solutions inks SAR 298.1 mln contract to develop stc's networks

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

Arabian Internet and Communications Services Co. (solutions) signed today, July 6, a SAR 298.09 million contract with stc - a related party - to establish and develop internet and communication networks for the latter, according to a bourse filing. 

Under the 24-month contract, solutions will undertake the expansion of stc's internal internet network as well as other internet service projects, in line with the industry increasing demand. 

Accordingly, solutions will install data transfer devices, boost the networks’ capacity to cater to the growth of internet and 5G services for individuals and companies, in addition to replacing old devices that the suppliers no longer support.

That is besides enhancing the infrastructure capacity of virtual broadband devices, while establishing internet infrastructure for the company's new data centers in Khamis Mushait, Dammam, Qassim and North of Riyadh.  

Moreover, solutions will further supply, install, integrate and provide test services for equipment, tools, programs and systems. 

The relevant financial impact will materialize in the company's Q3 2022 financials, the statement added. 

stc is deemed solutions’ major shareholder with an ownership of 79%.