Annual Report 1438 - 1439 2017

Custodian of the two Holy Mosques King Salman Bin Abdulaziz Al Saud His Royal Highness Prince Muhammad bin Salman bin Abdulaziz Al Saud

Crown Prince Deputy Prime Minister Minister of Defens Chairman's Statement 10 Achievements and International Participation 104 Governor's Statement 12

Executive Summary 16 Media Activities 116

Organizational Framework 28 Studies and reports 126 ICT sector within the National Transformation 32 Program 2020 Indicators of the ICT Sector in the Kingdom 132 Update the CITC Strategy 36 Overview of the major future Current Situation of the CITC 43 plans of CITC in 2018 142

Main Activities and Achievements 48 Appendices 148 1-6 ICT sector development 48 2-6 Licenses 71 Appendix A: Resolutions of the Board of Directors 148 3-6 User protection and transparency 82 Appendix B: Issued Licenses 149 4-6 CITC efforts to serve the guests of God in 1438H 98 Appendix C: Final accounts 150 10 11

The CITC is ambitiously moving In line with the CITC strategic supporting the sector and enabling protecting the rights of users, King Salman Bin Abdulaziz and forward towards achieving the ICT development plan initiated it to play a major and active role providing high quality services and the Crown Prince, His Royal sector’s strategic objectives as in 2017, the ICT sector has in the national economy while products, enhancing the capacity Highness Prince Mohammed bin part of the Kingdom's Vision 2030. witnessed over the past year increasing its contribution to the of the sector locally, regionally Salman bin Abdulaziz - may God The aim is to create a competitive, significant progress and changes Kingdom›s GDP. and internationally, attracting protect them. Our deep thanks go balanced and diversified economy to further meet the aspirations investments, and reinforcing the to both of them for their support based on innovation and knowledge of the Kingdom’s leadership and The CITC plays a supportive use of ICT resources while turning and to each and everyone who left in view of achieving sustainable citizens, through the revision of and complementary role to the its concepts and uses into a tool their mark in those achievements development and improving the regulations and legislations, along Ministry of Communications and to reduce the digital divide and namely the Governor of the CITC, quality of life of Saudi citizens with the expansion and promotion Information Technology with the reach a knowledge society. the Board of Directors and all CITC through the implementation of ICT markets as a means for aim to adopt a strategy based on staff members for their dedication of a number of initiatives. It is introducing new and sophisticated a clear vision for the sector by The current report documents the and faithfulness. expected to have a positive impact services to meet the needs of creating and enabling legislative most significant achievements by on scaling up the CITC activities beneficiaries, namely individuals and regulatory environment for the CITC during 2017 thanks to the Minister of Communication and Information Technology and thus contributing to economic and the business and government competitive markets, encouraging support and encouragement of the Chairman of the Board of Directors growth. sectors. It all contributed to creativity and innovation, Custodian of the Two Holy Mosques Eng. Abdullah Bin Amer Al Sawahah

Annual Report 2017 12 13

The world is nowadays witnessing the Crown Prince, His Royal It is responsible for regulating During the year of achievements I would like to address my deep an tremendous development Highness Prince Mohammed the ICT sector, stimulating it and documented in this report, the thanks and appreciation to the in the ICT field and its various bin Salman bin Abdulaziz, has optimizing its uses for sustainable CITC honored the Kingdom staff of the CITC for their dedicated applications, a development led positively responded to those development. The CITC activities in through its significant and efforts, especially the Chairman by what is known as the ‘digital major developments through 2017 focused on four major areas: distinctive presence on the of the Board of Directors and their transformation’ which has a Saudi Arabia Vision 2030 and the developing the ICT sector for more international scene. Its activities Excellencies the members of the deep impact on peoples’ lives National Transformation Program efficiency; incentivising the ICT included the production of Board. What has been achieved everywhere in the world. This 2020 which identified several services market by regulating and information materials for is undoubtedly the result of the transformation is instrumental for initiatives that are under way with facilitating licensing; improving awareness raising, market wise directions by our leadership improving the human well-being, the aim to meeting the desired service quality and protecting studies and the development of that is looking for a bright future for the efficiency of actions and aspirations. user rights; meeting the needs of indicators for assessment of the thanks to God’s help. God guide us performance, and for addressing pilgrims in the Two Holy Mosques various sector-related issues. The on the right path. a wide range of difficulties and The CITC is one of the main bodies region. The Commission has made CITC is committed to constantly challenges. Saudi Arabia, under involved in the implementation outstanding breakthroughs in modernizing and developing the the leadership of the Custodian of the National Transformation these four areas, as described in ICT sector in order to safeguard Governor of the CITC of the Two Holy Mosques, King Program which is seeking to this report. the prominent position of Saudi Vice Chairman of the Board Salman bin Abdulaziz, and achieve the Kingdom’s vision. Arabia in that field. Dr. Abdulaziz bin Salem Al Ruwais

Annual Report 2017 1 Executive Summary 16 17 3 1 The ICT sector within Executive Summary the 2020 National Transformation Program The Executive Summary provides a brief overview of the 2017 CITC annual The Kingdom of Saudi Arabia›s Vision 2030 in- report covering the following themes: cludes three main areas to create “an ambitious the organizational framework of the homeland, a vibrant society and a thriving econo- The CITC organizational The transformation CITC; the transformation of the ICT my”; the 2020 National Transformation Program framework in the ICT sector sector; the CITC strategy; the CITC cur- consists of an initial phase of translating the Vi- rent situation. The major activities and sion›s objectives into reality. The Program offers achievements of CITC are related to a number of initiatives related to implementation four main areas: developing the sec- plans shared by various government agencies. tor, licensing, and protection of users; The CITC is one of the most important bodies serving the pilgrims; achievements involved in the implementation of the Transfor- and contributions on the international mation Program initiative and in achieving the Vi- level; its media activities; its studies; sion›s objectives. the ICT indicators it adopted; its future The CITC The CITC plans for 2018. strategy current situation 4

Updating the CITC Guarantee the availability of strategy ICT services and optimize the infrastructure The CITC has prepared its strategic plan for the period 2016-2020, taking into account the devel- 2 opment plans in the Kingdom, the current situa- Organize the sector and tion of the ICT sector, and the existing frameworks enhance competition The CITC organizational and regulations in comparison with international best practices. The strategic plan has been up- framework dated during the last quarter of 2017 to comply with the sector’s latest trends and directions, and The CITC is responsible for orga- Protect users to be fully aligned and integrated with the nation- nizing and regulating the ICT sec- al digital strategy set forth by the CITC in view tor in the Kingdom. It has a legal of organizing the efforts of the Ministry and its capacity and is financially and ad- relevant bodies. The Strategy includes four main Develop and protect the Kingdom’s ministratively independent. areas: interests and reinforce its position on the regional and international The National Transformation Program 2020 levels

Annual Report 2017 18 19 5 CITC organization In 2017, the CITC developed its orga- CITC nizational structure in line with the employed staff ICT sector’s new regulatory circum- 411 stances and requirements. The or- ganizational structure includes four Adopted strategy and regulations departmental sectors: the regulatory related to the management of and competition sector; the technol- specific frequency bands for the 99.52% deployment of IMT systems. ogy sector and infrastructure; users Saudi citizens and partners-related sectors; and the institutional support sector.

As of the end of 2017 the CITC em- ployed 411 staff, with 99.52% of the Mandate procedures for tariffs staff members being Saudi citizens. approvals of ICT services for the SR protection of user rights. 6 Main achievements Launched a project to review and update and activities reference offers (ROs) for network access and interconnection services to 1- ICT sector ensure a fair and transparent regulatory development issue a regulation for environment for all telecommunication Set a regulation to guarantee voice call termination service providers. the quality of ICT services. Drafted regulatory framework rates on mobile and for cloud computing. fixed communication networks.

Updated the municipal regulations related to In order to promote geographic reach and availability of universal services communication towers in order to improve the throughout the Kingdom, the CITC established the Universal Services Fund (USF) quality of service and increase Internet speed for this purpose. By the end of 2017, the USF had completed implementation of eleven financed projects while three more were underway. These USF projects enabled provision of ICT services to 19,356 households in rural areas of the Prepared regulation for the deployment of Kingdom. ICT networks in the new urban development areas to promote infrastructure availability. The Fund has been further expanded to support broadband investment in remote areas.

Annual Report 2017 20 21 2- Licenses

The number of valid licenses issued by CITC for providing ICT services was 329 at the end of In terms of numbers allocations, the 2017. CITC also issued a license that allows the 329 Commission has implemented a national leasing of telecommunication facilities which numbering plan for the allocation of are part of the GCC Interconnection Authority, to licenses numbers to different entities to meet the telecommunication service companies licensed market requirements. to operate in the Kingdom.

As for frequency licensing, in 2017 the CITC In terms of registering Internet domains in held the first auction for the award of the Kingdom, the Commission approved frequency bands to IMT services in order to 5,039 new domains in 2017. The number of meet the need for more frequencies within issued domains totaled the mobile telecommunication market and to set fair prices; it also responded to various domains spectrum management requirements. 51,953 www. In terms of type approval of ICT devices, the number of approval certificates granted by the CITC in 5403 2017 was 5403. licenses

Annual Report 2017 22 23

3- Serving the Pilgrims 4- Protection of user rights To maintain a secure operating environment for ICT services, the CITC has The CITC has been continuosly seek- once again given the issue a special ing to provide high quality ICT services attention through the National Center for Information Security, which currently to pilgrims during the Hajj season and Updated regulations related to consumer Developed measures to reduce spam operates within the National Center for protection for users of ICT services, the holy month of Ramadan with the in- Cybersecurity. Furthermore, a Guide to covering 14 categories. Regulations have creasing demand for diverse services Information Security Policies and been updated to guarantee the promotion and the need for more capacities in the Procedures in the Public Sector was and strict enactment of user rights. Two Holy Mosques area. As a result, published. 50 government agencies signed during the Hajj this year alone, 700 mil- The CITC received 95,617 complaints up to the Guide's recommendations. lion calls were successfully complet- from ICT services users in 2017. The Commission developed a complaints ed over the networks and 23 thousand system and built partnerships with Terabytes of data were transferred. The CITC has succeeded in solving 4,651 The CITC has made available online all the service providers to resolve the network security violation cases through applications for complaints regarding causes of complaints, in addition to the competent Committee. provision of voice and video as well as activating a number of other solutions data communication services. to reduce the number of complaints and increase user satisfaction. The CITC monitors conformance of service The beneficial outcomes of these providers with national regulations measures should become visible in regarding citizens' exposure to 700 Developed and published indicators of 2018. electromagnetic radiation from ICT million quality of services provided by different infrastructure. The CITC is keen to maintain calls were successfully service providers, depending on the and improve the quality of mobile completed during the number of complaints received from As for Mobile Number Portability telecommunications services; therefore, it hajj this year users, in order to enhance the Service, the CITC is ensuring launched joint projects with a number of transparency and competition in the ICT operational continuity of this service universities in the Kingdom to conduct 23 services market. thousand with more than 800 thousand enacted quality of service and electromagnetic field transfers while monitoring the level measurements. Terabytes of data central database of ported numbers. were transferred The beneficial outcomes of these Established a special platform to measure measures should become visible in Established measures requiring service and test the quality of Internet services. 2018. providers to notify users of out-of-network calls.

In terms of Internet content filtering, traffic to sites that promote indecency, hate, violence, etc were blocked., a Developed and promoted informative total of 1,197,290 sites were blocked Updated and developed a fair network documents for consumers describing in 2017, a rise of 24% compared with usage policy to further protect user their rights and enactment the previous year. interests and enhance competition.

