Mobily says tower merger with Zain no longer part of its strategy

5 Jul 2021

Saudi cellco Etihad Etisalat (Mobily) has backtracked on previous plans to merge its wireless tower infrastructure with Zain Saudi Arabia’s, saying the plan no longer aligns with Mobily’s strategy and objectives of achieving financial and operational efficiency. In March 2021, Saudi Arabia’s Communications & IT Commission (CITC) approved in-principle an application to merge wireless tower infrastructure submitted by Mobily and Zain KSA in a consortium with Raidah Investment Co (AlRaidah) and IHS KSA. The merger plan, first announced in July 2020, was seeking to unify tower infrastructure under a new Saudi-registered entity, Towers Company, which was scheduled to operate under a licence for providing wholesale infrastructure services (category A, towers and masts). Mobily, Zain KSA and AlRaidah were to collectively own the majority of Towers Company’s shares, with IHS taking a minority stake.