What are the kingdom’s milestones in adopting technologies and digital transformation?
The kingdom saw several milestones and will continue to move forward in adopting technologies ensuring the application of the digital transformation. KSA ranked second among G20 countries in digital competitiveness, according to the European Centre Of Digital Competitiveness in 2021, ranked third among G20 countries in digital business frameworks, and 11th globally in Global Competitiveness Report WEF (2019).
In addition, Saudi Arabia ranked first in government excellence as per the ITU-2020. In respect of Saudi talents enablement, KSA ranked first place in women empowerment programmes in ICT, ITU (2020), and ninth place globally in talents in the Global Competitiveness Report-WEF (2020).
KSA ranked second in the Bloomberg Covid-19 Resilience Ranking for January, 2022. This qualitative advance reflects the effectiveness of health and economic response plans developed by the Saudi government in dealing with the pandemic.
KSA heavily pursued adopting technologies and made a leap across different tech spaces and succeeded to rank second in the Cybersecurity Pillar of the Global Competitiveness Index report (2020), seventh by peak 5G download speeds (OpenSignal – 2021), third fastest average 5G download speeds (OpenSignal – 2021), and among the top five in speed of 5G rollout (OpenSignal – 2021). KSA also ranked 12th on the UN e-government index in the G20 (2020).
The kingdom’s mobile broadband internet speeds have rapidly climbed from 107 in 2017 to the top 10 (seventh) according to 2021 speedtest.net report), and second among G20 countries. KSA has installed a total number of 6,591 5G towers, with 38.18 percent of all populated areas now receiving 5G coverage. The country ranked sixth when it comes to 5G peak download (OpenSignal) and ranked Riyadh ranked third in 5G downloads speeds (OpenSignal).
It is important to mention that the kingdom is among the first countries in the world to adopt open access regulation, allowing users to choose their service provider, regardless of who owns the infrastructure.
How can emerging technology lift the overall communal and economic landscape?
The world has had a great thirst for new technologies for quite some time now. With customers demanding better, faster, more convenient solutions in the work, social and home environments. The pandemic cast that need into sharp relief as the world switched from a physical world to a virtual world almost overnight.
People, businesses and countries had to adapt and change the way they worked and lived in lockdown, with the digital world providing them the only access beyond their homes. Those who were the most digitally prepared tended to do better than those who were not. Saudi Arabia had been blessed many years before with a leadership that saw the potential in the digital world as it could provide the rapid transformation of the economy, leisure and society and set out a clear vision of what it could achieve.
Over four years ago, the leadership of stc fully recognised the way the world was changing and put in place a bold plan to transform stc into a fully digital company incorporating all the elements of an ecosystem to serve the future. The strategy, called DARE, provided a strong sense of direction and pace of transformation for the company.
At stc group, we are committed to social responsibility and invest heavily in sustainable development. We have launched inspireU in 2015 to support the entrepreneurship sector represented in small and medium enterprises, facilitating financing opportunities, providing administrative and technical support and assistance to develop the capabilities of these entrepreneurship.
Since its launch, the programme has been able to support 75 startup projects in various fields that have been transformed into national digital companies, with financial transactions exceeding SAR10bn ($2.67bn). InspireU projects have benefited more than 40 million users, and created more than 600,000 participatory jobs in the local market.
InspireU is one of stc’s most important programmes to support entrepreneurs, and one of the top business accelerators in the region. The programme provides many services to the incubated projects, including a financial grant, an intensive, high-quality training programme provided by experts and consultants from Silicon Valley in several fields, and meetings with many entrepreneurs and mentors.
We embrace our DARE strategy in the way we do our business: to expand in scale and scope, and to provide sustainable development using the investment, services and products provided by this strategy that have enabled us to help people, business and society to successfully address the challenges of the pandemic. More importantly it has helped protect the economy and speed the recovery, as is witnessed by the kingdom currently enjoying the strongest economic recovery within the G20.
The scale and pace of our response to the pandemic across the whole digital ecosystem we felt was the ultimate test and vindication of our digital first strategy. But there is still much more to do.
Generally, how is security in digitisation important, and cyber security in particular, to people and businesses?
