Saudi Zain's annual charges to reduce by $115m following licence extension

Atheeb Telecommunication Co said decision to extend its licence by 15 years would reduce the company's annual costs by $2.6 million
Saudi Zain's annual charges to reduce by $115m following licence extension
GCC telecoms
By Reuters
Mon 03 Oct 2016 10:45 AM

Zain Saudi Arabia said on Monday that a decision by the government to extend its licence in the kingdom by 15 years would reduce its annual amortisation charge by 433 million riyals ($115.4 million) starting from the date of the extension.

The licence extension will reduce its net losses by the same amount, the company added.

The Capital Market Authority on Sunday suspended trade in the shares of the kingdom's listed telecommunications operators after the government decided to extend their licences. In addition, the government said it would provide the firms with "unified licences" allowing them to offer all telecommunications services. It did not give details.

Atheeb Telecommunication Co said on Monday that the government's decision would reduce the company's annual costs by 9.7 million riyals ($2.6 million).

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