Saudia Arabia’s STC commits to five-year network upgrade programme with Ericsson

Saudi Arabia’s largest telecoms operator, STC Group, has reinforced its long-term network strategy with a five-year framework agreement with Ericsson, signalling a renewed push to scale advanced 5G capabilities while laying the groundwork for future 6G services.

The Master Frame Agreement (MFA) extends a partnership that dates back more than a decade and underpinned some of the kingdom’s earliest 5G deployments. This latest phase reflects a shift in focus from rapid coverage expansion towards network intelligence, automation and service differentiation, which are key pillars of Saudi Arabia’s wider digital transformation agenda under Vision 2030.

Rather than a single technology upgrade, the agreement spans multiple layers of the network stack. It covers radio hardware and software, cloud-native platforms, advanced network management and AI-driven managed services, as well as infrastructure support that includes third-party components. The breadth of scope highlights how operators are increasingly treating network modernisation as a continuous capability-building exercise rather than a series of discrete rollouts.

“This long-term agreement with Ericsson reinforces STC’s commitment to driving digital transformation and innovation in Saudi Arabia,” said Abdullah M. Alowini, supply chain vice-president at STC Group. “By leveraging advanced technologies, we aim to deliver cutting-edge connectivity that empowers our customers, accelerates enterprise innovation, and supports the kingdom’s ambition to build a globally competitive digital economy.” 

At the radio access level, STC plans to accelerate deployment of technologies such as 5G Standalone (SA), 5G Advanced and Massive MIMO. These capabilities are seen as essential for unlocking features beyond basic mobile broadband, including lower latency, higher uplink performance and more deterministic quality of service. Ericsson’s Radio System portfolio will form a core part of this expansion, building on existing sites and spectrum assets.

Cloud-native architecture is another central theme of the agreement. As networks become more software-driven, operators are increasingly adopting containerised, cloud-based platforms to improve scalability and resilience. For STC, this approach supports faster introduction of new services and more flexible capacity management, while also aligning with national ambitions to build a digitally native economy.

Operational efficiency is also a key driver. Through expanded use of Ericsson’s managed services and AI-assisted network management tools, STC aims to move towards more autonomous operations. Self-optimising network functions can dynamically adjust parameters such as capacity, energy consumption and fault resolution, reducing manual intervention and improving overall service quality.

Håkan Cervell, vice-president and head of Ericsson Saudi Arabia, added: “We know how committed STC Group is to ensure that Saudi Arabia’s Vision 2030 becomes a reality. We share that commitment and will continue to work closely and productively with STC to deliver digital infrastructure to drive innovation and economic competitiveness goals – both for STC as a valued customer and for the vital role they have to make Saudi Arabia Vision 2030 a reality.”

From a strategic perspective, the agreement positions STC to address rapidly growing traffic demand across both consumer and enterprise segments. Data usage in Saudi Arabia continues to rise sharply, driven by video, cloud services and emerging applications such as immersive media and IoT. At the same time, enterprises are demanding connectivity with clearer performance guarantees rather than best-effort delivery.

Looking further ahead, both parties emphasised that today’s investments are also about readiness for what comes next. While 6G standards remain several years away, concepts such as cognitive networks, AI-native design and extreme performance requirements are already influencing how operators architect their networks. By adopting cloud-native platforms and automation at scale now, STC is seeking to avoid costly redesigns later.