Agreement between China Telecom and stc will revolve around the strategic development of IoT industries
Chinese telecom operator China Telecom has signed a Memorandum of Understanding (MOU) with Saudi Arabian telco stc to focus on opportunities in the Internet of Things (IoT).
The primary aim of the agreement revolves around the strategic development of IoT industries, especially connected car projects in Saudi Arabia, China Telecom said in a release.
China Telecom and stc plan to leverage their respective IoT services and IoT expertise and partnership synergies to provide services for the next generation of connected transportation and vehicles. The agreement is also expected to provide an opportunity for both companies to promote growth in strategic areas and capture synergies in the IoT market.
Li Yong Bo, global roaming and mobility business center VP at China Telecom Global, said: “We’re looking forward to building upon the existing cooperation framework between China Telecom Global and stc group that includes corresponding mutual affiliates to explore joint IoT opportunities in Saudi Arabia. Our agreement aligns with the kingdom’s Vision 2030 plan to accelerate the innovation of connected cars in the region. Both groups will work towards building benefits and advancing transportation for the nation and its people.”
“We are thrilled to announce our partnership with China Telecom as a significant step towards achieving our strategic goals for the IoT industry, particularly in the realm of connected car projects in KSA. By signing this MOU, we are confident that stc group and CTG will continue to work together to accelerate our digital developments and ensure that we meet our objectives,” said Saud AlSheraihi, products and solutions VP at stc.
In April 2022, Saudi Arabia’s Public Investment Fund and stc had announced the signing of a joint venture agreement to establish a new company, with focus on the IoT.
The partners said that each entity will own a 50% stake in the new IoT company. The JV agreement is part of PIF’s and stc’s efforts to drive the rapid growth of the IoT across Saudi Arabia and to make it a regional center for the Middle East and North Africa.
The partners noted that the company will contribute toward boosting IoT adoption by being a technology-agnostic service provider offering new solutions in the smart industrial manufacturing sector, smart logistics transportation sector, and smart cities. In addition to providing IoT solutions, the company also aims to help create an IoT ecosystem by providing consulting, implementation and training support as well as facilitating innovative funding models to support businesses in their adoption of IoT.
The partners also noted that local market studies indicate vast growth in the size of the IoT market in Saudi Arabia to potentially reach SAR 10.8 billion (currently $2.18 billion) by 2025 with an annual growth rate of 12.8%.The partners also said that the new IoT company will aim to equip the targeted sector to realize the “Fourth Industrial Revolution” through the enablement of autonomous technologies, artificial intelligence, digital twin, sensors and other domain-specific advanced technologies.
