Established in 1998, Saudi Telecom Company offers several products and services in the telecommunication sector. The main products include telecommunication services, enterprise digital solutions, internet services, computer networks, cybersecurity, and other digital solutions. Saudi Telecom Company (STC) serves in the kingdom of Saudi Arabia, Bahrain, and Kuwait. STC’s headquarters are based in Riyadh, Saudi Arabia. The company currently has approximately 17,000 employees and is led by Olayan M. Alwetaid. Let’s know more about this company which once had a monopoly on mobile phones services and fixed telephone services.
Past Events of Saudi Telecom Company
When the company was born in 1998, the company had a monopoly on various businesses in the areas it served. But, eventually, other companies came up and the competition became tough in the telecommunication and digital sector. The company generates the majority portion of its revenue from the subscriber service. Out of the total subscribers of STC, 81 percent are mobile service subscribers. And, these subscribers contribute to 73 percent of the total company’s revenue. In the past two decades, India and the middle east countries have witnessed how rapidly mobile phone users have increased in these nations. STC grabbed this market initially and successfully generated revenue in billions.
By the end of 2007, the total subscribers for the services of STC summed up to 17.3 million. 19 percent of the total company’s subscribers were the fixed-line subscribers who contributed to generating 27 percent of the total annual revenue. This number accounted for 61 percent of the total mobile phone users in Saudi Arabia in 2007. With its business flourishing in Saudi Arabia, the company decided to expand beyond its borders.
The first taken by STC towards expanding internationally was the 25 percent acquisition of the Axis Group- Malaysia. The company is known for working in the telecommunication sector and it was worth $3.04 billion. It was a very strategic move by STC as the Axis Group operated many mobile phone networks in Malaysia and Indonesia. Along with the acquisition of the Axis Group partly, STC acquired 51 percent of the Ntarend Co Pte (a subsidiary of the Axis Group) and also grabbed 26 percent of the third mobile license in Kuwait. After these three details, the net worth of STC became $924.6 million.
Strategic Moves by STC
With the acquisition of a part of Axis Group and its subsidiary, the company also became a 35 percent shareholder at Oger Telecom in 2008. When STC acquired some stakes at Oger Telecom, it ran a huge network of businesses which also included investment. The company apart from Saudi Arabia also has business in the Persian Gulf, Africa, and Asia. So, becoming a stakeholder in this company helped STC to diversify geographically. After acquiring stakes in Oger Telecom, STC also partly bought many local and regional companies. This helped STC stay in the business after it lost the monopoly on two of its services in the primary areas. STC is also entering the field of satellite and internet via companies excelling in these fields in the Middle East. In March 2021, STC introduced its largest digital operations centers not only in its homeland but also in North Africa. This data center is established as a part of its cybersecurity business.
CEO – Olayan Alwetaid
Olayan Alwetaid has been appointed the CEO of STC in March 2021. Before becoming the CEO, he led the Consumer Business Unit of STC focusing on digital and other non-core services. Olayan also served as the CEO of STC Bahrain previously in his career. He has more than 20 years of rich experience in the telecom, media, and technology sector. Olayan graduated from King Fahad University of Petroleum and Minerals with an Electrical Engineering degree.
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more