Tata Communications secures local telecom license in Saudi Arabia to expand internet services

NEW DELHI: B2B telecom solutions provider Tata Communications has secured local license in the Kingdom of Saudi Arabia to expand its internet connectivity, public/private cloud, cyber security, and SD-WAN services to large enterprises and MNCs in the region.
The type B license “entitles Tata Communications to provide Internet Service Provider (ISP) and related telecom services to enterprises in a defined capacity, along with local currency billing for end-customers in KSA,” the company said in a statement on Tuesday.

“Prior to this, as a foreign carrier, we either jointly provided global solutions with or channel local requirements through our local licensed partners in the region. This limit us from offering end to end solutions such as data centre services, local internet access, etc,” said Vaneet Mehta, Associate Vice President and Region Head, Middle East, Central Asia & Africa, Tata Communications.

“This license makes us a local licensed service provider, offering carrier neutral services to the enterprises in the Middle East. The license also gives us the opportunity to now serve not just the B-end, but the A-end requirements of our customers as well.”

The telecom company’s shares ended 2.92% lower at Rs 681.05 on BSE on Tuesday, even as the benchmark Sensex rose 1.30%.

Tata Communications’ investment in Saudi Arabia to secure the license will enable the company to expand its presence in the Middle East.

Tata Communications carries around 30% of the world’s internet routes and connects businesses to 60% of the world’s cloud giants and 4 out of 5 mobile subscribers, the company said. It also owns the world’s largest subsea fibre network that connects more than 200 countries and territories.