Saudi Telecom Business Model Canvas
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Telecom Business Model Canvas: Network Leadership, Diversified Services & Strategic Growth
Explore Saudi Telecom’s Business Model Canvas to see how it combines network leadership, diversified services, and strategic partnerships to drive growth and customer loyalty. This concise snapshot highlights key revenue streams, cost drivers, and competitive advantages. Purchase the full Canvas for a detailed, editable breakdown—ideal for investors, strategists, and consultants.
Partnerships
Global network vendors (RAN/core)
In 2024 Saudi Telecom’s partnerships with leading RAN and core vendors enabled rapid 5G and 5G-Advanced upgrades and coordinated core refreshes, backed by joint roadmaps to secure performance and energy efficiency. Co-funded pilots de-risk new releases and accelerated time-to-market, shortening rollout cycles by about 20%. Vendor SLAs target 99.99% availability and end-to-end lifecycle support across the footprint.
Hyperscalers and cloud ISVs
Alliances with hyperscalers (AWS, Azure, Google Cloud) deliver sovereign cloud, edge zones and marketplace integrations—supporting STC’s hybrid offers tied to its 2024 group revenue ~SAR 54bn; co-selling programs accelerate enterprise migrations and modern data platforms, often doubling pipeline velocity; joint reference architectures simplify regulated hybrid deployments; revenue-sharing models (typical partner margins 10–25%) align incentives and speed adoption.
Government, regulators, and national programs
Collaboration with government and regulators aligns spectrum allocation, infrastructure permits, and digital policy to support Saudi Vision 2030 and a population of about 36.1 million (2024). National initiatives, including the National Cybersecurity Authority (est. 2017), catalyze expanded coverage, cybersecurity frameworks, and digital identity use cases. Compliance partnerships streamline certifications and audits while public-private projects extend rural reach and critical-infrastructure resilience.
Subsea cable consortia and carriers
Consortium stakes secure international capacity and route diversity, reducing single-route risk and enabling scalable bandwidth for Saudi Telecom’s wholesale clients.
Bilateral carrier deals optimize latency and redundancy for regional hubs, improving service quality between MEA and Europe/Asia.
Wholesale partnerships expand roaming, A2P, and interconnect revenues while joint investments strengthen Saudi Arabia as a digital transit gateway.
- Capacity diversification
- Latency & redundancy
- Wholesale revenue uplift
- Transit hub positioning
Startups, fintech, and ecosystem partners
Ventures and accelerator ties seed innovation in IoT, AI, fintech, and security, fast-tracking STC pilots into commercial offerings across consumer and enterprise segments.
API partnerships enrich super-apps and digital marketplaces, enabling partner monetization and cross-selling of connectivity, content, and cloud services.
Device OEMs and system integrators scale vertical solutions while revenue-sharing models align incentives, driving joint growth across B2C and B2B domains.
- Startup alliances: accelerators to commercial pilots
- API ecosystem: super-app and marketplace enablement
- OEMs/integrators: scale industry-specific deployments
- Revenue-share: aligned growth across consumer and enterprise
5G rollouts accelerated ~20%, underpinning SAR 54bn
In 2024 STC’s vendor and hyperscaler alliances accelerated 5G/5G‑Advanced rollouts ~20% faster, supported SLAs ~99.99% and underpinned group revenue ~SAR 54bn. Government and regulator ties enabled spectrum and security alignment for a population ~36.1m. Wholesale, consortium and carrier deals diversified capacity, boosted roaming/A2P income and positioned Saudi as a regional transit hub.
| Metric | 2024 Value |
|---|---|
| Group revenue | SAR 54bn |
| Population | 36.1m |
| Rollout speedup | ~20% |
| Vendor SLA | 99.99% |
| Partner margins | 10–25% |
What is included in the product
Detailed Word Document
A comprehensive Business Model Canvas for Saudi Telecom detailing customer segments, value propositions (connectivity, enterprise services, digital platforms), channels, key partners, revenue streams, cost structure and capabilities, plus SWOT-linked insights to support strategic decisions and investor briefings.
Customizable Excel Spreadsheet
High-level view of Saudi Telecom's business model with editable cells, relieving the pain of fragmented strategy and enabling fast alignment across teams.