Annual Report 2017 24 25

7- International achievements 9- Studies and and participations Reports

The Kingdom realized a number of Arab Group specialized in the In- In 2017, CITC prepared and is- achievements at the international ternet of Things and Smart Cities. sued several studies and reports, level, including the leadership of It served as vice chair of the ITU most notably the Annual Report Extent of Internet User satisfaction with Overall satisfaction useage mobile services with fixed telephony the United Nations Commission Council working group on WSIS, on the Status of ICT business in services on Science and Technology for and is still chairing the ITU Coun- the Kingdom. The report pres- Development, the United Nations cil Working Group on International ents a study of e-commerce in Information and Communication Internet-related Public Policy Is- the Kingdom including review of Technology Council (CSTD), the sues, the SG20RG-ARB and one of the factors influencing adoption United Nations Educational, Sci- the Committees of the WTDC-17. of e-commerce by individuals and entific and Cultural Organization’s business sectors. The report out- lines the efforts made by various stakeholders towards developing this trade.

The CITC also completed a study 21689 of the ICT market in the Kingdom. 8- Media activities CITC prepared It covered major issues such as media materials the statistics of Internet usage and the levels of user satisfaction with both mobile and fixed tele- The CITC pursued its aware- commincation services. ness-raising activities while seek- ing to strengthen its campaign on anti-cybercrimes and penalties. The CITC prepared 21,689 media 10- Indicators Service providers' revenues materials which have been dis- tributed through traditional and The CITC established and moni- Capacity of international Internet electronic mass media channels. tored a number of indicators on connectivity the status of ICT services in the 21,689 is the number of media Kingdom, as well as other rel- ICT Contribution to the national materials prepared by the CITC evant market aspects and their economy impact on society. The indicators coveres the following topics: Spending on ICT services

Annual Report 2017 2

Organizational framework of the CITC 28 29

Organizational framework of the CITC

CITC is responsible for regulating sued pursuant to the Council of sector regulator which has a legal the ICT sector in the Kingdom. The Ministers resolution No. 74 dat- capacity and is financially and ad- Teleco Act issued by Royal De- ed 05/03/1422H (2001) and was ministratively independent. cree No. (M) 12 dated 12/3/1422H amended pursuant to the Council Create a favorable market Ensure effective usage Ensure development (2001) and its Bylaws, issued in of Ministers resolution No. 133 The Act lists a number of objec- conditions to promote and of frequencies of telecommunication 1423H (2002) provide the basis dated 21/05/1424H (2003). It de- tives as follows: encourage fair competition technologies to keep for the regulatory framework. fines the mandate and functions in ICT services pace with progress Also, the CITC Ordinance was is- of the CITC in its capacity as ICT

Ensure availability of Ensure clarity and Ensure the principles advanced and adequate transparency of of equality and telecommunications administrative procedures non-discrimination in services at affordable prices regulation

Safeguard the public interest and the interests of users and investors

Annual Report 2017 3

ICT sector within the National Transformation Program 2020 32 33

ICT sector within the National Transformation Develop indicators for measur- ing broadband service quality Vacate frequencies necessary for Program 2020 and making them available to providing broadband telecommu- the public to motivate service nication services in fulfillment of providers for improving their the National Frequency Plan. A plan for the transformation of service quality. Percentage of achievement 50% the ICT sector has been developed Percentage of achievement 90% within the National Transforma- tion Program 2020. The main challenges of the ICT sector have been identified; over the next five years, gaps in this sector will be filled to meet the requirements of the Vision 2030. Deploying the broadband infrastructure is one of the major challenges, hence the set of initiatives had been adopt- ed to address this challenge and meet the desired outcomes in the ICT sector.

The CITC started to execute the assigned initiatives as follows: Develop technical standards for Create a regulatory framework eastablishing the infrastructure for facilitating deployment of of ICT networks and integrate services and rising to the opera- them with civil construction tional challenges between oper- codes while maximising use of ators and municipalities existing infrastructure. Percentage of achievement 20% Percentage of achievement 100%

Annual Report 2017 4 Update the CITC’s strategy 36 37 Update the CITC’s strategy

The CITC has a strategic plan for be in conformity with the sector’s In the updated strategy, the CITC the years 2016-2020, taking into updated trends and in line with the focused on the regulatory ac- account the developmental plans national digital strategy prepared tivities which aim to achieve ef- Update and develop regulations, in the Kingdom and the ICT’s cur- by the Ministry of Communication fective competition, exceptional regulatory frameworks and rent situation, regulatory frame- and Information Technology to or- services for end-users, and in- related tools and align them work and action plans developed ganize the efforts of the Ministry vestment-stimulating environ- with best practices. with view on international best and its relevant bodies. This ex- ment through working along the Publicise the sector data through practices. ercise will be followed by further following axes: indicators and studies on ICT Enhance the investment update of the CITC’s strategic plan markets. environment of the sector by This strategic plan was updated in 2018. improving licensing procedures during the last quarter of 2017 to and related regulatory frameworks. Provide critical resources (frequency spectrum and numbering resources) Promote competition by developing and manage them in an effective way. means and procedures to assess the cost of service provision, control tariffs Contribute to performance Regulate the Develop ICT related regulations and ensure inspection. improvement among services in the standardization sector. ICT Sector and providers. Enhance the Level of Increase transparency through Competition the participation of stakeholders Develop infrastructure-related Facilitate the deployment of ICT in the formulation of regulations regulations and indicators. networks. Technology Develop and implement and the inspection and radio monitoring system. Infrastructure Raise the level of licensees Enable the use of modern ICT Establish regulations to commitment to the CITC regulations technologies in the Kingdom. ensure continuity of services in emergency and disaster and protect the rights of users, situations. Enact the legal system pertinent to the government, and service providers. ICT sector, provide legal support in fulfillment of the Commission's objectives, as well as prosecution and Develop regulations and litigation with third parties. indicators on the quality of Regulate frequency spectrum services and monitor the so as to ensure its effective networks performance. use

Annual Report 2017 38 39

Develop and Protect the ICT Related Enhance and upgrade a safe digital Interests of the Kingdom on the environment system Regional and International Arena

Measure the quality of Build efficient Internet serevices in the partnerships in Kingdom and contribute to the ICT sector its improvement.

Highlight the efforts and achievements of the Protection of Kingdom in the ICT sector Maintain and further enhance the Kingdom’s leading User Rights participation in international Manage and develop the Raise users' activities and bodies complaints system and awareness of their raise its effectiveness. rights and obligations.

Raise the standards of service Promote the Kingdom's representation in Benefit from the experience of provision for conformance with the relevant ICT regional and international telecommunication regulators in other rights of users. organizations and influence the negotiations countries and learn from best practices. to serve its interests.

Annual Report 2017 5

Current organisation of the CITC 42 43 Current organisation of the CITC

5.1 Board of Directors The Board of Directors is the high- est governing authority of CITC. It oversees its administration, con- H.E. Engineer ducts its affairs, and develops its general policy. The current mem- Abdallah Bin Amer Al-Sawaha Minister of Communications bers of the Board are: and Information Technology Chairman of the Board

H.E. Dr H. E. Mr. H.E.Eng. Abdulaziz Bin Salem Al Ruwais Ahmad Ben Mohammad Abdullah bin Abdulrahman Governor of the CITC, AL Suwaiyan Al-Kanhal Deputy Chairman of the Ministry of Finance Ministry of Communications BoardChairman of the Board and Information Technology

H.E. Dr. H.E. Dr. Abdullah bin Saad Almdimig Ziad bin Abdulaziz Al-Sheikh Ministry of Trade and Investment King Abdulaziz City for Science and Technology ويوضح امللحق ذو الرقم )أ(، أهم قرارات املجلس التي اتخذها خالل العام 1438/1439هـ.

Annual Report 2017 44 45 5.2 Organizational structure 5.3 Staffing Board of Directors Secretary General of the The CITC has reformed its organiza- Board of Directors The CITC seeks to recruit compe- tional structure during 2017 to be in tent and experienced staff to per- line with the modernized vision of the form its tasks and achieve its ob- sector and in accordance with its role jectives and to maintain a positive, as the regulator of the sector. stimulating and highly-productive work environment.

Telecom Violations Audit Committee Executive Committee committee

Internal Audit Violations Committee Assistance

Administrative Staff اﻟﻤﺤﺎﻓﻆ Communication 411 Governor’s Office Follow-up National Committee Office Secretariat for IT Society Consultants 99.52% Percentage of Saudis Institutional Users and Technology and Organization Support Partners affairs Infrastructure and Competition

Strategic Services Frequency Management Market studies Market and Planning Revenues Services Standards Standards and Frequency Financial Frequency Coordination Economic studies Economic Awareness-raising Awareness Spectrum Planning and Accounts studies raising Frequency Monitoring Public studies Planning

Documents and Administrative Devices Standardisation Procedures Communications Support Complaints Services Regulations Regulations Complaints Support and Quality Technology and Procurement and Services services Standardization and Licenses PMO project Complaints Examination Numbering National Plan Licenses Facilities and Branches

Human Resources Operations Information Security National Follow-up and Operations Tariffs and Market control International Human 0.48% Center for Services and analysis Planning and Development Infrastructure Interconnection Competition Relations Human Resources Development Resources Information Internet Filtering Security Emergencies and Private Projects Inspection International Relations and Representation Networks and Systems Legal support Inetrnet Services Development Percentage of non-Saudis ICT services Internet International Strategy Technical Support Prosecutuion and Litigation Legal Issues Domain Registration Services and Negotiations Follow-up of Resolutions

Operational Information Security Marketing and Media

Media

Public Relations Management Public Sector 3rd level 2nd level Administration 1st level Marketing

Annual Report 2017 6 Main activities and achievements 48 49 Main activities and achievements 6.1.1 The regulatory framework of cloud computing 6.1 Developing the ICT sector The Commission has studied and analyzed the experiences of dif- Since the ICT sector is an essen- ferent countries in cloud comput- tial component of advancement, ing regualtion taking into account efficiency and value creation feedback from the public con- throughout the economy, the CITC sulataions. The developed Cloud continued to provide and update Computing Framework aims at its activities in 2017 to develop the developing the ICT sector; pro- ICT sector in the Kingdom and ad- viding a conducive environment dress some of the challenges that to attract local and international hinder the progress of the sector. investments; localizing the cloud computing services; stimulat- In this regard, the Commission ing the adoption of solutions and sought to develop some regula- technologies in the Kingdom to tions and worked hand in hand improve performance, productivi- with other governmental stake- ty and flexibility of both the public holders to overcome some diffi- and private sectors; enabling the culties and continue to develop Knowledge Economy and Infor- the ICT services throughout the mation Society; stimulating indi- Kingdom. This section reviews the viduals and the public and private major activities and achievements sectors for digital transformation in this regard. to achieve the objectives of the National Transformation Program 2020, and the Kingdom’s Vision 2030.The Commission finalized the draft regulatory framework for cloud computing which is ex- pected to be published in the first quarter of 2018.

