telecoms sector also began in late 2016 when the Saudi government announced plans to award unified licenses to Zain Saudi Arabia and Mobily, which would allow the operators to offer fixed-line telephony and Internet services. In the past, only STC was permitted to do so. Also increasing competition in the mobile market was the recent lifting of OTT VoIP and messaging services bans, allowing providers such as Skype, Viber, Whatsapp, and so forth to begin operations again. Recently the operators have been exploring ways to monetize the thousands of mobile towers spread throughout Saudi Arabia. In 2019 STC established a subsidiary to manage its tower infrastructure TAWAL.
The mobile operators are very competitive and comprise Saudi Telecom Company (STC), Mobily and Zain KSA - and MVNOs. The Competition will increase further with two new MVNO licenses offered for tender by the Regulator in 2020.
Zain KSA Extends Country-wide 5G coverage in Saudi Arabia
5G is firmly on the agenda for Saudi Arabia, with the regulator awarding a new spectrum for 4G/5G use in early 2019. STC, Zain KSA, and Mobily have developed 5G partnerships with solution providers like Huawei, Nokia, Cisco, and Ericsson, and the three operators have launched preliminary services.
Zain had announced the commercial launch of 5G operations in Saudi Arabia in October 2019. In the early deployment phase, the company installed 2,000 towers that covered around 20 cities across Saudi Arabia. According to the company's press release, the telco already raises the company’s 5G network’s overall coverage to 30 cities throughout the Kingdom.
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