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Saudi Arabia - Market Intelligence Report
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Market Intelligence Reports provide an invaluable mix of vital market data and background information, including telecoms regulation. Saudi Arabia's telecommunications market is regulated by the Communications and Information Technology Commission (CITC), an entity that was established in June 2001 as the Saudi Communications Commission (SCC) to assume the regulatory responsibilities of the Ministry of Communications and Information Technology (MCIT), to which it reports. The MCIT continues to have a key role in the regulation of the market, and is responsible for setting general policies, plans, and development programmes for the telecommunications sector, as well as having ultimate authority over the licensing of new players in the market. The MCIT's predecessor - the Ministry of Posts, Telegraphs, and Telephones (MoPTT) - developed the Telecommunications Act, which was put into effect on December 26, 2001. The act provides for the licensing of alternative fixed-line, mobile, and value-added service providers that will compete with incumbent state-owned carrier, Saudi Telecommunications Company (STC), which completed an initial public offering (IPO) of shares to domestic entities early in 2003. A second mobile operator - Mobily - was licensed in 2004 and began operating in May 2005; a third operator should be licensed in 2007. Elsewhere, competition is currently restricted to the public data communications, VSAT, and Internet services markets. A second fixed-line operator should be licensed by 2008.
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