Saudi Arabia Telecommunication Services Market is anticipated to grow at
a rapid pace during the forecast period, 2024-2028. The growth of the market is attributed to the
growing penetration and adoptions of the mobiles along with the digital
transformations across the country. With a total of 41.2 million mobile users
in Saudi Arabia, mobile penetration has reached 115% in 2022 with the
proliferation of the telecom sector in the country.
With the rise in the telecom sector, the average annual
investments by the government and public-private partnerships for implementation
of digital fibre and 5G services across the country is around USD 4 billion.
The value of the ICT sector is rising along with the digital revolution in
industries. By the end of 2023, a
50% increase in the IT sector's size and a 50% increase in Saudi Arabia's IT
workforce are the two objectives of the Ministry of Communications and
Information Technology's ICT plan. Additionally, it seeks to draw in outside
capital and support women's emancipation and increased participation in the
industry.
Growing demand for IoT,
linked devices, and M2M will drive Saudi Arabia's 5G sales over the next ten
years as significant expenditures fueled by Vision 2030 plan continue to be prominent.
To effectively communicate
with their customers and build strong relationships with them, businesses have
found telecommunications services to be of significant value.
Telecommunications services are advantageous for employees as well since they
make data transmission simple, boost productivity, and offer flexibility. The Saudi
Arabia Telecommunications Market has been undergoing constant change as a
result of the acceptance and integration of cutting-edge communication
technologies including 5G, IoT, NB-IoT, and many more.
Telecommunication
facilitate transfer of different types of data, including speech, text, audio,
and video, at anytime and anywhere in the world over a wired or wireless
channel. The telecommunications sector has grown into a thriving industry with
a significant influence on social and economic development of Saudi Arabia. The
telecoms sector is growing its offerings and geographic reach while securing
its position in peoples' daily lives. The telecom sector includes companies
that offer phone, telecommunications, and internet services.
Furthermore,
the market for telecommunication services is expanding due to the rise in
mobile data traffic, the need for fibre deployment for connectivity, and the 5G
network. Government regulations on network radiation are, however, impeding the
expansion of the communications services industry. On the other hand, the
development of the internet of things (IoT) is anticipated to present lucrative
potential for growth in the future of the telecommunication services industry.
Advancement Of Fiber-Based Networks And Fixed
Broadband Services
The National Broadband Network of Saudi Arabia is a
key platform for the Kingdom of Saudi Arabia's Vision 2030. The federal
government plans to spend a lot of money and implement strict regulations to
build a vast fibre network. Numerous collaborations and advancements in fibre
and broadband networks are strengthening the country's entire telecom sector. For
instance, in April 2022, an infrastructure services company, Technical Links
Services (TLS) purchased all the fibre-optics network assets of Integrated
Telecom Company (Salam).
TLS acquired the complete network in accordance with a
three-phase deployment strategy, with approval from the Saudi Communications
and Information Technology Commission. According to the strategy, the transfer
of assets between Salam and TLS will take place through the end of 2024. Salam
will rent parts of the infrastructure for the fibre-optic network from TLS in
accordance with its specifications. After the transaction, TLS will become one
of the top telecom service providers for the Kingdom's fibre-optic network.
In October 2022, the Saudi telecom STC announced a new
subsidiary dubbed Center 3 that connects Asia, Africa, and Europe through a
regional media centre to accelerate the development of the Kingdom's digital
economy. Through an undersea fibre-optic network, the Center 3 network of
carrier-neutral data centres provides global telecommunications connectivity.
In June 2022, Saudi Arabia-based STC Group’s Mena Hub
which is a premier digital hub, partnered with Greek telco TSSA. The
partnership is working towards building the Med Data Corridor (EMC) undersea
and land fibre optic data cables to link Europe with Asia. The aim is to offer
ever expanding global connectivity and data centre capacity to the markets of
Asia, Europe, and the rest of the world through Saudi Arabia. With rising
digital connectivity, STC is going to expand only by owning, combining,
integrating, and coordinating every aspect of the digital world through this
project. The company can offer the end-to-end solutions with high latency,
effectiveness and efficiency that caters the requirements of the businesses and
customer.
Additionally, the country is enhancing its ultra-rapid
broadband internet offerings. The Kingdom intends to have 3.5 million homes
connected to ultra-rapid Fibre-to-the-Home (FTTH) broadband networks. The Saudi
Ministry of Communications and Information Technology recently released
policies to promote the implementation of FTTH ultra-fast broadband networks as
part of the 2030 Vision's National Transformation Program. The government
announced numerous subsidies and investments to construct fibre in underserved
areas for telecom providers across the country.
Introduction of Mobile virtual network operator
Saudi
Arabia Telecom Market experiencing rapid growth from last 5 years. Since then,
with the aid of foreign investment and government support, the nation has
established a highly competitive telecom services market. The majority of the market is
currently dominated by three businesses with unified licenses: Mobile
Telecommunication Company of Saudi Arabia, Etihad Etisalat Company, and Saudi
Telecom Company. (STC). There are other fixed-line service providers, mobile
virtual network operators, and internet service providers (ISPs) in the market.
