Annual Report www.citc.gov.sa 1436 - 1437 2015
The Custodian of the Two Holy Mosques King Salman bin Abdulaziz His Royal Highness His Royal Highness Prince Mohamad bin Naif bin Abdulaziz Prince Mohamad bin Salman bin Abdulaziz
Crown Prince & Deputy Prime Minister Second Deputy Prime Minister Deputy Crown Prince Table of Contents
Chairman’s Statement 10 6. Studies 74 Governor’s Statement 12 6.1 Update of the Market Definition, Designation and 74 Dominance Report for the ICT Sector
6.2 Study of the Telecommunication and Information 74 Technology Market in the Kingdom
6.3 Status of ICT in the Kingdom 76 1. Executive Summary 16 7. Growth and Indicators 2. Regulatory Framework 22 of the ICT Sector in the Kingdom 82
3. CITC Strategy (2016-2020) 26 7-1 Mobile Telecommunications Market 82 7-2 Fixed Telephony Market 83 7-3 Broadband Market 84 7-4 Internet Services 86 4. Current Situation 32 7-5 Telecom Services Sector Revenues 87 7-6 International Internet Bandwidth 88 7-7 Domain Names Registered in the Kingdom 88 5. Main Activities and Achievements 40 7-8 ICT Contribution to the National Economy 89
5.1 Licensing of ICT Services 40 5.2 Consumer Protection 46 8. Appendices 5.3 Regulating the ICT Sector 53 94 5.4 Management of Scarce Resources 57 5.5 Universal Service Fund (USF) 66 Appendix A: Decisions of the Board of Directors 94 Appendix B: CITC ebsites 98 Appendix C: Code of Ethics and Professional Conduct 100 Appendix D: CITC Financial Accounts 102 10 o le roa an penetrat on rate o t e ou e ol populat on teledensity of fixed ontr ut on o t e tele o un at on e tor n t e er e
penetrat on rate o o le tele o u e roa an n at on er e 1 5 penetrat on rate o at t e le el o t e 2015 ou e ol populat on 5 50 en o 2015 nternet penetrat on rate o t e populat on
information technology systems with the sense, the ICT sector in KSA has been giv- ecommunications services has reached then set ambitious goals as part of a com- in this sector to become one of the major economic system will have the greatest en great interest and support by the wise approximately 167.5% at the level of the prehensive strategy to develop the sector sources of income. Chairman’s impact in providing the best services to government under the leadership of the population, and the a household teleden- in order to address these challenges, and the end user, and increasing the degree of Custodian of the Two Holy Mosques and the sity of fixed telecommunications servic- reach global and regional pioneering, and I am pleased, on behalf of the Board of Statement knowledge and education among the dif- Crown Prince and deputy Crown Prince – es reached approximately 34%, and the to achieve the visions and objectives of the Directors, to present the annual report ferent segments of society; which leads to God save them - in order to make the most Fixed broadband penetration rate reached state in the coming period. The draft of the of the Communications and Information No longer is any country able to ignore the the achievement of development in various of the potential of this sector to serve the approximately 50% of households, and general strategy has included four impor- Technology Commission for the fiscal year rapid developments in the field of telecom- scientific, cultural, economic, social and citizen in his daily life and to facilite it; in the mobile broadband penetration rate tant pillars: infrastructure, information 1436/1437H (2015); which reviews the munications and information technolo- other aspects. addition to increasing the effectiveness of reached about 106% of the population, technology industry, the skills of commu- entire achievements and activities of the gy, and the adoption of new technologies performance of various government facili- and the Internet penetration rate reached nication and information technology, and commission and during the past year, seiz- and services as a key element that gives The rapid technical development and the ties, the business sector, as well as its con- about 68.5% of the population. In addition, digital transformation initiatives. These ing the opportunity to thank the members the country the ability to compete in a glo- emergence of new technologies in the tribution to push forward the development, the contribution of the ICT sector in the trends in its entirety aim to represent the of the Board of Directors, and HE the Gov- balizing world. While the rate of change is world of telecommunications and infor- and raise the efficiency of the national GDP stood at around 6%. agenda of the Kingdom towards the digital ernor and all employees for their continu- sometimes demanding, the digital revolu- mation technology have led to discover- economy; and creating an investment en- transformation at the national level. ous efforts to achieve its objectives, calling tion has affected human life in a way that ing new horizons and availability of more vironment built on the foundations of clear Due to the passage of nearly fifteen years The Ministry and the Commission will con- on God - the Almighty - to keep our dear cannot be ignored. It has controlled the so- new and promising opportunities. Such a transparency and non-discrimination, and since the start of opening telecommuni- tinue implementing the sector develop- country under the leadership of the Cus- cial, economic and cultural lifestyle. Eco- digital revolution will pave the way for new to allow the private sector to invest in the cations and information technology ser- ment strategy and achieving the strategic todian of the Two Holy Mosques- may God nomic development is now determined, to forms of partnerships with businesses and activity of telecommunications and infor- vices markets in the Kingdom, and rapid vision set until 2020 represented in the protect him - and help us all to do what is a large extent, by the ability of countries non-governmental organizations, commu- mation technology, in order to contribute to technical developments in this area dur- transition to a digital society and economy, entrusted to us with honesty and sincerity. to cope with the rapid development in the nities and individuals in various fields, to the GDP, and the adoption of the approval ing the last period, it became necessary to to increase productivity, provide commu- field of telecommunications and informa- bring about a radical change in the way of electronic transactions in various fields. assess the current situation of the sector, nications and information technology ser- tion technology and promotion of its use. the provision of telecommunications and As a result of such efforts; by the end of identify the difficulties it faces, study the vices to all segments of society in all parts Dr. Mohammad I. Al-Suwaiyel The interaction of telecommunication and information technology services. In this 2015, the penetration rate of mobile tel- global and regional developments, and of the country, and build a strong industry Chairman of the Board
10 Annual Report 11 2015 opment projects. This strategic plan which set up a national strategy and covers the period from 2016 till 2020. five-year plans in collaboration with The strategic plan is based on the sig- government agencies. The first oper- nificant advances in the kingdom since ational plan for e-government trans- the establishment of the Commission Development and implemen- actions which was from the year 2006 as a regulator of the telecommunica- tation of a national plan for to the year 2010 has been completed in the distinct importance of this sec- The Kingdom has achieved great tions and information technology sec- the deployment of broad- and currently the second operational tor in driving the wheel of progress, success in the deployment of tel- tor which opened the door for compe- plan that covers the period from 2012 and its contribution to raising the effi- ecommunications and information tition according to deliberate carefully band services in the Kingdom to 2016 is being implemented. ciency and performance of other sec- graded plans to achieve the goals of tors, and in the development and ac- technology services, and promotion each stage. The plan emphasizes the In terms of serving beneficiaries of celeration of the pace of development. of their use all over the Kingdom, commitment to build a vital commu- the digital divide, contributing in a telecommunications and information Despite the large geographical area nication and information technolo- national Informatics security ecosys- technology services, and to address of our beloved nation, the high popu- gy sector to support the vision of the tem that is able to meet the challeng- their complaints, CITC has developed lation density in the major cities, and Kingdom in the transition to the infor- es and risks threatening the ICT sys- an electronic system that enables the the spread of villages and hamlets mation society and knowledge-based tems in the Kingdom, and other digital user to submit his complaint to the with low density population, the King- economy. transformation initiatives that aim to service provider directly through CITC Governor’s dom has succeeded in overcoming finally build a communication and in- website, or through its application on these challenges, and has achieved The draft of the strategic plan of the formation technology sector that is smart devices. The complainant is no- Statement great success in the deployment of 15 115 Commission includes ambitious goals capable of keeping pace with modern tified by a text message with proce- telecommunications and information that will enable the Kingdom to reach technologies and meeting the needs of dure number, with the ability to track technology services, and promotion of global leadership and raise the com- telecommunications and information the status of the complaint through their use all over the Kingdom, espe- Saudi Arabia is witnessing growth petitiveness regionally and globally. technology services users. CITC website and through text mes- cially having pursued a privatization The plan also includes major initia- sages sent automatically by the sys- and development in all aspects of program through the liberalization of life resulting, with the grace of God, tives branching out to a large number The Commission is currently work- tem. It also enables the complainant to services markets and opening com- of activities and tasks that must be ing on a number of projects in order escalate the complaint to the Commis- in progress, prosperity, and welfare petition to provide advanced commu- for its citizens. The wise government, implemented to achieve the objectives to increase investment opportunities sion in the case of dissatisfaction with nication and information technology set. One of the main initiatives is the in the sector, notably the licensing of the treatment by the service provider. led by the Custodian of the Two Holy services throughout the Kingdom in Mosques, His Highness the Crown development and implementation of hosting and cloud computing, granting This report reviews many projects and a comprehensive manner, seeking to a national plan for the deployment of licenses for providing broadband sat- programs that aim to develop the ICT Prince and Deputy Crown Prince - God provide high quality services at rea- save them – paid increasing attention broadband services in the Kingdom, ellite services, adopting the concept of sector, and utilize it in various areas of sonable prices. The great government which is considered the cornerstone unified licenses, establishing national economy development. I would like to to sectors with rapid growth and de- support had been instrumental in re- velopment. Among those sectors is the of providing all the modern services and neutral Internet exchanges, the take this opportunity to give my thanks ducing the development gaps between and accommodating the flow of infor- program to contribute to supporting and thanks of all the employees of telecommunications and information regions of the Kingdom. The support technology sector which is one of the mation resulting from the use of such small and medium enterprises in the the Commission to His Excellency represented in funding communica- services and their applications, in ad- sector, and creating an appropriate the Chairman of the Board - Minister promising economic areas with higher tions and information technology pro- returns in the field of development and dition to the establishment of nation- regulatory environment to attract and of Communications and Information jects through the Universal Service al Internet exchanges, updating the localize foreign investment and en- Technology, and Their Excellency the provision of active industries based Fund for the delivery of voice commu- on qualified manpower development. Telecommunications Act and the By- hance network and information security. members of the Board. I would also nications services, and Internet ser- laws to keep pace with technological In implementation of the visions of the like to thank all employees of the Com- The Government of the Kingdom re- vices to all remote areas, in order to alized the importance of telecommu- developments and modern services Kingdom represented in the adoption mission for their efforts, and thanks to cover all towns, villages and hamlets that has emerged over the past dec- of communications and information all who contributed to the develop- nications and information technology in the Kingdom with communications in the development of society and its ade, updating Frequency Spectrum technology systems and activating ment of the work of the Commission services. The service was actually policies, working on increasing com- their use to gain access to an infor- through useful suggestions and con- impact on the national economy and provided for around 15,115 localities the achievement of development in petitiveness of communications and mation society and digital economy, structive criticism in the Kingdom. information technology services mar- the Kingdom has taken continuous various scientific, cultural, social and In order to develop the ICT sector, the other aspects So, it worked to adopt e er e a a tuall kets in the Kingdom, creating equal steps in the development of govern- With Best Regards Commission is currently preparing opportunities for all operators, adopt- ment work and spreading the concept the orientation prescribing the need a strategy for the Commission which pro e or aroun to shift to the information society and ing vocational rehabilitation programs of electronic transactions in the var- seeks to achieve the objectives and 15 115 lo al t e n t e for national workforce in order to in- ious government agencies through Dr. Abdulaziz Salem Al Rwais knowledge-based economy believing visions of the Kingdom and its devel- n o vest in the IT sector, working to bridge the e-Government Program (Yasser) Governor of CITC
12 Annual Report 13 2015 1 Executive Summary
14 Annual Report 15 2015 I. Licensing 2. Consumer Protection CITC issued new licenses for a number CITC has issued and approved the con- 51 0 of different services. The total number sumer/user protection document af- on u er o pla nt ere of licenses issued reached 315 by the ter studying and analyzing causes of re e e end of 2015. In addition, the “Request repeated consumer complaints, and for Application” (RFA) was prepared implementing solutions to achieve and published for Zain-hosted Licens- consumer protection and avoid re- e on a e een ing of Mobile Virtual Network Operator peated complaints. a e t e o ttee or olat on to t e (MVNO) Services in the Kingdom of ele o un at on A t Saudi Arabia with a view to promot- During 2015: 51,094 consumer com- 1 ing competition in the mobile services plaints were received, 731 decisions market and enhancing choice for users. have been made by the committee for CITC studied the global trends towards violations to the Telecommunications unified licensing and its impact on the Act, 700,000 numbers has been ported telecommunications market in KSA, between licensed service providers, 00 000 nu er a een porte et een and the ideal approach and appropri- and 732,504 requests were received l en e er e pro er ate timing to adopt it in the market. to filter sites that has illegal content.
