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MVNO RFA English

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MVNO RFA English Request for Applications for licensing a mobile Virtual Network Operator (MVNO) Services in the Kingdom of Saudi Arabia hosted with the Mobile Telecommunications Company (MTC) Saudi Arabia "Zain" Issued by CITC on 15/09/1436H; 02/07/2015G Disclaimer: This English version is an approximate translation of the prevailing Arabic RFA document. Table of Content BACKGROUND ................................................................................................................................................... 2 1 DEFINITIONS ......................................................................................................................................... 2 2 GOVERNING LEGISLATION .............................................................................................................. 5 2.1 Telecommunications Statutes ................................................................................................ 5 2.2 Regulatory Framework .............................................................................................................. 6 2.3 Foreign Ownership .................................................................................................................... 6 2.4 Licensing ...................................................................................................................................... 6 2.5 Number Allocation ..................................................................................................................... 6 2.6 Mobile Number Portability ....................................................................................................... 6 2.7 Universal Access and Universal Service ............................................................................. 6 2.8 MVNO Hosting ............................................................................................................................. 7 3 LICENSING SCHEDULE AND PROCESS ....................................................................................... 7 3.1 Licensing Schedule ................................................................................................................... 7 3.2 Licensing Process...................................................................................................................... 7 3.3 Eligibility of Existing Licensees ............................................................................................. 8 4 INSTRUCTIONS TO APPLICANTS AND APPLICATION CONTENTS ....................................... 9 4.1 Part 1 - Cover Letter ................................................................................................................... 9 4.2 Part 2 - Main Proposal ............................................................................................................... 9 4.3 Part 3 - Performance Bond..................................................................................................... 12 4.4 Part 4 - Binding Nature of Applications .............................................................................. 12 5 PROCEDURE FOR FILING AN APPLICATION ............................................................................ 12 6 GENERAL PROVISIONS ................................................................................................................... 14 6.1 Confidentiality of Applications ............................................................................................. 14 6.2 CITC Use of Applications ....................................................................................................... 14 6.3 Cost of Application and Application Process ................................................................... 14 6.4 Reservation of Rights .............................................................................................................. 14 6.5 Other Provisions ....................................................................................................................... 15 6.6 Legal and Formal Requirements .......................................................................................... 16 6.7 Communications in Connection with the Licensing Process ....................................... 16 Appendix 1 MVNO Services License ........................................................................................................... 17 Appendix 2 Award Process Timetable ........................................................................................................ 23 Appendix 3 Evaluation Criteria ..................................................................................................................... 25 Appendix 4 Cover Letter Form...................................................................................................................... 29 Appendix 5 Power of Attorney ...................................................................................................................... 32 Appendix 6 Financial Comfort Letter Form ............................................................................................... 34 Appendix 7 Business Proposal Form ......................................................................................................... 37 Appendix 8 Pro Forma Financial Summary ............................................................................................... 39 Appendix 10 Performance Bond Form ....................................................................................................... 45 Appendix 11 Ownership Arrangements Letter Form .............................................................................. 48 Appendix 12 General Framework of MVNO Agreement ......................................................................... 51 Appendix 13 Compliance Checklist ............................................................................................................ 56 Page 1 of 60 Request for Applications for Licensing of MVNO Services BACKGROUND The Communications and Information Technology Commission (“CITC”) is the entity authorized to regulate the Information and Communications Technology (“ICT”) sector in the Kingdom of Saudi Arabia (“KSA”). The Telecommunications Act (the Act), enacted on 12/03/1422H (04/06/2001G), provides the legislative foundation for developing and regulating the sector. The CITC Ordinance, effective 12/03/1422H (03/06/2001G), created CITC and defines its functions, governance, and financing. The Telecommunications Bylaw (the Bylaw), effective 17/05/1423H (27/07/2002G), provides for the regulation of the ICT sector by CITC in the KSA. At present, mobile telecommunications services in the Kingdom are offered by Saudi Telecommunications Company (“STC”), Etihad Etisalat Company (“Mobily”), Mobile Telecommunications Company (MTC) Saudi Arabia (“Zain”), Virgin Mobile Saudi Consortium Company and Jawraa Consortium Company. Fixed voice telecommunications services are provided by STC and Etihad Atheeb Telecommunications Company (“GO”). The purpose of this Request for Application (“RFA”) is to provide instructions to Applicants wishing to submit Applications for a Public Mobile Virtual Network Operator Service License in the KSA to be hosted by Zain. In preparing their Applications, Applicants are referred to the totality of information made available by CITC including, without limitation, all materials on the CITC website such as the Commission Statutes, Decisions, Public Notices, Regulatory Framework Documents, Questions and Answers, and Public Consultation Documents. 1 DEFINITIONS The words and expressions defined in the Commission Statutes shall have the same meaning when used in this RFA. The following words and expressions shall have the meaning assigned to them below unless the context of the RFA requires otherwise. Advisors mean CITC representatives, agents, advisors or consultants including their respective employees; Applicant means a Consortium that submits an Application; Application means an application for a License to provide Mobile Virtual Network Operator Services in the Kingdom filed in response to this RFA; Authorized Signatory means any person who is duly authorized by each member of the Consortium through the provision to the Commission of a valid power of attorney made by the duly authorized representative of each member of the Consortium and in the form given in Appendix 5. In the case of a power of attorney issued in a jurisdiction other than the Kingdom, it should be duly attested by the relevant Saudi consular mission in the country of the member of the Consortium; Bank Guarantee means an unconditional and irrevocable guarantee meeting the criteria set out in Section 4.2.8 of this RFA and in the form and having the content of the Bank Guarantee Form (Appendix 9); Bank Guarantee Form means the form attached to this RFA as Appendix 9 of this RFA; Page 2 of 60 Request for Applications for Licensing of MVNO Services Business Proposal means the business, commercial and operational plans of the Applicant concerned; CITC or Commission means the Communications and Information Technology Commission; Compliance Checklist means the list of documents contained in Appendix 13; Consortium means a group of members including companies/establishments and an MVNO partner that have agreed to work together as an Applicant and that have committed to establish a Saudi-registered company in order to become eligible to hold the MVNO license if selected to do so in accordance with relevant laws and regulations of the KSA;
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