Saudi Networks in Tower Asset Merger Talks
Saudi Arabia's three dominant mobile networks are reported to be in talks which would see them spin off their tower assets into a single holding company. Saudi Telecom Company (STC), Mobily and Zain are said to be in the talks, the local financial newspaper, Maal reported. It is not yet decided if the tower holding company would be owned by the three mobile networks, or if they plan to sell off their eventual stakes, leading to the creation of a stand-alone entity. Merging the tower assets and removing overlapping areas of coverage could reduce their network operating costs by around 70 percent, the local newspaper reported. Beleaguered mobile network, Mobily has already announced that it would like to sell its towers, in a deal that could raise around USD1.5 billion.