Friday 10 July 2020

Licence extension will save $115m annually: Zain Saudi

RIYADH, October 5, 2016

Telecom operator Zain Saudi Arabia announced that it received a 15-year extension to its licence, will save SR433 million ($115 million) per year because the amortisation charge associated with the licence will be lower.

The unified telecommunication licence that allows the company to provide all telecommunication services, and enables it to coordinate with the Ministry of Finance to discuss the alternatives regarding the amounts due to the government.

Hassan Kabbani, chief executive officer, of Zain Saudi Arabia said: "I would like to join our Chairman in thanking the government for their support. This is a landmark decision that will accelerate the transformation of the company."

The company’s licence has been extended from an original 25 years to 40 years, ending in 2047. During the 15 year extension period the company will pay an annual fee equivalent to 5 per cent of net profits at that time.

Zain Saudi was granted a unified licence, which means that the company can offer the full range of telecommunications services, including fixed voice and data services. – TradeArabia News Service

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