Number of Licensees by Service
lo al o le er onal e ele o er e o un at on er e 2
o le ele o er e Auto at e le o at on A er e lo al o le er onal o un at on er e 1 ul er e o le rtual Au o e t 1. Executive Summary et or perator 2 00 er e
Pursuant to Royal Decree No. 53703 dated 19/12/1433H, which emphasized the importance for all all enter er e Ministries and other Governmental Agencies to act on article 29 of the Council of Ministers Rules that ata er e were issued under Royal Decree A/13 dated 03/03/1414H; and pursuant to the stipulations in Article 2 16 of the CITC Ordinance, this Report has been prepared and includes the most important achieve- et or perat on ments of the Commission during the fiscal year 1436/1437H (2015G). These are summarized below: nternet er e enter A 1 ele o otel er e 5
16 Annual Report 17 2015 3. Regulating the ICT Sector 4. Management of Scarce 5. Studies 6. Universal Service Fund (USF) Resources CITC launched a project examining the In the field of management of scarce includes up-to-date spectrum tech- CITC conducted a number of studies in With regard to deployment of telecom- while work is currently underway to amendment of the Telecommunica- resources, CITC continued its spec- nologies in spectrum management, order to develop the sector and extend munication services to remote loca- provide USF service to the remaining tions Act in the light of developments trum management activities and allocation, and coordination on a lo- its services. These included: Study on tions that are not commercially viable; locations. Also, preparation and adop- in the sector, and to propose the nec- continuing the implementation of the cal and international level, it was re- ICT Market Definition, Designation and CITC, through the USF, has tendered tion of the sixth annual operating plan essary adjustments to it in order to National Frequency Plan (NFP). There leased again for tender in 2015. CITC Dominance, study on ICT Market in 11 projects for the provision of voice for 2015 was completed. The plan cov- cope with these developments. In ad- was a decrease in the percentage of also continued managing numbering KSA, and a study of the status of ICT and Internet services to a large num- ers a number of Regions and Governo- dition, A study was conducted on the vacated frequencies since most are resources requests, studying, and al- in KSA. These studies aim to update ber of communities in remote areas of rates of the Kingdom and comprises prices for telecommunications servic- used by government agencies under locating them. the markets that are subject to dom- several governorates. Service has now three projects covering the provision es in the Kingdom. These prices were prior NFP approvals. As for the spec- inance, designate the Service Provid- been provided to about 15,115 resi- of voice and Internet services to about compared to prices in other countries trum management system, which ers that are dominant and determine dential communities in remote areas, 3,900 additional remote localities. in the region and the world. Further- the regulatory remedies required to more, CITC regulated the prices for prevent anticompetitive practices. wholesale termination of voice calls CITC has sought through this study to on mobile and fixed telecom networks understand and analyze the current by reducing the price of interconnec- state of the market of telecommuni- tion between mobile phone operators cations services and information tech- to 15 Halalas. This was performed af- nology. CITC is seeking to encourage 11 ter finalizing the benchmarking study stakeholders; by highlighting the key pro e t or t e pro on o o e an and public consultation on it. challenges facing the development of nternet er e to a CITC has initiated a project to identify the sector in the Kingdom, and to stim- lar e nu er o a cloud computing governance mod- ulate the transition to the information o un t e n re ote area o e eral el and develop a suitable regulatory n t ate a pro e t to ent a lou society, and to encourage the adoption o ernorate framework for the local market. In o put n o ernan e o el an of communications and information e elop a u ta le re ulator addition, it started the soft launch o t laun o t e portal Technology services, and applications to the ICT portal which aims to be a ra e or or t e lo al ar et a to e a in the business environment. comprehensive directory for local ICT o pre en e re tor companies and organizations working or lo al o pan e an or an at on or n n in the ICT sector. t e e tor 15 115 re ent al re ulate t e pr e or o un t e n ole ale ter nat on o o e re ote area calls on mobile and fixed tele o net or re u n t e pr e o nter onne t on et een o le p one Study on ICT Market Definition, operator to Designation and Dominance CITC launched a project 00 examining the amendment of t ree pro e t Study on ICT Market in KSA, o er n t e pro on the Telecommunications Act o o e an nternet er e to a out in the light of developments in 00 a t onal Study of the status of ICT in re ote lo al t e the sector alala 15 KSA
18 Annual Report 19 2015 2 Regulatory Framework
20 Annual Report 21 2015 2. Regulatory Framework The Telecom Act specifies number o o e t e e a n o e t e n lu e CITC is responsible for regulating cies, ensure transfer and migration the ICT sector in the Kingdom. The of telecommunications technology Telecommunications Act, enacted in to keep pace with its development, 2001, and the Bylaws, issued in 2002, ensure clarity and transparency of provide the basis for the regulatory procedures, ensure the principles of o a e uar t e pu l ntere t an framework. The Act lists a number of equality and non-discrimination, and t e u er ntere t a ell a a nta n the confidentiality and security of o en ure pr n ple objectives for CITC including to provide safeguard the public interest and the tele o un at on n or at on advanced and adequate telecommuni- interests of users and investors. CITC is responsible o e ual t an cations services at affordable prices, The CITC Ordinance was issued in non r nat on ensure creation of a favorable at- 2001 and amended in 2003. It defines for regulating the ICT o en ure lar t mosphere to promote and encourage the mandate, functions, governance, sector in the Kingdom an tran paren fair competition, ensure effective and and administrative and financial inde- o en ure tran er an o pro e ure interference-free usage of frequen- pendence of CITC. rat on o tele o un at on te nolo to eep pa e t t e elop ent o en ure reat on o a ora le at o p ere to pro ote an en oura e a r o en ure e e t e competition in all fields of an nter eren e ree tele o un at on u a e o re uen e
o pro e a an e an a e uate tele o un at on er e
22 Annual Report 23 2015 CITC3 Strategy (2016 – 2020)
24 Annual Report 25 2015 3. CITC Strategy (2016 – 2020) In order to achieve the tasks and goals al best practices, and developments 1. Gathering requirements and entrusted to it, the Commission start- in telecommunications and informa- identify and analyze the cur- ed in 2015 to prepare its strategic plan tion technology regional and global rent situation: for the years (2016 -2020), which will markets, and the developments and be presented to the Board of Directors changes in the services and technol- The team, formed to prepare the plan, for approval during the first half of ogies, in addition to conducting inter- started to identify and collate the re- 1437H (the second quarter of 2016). It views and questionnaires with stake- quirements necessary to prepare the has been prepared, taking into account holders and interested parties from plan within five stages to evaluate the the current situation of the telecom- governmental or private authorities. current status of the Commission and munications and information technol- The Commission followed a method- the telecommunications and informa- ogy sector, the current policies and ologyto develop its new strategy using tion technology sector in the Kingdom regulations compared to internation- the following phases: and in global markets as shown in the figure below:
Re u re ent olle t on a e e l t
e tor Re e o at onal er or an e lan pol e nter e t oar e er an re ulat on A e ent o A A e ent o A ore t an 50 nter e t urrent e tor e ut e ana e ent tatu re ulator ra e or nter e t all e e ut e o ttee o lo al e e nolo ren nter e n 21 o ern ental A e ent o e a a e an re ear ent t e an e an on u er an er e pro er tren or op t nternal e ternal nternat onal pro e onal n ta e ol er en ar pe tat on A e ent
A e ent o en ar o lea n ue t onna re o ore nternal an e ternal ountr e an t an 000 u er an ta e ol er e tor e elop ent u r er 10 en ar n ountr e
26 Annual Report 27 2015 2. Preparation of the strategy and 3. Most Prominent Strategic setting goals and indicators Initiatives er enta e o o er n re ote re on t After finishing the stage on the Evaluation rele net or t a n u pee o To achieve these strategic objectives of the current situation, all outputs were and to reach the desired targets in the gathered, and a list of the most prominent 10 e a t e on year 2020 several strategic initiatives challenges was set in three main areas; in- are being worked on, including: frastructure, ICT service & content ecosys- tem, and the ICT skills. Accordingly, the draft of the Strategic Plan of the commission con- taining a number of aspirations and ambi- tions that address the challenges that have at onal nternet Re ulat on o o t n urrent tatu been classified for each area set within the an lou o put n vision of the commission and its mission, 2015 an e o nt and was translated into (5) strategic objec- tives and annual targets till the year 2020 1 as follows: ar et 2020 et up an operate lo al nternet Define the optimal mechanism for e an e po nt o t at nternet re ulat n o t n an lou traffic will be shared between o put n er e n t e n o nternet er e pro er an a n lu e uan e o a 1 er enta e o a e to net or o n rea e t e o e t o tele o u ontent el er net or l en e or t purpo e t a pee o 100 1000 e a t e on n at on an n or at on te nolo to o e n ur an re on
R ll on AR urrent tatu 2015 R ar et 2020 100 ll on AR 1 2 5 25 ar et 2020 urrent tatu 2015
n rea n t e a a la l t o re uen e or n an e e ual an e e t e o pet t on 2 5 roa an Re ulator ra e or en n roa an rele o un at on net or er e and encouraging it in the fields of telecomu- tarte for Unified Licenses n l ne t t e re o en at on o n at on an n or at on te nolo atell te er e
