RIYAD: Mobile Telecommunication Company Saudi Arabia (Zain) has announced successful completion of the auction process and secured 100 MHz of additional spectrum in the 3.5 GHz spectrum, for a period of 15 years, for a total license fee of SAR 624 million payable in equal annual installments over 13 years starting from 01/01/2022. This spectrum will be available from 01/01/2020. [the_ad id=”32940″]The 3.5 GHz is going to be used to provide 5G services in Saudi Arabia, and following this acquisition, Zain spectrum holding comprises frequencies including 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2600 MHz and 3.5 GHz.
Spectrum is a very valuable asset for mobile network operators as customers demand high speed data services in the Kingdom, additional spectrum enables telecom operators to improve network capacity and deliver faster and more reliably throughput, thus enriching the customer experience.
The combined spectrum assets, some which have been already deployed in the Saudi market, will significantly improve throughput rates and experience for heavy data users and allow for deployment of future network technologies, including 5G at lower total capital expenditure.
Zain will fund the total annual license fees for the new spectrum from its operating cash flows and existing cash reserves and this investment had been anticipated in its business plan for 2019.