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Annual Report 1426H / 1427H 2006

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Annual Report 1426H / 1427H 2006 HARVESTING REWARDS DEEPER ROOTS... ANNUAL REPORT 2006 Custodian of the Two Holy Mosques King Abdullah Bin Abdulaziz Al Saud His Royal Highness Crown Prince Sultan Bin Abdulaziz Al Saud The Deputy Premier & The Minister of Defence & Aviation & Inspector General 2 Table of Contents Chairman’s Statement ................................................................................................................................................................................................................................................................5 Governor’s Statement ...............................................................................................................................................................................................................................................................7 CITC Board .................................................................................................................................................................................................................................................................................. 9 Vision and Mission ....................................................................................................................................................................................................................................................................10 1. Executive Summary .............................................................................................................................................................................................................................................................11 2. ICT Sector in the Kingdom of Saudi Arabia ..................................................................................................................................................................................................................13 3. Organizational Structure and Manpower ......................................................................................................................................................................................................................19 4. Facilities and Automation .................................................................................................................................................................................................................................................21 5. Major Achievements in year 2006 ...................................................................................................................................................................................................................................23 6. Studies undertaken by the CITC ....................................................................................................................................................................................................................................31 7. Strategic Plan and 2007 Key Activities ..........................................................................................................................................................................................................................35 Appendices ..................................................................................................................................................................................................................................................................................36 Appendix (A): Benchmarking ...................................................................................................................................................................................................................................................38 Appendix (B): Board of Directors Decisions ....................................................................................................................................................................................................................48 Appendix (C): CITC Decisions ...............................................................................................................................................................................................................................................49 Appendix (D): Public Consultations .......................................................................................................................................................................................................................................50 Appendix (E): Tariff Reductions on Some Services ............................................................................................................................................................................................................51 Appendix (F): Licenses Issued ................................................................................................................................................................................................................................................54 Appendix (G): Spectrum Activities ......................................................................................................................................................................................................................................57 Appendix (H): Local, Regional and International Meetings ...............................................................................................................................................................................................58 Appendix (I): CITC Financial Accounts ................................................................................................................................................................................................................................60 3 4 Chairman's Statement It is my pleasure to introduce the “2006 Annual Report of the stimulate spread and usage of the internet. As a result, ICT Communications and Information Technology Commission services have been improving in terms of scope, quality and (CITC)”. lower prices to the consumers, as this Report clearly shows. The Government of Saudi Arabia is firmly committed to its In conclusion, I would like to recognize the leadership and announced plans of telecom sector liberalization in line with strong support extended by the Custodian of the Two Holy its strategic economic reforms and structural changes in all Mosques and the Government to the CITC, and the ICT economic sectors. The Government is also continuing its sector at large. I would also like to extend my appreciation to policies to promote the development and use of information the Board, the Governor, and the CITC staff for their efforts and communication technology (ICT) in transforming Saudi and accomplishments. A lot has been achieved so far and even Arabia into an information and knowledge society. more needs to be done in the coming years. I am confident that The ICT sector in Saudi Arabia is fast growing. In addition to the CITC will continue to work hard to meet and exceed the its growing contribution to the gross domestic product (GDP), challenges of 2007 and beyond. widespread use of ICT services and applications will also lead to significantimprovementsinproductivityandcompetitivenessof the Kingdom’s other economic sectors. Mohammed Jamil A. Mulla The Government has implemented a multi-stage plan for Chairman of the Board restructuring the ICT sector with the objectives of encouraging effectivecompetition,attractinglocalandforeigninvestment,as well as protecting public interest and consumer and stakeholder rights. The state-run telecommunications organization was incorporated in 1989 as the Saudi Telecom Company (STC) and was partially privatized in 2003. The CITC was established in 2001 as the Regulatory Authority with legal standing and financial and administrative independence. The “Telecommunications Act”, the “Bylaw” and the Ordinance were also issued. The CITC has taken a number of steps to liberalize the market, and create a positive regulatory framework to encourage investment and promote growth of the ICT market. Competition was introduced in the mobile, data and VSAT telecom areas. A number of initiatives and policies have been developed to 5 6 Governor's Statement On behalf of all CITC employees, it gives me pleasure to development of regulatory frameworks and marketing activities present the “Annual Report”. The Report highlights the major on regional and international levels were completed. These accomplishments of the CITC for the Year 2006. activities will assist in granting a third mobile license and awarding As the regulator, the CITC is mandated with liberalizing the ICT fixed licenses in 2007. The CITC continued in 2006 to address sector, and promoting effective competition, in order to enable consumer complaints, resolve carrier disputes, regulate tariffs, the provision of advanced ICT services, throughout the country, and review/approve STC’s revised Reference Interconnection at affordable prices with high quality. Offer. A number of ICT studies were also carried out. In 2006, the CITC continued its implementation of the five- The CITC is fully committed to its established principles year “Strategic Plan” started in 2005, and carried on with its and practice of fairness, objectivity, transparency, and non- effortstowardsenhancingcompetition,grantingmorelicenses, discrimination. developing policies, frameworks
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