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Annual Report 1436H / 1437H 2015

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Annual Report 1436H / 1437H 2015 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 ole roaan penetraton rate o te 34oueol populaton teledensity of fixed ontruton o te teleounaton 6etor n te ere penetraton rate o ole teleou Fixe roaan naton ere 15 penetraton rate o at te leel o te 2015 oueol populaton 5 50 en o 2015 nternet penetraton rate o te populaton 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 15115 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.
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