Annual Report 2017 50 51 6.1.2 Updating municipal regulations 6.1.3 Regulating the deployment of ICT related to telecom towers networks in newly developed areas

With the aim of reducing the time the way for prior coordination be- The draft regulation has been spent on infrastructure construc- tween infrastructure service pro- published for public consultation tion and on service provision in viders and developers; to develop in 2017 and is expected to be ad- the newly urbanised areas, and standards for the implementation opted during the first quarter of to avoid the repetition of costly of these networks and ensure the 2018. drilling works which cause dis- access of service providers to ICT turbance to the public, the Com- infrastructure in a fair, neutral mission aimed to develop regu- and non-discriminatory manner lations for the deployment of ICT in the newly developed areas. This networks in the newly developed new regulation should contribute areas by describing the rights and to the widespread geographic obligations of developers and in- availability of telecommunication frastructure service providers. infrastructure and enhance com- The objective is to implement the petition which provides high lev- external ICT network infrastruc- els of performance and options ture in the newly developed urban for users and helps reduce finan- areas; to build the physical infra- cial waste. Current and future telecom tech- of radio channels on the limited issued by the Ministry of Munici- structure within buildings; to pave nologies, namely 5G mobile tele- number of towers. This resulted pal and Rural Affairs as a means com technologies, require that in sharing data capacity among a to lower restrictions on sites telecom towers be situated close large numberof users, leading to where the building of telecom to each other and be inside resi- the low data speeds and unsatis- towers is allowed. The approval dential areas with high population fied mobile phone subscribers. included the building of towers in density. However, the previous residential areas and installation regulations of the Ministry of Mu- The issue was submitted to the of wall-mounted antennas on cer- nicipal and Rural Affairs did not competent authorities for consid- tain building facades; the building allow the building and setting up eration before eventually send- of telecom towers inside residen- of telecom towers and base sta- ing it to the Bureau of Experts at tial areas is to be in line with spe- tions in residential areas. They the Council of Ministers in view of cific regulations, taking into con- could be situated only on com- examining and updating some of sideration the urban planning of mercial streets which are usual- the municipal and technical regu- the districts. This new regulatory ly far from central areas in some lations relating to licensing wire- framework should lead to improv- residential districts, thus causing less telecom commercial devices ing the wireless service quality weak signals and poor quality of and positioning of telecom towers. and the speed of Internet access. service due to the large distances The highest competent authorities between towers and overloading agreed to upgrade the regulations

Annual Report 2017 52 53 6.1.2 Updating municipal regulations 6.1.5 Establishing ceiling for related to telecom towers international mobile roaming Voice call termination rates reflect end-user. The reason is the ob- • The price ceiling of wholesale prices between GCC countries Local calls inside roaming countries the compensation a service pro- served link between wholesale local voice-call termination vider receives from another ser- voice-call termination rates used rate on mobile telecom net- The Ministerial Committee for Post, International calls to any other GCC vice provider for routing incoming by service providers and their im- works to be 0.55SAR; Telecommunication and Information country calls to subscribers on its own pact on prices paid by the end-us- • The price ceiling for whole- Technology in each of GCC countries Receiving calls during roaming in GCC network, as portion of end-user ers. The Commission is seeking sale local voice-call termina- has approved the international mobile countries fees collected for those calls by to enhance and encourage com- tion rate on fixed telecom net- roaming price ceiling for GCC countries, the service provider originating petition in addition to providing works to be 0.21 SAR. which is the result of the efforts of the SMS sent during roaming the calls. These rates are regulat- telecommunication services at GCC Roaming working group; price ceil- ed by the CITC with the objective affordable prices. Based on the These prices are compatible with ings for the following telecom services Data service during roaming in GCC that it will contribute to reducing results of benchmark studies the global average according to have been applied: countries wholesale local voice-call termi- conducted by CITC and the exam- studies carried out by the Com- nation rates among telecommini- ination of the best international mission. cation service providers, and thus practices, CITC has approved the also reducing retail prices to the following in 2017:

SR Regulating wholesale local voice call termination rates on

fixed and mobile networks Local calls inside International calls Receiving calls SMS sent Data service the roaming to any other GCC during roaming in during during roaming in country country GCC countries roaming GCC countries What is the purpose of this decision?

Wholesale price Enhance and encourage ceiling 0.675 SR 1.688 SR 0 0.15 SR 1.875 SR competition

Provide telecommunication services at affordable prices From 10 halalas to 5.5 for mobile networks Retail price ceiling 0.938 SR 2.325 SR 1.050 SR 0.263 SR 3.188 SR

From 4.5 halalas to 2.1 The third phase of reducing wholesale price ceilings for these services will be initiated on 01/01/2018 for fixed networks followed by applying reduction of retail price ceilings for the same services on 01/04/2018.

Annual Report 2017 54 55

6.1.9 Project on reviwing 6.1.6 allocation frequency 6-1-7 Procedures for 6.1.8 Service quality the reference offers bands for International Mobile approval of ICT tariffs in measurement methods for network access and Telecommunication (IMT) systems the Kingdom interconnection The CITC adopted a strategy for ity and transparency in the fre- Aiming to regulate the ICT sec- The CITC wishes to improve the performance indicators to mea- The aim of the project is to review the management of allocated fre- quency award procedures for IMT tor and keep abreast of the latest quality of ICT services in the King- sure the quality of broadband ser- and update reference offers sub- quency bands for IMT systems systems; to achieve the principle technologies, the CITC has man- dom by stimulating investment vices and bring it to the attention mitted by the dominant service during the first quarter of 2017. of equality and non-discrimina- dated prior approval as a require- based on network’s quality, per- of the public in order to encourage providers for approval by CITC in The objective is to optimize the tion among service providers; to ment for all retail telecommu- formance and coverage to meet service providers to improve the order to ensure a fair and trans- utilization of this limited national prepare the ground and create nication services to ensure fair users expectation. The CITC no- quality of their services, and focus parent regulatory environment resource; to create an enabling an encouraging regulatory envi- competition in the ICT market and ticed the need to re-evaluate the on consumer service. Indicators for all telecommunication ser- climate for fair and effective com- ronment for the development and to protect user rights. This was current situation in the Kingdom will be provided in a comparative vice providers. CITC is currently petition in mobile services; to use stimulation of wireless communi- based on international bench- especially with regard to service way to ensure transparency and reviewing the reference offers the identified frequencies for IMT cation technology to keep abreast marking studies, analysis of best quality, complaints handling and enhance competition. A regulation which are expected to be adopted systems effectively and without of developments. international practices and the coverage. The CITC analyzed the is expected to be approved during and published before the end of interferences; to safeguard clar- state of ICT market development current status of QoS to identify the first quarter of 2018. 2018. in the Kingdom. gaps. It also developed a set of key

Annual Report 2017 56 57 6.1.10 Deployment of ICT services Projects of the USF and the Universal Service Fund In central areas, villages and Al-Hajar (Makkah) As part of its efforts to achieve others are underway. Thanks to is worth mentioning that the CITC the objectives of the universal these projects, services were pro- Board of Directors issued decision service policy and the right to uni- vided to 19,356 localities across 5-126-2017 (dated 16/10/2017) versal use and to implement the all areas and governorates of to move the USF to the Ministry of Number of central areas, Communications and Information strategic plan of the USF within the kingdom. The Figures below villages and Al-Hajar that technology. the approved time frame, the USF show the USF projects in the Cen- 3.788 were served finalized 11 projects while three tre, villages and remote areas. It

In the following governorates

Makkah Al-qanqadah Al-kamel 19,356 Bahra Al-Layth Al-Kharma

Northern Border Jeddah Adam Renieh AlJouf Number of central areas, villages and rural areas that were served Taef Rabegh Terbeh

Tbouk Hail Makkah Missan Al-jmoum Almuway Khalis Qassim Number of inhabitants

Medina Riyad 4,466,000

Makkah Around

eastern district Assir 713.000 Bahra Najran Inhabitants

Jazan

The Fund aims to with voice and Internet serve communities 5,000 access through wireless of less than Inhabitants networks

Annual Report 2017 58 59 Projects of the USF Projects of the USF In central areas, villages and Al-Hajar (Medina) In central areas, villages and Al-Hajar (Riyadh)

Number of central areas, Number of central areas, 2.018 villages and Al-Hajar that 1.857 villages and Al-Hajar that were served were served

In the following governorates In the following governorates Riyadh Al-aflaj Al-mazah Medina Yonbo Mrat Al-zalfi mieh Wadi al-fare Al-ala Al-dar’iya Chacra Rammah Al-khorj Howtat bona Sadek Medina Bader Al-mahd Al-dawadmi Tamim hreimla Al-hanakieh Khaibar AL-majmaa Afif Alghat Riyadh Al-qoayiya Al-salil Al harik Al-ais wadi dawaser Darma

Around Around 335.000 495.000 Inhabitants Inhabitants

Annual Report 2017 60 61 Projects of the USF Projects of the USF In central areas, villages and Al-Hajar (Eastern District) In central areas, villages and Al-Hajar (Assir Region)

Number of central areas, Number of central areas, 275 villages and Al-Hajar that 5.296 villages and Al-Hajar that were served were served

In the following governorates In the following governorates AL- Damam Al-jbeil Al-nayriyeh Abha belqarn Tathlith Al-Khobar Al-qatif Qariat al-alya Tanouma Al-namas rijal Alma’ Al-Ehsa’ Al-khafgi Al-Berek Mhayel Ahad rafida

eastern Al-adid Ras tanoura district Khamis Machit Barek south Dhahran Hafr elbaten Baqiq Tarib Almoujarada Bisha Sarat abida

Assir Around

147.000 Around Inhabitants 815.000 Inhabitants

Annual Report 2017 62 63 Projects of the USF Projects of the USF In central areas, villages and Al-Hajar (Al Baha Area) In central areas, villages and Al-Hajar (Al-Qasim)

Number of central areas, 934 villages and Al-Hajar that Number of central areas, were served 570 villages and Al-Hajar that were served

In the following governorates In the following governorates

Al-Baha Al-zinad Braida Albada’eh Bani hassan Al-Akik aklat al-soukour Al-assiah Al-qasim Beljerchi Kalwa ‘enneyza Al-modneb Al-mandak Al-hojra Alras ‘youn al-jawa Al-Mekhwat Al-qora Darieh riyad al-khobara’ Al Baha Far’at ghamed Al-nabhaniyeh Al-chamasieh Al-bakiriyeh

Around Around 208.000 304.000 Inhabitants Inhabitants

Annual Report 2017 64 65 Projects of the USF Projects of the USF In central areas, villages and Al-Hajar (Jazan) In central areas, villages and Al-Hajar (Al Jouf)

Number of central areas, Number of central areas, 2.612 villages and Al-Hajar that 145 villages and Al-Hajar that were served were served

In the following governorates In the following governorates

Alqaryat Al-daer Jazan Al-harath Al Jouf Al-darb Fifa Damd doumat aljendel

Al-rayth Sebya’ Fersan Tabarjal Al-idabi Abu Arich samta Skaka Houroub Ahad al-masarha Atawal Bech Al-arda

Jazan

Around Around 869.000 71.000 Inhabitants Inhabitants

Annual Report 2017 66 67 Projects of the USF Projects of the USF In central areas, villages and Al-Hajar (Najran) In central areas, villages and Al-Hajar (Northern borders area)

Number of central areas, Number of central areas, 466 villages and Al-Hajar that 124 villages and Al-Hajar that were served were served

In the following governorates In the following governorates Al -kharkhir Charoura Northern borders Ar’ar Rafha’ Badr eljanoub Thar Al-ouaykila Tarif hbouna Yedmeh

Khabach

Najran

Najran

Around

113.000 Around Inhabitants 37.000 Inhabitants

Annual Report 2017 68 69 Projects of the USF Projects of the USF In central areas, villages and Al-Hajar (Tbouk) In central areas, villages and Al-Hajar (Ha’el area)

Number of central areas, Number of central areas, 459 villages and Al-Hajar that 821 villages and Al-Hajar that were served were served

In the following governorates In the following governorates

Achamli Bak’a Tbouk Tayma’ Tbouk Ha’el Ha’el Al-souleymi Al-Beda’ Amlaj Mokak Al-ha’et Al-wajh Hakl Al-ghazala Al-chanan Daba’ Smeyra’

Around Around 116.000 243.000 Inhabitants Inhabitants

Annual Report 2017 70 71 6-1-11 Completed broadband 6.2 Licensing projects 6.2.1 Licenses to Provide Telecom Services One of the initiatives of the Transformation Program 2020 is the “expansion of the scope Individual and Class licenses to of USF investment in broadband for remote provide ICT services areas.” The target of this initiative is to in- Aiming to facilitate the process of ob- crease the coverage of wireless broadband taining telecom licenses for provision of networks (more than 10 megabytes per sec- ICT services, CITC launched the electron- The target of this initiative is to increase ond) in remote areas in order to cover 70% the coverage of wireless broadband ic licensing services portal which offers of households. During 2017, the scope of the possibility of issuing, renewing, can- networks (more than 10 megabytes per work for wireless broadband project no. 1 second) in remote areas in order to cover celing and/ or updating calss B licenses, has been completed. This project covers the while sending notifications to licensed governorates of Alqurayat, Domat Aljandal, entities. The total number of valid licens- Sikaka and Tabrja in the Aljouf administra- es was 329 by the end of 2017. Details of tive district; the governorates of Aluwayqilah, issued licenses are shown in Appendix B 70% Rafhaa, Tarif and Arar in the Northern Bor- Households ders administrative district; the governorates of Almajma’ah and Ramah in the Riyadh ad- ministrative district; and the governorates of Issuing the license for providing Alkhafji, Hafr Albatin and Qariyat Aloliya in Leasing Utilities Communications the Eastern administrative district. Facilities service to the Electrical Interconnection Authority of the GCC States 349 The total number of 325 329 CITC issued a Carrier Service Provider 309 315 (CSP) license to the GCC Electricity Inter- targeted localities is 292 129 connection Authority (EIA), which links the GCC countries by an electricity sup- Households 230 ply network which also has fiber optic lines extending along that network. The license will enable the EIA to lease fiber optic cables to facility based telecom- munication licensed companies in the Kingdom. It will also enable the owners of telecommunication facilities (fiber op- tic cables and towers) in the Kingdom to 125.232 lease the surplus of these facilities to fa- Households 2011 2012 2013 2014 2015 2016 2016 cility based telecommunication licensed companies that are licensed by the CITC.

