Saudi Telecom Company
Company typePublic
Tadawul: 7010
ISINSA0007879543 Edit this on Wikidata
IndustryTelecommunications
Founded21 April 1998; 25 years ago (1998-04-21)
Headquarters
Riyadh
,
Saudi Arabia
Area served
  • Saudi Arabia
  • Bahrain
  • Kuwait
Key people
Products
Revenue$SAR 67.432 million (2022)[2]
$SAR 15.088 million (2022)[2]
$SAR 12.171 million (2022)[2]
Total assets$SAR 137.220 million (2022)[2]
Number of employees
23,780
Subsidiaries
  • stc Bahrain
  • stc Kuwait
  • channels by stc
  • solutions by stc
  • specialized by stc
  • CCC by stc
  • Sirar
  • Aqalat
  • Intigral
  • stc KSA
  • Telecom Towers Company Limited (TAWAL)
  • stc bank (stc pay)
  • iot squared
  • Center3
  • Saudi Cloud Computing Company
    (SCCC Alibaba Cloud)
ASN
  • 39386
Websitewww.stc.com

Saudi Telecommunication Company (Group) (stylized as stc; Arabic: شركة إتصالات السعودية) provides ICT services in the Kingdom of Saudi Arabia, across the Middle East and Europe.[3] The group offers landline and fixed infrastructure, mobile and data services, and broadband & cloud computing services. stc Group also offers online payments, telecommunications, IOT, 5G, e-gaming, cybersecurity, digital entertainment, and fintech.

History

Saudi Telecommunication Company (STC) was established as a Saudi Joint Stock Company on 21 April 1998 and began operations of telecommunications services throughout Saudi Arabia on 2 May 1998 as a wholly owned entity of the government of Saudi Arabia.[4][5] stc received commercial registration as a Saudi Joint Stock Company on June 29, 1998 under registration No. 1010150269, and closed its initial public offering (IPO) in January 2003.[6] On 11 April 2006, STC approved the increase of share capital from SR $15,000 million to SR $20,000 million through a transfer from the retained earnings to the capital.[7]

Muhammad Jamil Ahmad Mulla was named as the governor of the STC on 5 June 2001.[8]

The Saudi Digital Payments Company (stc bank) launched in 2017, with official work beginning in 2018.[9]

In December 2019, the company launched a new identity, and the names of its branches in Bahrain and Kuwait were changed from VIVA to STC Kuwait and STC Bahrain.[10] In June 2021, the Central Bank of Saudi Arabia approved the conversion of the Saudi Digital Payments Company (STC Pay) into a digital bank.[11] stc replaced all its 3G networks with 5G in October 2021.[12]

In 2021, Saudi Arabia's Public Investment Fund (PIF) sold 120 million shares in Saudi Telecom Company (stc) for $3.2 billion after completing a secondary share offering of stc Group.[13][14]

In February 2022, it was announced that STC subsidiary, TAWAL, has acquired the Pakistani company, AWAL Telecom Private Limited - an independent passive telecommunications tower provider, for an undisclosed sum. AWAL will be rebranded as TAWAL Pakistan.[15][16]

In collaboration with Alibaba Group, the Alibaba Cloud was launched in May 2022.[17] Center3, a new digital infrastructure assets company owned by stc Group, was launched in October 2022.[18] stc Group also completed the first global 1.2T/channel trial in its DWDM optical network.[19]

In February 2023, GO Telecom partnered with the company to provide IoT services throughout stc Group’s network.[20] Microsoft and stc also expanded their partnership that same month to further advance digitalization across Saudi Arabia.[21] It was announced in March 2023 that stc Group would provide the digital infrastructure for the Formula 1 Saudi Arabian Grand Prix, making it the company’s third consecutive year of partnership.[22] stc’s subsidiary TAWAL officially began operations in Europe in August of that year.[3]

In September 2023, it was announced stc Group had acquired a 9.9% stake in the Madrid-headquartered multinational telecommunications company, Telefónica, S.A.. The deal was worth €2.1 billion - making stc Group the company’s largest shareholder.[23][24]

Investment funds

In 2017, the InspireU business accelerator was launched. Since the program’s inception, the InspireU accelerator has supported over 90 digital projects, with investments and financial transactions hitting a market value of $SAR 12 billion. Over 40 million users have benefited from InspireU’s projects.[25]

In 2021, Saudi Arabia's Public Investment Fund (PIF) sold 120 million shares in Saudi Telecom Company (stc) for $3.2 billion after completing a secondary share offering of stc Group.[13][14]

The STV Investment Fund, which invests in small and medium-sized companies in communications and information technology, was established in 2018.[26]

In October 2021, stc Group launched 3 data centers in Riyadh, Jeddah, and Al-Madina with a $SAR 1 billion investment.[27]

stc Group launched its corporate investment fund (CIF) in February 2023. CIF invests in early-stage startups in the cybersecurity, AI, digital gaming, IoT, and blockchain sectors.[28]

As of May 2023, stc Group has invested over $SAR 3.5 billion in social, educational and health initiatives.[29] Its ImpactU program has supported projects with a total value of $SAR 800,000. The program aims to incubate five startups annually and increase the initial investment for each to $SAR 100,000 to drive local economic growth.[30]

Operations

stc Group services are divided into four broad categories:

stc Group also offers two content platforms:

In 2020, stc Pay earned its electronic money institute (EMI) license. Western Union soon after purchased 15% shares at a $1.3 billion valuation, making stc pay the first and largest fintech unicorn in the Middle East.[32]

