Saudi Telecom Company
TypePublic
Tadawul: 7010
ISINSA0007879543 Edit this on Wikidata
IndustryTelecommunications
Founded21 April 1998 (1998-04-21)
Headquarters
Riyadh
,
Saudi Arabia
Area served
  • Saudi Arabia
  • Bahrain
  • Kuwait
Key people
Mohammed bin Khalid Abdullah
(Chairman)
Products
Revenue$15.7 billion (2020)[1]
$3.39 billion (2020)
$2.93 billion (2020)
Total assets$32.53 billion (2020)
Number of employees
17,000
Subsidiaries
  • stc Bahrain
  • stc Kuwait
  • channels by stc
  • solutions by stc
  • specialized by stc
  • ccc by stc
  • sirar by stc
  • AQALAT
  • intigral
ASN
  • 39386
Websitewww.stc.com.sa

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.[2] 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 April 21, 1998 and began operations of telecommunications services throughout Saudi Arabia on May 2, 1998 as a wholly owned entity of the government of Saudi Arabia.[3][4] 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.[5] On April 11, 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.[6]

The Saudi Digital Payments Company (stc bank) launched in 2017, with official work beginning in 2018.[7]

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.[8] In June 2021, the Central Bank of Saudi Arabia approved the conversion of the Saudi Digital Payments Company (STC Pay) into a digital bank.[9] stc replaced all its 3G networks with 5G in October 2021.[10]

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.[11][12]

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.[13][14]

In collaboration with Alibaba Group, the Alibaba Cloud was launched in May 2022.[15] Center3, a new digital infrastructure assets company owned by stc Group, was launched in October 2022.[16] stc Group also completed the first global 1.2T/channel trial in its DWDM optical network.[17]

In February 2023, GO Telecom partnered with the company to provide IoT services throughout stc Group’s network.[18] Microsoft and stc also expanded their partnership that same month to further advance digitalization across Saudi Arabia.[19] 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.[20] stc’s subsidiary TAWAL officially began operations in Europe in August of that year.[2]

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.[21][22]

Investment funds

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.[11][12]

In October 2021, stc Group launched 3 data centers in Riyadh, Jeddah, and Al-Madina with a $SAR 1 billion investment.[23]

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.[24]

As of May 2023, stc Group has invested over SAR 3.5 billion in social, educational and health initiatives.[25]

Operations

stc Group services are divided into four broad categories:

stc Group also offers two content platforms:

  • stc Play - Gaming and esports platform that allows users to participate in tournaments and access game exporters
  • stc TV - Entertainment streaming service

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.[27]

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.[28]

STC subsidiaries

Subsidiaries
NameCountry of incorporationShareholding percentage
Arabian Internet and Communications Services Company Limited (“Solutions by stc”)Saudi Arabia79%
Telecom Commercial Investment CompanyLimited (“TCIC”)Saudi Arabia100%
Aqalat Company Limited (“Aqalat”)Saudi Arabia100%
Saudi Telecom Specialized Company (“Specialized by stc”)Saudi Arabia100%
Sapphire Company Limited (“Sapphire”)Saudi Arabia100%
Saudi Telecom Channels Company (Channels by stc)Saudi Arabia100%
Telecommunications Towers Company Ltd.(“TAWAL”)Saudi Arabia
Saudi Digital Payments Company (“stc Pay”)Saudi Arabia100%
Smart Zone Real Estate CompanySaudi Arabia100%
sirar by stcSaudi Arabia100%
stc Bahrain BSC (C) (“stc Bahrain")Bahrain100%
Kuwait Telecommunications Company (“stc Kuwait”)Kuwait51.8%
stc Asia Telecom Holdings Ltd (“stc Asia”)British Virgin Islands100%
ccc by stcSaudi Arabia49%
IntigralSaudi Arabia100%
Digital Centers for Data and Telecommunications Company (Center3)Saudi Arabia100%
Internet of Things Information Technology Company (IoT squared)Saudi Arabia50%

References

  1. ↑ "STC - STC's Net Income for Q4 2018 compared to the comparable quarter last year and the 3rd quarter this year increased by 22.0% & 17.9% (Respectively)". Archived from the original on 20 December 2019. Retrieved 20 December 2019.
  2. 1 2 "stc group officially begins operation in Europe". Saudi Gazette. 27 August 2023. Retrieved 5 January 2023.
  3. ↑ "الصفحة الرئيسية". www.stc.com.sa. Retrieved 14 April 2023.
  4. ↑ 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.
  5. ↑ "Saudi Telecom raises $4B in offer". CNN. 7 January 2003. Retrieved 5 January 2023.
  6. ↑ "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.
  7. ↑ "اقتصادي / الاتصالات السعودية تدشن شركة " STC Pay " للمدفوعات الرقمية وكالة الأنباء السعودية". www.spa.gov.sa. Retrieved 14 April 2023.
  8. ↑ الوطن, الرياض (19 December 2019). "الاتصالات السعودية تطلق سمتها التجارية الجديدة". Watanksa (in Arabic). Retrieved 14 April 2023.
  9. ↑ "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.
  10. ↑ "stc Accelerates its Efforts to Replace its 3G Network with 5G". Tech Africa News. 28 October 2021. Retrieved 5 January 2023.
  11. 1 2 "Saudi's PIF raises $3.2bn from stc share sale". Archived from the original on 15 December 2021.
  12. 1 2 Bloomberg (12 December 2021). "Saudi wealth fund PIF raises $3.2bn from sale of STC stake". Gulf Business. Retrieved 20 January 2022.
  13. ↑ "STC tower subsidiary enters Pakistan through acquisition". www.capacitymedia.com. 10 February 2022. Retrieved 10 February 2022.
  14. ↑ "stc unit enters Pakistani market with AWAL Telecom acquisition". Arab News. 9 February 2022. Retrieved 18 July 2023.
  15. ↑ 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.
  16. ↑ "stc launches Center3 for Kingdom's digital economy". Arab News. 5 October 2022. Retrieved 14 January 2023.
  17. ↑ Natalie Bannerman (21 October 2022). "stc and Huawei completes DWDM 1.2T/channel trial". Capacity Media. Retrieved 14 January 2023.
  18. ↑ 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.
  19. ↑ "stc group collaborates with Microsoft to unlock the potential of innovation in corporate digital transformation". Microsoft. 2 November 2023. Retrieved 7 January 2023.
  20. ↑ "stc digitally powers F1 Saudi Arabian Grand Prix 2023". Arab News. 20 March 2023. Retrieved 7 January 2023.
  21. ↑ "STC Group acquires a €2.1 billion stake in Telefónica | Total Telecom". totaltele.com. Retrieved 6 September 2023.
  22. ↑ Staff, TelecomTV (6 September 2023). "What's up with… Telefónica & STC, Nexfibre & Upp, Arm's IPO". TelecomTV. Retrieved 6 September 2023.
  23. ↑ "stc launching 3 Mega Data Centers across Saudi Arabia". Telecom Review. 30 December 2020. Retrieved 7 January 2023.
  24. ↑ "To Invest in 9 Advanced Technological Areas, stc Launches Venture Capital Fund". Saudi Press Agency. 8 February 2023. Retrieved 7 January 2023.
  25. ↑ "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.
  26. ↑ 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.
  27. 1 2 Dan Murphy (23 November 2020). "Saudi Arabia's STC Pay eyes rapid Gulf expansion after billion-dollar valuation". CNBC. Retrieved 14 January 2023.
  28. ↑ "Chairman's Message". www.stc.com.sa. Retrieved 18 July 2023.
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