Annual Report 2017 72 73 6.2.2 Licences for the use of radio frequencies First auction for awarding Provide additional spectrum IMT frequency bands for mobile networks In 2017, the CITC held the first auction of radio frequency spec- trum in the Kingdom of Saudi Arabia, in which total of 80 MHz of spectrum where offered in the 700 MHz and 1800 MHz IMT bands. The Commission auctioned 2016 2017 2018 2019 the IMT frequencies as the mobile market needs more spectrum re- sources to meet the increasing demand for mobile broadband In- ternet services. 260 80 210 130 MHz MHz MHz MHz Distributing frequencies to opera- tors through an auction is a well Spectrum allocated for Spectrum Additional spectrum to Additional spectrum to be established means for using mar- mobile broadband services allocated be provided for mobile provided for mobile ket mechanism to set a fair price in the Kingdom until 2016 in 2017 networks in 2018 networks in 2019 for spectrum and dsitribute it be- tween operators according the ac- tual demand. The CITC will contin- 340 MHz ue to auction other frequencies in New spectrum awards Total spectrum the coming years. In fact, this fre- expected to contribute to allocated by the quency award already contributed improving mobile Internet end of 2017 to increasing the average speed of access speeds by an mobile Internet access by more Awarded spectrum than 40% and it is expected that additional 60% or more. contributed to improving the making full use of the spectrum to be awarded next may contribute speed of Internet access to further improving mobile Inter- through mobile networks by net access speeds by an addition- more than 40% al 60% or more. 689 MHz 607 MHZ Germany now Britain now

Annual Report 2017 74 75 Frequency Spectrum management In 2017, many activities related to frequency assignment and monitoring were carried out. The following statistics illustrate the main activities in this area: 91043 4340 1121 52 618 5020 A total of 9,104 frequency 4,340 maritime licenses were issued and renewed using 1,121 reports about harmful Inspection of 52 sites was carried out to 618 frequencies were identified, 5020 frequencies licensed for assignments were renewed for frequencies for ships and recreational and fishing boats, 37 interference between ensure that institutions are using these monitored and dealt with for their use have been measured to use by government bodies, service amateur wireless licenses, 87 licenses for using amateur frequency users in the frequencies according to the technical impact on coverage beyond the make sure they conform to providers, and private institutions wireless frequencies and 1,842 licenses for wireless Kingdom have been reviewed specifications under which these borders of the Kingdom and which allocation conditions and companies in the Kingdom stations for aeronautical navigation and communications and resolved frequencies were licensed by the CITC originate in neighboring countries.

8861 2101 160&367 306 1982 9047 A total of 8,861 frequency 2101 Frequency allocations were 367 devices have been calibrated, 160 306 frequencies unlicensed 1982 frequencies have A total of 9047 allocated assignments were made for use by canceled due to implementation of devices for frequency spectrum have been monitored and been monitored to frequencies have been government agencies, service the National Frequency Spectrum management system have been repaired, addressed to the competent determine the scope of monitored to determine the providers, and private institutions Plan or because users no longer and technical measurements have been authorities to control the use for each in order to actual usage for each in order and companies in the Kingdom needed them performed for 495 wireless devices devices they are using and achieve the optimal use to achieve the optimal use of take legal action of frequencies. frequencies

Annual Report 2017 76 77

6.2.3 Licenses and accreditation of ICT devices 2011 5403 CITC creates technical standards accreditation Device licenses for ICT devices, delineates accred- applications itation procedures for devices and issues electronic customs clear- ance permits. During this year, the following was achieved: 8429 Studies248 of Permit applications for customs Confiscated ICT clearance devices

Licenses and accreditation of ICT devices

18500 18346 18439 18453

11194 13832 8757

5826

2600 2965 2011 2316 2055 973

2011 2012 2013 2014 2015 2016 2017

Accreditation application Customs clearance permits

Annual Report 2017 78 79

6.2.4 Licenses for numbering

The Commission is responsible the terms for numbers allocation, the first scope of numbers was lowed up several applications of ers. The following Figure shows tematic manner that coincides for preparing, managing, dissemi- licensing procedures and finan- allocated in 2011. The CITC allo- numbering resources and issued the details of mobile telecom with the needs of telecommunica- nating and periodically updatig the cial remuneration. In line with the cated another scope of one billion licenses to enable ICT service service numbers and geographic tion service providers National Numbering Plan to keep CITC’s efforts to ensure the avail- mobile phone data services from providers to meet their needs. calling numbers allocated by the pace with growth, to provide flex- ability of numbers that allow the machine to machine as well as Last year, 360,000 geographical CITC to ICT service providers. The ibility to accommodate new tech- provision of new services, a scope the applications of the Internet of contact numbers were allocated numbers of telecommunication nologies and services and comply of one billion mobile phone data things. The first scope of numbers to service providers with unified networks and services are a lim- with the recommendations of the services have been allocated, was allocated in 2014. license for infrastructure in addi- ited national resource to be main- ITU Telecommunication Stan- thus contributing to the deploy- tion to allocating other numbering tained and rationalized to support dardization Sector. The CITC sets ment of broadband services, and Last year, the CITC studied and fol- resources to ICT service provid- communication services in a sys-

Total number of geographic calling numbers allocated to service providers (million)

70.8 69.8 67.8 70.3 Total mobile service numbers allocated to service providers (million) 63.3 63.3 63.8 58.3 55.3 54.2 11.24

45.1 10.94 10.86 10.86 10.81 10.78 10.83 31.0 10.77 10.82 24.0 27.0 10.55 10.49 21.0

11.0 11.0 4.0 4.0 6.0 7.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Calling numbers from machine to machine Mobile data service numbers Public Mobile Numbers

Annual Report 2017 80 81

6.2.5 Saudi Network Information Center

60.000 51.953 50.000 46.904

45.000 42.098 40.000 37.547 www. 35.000 33.508

29.941 30.000 26.725 25.000 21.599 17.621 20.000 pub.sa 0.3% org.sa 3.4% 15.075 15.000 12.465 med.sa 0.77% gov.sa 3.6% 10.228 10.000 7.153 8.586 saudi 5.974 sch.sa 1.4% 4.7% 3.7984.899 5.000 218 1.347 2.817 1 9 33 edu.sa 2.6% sa 26% 0 com.sa 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 net.sa 3% 54%

Saudi domain names (.Sa and ry out a number of different tasks number of registered domains vices for Saudi domains. nationally, to have around 150 in addition to responding to Publication of an internation- devices around the world to about 3500 query tickets from registration and ad- and procedures by themselves, in to around 51,953. • (الســعودية. ministration is the responsibility a fast and flexible way. During this • The Kingdom is the first coun- al report describing the best serve Saudi domain names. scientists. of the Saudi Network Information year, the following actions were try in the Middle East and North practices of the Saudi NIC in • Receiving and processing Center (SauidNIC), and it operates registered: Africa implements DNSSEC. the support and management around 58,000 applications and accredits a number of import- • Organizing an introductory of Arabic domain names. for the registration services ant services provided to users. • Registration of around 5,049 workshop on DNSSEC and its • Increasing the spread of serv- of Saudi domain names (eg. This is done through an e-services Saudi domain names in the application ers for Saudi domain names Registration, modification, gate, which enables users to car- Kingdom, bringing the total • Providing the DNSSEC ser- locally, regionally and inter- deletion, renewal, transfer)

Annual Report 2017 82 83 3-6 User protection and transparency 6.3.2 Issue a document outlining the Termsof ICT service provision and the rights and 6-3-1 Updating the regulations governing obligations of users and service providers the protection of users rights

Terms of ICT service provision document

the deadline for user's right to claim A document regulating the invoices from 30 to 60 days, as of the relationship between the ؟ Increase user and the service provider ؟ date of issue of the invoice or the date of complaint. Filing a Complaint Shows the rights and obligations of each party. the processing time of complaint to the service provider from 15 to 5 days maximum, before the user Reduce utilises his/her right to submit a complaint to the CITC. Includes the general terms and conditions upon which the service provider provides its services to users. or change of any services provided to the user or demand of payment, No disconnection due to an amountsubject to complaint during its processing by Examples of the the service provider or CITC. document contents

Invoicing Roaming for Confidentiality of Credit Suspension and Transfer and CITC paid great attention to the 5 days from the date of filing the in a clear and transparent way, by mobile user information and limit cancellation of concession protection of ICT users’ rights and complaint, while also increasing deploying measures related to the communications services of service sought to promote these rights the user’s right to object to the processing and time of complaints by taking a number of measures invoices from 30 to 60 days along with frequently asked • To protect the rights of users, service provider provides its umentation, user and service in this respect. It developed from the date of issue. CITC has questions. The service provider the CITC issued a document services to users andit defines provider obligations, confi- a sector involvment with the amended Article 59 and Article should address the causes of entitled “Terms of ICT service the rights and obligations of dentiality of user information issues of users and partners 66 of the Telecommunications common complaints and prepare provision and the rights and each party. and communications, invoic- affairs, reviewed and updated Regulations on complaint regular reports accordingly. obligations of users and ser- • ing, credit limit, cancellation of the regulations for the protection processing and invoicing, It vice providers”, which governs • The issues addressed in the services and user complaints. of the ICT users rights, namely also required service providers the relationship between the document includethe proce- limiting the service providers’ to improve the measures and user and the service provider. dures to apply for providing processing time for complaints, mechanisms used to resole It includes the general terms services, requirements for from 15 days, to a maximum of complaints swiftly and accurately and conditions upon which the transparency and clarity, doc-

Annual Report 2017 84 85

6.3.3 Availability of 6.3.4 Deploy rating indicators applications via internet for service providers What is the indicator?

The ICT sector witnessed a rapid The CITC developed and deployed an It is an indicator to rate telecommunication and accelerated development of indicator that rates service providers service providers in terms of number of online services and applications according to number of complaints subscribers’ complaints received by the CITC. via internet. In order to keep that users escalate tothe Commission. abreast of these developments and to provide services to users The indicator, which is published in the Kingdom, in 2017 the CITC quarterly, presents the rating of made available applications service providers according to that provide of voice and video these complaints. The aim of the communications features via indicator is to provide user-wide Internet. information on the performance of telecommunication service providers, This move is in line with the in resolving their customers’ latest trends in the ICT sector; complaints clearly and transparently, it contributes to providing many in order to enhance competition opportunities for individuals and among ICT service providers. businesses in the Kingdom to communicate and develop their The indicator is calculated based on business using these services. the number of complaints received by the CITC, as a percentage of the number of service provider The indicator shows data on the complaints subscriptions for each type on the received by CITC from telecom service indicator. subscribers online.

What is the Objective? Raise attention to Provide information on the performance of Enhance transparency subscribers’ telecommunication service providers in resolving and competition among complaints. customer complaints, so that subscribers can telecommunication choose the appropriate service provider. service providers.