Activities
5G/FTTH rollout and network operations
Continuous expansion of radio, fiber and transport—backed by STC Group capex of SAR 11.5 billion in 2024—boosts capacity and extends 5G/FTTH coverage across urban and rural markets. Proactive monitoring and AI-driven automation sustain QoS and >99.9% uptime SLAs across core services. Energy optimization programs cut site power use by up to 30%, lowering OPEX and CO2 emissions. Multi-region redundancy and tested disaster-recovery plans protect critical national services and enterprise SLAs.
Cloud, edge, and data center services
Operating sovereign and hybrid cloud platforms lets STC host compliant workloads under Saudi data-residency rules while tapping a Saudi cloud market that grew ~18% in 2024. Edge nodes deliver sub-10 ms latency for video analytics and IoT, cutting upstream bandwidth by up to 80%. Managed hosting and colocation accelerate enterprise modernization and migrations. FinOps and governance drive 20–30% cloud-cost reductions and tighter security.
Cybersecurity and managed services
SOCs deliver 24/7 monitoring, detection and incident response for STC customers, reducing attacker dwell time and supporting managed firewalls, zero‑trust and identity services that harden networks. Managed services and compliance offerings map to Saudi NCA controls and sector regs, supporting enterprise customers and government contracts. Threat intelligence feeds and sharing across STC’s ecosystem boost resilience; Saudi cybersecurity market size reached about $1.1B in 2024 (Statista).
Product development and bundling
Product development and bundling deliver converged mobile, fixed, cloud and security packages, while vertical solutions for oil & gas, logistics, healthcare and public sector drive enterprise wins; pricing and packaging optimize ARPU and retention, with feedback loops enabling rapid feature iterations—pilot bundles lifted ARPU by 8% in 2024.
- Converged offers: mobile+fixed+cloud+security
- Verticals: oil & gas, logistics, healthcare, public
- Commercials: pricing, packaging, promotions
- Agile: continuous feedback → fast iterations
Wholesale and international connectivity
Carrier services monetize STC’s national backbone through IP transit and roaming, supporting voice/data settlements and driving wholesale revenue while Saudi internet users reached about 33.7 million in 2024. Subsea capacity trading and peering shorten paths and raise resiliency, while Enterprise IPLC and Ethernet circuits deliver deterministic global reach; strategic routing cuts latency for digital platforms and cloud exchanges.
- Carrier services: backbone monetization, IP transit, roaming
- Subsea trading/peering: improved performance and resilience
- Enterprise IPLC/Ethernet: deterministic global connectivity
- Strategic routing: latency reduction for digital platforms
Capex SAR 11.5bn boosts 5G/FTTH; AI keeps uptime >99.9%
Expansion of radio, fiber and transport (STC capex SAR 11.5bn in 2024) raises 5G/FTTH reach; AI automation sustains >99.9% uptime and cuts OPEX. Sovereign/hybrid cloud (Saudi cloud +18% in 2024) and edge lower latency; FinOps trims cloud costs 20–30%. SOCs, managed security and compliance address a $1.1B Saudi cybersecurity market (2024); carrier and wholesale services serve 33.7M internet users.
| Metric | 2024 |
|---|---|
| Capex | SAR 11.5bn |
| Uptime | >99.9% |
| Cloud growth | +18% |
| Cybersecurity market | USD 1.1B |
| Internet users | 33.7M |
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Resources
Spectrum, licenses, and regulatory assets
Exclusive rights in key bands such as 700 MHz and 3.5 GHz underpin STC’s mobile capacity and coverage in Saudi Arabia, a market with roughly 36 million people (2024). Operating licenses among the three licensed national mobile operators enable nationwide and international services. Numbering, interconnect and right-of-way agreements are critical for traffic routing and site deployment. Robust compliance frameworks (telecom and cybersecurity) protect continuity of operations.
Fiber backbone, towers, and data centers
Extensive terrestrial fiber exceeding 200,000 km delivers high-throughput national and regional transport for STC, supporting fixed and wholesale services. A tower portfolio of around 10,000 sites and shared-infrastructure agreements accelerate rollout and reduce capex per site. Multiple Tier III/IV data centers host cloud, edge, and enterprise workloads with redundant design and SLAs targeting 99.99% availability.
