Saudi telecom companies award contracts worth $500 million to Motorola

March 20, 2008

Two Saudi telecom companies, Atheeb and Zain in Saudi Arabia, have awarded contracts worth a combined $500 million to US communications giant Motorola, according to press releases issued today. 

The Etihad Atheeb Telecommunications Co. (Atheeb) awarded a $165 million broadband infrastructure contract to Motorola for delivery of a fully integrated end-to-end nationwide WiMAX 802.16e solution featuring smart antenna technology. The contract also includes end-to-end delivery of network planning, installation, optimization and support services.

Once completed, the new infrastructure will enable Atheeb to offer broadband services in customers across the Kingdom, including areas that are currently underserved.

Atheeb was formed as a new provider of fixed telecom services by a consortium consisting of the Batelco, Atheeb Group, Al Nahla and Traco companies. It was licensed in 2007.

Mobile Telecommunications Company Saudi Arabia (Zain in Saudi Arabia) signed a $335 million turnkey contract with Motorola to deploy and manage a 2G/3G mobile communications network in Saudi Arabia. The network will allow Zain to offer Saudi customers high-speed mobile Internet access and a range of mobile multimedia applications and services.

Zain, a Saudi joint stock company, was formed to operate a mobile telecommunications business in Saudi Arabia under the terms of the third mobile operating license awarded in July 2007. Zain is expected to launch its services in the first half of 2008.

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