Riyadh – Mubasher: Arabian Internet and Communications Services Company (solutions) has signed a contract valued at SAR 484.78 million with Saudi Telecom Company (stc), a related party, for the development and expansion of communications and internet networks for stc.
The agreement represents a significant technical collaboration between the two entities, with the project slated to be executed over a 36-month duration starting from the signing date on 30 May 2026, according to a bourse disclosure.
Under the defined scope of work, solutions will be responsible for the construction and development of stc’s internal internet and communications networks. This includes a comprehensive expansion of existing internal networks and the addition of new network points to increase connectivity density.
Furthermore, the project encompasses the expansion of internet service projects specifically tailored to serve various business units within stc.
From a financial perspective, solutions indicated that the impact of this contract will begin to manifest in its financial statements starting from the third quarter (Q3) of 2026. Given the three-year execution period, the financial benefits are expected to be recognized as the project progresses through its various phases of implementation.
This agreement is categorized as a related party transaction, as stc Group is the majority shareholder in solutions with a 79% ownership stake. The partnership is designed to modernize and scale the internal infrastructure that supports the Kingdom’s primary telecommunications provider.
The technical requirements of the contract are extensive, involving the installation of data switching devices to meet the rigorous demands of the corporate and enterprise sectors.
A primary objective of the infrastructure upgrade is to enhance both internal and international network capacities. This expansion is critical to accommodate the anticipated growth in 5G services and to ensure the network can handle increasing data traffic volumes effectively.
In addition to capacity upgrades, the project focuses on network sustainability and modernization.
solutions will replace legacy hardware that is no longer supported by vendors, thereby mitigating risks associated with outdated technology.
The scope also includes increasing the infrastructure capacity for virtual broadband devices and establishing internal network frameworks for several new data centers located in strategic regional hubs, including Khamis Mushait, Dammam, the Qassim region, and North Riyadh.
The delivery of these services will involve the end-to-end supply, installation, integration, and testing of all necessary hardware, equipment, software, and systems.
In Q1-26 which ended on 31 March, solutions generated net profits worth SAR 370 million and revenue standing at SAR 3 billion.
