Following the High Order issued on 30-12-1437H corresponding to 01-10-2016 opening the possibility to Saudi-licensed telecom companies to (i) extend their licenses for 15 years against an annual fee of 5% of the annual net income throughout the extension period; and (ii) obtain a unified telecommunication license allowing them to provide all telecommunication services, Mobily confirms its strong interest in principle to extend its license and to obtain a unified license subject to acceptable terms and conditions.
Mobily believes that a universal license will improve its positioning in the Saudi market as it will enable it to offer a complete range of telecommunication services, including voice services and triple play offers, that would benefit its consumer and business segments. It also considers that an extension of its license provides a higher level of sustainability and predictability of the business.
While it is difficult to determine the impact of a universal license as its terms and conditions have not yet been communicated, the yearly positive impact of the extension on the P&L over the next few years is estimated at an amount of up to 260 MSR. Mobily is assessing with its auditors the final amount depending on the relevant accounting treatment.
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