Annual Report 2017 86 87 6.3.5 Project for the measurement of 6-3-6 Documenting calling cards Internet use quality in the Kingdom

Issued calling cards

2016 2017

35.000.000 30.399.971 Increase transparency to Provide a platform to measure encourage competition at the the quality of Internet experience 30.000.000 level of Internet service delivery. for users in the Kingdom.i 25.000.000

20.000.000 18.321.977

15.000.000 11.882.293 12.546.451 6.921.982 10.000.000 6.608.274 6.621.627 5.524.825 5.000.000 ﻣﻘﻴﺎس MEQYAS 0 First Second Third Fourth First Second Third Fourth quarter quarter quarter quarter quarter quarter quarter quarter Provide information to the CITC to Prepare and publish periodic contribute to the improvement of reports on the performance of internet in the Kingdom. Internet services in the Kingdom.

MEQYAS is one of the CITC initia- for Internet provided to users on or through dedicated measure- The CITC prepared and updat- calling cards; to protect all ICT numbers, the CITC seeks to sim- tives aimed at establishing a plat- a daily, weekly, monthly or annual ment devices for fixed Internet ed the rules and procedures for subscribers, to safeguard their plify participation. It provides form for measuring and testing basis; publish periodic reports on services. It should be noted that documentation and monitoring rights and avoid the exploitation of new channels to help subscrib- the quality of Internet experience Internet experience in the King- measurements of the Internet ex- telephone numbers used to pro- their personal data. This measure ers to easily document numbers in order to provide Internet users dom to increase transparency perience are affected by several vide calling card services. CITC should limit any negative effects electonically and it issued the in Saudi Arabia with reliable and and competition among service factors. These includethe efficien- also monitors its numbers docu- or abuses that may result from documented Arqami service that accurate information about Inter- providers. cy of the tower of the service pro- mentation process periodically, in the use of telecommunication ser- allows the subscriber to inquire net services. vider network and the distance order to ensure the effectiveness vices in a way that breaches the about the numbers documented MEQYAS can be accessed through between them, the settings of the of these procedures; to develop Telecommunications Regulations in early 2018. MEQYAS aims to provide informa- the Internet speed measurement modem and the router, internal them and monitor the compliance and Bylaws. tion on the quality of the user’s website (www.meqyas.sa) or the recommendations, as well as the of operators as required. This is Internet experience.It provides an application of smart devices to number of users and number of part of CITC’s efforts to address Through the development of pro- average of quality measurements measure mobile Internet service devices per subscription. the phenomenon of anonymous cedures to document calling card

Annual Report 2017 88 89 6.3.7 SPAM Control Procedures Review 6.3.8 Resolving user complaints

SPAM means any message sent cal, legal or other procedures service providers to review the The CITC has developed mecha- To increase user satisfaction, the and activating a number of other without the prior consent of are in place to prevent the procedures they use in order to nisms and standards to effectively CITC found a number of solutions solutions to reduce the number of the recipient via any electronic use of their networks to send control spam and update the nec- resolve complaints and increase to motivate service providers to complaints and increase user sat- means of communication. Based SPAM messages, monitor their essary regulations. The aim is to the satisfaction of users. A total of resolve customers complaints be- isfaction. It is hoped that the re- on SPAM regulations approved networks to limit these mes- enable subscribers to better and 95,671 complaints were received fore submitting them to the CITC. sults of these procedures will be- by the Commission’s decision No. sages and take the necessary automatically control the lists re- in 2017, all of which were re- Solutions include preparing a rat- come evident in 2018. In order to 259 of 1431H, no message may precautions to eliminate them. ceived and the type of messages solved by the CITC in accordance ing indicator for service providers increase transparency and stim- be sent without the prior consent 2. Provide a free, user-friendly received without the intervention with the Telecommunications in terms of complaints received ulate competition among service of the recipient and unless com- service for subscribers to en- of any other party. Any person Regulations and Bylaws. The fig- by the CITC in addition to impos- providers, the CITC is deploying mercial or practical relations ex- able them to refuse SMS or who has been exposed to SPAM ure below shows the number of ing fines on service providers. the corporate rating indicator as ist between the sender and the MMS from some or all send- may file a complaint via the elec- complaints submitted to the CITC The CITC is developing a system well as numerous indicators for recipient. The main obligations of ers. tronic complaints system on the by service type. for complaints, building partner- complaints and user satisfaction mobile service providers to pro- CITC website in accordance with ships with service providers to via the CITC portal on the Web. tect users from SPAM include: The CITC worked with mobile ser- the Telecommunications Regula- resolve the causes of complaints, 1. Ensure the necessary techni- vice providers and short message tions and By-laws.

The CITC organized SPAM regulations to prevent sending any electronic messages without: 95.671 Pre-paid complaints from ICT users mobile 15.88%

Fixed Internet 15.26% (fixed) 14.15 % The existence of Obtaining the recipient's commercial or practical prior consent to these relations between the messages sender and the recipient postpaid Internet roaming 42.20% (mobile) 12.51%

Annual Report 2017 90 91

6-3-9 Number portability 6.3.10 Internet filtering Year-on-year CITC ensures continuity of Mobile increases of The CITC is responsible for the technical Number Portability Services by 24% aspects of the national internet filtering monitoring the central system of the service and for limiting access to harmful Number Portability Clearinghouse Internet content, whether it is immoral or (NPC), verifying proper implementa- compared to in violation of the Kingdom’s regulations, tion of MNP procedures by the oper- 2016 and 113% depending on reports from stakeholders or ators, resolving user complaints, and compared to bodies involved in internet filtering in the looking for means to improve the ser- Kingdom. During 2017, the CITC: vice. This has resulted in more than 2014. 800 thousand portability transfers • Dealt with more than 3,000 daily filter- between service providers in 2017. ing requests in the Kingdom. • Actively supporteds efforts to protect Sites blocking and unblocking requests children by blocking child-abuse mate- rials and regularly reporting to security 1197290 with 24% decrease authorities and concerned internation- More than Blocking Total 800.000 from 2016 al organizations. More than 100 child- numbers have been transferred abuse links were resolved. between service providers this year Pornographic 81% • In the interest of protecting children and Classifying adolescents from dangers of the inter- Others 19% net and emphasizing the role of family Total 5264 in minimizing exposure to harmful in- Unblocking Accepted 326 1% ternet content, the CITC prepared the fi- 1.000.795 nal draft of parental control tools for in- Refused 4882 99% ternet users in the Kingdom which was 842259 Blocking applications deployed for feedback and for receiving 472779 the proposals of service providers. The Number of transfers in thousands Number of applications that were 32 draft is currently under final review for subject to communications 559544 approval. Number of blocked applications 18 • Further development of the technical filtering system by raising its level of 244592 Communicate with content owners 174921 performance in line with technical de- 160673 4437 with 25% 60568 Number of inquiries by users velopments in Internet and in the needs 44020 decrease from 2016 11556 39136 24759 of users. is more than 118245 • Further development of effective part- The number of links removed with a 210% increase nerships with many social media sites from 2016 and content owners to reduce access to 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 offensive content.

Annual Report 2017 92 93 Websites filtering application 6-3-11 The National Center for Information Security

Through the National Center for fidence in electronic transactions, The Commission, through the Na- Information Security, the CITC invest in the sector, and attract in- tional Center for Information Se- 1 continued its efforts to enhance vestments to the Kingdom. curity (CERT-SA), has published e-security and provide a healthy The main achievements of the the Guide for Information Security Use the sharing feature environment for electronic trans- Center during 2017 include the Policies and Procedure services. available in smart devices actions as a way to increase con- following:

2 & Select the required filtering service (request 70 50 50 public security reports were for blocking, request for unblocking) published along with 70 security warnings on the 3

Fill in the form for required 11060 50 11060 special messages were 50 government bodies were filtering service sent regarding addresses infected registered in the Guide for with malware and security gaps to Information Security Policies 4 parties registered at the Center. and Procedures service.

Process the request by the competent team 32 192 32 warning reports have been sent 192 special warnings were sent to to more than 730 liaison officers As use of smart devices has been /1435H, the General Commission parties that were either targeted or spreading in the Kingdom, the For Audiovisual Media has been representing the stakeholders To download the application (filter.sa) subjected to leakage of information. registered at the Center. CITC developed an application (fil- entrusted with the task of organiz- from your device store ter.sa) to enable users to share ing moral and information content blocking and unblocking links on (entirely) via all media (traditional the sites. and electronic) and establishing These2820 parties referred to policies and 760760 communications and queries The number of downloads of the the National Committee for Tech- procedures included in the Guide to were addressed through the filtering application on Android nology responsible for monitoring support them on preparing and 33 Center communication channels system devices was 1931 down- any offensive content. Its mem- Implementing of more than 2820 33 phishing incidents have via telephone, e-mail, or website. been received and processed. loads in total, including 1666 bership includes the Ministry of policies and procedures to guarantee downloads from IOS system de- Communications and Information the security of their information. vices. Technology, the CITC and a num- Based on the decision of the Coun- ber of stakeholders. In virtue of the Royal Decree No. 6801 dated 11/02/1439H which approved the organization of the National Cybersecu- cil of Ministers No. 51 dated 6/2 rity Authority (NCA), The Computer Emergency Response Team (CERT-SA) has been transferred to NCA

Annual Report 2017 94 95 6-3-12 Addressing violations of the 6-3-13 Measurement of 6.3.14 Projects to conduct field measurements of the quality telecommunications system electromagnetic radiation of mobile telecommunication services The objective of this project is As part of its efforts to regulate the The Commission also conducts Clause 38/5 of the Telecommunications to monitor conformance of ser- ICT market, protect the interests of similar measurements in a number Act stipulates that activities that violate vice providers with national reg- users and service providers, and of different locations in the King- the law be considered by a committee ulations approved by CITC, with raise the quality of telecommunica- dom, which are selected according nominated by a Board resolution. regard to human exposure to tions services in the Kingdom, spe- to criteria determined by the Com- electromagnetic radiation. These cifically in the Hajj and Umrah sea- mission. These field measurements national regulations are based on sons each year, the CITC conducts are carried out in cooperation with a international standards recom- field measurements in Makkah and number of academic and research mended by the World Health Or- Madinah to verify the compliance bodies. These measurements are 1424 14 ganization and the International of mobile telecommunications op- based on the use of the latest meth- non implementation of a Offers Telecommunication Union and are erating in the Kingdom. The tech- ods and programs for the collection resolution enacted in order to limit human nical and regulatory standards es- and analysis of data and the re- exposure to electromagnetic radi- tablished by the CITC for quality of lease of detailed reports supported 1291 13 ation emitted from wireless base service are accordance with inter- by geographic maps on the perfor- cable cuts provision of service in stations and to provide protection national best practices and experi- mance of mobile networks for the against any negative effects on ences consistent with international second, third and fourth generation an irregular manner health resulting from antennas standards. using several indicators, including fixed on mobile phone towers. signal strength; Internet indicators; 1191 9 indicators and quality of sound. Many sites have been measured cards Calls transferred and tested for conformance with radiation levels emitted from These measurements are based on the use 6 wireless base stations through of the latest methods and programs for 288 a cooperation programme with data collection and analysis Abuse and nuisance Other violations leading academic and research institutions in the Kingdom. 242 6 Unauthorized devices Total Use frequencies 163 4651 4 information provided Messages

Annual Report 2017 96 97 6.3.15 Require service 6.3.16 Regulate the fair use policy providers to notify the user of calls outside the network The CITC sought to modernize and and investments from abuse by a data capacity and speed when of- User protection Transparency and clarity develop a fair use policy to further small number of users. Telecom fering packages subject to the fair To enhance clarity and transpar- protect users, enhance compe- companies which provide mobile use policy. The mechanism for ap- ency, CITC obliged mobile service tition among service providers, data services in the Kingdom have plying this policy is subject to the providers to notify users when and achieve clarity and transpar- the option to apply this policy, but following: they make calls outside their Objectives ency. This policy also contributes the CITC requires the service pro- network, so they can distinguish to protecting national networks vider to comply with a minimum between calls within or outside

ﻓﺎﺗﻮرة ﺟﻮال the network, and to be aware of possibly applicable additional tar- iffs (financial fees) on voice calls; this service is optional if the user The user needs to Distinguish between wishes to activate it. know the potential calls inside or outside The Required Minimum for the Application of the Fair Use Policy cost of the call the network

The speed shall not be less than The speed shall not be less than 6 3 512 kbps GB/day 1 Mbps GB/day In Internet packages using In Internet packages using The service is data SIM cards Audio SIM cards optional if desired 3GB/day

The monthly limit for the fair use policy * in the Kingdom is 200% higher for voice SIM cards and 400% for data SIM cards

How to activate the service? How to alert the subscriber? 333 MB / day 1 GB / day In Canada In the United States of America

Contact the service provider Sound Alert * The policy is available as an option for the service provider who is required to and request activation of the service. (tone, voice recording) be transparent and clear with the users in regards to the application of this policy

Annual Report 2017 98 99 6-4 Efforts deployed by the CITC to serve the guests Size of the mobile telecommunication of God during the Hajj and Umrah seasons in 1438H network during the Hajj season 1438H

The CITC is cooperating with ser- of 1437H, by mobilizing more than pacity of mobile service providers vice providers to establish the 3700 ICT professionals working networks in Makkah and Medina world’s largest ICT infrastructure around the clock and achieving reached 75 million subscriptions. in Makkah, Medina and the Holy high levels of performance for The United Nations specialized 3G Networks Places. This is to help pilgrims mobile networks during the pil- agency in ICT (ITU) praised the easily perform their religious ob- grimage season. The number of great efforts made in 2017 to pro- ligation, by providing more than calls exceeded 700 million calls vide ICT services to the guests of 13 thousand mobile phone sta- with a success rate exceeding 99% God which enabled the pilgrims to tions with 2G, 3G and 4G technolo- and the volume of data traffic ex- easily fulfill their religious obliga- gies, improving on the Hajj season ceeding 23,000 terabytes. The ca- tions.

