solutions seals SAR 382 mln contract with stc

Logo of Arabian Internet and Communications Services Co. (solutions)

Arabian Internet and Communications Services Co. (solutions) signed today, Aug. 6, a contract worth SAR 381.9 million (VAT inclusive) with stc to establish and develop internet and communications networks for the latter.

The scope of work includes the expansion of the internal internet network, new and existing network points, and internet services projects that serve stc's business units, solutions said in a statement to Tadawul.

Under the two-year contract, solutions will fulfill the business sector’s requirements with regards to stc's internet network.

In addition, solutions will install data transfer devices, improve the capacity of internal and international networks to accommodate the growth of 5G services, replace old devices that are no longer supported by suppliers, boost the infrastructure capacity of virtual broadband devices, and establish an internet infrastructure in the new data centers in Khamis Mushait, Dammam, Qassim, and North of Riyadh.

Moreover, solutions will supply, install, integrate, and test services for stc’s equipment, tools, programs, and systems, according to the statement.

The related financial impact will start reflecting as of the third quarter of 2023. Besides, stc is a related party, for being a majority shareholder in solutions with a 79% stake, the statement noted.