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ANNUAL REPORT ANNUAL 2009 annual report CITC 2009 www.citc.gov.sa His Royal Highness His Royal Highness Custodian of the Two Holy Mosques Naif Bin Abdulaziz Al Saud Crown Prince Sultan Bin Abdulaziz Al Saud King Abdullah Bin Abdulaziz Al Saud Second Deputy Prime Minister & The Deputy Premier & The Minister of Defence & Minister of Interior Aviation & Inspector General A model of the CITC's new building in Riyadh which is expected to be completed in 2012 THE CITC BOARD OF DIRECTORS 8 APPENDICES CHAIRMAN'S STATEMENT 10 GOVERNOR'S STATEMENT 11 Appendix A: Board of Directors Resolutions 58 VISION AND MISSION 12 Appendix B: CITC Decisions 59 Appendix C: Public Consultations 61 1 EXECUTIVE SUMMARY 16 Appendix D: Other Activities 62 2 THE ICT SECTOR IN THE KINGDOM OF SAUDI ARABIA 20 Appendix E: Events and Meetings 64 3 ORGANIZATIONAL STRUCTURE AND MANPOWER 32 Appendix F: Licenses Issued 67 4 KEY ACTIVITIES AND ACHIEVEMENTS 36 Appendix G: CITC Websites 75 5 STUDIES UNDERTAKEN BY CITC 50 Appendix H: Code of Ethics and Professional Conduct 76 6 WORK PROGRAM FOR 2010 54 Appendix I: CITC Financial Accounts 77 CITC BOARD CHAIRMAN’S STATEMENT GOVERNOR’S STATEMENT VISION AND MISSION CITC Board H.E. Eng. Mohammed Jamil Mulla H.E. Dr. Abdulrahman A. Al-Jafary Dr. Abdullah A. Al-Rasheed Mr. Ali S. Al-Hedaithi Minister of Communications and Governor of CITC King Abdulaziz City for Science and Ministry of Finance Information Technology Deputy Chairman Technology Chairman Mr. Ahmed H. Bedaiwi Mr. abdullazez hussein al hussein Dr. Assad S. Abdo Dr. Jameel Abdullah Al Jishi Mr. Saleh Eid Al Husseini Ministry of Trade and Industry Ministry of Communications and Private Sector Private Sector Private Sector Information Technology 8 Meeting of the Board of Directors chaired by His Excellency the Minister of Communications and Information Technology (Chairman of the Board) 9 CHAIRMAN’S STATEMENT Developments in the global information and communications technology (ICT) industry are continuing to accelerate, bringing about a great variety of new services. Greater availability and adoption of ICT services, better quality and more secure uses are increasingly prevalent. Service providers are adapting their strategies and reordering their priorities to satisfy new requirements of customers, be they individuals or organizations. As the world rapidly evolves, access to a modern ICT infrastructure supported by strong regulation is integral to reducing geographic and cultural barriers and furthering knowledge which helps to bridge gaps between cultures, economies and societies in general. Saudi Arabia has not been insulated from these global trends. The state of its ICT sector is now among the most advanced. The evolution of a competitive environment has resulted in greater investment, more service providers, a variety of innovative services, improved quality, lower costs and greater accessibility, all of which have had a positive impact on employment and the national economy. Over the last few year, the Communications and Information Technology Commission (CITC) has played a leading role in liberalizing the ICT sector in the Kingdom, opening it to competition, regulating the telecom services market and promoting IT adoption, developing regulations and procedures, promoting competition, providing consumer protection, overseeing network infrastructure, development, and ensuring fair competition and availability of reliable services. In the coming year, we hope, to continue our efforts, and to accomplish even more to encourage rapid development of the ICT sector, including in particular extending universal access and universal service/access in remote areas that are currently underserved and not commercially feasible to serve. This will not be possible without the continuing great support extended to the ICT sector by the Government of the Custodian of the Two Holy Mosques. Universal Service Policy aims at providing voice, Internet and broadband services in all parts of the Kingdom, thereby enabling the development of an advanced knowledge society, capable of contributing creatively at the national and global levels. On behalf of the Board of Directors, I am pleased to present the CITC Annual Report for the fiscal year 1430/1431H (2009 AD). This report describes the activities and achievements of the Commission during the year. I take this opportunity to thank the members of the Board of Directors, HE the Governor, and all the employees of the Commission for their efforts in striving to meet the CITC objectives. Further, I also ask God, the Almighty, to protect our dear country, and help us all to do our work with honesty and sincerity, so as to continue to excel and work towards achieving expectations. Eng. Mohammed Jamil A. Mulla Chairman of the Board 