STC in Deal for Submarine Cable System

RIYADH, 7 February 2008 — Saudi Telecom Company (STC) has signed a deal with an international consortium that will build and maintain an undersea cable linking Europe to the Indian subcontinent via the Gulf.

It has signed a memorandum of understanding (MOU) with a consortium of major international companies to construct a submarine cable system, I-ME-WE. The agreement between prominent communications companies in France, Italy, Egypt, the UAE, Lebanon, Pakistan and India will establish a high-speed sub-marine cable between Saudi Arabia, France and Italy and passing by Lebanon and Egypt, and circling the UAE, Pakistan and India.

The MOU will also address regional bandwidth requirements. The companies that have signed the MOU have awarded the contract to construct the I-ME-WE submarine cable to Alcatel-Lucent, the world’s most prominent global company in the telecommunications sector.

The I-ME-WE project is expected to become operational in the fourth quarter of 2009.“The I-ME-WE project lies within (STC)’s strategy to develop its international telecommunications network in order to satisfy increased demands for different phone and Internet services both in the Kingdom and in the region.” said Saud Majed Al-Daweesh, the CEO of STC.

It will also enhance our global investments and expansion plans that started with Malaysia, Indonesia, and India and lately developed to include Kuwait, Turkey, and Africa.