Saudi telecom company Mobily has bought a spectrum license for $663 million to improve its 5G services

BY THE ARAB TODAY Nov 13, 2024

Saudi telecom company Mobily has bought a spectrum license for $663 million to improve its 5G services
Saudi telecom company Mobily has bought a spectrum license for $663 million to improve its 5G services

Saudi telecom company Mobily has bought a spectrum license for $663 million to improve its 5G services

Saudi Arabia’s Etihad Etisalat (Mobily) announced on Wednesday that it has bought a 15-year license for $663 million (SAR 2.5 billion) to improve its 5G network, especially in rural areas and crowded cities.

New Spectrum

The Saudi telecom company, which is 28% owned by the UAE’s e&, has a new license that lets it use 120 megahertz (MHz) of spectrum in the 700 MHz and 3800 MHz frequency bands.

The company won this license in a recent auction held by the Communications, Space & Technology Commission (CST). This supports the company’s goal to improve its network and boost service quality.

The company says it will start using the spectrum on January 1, 2025.

Mobily’s license includes 20 MHz in the 700 MHz band and 100 MHz in the 3800 MHz band. The 700 MHz band, which is widely supported by many devices, will help Mobily provide wider coverage with good service quality.

The 3800 MHz band, which can handle large amounts of data, will help Mobily meet the increasing demand for high-speed connections from both regular and business customers.

With this new license, Mobily now holds a total of 440 MHz in different frequency bands, strengthening its mobile network.

Financial Performance

In the first nine months of 2024, Mobily’s revenue increased by 8.5%, reaching $3.6 billion (SAR 13.5 billion), up from $3.3 billion (SAR 12.5 billion) a year earlier, thanks to strong growth in its business segment.

The company’s net profit rose by 43.1%, reaching $567 million (SAR 2.1 billion), compared to $399.3 million (SAR 1.5 billion) last year, helped by a $37.3 million (SAR 140 million) tax adjustment.

In the third quarter, Mobily’s revenue grew by 9.3% year-on-year to $1.2 billion (SAR 4.5 billion), with strong growth in all income sources. Net profit for the quarter rose by 58.2% to $220.7 million (SAR 829 million) from $139.5 million (SAR 524 million) last year.

Market cap

Mobily’s market value is $10.7 billion (or SAR 40.2 billion) as of November 13, 2024, based on Tadawul’s data.

Published: 13th November 2024

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