MCIT to provide USD720m for STC’s fibre-optic rollout

2 Aug 2017

Saudi Telecom Company (STC) and the Ministry of Communications and Information Technology (MCIT) have inked an Implementation Agreement for the deployment of fibre-optic services in urban areas, effective 1 August 2017. The agreement includes state financial support amounting to SAR2.7 billion (USD720 million), which will be paid in regular instalments according to the scope of work carried out. The MCIT will also provide STC with ‘financial and regulatory exemptions’. Ownership, operation and management of the fibre-optic network and the provision of services to end-users will be carried out by the STC.

The agreement will contribute to achieving the targets outlined by the ‘Kingdom 2030’ project and is in line with the objectives of the National Transition 2020 Programme. As previously reported by TeleGeography’s CommsUpdate, in May 2017 STC signed an agreement with the MCIT and telecoms regulator the Communications and IT Commission (CITC) for the deployment of fibre-optics in the Kingdom of Saudi Arabia. The government-led project is aiming to link 1.3 million households with high speed services by 2020.