Saudi Arabia’s Arabian Internet and Communications Services Company, known as Solutions, has inked a major agreement worth 313.39 million Saudi riyals, or about 83 million US dollars, with Saudi Telecom Company (STC). The deal, signed on September 25, 2025, focuses on expanding and upgrading internet and communications networks to support business growth and 5G services across the kingdom.
This partnership comes at a key time as Saudi Arabia pushes for stronger digital infrastructure amid rising demand for high-speed connectivity. With the kingdom’s telecom sector booming, this contract aims to modernize networks, replace old equipment, and build new data centers in several regions.
Details of the Landmark Agreement
The 36-month contract covers a wide range of upgrades to STC’s internal and international networks. Solutions will handle the supply, installation, and testing of new systems and equipment.
Key aspects include boosting network capacity to handle more traffic and improving virtual broadband services. The project also targets specific locations for new infrastructure, such as data centers in Khamis Mushait, Dammam, Qassim, and north Riyadh.
This move aligns with STC’s ongoing efforts to enhance services for business clients. By addressing outdated gear and expanding coverage, the deal sets the stage for smoother operations in a fast-growing market.
Experts note that such investments are crucial for keeping up with global standards. Saudi Arabia has seen rapid adoption of 5G, with operators like STC leading the charge in urban and rural areas.
Boosting 5G Services in Saudi Arabia
STC has been aggressive in rolling out 5G across the kingdom. Recent expansions have brought the technology to over 75 cities, with plans to cover even more by the end of 2025.
The Solutions deal directly supports this by upgrading networks to handle 5G demands. This includes increasing bandwidth and ensuring reliable connections for businesses relying on cloud services and IoT applications.
In June 2025, reports highlighted Saudi Arabia as one of the top markets for fixed wireless access, with STC and competitors like Mobily and Zain holding significant shares. The C-band spectrum auctions in late 2024 allowed operators to double their holdings, paving the way for faster speeds.
This agreement builds on that momentum. It ensures STC can deliver high-speed 5G to densely populated areas, reducing power consumption and boosting efficiency.
- Enhanced network capacity for 5G traffic growth
- Upgrades to virtual broadband for better business connectivity
- New data centers to support regional expansion
Logical reasoning suggests this will help STC maintain its edge in a competitive landscape. With broadband subscriptions dominated by the top three providers, investments like this prevent bottlenecks and foster innovation.
Financial Impact and Company Performance
The financial effects of the deal will start showing in Solutions’ books from the first quarter of 2026. This timeline allows for initial setup and testing before revenue kicks in.
In the first half of 2025, Solutions reported a slight net profit increase to 807 million Saudi riyals, up from 806 million the year before. This stability positions the company well to handle large projects.
STC, on the other hand, saw its net profits rise by 13.38 percent to 7.47 billion Saudi riyals in the same period. Such growth reflects strong demand for telecom services in the region.
A quick look at recent financials shows the sector’s health:
| Company | H1 2025 Net Profit (SAR) | YoY Change |
|---|---|---|
| Solutions | 807 million | +0.12% |
| STC | 7.47 billion | +13.38% |
| Mobily | (Estimated based on trends) 2.5 billion | +10% approx. |
These figures underscore the positive outlook. The deal could further lift earnings as 5G adoption accelerates.
Broader Context in Saudi Telecom Sector
Saudi Arabia’s telecom industry is transforming rapidly, driven by Vision 2030 goals for digital economy growth. Recent events, like STC’s partnership with Juniper Networks in March 2025, have already modernized core networks, adding 864 ports of 400G capacity and cutting power use by 43 percent.
Competitors are also active. Mobily doubled its C-band spectrum, enhancing urban 5G delivery. Meanwhile, expansions during the 1446 AH Hajj season in June 2025 saw STC boost its network to over 9,500 sites, ensuring seamless connectivity for millions.
This Solutions-STC agreement fits into that pattern. It addresses the need for robust infrastructure in critical sectors like healthcare and transportation, where reliable networks are vital.
International ties add another layer. Deals with global firms like Huawei and Nvidia highlight Saudi Arabia’s push for advanced tech, including AI and satellite services.
Future Outlook and Industry Trends
Looking ahead, this deal could spark more investments in Saudi telecom. With 5G expected to drive economic growth, experts predict the market will exceed 50 billion Saudi riyals by 2030.
Challenges remain, such as spectrum allocation and rural coverage, but partnerships like this help overcome them. For businesses, it means faster, more reliable services that support remote work and digital transformation.
As Saudi Arabia aims to become a regional tech hub, moves like this strengthen its position. Stakeholders will watch how the project unfolds over the next three years.
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