Saudi Arabia Telecommunication Services Market By Type (Mobile, Fixed-line, Broadband), By Transmission (Wireless, Wireline), By End Use (Banking, Financial Services, and Insurance (BFSI), Healthcare, Retail, IT, Ecommerce, Others), Competition, Forecast

Saudi Arabia Telecommunication Services Market By Type (Mobile, Fixed-line, Broadband), By Transmission (Wireless, Wireline), By End Use (Banking, Financial Services, and Insurance (BFSI), Healthcare, Retail, IT, Ecommerce, Others), Competition, Forecast and Opportunities, 2028

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.

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.

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:
• Mobile
• Fixed line
• Broadband
• Saudi Arabia Telecommunication Services Market, By Transmission:
• Wireless
• Wireline
• Saudi Arabia Telecommunication Services Market, By End Use:
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• Retail
• IT
• Ecommerce
• Others
• Saudi Arabia Telecommunication Services Market, By Region:
• Eastern Region
• Northern & Central Region
• Western Region
• Southern Region

Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Telecommunication Services Market.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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