10 GOVERNOR'S STATEMENT The communications and information technology sector has witnessed significant developments in the past few years, in terms of service availability, consumer choices, quality of service, and reduced prices. These positive developments are the direct result of sector reforms and market liberalization led by CITC as telecom regulator and IT promoter. To foster development of the ICT sector, the Commission has worked towards creating a positive, transparent and fair regulatory environment. Since its establishment in 2001, the Commission has been working to implement Government policies for ICT sector liberalization, which in turn is helping to promote economic development and social welfare and to raise the standard of living in the Kingdom. The Commission maintains its firm commitment to its established principles of fairness, transparency, consultation, and a balanced approach in order to safeguard the public interest and the interests of all stakeholders, including consumers, service providers, and investors. This report reviews the major CITC activities and achievements during fiscal year 2009, divided into five main streams i.e., promoting competition and sector development, consumer protection, management of scarce resources, regulatory environment and transparency, and universal service. In promoting competition and developing the ICT sector, CITC has issued a second license to provide fixed telecommunications services to Atheeb Company which launched its services commercially in the first half of 2009. Furthermore, the Commission continued with its ongoing activities in sector regulation. internet services supervision, and domain names registration. In the area of consumer protection, CITC continued to regulate tariffs, monitor the quality of service, handle consumers’ complaints, address violations of the Telecom Act, provide IT security and Internet filtering services, and supervise the provision of telecom services to pilgrims. In addition, the Commission has issued the regulatory framework for emergencies and disaster recovery, as well as the national guidelines for human exposure to electromagnetic fields. With regards to scarce resources, CITC continued its tasks of spectrum management, National Frequency Plan implementation National Numbering Plan management, and regulatory and technical framework development for network rollout, rights of way, and facility sharing. With respect to transparency and the regulatory environment, CITC continued to amend and update its regulatory frameworks, to conduct public consultations, to publish its regulatory decisions and market indicators, to communicate openly with media, and to interact proactively with the public. Finally, the Universal Service Fund published its strategic plan, and launched its first pilot project by initiating a competitive selection process for a contract to be awarded and implemented in 2010. In conclusion, I would like to pay tribute to the continued support of the Government of the Custodian of the Two Holy Mosques. I also wish to thank His Excellency, the Chairman of the Board, the Board members, all CITC staff, and all who contributed to the success of the Commission by sharing their views and suggestions to help CITC in it's pursuit towards meeting its mission and objectives. Dr. Abdulrahman A. Al-Jafary CITC Governor 11 VISION AND MISSION Vision Universally available, high quality and affordable communications and information technology services 12 Mission • Provide a fair, clear and transparent regulatory environment to promote competition, safeguard public interest and stakeholder rights • Enable universal availability of advanced ICT services and optimize utilization of scarce resources • Increase ICT awareness and usage to enhance national efficiency and productivity • Build a professional and motivated CITC team. The CITC's headquarter building on King Fahad Road in Riyadh 13 EXECUTIVE SUMMARY 1. EXECUTIVE SUMMARY This report highlights CITC’s major activities and achievements during Fiscal Year • Developing an automated system for monitoring the quality of internet 2009. It reviews the evolution of the ICT sector and the regulatory environment, services. the Board members, the CITC’s vision and mission, and the organization, structure, • Filtering of internet services. and manpower. • Preparing draft anti-SPAM guidelines. • Providing information security services. The Report also covers the key activities and accomplishments during the reporting • Issuing the “Regulatory Framework for Disaster Recovery Planning for the period, divided into five main streams as follows: ICT Industry in Saudi Arabia”. • Revising the technical specifications for ICT equipment. Promotion of competition and sector development:

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