prea n roa an re tu n pro on o ar ou tu n t e nternat onal tren an rele net or n tele o un at on an in the field of satellites, 2 5 1 0 t e n o n or at on te nolo er e e pe all t o e pro e urrent tatu ar et 2020 5 000 00 roa an er e t at re entl 2015 under a unified license urrent tatu ar et 2020 e an to e a a la le n o e 2015 ountr e
28 Annual Report 29 2015 Current4 Situation
30 Annual Report 31 2015 4. Current Situation
4.1 4.2 Organizational Structure The CITC Board of Directors
The Board of Directors is the highest governing body of CITC and oversees its administration, the conduct of its affairs, and the development and im- plementation of its general policies. CITC Board members are: oar o ellen re tor r o a e Al u a el e ut e o ttee t e n ter o o un at on an n or at on e nolo o ernor
n er al oar olat on nternal ettle ent er e un e retar Au tor o ttee
n or at on o pet t on e n al e nolo A a r an e al A a r pe tru A a r
nan al o pet t on A n trat e e al A a r e n al A a r pe tru A a r A a r A a r
r r r r a et n or at on o puter e al e n al re uen e u an nternet e al ono tu e on u er er e ro er e n al pe tru re uen e upport nan e e nolo er en A ounta l t tan ar lann n Re our e t ulat on er e on ultat on ar et tu e e t on an en e A a r upport ontrol en e er e er e Re pon e ea ollo up u er n tr ut on ultan Al al a a A Al a an A ul A Al u a le A ula ale Al R a
n tr o o un at on n tr o nan e A o ernor an n or at on e nolo eput a r an Studies Support Security Systems Services Follow-up Licensing Follow-up Protection Settlement Numbering Complaints Distribution Nomination Networks & Resolutions Operational Preparation Resolutions Safety Subscribers’ Subscribers’ Frequencies ICT Services ICT Frequencies Human Legal Support Market Studies Financial Implementation Buildings Internet Studies Names of Saudi Revenues Providers Affairs National Plan for IT IT & Applications Document Internet Domains Support Services Technical Support Technical Emergency Cases & Quality Approval development Procurement Services Restore in Economic & Market Disputes Settlement Technical Standards Technical Frequencies Control CIT Services Quality CIT Committeee Support Frequencies Planning Resolutions Follow-up Settlement Committee Studies and Technology Human Resources Planning & Budget Resources Services Management Centers Financial Accountings
P lic elations ational ommittee Information Planning overnor s ffice International overnment I rea in I rea in Information for Information ons ltants Sec rity Pro ects ffairs ransactions Mecca egion astern egion Society
r r r r Office Total Quality Total Management Follow-up Office Internal Business Communications Governor’s Office Strategic Planning Projects Management Process Management aee er an al Al Ra A ula A Al a a e A Al a ar
r ate e tor r ate e tor r ate e tor n tr o ra e an n u tr
The major Board decisions are listed in Appendix A of this Report.
32 Annual Report 33 2015 4.3 Organizational Capability 4.3.1 Manpower CITC strives to attract the qualified and Qualifications professional workforce it needs to exe- cute its mission and attain the goals for 400Employees which it was established. It maintains a Number of Employees in CITC stimulating and highly productive work environment. a ter 22
plo a 2
a elor on au au plo a 1
ool 11
elo ool 2
1 Experience & Specializations Types of Training Courses Provided nan al plo ee A roa o e t ٪ e n an 13 ٪ ana e ent uper or 17 A n trator 2
on ultant
n neer o puter 2 pe al t e al pe al t
34 Annual Report 35 2015 4.3.2 International Participation
CITC works on the development and protection of the Kingdom’s interests 4.3.3 in the areas of telecommunications eet n n E-Readiness and information technology. It com- 1 CITC Electronic Transformation Percentage municates with the organizations of To implement the Council of Ministers telecommunications and information resolution No. 252 dated 16/07/1431H t ea ure ent technology sector in the Arab countries (29/06/2010G) on support and promo- and other nations in order to increase tion of the mechanism of transition to fifth Measurement 2 0 cooperation and exchange informa- the application of e-government and in tion and experienc In this context; the order to be a leader in the electronic ourt ea ure ent 2 0 Commission is involved in a number transformation at the local and global of related regional and international eet n n A en e an pe al e o ttee levels, the Commission scored 92.9% r ea ure ent 5 -organizations in communications and 44٪ in the sixth measurement of the tran information technology sector. Among sition to e-government transactions e on ea ure ent 5 2 the most prominent of those organiza- according to standards and criteria of tions is the International Telecommu- electronic transactions program (Yas- r t ea ure ent 5 nication Union, specialized commit- ser). tees in the United Nations Economic and Social Council, the Arab League, the Cooperation Council for the Arab States of the Gulf, and the Arab Regu- t er eet n ent lators Network of telecommunications 2 The Commission ranked first in a comparison against a number of and information technologies. other national authorities which provide electronic services, which The Kingdom holds several positions includes nine authorities: as president or vice president in many conferences and meetings of regional and international organizations and their workteams. The Kingdom also provides numerous contributions to those organizations. It places special Ara ea ue eet n emphasis on reaching consensus with 1 Anot er Aut or t all partners in order to achieve com- mon goals. Anot er Aut or t 2
Anot er Aut or t
Anot er Aut or t Anot er Aut or t 5
Anot er Aut or t
Anot er Aut or t 21
Anot er Aut or t 1
36 Annual Report 37 2015 Main5 Activities and Achievements
38 Annual Report 39 2015 5 Total Number of Licensees by Year Licensing of ICT Services
1424 1426 1428 1430 1433 1434 1435 1436 Service 5.1 )2004( )2006( )2008( )2010( )2012( )2013( )2014( )2015( Licensing of ICT Services Fixed Telecom Services 1 1 1 2 2 2 2 2
Mobile Telecom Services 2 2 3 3 3 3 3 3 2 2 ــ ــ ــ ــ ــ ــ Mobile Virtual Network Operator 5.1.1 Licensing (Individual & Class) n ual en e la en e Data Services 2 2 2 2 2 2 3 3 The total number of active licenses by Internet Services 23 47 53 56 40 41 50 47 the end of 2015 reached 315 licenses an l ne er e nternet er e ro on The Commission issues two types of VSAT (very-small-aperture terminal for 5 7 14 18 19 19 19 18 licenses according to its regulations, o le er e et or a e alue er e satellite) Services namely: Global Mobile Personal Communication perat on o pu l o le er onal o un a 2 2 2 2 1 1 2 2 tele o un at on net or t on er e a atell te Services (GMPCS)
ــ ــ ــ ــ e an o le tele o un An ot er er e or net or t e Internet Service on Aircraft 1 1 1 1 at on er e to on e ata o on e e re u re ــ ــ ــ ــ 2 1 1 ــ nternall an lo all a la l en e Mobile Service on Aircraft Automatic Vehicle Location (AVL) An ot er er e t e 6 24 26 44 64 74 89 99 o on e e re u re Services an n ual l en e Bulk SMS Services 6 92 135 137 127 131 116 99
3 6 5 6 14 24 26 ــ Audio Text (700) Services
27 24 20 15 11 10 7 ــ Call Center Services 2 ــ ــ ــ ــ 5 5 2 ــ 15 Electronic Wallet Services 0 ــ ــ ــ 1 5 4 4 ــ Prepaid Card Recharging Services 2 2 4 4 4 4 4 3 3 ــ (Network Operations Centers (NOCs Total Number of Active Licenses ــ ــ ــ ــ ــ ــ ــ ــ Automatic Calling to Subscribers
5 6 6 7 6 3 ــ ــ Telecom Hotel Services Interactive Voice Message Broadcasting 1 1 1 1 1 1 1 1 Services TOTAL 48 222 289 313 292 309 326 315 2012 201 201 2015
40 Annual Report 41 2015 Licenses According to Service
lo al o le er onal 5.1.4 e ele o er e o un at on er e Study of regulatory options for 2 unified licenses
o le ele o er e Auto at e le o at on Unified licensing allows a variety of tu e t e lo al A er e communications and information tech- nology services to be provided under a trend towards unified lo al o le er onal single license. The Commission stud- l en n an e aluate t o un at on er e 1 ul er e ied the global trend towards unified licensing and evaluated it in the con- n t e onte t o l en n text of licensing policy in the kingdom. pol n t e n o o le rtual Au o e t This enabled the Commission to ana- et or perator 00 er e lyze various unified licensing systems, 2 and their impact on the telecommu- nications market in the kingdom, and ata er e all enter er e determine the best approach and tim- ing appropriate to adopt a unified li- 2 censing policy in this market. This re- quires a transitional regulatory phase et or perat on nternet er e for existing licensees before the entry enter of new investments and alliances. The graphic below summarizes the com- parative study with regard to trends of A 1 ele o otel er e 5 unified license:
5.1.2 5.1.3 Licensing Mobile Virtual Net- Licensing Broadband Satellite work Operator (MVNO) Services Services
During 2015, CITC prepared and pub- The objectives of this project are to • Publishing a public consultation Specific Services License Unified Services License Re trat on or er e er e ro on ot e lished the “Request for Application” study global trends in currently avail- documents after the approval ro on (RFA) for Zain-hosted Licensing of Mo- able broadband satellite services, from CITC's board of directors. bile Virtual Network Operator (MVNO) assess the need to license such ser- • Receiving the comments on the Technology Specific e nolo eutral or an er an ur e Services in the Kingdom of Saudi Ara- vices in Saudi Arabia, review appro- public consultation documents, apan & Service Specific & Service Specific n apore e en er a bia. priate licensing options, assess the performing analysis to the com- A Once applications have been received economic impact on the ICT sector and ments , and writing a report about ala a n te n o Au tr a then they will be evaluated. If satis- determine an appropriate time frame it. pt au Ara a Au tral a factory, the third MVNO license will be for introducing these services in the l pp ne n a awarded. Kingdom. In this context, and building The approval of the board of directors on the accomplished work in the pre- has been secured, and CITC is current- vious years. the following was accom- ly awaiting Ministry of Finance ap- plished in 2015: proval on the fees.
