Saudi trio reaches an agreement with govt on royalty fees

18 Dec 2018

Etihad Etisalat (Mobily), Saudi Telecom Company (STC) and Zain Saudi Arabia have reached an agreement with the Ministry of Finance, the Ministry of Communications and IT (MCIT) and the Communications and Information Technology Commission (CITC) on royalty fees, with the trio agreeing to pay 10% of annual net revenues from telecom services retrospectively from 1 January 2018. Previously, the telecom providers were paying 15% of net revenues from mobile services, 10% (fixed line services) and 8% (data services). In return, the providers have agreed to increase investment in the kingdom’s telecoms infrastructure over the three years to 2020, including in technologies such as 5G. The three telecoms companies have also reached an agreement with the government to settle all old disputes in connection to government royalties up to the end of 2017.