Riyadh: Communications and Information Technology Commission (CITC) Saudi Arabia's regulatory body announced Monday new investment opportunities and the process to issue new licenses for fixed and mobile telecommunication services.
The Kingdom is further liberalizing its information and communication technology (ICT) sector to promote healthy competition and also to fulfill its commitment to World Trade Organization (WTO), said Dr. Muhammad Bin Ibrahim Al-Suwaiyel, CITC Governor at a joint press conference in Riyadh Monday.
Other CITC officials present at the press briefing include Siddique Al-Tayyib, Director General for Licensing, Engr. A.R. Fuhaid, Deputy Governor for Procedures and License Registration, Sultan Malik, General Manager for Policies and Market Studies and Ameer Al-Jibreen, an official at CITC. Dr. Suwaiyel said: "Today we announce to you the beginning of a new era of total liberalization of the Kingdom's ICT sector and thus ending monopoly over it by the end of 2006, when the process of issuing licenses to new operators both in landline and GSM categories."
The CITC has launched a key licensing process, which will lead to selection and awarding of new licenses to fixed and mobile phone operators by the end of 2006. Dr. Suwaiyel said there is a high demand for fixed and mobile phone services in the Kingdom. The issuance of licenses to new operators means there will be healthy competition leading to affordability of prices and a whole range of new services in the ICT sector.
The CITC licensing process starts with a public notice, which calls for consultation on "regulatory framework". The CITC encourages all interested parties to review the "Fixed and mobile licensing 2006 at its website www.citc.gov.sa and submit their views by May 6, 2006, through e-mail to 2006licencing@citc.gov.sa This email address is being protected from spam bots, you need Javascript enabled to view it or in sealed envelope to CITC, P.O.Box 75606, King Fahd Road, Riyadh.
Engr. Siddique said the CITC has also planned a series of road shows within and outside the Kingdom during this year with presentation of its policies to liberalize the ICT sector. The CITC has considered three options for future regulatory regime which is specific to technology and services and in terms of geographical regions. The options are: a) to issue only national licenses, b) to issue only regional licenses, or c) to issue national and regional licenses simultaneously, with future licensed services providers having the right to choose which service area(s) to rollout in. The regional licensing approach would be in consonance with the existing 13 districts definition. However the definition of a region for the purpose of the future fixed services regulatory framework could be a combination of contiguous districts.
Comments Invited
The CITC invites all interested parties to submit written comments on any issue they believe relevant as regards to the proposed fixed and mobile services regulatory framework. Comments of interested parties will be taken into consideration, "but the CITC is under no obligation to adopt them," said Engr. Siddique.
While submitting their comments the interested parties can specify their contact details such as name of the party (and all related parties if the respondent is part of a consortium) in addition to address(es) and phone number(s).
The interested parties are requested to indicate the number of the corresponding paragraph of Public Consultation Document (available on CITC website) which they refer to.
All comments must be received by the CITC no later than May, 6, 2006.
The CITC has so far issued two licenses in GSM, two data operators, four for VSAT and 30 licenses to Internet Service Providers (ISPs).
The schedule for licenses for 2006 starts with a consultations on policies and licenses in the second quarter of 2006. In the third quarter of 2006 the CITC will publish the licensing criteria which is also time for development of licensing criteria. The CITC will invite application forms in third and fourth of quarter of 2006. This will finally lead to awarding of licenses which is expected to begin in early 2007, Engr. Siddique said. Factors that attract the investors: Factors such as low governmental fees and no personal income tax are some of the benefit that attracts the investors in the Kingdom.
Saudi Arabia is one of the relatively fast growing population at a 2.5 percent (2004-05) which can be compared with world's growth rate of 1.21 percent. The country's 23.4 million people are under the age of 20 years.
The CITC continuously exerting efforts to adopt best practices and to achieve a complete liberalization of the ICT sector in Saudi Arabia.
Other drivers for ICT investments in KSA are its healthy economy, which is coupled with abundant natural resources, young educated population, high disposable income and low consumer debt, and high percent of foreign workers (around six million), under-served telecom market, two GSM operators and only one landline telephone company.
By Shahid Ali Khan
The Saudi Gazette 2006
