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Etihad Atheeb Telecommunication Co, GO, signed an agreement on March 30 with Bayanat Al-Oula for Network and Services, a data subsidiary of Etihad Etisalat, or Mobily, on indefeasible rights of use of 50,000 ports of Bayanat’s fiber optics network, the company said in a statement to the Saudi bourse, Tadawul.
They agreed that they will increase the ports, used to provide broadband internet service and fixed lines phones service to homes and small and medium size businesses, to 250,000 ports in the future.
The deal will enhance Atheeb’s competitiveness and reach and will help increase its income which will be reflected in the 2nd quarter of this year, the loss-making company said.
The deal is not connected to the memo of understanding that Bayanat signed with some shareholders in Etihad Atheeb to buy a controlling stake in the fixed-line operator, Atheeb added.
The memo of understanding expiry date was extended for 90 days on January 29, 2014, according to Argaam.
Mobily, an affiliate of the United Arab Emirates’ Etisalat, is the second-biggest mobile company in Saudi Arabia.
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