KT enters Middle East with Saudi Telecom

By Baek Byung-yeul

KT has teamed up with Saudi Telecom Company (STC) to improve telecommunications infrastructure in Saudi Arabia and co-develop new technologies, a move designed to expand its reach in the Middle East market, the firm said Wednesday.

The two firms signed a memorandum of understanding (MOU) on the sidelines of the Mobile World Congress (MWC) trade fair in Barcelona. KT said its Chairman Hwang Chang-gyu and Nasser Al Nasser, CEO of STC Group, attended the ceremony.

With the partnership, KT and STC will cooperate to upgrade fixed-line and mobile networks in Saudi Arabia and collaborate to launch smart city, smart media and next-generation telecom services.

Collaborating with STC, KT plans to export its information and communications technology (ICT)-based services such as GiGA Wire high-speed internet service, GiGAeyes visual security service, fifth-generation (5G) network service, virtual reality (VR) and augmented reality (AR) services and big data service to the Middle East region.

STC is the state-run telecom firm. As the largest telecom operator, it had 3.17 million fixed-line subscribers and 20.5 million mobile subscribers as of 2017. The firm also has been providing wireless services in other countries such as Bahrain, Kuwait and Turkey.

Hwang said cooperation with STC would help the Korean firm secure new markets. “Through the cooperation between the two companies, we will be able to create new markets, increase customer convenience and lead the Fourth Industrial Revolution and innovation,” he said.

The CEO of STC Group said he hopes cooperation between the two firms will expand not only in Saudi Arabia but across the Middle East.

KT said it is hoping to export its GiGA Wire service to the Middle East as the high-speed internet service has been recognized around the world. KT has exported the service to many countries including the United States, Turkey, Malaysia and Botswana.

The GiGA Wire service is a technology that can provide internet connection speeds up to 1 Gpbs (gigabits per second) with a copper telephone line. KT said it is low-cost and suitable for environments where optical fiber cannot be deployed as the service doesn't require additional optical cables.

Using the service, KT is trying to forge alliances with many countries. Last October, the firm successfully demonstrated its GiGA Wire service in Cairo, Egypt.