42 Annual Report 43 2015 5.1.5 Saudi Network Information Center 5.1.6 (SaudiNIC) ICT Equipment Type Approval
CITC through SaudiNIC continued its • Executing Phase (I) of the inte- CITC reviews the technical standards role of registering and administering gration between domain name for telecommunications and infor- Saudi (.sa) Internet domain names. registration and commercial reg- mation technology equipment and SaudiNIC has also approved a number istration provided by Ministry of updates them continuously and pe- of important additions to the services Commerce and Industry. riodically. It also works to update the provided to users through the elec- hardware approval procedures and 5826 18439 tronic services portal giving greater • Registered 4,551 new domain periodically issue customs clearance Reviewed over 5,826 applications Processed over 18,439 applications flexibility and speed. The following names in 2105, bringing the total permissions electronically via com- for ICT equipment type approval for type approval and customs release was accomplished during 2015: number of registered domains to munication and information tech- of imported ICT equipment. 42,098. nology devices licensing system; to ensure the speed and effectiveness of achievement. The Commission ex- amines the clearance permissions for telecommunications and information otal nu er o re tere o a n technology equipment received from individuals, companies, and licensed operators. It works to ensure compli- ance with the technical specifications and regulations applicable in CITC, and 286 4800 then issue the necessary approvals for Provided technical support and con- Studied and responded to over clearance. During 1436/1437H (2015) sultations on over 286 seizures of ICT 4,800 enquiries related to equipment. technical standards. a 551ne re tere the following has been achieved: 20 o a n na e n 2105 1 500 1 1
Number of Domains Recorded (Cumulative) 111 5 2015 20 5 2 201 1 2 00 2 1 ICT Devices Licenses and 2055 201 Accreditation 2012 2 2011 2012 201 201 2015 2011 2 1 u to Relea e en e Appl at on A re tat on Appl at on
44 Annual Report 45 2015 5.2 Consumer Protection Distribution of received complaints according to Type 5.2.1 User Complaints 0 2 The Commission is interested in 2 0 monitoring providers of telecommu- Percentages 2 nications services in the Kingdom of complaints and addressing the causes of us- er’s complaints in an effort to pro- according 2 tect them and maintain their rights. to Type of 51.094 complaints were received Service from users of telecommunications 1 1 1 and information technology services during the year 1436/1437H (2015). an l ne nternet Below, there are details and general o le 2 5 statistics on complaints of users: 5 2 0 0 0 1 0 0 e t on to e t on to on ple en o e el or on pro on er e u on o pl an e ran er or on en n n lu on o tur an e n o e an u pen on or tat on o er nterrupt on o or on a t a er e ta l e t er on tran er o on pro on u r er nan al an ellat on o a Re ue t to er e t on o er e a t on an n or at on u er t ll eta l a e n a l at on er e an el or modification Confidentiality u pen a er e te porar l
15 1 o pla nt u on 51,094 nternet repa o tpa et o lar t 5 complaints were received from an l ne o le users of telecommunications and o pla nt information technology services Appl at on A e
o pla nt Appl at on Evaluation of Complainants or pl t
Satisfaction about Complaints o pla nt Processing ollo up et o 51 In addition to its continuous effort to resolve e o o pla nt 51 0 complaints by subscribers, the Commission reat ent studies these complaints and analyses them 1 5 - especially the most frequent ones - to re- 20 o pla nt Number of duce the rate; and then seeks fundamental reat ent Re ult Complaints solutions to reduce their recurrence. 2015 201 201
46 Annual Report 47 2015 5.2.2 5.2.3 Publishing a Document on Con- Violations of the Telecommuni- sumer/User Protection cations Act
Communications and Information Tech- munications and information technol- The document includes in 11 articles Clause (38/5) of the Telecommuni- nology The Commission announced on ogy services users after studying the in which providers of communications cations Act stipulated that activities 12/09/1436H (23/09/2015G) that it reasons for the repeated complaints and information technology services violating the law shall be considered would start to apply the Communica- and analyzing them, and developing were obliged to commit to a set of pro- by a committee whose members will tions and Information Technology Ser- solutions to them in order to address cedures and controls that are intend- be nominated by a resolution of the Telecommunications Law Violations Resolution Committee vices Protection Document approved them, and to avoid recurrence and to ed first and foremost to protect the Board. by the Board of Directors as part of achieve the protection of users. applicant / user in: 2 21 its efforts in the protection of com- 1 20
1 121 1055 1 1
o to eal t 2011 2012 201 201 2015 t e re t l t otal u er o n o n olat on otal u er o Re olut on ue
Re ue t u pen or er e ro er an el t e er e Violations Fines till the end of 2015 Resolutions Issued by the Committee o l at on to prote t according to Top Five t e u er le roa n a le ut
olat e ele o e e 2 er e ll
er e ro er o l at on n eal n t repa t e o pla nt o u r er
u er orta l t eal n t nternet a a e R1 1 1 50 R 1 00 0 ue npa olat on olat on pa t ll Re olut on t ll t e en o 2015 t e en o 2015 on ple entat on
48 Annual Report 49 2015 5.2.4 5.2.6 Mobile Number Portability No. of Transferred Numbers National Center for Information In the area of management of mobile Security 00 number portability, CITC ensures con- 00 The center aims to raise the level of awareness and knowledge of the dangers of tinuity of MNP services by monitoring information security and digital safety and to raise the level of confidence in elec- service processes and number port- 00 5 tronic transactions in collaboration with its members and partners in the Kingdom ability clearinghouse (NPC) database through training, education and dissemination of useful security information. The 500 operation, verifying proper imple- Center achieved the following during 2015: mentation of MNP procedures by the operators, resolving user complaints, 00 resolving service provider disputes, 00 and looking for means to improve the 2 system where possible. This resulted 200 in more than 700,000 number porta- bility transfers between service pro-
o o u er n t ou an o u er o 100 viders in 2015. 2 0 5.2.5 2011 2012 201 201 2015 Internet Filtering 1594 200000 1664 Cabinet Decree No. 51 dated 6/2/1435 CITC published through CERT-SA, the Visited more than 30 government Sent 1664 warnings to parties whose vested the task for moral and infor- Information Security Policies and Pro- agencies to conduct a full presentation information is registered with the ear- mation content regulation for all com- cesses manual for government agen- about CERT and how to subscribe in ly warning service and the risk man- munications channels, including tra- cies. 35 government agencies were the services. Also we distributed more agement system ditional and electronic, to the General registered in the manual›s website, than 200000 copies of the CERT infor- Commission for Audiovisual Media. and 1594 policy and process were mation security awareness brochure . Pending transfer of this task, which downloaded. is being coordinated with them, CITC continued its mandate to accomplish Received Filtering Requests 000 5 the following in 2015: 500 • Launching unified customer care phone number for the national fil- 000 tering service: 0114619485 2015 250 2500 • CITC coordinates with number Statistics of Computer Emergency of well-known Internet content 2000 providers to remove pornograph- Response Team 1 51 ic contents from their websites. 201 5 0 00 1500 The number of links forwarded to them: 54312 1000 0 • Addition of a new category for 500 2 child abuse to the filtering list, for 201 1 21 22 2 sites that bypass filtering. These totalled 510 links and were re- 0 ported to security authorities. 2012 201 201 2015
o o ent Report or o o enter re tere pe al arn n t t e ea
50 Annual Report 51 2015 5.2.7 5.3 Field Measurements of the Levels of Regulating the ICT Sector Electromagnetic Radiation The objective of this project is to monitor conformance of service providers with the regulations on electromagnetic radiation from wireless base stations. This 5.3.1 5.3.2 5.3.3 project was part of the cooperation program with leading academic and research Updating the Regulate Wholesale Prices of Study on Telecom Services institutions in the Kingdom. In this regard, the following was accomplished during Telecommunications Act National Voice Call Termination rates in the Kingdom 2015: on Fixed and Mobile Networks This update aims to study the CITC periodically reviews the prices r t an e on roup Telecommunications Act issued by the Complementing what has been of telecom services in the Kingdom to t n t e nt a e o te Council of Ministers Resolution No. achieved previously from preparing ensure that they are in line with typ- t e pro e t 74 issued on 05/03/1422H and the public consultation document to ob- ical regional and international pric- repre ent ea ure ent amendments made to it in light of sub- tain the views of stakeholders and of ing. During 2015, the Commission o te n e na a l A ou a ou an sequent developments that have taken the public on the prices of wholesale conducted a comparative study using ort ern or er place in the communications and in in- voice call termination on mobile and a scientific methodology specific to formation technology market. fixed networks, receiving and analyz- assessment of prices of mobile tele- e on roup t n t e The update aims to ensure the intro- ing the views, and concluding to the communications services, taking into 2 te t a e 22 te duction of the latest practices in the recommendations in light of the in- account the developments in the tel- n R a re on an field of telecommunications and infor- ternational benchmarking and of the ecommunications markets, and the a re on n A mation technology, it aims also to en- public inputs. During 2015, the results trends set by companies and service urrentl t e r sure the expansion of the scope of its of the study were presented and ap- providers in marketing their products roup repre ent provisions to include the legalization proved by the CITC Board to reduce and services. . The following table ea ure ent o 1 te n ot R a and regulation of all aspects of infor- the price of interconnection between shows calculation of the share of bas- a re on e n mation technology taking into account mobile phone operators to 15 Halalas. ket costs within GNI per capita for KSA ea ure the current status of the market both vs. benchmark countries within GNI in Saudi Arabia and abroad, the sharp per capita for relative comparison convergence between telecommuni- (% of monthly GNI per capita). cations and information technology services specially in media services and content requires new methods to develop services through electronic applications, systems and advanced 1 2 te licenses, in addition to strengthening the independence of CITC and giving it broader powers to protect the rights of subscribers.