Network capacity increase at Number of 3G towers Location peak hour compared to 1437H More than More than

million 13.000 700 with an increase of around Masjid al-Haram 4.16% 4.84% from the previous year 303 mobile phone stations for the 2G, local and internationl succesful Most commonly used applications 3G and 4G. calls with an increase of around Masjid al-Nabawi 0.26% 0.84 % from the previous year 241 More than Around with an increase of around Al Mashaaer AL million 3.77% from the previous year Mugaddassah 6.74% 1019 (including Mona, Mezdelfa, Arafat) 75 subscribers 99% 2 million Capacity of mobile telecommunication Average call success rate foreign chips connected to local with an increase of around 1.8% from the previous year Makkah service providers networks networks (daily) 12.9% 1400

with an increase of around Medina More than More than 6% 6.3% from the previous year 1177 million terabytes 23.000 TB 100 7 subscribers volume of data consumption Average number of subscribers in mobile service providers networks

Annual Report 2017 100 101 Size of the mobile telecommunication Size of the mobile telecommunication network during the Hajj season 1438H network during the Hajj season 1438H 4G Networks Around 24 specialized staff working around the clock 3700 in the field to serve the guests of God.

vehicle following up ICT related works. More than 1000

Network capacity increase at Number of 3G towers Location peak hour compared to 1437H subscribers of local and foreign chips in million 708 the previous with an increase of around Masjid al-Haram 9.29% 10.77% from the previous year 329 increase in the average number of new mobile subscriptions at the beginning of with an increase of around Masjid al-Nabawi 80% the Hajj season. 25.29% 21.90% from the previous year 256

Al Mashaaer AL with an increase of around More than mobile phone stations for 2G, 3G and 4G 41.62% from the previous year Mugaddassah Mech’er Mona 19.8% 769 (including Mona, Mezdelfa, Arafat) 1500

with an increase of around 22.9% from the previous year Makkah 9.14% 2068 rise in the number of 4G towers in Mech’er Mona compared to previous year with an increase of around 80% 20.66% 18.27% from the previous year1650 Medina Not more the share of inerrupted voice calls in than 1% Mech’er Mona.

Annual Report 2017 7 International Achievements and Participation 104 105 International Achievements The CITC is part of a Review the Kingdom’s number of regional experiences in and Participation and international broadband deployment The CITC works on developing the most prominent organiza- the Kingdom holds several posts, organizations related to at the United Nations and protecting the interests of tions are the ITU, the specialized either as president or vice-presi- the ICT sector the Kingdom at the international committees of the United Nations dent of several meetings and con- The Kingdom continues to play a The Kingdom of Saudi Arabia has arena in terms of ICT. With the ob- Economic and Social Council, the ferences of regional and interna- leading role in the United Nations reviewed the efforts of the Gov- jective of increasing cooperation League of Arab States, the Coop- tional organizations The Kingdom Commission on Science and Tech- ernment of the Custodian of the and exchanging information and eration Council for the Arab States also provides several contribu- nology for Development. Two Holy Mosques at the United experiences, the CITC communi- of the Gulf and the Arab Network of tions to these organizations and The CITC played a major role in the Nations Broadband Commission cates with ICT organizing bodies Regulatory Commissions of Tele- tries hard to reach a consensus twentieth session of the Commis- for Sustainable Development. The in the Arab region and elsewhere. communications and Information with all partners, in an effort to sion on Science and Technology aim was to promote the efficien- The CITC participates in a num- Technology, the United Nations achieve shared objectives. for Development held at the United cy of the national economy and ber of regional and international Broadband Commission for Sus- Nations Headquarters in Geneva The Kingdom is an active member achieve developmental leapfrog- ICT- related organizations. Among tainable Development. Moreover, where it led the negotiations on the of the United Nations Broadband ging to meet ambitions and ser- draft resolution on reviewing the Commission for Sustainable vice the citizens through the de- Development, which is composed The CITC is part of a number of regional outcomes of the World Summit on ployment of fiber optic networks of a number of eminent decision and international organizations related the Information Society. The CITC makers in the area of ICT research throughout the kingdom. It oc- to the ICT sector also prepared a range of inputs to curred during the participation of speed up the implementation of Saudi Arabia in the meeting of the the outcomes. The CITC is the fo- Committee held in New York City cal point at the UN level responsi- on the margin of the 72nd session ble for following up the WSIS out- of the General Assembly of the comes. It issues two resolutions United Nations. annually before sending them to The Kingdom is an active member the General Assembly through the of the United Nations Broadband Economic and Social Council: the Commission for Sustainable De- first for assessing progress in the velopment which includes a num- implementation of WSIS outcomes ber of powerful decision makers and follow-up; the second on sci- in the area of ICT research. ence, technology and innovation for development The CITC partic- ipates in the Commission to sup- port the Kingdom’s orientations and protect its interests.

Annual Report 2017 106 107 Pursue excellence with the Pursue development efforts at The Kingdom plays a implementation of WSIS The total number of certificates received by the international level during leading role in the work of outcomes and awards winning the Kingdom in the past years: the World Telecommunication the ITU Council Development Conference The Kingdom participated in the (WTDC) WSIS Forum which is organized The Kingdom participated in the ac- by ITU in Geneva on an annu- The Kingdom pursued its develop- tivities of the ITU Council in 2017 and al basis. The Kingdom has been awards ment efforts related to ICT. It was confirmed for the 53rd year its com- constantly winning WSIS awards; 7 elected to chair the Fourth and most mitment to support the ITU to ensure government bodies received cer- important Committee of the Confer- that it performs the tasks serving tificates of recognition for their ence.The Kingdom also led some of the ICT sector at the international efforts and projects in implement- the working groups seking consen- level. The Council also adopted the ing the WSIS outcomes. The total certificates of sus on the Conference topics. The Kingdom’s contribution to the meet- number of certificates received by excellence World Telecommunication Develop- ing, which aimed at supporting the the Kingdom over the past years 6 ment Conference is one of the ma- long-term budget stability of ITU and was seven awards and six de- jor conferences of the International the continuous development of stan- grees of excellence. The Forum Telecommunication Union (ITU) and dards for promising technologies, in was attended by more than 85 is held every four years. More than addition to strengthening the means high-level government ministers 1,300 government representatives by which the Union could cooperate and representatives, and more from 134 countries participated in with other organizations, as well as than 2000 participants from gov- its work. More than 50 resolutions participated strengthening the work of ITU in in- ernment, private sector and civil on ICT were issued. The conference ternational Internet-related public society to discuss developments coincides with the 25th Anniversary policy issues. The ITU Council is the and exchange experiences in the of the establishment of the Develop- 1300 highest authority after the ITU Pleni- implementation of the WSIS out- ment Sector of the Union of which the government representatives potentiary Conference. Its members comes. Kingdom was a co-sponsor, in rec- are elected at the Plenipotentiary participated in the Forum ognition of its interest in the devel- Conference every four years repre- opmental aspects and its leadership senting 25% of the total number of 85 role in ICT. Member States. high-level government Members are elected during ministers and representatives the Plenipotentiary Conference evey four years representing 25٪ of the total number of Member States.

Annual Report 2017 108 109 The Kingdom participates in the opening of The CITC discusses mechanisms associated the ITU Telecom World 2017 with the Fourth Industrial Revolution

The Kingdom opened the ITU Tele- velop regulatory frameworks, and and industry leaders around the Being keen on keeping abreast of telligence”, with the participation and big data. The program includ- com World 2017 in Busan, South stimulate public telecom provid- world. It offers an opportunity to developments in the ICT sector, of international experts, manu- ed three panel discussions and a Korea with a presentation stress- ers to invest in broadband infra- exchange information and expe- the CITC organized in cooperation facturers, standardization organi- presentation by the Director of the ing the great impact of ICT projects structure. ITU Telecom World is riences among high-level partici- with the International Telecom- zations, operators and regulators Office of the standardization sec- emanating from the Kingdom’s an annual global event connecting pants. munication Union a Regional Fo- of the ICT sector. The Forum high- tor at ITU on the key role of ICT in vision to create an attractive sys- small and medium-sized technol- rum for standardization entitled lighted the latest developments enabling the Industry 4.0. tem for large hosting centers, de- ogy companies with government “Internet of things and artificial in- on Internet, artificial intelligence,

participated more than

300 Speakers and more than

6000Visitors

with a number of small and medium enterprises

The Forum highlighted the latest developments related to Internet, AI and big data.

Annual Report 2017 110 111 Leading the Arab Team on the Internet of The Kingdom as Vice-Chair of the WSIS Things and Smart Cities Team and Sustainable Development Goals

Saudi Arabia has been nominated these fields and its belief in its ca- The Member States of the Interna- to lead the Arab Group on the In- pacity of supporting Arab States. tional Telecommunication Union ternet of Things and Smart Cities The second panel was hosted by (ITU) have chosen Saudi Arabia to which discusses topics related to the Kingdom and a number of assume the position of Vice-Chair the standardization of the Inter- standards related to the Internet of the Council’s Working Group on net of Things and how they can be of Things were discussed during Follow-up to the Implementation used to serve Arab countries. The the meeting, including the integra- of the WSIS Outcomes and Sus- Kingdom’s candidacy for the pres- tion of the Blockchain technique in tainable Development Goals, as idency of the Arab Team is based the Internet of Things (IoT) envi- a consequence of the Kingdom’s on its international leading role in ronment. leading role in this area since the preparatory process for the WSIS and the High-level Meeting of the United Nations General Assembly in 2015. The Working Group plays important roles aiming at follow- ing up and strengthening the ITU’s role at the UN level in implement- ing the outcomes of the World Summit and following up on its ITU Member States have chosen Saudi future developments. Arabia to serve as Vice-Chair of the Council Working Group on Follow-up to the Implementation of the WSIS Outcomes The Kingdom's candidacy for the Pursue the chairing of the ITU and Sustainable Development Goals. presidency of the Arab Team is Council Team on International based on its international Internet-related Policies leading role in these fields The Kingdom of Saudi Arabia, rep- applications through the Internet resented by the CITC, chaired the and issues related to enhancing 10th meeting of the ITU Council security and trust. Working Group on International Internet-related Policies at the ITU ITU Member States have chosen headquarters in Geneva, which Saudi Arabia to serve as Vice- was inaugurated by ITU’s Gener- Chair of the Council Working al Secretary in the presence of its Group on Follow-up to the Imple- Vice-President and Directors of mentation of the WSIS Outcomes the ITU’s three sectors. The meet- and Sustainable Development ing discussed the topics related to Goals.