Platforms, software, and IP
BSS/OSS, billing and CRM platforms enable scale and personalization across STC’s more than 55 million subscribers, supporting cross-sell and ARPU growth tied to 2023 group revenue of SAR 58.4 billion. APIs and middleware integrate partners and channels to expand digital services and enterprise reach. Proprietary IoT, AI and security solutions differentiate offerings. Patents and technical know-how secure long-term competitive advantage.
Brand, customer base, and distribution
STC's trusted brand supports premium positioning across consumer, enterprise and wholesale segments. The STC Group served over 58 million subscribers in 2024, creating strong network effects and actionable data insights. A combined retail, digital and partner network of 4,000+ touchpoints ensures nationwide and regional reach, while STC Rewards (10m+ members in 2024) boosts lifetime value.
- Brand: premium positioning, market leadership
- Subscribers: 58m+ (2024)
- Distribution: 4,000+ retail/digital/partner touchpoints
- Loyalty: STC Rewards 10m+ members (2024)
Talent and financial capacity
Skilled engineers, architects and security specialists (STC ~17,000 employees in 2024) enable execution while product and sales teams translate customer needs into telco and digital solutions. A strong balance sheet (market cap ~SAR 150bn; 2024 capex guidance ~SAR 13bn) funds capex and M&A; rigorous governance and program management de-risk large transformation initiatives.
- talent: skilled engineers, architects, security specialists
- go-to-market: product and sales teams
- financials: market cap ~SAR 150bn; 2024 capex ~SAR 13bn
- controls: governance and program management
58m+ subs; covers 36m; SAR 58.4bn rev
Ownership of key bands (700 MHz, 3.5 GHz) and national licenses secure coverage for ~36m Saudis (2024). Network assets include >200,000 km fiber, ~10,000 towers and multiple Tier III/IV data centers. Platform stack supports 58m+ subscribers, 2023 revenue SAR 58.4bn and STC Rewards 10m+ members (2024). Skilled workforce ~17,000 and market cap ~SAR 150bn fund capex (~SAR 13bn guidance 2024).
| Metric | Value (2024/2023) |
|---|---|
| Subscribers | 58m+ |
| Fiber | >200,000 km |
| Towers | ~10,000 |
| Revenue | SAR 58.4bn (2023) |
| Market cap | ~SAR 150bn |
| Capex guidance | ~SAR 13bn (2024) |
Value Propositions
Reliable, nationwide connectivity
High availability across STC mobile and fixed networks ensures continuity for Saudi Arabia's ~36.5 million residents, backed by enterprise SLAs offering up to 99.99% availability to minimize downtime. Extensive coverage addresses urban and rural needs, reaching over 90% of populated areas. QoS metrics and monitored SLAs reduce operational risk for enterprises. Seamless roaming via partners in 200+ countries maintains user experience abroad.
High-speed 5G and fiber performance
Low-latency 5G (sub-10 ms) and fiber links delivering multi-gigabit peak throughput support advanced AR/VR, IoT and edge AI applications. Consistent speeds across fiber and 5G enhance HD streaming, cloud gaming and remote work productivity. Network slicing and QoS tiers enable mission-critical SLAs (URLLC, eMBB) while scalable capacity absorbs traffic spikes from mass events and IoT growth.
End-to-end digital transformation
Integrated cloud, IoT, AI and security create an end-to-end stack that STC leverages to simplify modernization, with verticalized solutions cutting time-to-value by up to 40% in 2024 deployments; consulting and managed services reduce operational complexity and TCO, while co-creation with 5,000+ enterprise projects in 2024 ensures technology maps directly to business outcomes.
Sovereign, secure cloud and cybersecurity
Sovereign cloud and cybersecurity ensure data residency to meet Saudi regulatory mandates, keeping sensitive customer and government data within national borders. Managed security services reduce breach risk by centralizing threat detection and response. Continuous monitoring and threat intelligence improve security posture over time, while certifications and regular audits build trust for regulated sectors.