The government has played a significant role in enabling the development of an
open, competitive market that maintains pace with cutting-edge infrastructure
and technologies.
Saudi
Arabia is one of the few early adopters of 5G technology in 2019.
Due
to strong government support, the country might continue to have the top market
position in the area in the near future. 5G provides telecom firms with
significant development possibilities in terms of service diversity. Initial
trends in developed markets suggest that ARPU will rise. The development of 5G
coverage and a smooth transition of their customer base to the new standard are
major expenditures that telecom firms must undertake if they are to capitalize
on these opportunities. The
Communications and Information Technology Commission (CITC) and the Ministry of
Communications and Information Technology(MCIT) has consistently encouraged the development of
the sector's infrastructure and competition. The policy of the authorities is
reflected in decisions like issuing consolidated licenses, reducing call
termination charges, and resolving royalty payments in exchange for
infrastructure investments by operators.
The
Saudi Arabian Communications and Information Technology Commission (CITC)
announced the launch of two new MVNOs in February 2022, a year after granting
them operational licenses. Future Networks Communications and Integrated
Telecom Mobile Company (Salam Mobile) (Red Bull Mobile) are the companies in
question. In
the Saudi MVNO sector, the newcomers will join Virgin Mobile Saudi Arabia and
Jawraa Group. (Lebara Mobile Saudi Arabia).
Expanding
the telecom services sector is essential for converting the Kingdom into a
digital society, according to Saudi Vision 2030. Due to the increased
competition by the entry of two new businesses, both the product selection and
the customer experience will rise.
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Market Segmentation
The Saudi Arabia Telecommunication
Services Market is segmented based on type, transmission, end use and region.
Based on type, the market is further bifurcated into Mobile, Fixed-line, and Broadband.
Based on transmission, the market is segmented into wireless and wireline.
Based on end use, the market is divided into
banking, financial services, and insurance (BFSI), healthcare, retail, IT,
ecommerce, and others. Based on region, the market is bifurcated into Northern
& Central Region, Western Region, Eastern Region and Southern Region.
Market Players
Major
market players in the Saudi Arabia Telecommunication
Services Market are Saudi Telecom Company (STC), Integrated Telecom Company
(SALAM), Etihad Atheeb Telecommunications Company (GO), Zain KSA, Etihad
Etisalat (Mobily), Virgin Mobile Saudi Consortium LLC, The Arab Satellite
Communications Organization (Arabsat), Industrial Technology Co. Ltd (ITC), Gulf
DTH FZ LLC.
Recent Development
According to Abdullah Alswaha, Saudi Arabia's Minister of Communications and Information Technology, the investments are being driven by a USD 2.1 billion commit from Microsoft, which will build a super-scaler cloud in Saudi Arabia. He made the announcement at the Leap 2023 conference in Riyadh.
Saudi Telecom Company stated in October 2022 that it has invested USD 1 billion in Center3 to assist the growth of Saudi Arabia's digital economy. The new business is held by the digital infrastructure assets of the STC group, including data centers, underwater cables, and internet exchange points (IXPs). The Center3 launch aims to strengthen the digital infrastructure and establish Saudi Arabia as a regional digital hub. The launch was done in line with STC's goal of achieving digital empowerment and expanding the company's presence.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 –
2022
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028
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Report coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments covered
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By Type
By Transmission
By End Use
By Region
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Regional scope
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Northern
& Central Region, Western Region,
Eastern Region, Southern Region
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Key companies profiled
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Saudi Telecom Company (STC), Integrated Telecom Company
(SALAM), Etihad Atheeb Telecommunications Company (GO), Zain KSA, Etihad
Etisalat (Mobily), Virgin Mobile Saudi Consortium LLC, The Arab Satellite
Communications Organization (Arabsat), Industrial Technology Co. Ltd (ITC),
Gulf DTH FZ LLC.
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Customization scope
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10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
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Pricing and purchase options
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Avail customized purchase options to meet your exact research
needs. Explore purchase options
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Delivery Format
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PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
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Report Scope:
In this report, the Saudi Arabia Telecommunication
Services Market has
been segmented into following categories, in addition to the industry trends
which have also been detailed below:
·
Saudi Arabia Telecommunication Services Market, By Type:
o
Mobile
o
Fixed line
o
Broadband
·
Saudi Arabia Telecommunication Services Market, By Transmission:
o Wireless
o Wireline
·
Saudi Arabia Telecommunication Services Market, By End
Use:
o
Banking, Financial Services, and Insurance (BFSI)
o
Healthcare
o
Retail
o
IT
o
Ecommerce
o
Others
·
Saudi Arabia Telecommunication Services Market, By Region:
o
Eastern Region
o
Northern & Central Region
o
Western Region
o
Southern Region
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Saudi Arabia Telecommunication Services Market.
Available Customizations:
With the given market data, Tech Sci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Saudi Arabia Telecommunication Services Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected].