Saudi telecom regulator approves Zain KSA, Mobily to merge towers under new entity

Logos of Zain KSA and Mobily

Mobile Telecommunications Company Saudi Arabia (Zain KSA) received a letter from the Communications and Information Technology Commission’s (CITC) board on March 23, 2021, giving its in-principle approval on the joint application from Zain KSA, Etihad Etisalat Co. (Mobily), Raidah Investment Co. (AlRaidah) and IHS KSA Ltd. (IHS).

The approval allows to merge and unify these towers under Towers Company, a Saudi-registered commercial entity, to obtain a license for providing infrastructure wholesale services (category A towers and masts), the telco said in a bourse filing today, March 24, 2021.

Furthermore, the letter states that Mobily, Zain KSA and AlRaidah must collectively own the majority of the new company’s shares, while IHS must hold a minority stake.

The new entity must fulfill the regulatory requirements related to the licensing and acquisition of the towers of Mobily and Zain KSA in preparation for obtaining the final approval from CITC.

In July 2020, Zain KSA signed a non-binding memorandum of understanding (MoU) with Mobily to form a joint committee and invite offers for telecom towers, Argaam reported.

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