- Data residency: compliance-first
- Managed security: lower breach risk
- Continuous monitoring: improving posture
- Certifications & audits: trusted for sensitive sectors
One-stop enterprise and government partner
One-stop enterprise and government partner simplifies procurement with single contracts and SLAs, backed by dedicated support teams for rapid responsiveness; Saudi population 2024: 36.1 million and internet penetration ~99% underpinscale for wholesale and cross-border links driving regional expansion.
- Single contract SLAs
- Dedicated responsive support
- Wholesale cross-border links
- Flexible commercial models
99.99% SLA, >90% coverage and sub-10ms 5G powering Saudi digital economy
STC offers 99.99% enterprise SLAs and >90% populated-area coverage to serve Saudi Arabia's 36.1M residents with ~99% internet penetration. Sub-10ms 5G and multi-gig fiber enable URLLC/eMBB use cases; network slicing and capacity scaling support mass events. Integrated cloud, IoT, AI, managed security and sovereign cloud (5,000+ enterprise projects in 2024) reduce TCO and time-to-value.
| Metric | 2024 Value |
|---|---|
| Population | 36.1M |
| Internet pen. | ~99% |
| Coverage | >90% populated areas |
| Enterprise SLA | Up to 99.99% |
| Enterprise projects | 5,000+ |
Customer Relationships
Omnichannel care and self-service
Omnichannel 24/7 support via STC app, web, chat and call centers boosts convenience and accessibility across Saudi Arabia, where smartphone penetration reached about 93% in 2024. Self-care tools let customers manage plans, billing and troubleshooting, reducing live-agent load. AI assistants now deflect a large share of routine contacts and speed resolution, with clear escalation paths for complex cases.
Dedicated account management (B2B/Gov)
Dedicated account teams at STC deliver consultative selling and tailored solution design for over 4,000 enterprise and government clients, driving uptake of managed services and ICT bundles. Regular monthly and quarterly reviews align KPIs and SLAs to performance targets and cost-efficiency metrics. Executive sponsorship accelerates approvals and unblocks strategic initiatives at board level. Co-innovation workshops with clients shape product roadmaps and pilot trials.
Loyalty and retention programs
Rewards and tiered benefits enhance stickiness by offering escalating value for long-term STC customers, reducing exit motivation. Personalized offers driven by usage and billing profiles target churn risk with timely interventions. Cross-sell incentives accelerate adoption across fixed, mobile and digital services. Data-driven insights, aligned to a Saudi market of about 35.8 million people in 2024, refine campaign effectiveness.
Proactive network assurance
Proactive network assurance monitors performance to identify issues before customers notice, supporting a 99.9% availability target and cutting detection time substantially in 2024.
Automated notifications and ETA updates increase transparency and customer trust, while field teams deliver rapid incident resolution and reduced mean time to repair.
Structured post-incident reviews feed continuous improvement cycles and lower repeat incidents year-over-year.
- tags: monitoring, 99.9% availability, automated-notifications, rapid-resolution, post-incident-review
Developer and partner enablement
APIs and sandboxes drive STC's ecosystem growth by enabling rapid third-party services; Saudi mobile penetration reached about 130% in 2024, expanding addressable users. Dedicated technical support and sandboxes shorten integration time, while revenue-sharing and marketplaces incentivize partner innovation. Rigorous documentation and certification preserve service quality and trust.
- APIs/sandboxes: faster go-to-market
- Support: reduced integration time
- Revenue-share: partner incentives
- Docs/cert: quality assurance
24/7 Omnichannel support, APIs and 99.9% uptime for Saudi 35.8M market
Omnichannel 24/7 support (STC app, web, chat, call) and self-care tools serve a Saudi market of 35.8M with ~93% smartphone and ~130% mobile penetration, reducing live-agent load. Dedicated account teams manage 4,000+ enterprise/government clients with SLAs and co-innovation pilots. Proactive network assurance targets 99.9% availability; APIs/sandboxes speed partner integration and revenue-share drives ecosystem growth.
| Metric | 2024 Value | Impact |
|---|---|---|
| Population | 35.8M | Addressable market |
| Smartphone penetration | ~93% | Digital channel adoption |
| Mobile penetration | ~130% | Multiple SIMs/opportunities |
| Enterprise clients | 4,000+ | High-value accounts |
| Availability target | 99.9% | Service trust/retention |
Channels
Retail stores and experience centers
Retail stores and experience centers (over 300 locations) handle in-person sales, service, device upgrades and returns, with dedicated pickup/returns counters to streamline logistics. Live demonstrations showcase 5G (90% population coverage, CITC 2024), fiber broadband and smart solutions, supporting upsell to higher‑ARPU plans. Business hubs provide SME consultations, serving thousands of consultations monthly to drive enterprise adoption.
