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29-Jun-2016

Low-spectrum allocation costs Mobily more than SAR1bn a year in additional capex

Mobily [7020.SE] incurs more than SAR1bn of additional capex each year to compensate for its low-spectrum allocation, according to Akeel Al Akeel, President of Regulatory Affairs at Mobily. Al Aqeel stated that the company has low spectrum allocation compared to Saudi Telecom Company (STC) [7010.SE] and Zain KSA [7030.SE], especially in the 1800 Mhz band. This leads to an additional capex of cSAR1bn/annum as the company compensates the low-spectrum allocation with more base transceiver stations. (Al Sharq Al Awsat)   Saudi Telecom Company: SAR63.95 as of 28 June 2016, Rating: Buy, FV: SAR79.00 per share, MCap: USD34,107 million, STC AB / 7010.SE

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