Zain KSA acquires 30 MHz of spectrum for SAR 624M

Logo of Mobile Telecommunication Company Saudi Arabia (Zain KSA) 

Mobile Telecommunication Company Saudi Arabia (Zain KSA) acquired on Nov. 11 a license to use 30 MHz of the 600 MHz frequency band using frequency division multiplexing (FDD) with a bandwidth of (2 x 15) MHz, for 15 years, at a total value of SAR 624 million.

The license was won at the spectrum auction held by the Communications, Space, and Technology Commission (CST).

In a statement on Tadawul, the telecom operator said that the amount will be paid in equal annual installments over 13 years starting from July 1, 2026 (SAR 48 million annually).

These frequencies will be available for use starting from Jan. 1, 2025, as the 600 MHz frequency spectrum will be used to provide 5G services.

Zain KSA’s total frequency spectrum currently includes frequencies in the 800, 900, 1800, 2100, 2600, and 3500 MHz frequency bands, in addition to 600 MHz.

Zain KSA pointed out that this frequency band is featured by the capacity of the geographical coverage area and a higher capacity for coverage inside buildings, which enhances network performance and improves user experience.

The frequency spectrum is one of the most important assets for mobile network operators, it noted.

Since the Kingdom is witnessing higher demand for high-speed data services, allocating more spectrums enables mobile service providers to deliver better services, enhance subscriber experience, and enable new users to support emerging technologies in the individual and business sectors, such as 5G-SA, IoT, and private network enablement. This, in turn, aligns with the Kingdom’s aspirations to develop the digital economy and enable the Fourth Industrial Revolution.

Moreover, the telco explained that the total frequency allocations in the Saudi market will significantly improve capacity, enrich the experience of data users, and allow the deployment of future network technologies, including the 5G, at a cost lower than capital expenditures.

CST announced on Nov. 11 the winners of the Spectrum Auction in the frequency bands (600, 700, 3800) MHz, in which stc, Etihad Etisalat Co. (Mobily) and Zain KSA participated, Argaam reported.

The auction will contribute over SAR 25 billion to the Kingdom’s GDP by 2030. It will also raise the total licensed frequencies for mobile telecommunication networks from 1,110 MHz to 1,400 MHz by 27%.