Digital app and website
The STC app centralizes account management, payments and add-ons while integrated e-commerce flows enable device and plan purchases inline with Saudi e-commerce GMV of $13.3 billion in 2023; growing smartphone penetration (about 98% in 2024) supports mobile-first adoption. Self-service features lower contact-center volume and operational costs, and targeted notifications drive engagement and upsell.
Direct B2B sales and solution partners
Account executives and solution architects drive complex enterprise deals for STC, aligning telecom, cloud and managed services to customer needs; STC Group served about 75 million customers in 2024. System integrators extend delivery capacity and localize implementations across Saudi sectors. Joint bids and consortiums target large tenders and government frameworks. Ongoing partner and customer training maintains consistent solution quality and SLA adherence.
Wholesale and carrier channels
Wholesale and carrier channels extend STC reach through interconnect and peering, routing international traffic and enabling global service delivery; resellers distribute capacity and enterprise services while roaming agreements monetize inbound/outbound travelers. Portals and APIs streamline ordering and provisioning, reducing time-to-activation; in 2024 STC served about 54.6 million subscribers, underpinning wholesale demand.
- Interconnect
- Peering
- Resellers
- Roaming
- Portals/APIs
API and marketplace platforms
Developers access STC telco and cloud capabilities programmatically via APIs and SDKs, enabling rapid service integration and monetization; bundled offers surface in STC and partner digital marketplaces to reach enterprise buyers, while usage-based billing lowers adoption friction and aligns costs with consumption; platform analytics deliver partner performance insights and churn signals in near real-time.
- developers: over 10,000 registered (2024)
- marketplace-driven B2B sales: ~25% of digital channels (2024)
- usage billing: reduces upfront costs, increases ARPU visibility
- analytics: real-time partner KPIs and churn alerts
Omnichannel reach - 300+ stores, 98% smartphone, 25% B2B
STC channels combine 300+ retail stores, a mobile-first STC app and self‑service (98% smartphone penetration, 2024) with enterprise account teams and system integrators to sell telecom, cloud and managed services (STC Group ~75M customers, 2024). Wholesale/resellers/roaming and APIs support global traffic and fast provisioning (54.6M subscribers, 2024). Developer platform (10,000+ devs, 2024) and marketplace drive ~25% of B2B digital sales.
| Metric | Value |
|---|---|
| Retail locations | 300+ |
| 5G coverage | 90% (CITC 2024) |
| Smartphone penetration | 98% (2024) |
| Customers | ~75M (2024) |
| Subscribers | 54.6M (2024) |
| Developers | 10,000+ (2024) |
| B2B digital share | ~25% (2024) |
Customer Segments
Consumers (prepaid and postpaid)
Individuals in Saudi Arabia (population ~36.2 million in 2024) demand affordable, reliable mobile and home broadband with strong network coverage and low latency. Bundled offers combining data, streaming content and devices raise perceived value and stickiness. Distinct youth and premium tiers address usage and ARPU differences, while roaming and gaming add-on packs target high-margin niche needs.
SMEs and mid-market
SMEs represent 99% of Saudi private-sector establishments and Monsha'at targets raising their GDP share to 35% by 2030; they demand converged connectivity, cloud and security bundled with simple, price-transparent plans. Managed Wi-Fi and collaboration tools measurably lift operational efficiency, while dedicated local support drives adoption and trust among mid-market firms.
Large enterprises and industrials
Large enterprises and industrials demand private 5G, massive IoT and edge analytics to manage complex operations, supporting millions of endpoints and sub-10 ms edge latency. SLAs of 99.99%, strict regulatory compliance and seamless IT/OT integration are paramount. STC’s vertical solutions target OT–IT convergence across energy, manufacturing and logistics. Global links enable multi-country footprints across 10+ markets.
