Saudi Salam plans to sell optical fiber to TLS
Riyadh – Integrated Telecom Company (Salam) has announced its intention to sell all of its fiber optic network assets and components to Technical Links Services (TLS). TLS is a limited liability company, founded by Mawarid Holding Company (MHC) in 2020. TLS obtained a license for wholesale infrastructure services from CITC in 2021.
Salam has received CITC approval for a three-phase implementation plan to transfer all of Salam’s fiber optic network assets to TLS. According to the “implementation plan”, the asset repositioning process between Salam and TLS will be extended until the end of 2024. In addition, Salam will lease segments of the fiber optic network infrastructure to TLS based on of his needs.
The two companies have reached a sale agreement for the first phase of the transfer of all assets of the fiber optic network with 1,276 million Saudi riyals. The assets sold in the first phase will include the pits and dark fiber optic cables owned by Salam Company, with 537,000 access points spread across several cities and neighborhoods in the kingdom.
It should be noted that the financial impact of the first phase of asset sales will appear in Salam Company’s financial statements for the first quarter of 2022 and will not affect Salam’s income statement. Once the sale is completed, TLS will become one of the largest telecommunications service providers for the Kingdom’s fiber optic infrastructure.
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