Saudi Telecommunication Company (STC)

Saudi Telecommunication Company, referred to as STC, is a Saudi joint stock company listed on the Saudi stock market (Saudi Tadawul), operating in the field of telecommunication and information technology services. Its headquarters is located in the capital, Riyadh.

Its shares are traded on the main platform of the main stock market within the telecommunications sector, under the symbol (7010), name (STC), ISIN (SA0007879543). The company's capital amounts to SAR50 billion, according to the update on August 31, 2022.

The areas of operation of Saudi Telecommunication Company include establishing, managing, operating, and maintaining fixed and mobile telecommunication networks and systems, as well as infrastructure. Delivering, maintaining, and managing various telecommunication and information technology services to customers. Preparing necessary plans and studies for developing telecommunication and information technology services, and implementing them from technical, financial, and administrative aspects, as well as preparing and implementing training plans and consultancy services in the field of telecommunication and information technology. Expanding and developing telecommunication and information technology networks, systems, and infrastructure through utilizing the latest devices and equipment in the telecommunication technology field, particularly in delivering and managing services, applications, and programs. Providing integrated information and communication technology (ICT) solutions, including, for example, telecommunication, information technology services, managed services, cloud services, and Internet of Things (IoT) services. Providing information and information-based systems to customers, as well as providing telecommunication means for the transfer of internet services. Engaging in the wholesale and retail trade, import and export, purchasing, owning, leasing, manufacturing, marketing, selling, developing, designing, installing, and maintaining a variety of telecommunications network devices and equipment. This also includes undertaking contracting works related to them, including fixed, mobile, and private networks, as well as computer programs and other intellectual property. Providing solutions for decision support, business intelligence, and data investment. Offering supply chain services and other related services. Offering digital banking services. Providing cybersecurity services. Establishing, erecting, and repairing wired and wireless telecommunication stations and towers, including radar.

Saudi Telecommunication Company (STC) was established as a Saudi joint-stock company by Royal Decree No. M/35 on April 21, 1998. This decree transferred the postal and telephone sector of the Ministry of Post, Telegraph, and Telephone (the telecommunications sector), along with all its technical and administrative components and capabilities, to STC. According to Council of Ministers Resolution No. 213 dated April 20, 1998, STC's statute (the Statute) was approved. At that time, STC was wholly owned by the government of the Kingdom of Saudi Arabia. The government sold 30 percent of its shares under Council of Ministers Resolution No. 171 dated September 9, 2002. During the year 2022, STC's capital was increased by 150 percent through the capitalization of SAR30 billion of retained earnings and by granting 1.5 shares for each one share owned at the eligibility date. Consequently, STC's capital rose from SAR20 billion to SAR50 billion.

The Public Investment Fund (PIF) represents the ultimate controlling party of the company by owning 64 percent of the total stocks of the company as of December 31, 2021 (compared to 70 percent in 2020). During the year 2021, the PIF conducted a secondary offering for 6 percent of the company's shares. The company commenced its operations by providing telecommunication services across the Kingdom on May 2, 1998, and it obtained its commercial registration as a Saudi joint-stock company on June 29, 1998.

Saudi Telecommunication Company has about fourteen subsidiaries, and it owns hundreds of branches within the Kingdom, in addition to several joint projects and mega investments, collaborating with peer companies in several countries such as Malaysia and Britain.

The company is expected to phase out its branches in the future, as a step to encourage its customers to use digital channels to complete required services quickly and effortlessly. This move aims to save costs associated with establishing, operating, and maintaining branches. On the other hand, the company operates in accordance with decisions made by its board of directors and the instructions of the committees that regulate its operations.

Saudi Telecommunication Company offers its diverse range of services to both individuals and businesses. These services include subscriptions to postpaid and prepaid packages, internet and call packages, fifth-generation (5G) packages, and packages specifically tailored for landline phones, with multiple options available for users.

The company provides home entertainment services through Jawwy TV devices, SIM card ordering services, and the purchase of devices and smartphones from STC store, in addition to other services accessible through mySTC app or the company's website.

In order to develop its operations, Saudi Telecommunication Company unveiled in late November 2021 the third phase of the enhanced data centers project. It is considered the largest project for establishing data centers in the Middle East and North Africa region, following the completion of the first and second phases.

The third phase aims to expand space and capacity and accelerate the achievement of the Kingdom's digital transformation objectives. It also provides world-class seamless data distribution with energy optimization solutions that align with the objectives of the Saudi Green Initiative for environmental sustainability. This phase is a planned Information Technology (IT) computing power at a maximum capacity of up to 125 MW.

Saudi Telecommunication Company is expanding its service offerings through a network of data centers consisting of sixteen centers comprising seventeen thousand storage units, serving eight parallel sites distributed across six cities. This makes the project the biggest program of data center construction in the region.

In furtherance of its partnerships aimed at developing its operations and services, Saudi Telecommunication Company signed a strategic partnership agreement with Huawei in February 2022. The agreement aims to create a joint model for the development of the data center sector and the localization of its equipment through the establishment of a factory to localize data centers in the Kingdom.

This agreement contributes to providing data center equipment locally and at lower costs, which increases global technology alignment and establishes new local industries. It also creates an attractive business environment and supports technological innovation, which, in turn, tangibly supports increasing the percentage of local content and contributes to achieving the goals of Saudi Vision 2030.

Saudi Telecommunication Company continues to develop its digital and technological programs and investments by signing agreements with major global companies. In this context, Saudi Telecommunication Company announced the initiative to establish the MENA Hub, a key digital center for the Middle East and North Africa region, with an investment of USD1 billion. Additionally, in February 2022, it announced the establishment of a company specialized in hosting services at data centers and regional and international connectivity, with a capital of SAR100 million.

The company's developments also included the announcement of an initiative to establish a factory for localizing data centers in the Kingdom in partnership with Huawei. Additionally, it collaborated with Ericsson to support the 5G core network and business support systems to enhance standalone 5G networks. Furthermore, it signed an agreement with Microsoft Arabia to develop innovation areas, cloud technology strategies, and 5G solutions.