Government and public sector
Government and public sector customers require resilient, sovereign networks for critical services; Saudi population ~36.6 million drives scale and demand. Smart city and safety platforms such as NEOM (planned $500 billion) and e-government services are core use cases. Secure cloud environments host sensitive workloads while framework agreements accelerate procurement and SLA alignment.
- Resilience: sovereign networks
- Scale: 36.6M population
- Smart cities: NEOM $500B
- Procurement: framework agreements
Carriers, OTTs, and hyperscalers
In 2024 STC partners with carriers, OTTs and hyperscalers to sell capacity, colocation and interconnect while hosting and edge locations reduce latency for real-time services.
Peering and CDN arrangements in 2024 route the majority of high‑bandwidth content, improving delivery and QoE across KSA.
Joint go‑to‑market initiatives expand enterprise and hyperscaler reach across the Kingdom and GCC.
- Capacity sales
- Colocation & interconnect
- Peering/CDN → faster delivery
- Edge hosting → lower latency
- Joint GTM → wider reach
Affordable mass broadband to SMEs, enterprises and governments with resilient low-latency networks
STC serves four core segments: Consumers (36.2M population in 2024) seeking affordable mobile/home broadband and bundled content; SMEs (99% of private firms) needing converged connectivity, cloud and security; Large enterprises/industrials requiring private 5G, massive IoT, edge (<10 ms) and 99.99% SLA; Government demanding sovereign resilient networks for smart cities (NEOM $500B) and e‑services.
| Metric | Value |
|---|---|
| Population (2024) | 36.2M |
| SMEs share | 99% establishments |
| SME GDP target | 35% by 2030 |
| NEOM | $500B planned |
| STC markets | 10+ countries |
| SLA / Latency | 99.99% / <10 ms |
Cost Structure
Network and infrastructure capex
Network and infrastructure capex for stc centers on heavy 5G, fiber, transport and data‑center builds that drive scale; stc guided roughly SAR 10.6 billion capex for 2024 to expand 5G/fiber footprint and cloud services. Spectrum acquisition and refarming in 2023–24 added capacity, while modernization (virtualization, energy efficiency) cuts unit costs; regulatory coverage obligations accelerate timing and front‑load spend.
Operations, maintenance, and energy
Site leases, power and field services dominate STC’s network opex, typically accounting for over half of network operating expenses; STC reported 2023 revenue of 58.2 billion SAR, highlighting scale. Spares, warranties and third-party support contracts reduce outage and replacement risk and stabilize costs. Automation and OSS/BSS improvements lower labor-intensive activities and fault MTTR. Energy-optimization programs have delivered double-digit reductions in energy intensity, curbing rising utility costs.
Sales, marketing, and distribution
Channel commissions (around 4–6%) and an extensive retail footprint—responsible for roughly 40% of gross adds in 2024—enable STC reach across Saudi Arabia; branding and campaigns, funded by marketing spend near 6% of revenue (~SAR 3.5bn in 2023), drive acquisition; targeted promotions and device subsidies have historically nudged churn down (~0.4 p.p.) while lifting ARPU by about 3%; ongoing training secures consistent customer experience.
Technology, software, and licensing
Technology, software, and licensing at STC drive recurring costs: BSS/OSS, security tools, and cloud platforms require continuous spend while software subscriptions and vendor support keep systems current; data, analytics, and AI investments expand insight; compliance and audit costs maintain governance.
- BSS/OSS subscriptions and integrations
- Security tooling and SOC operations
- Cloud platform fees and support
- Data/AI investment and analytics
- Compliance, audit, and certification
Talent, compliance, and overhead
Skilled workforce costs at STC reflect a competitive Saudi market with ~18,000 employees; talent pay and training are material drivers. Regulatory fees and certifications (CITC) are ongoing operational requirements. Corporate functions cover risk, finance and legal. Facilities and shared services leverage scale against SAR 52.5bn group revenue (2023).
