Vodafone IoT has signed a network access agreement with Saudi telecom operator Mobily, marking its first foray into the Saudi market. The partnership enables Vodafone customers to use Mobily’s Narrowband IoT network, which reportedly covers 99% of the country’s geography.
This agreement ensures that Vodafone’s IoT services comply with local regulatory requirements. Customers using Vodafone’s Business Global SIM+ offering, designed to minimize disruptions in highly regulated markets, can now connect to Mobily’s network.
Salman Bin Abdulaziz Al Badran, CEO of Mobily, stated that the collaboration will focus on delivering IoT solutions to enterprise and government sectors, creating new operational efficiencies and investment opportunities. Mobily, founded in 2004, is Saudi Arabia’s second-largest telecom operator with 11.7 million subscribers as of September 2024.
The deal also strengthens Vodafone’s relationship with Emirati investment group e&, which holds a 28% stake in Mobily and a 15% stake in Vodafone. This partnership is part of a broader strategy to collaborate in growth areas, including IoT, as seen in their 2024 partnership with Mercedes-Benz to provide IoT connectivity for in-vehicle services in the UAE.
Vodafone’s push to expand IoT connectivity in the Middle East aligns with its broader goals to extend its global service availability. Since launching its Managed IoT Connectivity platform in 2010, Vodafone has expanded its IoT services to more than 180 countries, utilizing over 580 international networks. In 2024, Vodafone spun off its IoT business in collaboration with Microsoft, further expanding its partner network with tech giants like AWS and Celfocus.
Despite recent growth challenges in its IoT segment, Vodafone continues to expand its customer base, with 194 million IoT connections as of September 2024, aiming to surpass 200 million soon. The IoT business remains a significant contributor to Vodafone’s revenue growth, particularly within its Digital Services umbrella.