r roup t n t e e ent a e o t e pro e t Halalas repre ent ea ure ent o 1 2 te n e a re on urrentl t e ourt 1 te e on r an roup repre ent ourt roup t n ea ure ent o 1 te t e t a e n e a an Al a a urrentl t e t re on e n ea ure roup repre ent ea ure ent o 121 15 te n a tern a ran an an A r re on e n 52 Annual Report ea ure 53 2015 Mobile broadband services Fixed voice services
R 1 0 R 1 0 1 0 1 0 120 120 100 100 0 55 20 0 A era e 0 5 1 A era e 0 0 0 20 20 0 0 A atar an pa n pt ana a ran e e o a ra n u a t or a nlan olan ur e Au tral a ortu al A Ar ent na ala a pa n pt A er a an ran e olan e o ur e atar an et erlan au Ara a ana a or a nlan a ra n e ealan Au tral a ala a ortu al n te n o Ar ent na e ealan et erlan au Ara a n te n o
Fixed broadband services R Mobile Voice and SMS services R 250 100
200 0
150 0 11 A era e A era e 100 0
50 20
0 0 A atar pa n an pt or a ana a ran e e o nlan ur e a ra n olan u a t Au tral a ala a ortu al A Ar ent na A er a an atar pa n an pt ana a or a u a t nlan a ra n e o olan ur e ran e e ealan et erlan au Ara a Au tral a ortu al Ar ent na ala a n te n o A er a an et erlan e ealan au Ara a n te n o
54 Annual Report 55 2015 5.4 Management of Scarce Resources
5.3.4 Promotional offers by ICT ser- 5.4.1 vice providers Spectrum Management and the National During 2015, about 248 offers were 248 launched by service providers. offers were Frequency Plan launched by service The National Frequency Plan (NFP) was approved by the Council of Min- re uen e to e a ate t n t o ear providers isters in Resolution No. 61, dated 02/03/1429H. The NFP defines the al- A n ent le el location of frequency bands for differ- Specific locations t e ro n e e n o e ent radio services and user categories 01 2 5 5 1 learan e en o 201 to meet the needs of radio spectrum users in the Kingdom in line with inter- 2 5 5 1 learan e en o 2015 5.3.5 5.3.6 national guidelines. The NFP went into Cloud computing and its services. Developing an ICT Portal for effect on 02/05/1429H with an imple- Saudi Arabia mentation schedule divided into two, three and five-year time frames. The CITC has initiated a project to identify a following are the percentages of the re uen e to e a ate t n t ree ear cloud computing governance model, to CITC has been developing an ICT portal gard, the following was accomplished which aims to develop an online portal during 2015: frequencies that have been vacated as develop a suitable regulatory frame- of the end of 2015. work for the local market. for the ICT Sector that offers a range of Specific locations t e ro n e e n o e A n ent le el services for job seekers working in the • Re-launching the ICT Directory at the The project scope included Investi- 1 55 2 5 0 learan e en o 201 gating and evaluating international ICT field. Also contains important tools following link: ictdirectory.citc.gov.sa and local licenses, regulations, con- for assistance in employment, skills • Portal content management and op- 1 2 2 1 5 0.87٪ learan e en o 2015 trols, standards, codes of practice and self-capacity development. erational monitoring. and trends related to the regulation of The ICT Portal also includes a compre- cloud computing services. In order to hensive directory for local ICT compa- Work is currently underway to launch Identify the options and the preferred nies and organizations working in the and promote the ICT Jobs Portal, and approaches. The project aims also ICT sector. Also providing some details performing portal marketing for a Frequencies to be vacated within five years to develop any recommended cloud about these companies and the prod- number of agencies to take advantage ucts and services, they offer. In this re- of the portal and vice versa. computing service provider regulatory Specific locations t e ro n e e n o e A n ent le el framework including licenses, licens- ing processes, standards, and amend- 1 15 21 2 5 15 learan e en o 201 ments to existing CITC statutes. The 1 2 21.04٪ 2 15 1 learan e en o 2015 first phase of this project was com- pleted. ictdirectory.citc.gov.sa
56 Annual Report 57 2015 CITC continued to undertake other activities in the area of spectrum management. Some of which are the following:
Ra o en e arr e out re uen allo at on to o ern ent a en e er e pro er ue nternat onal or an at on an n u 0 5 0 15 al n t e n o or u e n t e pro on ue an rene e 0 or a ateur ra o or a ateur ra o or aeronaut al o pr ate tele o un at on er e l en e or ar t e operator tat on na at on er e an to ena le l en e er e pro er rele te to o er er e to t e pu l o e o t e re uen e ere re tere t t e n or er to prote t t e ro nter eren e ro ot er ountr e
tu e 2 on u te e a re ue t or or a ateur ra o l en n o u er 2 rele e e
oor nat on t t e pe tru u er to Re e e 1 1 a e a te n al ea ure ent on te appl at on or or rele e u p ent an a l tate a ateur ra o pro e ure o n pe t on or te n pe l en e t on tea 55 pe tru u er ere 1 1 5 onta te or t at
an ele 0 re uen a n ent e t er to ple ent t e at onal re uen 20 1 5 lan or e au e t e a n ent ere per or e te n al repa re 1 5 al rate no lon er nee e t e r u er ea ure ent on 20 n tru ent u e n 0 rele e e pe tru ana e ent n tru ent
58 Annual Report 59 2015 on u te te n al n pe t on o 5 rele e e an 2 5 0 pare part
Kuwait wireless ahrain devices 50 2 arr e out 50 2 re uen on tor n atar UA ea ure ent to ete t unaut or e nal 5 au n nter eren e
spare parts 2 5 0 Oman Saudi Arabia
emen 1 52 n e t ate 1 52 nter eren e report t n t e n o an too tep to re ol e an el nate t e 11 1 arr e out 11 1 ea ure ent on allo ate re uen e to er o pl an e t t e on t on o t e r allo at on
55 oor nate 55 re ue t or re uen e or u e ur n t e t 115 on tore 115 ro or er e on au n on tore 0 5 0 5 re uen e n a or an e o ore n n tar e or ore n e el ur n t e r pa a e nter eren e n t e n o an oor nate t t t e ata a e o u er to er proper t rou t e n o terr tor al ater ne or n ountr e to a re t e u a e o t e re uen e
Carried out field surveys of 40 locations to ensure on tore 5 unaut or e e on an 0 a re e 5 t e t t e on erne aut or Re e e an too appropr ate a t on on 1 t at u er o re uen e on or to t e te n al appl at on or re uen oor nat on et een specifications for the licensed frequencies in order t e to a e t e ne e ar ar are t e n o an ot er ountr e to pre ent ar ul nter eren e an 2 0 rele a u t ent an too appropr ate a t on 1 tat on a e een te te
60 Annual Report 61 2015 5.4.2 Spectrum Management System
The existing spectrum management system is almost 22 years old and has become out- dated and does not meet the requirements for administration of the spectrum and modern technologies. CITC has therefore undertaken steps to develop a new system using state-of-the art technology and inter- national best practices for the assignment and management of spectrum, coordina- tion at local, regional and international lev- els, conducting technical monitoring of the spectrum, control of frequency interference and unauthorized transmissions, a field inspection and monitoring system, a type approval laboratory, and spectrum moni- toring stations. Accordingly, CITC prepared the technical specifications for the project which were released for general tender. Since none of the companies submitting bids met the requirements of the project, CITC has undertaken initial steps to develop a new system using state-of-the art technology it was released again for tender in 2015, and international best practices for management and assignment of frequencies, coordination CITC is gathering the bids in preparation for awarding the project and starting imple- at local, regional and international levels, conducting technical monitoring of the spectrum, mentation. control of frequency interference and unauthorized transmissions, a field inspection and monitoring system, a type approval laboratory, and spectrum monitoring stations.