Due to our digital first strategy, we now have customers across multiple platforms, whether that is stc play, our entertainment service, or stc pay, our digital wallet which is due to become the first digital bank in KSA, having attained unicorn valuation status last year, or our business customers using cloud, IoT or 5G solutions for their increasingly digital businesses.
What is critical to all is that data is kept safe and secure across every platform and service they may use. We have and will continue to heavily invest in cybersecurity, and the group was a driving force behind our recent set up of our advanced technology and cyber security company sirar by stc.
The company is protecting platforms from threats using artificial intelligence to identify and combat threats before they become an issue. Furthermore, we are changing people’s lives by enabling the digital transformation of public services and industry applications such as utilities, transport and logistics, security, manufacturing, retail, health, and education. As a key enabler of the kingdom’s Vision 2030 goals, we have to ensure that our technology is enhancing people’s lives whether that’s through entertainment, financial services, healthcare or education.
How is stc leveraging its technology and expertise to enhance the overall culture and business community?
Stc is a digital company. We bring the full weight of our digital products and services to help businesses grow (and even remain in business during the pandemic) as well as bringing individual customers unrivalled digital services, such as 5G, cloud computing, IoT and data analytics. We are continuing to evolve, and having connected over 3.5 million households with high quality fibre optic technology, we can see how our technology is improving people’s lives.
People are running highly successful businesses from their smartphones and laptops and for that they require the best-in-class connectivity, which we provide. Businesses are operating on cloud-based services, using AI and data to perform at higher levels and to great success. We only see this continuing to grow, as people trust digital services and capabilities more and more.
One of the most exciting projects stc is involved in is the smart city of NEOM, which will be one of the most digitally advanced cities in the world. Stc is also contributing to digitalising the country’s healthcare system and driving innovation and changing people’s behaviour and building trust when it comes to privacy and data. The future is a digital one, and we at stc are striving to make it a safe and prosperous one for all.
What are the growth opportunities for stc and how is the Group investing in its future?
Our DARE strategy is digitising stc, accelerating performance, reinventing experience, and expanding in scale and scope of everything we do. This has required a complete transformation of our operations, methods, and speed of working. This has transformed our focus and investing from the better understanding of our customers and business clients and investing behind their most pressing needs as they digitise their lives and businesses more and more. So, opportunities are not just telecoms, but multiple other products and services such as 5G, cloud computing, IoT and ICT.
These emerging technologies will be the fundamental building blocks of this journey. Not only will they be enablers but also crucial sources of strategic competitive advantage for stc. That is why we are already investing heavily in these areas and in related capabilities.
Other examples of our investments is stcpay, our new fintech service. stcpay believes it can change the way the world feels about financial control and turn fear into enjoyment as it becomes as easy to manage and control as any other aspect of their lives incorporating spending, saving, investment and overall management and analysis.
Letting customers “simply take control”. Stcpay has already attracted more than 7 million registered users, which is a great example of how our payment platform is evolving. Those kinds of figures will help the government reduce dependence on cash as it modernises the economy. We’re already looking to roll out the service to other countries.
We have continued to expand our scope as we have launched the Advanced Technology and Cyber Security Co. (sirar by stc). The company focuses on security advisory, advanced security professional service, providing cybersecurity platforms (i.e threat intelligence) and managed security services. Sirar by stc is enabling enterprises to protect and secure digital assets as they embark on digital transformation. We have also launched stc Play, our eSports and gaming platform that provides casual and professional gamers access to online tournaments, content, and gaming merchants in one platform.
At the same time, we are maintaining our technology leadership position in the region. Stc has connected more than 3.5 million households with high-quality fibre optic technology. We are also investing heavily in IoT, cloud services, and data analytics capabilities.
How is stc provisioning the various sectors in KSA through its technologies and developments?
Stc deployed multiple data centres across the kingdom to serve various sectors with its advanced technologies, and we have launched the digital operations control centre (DOCC) which is considered the largest integrated operating centre in the region. Moreover, we ensured that the IT infrastructure is in a safe environment, ensuring availability and connectivity for business sectors as well as individuals.