The group is currently operating as a conglomerate to manage all assets, subsidiaries and joint ventures by the Saudi Telecom Group. Mohammed K. A. Al Faisal is the current chairman.[33]

References

  1. ^ a b c "قيادتنا". stc.com (in Arabic). Saudi Telecom Company. Retrieved 9 February 2024.
  2. ^ a b c d "Driving Digitalization Annual Report 2022" (PDF). Retrieved 15 February 2024.
  3. ^ a b "stc group officially begins operation in Europe". Saudi Gazette. 27 August 2023. Retrieved 5 January 2023.
  4. ^ "الصفحة الرئيسية". www.stc.com.sa. Retrieved 14 April 2023.
  5. ^ Abdulwahab Saleh AlWahashi (14 May 2022). "IMPACT OF C.S.R. ON BRAND EQUITY IN THE WAKE OF COVID-19 PANDEMIC: SPECIAL REFERENCE TO THE STC SAUDI ARABIA" (PDF). Globus An International Journal of Management & IT. Retrieved 5 January 2023.
  6. ^ "Saudi Telecom raises $4B in offer". CNN. 7 January 2003. Retrieved 5 January 2023.
  7. ^ "الموافقة على قيام شركة الاتصالات السعودية بشراء حصص الشركاء في الشركة العربية لخدمات الإنترنت والاتصالات (أول نت)". www.cst.gov.sa. Retrieved 14 April 2023.
  8. ^ "Mulla to head telecom authority". Arab News. 6 June 2001. Retrieved 1 September 2012.
  9. ^ "اقتصادي / الاتصالات السعودية تدشن شركة " STC Pay " للمدفوعات الرقمية وكالة الأنباء السعودية". www.spa.gov.sa. Retrieved 14 April 2023.
  10. ^ الوطن, الرياض (19 December 2019). "الاتصالات السعودية تطلق سمتها التجارية الجديدة". Watanksa (in Arabic). Retrieved 14 April 2023.
  11. ^ "وزير المالية ومحافظ البنك المركزي السعودي يشكران القيادة بمناسبة موافقة مجلس الوزراء على الترخيص لبنكين محليين رقميين". www.sama.gov.sa. Retrieved 14 April 2023.
  12. ^ "stc Accelerates its Efforts to Replace its 3G Network with 5G". Tech Africa News. 28 October 2021. Retrieved 5 January 2023.
  13. ^ a b "Saudi's PIF raises $3.2bn from stc share sale". Archived from the original on 15 December 2021.
  14. ^ a b Bloomberg (12 December 2021). "Saudi wealth fund PIF raises $3.2bn from sale of STC stake". Gulf Business. Retrieved 20 January 2022.
  15. ^ "STC tower subsidiary enters Pakistan through acquisition". www.capacitymedia.com. 10 February 2022. Retrieved 10 February 2022.
  16. ^ "stc unit enters Pakistani market with AWAL Telecom acquisition". Arab News. 9 February 2022. Retrieved 18 July 2023.
  17. ^ Alvin R Cabral (25 May 2022). "STC Group and Alibaba to set up $238m Saudi cloud services venture". The National News. Retrieved 14 January 2023.
  18. ^ "stc launches Center3 for Kingdom's digital economy". Arab News. 5 October 2022. Retrieved 14 January 2023.
  19. ^ Natalie Bannerman (21 October 2022). "stc and Huawei completes DWDM 1.2T/channel trial". Capacity Media. Retrieved 14 January 2023.
  20. ^ AKIM BENAMARA (13 February 2023). "stc and Go Telecom to Enable Advanced IoT Services to Empower Individual and Corporate Sectors". Tech Africa News. Retrieved 5 January 2023.
  21. ^ "stc group collaborates with Microsoft to unlock the potential of innovation in corporate digital transformation". Microsoft. 2 November 2023. Retrieved 7 January 2023.
  22. ^ "stc digitally powers F1 Saudi Arabian Grand Prix 2023". Arab News. 20 March 2023. Retrieved 7 January 2023.
  23. ^ "STC Group acquires a €2.1 billion stake in Telefónica | Total Telecom". totaltele.com. Retrieved 6 September 2023.
  24. ^ Staff, TelecomTV (6 September 2023). "What's up with… Telefónica & STC, Nexfibre & Upp, Arm's IPO". TelecomTV. Retrieved 6 September 2023.
  25. ^ "Entrepreneurs bag over $186m through stc's InspireU accelerator program".
  26. ^ "Saudi Telecom Co commits extra $300 million to VC firm STV".
  27. ^ "stc launching 3 Mega Data Centers across Saudi Arabia". Telecom Review. 30 December 2020. Retrieved 7 January 2023.
  28. ^ "To Invest in 9 Advanced Technological Areas, stc Launches Venture Capital Fund". Saudi Press Agency. 8 February 2023. Retrieved 7 January 2023.
  29. ^ "stc Group Invests more than SAR 3.5 billion in Social, Educational and Health Initiatives". Saudi Press Agency. 4 May 2023. Retrieved 7 January 2023.
  30. ^ "STC Group invests more than $933.2mln in social, educational and health initiatives".
  31. ^ STC website. "STC What's on! Business Fifth Edition" (PDF). www.stc.com.sa. Archived from the original (PDF) on 8 August 2014. Retrieved 4 August 2014.
  32. ^ a b Dan Murphy (23 November 2020). "Saudi Arabia's STC Pay eyes rapid Gulf expansion after billion-dollar valuation". CNBC. Retrieved 14 January 2023.
  33. ^ "Chairman's Message". www.stc.com.sa. Retrieved 18 July 2023.
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