STC Agrees with Ericsson, Huawei, Nokia to Deploy 5G Network

STC CEO Nasser al-Nasser and KT(Korea Telecom) representative (STC)
STC CEO Nasser al-Nasser and KT(Korea Telecom) representative (STC)
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STC Agrees with Ericsson, Huawei, Nokia to Deploy 5G Network

STC CEO Nasser al-Nasser and KT(Korea Telecom) representative (STC)
STC CEO Nasser al-Nasser and KT(Korea Telecom) representative (STC)

Saudi Telecom Company (STC) signed three major deals to deploy 5G network in Saudi Arabia and develop services with Nokia, Huawei, and Ericsson at the Mobile World Congress in Barcelona.

Nokia's equipment, software and services will be used to set up a 5G network first in the western and southern part of Saudi Arabia as part of STC’s strategy in conjunction with Vision 2030 and National Transformation Plan (NTP) 2020. The rollout phase is already ongoing and is expected to be completed by end of 2020.

STC subscribers will have access to ultra-high bandwidth and low latency services, as well as new applications in areas such as virtual reality, augmented reality and artificial intelligence.

STC will modernize its existing LTE network through latest technologies such as PS (Packet Switch) core, Massive MIMO, 15-band antenna and multi-band technology.

STC CEO Nasser al-Nasser said: "We are excited to work with Nokia on the Aspiration project which will help us realize our dream to be the first one to launch 5G services in the region.”

He explained that once completed, the subscribers will be able to enjoy innovative high bandwidth consuming use cases, adding that the project underscores STC’s support and commitment to NTP 2020 and Vision 2030 to drive Saudi Arabia's digital transformation into a knowledge economy.

“The leadership of our longstanding partner, Nokia, in the development of 5G is crucial for our launch of 5G services.”

“The agreements will contribute to enhancing the company's products and services, and expanding its market share in the ICT market,” said Senior VP of Technology and Operations Unit Haitham al-Faraj.

Procurement and Support Services Sector VP Emad al-Aoudah also indicated that STC has signed multiple Rawafed Local Content agreements under its 5G Aspiration Project with strategic partners.

Earlier, STC signed a Memorandum of Understanding (MoU) with KT (Korea Telecom) at the Mobile World Congress 2019 to collaborate on new technology areas.

As a leading telecommunication company in Korea, KT will cooperate with STC in various business areas and the two will generate and maximize the synergy effect by combining KT’s state-of-the-art ICT technologies such as 5G network, GiGA Wire, GiGAeyes, VR and STC’s Group business expertise and strong influence in MENA region.

Nasser said the collaboration is a great opportunity for STC and introduce KT’s field proven solutions to Saudi Arabia.

“I am hoping our successful cooperation models could expand to STC’s foreign subsidiaries and other MENA countries.”

Meanwhile, STC launched the first internal network for 5G at King Fahd University of Petroleum and Minerals (KFUPM), at the presence of the dean Dr. Sahl Abd al-Jawad.

The network, launched experimentally in the university at its headquarters in Dhahran, is the first of its kind in the Kingdom and the region. Infrastructure VP Khaled al-Darab said that 5G will help the university build a strategic partnership with the company to develop new services and innovations.

“The company has achieved high speeds of up to 1.3gb/s during site test trials, and the site will be operational in the second quarter of this year.”



ACWA Power Completes $1.9 Billion Rights Issue

The ACWA Power headquarters in Riyadh. (Asharq Al-Awsat)
The ACWA Power headquarters in Riyadh. (Asharq Al-Awsat)
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ACWA Power Completes $1.9 Billion Rights Issue

The ACWA Power headquarters in Riyadh. (Asharq Al-Awsat)
The ACWA Power headquarters in Riyadh. (Asharq Al-Awsat)

Saudi Arabia's ACWA Power, the world’s largest private water desalination company, announced on Sunday the successful completion of its 7.125 billion Saudi riyal ($1.9 billion) rights issue, marking one of the largest capital raises in the history of the Saudi capital market.

In a statement, the company said the transaction drew exceptional investor interest with an overall subscription of 96%, and a 6x over-subscription in the rump placement with an overwhelming majority going to international investors, despite the tight discount level and the volatile market of the recent months.

The proceeds from the rights issue will be used to fund ACWA Power’s growth to achieve $250 billion of assets under management by 2030 from the current $117 billion, it said.

It added that these funds will be deployed across ACWA Power’s robust project development pipeline, including power, water desalination and green hydrogen projects, as well as selective Mergers and Acquisitions (M&A) opportunities to complement our portfolio.

“The overwhelming support we received in our capital raise is a resounding vote of confidence in our strategy, growth ambitions, and role in supporting Saudi Arabia’s Vision 2030,” Chief Financial Officer of ACWA Power Abdulhameed Al Muhaidib said in a post on X.

“We have a strong track record, having almost doubled the size of the company in the last three years, and we extend our sincere appreciation to the Capital Market Authority, the Saudi Stock Exchange, and all our transaction partners whose support and collaboration were instrumental to the success of this rights issue,” Al Muhaidib added.

The total offering size amounted to 7.125 billion Saudi riyals, with 96.2% of the new shares subscribed during the subscription period.

The rump offering, where the qualified institutional investors had the chance to bid for the remaining unsubscribed new shares, was oversubscribed by 592%, demonstrating significant interest from investors beyond the initial shareholder base.

This successful offering not only reinforces the company’s position but also contributes to Saudi Arabia’s broader transition toward a sustainable and diversified energy future, ACWA Power said.