Ooredoo separates fibre and subsea assets to power regional growth
With global bandwidth demand on the rise and AI-driven cloud expansion reshaping traditional traffic corridors worldwide, Ooredoo’s decision to establish an independent business dedicated to international subsea cable and terrestrial fibre connectivity signals a shift in strategic intent. Rather than simply expanding capacity, the carrier appears to be reorganising its infrastructure to compete more assertively in the wholesale and transit arena, where scale, route diversity, and commercial agility increasingly define market leadership. The Middle East is fast emerging as a key route, and Ooredoo is manoeuvring itself to transform from a national operator into the Middle East’s regional connectivity powerhouse.
The newly announced Ooredoo Fibre Networks (OFN) will serve as a specialised vehicle to carry out its strategic investments in submarine cables and terrestrial fibre. The business will house Ooredoo's international connectivity assets and projects under a dedicated umbrella, as the group pushes to meet the demand for resilient, high-performance data routes driven by hyperscalers, cloud providers, and AI platforms. It’s expected that the new fibre networks company to be completed by 2027.
By carving out its international subsea and terrestrial fibre operations, Ooredoo is doing more than simply repositioning assets; it is providing the strategic and financial freedom it needs to succeed. Spinning off the unitallows it to be financially independent from the carrier’s non-wholesale operations, enabling it to be more open and transparent to potential investors.
Having a dedicated infrastructure business, Ooredoo can support its own business needs in the region while supporting the wider wholesale market. The Middle East is fast emerging as a key transit route connecting Asia, Europe, and Africa, with demand for reliable, high-capacity routes continuing to rise among hyperscalers, service providers, and enterprises. This announcement will enable the carrier to compete at scale with its peers in the region, including stc, Mobily, and e&. Additionally, this announcement has the potential to create new co-investment opportunities in new routes for the company.
Brendan Swan, Senior Analyst at GlobalData, said, “The emergence of Ooredoo Fiber Networks will likely cause some disruption in the market, with incumbents looking to protect their turf and maintain their status in the region.”
“Especially for international operators who are looking to interconnect in the Gulf region, a new commercially focused wholesale company could help streamline access while stimulating competition. At the same time, greater availability of subsea and terrestrial assets may have a positive impact on wholesale pricing dynamics, especially on high-demand corridors.”
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