PHOTO
Saudi Arabia now has seven licensed mobile telecom companies operating inside the Kingdom, four of which are MVNOs
RIYADH: The Communications and Information Technology Commission (CITC) announced that it has awarded licenses to two new mobile virtual network operators (MVNOs), bringing the total number of mobile telecom companies inside the Kingdom to seven. The new companies to be given the licenses, after winning a competition announced by CITC in February 2021, are “Integrated Telecom Mobile Company” (ITC Mobile) and “Future Networks Communications” Company, doubling the number of MVNOs inside the Kingdom. In 2014, CITC awarded the MVNO licenses to Virgin Mobile KSA and Etihad Jawraa.
During the licensing ceremony, H.E. Mohammed Al Tamimi, Governor of CITC, mentioned that licensing MVNOs comes in line with the Commission’s plans to stimulate the investment environment for Saudi Arabia’s telecom sector. “ At CITC, we aim to enhance the level of competitiveness in the sector, and improve user experience, by facilitating additional service providers,” he said. Al Tamimi also highlighted telecom service providers as important partners in transforming the Kingdom into a digital society, a key component of Vision 2030, who can contribute to innovation in telecom, mobile data, and internet services.
Companies with MVNO licenses can provide users with services, including voice calls, internet, SMS, voicemail, media services, and more, without owning any towers or frequencies. The provision of these services depends on the MVNOs renting or purchasing capacities from service providers with infrastructure and then providing services to subscribers.
The granting of MVNO licenses to two new market entrants reflects the level of competitiveness in Saudi Arabia’s ICT sector, which enjoys attractive advantages for local and international investors, including robust infrastructure, high user penetration, and a clear strategy. The Saudi telecommunications sector is estimated to contribute 5.3% to the national GDP, with a market size that reached SAR 69 billion in 2020, growing by 4% from the previous year. Capital investments of telecom service providers amounted to SAR 17.6 billion in 2020, and the mobile telecom services penetration reached 135.5%.
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
