Saudi Arabia

Market Research Saudi: Saudi Arabia Establishes $930m High Speed Fiber Network

The telecommunication company in Saudi Arabia which named “Integrated Telecom Company” (ITC) has started their project to build an improvement for high-speed fiber network across the country, according to Market Research Saudi.

Ghassan Itani (ITC’s CEO and President) said that the improvement of this project aims to connect 640,000 homes, at a cost of 3.5 billion riyals ($930 million) also he said: “this agreement will improve the level of services provided to customers in all sectors.”

Previously the ITC has submitted approval as well, the Ministry of Communications and Information Technology (MCIT) has signed and allowed the ITC project to implement the work. Market Research Saudi understand that in May ITC has signed the initial agreement on broadband initiatives not only with MCIT but also with Communications and Information Technology Commission (CITC) in Saudi Arabia.

Ghassan Itani added that work will enhance the digital infrastructure also increasing to provide high-speed fiber optic broadband services. There are several places which would be improved; the urban areas of Kingdom, government offices and, residential units.

He continued “the agreement comes with the cooperation framework which supported by MCIT and CITC. ITC continuing the company commitment to apply a financial or technical structure as well improving human capabilities to achieve objective strategies for National Transition Program 2020, within Saudi Arabia Vision 2030.

ITC started in 2005, the company is part of AL-Mawarid group of companies (a company that manages investments in diversified businesses). ITC operates two cables of landing stations between Jeddah (on the red sea coast in the west) and Al-Khobar (on the gulf coast in the east). Those two areas are connected into 17.000km Saudi National Fiber Network which owns a number of the data center.

This year, Saudi Arabia is expected to generate telecom service revenue of US$17.1bn, equal to 2.5% of country’s GDP, only a -1.5% drop over 2016, as the market gradually improves from the -6.5% drop registered last year. The largest revenue was generated by mobile voice segment, accounting for 38.4% of total service revenue this year.

It is expected that overall service revenue to grow at a CAGR of 4.2% during 2017-2022 to reach $21.0bn.

Growth will certainly be driven by data services offered the increasing adoption of 4G, FTTH and also the popularity of OTT services.

Mobile data and voice segments together will account for 76.1% of total revenue in 2017. Fixed voice and Internet segments will account for any combined 22. 3%, while pay-TV will hold leftover 1. 6% share in 2017.