Annual Report 2017 112 113 The Kingdom is Vice-Chair Chairing the Gulf Group in charge of the preparation of the Expert Group on of the Radiocommunication Conference 2019 Telecommunication Indicators The Kingdom chairs the Gulf of GCC countries and submitting ference makes decisions on new The Kingdom participated in the 15th Group of the GCC Secretariat in working papers to the permanent allocations of multiple radio ser- World Telecommunication/ICT indi- charge of preparing for the Ra- Arab Working Group on frequen- vices in various frequency bands. cators Symposium (WTIS), which was diocommunication Conference cy spectrum within the League The Conference that will be held held in Hammamet, Tunisia. The King- 2019.The Group is responsible of Arab States, which presents in 2019 is particularly important dom was nominated as a Vice-Chair of for examining the items and is- the positions of the Arab regional as it will distribute a number of the Expert Group on Telecommunica- sues on the agenda of the Confer- group during the conference. The frequency bands for IMT-2020 (or tion/ICT Indicators (EGTI) in charge of ence, consolidating the positions World Radiocommunication Con- the so-called 5G). developing and identifying the ICT sec- tor indicators in addition to finding the best international benchamrking mea- sures of the progress achieved by UN Member States. It is worth noting that the Kingdom owes its success to its ac- tive contribution to the IDI Expert Group The Radiocommunication on measuring the ICT Development. Conference makes decisions distribute a number regarding new allocations of of frequency bands multiple radio services in for IMT-2020 (or the Chairing the Arab different frequency bands. so-called 5G). Telecommunication Standardization Group for the coming four years The Kingdom is chairing the Arab Group for Standardization of the League of Arab States in the coming four years. The team is responsible for enhancing cooperation and promoting exchange of experience among Arab countries in the field of standardization and co- ordination of Arab States positions on standardization in international confer- ences and meetings. It owes this lead- The team is responsible for enhancing cooperation and ership to its position and active partic- promoting exchange of experience among Arab countries ipation in international organizations, in the field of standardization and coordination of Arab in addition to its impact on ICT regional States positions on standardization in international and international level decisions. conferences and meetings.

Annual Report 2017 8

Media Activities 116 117 Media activities Pursuing the awareness- raising campaign on Tapping Events organized / attended by the CITC during 2017 anti-cybercrime law and Tap, pick up, or intercept without a proper legal justification related sanctions data transmitted via telecom networks or via a computer.

The CITC pursued its awareness Participate in the Launch the ICT Forum Organize the CITC Forum 2017, Launch an awareness - campaign on anti-cybercrime law meeting of the United entitled “E-commerce in entitled "Stimulating investment raising campaign entitled and related sanctions in cooper- Nations Commission for Saudi Arabia”. and sector trends". "Secure Internet" in ation with the Ministry of Interior Broadband. partnership with the and the Ministry of Education. The Ministry of Education. campaign aims to raise the aware- ness of ICT service users on their rights and duties, how to file com- Participate in the World Participate in the World plaints, sanctions resulting from Telecommunication Telecommunication IT crimes, in addition to clarifying Development Conference. Forum 2017. the types of ICT crimes, and how to address them. The campaign Host the meeting of the highlights the role of security off- Organize an induction Arab working group for the cials in prosecuting the perpetra- workshop on the safe preparation of the World tors without complacency. extension of DNS. Telecommunication Conference.

Hold a press conference Participate in the to highlight unified organizational Telecom Sanction licenses. Forum 2017. Prison for a period not A fine not exceeding five One of these two exceeding one year or hundred thousand Riyals or sanctions in virtue of the Cyber Crime Act Participate in the 6th Launch a panel discussion Saudi e-Health entitled "paving the way for Conference 2017. safe and reliable Internet". Reporting tools for cybercrime

Through the Kollona Report to the nearest Ministry of Interior ﻣﺮﻛﺰ اﻟﺸﺮﻃﺔ Amn on smart devices police station Portal (Absher) provided by the Ministry of Interior Organize the Hold a press conference to Participate in the Send a reporting Organize the Huawei message to the Regional Forum for introduce the vision of the Kingdom International Engineering Call 989 competition for ICT following email address Standardization. 2030 and its ICT-related goals. Conference and Exhibition. skills. [email protected]

Annual Report 2017 118 119 Impersonation Threat and extortion

The crime of seizing for oneself or for the account of another person a movable property or a deed Illegal entry, with the aim of threatening or blackmailing a person, in order to have them do (or or signing a deed unlawfully or assuming a false identity or role. abstain from doing) a given act, even if doing so or not doing that act is legal.

Sanction Sanction Prison for a period not A fine not exceeding five One of the two Prison for a period not A fine not exceeding One of these exceeding one year or hundred thousand Riyals or sanctions in virtue of exceeding three years or two million Riyals or two sanctions the Cyber Crime Act

Reporting tools for cybercrime Reporting tools for cybercrime

Through the Kollona Through the Kollona Report to the nearest Ministry of Interior ﻣﺮﻛﺰ اﻟﺸﺮﻃﺔ Report to the nearest Ministry of Interior ﻣﺮﻛﺰ اﻟﺸﺮﻃﺔ Amn on smart devices Amn on smart devices police station Portal (Absher) police station Portal (Absher) provided by the Ministry provided by the Ministry of Interior of Interior Send a reporting Send a reporting Call 989 message to the Call 989 message to the following email address following email address

Annual Report 2017 120 121 Drug trafficking Create and disseminate pornography materials

Establish or publish a website for drugs or psychotropic substances promotion, Create, disseminate or promote material and data related to pornography networks or immoral use or easy handling. activities like gambling.

Sanction

Sanction Prison for a period not A fine not exceeding One of the two exceeding five years or three million Riyals or sanctions in virtue of the Cyber Crime Act Prison for a period not A fine not exceeding or One of the two exceeding five years + three million Riyals sanctions in virtue of the Cyber Crime Act

Reporting tools for cybercrime Reporting tools for cybercrime

Through the Kollona Through the Kollona Report to the nearest Ministry of Interior ﻣﺮﻛﺰ اﻟﺸﺮﻃﺔ Report to the nearest Ministry of Interior ﻣﺮﻛﺰ اﻟﺸﺮﻃﺔ Amn on smart devices Amn on smart devices police station Portal (Absher) police station Portal (Absher) provided by the Ministry provided by the Ministry of Interior of Interior Send a reporting Send a reporting Call 989 message to the Call 989 message to the following email address following email address

Annual Report 2017 122 123 Figures on some media activities

Number of media materials published in traditional and electronic media 1618

Number of media materials on awareness raising that were published on the CITC social media channels 1359

Number of interactive responses with users on the CITC account (CITC_withU) 18708

Number of electronic publications 4

The total number of materials published 21689

Publications and daily media presence in various media 59

Annual Report 2017 9 Studies and reports 126 127 More than half the consumers 9.2 ICT market study in the Kingdom 9.1 The E-Commerce Report The CITC annually conducts stud- tive analyses of the development market trends and future expec- is based on the CITC role in pro- of Saudi Arabia. CITC issued the e-commerce by individuals and ies on the ICT market in the King- and support of these services, the tations, considering the results moting awareness of ICT issues, annual report on the status of ICT business sector. The report also dom that include survey studies extent of use and deployment of of previous conducted studies ; namely those related to the needs in the Kingdom which examines reviews the efforts of government of available services, and users’ these technologies and the lev- in order to set the chronological of individuals and business sector the status of e-commerce in the bodies and the private sector in behavior and customs in using el of satisfaction with the quality development of ICT services and as well as the growth of various Kingdom, the motivations and ob- supporting e-commerce. The re- these services and their level of and prices of service providers. their uses. economic sectors in the Kingdom stacles affecting the adoption of port highlights include: satisfaction. These studies also In conducting these surveys, the include quantitative and qualita- CITC aims to understand current

million buyers Higher rate for 8 Through these surveys the Via electronic sites and females than males CITC is seeking to probe the applications in the Kingdom of in using e-commerce market trends Saudi Arabia.

access More than half the consumers 93% sites and applications for Covered by the study have e-commerce through smart Time spent on Internet- as a percentage of Internet users already purchased via electronic phones 100.0% applications and sites 62.6%

58.4%

51.6% 50.9% 29.7 billion riyals 88% users 48.3% 49.1% 50.0% The size of the e-commerce of e-commerce are Saudis market in the Kingdom 41.6% 37.4%

59% access 3.942 Riyals 00.0% Average annual spending of sites and applications for 2014 2015 2016 2017 online shoppers e-commerce through tablets More than 4 hours per day Less than 4 hours per day

Annual Report 2017 128 129

9-3 Report on Market The objective of the report Definition, Designation are to identify ICT markets in and Dominance (MDDD) the Kingdom Overall satisfaction with mobile telecom services In 2017, CITC issued a report on identify dominant service 5 ICT markets definition, designa- providers tion and dominance in the King- dom, which is part of the periodic 4 and to develop appropriate 3.62 3.66 3.91 reviews conducted by the CITC to 3.50 assess the level of competition in regulatory requirements to the ICT sector. address the dominancy in 3 the identified markets

2 Based on the findings of the report, ICT 1 markets were divided into 15 markets 2014 2015 2016 2017 within two categories of service sale:

Retail markets (5 markets).

Overall satisfaction with fixed telephoney services Wholesale markets (10 markets). 5

3.93 4 3.84 3.79 Four markets have been classi- of the market and control over fied as competitive markets due the main network infrastructure. 3 to competition in related infra- Some regulations required from structure, while the remaining dominant service providers to 11 markets have been classified address the risk of non-competi- 2 as being under control; in most tive practices by dominant service cases it is due to high concentra- providers that might harm their tion in the market, with one ser- competitors. 1 vice provider having a high share 2015 2016 2017

Annual Report 2017 10 Indicators of the ICT sector in the Kingdom 132 133 Indicators of the ICT sector in the 3.64 million Kingdom 74.8% total fixed telephone Prepaid subscriptions lines by the end of 2017 10.1 Mobile rates. 10.2 Fixed Telephony 40 million Services telecommunication subscriptions to mobile services telecommunications services by the end of 2017 The totoal number of fixed tele- phone lines in operation had The total number of mobile tele- reached, by the end of 2017, about com services subscriptions had 126.7% 3.64 million. 1.9 million (52%) of 31.6% reached, by the end of 2017, about population Household which are for residential land- 40 million. The overwhelming penetration rate penetration rate lines. Thus, the household pen- majority of these are pre-paid etration rate is about 31.6%. The subscriptions, constituting a per- total number of subscriptions had centage that exceeds 74.8%. The continued to decrease due to the percentage of mobile telecom ser- competition of the mobile telecom vice subscriptions compared with services which make it a substitu- the population decreased to about tion of fixed services for some of Total subscriptions to fixed telecommunications services (million) 126.7%. Despite that, the number the consumers.. of postpaid subscriptions has in- Total mobile telecom services subscriptions services (million) 45.0% creased by 25.2% from the previ- 34.0% ous year. This is in line with the 171.4% 32.3% 149.4% 31.6% trend in ICT service markets. As a result of CITC issuance of mobile 137.5% virtual network operators licens- 1.80 1.75 1.74 es; service levels have improved 47.10 1.09 126.7% ٥٢.74 and become more diverse. The 43.65 2.5 telecom market has expanded, giving subscribers more options. 2.0 45.9 39.4 35.8 40.21 1.9 1.9

1.30

6.8 7.7 7.9 10.1

2014 2015 2016 2017

household penetration rate Business lines Residential lines 2014 2015 2016 2017 مالحظة: تقاس نسبة االنتشار للمساكن بقسمة عدد اخلطوط السكنية على عدد املساكن. revalence at the population level (%) Total number of subscriptions Prepaid subscriptions Post-paid subscriptionsا