We are developing cloud computing at a rate that has not been seen before. Stc Cloud is a digital platform that offers cloud services to more than 3,000 different entities in the kingdom’s government and private sectors. Stc is classified as the largest cloud service provider in the region. We have launched three mega data centres in Riyadh, Jeddah, and Al Madina, funded with a SAR1bn ($270m) investment.
Our overall provisioning is characterised by providing broadband services to all KSA regions through stimulating investment in infrastructure and regulatory frameworks, supported e-commerce, bridged the digital gap in the skills of ICT users, increased the IT industry’s contribution in the non-oil GDP, and providing cybersecurity solutions and services, in addition to providing the largest advanced 5G network in the Middle Eastern region, ensuring progressive transactions for the different industries including but not limited to: retail, hospitality, pharma, transportation, entertainment, and education.
Moreover, we have been working with our global partners to harmonise the local content methodology, and to measure the baseline of the telecommunications and information technology sector in cooperation with the Ministry of Communications and Information Technology, which in turn shall support local content as part of the goals set by Vision 2030 and for stc, while playing a vital role in realising the kingdom’s vision and goals, whether as a digital facilitator or as a local content enhancer and consequently supporting various industries.
Stc signed several agreements during LEAP with giant technology names; what are the advantages of these agreement for stc and the ICT-IT sector?
One of our main announcements at LEAP was the establishment of another new company vested with $1bn of assets, MENA digital hub that is consolidating data centres, submarine cables, terrestrial cables, point of presence across the globe as well as border points, we are talking about the new one stop shop for data and digital connectivity to the region out of KSA and to the globe.
We have signed a MOU with the Ministry of Municipal and Rural Affairs and Housing to build a strategic partnership in the fields of information and communication technology, and to develop digital initiatives. The agreement seeks to enhance cooperation between the two sides, with the aim of developing joint priority projects, including coordination regarding telecommunications sector technologies, to improve and develop the monitoring system, supervising restaurants and shops.
The agreement is also activating joint cooperation in developing the natural crisis management centre system, in addition to developing smart city applications and services with the latest systems applied in this field, and developing the National Communications Center for Secretariats and Municipalities. The Ministry of Tourism and the Saudi Tourism Authority also signed with stc to cooperate in developing digital initiatives to support digital transformation in the tourism system and design new business models in the tourism sector.
Stc signed an agreement with Huawei to bring a local facility to the kingdom and manufacture a data centre, which, after its operation, will contribute to the development of the data centre sector and the localisation of the industry in the kingdom by transferring knowledge, technology and global expertise from Huawei in cooperation with local manufacturing companies and supporting them with professional manufacturing capabilities and expertise and knowledge transfer to national competencies, providing job opportunities and creating new local supply chains in Saudi Arabia.
This agreement is an important step towards providing data centre equipment locally at a lower cost, while keeping pace with technologies globally, creating new local industries, creating an attractive business environment and supporting technical innovation, which in turn will tangibly support and increase local content and contribute to achieving the goals of the kingdom’s Vision 2030.
As stc makes the evolution into a digital service provider with the introduction of 5G and Internet of Things (IoT), we signed with Ericsson, so the 5G-C and charging system will optimise stc subscriber experience, provide business agility and innovation as well as personalised and targeted notifications, alerts, and incentives. The partnership will enable stc to be fast, agile, and flexible to deliver great experiences to customers, operate efficiently, and deliver innovative new offerings that target specific user preferences, thereby improving time to market.
In addition, stc signed an MOU with Google Cloud to innovatively collaborate through three streams including delivery of 5G and infrastructure monetisation, where the parties cooperate across the private 5G/LTE MEC solutions, B2B/B2C solutions, and connectivity solutions and DC colocation. In addition, we will conjoin in the delivery of digital experience ensuring low touch high value customer experience, customers’ analytics and data monetisation as well as providing call centre AI solutions.
Furthermore, stc and Google Cloud, will extend network services, IT and data platforms modernisation for selective telco/IT workloads, on-prem modernisation and running data analytics.