62 Annual Report 63 2015 5.4.3 National Numbering Plan and its Management CITC allocated and reserved available numbering resources equitably among Ser- vice Providers and among government agencies. This also ensures optimal use and activation of allocated numbering resources and, in coordination with other 1 t ou an ll on 1 t ou an ll on CITC sectors, prepare and collect annual fees from the Service Providers. u n l en e or 1 t ou an u n l en e or ll on a ne to a ne u er u n l en e or 1 t ou an u n l en e or ll on With respect to ongoing management of the National Numbering Plan, applications eo rap nu er or er n al ulat on an olle t on o ee a ne to a ne u er for numbers and codes submitted by service providers and other agencies were an populate area an ot er eo rap nu er or er n al ulat on an olle t on o ee or allo at on o nu er n an populate area an ot er studied and actioned. CITC also coordinated with the International Telecommuni- or an at on re our e cation Union concerning wireless network codes. The following are highlights of or allo at on o nu er n or an at on re our e what was accomplished in 2015:
ort o e 22 unified 22 unified ort o e ll on ort o e u n l en e or ll on u l o le a e t e re u re te t to en ure ll on u n l en e or ort o e ort o e Issuing licenses for more than 22 unified ata u er are u e to a l tate opt u u e o ore t an 0 u n l en e or ll on u l o le a e t e re u re te t to en ure are u e operator o ern ent ort o e er e an u n l en e or ort o e an ea e t e roa an penetrat on ll on allo ate nu er Issuing licenses for more than 22 unified ata u er are u e to a l tate opt u u e o ore t an 0 or an at on ort o e are nu er u an tar an an o ern ent are u e operator o ern ent ort o e er e an an ea e t e roa an penetrat on ll on allo ate nu er are ea er to re e er or an at on or an at on ort o e are nu er u an tar an an o ern ent are ea er to re e er or an at on
ll on ll on tu nu er l en e re ue t or ore t an ll on o nu er n lu n o le u er u l o le ata Issue notifications for collecting tu nu er l en e re ue t or ore t an ll on o u er a ne to a ne 2 u er nternat onal annual ar e or allo at on an nu er n lu n o le u er u l o le ata Issue notifications for collecting Free Phone Numbers, National Point Codes, Unified SMS u e o nu er an o e u er a ne to a ne 2 u er nternat onal annual ar e or allo at on an o e an eo rap u er Free Phone Numbers, National Point Codes, Unified SMS u e o nu er an o e o e an eo rap u er
64 Annual Report 65 2015 5.5 Figure (1) shows the provinces that were served among the six Com- Universal Service Fund (USF) pleted USF Projects as follows:
Continuing its efforts to achieve the No. of Targeted Population Clusters objectives of the universal service/ Project 1 (Pilot Project): Project 4: Project 5: universal access policy and imple- ment the strategic plan within the ap- 211 The main goal of this project is to This project covered governorates This project covered 438 localities and proved time frame, the USF prepared provide voice and Internet service (Al-Majma’ah and Ramah) in Riaydh around 165,000 people in one gover- o o opulat on 1 5 2 operating plans containing the main 1 1 1 to all localities that have population administrative region, in addition to norate in Tabouk Province (Tayma) and lu ter n a ro e t 1 2 programs and projects for each op- 1 51 less than 5000 people in Kholis and governorates (Al-Khafji, Hafr Al-Ba- in six governorates in Hail Province erating year. The plans identify the otal un er o Al-Kamel governorates in Makkah tin, Qariyat Al-Oliyah) in Eastern Re- (Alshamli, Asshinan, Baqa, Hail, Mou- opulat on lu ter structures and implementation meth- Al-Mukaramah district and Al-Mahd gion administrative district. The total qeq and Sumaira). ods of the projects, clarify the USF governorate in Al-Madinah Al-Mona- number of localities that covered by program inputs in general, define the warah district where the total number the scope of this project were 261 with scopes of work, and estimate project 5 055 of localities are 483 with population of population of around 94,000 people. Project 6: costs. In this context the USF has end- 5 around 105,000 people. ed the implementation of six projects 50 0 0 1 1 12 This project covered 439 localities and before the end of 2015, and the work 1 2 Project 2: around 120,000 people in all governo- is underway to implement the rest of 2 25 1 01 10 1 rates of Najran Province (AlKharkhir, 1 1 the projects within the approved time 21 5 2 1 Badr Aljanoub, Hubuna, Khabash, Na- frame, as shown in Figure 1. By end This project included eleven governo- ro e t 1 ro e t 2 ro e t ro e t ro e t 5 ro e t ro e t ro e t ro e t ro e t 10 ro e t 11 ro e t 12 ro e t 1 ro e t 1 jran, Sharurah, Thar, Yadmah). of 2015, 15,115 localities have been rates from Northern Borders adminis- served throughout all districts and trative district which are (Arar, Rafhaa, governorates kingdom wide. The fol- Tarif, Al-Uwayqilah), and all governo- lowing two charts show the numbers rates of Al-Jouf district (AlQirayat, Do- mat Al-Jandal, Sikaka and Tabrigl), in of population clusters and the num- Al ou ort ern bers of population targeted by the fund addition to governorates (Al-Dair, Al- Re on projects. Raith, Al-Darb) in Jazan district where the number of localities that covered a ou by the scope of this project were 563 a l localities with population of around No. of Population benefitting from spreading 206,000 people. Universal Service Fund a ee Project 3: a na 1
52 This project covered Al-Qunfudhah 5 o o opulat on or a ro e t 115 and Al-Aradiat governorates in Mak- otal o o opulat on kah Al-Mukaramah administrative region, and governorates (Al-Namas, R a a tern Re on Balqarn, Bishah) in Asir administrative a a 15,115 localities have been region, in addition to all governorate in Al-Baha district (Al-Aqiq, Al-Baha, served throughout all districts 2 1 1255 Al a a Al-Mandaq, Al-Mukhwah, Al-Qura, Bal- and governorates kingdom wide 2 20 gurashi, Qalawa, Bani Hasan, Far’at A eer 1 122 Ghamid Al-Zinad and Al-Hujra). The 105 a ran 250 total number of localities that covered Figure (1) 5 05 5 105 11 25 by the scope of this project were 2,325 a an 1 2 1 2 Completed USF ple ente ro e t 105 20 1 5 120 with population of around 653,000 Projects ro e t 1 ro e t 2 ro e t ro e t ro e t 5 ro e t ro e t ro e t ro e t ro e t 10 ro e t 11 ro e t 12 ro e t 1 ro e t 1 people. ro n e oun ar e
66 Annual Report 67 2015 Among the most prominent activities and achievements of 2015 are the following:
5.5.1 5.5.2
Fourth Operational Plan Fifth Operational Plan Al ou ort ern Re on
The USF prepared and obtained approval of the Fourth Operating Plan, as shown in The USF prepared and obtained ap- a ou (Figure 2) for the year 2013. The scope included two project. proval of the Fifth Operating Plan, as shown in (Figure 3) for the year 2014. a l The scope included three projects. A. Project 7: B. Project 8: a ee
This project covers 1,868 localities and This project covers 1,318 localities a na around 705,000 people in all 13 gover- and around 325,000 people in six gov- norates in Qassim Province (Alasiyah, ernorates in Makkah Province (Alkhur- Albadai, Albukayriyah, Almidhnab, mah, Almouyah, Altaif, Misan, Ranyah,
Annabhaniyah, Arras, Ashimasiyah, and Turbah) The project was signed in a a R a a tern Re on Buraydah, Dheryah, Riyadh Alkhabra, January 2014 and 94% of this project Unaizah, Uyun Aljiwa and Uqlat Also- was completed. qour) and 12 governorates in Riyadh Al a a Province (Addiriyah, Adduwadimi, Afif, A eer Alghat, Alquwayiyah, Arriyadh, Azzu- lfi, Duruma, Huraymila, Marat, Shaqra Figure (3): Fifth a ran and Thadiq). The project was signed in Al ou ort ern Operating Plan a an January 2014 and 94% of this project Re on ro e t was completed. a ou ro n e oun ar e
a l
a ee A. Project 9: B. Project 10: C. Project 11: a na This project covers 1,901 communities This project covers 7,055 communi- The project covers 643 communities and around 345,000 people in seven ties and around 1,255,000 people in and around 142,000 people in six governorates in Madinah Province eight governorates in Aseer Province governorates in Tabouk Province (Al- bedea, Alwajh, Duba, Haqil, Tabouk a a R a a tern Re on (Aleise, Alhinakiyah, Almadinah Al- (Abha, Albark, Almajardah, Bareq, munawwarah, Bader, Khayber, Wadi Muhayil, Rihal Alma, Sarat Abidah, and Umluj) and one governorates in Alferae and Yanbu) and three gover- and Tannoumah) and 14 governorates Almadinah Almunawwarh (Alula). Al a a norates in Hail Province (Alhaet, Alg- in Jazan Province (Abu Arish, Ahad The project was awarded in Decem- Ahmusarihah, Alaridah, Alharth, Ali- ber 2014 and 76% of this project was Figure (2): Fourth hazalah and Alselimee). The project A eer was awarded in December 2014 and dabi, Altewal, Baysh, Damad, Faras- completed. Operating Plan a ran 72% of this project was completed. an, Fifa, Jazan, horoub, Sabya, and Samtah). The project was awarded in a an ple ente ro e t December 2014 and 63% of this pro- ject was completed. ro n e oun ar e
68 Annual Report 69 2015 5.5.3 Sixth Operational Plan
The USF prepared and obtained ap- proval of the Sixth Operational Plan, as Al ou ort ern shown in (Figure 5) for the year 2015. Re on The scope includes three projects. a ou
a l
a na
R a a tern Re on
Al a a 3,900 The total number of targeted Figure (4): Sixth A eer localities for Project 12, 13 and 14 Operating Plan a ran
a an ro e t
ro n e oun ar e
A. Project 12: B. Project 13: C. Project 14:
The project will cover 1,867 commu- The project will cover 421 commu- The project will cover 1,612 communi- nities and around 250,000 people in nities and around 162,000 people in ties and around 387,000 people in five seven governorates in Makkah Almu- nine governorates Eastern Province governorates in Aseer Province (Ahad karamah Province ( Adhum, Aljam- (Baqiq, Alihsa, Aldammam, Aljubail, Rofaida, Dhahran Aljanoub, Khamis Mushait, Tathleeth, Dhareeb) and sev- 799,000 joum, Allayth, Bahrah, Jeddah, Makkah Alkhobar, Alnaeryah, Alqateef, Ras people benefitted from Almukaramah, and Rabigh). This pro- Tanourah, Aladeed). This project al- en governorates in Riyadh Province this program during 2015 ject already prepared and put up doc- ready prepared and put up documents (Wadi Aldawaser, Alaflaj, Alsulayel, uments of competition, bids have been of competition, and bids have been and Hawtet bin Tamim, Muzahmiyah, Ha- and received, analyzed and evaluated, received, analyzed and evaluated, rec- reeq). This project already prepared and recommendations were submit- ommendations were submitted to con- and put up documents of competition, ted to concerned authorities for final cerned authorities for final approval. bids have been and received, analyzed approval . and evaluated, and recommendations were submitted to concerned author- ities for final approval.