Annual Report 2017 134 135

10.3 Broadband Services million 2.50 million Total fixed 29.7 93.5% broadband services 10.3.1 Fixed Broadband 10.3.2 Mobile Broadband total mobile broadband Population penetration subscriptions Services Services services in its broad definition rate of mobile broadband services. The total number of subscriptions The total number of subscrip- for fixed broadband services , tions for mobile broadband ser- which includes Digital Subscriber 33.6% vices , in its broad definition, had Household Lines (DSL), fixed wireless con- penetration rate decreased to about 29.7 million nections, fiber optics and other subscribers by the end of 2017 fixed lines, had reached around as a result of the linking of mobile 2.50 million subscription by phone numbers and data packag- the end of 2017, representing a es to personal fingerprints. These household penetration of around subscriptions include data ser- Total fixed broadband services subscriptions (Million) 33.6% vice and integrated voice telecom Total mobile broadband services subscriptions (Million) 3.56 packages (voice and internet) SIM cards. Accordingly, the population 50.7% 3.29 31.5 3.3 penetration rate of mobile broad- 29.7 44.8% band services is around 93.5% . 43.2% 29.1 2.5 23.9

1.1 1.5 33,6% 20.17 1.2 19.96 11.17 10.89 0.4

18.8 12.71 1.38 1.57 1.62 1.40 11.35

9.13

0.58 0.70 0.45 0.43

2014 2015 2016 2017 2014 2015 2016 2017

Fiber optics and other wireless lines Fixed wireless connections Digital Subscriber Lines (DSL) Total mobile broadband Total number of subscriptions Total number of subscriptions in subscriptions in dedicated (data) services standard (data and voice) services Household penetration rate (%) Total fixed broadband subscriptions

Annual Report 2017 136 137

10- 4 Internet services 10.5 Capacity of International Internet Capacity of International Penetration rate of internet ser- Connectivity Internet Connectivity for 2017 vices has soared over the past A rise from 64% in 2014 years from 64% in 2014 to around The total capacities of the Inter- 82% by end of 2017. The total national Internet Connectivity had increased by 65% to number of current internet us- increased from 3,185 gigabit/sec ers in the Kingdom is estimated in 2016 to 5,260 gigabit/sec at the by the end to be over 26 million users. Due to end of 2017 with a growth of 65%. 5260 to increased use of social media 82% of 2017 The reason for this growth is the gigabit/ sec channels, content channels (like expected increase in demand for YouTube and Snapchat) and in- internet use. In addition, compa- compared to ternet-based games, demand for nies have added parallel capac- 3185 internet and broadband services ities to the existing capacities as gigabit/sec in 2016 has risen recently. Consequently, alternative options in case of in- the amount of data use has risen ternet cable cuts. significantly in recent years. Capacity of International Internet Connectivity (gigabit/sec)

Total number of internet users (million) 5260

82.12% 74.88% 63.7% 68.5% 3185

1484 1321

26.1 19.6 21.6 23.8

2014 2015 2016 2017 2014 2015 2016 2017 Penetration rate Number of users

Annual Report 2017 138 139

10-6 Revenues of ICT services 10-7 Spending in ICT services Telecom companies achieved about 71 billion Saudi riyals in Billion Riyals total direct revenue from opera- The CITC has conducted an analyt- 136 tions in Saudi Arabia by the end of Billion ical study to estimate the volume 2017, 2.25% less than 2016 reve- of spending on ICT services in the 71Revenues of Telecom The volume of nue. This is due to decrease in the companies by the end of 2017 Kingdom. The study includes ICT spending on ICT in the number of subscriptions and in services, hardware and software. Kingdom in 2017 services prices. Despite the eco- The volume of spending on ICT nomic depression due to oil price in the Kingdom is about 136 bil- decrease, service providers rev- lion riyals in 2017, with a growth enues preserved the same rates rate of about 4.6% over 2016. The spending on ICT services is almost Total spending on ICT in the Kingdom in 2017 أ .over the last three years 65% of total spending. 136 Revenues of Telecom companies by the end of 2017 130 100 120 111.79 90

80 73.7 88.4 72.8 83.2 71 76.8 70 69.84 66.6 60 47.6 50 46.8 43.2 (ﻣﻠﻴﺎر) 40 41.95

30

20 8.3% 9% 7% 4.6% 10

0 2014 2015 2016 2017 2014 2015 2016 2017 Annual growth Total domain Telecommunications information technology Total revenue from the Kingdom market

Annual Report 2017 11 Overview of CITC plans for 2018 142 143 Overview of CITC One of the key plans to do All these efforts will have a significant The CITC is diligently plans for 2018 so is the 5G technology impact on service diversification and working to provide services empowerment initiative. revenue increase within the sector by at affordable prices. In 2018, the CITC is planning to con- the end of next year tinue its efforts to develop the ICT sector and protect users. A number of activities and projects are planned as follows:

11.1 Promote the deployment of infrastructure and develop its regulations

The CITC is working to promote the deployment of infrastructure, espe- cially with regard to broadband de- The CITC is working hard to raise the ployment. In this context, the CITC quality of services in order to satisfy provided support for the implemen- users and reduce the cost for investors. tation of broadband deployment projects currently under way by the 11.2 Promote the use of 11.3 Develop ICT 11.4 Promote Ministry of Communications and modern technologies regulations and competition and market Information Technology. It is also stimulate investment regulation working intensively to provide more The CITC is intensifying its efforts The CITC is working to improve the The CITC attaches great impor- frequency spectrum by the end of to enable digital transformation regulatory environment to attract tance to the flexibility of licensing next year.The CITC is also aiming to and to adopt modern technologies investment and stimulate the de- procedures to facilitate the work finalize the organization of participa- for use and investment by stimu- ployment of services in order to of those concerned. It also aims tion in the infrastructure, to achieve lating participation in infrastruc- raise the rate of capital investment at deploying regulations to facil- a significant increase in the speed of ture and providing the necessary in the sector through an integrat- itate the work of operators and the Internet through mobile telecom- regulatory and technical require- ed system of new regulations. All licensees. It is also working hard munications by the end of next year. ments. One of the most significant these efforts are expected to have to provide affordable services to It is also seeking to raise the quali- plans is the initiative to enable 5G a significant impact on service di- enhance competition and market ty of services in order to satisfy the technologies and the Internet of versification and revenue growth growth. CITC’s activities to pre- users and reduce costs for investors Things (IoT). by the end of next year. The regu- vent anti-competitive practices through developing an integrated lation of cloud computing among play a major role. system of indicators for measuring others should increase invest- the ICT quality and disseminate indi- ment rates in Infrastructure and cators for the sake of transparency. localization of cloud services.

Annual Report 2017 144 145 The CITC is working hard to The CITC will also highlight the the CITC will increase provide services at favorable international efforts and the reliability and prices that enhance competition security achievements of the Kingdom It seeks to raise and market growth in relation to the sector, hold awareness of leadership positions users’ rights and internationally and regionally obligations

The CITC also aims to decrease the number of complaints submitted to the Telecom Violations Committee, which means that a greater proportion of complaints will be resolved satisfactorily without passing by the Committee. 11.6 Contribute to 11.7 Develop and protect 11.8 Develop common enhancing information the interests of the Kingdom services and improve the security and strengthen its regional working environment and international standing in ICT related fields In the field of information security, The CITC is working intensively to On the level of institutional sup- 11.5 Protect and raise the CITC will increase the reliabili- promote the Kingdom’s leading port and provision of services to awareness of users ty and security of networks during representation in international its members, the CITC will seek the coming year and will exam- activities and to activate inter- to achieve excellence in the man- The CITC pays a great attention to submitted to the Telecom Viola- ing the efficiency of addressing ine and prepare the regulatory national partnerships with reg- agement of the Commission’s the protection of users. It seeks to tions Committee, which means complaints. It also aims to build framework for the digital security ulators. The CITC will also high- projects and procedures and raise awareness of users’ rights that a greater proportion of com- more partnerships with the public of ICT service providers. light the international efforts and work to stimulate productivity, and obligations and to develop plaints will be resolved satis- sector to serve user Interests. The achievements of the Kingdom in raise employee satisfaction, and the complaint system in order to factorily without passing by the CITC will also promote and protect relation to the sector, hold leader- create an ideal working environ- increase its effectiveness so as to Committee. The CITC is planning the rights of users with special ship positions internationally and ment through several innovative reduce the time of complaint pro- to develop a complaints handling needs, by securing services that regionally, and organize events initiatives. cedures. The CITC also aims to de- system through the establishment meet their needs. outside the Kingdom to highlight crease the number of complaints of a call center aimed at increas- the sector’s achievements.

Annual Report 2017 12

Appendixes 148 149 Appendixes Appendix B : Issued licenses Appendix A: Resolutions Approval of the regulatory of the Board of Directors 24/1425 26/1427 28/1429 30/1431 33/1434 34/1435 35/1436 36/1437 37/1438 38/1439 الـخـدمــة (2017) (2016) (2015) (2014) (2013) (2012) (2010) (مframework for Cloud (2004) (2006) (2008 The Board has held a number of Computing. meetings this year, and has ad- Facilities-Based Fixed Tele- opted a number of resolutions, 1 1 1 2 2 2 2 2 2 2 communications Services namely: Facilities-Based mobile Tele- 2 2 3 3 3 3 3 3 3 1 communications Services Mobile Virtual Telecommuni- 2 2 2 2 ــ ــ ــ ــ ــ ــ cations Services

Data Service Provider 2 2 2 2 2 2 3 3 3 3

Internet Service Provider Approval of the final account Approval of the organization of Approval of the amendment of 23 47 53 56 40 41 50 47 46 48 of the CITC and the Universal the improvement of user’s articles 7, 66 and 59 of the executive. (ISP) Service Fund. experience. regulations of the ICT law. VSAT System Communica- 5 7 14 18 19 19 19 18 19 15 tions Service Provision of Global Mobile Personal Communications 2 3 3 3 2 2 1 1 1 1 Services (GMPCS) Internet Services on Air- 2 1 ــ ــ ــ ــ 1 1 1 1 planes in KSA Airspace Automated Vehicle Location 106 118 99 89 74 ٦٤ 44 26 24 6 Approval of the new Adoption the ICT service provision Approval of the (AVL) organizational and the rights and obligations of estimated budget of structure. service providers. revenues for 2018. Short Message Service 6 92 135 137 127 131 116 99 94 89 (SMS)

2 3 3 6 5 6 14 24 26 ــ Audio Text Services

35 43 27 24 20 15 11 10 7 ــ Call Center Services

Network Operation Center 7 5 4 4 4 4 4 3 3 ــ Approval of a ceiling price for wholesale Approval of a ceiling price of 2.1 Services local voice-call termination. The ceiling halalas symmetrically for Approval of the CITC Telecommunication Hotel 8 5 5 6 6 7 6 3 ــ ــ price for telecom mobile network is 4.5 wholesale local voice-call for fixed budget. Service halalas symmetrically wihin 60 days network within 60 days from the from the date of the decision. date of the decision Annual Report 2017 150 151 Appendix C: Final accounts

Fiscal year 1437/1438 Fiscal year 1438/1439 As of 12/30/2016 audited and As of 12/30/22017 not Revenues approved (Thousand Riyals) audited (Thousand Riyals)

Commercial Services Provisioning Fees 2,148,452 61,624 License Fees 371,612 365,050 Surplus Spectrum Usage Fees 3,245,823 5,161,309

Other Revenues 68,315 129,220 Fiscal year 1437/1438 As of 12/30/2016 audited and approved Total Revenues 5,834,202 5,717,203 5,372,755 (Thousand Riyals) Five billion, three hundred seventy two million, seven hundred five fifty thousand Riyals Fiscal year 1437/1438 Fiscal year 1438/1439 As of 12/30/2016 audited and As of 12/30/2017 not Expenditures approved (Thousand Riyals) audited (Thousand Riyals)

Employee Costs 266,303 229,570 Fiscal year 1438/1439 As of 12/30/3017 not audited 5,297,098 (thousand Riyals) Five billion, two hundred ninety seven General and Admin Expenditures 91,904 76,404 million and ninety eight thousand Riyals Consulting 58,221 13,020

IT Systems and Software 5,935 18,823 Note: The CITC bills for and collects revenues before turning Capital Expenditures 39,084 82,288 them over to the Public Treasury. Total Expenditures 461,447 420,105

Annual Report 2017