Growing demand for IoT, linked devices, and M2M will drive Saudi Arabia's 5G sales over the next ten years as significant expenditures fueled by Vision 2030 plan continue to be prominent.
Telecommunication facilitate transfer of different types of data, including speech, text, audio, and video, at anytime and anywhere in the world over a wired or wireless channel. The telecommunications sector has grown into a thriving industry with a significant influence on social and economic development of Saudi Arabia. The telecoms sector is growing its offerings and geographic reach while securing its position in peoples' daily lives. The telecom sector includes companies that offer phone, telecommunications, and internet services.
Furthermore, the market for telecommunication services is expanding due to the rise in mobile data traffic, the need for fibre deployment for connectivity, and the 5G network. Government regulations on network radiation are, however, impeding the expansion of the communications services industry. On the other hand, the development of the internet of things (IoT) is anticipated to present lucrative potential for growth in the future of the telecommunication services industry.
Advancement Of Fiber-Based Networks And Fixed Broadband Services
TLS acquired the complete network in accordance with a three-phase deployment strategy, with approval from the Saudi Communications and Information Technology Commission. According to the strategy, the transfer of assets between Salam and TLS will take place through the end of 2024. Salam will rent parts of the infrastructure for the fibre-optic network from TLS in accordance with its specifications. After the transaction, TLS will become one of the top telecom service providers for the Kingdom's fibre-optic network.
In October 2022, the Saudi telecom STC announced a new subsidiary dubbed Center 3 that connects Asia, Africa, and Europe through a regional media centre to accelerate the development of the Kingdom's digital economy. Through an undersea fibre-optic network, the Center 3 network of carrier-neutral data centres provides global telecommunications connectivity.
In June 2022, Saudi Arabia-based STC Group’s Mena Hub which is a premier digital hub, partnered with Greek telco TSSA. The partnership is working towards building the Med Data Corridor (EMC) undersea and land fibre optic data cables to link Europe with Asia. The aim is to offer ever expanding global connectivity and data centre capacity to the markets of Asia, Europe, and the rest of the world through Saudi Arabia. With rising digital connectivity, STC is going to expand only by owning, combining, integrating, and coordinating every aspect of the digital world through this project. The company can offer the end-to-end solutions with high latency, effectiveness and efficiency that caters the requirements of the businesses and customer.
Additionally, the country is enhancing its ultra-rapid broadband internet offerings. The Kingdom intends to have 3.5 million homes connected to ultra-rapid Fibre-to-the-Home (FTTH) broadband networks. The Saudi Ministry of Communications and Information Technology recently released policies to promote the implementation of FTTH ultra-fast broadband networks as part of the 2030 Vision's National Transformation Program. The government announced numerous subsidies and investments to construct fibre in underserved areas for telecom providers across the country.
Introduction of Mobile virtual network operator
Saudi Arabia Telecom Market experiencing rapid growth from last 5 years. Since then, with the aid of foreign investment and government support, the nation has established a highly competitive telecom services market.
Saudi Arabia is one of the few early adopters of 5G technology in 2019.
Due to strong government support, the country might continue to have the top market position in the area in the near future. 5G provides telecom firms with significant development possibilities in terms of service diversity. Initial trends in developed markets suggest that ARPU will rise. The development of 5G coverage and a smooth transition of their customer base to the new standard are major expenditures that telecom firms must undertake if they are to capitalize on these opportunities.
The Saudi Arabian Communications and Information Technology Commission (CITC) announced the launch of two new MVNOs in February 2022, a year after granting them operational licenses. Future Networks Communications and Integrated Telecom Mobile Company (Salam Mobile) (Red Bull Mobile) are the companies in question.
Expanding the telecom services sector is essential for converting the Kingdom into a digital society, according to Saudi Vision 2030. Due to the increased competition by the entry of two new businesses, both the product selection and the customer experience will rise.
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Market Segmentation
Market Players
Major market players in the Saudi Arabia Telecommunication Services Market are
Recent Development
According to Abdullah Alswaha, Saudi Arabia's Minister of Communications and Information Technology, the investments are being driven by a USD 2.1 billion commit from Microsoft, which will build a super-scaler cloud in Saudi Arabia. He made the announcement at the Leap 2023 conference in Riyadh.
Saudi Telecom Company stated in October 2022 that it has invested USD 1 billion in Center3 to assist the growth of Saudi Arabia's digital economy. The new business is held by the digital infrastructure assets of the STC group, including data centers, underwater cables, and internet exchange points (IXPs). The Center3 launch aims to strengthen the digital infrastructure and establish Saudi Arabia as a regional digital hub. The launch was done in line with STC's goal of achieving digital empowerment and expanding the company's presence.
| Attribute | Details |
| Base Year | 2022 |
| Historic Data | 2018 – 2022 |
| Estimated Year | 2023 |
| Forecast Period | 2024 – 2028 |
| Quantitative Units | Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028 |
| Report coverage | Revenue forecast, company share, growth factors, and trends |
| Segments covered | By Type By Transmission By End Use By Region |
| Regional scope | Northern & Central Region, Western Region, Eastern Region, Southern Region |
| Key companies profiled | Saudi Telecom Company (STC), Integrated Telecom Company (SALAM), Etihad Atheeb Telecommunications Company (GO), Zain KSA, Etihad Etisalat (Mobily), Virgin Mobile Saudi Consortium LLC, The Arab Satellite Communications Organization (Arabsat), Industrial Technology Co. Ltd (ITC), Gulf DTH FZ LLC. |
| Customization scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and purchase options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
