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Zain KSA pays SAR 254m for additional spectrum

Zain KSA pays SAR 254m for additional spectrum
The financial impact of the transaction will appear sstarting from 1 January 2018
ZAIN KSA
7030
0.14% 13.82 0.02

Riyadh – Mubasher: The Saudi Mobile Telecommunications Company (Zain) on Thursday paid SAR 253.8 million as the first tranche of its operating cash inflows to acquire additional spectrum.

The payment represents 30% of the total amount which is SAR 844 million.

The telecommunications provider will pay the rest of the amount as annual tranches of 7% over ten years, according to a statement on Thursday to the Saudi Stock Exchange (Tadawul).

The new spectrum will raise Zain’s Long-Term Evolution (LTE) network capacity by 50% to allow customers to increase their downloading speed by as much as 80%, Zain revealed.

It further noted that the new spectrum will reduce network congestion without the need to change the company’s existing infrastructure.

The service quality will improve without a need to change any settings for wireless phones, tablets, or routers, Zain added.

The financial impact of the transaction will appear starting from 1 January 2018.

The stock rose 1.03%, closing at SAR 8.86 on Thursday.