Atheeb Telecom cancels ZTE agreement on receivables

Etihad Atheeb Telecommunication Co. has terminated an agreement with ZTE Corporation, the telco said in a statement to Saudi bourse, Tadawul.

The Saudi-based telecom operator said it bid for the unified telecom license in Saudi Arabia and thus it needs to build a new network infrastructure to provide mobile and landline services, the statement added.

The termination will have no financial impact, the company noted.

Last August, Atheeb inked a settlement agreement with ZTE Corporation, under which the latter would waive SAR 110 million in receivables. ZTE would also provide the Saudi telecom operator with equipment to compensate for its noncompliance with a previously signed agreement with Atheeb.

ZTE is a global provider of telecommunications equipment and network solutions.