Atheeb agreement with ZTE Corporation
Etihad Atheeb Telecommunication Co has recently signed a settlement agreement with ZTE Corporation, under which the service supplier ZTE will waive SAR 110 million in receivables.
Atheeb is the leading telecom operator in Saudi Arabia and has been focused on the construction of the WiMAX network since it was awarded a Fixed Telecom license in 2007. In the past two years, ZTE and Atheeb have been working closely on a series of system tests to ensure the WiMAX network operates with maximum efficiency.
ZTE would also provide the Saudi telecom operator with equipment to compensate for its noncompliance with a previously signed agreement with Atheeb.
The financial impact of the agreement will be represented in SAR 22 million in the form of other revenues, resulted from waived commitments and assets, the Saudi telco said in a statement.
In addition, Atheeb would appoint a consultancy firm to evaluate the waived assets in terms of their fair value.
Moreover, Go signed an agreement with ZTE to raise the capacity and efficiency of the main network and infrastructure.
The deal’s value amounts to SAR 47 million and will be valid for 5 years, starting 28 July 2016, the statement said.