70 Annual Report 71 2015 6Studies
72 Annual Report 73 2015 6.Studies
A number of studies were conducted during 2015 including those described in the following sections. e el of onthl xpenditure on Ser ices (Saudi i al)
6.1 6.2 35 Update of the Market Definition, Study of the Telecommunication Designation and Dominance and Information Technology 23 Report for the ICT Sector Market in the Kingdom S 224
The objective of this study is to update The main objective of this study is to its in dealing with these services, and the Market Definition, Designation and present and analyze the data of the the level of their satisfaction with the Dominance report for the ICT sector in survey of communications and in- services in addition to setting a sce- 1 122 light of the sector developments. The formation technology services mar- nario for the orientations of users in intent is to update the markets that ket carried out by the Commission in the use of computers and the Internet are subject to dominance, designate 2015; which is an extension of the sur- and their technologies; and studying the Service Providers that are dom- vey completed in 2014. The commis- the obstacles that prevent the use of inant and determine the regulatory sion has sought through these studies such technologies. Below, there are remedies required to prevent anti- to understand and analyze the current some excerpts from the report: an l ne an l ne an l ne nternet nternet t ata competitive practices. In this regard, state of the market of telecommunica- nternet a nternet o e all ar the following was accomplished dur- tions and information technology ser- ing 2015: vices in the kingdom and it aims also • Completion of inception report to provide analytical reports (quan- and project plan. tity and quality) about the general • Conducting a detailed internation- situation of the telecommunications al benchmark study. and information technology sector in • Completion of discussion paper the kingdom. It will primarily focus report. on Communications and Information Internet Use at Home Technology Market in the kingdom, Work is currently underway on the final The following activities will be con- the investments, subscriber’s uses review of the analytical reports for the ducted in 2016: of technology, the widespread use of year 1436/1437H (2015) with the rec- • Preparation of a draft market defi- computers and the Internet, subscrib- ommendations in Arabic and English to nition, designation and dominance er’s behavior and its level of satisfac- be published during the 2016 year. (MDDD) report. tion with the services and obstacles to • Preparation of public consultation Internet use. documents. 5 • Preparation of Public consultation The study focused on studying the analysis report. services available in the telecommu- 1 • Preparation of final MDDD report nications and information technology and CITC decisions. market, and users' behavior and hab- er e 5 or er pt er e 1
74 Annual Report 75 2015 6.3 Status of ICT in the Kingdom 6.3.1 Report on Investment in the This study aims to discuss the current Telecommunications and Infor situation and future plans, and the mation Technology Sector, 2015: challenges facing the ICT sector in the Kingdom, to motivate stakeholders by Saudi Arabia ranked 19th on the list internationally widespread standards: ele o 2 highlighting the key challenges facing of the largest economies in the world. the standardization of the impact of e e the development of the sector in the Currently, the Kingdom is seeking to di- telecommunications and information Kingdom, stimulating the transition to versify its economic resources, which technology sector on the economy, the the information society, and encour- depends mainly on oil. The report pre- volume of spending of the telecommu- Percentage of aging the adoption of communications sents key insights on investment in the nications and information technology Investments in ICT and information Technology services, telecommunications and information sector, and the total value added to the Sector in 2014 and their applications in the business technology sector, including incen- telecommunications and information environment. The results came in four tives and opportunities. In addition, technology sector. Below are some 2 studies as follows: the report provides estimates of three excerpts from the report: e e
r or t e o e nolo al n t at e o au o pan e n or at on enter u l n er n p at n a a e n or at on e ur t olut on or o le e e o t are
lou o put n e nolo e
o le o un at on Appl at on an t ana e ent e n ue ool o art u ne ool o Report reparat on o t are
er e nterpr e Re our e lann n 2 e e er e o ternal ana e ent or e e Percentages of 5 ele o er e an n or at on enter Expenditure in ICT o al Sector in 2014 Appl at on
u to er Relat on ana e ent Appl at on Unified Platforms for ele o un at on an ar n
76 Annual Report 77 2015 6.3.2 6.3.3 Report on ICT Workforce 2015 Information Centers Service Report 2015 Developing industries contribute to and their distribution among various the creation of new jobs but require economic sectors, and a comparison The Data Centers Services, Managed advanced technical skills, putting between supply and demand for these Services and Cloud Computing Ser- vices (Cloud Services) are among 1 pressure on local labor markets. Most cadres to highlight the most important lou o put n countries including the Kingdom suf- disciplines required in the Saudi mar- the fastest types of IT services as to er e fer from a lack of staff specialized ket through the next three years, and growth in the market. CITC has con- in communications and information ways to develop them. It also includes ducted in 2011 and 2015 two studies technology. This shortage leads to a review of analyzes and results for aiming to analyze trends of services reliance on foreigns workers which more than 400 interviews for enter- market. This report provides an anal- in turn leads to high cost of commu- prises of different segments; to meas- ysis of market trends. It shows the nications and information technology ure the availability of specialized skills most important research results and for both service providers and users. in the labor market in the Kingdom. It set some recommendations aimed at 0 12 The report contained important statis- presented the necessary recommen- promoting the development of this vi- n or at on ana e tical information about the numbers of dations on this subject. Below are tal market. Below, are some excerpts enter er e specialists in the telecommunications some excerpts from the report: from the report: er e and information technology sector 6.3.4 ICT Mobility 2015 pen n 201 It aims to highlight the Kingdom's ef- ll on AR n 201 forts in the development of telecom- 2015 munications and information tech- 00 201 nology sector in this aspect. It also assesses the current status of the 201 development of the local mobile tele- • Interaction and Changing • Content, Applications and Services communications services, the extent Consumption Patterns 2 00 of facilities reliance on mobile tele- Staying in touch with others is one of communication services, and identi- Smart devices have changed the way the most attractive factors for users fies some of the challenges faced in users interact and deal in the kingdom of mobile telecommunications servic- 1 00 the kingdom. The main findings of this with establishments, government in- es. KSA leads other countries in the report can be summarized as follows: stitutions and social relations. Given region in a number of aspects, such as 15 00 the continuing decline in the prices of the services prevalence rates, avail- 1 500 10 00 1 00 smart devices, they will become the abillity of the latest technologies and • Use and Widespread Prevalence basic device used in the kingdom in the use of social media. Smart devic- 00 500 1 00 the next few years. es applications have become common 100 A large growth in broadband subscrip- although the participants of the study, 100 tions for mobile phones during the 00 conducted by CITC in this regard, have 00 5 00 past five years. This sector remains expressed the need for more applica- 5 00 positive due to the spread of mobile tions that offer local and religious con- phones on a large scale, the Format- tent in particular. ting issue on last line (wider space be- tween lines).
u ulat e ap ap uppl e an Complete copies of the above men- tioned reports exist on CITC website.
78 Annual Report 79 2015 Growth7 and Indicators of the ICT Sector in the Kingdom
80 Annual Report 81 2015 7.1 7.2 Mobile Telecommunications Fixed Telephony Market Market Fixed telephone lines reached 3.8 The total number of mobile subscrip- 5 ll on million by the end of 2015, of which tions reached around 53 million by the total nu er o o le u r p around 2 million or 52% were residen- end of 2015, with penetration rate of t on rea e aroun 5 ll on tial lines. This represents a household 167.5%. Prepaid subscriptions consti- t e en o 2015 repa u r pt on teledensity of around 34 %, while the tute the majority (over 84%) of all mo- population teledensity is about 12%. bile subscriptions. The CITC issuance The number of subscriptions has con- of MVNOs licenses helped to improve tinued to decrease due to competition services and customer care as well as from mobile services, with prices and the variety of provided services. variety of offerings which allow sub- stitution of fixed services by some ll on 12 consumers. e telep one l ne rea e ou e ol tele en t t e populat on tele en t 1 5 ll on t e en o 2015 o aroun a out 12 penetrat on rate o o le u r pt on
Mobile Service Market Growth-Total Mobile Service Market Grootal Subscriptions Subscriptions
5
0 1 1 1 1 1 1 5 1 2 1 1 1 15 1 1 0 55 5 0 5 50 1 0 1 1 0 0 1 01 5 5 5 5 51 52 0 1 2 5 5 2
0 2 0 25 1 20 15 0 1 2 1 15 11 11 elep one ne ll on 5 1 5 5 15 u r pt on ll on 0 10 2010 2011 2012 201 201 2015 5 0 2010 2011 2012 201 201 2015 opulat on ele en t ou e ol ele en t u ne ne Re ent al ne
Note: Population teledensity is calculated by dividing total fixed telephone lines by the population, while household po t pa u r pt on pre pa u r pt on total u r pt on o le penetrat on teledensity is calculated by dividing residential lines by the number of households.
82 Annual Report 83 2015 7.3 7.3.2 Broadband Market Mobile Broadband Services Market
The total number of mobile broadband Total Mobile Broadband Subscriptions subscriptions continues to increase, and reached around 33.4 million by 0 120 the end 2015, representing a popula- 5 105 tion penetration rate of 106%. The mo- 5 100 bile broadband market also continues 0 to gain momentum in the Kingdom. 0 5 The key reasons for this growth in- 25 2 1 20 1 ll on u r pt on clude strong competition, the healthy 20 0 e roa an u r pt on expansion in the use of smart phones, 1 15 2 1
a e ro n to aroun 5 ll on and the offering of various data pack- enetrat on 0 u r pt on at t e en 2015 ages by mobile operators suitable for 10 1 u r pt on ll on different user segments. These have 11 12 20 led to a dramatic rise in the number of 5 0 0 users in recent years, and an increase 2 22 5 1 1 20 0 2 0 in the data traffic over these devices, supported by the wide coverage of the 2010 2011 2012 201 201 2015 e e roa an penetrat on rate 3G and 4G networks. tan at a out o ou e ol tan ar o le u r pt on e ate o le ata u r pt on o le ele o populat on otal o le roa an u r pt on
Fixed Broadband Services Market Growth
0 0 7.3.1 5 Fixed Broadband Services Market 5 5 5 0 50 0 0 Fixed broadband subscriptions in- 2 2 0 2 5 2 cluding DSL, fixed wireless (WiMax), 2 2 5 0 ll on u r pt on FTTx and other fixed lines have grown 2 0 1 5 2 0 0 1 5 1 2 e total nu er o o le to around 3.56 million subscriptions 1 roa an u r pt on rea e at the end 2015. The Fixed broad- 1 5 aroun ll on t e en 2015 band penetration rate stands at about 1 1 5 1 1 5 20 49.67% of households. 1 0 enetrat on
u r pt on ll on 1 1 5 10 0 5
0 2 0 0 5 0 0 0 2010 2011 2012 201 201 2015
A u r pt on e rele u r pt on t 10 populat on penetrat on rate o 10 otal e roa an u r pt on ea e ne
ou e ol enetrat on
84 Annual Report 85 2015 7.4 7.5 Internet Services Telecom Services Sector Revenues The number of Internet users in the packages resulting in heavy data traf- Kingdom continues to rise rapidly, fic on both mobile and fixed networks. reaching about 21.6 million at the It is expected that the demand for end of 2015, with a population pene- Internet services will continue to in- tration of 68.5%. Increased demand crease significantly over the next few 2015 for Internet services and broadband years as a result of the availability R was observed due to high use of so- of high speed fiber-optic networks Internet users population 201 cial networking applications, video (FTTx), increased Internet content, and penetration rise from 41% on demand and gaming. Customers the continued spread of broadband in 2010 to are seeking higher speeds and larger services.