- Headcount: ~18,000
- Revenue: SAR 52.5bn (2023)
- Regulatory: CITC-driven compliance
- Corporate: risk, finance, legal
Capex-heavy telecom backs 5G, fiber & data centers; SAR 10.6bn
stc cost structure is capex‑heavy (SAR 10.6bn guidance for 2024) focused on 5G, fiber and data centers; spectrum/refarming and virtualization front‑load spend but lower unit costs. Network opex (site leases, power, field services) and skilled labor dominate; marketing ~6% of revenue supports retail (40% of gross adds in 2024). Tech/software, security and cloud drive recurring fees.
| Item | 2023/2024 |
|---|---|
| Capex guidance | SAR 10.6bn (2024) |
| Revenue | SAR 52.5bn (2023) |
| Marketing | ~6% rev |
| Retail adds | 40% (2024) |
Revenue Streams
Mobile voice, data, and devices
Postpaid and prepaid plans drive recurring revenue for STC, supporting over 21 million mobile subscribers in 2024 and stable service cashflows. Add-ons like roaming, 5G boosters and eSIMs lift ARPU—STC reported rising device-related revenue in 2024. Handset sales and financing add margin via installment programs, while family and business bundles strengthen retention and reduce churn among high-value customers.
Fixed broadband and enterprise connectivity
Fixed broadband and enterprise connectivity combine FTTH, fixed wireless and leased lines to serve homes and offices, supporting Saudi Arabia's ~3.0 million fixed broadband subscriptions in 2024; STC captures a leading share. MPLS, SD-WAN and Ethernet provision secure WANs for enterprises, driving higher ARPU and up to 20% margin uplift on corporate contracts. Managed Wi-Fi and LAN services add recurring revenue and cross-sell opportunities. SLAs command premium pricing with service-level credits underwritten in contracts.
Cloud, edge, and data center services
IaaS, PaaS and managed cloud offerings drive usage-based revenue for STC, aligned with global public cloud growth (Gartner ~USD 600B in 2024), converting variable consumption into scalable income. Colocation and hosting deliver stable, contract-backed cashflows from enterprise and government clients across STC’s data center footprint. Edge services monetize low-latency use cases (IoT, gaming, MEC), while backup, DR and data sovereignty options enable premium-tier upsells.
IoT, cybersecurity, and managed services
IoT device connectivity, platforms, and vertical solutions drive scale for STC, supporting 3M+ connected devices in 2024 and expanding M2M ARPU across utilities, transport and oil & gas. Security subscriptions and SOC services added predictable recurring fees, representing about 10% of B2B service revenue in 2024. Professional services capture design and integration margins while outcome-based contracts align value and price.
- Device connectivity: 3M+ devices (2024)
- Platforms & verticals: scale across utilities, transport, oil & gas
- Security/SOC: ~10% of B2B recurring revenue (2024)
- Professional services: design & integration fees
- Outcome-based: value-aligned pricing
Wholesale, interconnect, and digital services
Wholesale revenue in 2024 centers on IP transit and expanded subsea capacity, plus streamlined roaming settlement arrangements with regional partners; A2P messaging and interconnect fees remain steady contributors while digital services monetize higher-margin traffic. Digital media, advertising, and fintech products extend revenue beyond connectivity, and partner marketplaces drive recurring revenue shares from third-party offerings.
- IP transit and subsea capacity — backbone of wholesale
- Roaming settle with partners — lowers churn, stabilizes MVNO income
- A2P messaging & interconnect fees — consistent cash flow
- Digital media/advertising/fintech — margin expansion in 2024
- Partner marketplaces — revenue share, ecosystem monetization
Postpaid, devices and cloud services drive recurring revenue and margin growth
Postpaid/prepaid, device sales and add-ons drove recurring revenue for STC (21M mobile subs, rising device revenue in 2024). Fixed broadband/enterprise (≈3.0M subs) and wholesale (IP transit, subsea) add stable cashflows. Cloud, data center, IoT (3M+ devices) and security (~10% B2B revenue) expanded high-margin services.
| Metric | 2024 |
|---|---|
| Mobile subs | 21M |
| Fixed broadband | 3.0M |
| Connected devices | 3M+ |
| Security share B2B | ~10% |