stc, AST SpaceMobile ink satellite services partnership

Signing the agreement

Saudi Telecom Co. (stc) signed today, Oct. 29, a strategic partnership agreement with AST & Science, LLC (AST SpaceMobile) as part of its efforts to expand connectivity and provide comprehensive coverage across areas not served by terrestrial networks.

In a statement to Tadawul, stc said the 10-year agreement includes providing satellite-based communication services using direct-to-device (D2D) technology.

The company said the contract’s value may exceed 9% of stc’s 2024 audited revenue, with the final amount tied to operational volumes and based on a revenue-sharing model from actual service usage.

stc’s 2024 revenue stood at SAR 75.9 billion, suggesting the contract’s value could reach nearly SAR 7 billion, according to Argaam’s data.

The partnership establishes a commercial collaboration to deliver satellite communication services across Saudi Arabia and several countries in the Middle East and Africa, leveraging AST SpaceMobile’s technology that enables connectivity directly to unmodified smartphones.

This technology allows for communication in areas beyond terrestrial network coverage, enhancing customer experience and supporting digital inclusion.

stc expects the partnership to have a positive financial impact, with revenues recognized in its consolidated financial statements over the contract period based on operational volumes and revenue-sharing ratios.

The company added that the partnership will cover the entire Saudi market, with stc acting as the main operator providing services directly to individual customers and, on a wholesale basis, to major network and virtual network operators.

Under the agreement, AST SpaceMobile granted stc exclusive rights in Libya, Syria, Lebanon, Djibouti, Tunisia, and Sudan, and preferential commercial terms in Kuwait, Oman, Yemen, Bahrain, Jordan, Iraq, Algeria, Morocco, and Egypt (upon service availability), ensuring parity with the best terms offered to any other telecom operator.