5 5 R 2 25 68.5% o le re enue repre ent n rea e o a out 5 ele o er e re enue fixed and data services 5 o total tele o e tor o er 201 ro operat on n au a ount n or t e International Internet Bandwidth re enue Ara a rea e a out AR re a n n 25 2 ll on n 2015
5 20 Telecom Services Sector Revenues 100 1 55 1 5 1 Telecom services revenues from oper- 0 1 ations in Saudi Arabia reached about 0 SAR 72.4 billion in 2015. This repre- 2 0 5 5 1 0 1 1 1 sents an increase of about 5.8% over 1 0 1 0 2014. Mobile revenues represent 75% 12 1 of total telecom sector revenues, with 0 fixed and data services accounting for 52 50 10 the remaining 25%. 50 21.6 20 Million 0 11 1 1 15 1 5 1 21 5 5 5 51 5 0
The number of 20 Internet users in the 2 Kingdom reached 10 about 21.6 million 12 0 1 1 15 15 1 1 1 1 0 1 10 0 0 at the end of 2015 2010 2011 2012 201 201 2015 200 200 2010 2011 2012 201 201 2015
n n o Re enue nl rele e an ata nternet enetrat on nternet er ll on
86 Annual Report 87 2015 7.6 p International Internet Bandwidth 1 International Internet Bandwidth 1 00
The total capacity for internation- 1 00 7.8 ICT Contribution to the National Economy al Internet connectivity in 2015 was 1 21 about 1484 (Gbits/s) compared to 318 1200 Gbits/s in 2010. The ICT sector plays an important role in the national 1000 economy, and can be measured to some extent through its 1 2 effect on several indicators, including: contribution to the 00 gross domestic product (GDP) of the economy, investment 00 in Communications and Information Technology, and the 55 0 volume of spending on ICT services 00 1 Because of the fundamental foundational role of the ICT 7.7 200 sector in driving the transition to a knowledge-based Domain Names Registered in economy, the kingdom has sought to support this sector by the Kingdom 0 formulating strategies, implementing initiatives and pro- 2010 2011 2012 201 201 2015 The cumulative number of domain grams. These aimed to increase the level of access to ICT, names registered in the Kingdom enhance income levels in the sector, adding value and at- reached 42,098 by the end of 2015 tract more investment, and create more job opportunities. compared to 2,817 in 2000 and it can a be seen that the number of domain e u ulat e nu er o names is continuing to grow. o a n na e re tere n t e n o rea e 2 0 t e en o 2015 20
.com.sa Number of Domain Names
5 000 2 0 0 000 5 5 000 50 2 1 0 000 2 25 average 25 000 9% 21 5 20 000 annual growth 1 21 15 000 15 0 5 12 5 The average annual growth reached of 9% 10 000 10 22 5 during the past five years 5 15 5 000 2 1 1 )2011-2015( 0 1 21 1 5 1 1 1 1 2000 2001 2002 200 200 2005 200 200 200 200 2010 2011 2012 201 201 2015
88 Annual Report 89 2015 7.8.1 7.8.2 Contribution to the National GDP Spending on ICT Services:
According to CITC estimates, the contribution of the ICT sec- Based on its recent studies, CITC es- Networks, in 4G mobile networks, and tor represents around 6% of total GDP. If, however, the oil and timates that spending on ICT services from the adoption of electronic ser- 120 mining sector components of the GDP are excluded, it is esti- increased to SAR 120 billion in 2015, vices (e-government, e-health, e-ed- mated that the ICT contribution to the national GDP is as great with a growth rate of about 7% com- ucation, e-commerce, etc.) as well as ll on as 10% for year-end 2015. the10% contribution of the ICT pared to 2014. The telecommunica- increased spending on information se- t e pen n on er e n rea e to AR sector represents around tions sector accounts for the lion's curity. It is expected that the telecom- 120 ll on n 2015 t a ro t rate o a out o pare to 201 10% of total GDP (non oil) share of spending, around 64%, while munications and information technol- the proportion of spending on IT ser- ogy market will continue to grow on a vices is about 36%. This scale of ex- regular basis. penditure is due to the investment in infrastructure for the Next Generation R ! e tele o un at on e tor a ount or t e l on are o pen n aroun le t e proport on o pen n on er e a out
Growth of Expenditure on ICT services
the contribution6% of the ICT 1 0 100 sector represents around 120 0 120 111 6% of total GDP 102 5 0 100 0 2 5 0 5 0 0 0 1 5 2 50 0 2 0 2 51 1 52 5 5 0 0 1 5 2 1 2 20 20 2 25 21 22 5 2 10 1 21 1 0 10 1 1 0 2005 200 200 200 200 2010 2011 2012 201 201 2015
ele o otal pen n Annual ro t
90 Annual Report 91 2015 Appendices8
92 Annual Report 93 2015 Appen A Decisions of the Board of Directors The Board held five meetings in 2015. The major decisions taken during the year include: R 1 Approval of assigning the number Appro al o t e u et (981) to The Two Holy Mosques for the 2016 fiscal year. 1955 Operations Unit. Approval of assigning the number (1955) to The General Administration For Drug Appro al o t e u et Approval of the USF financial ontrol for the 2016 fiscal year. statements for the 2014 fiscal ear
Appro al o t e u et o Appro al o t e an t e at onal o ttee or NCIS financial statements t e n or at on o et for the 2014 fiscal year. (NCIS) for the 2016 fiscal 11 ear Approval of the modifications on Approval of assigning the number (911) to The te no o t e ele o un Central Security Operations Unit. cations Act.
Appro al o t e a en ent to the Amateur Radio Licensing Service Bylaws.
15 Approval of Consumer Protection document, and Approval to Regulate Wholesale Prices of National Voice Call Approval of assigning the number (938) to The to be effective in 90 days from the approval day. Termination on Fixed and Mobile Networks and reduce the prices Center of Emergency of the Ministry of to be capped to 15 Halalas for mobile and 7 Halalas for fixed Transport services.
94 Annual Report 95 2015 Re e n t e reports of the obsta- cles that prevent CITC Appro al o t e a t on to t e urrent or an at on from collecting its structure by the creation of the General Department of e eneral epart revenues. Information Security, the Department of ICT Services ent o n or at on Quality, and the Department of Total Quality Management e ur t
epart ent o er e ual t
epart ent o otal ual t ana e ent
Reviewing the reports of (Tahfeez) issued Appointments to the reat on o t e Au t n Telecom Act Violations Committee, and to be o ttee linked directly to the board of directors.
A ou ort ern Re on Reviewing the reports of the Kingdom participations in the ITU exhibition which Tabouk was held in Budapest, Hungary
Hail Approval to publish the public consultation of the License of Broadband Satellite Services.
a na
R a Eastern Region The approval to award projects no. 12, 13, and 14 in the sixth operational plan of the Universal e Appro al o annual report or Al Baha er e un t e ear 201 Aseer
a ran
a an
96 Annual Report 97 2015 Appendix B: CITC Websites Main CITC website
www.citc.gov.sa Saudi Network Information Center
www.nic.net.sa
at onal enter or n or at on e ur t R A www.cert.gov.sa
at onal o ttee or n or at on o et
Saudi Internet service portal www.ncis.org.sa www.internet.gov.sa
98 Annual Report 99 2015 Appen Code of Ethics and Professional Conduct Re ra n ro an a t on t at t lea to preferential treatment of persons or entities involved with CITC or might ne at el pa t t e reputat on o
Avoid establishing personal working relationships with people, establishments or companies whose self-inter- est is linked to CITC decisions, and refrain from offering advice or revealing information which is not pu l l a a la le an t pro e un a r Respect the rights of all stakeholders a anta e to an part o ntera t t an eal t them courteously, fairly and impartially.
Not reveal confidential information obtained during the exercise of their duties, whether Refrain from any actions, dealings or work verbally, in writing or electronically. activities which are considered improper or are seen as inconsistent with moral and onora le on u t
Not, either directly or indirectly, exploit or utilize information, which is obtained during the course of employment at CITC and which is Not accept or request any gifts, not publicly available, for personal gain or for compensation, invitations or other the benefit or harm of others. benefits of any kind from parties who have a direct or indirect business Not get involved in any business or undertake any relationship with CITC. independent work activities of a similar nature to that of CITC. To be involved in any other business activity which is not of a similar nature to that of CITC, prior approval must be obtained from the Governor. ot re tl or n re tl e plo t their position at CITC for personal advantage or profit or for the benefit of a relative or friend.
Refrain from any activity that can lead to conflict of interest, real or perceived, between their own personal interests on the one hand and their professional responsibilities on the other. In the case where such conflict exists or may exist, or if they are subjected to conflicting external pressures, or if in doubt of the proper course of action, refer the issue, in confidence, directly and in writing to their immediate supervisor.
100 Annual Report 101 2015 Appen CITC Financial Accounts
0 e 201 30 Dec 2015 0 e 201 30 Dec 2015 au te not au te au te not au te Revenues AR 000 AR 000 Expenditures AR 000 AR 000
Commercial Services Employee Costs Provisioning Fees 4,538,748 3,248,434 220,344 254,438
eneral an Admin Expenditures 86,401 69,320 License Fees 355,873 321,666 Consulting 26,965 18,627 Spectrum Usage Fees 3,553,940 1,479,412 IT Systems and Software 3,221 2,681 Other Revenues 378,603 70,557 Capital Expenditures 14,328 12,929
Total Revenues 8,827,164 5,120,069 Total Expenditures 351,259 357,995
102 Annual Report 103 2015 Appen CITC Financial Accounts
NET REVENUES
0 e 201 au te AR 000 8,475,905 Eight billion, four hundred and seventy five million, nine hundred and five thousand
30 Dec 2015 not au te AR 000 4,762,074 Four billion, seven hundred and sixty two million, seventy four thousand
Note: CITC bills for and collects revenues, and turns them over to the Public Treasury.
104 Annual Report 2015 www.citc.gov.sa
106 Annual Report 107 2015 Annual Report
www.citc.gov.sa 1436 - 1437 2015
108 Annual Report 2015