Moreover, we signed an MOU with Microsoft Arabia to solidify the collaboration between the parties. The MOU foresees empowering the necessary foundational capabilities required to enable the digital transformation, 5G, Multi-Edge Computing (MEC) and cloud use cases in the local and regional markets. Furthermore, it provides both parties a focused framework towards driving bottomline business value and accelerating innovation.
The MOU also envisions the two parties to define mutually acceptable solutions where they jointly evaluate the potential Saudi enterprise market use cases in teaming model and support packaging, including (but not limited to) Microsoft Azure Private 5G Core (PMEC) solutions, jointly built incubation offerings using Microsoft technologies (Edge, 5G Core, Microsoft Azure Private 5G Core (Private MEC), co-develop (GTM) go-to-market strategy, and offerings for the developed 5G and Edge solutions, and Co-Develop and evaluate sustainability solutions for the use of stc.
Additionally, we collaborated with OnStar through a MOU to cooperate seamlessly as we work towards joint vision of enhancing the lives of people in Saudi Arabia, through cutting-edge technology and innovative solutions. Outlining a clear path towards the development of road safety technologies, the MOU marked the intention to introduce connected vehicles to the kingdom.
We are also looking to reach out within countries where they also have a young digitally savvy population where we can offer the kind of digital offering we know is attractive to them, helping leapfrog old land-based systems and allowing a fast, effective, cheap, cloud connected solution to multiple aspects of their life.
In February, TAWAL, stc’s towers operator, agreed in principle on a full acquisition of Pakistani tower company AWAL Telecom from its shareholders. The acquisition will see TAWAL bring significant capital investment, processes, and expertise to the market and introduce innovative products to its portfolio.
How do you see stc excelling at MWC 2022 and what are your potential partnerships?
Stc will share its trailblazer and leadership about the progression and future of connectivity. We will showcase stc’s digital leadership in the MENA region, highlight our effective sustainability practices in the region, showcase the investment opportunities in the kingdom, and explore and engage with international partners. During MWC 2022, stc will feature its internal stakeholders: stcpay, Saudi’s digital wallet, how the fintech is progressing, and shed light on sustainability practices.
Apart from our internal stakeholders, we will also feature our external stakeholders characterised by representing the opportunities that Saudi Arabia has in terms of tech, investments and business, through the Ministry of Communications and Information Technology, Invest Saudi, Monsha’at, and the Ministry of Culture.
Stc will be signing with giant tech names several MOUs including Ericsson, Nokia and Huawei for expanding the 5G network to deliver higher multi-Gbps peak data speeds, ultra-low latency, more reliability, massive network capacity, increased availability, and a more uniform user experience to more users. Higher performance and improved efficiency empower new user experiences and connects new industries.
Stc will sign an MOU with Salesforce to further enable the digital transformation, to provision organisations to improve their brand’s reputation, customer experience, and customer retention ratios through the implementation of necessary software, as digitally transformed organisations can adapt to the evolving technological landscapes and tackle sudden shifts in their industries.
We will feature a commercial edge deal with Huawei in relation to industries operations to benefit from special connectivity and integration, and offer accessible cloud-based services including marketing, management and accounting tools to facilitate residential, commercial, self-storage concerns. In addition, we will sign a cloud partnership with Cisco and Huawei, where Cisco Cloud Partner Programme will help its channel partners enter the cloud computing marketplace through three tracks: Cloud Builder, Cloud Provider and Cloud Services Reseller.
As for the Huawei Cloud Partner Programme, it will help Huawei Cloud Partner Network (HCPN) partners build success on Huawei Cloud by providing valuable business, technical, and marketing support.
Another partnership will be signed with Microsoft, where the company will enable through its Azure private multi-access edge compute (PMEC), a solution targeted at dramatically simplifying the deployment of highly distributed, secure, private 5G networks and empowering the development of low-latency services at the customer edge.
Furthermore, stc will see another contract signing partnership agreement with Huawei, to enhance FTTR (fibre to the room), an all-optical Wi-Fi solution that extends directly the optical fibres to each house room, achieving gigabit coverage everywhere at home, especially given that the Huawei Inspiration Lab proposes an innovative photoelectric composite micro-optical cable and FTTR construction solution.