2013Annual Report |

In the Name of AllahThe Most Gracious,The Most Merciful

Custodian of the Two Holy Mosques

King Abdullah Bin Abdulaziz Al Saud

His Royal Highness

Salman Bin Abdulaziz Al SaudCrown Prince & Deputy Prime Minister

Minister of Defense

His Royal Highness

Meqran Bin Abdulaziz Al SaudSecond Deputy Prime Minister

Table of Contents

TITLE PAGE

CHAIRMAN’S STATEMENT 12

GOVERNOR’S STATEMENT 14

1. EXECUTIVE SUMMARY 17

2. REGULATORY FRAMEWORK 20

3. CITC ROLES AND RESPONSIBILITIES 21

4. VISION AND MISSION 23

5. CURRENT SITUATION 24

6. MAIN ACTIVITIES AND ACHIEVEMENTS 28

6.1PromotionofCompetitionandSectorDevelopment 28

6.2ConsumerProtection 34

6.3 Management of Scarce Resources 40

6.4RegulatoryEnvironmentandTransparency 42

6.5OtherAchievements 42

TITLE PAGE

7. UNIVERSAL SERVICE FUND (USF) 43

8. STUDIES 56

9. ACCOMPLISHMENTS COMPARED TO THE NINTH DEVELOPMENT PLAN

59

10. GROWTH AND INDICATORS OF THE ICT SECTOR IN THE KINGDOM

66

11. WORK PROGRAM FOR 2014 74

APPENDICES 76

Appendix A: Decisions of the Board of Directors 76

AppendixB:OtherActivitiesandAchievements 77

AppendixC:ParticipationinMeetingsandConferences 82

Appendix D: Licenses Issued 86

Appendix E: CITC Websites 93

Appendix F: Code of Ethics and Professional Conduct 94

Appendix G: CITC Financial Accounts 95

CITC Board of Directors

The CITC Board of Directors

H.E. Eng.Mohammed J. Mulla

Minister of Communicationsand Information Technology (MCIT)

Chairman

Mr. Fahad A. Al-Dakkan Ministry of Finance 

Member

H.E. Eng.Abdullah A. Al Darrab

CITC Governor Deputy Chairman

Dr.Mohammed A. Suwailem

KACSTMember

Mr.Majed A. Al Bawardi

Ministry of Trade and IndustryMember

Dr.Asaad S. AbdoPrivate Sector

Member

Mr.Saud A. AlShammari

Private Sector Member

Mr.Saleh E. Al-Hosaini

Private Sector Member

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Chairman’s StatementThe pace of growth of information and

communications  technology  (ICT) services, technologies and applications, and their rollout to all parts of the Kingdom, has been accelerating. ICT growth has positively impacted business growth and the prosperity of individuals, institutions,  and  society  as  a  whole.  Changes have included the development of appropriate regulatory  policies  and  legislation,  the  creation of new markets, and the introduction of new advanced services to meet the needs of all users. The ICT sector is vital because of its impact on the growth of all other sectors of  the economy and on the progress of nations and their people.

In spite of the considerable technical and administrative progress and the improvement in  services  already  achieved,  the  coming  years will see rapid developments that will promote significant and meaningful investments in this sector. Among the highlights will be increased

competition in providing 4G services, cloud computing services, managed services, and domestic data centers displacing the use of foreign data centers. These new and improved services will benefit the ICT sector in general and will also create new sources of employment, increase  the  profitability  of  small  and medium ICT businesses, attract more domestic and foreign investment, and make the Kingdom more competitive  internationally.  CITC  is  effectively undertaking a major role in accomplishing this evolution.

Efforts to develop the ICT sector have resulted in major changes and technical advances at all levels. However, the next phases will require even greater efforts to foster competition in the  ICT  sector,  build  a  highly  qualified  national ICT workforce, continue to ensure the provision of  high-quality  and  affordable  ICT  services, ensure the continuity of ICT services in disasters 

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and emergencies, and promote an integrated information security system. Implementation of these objectives depends on  an  appropriate  legislative  and  regulatory  environment, enforcement of fair and just laws without any loss of rights, and deployment of modern advanced services. CITC will continue its efforts towards developing the ICT sector, realizing these objectives, and contributing to national achievements and making Saudi Arabia a leader at the regional and international levels.

The ICT sector has received particular attention and support from the Government of the Kingdom, under the leadership of the Custodian of the Two Holy Mosques and His Highness the Crown Prince – may God protect them –  including clear objectives and strategies. The intent has been to maximize the potential of the sector to benefit the citizens of this country and improve their livelihoods; enhance the effectiveness and performance of government agencies and businesses in contributing to the development and diversification of the national economy; create an investment environment based on clarity, transparency and non-discrimination and promote private sector investment in ICT to contribute to GDP growth;

and adopt policies aimed at furthering the use of electronic transactions in a number of fields.

As a result of efforts to develop the ICT sector, Saudi Arabia has been ranked 20th among 148 countries in the global competitiveness index issued by the World Economic Forum and fourth in overall economic climate. The Kingdom still ranks first in the Arab Advisors Group 2013 index for cellular market competitiveness in Arab countries. Saudi Arabia advanced to 41st in the 2012 United Nations report on e-government, compared to 58th in 2010.

I am pleased, on behalf of the Board of Directors, to introduce the 2013 Annual Report which reviews the major activities and accomplishments of CITC during the year.  I wish to take this  opportunity  to  thank  H.E.  the  Governor  of  CITC,  the Members of the Board, and all CITC staff for their superb efforts  in  achieving  their  objectives. May God  preserve  our beloved country and continue to bless us and guide us in all our endeavors.

Eng. Mohamed Jamil A. MullaChairman of the Board

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Governor’s StatementThe ICT sector has a direct impact on the sustainable development of all scientific,

economic,  cultural  and  social  areas  and  on  stimulating  productivity  and improvement in all sectors. CITC continued to carry out its responsibilities during 2013 to foster growth and competition in the ICT sector; protect the interests of users, including improved processes to address their complaints; manage limited spectrum and numbering resources efficiently and  in accordance with  international best practices; and create an effective regulatory environment that balances the  interests of service providers, users and government. Changing market forces have reinforced our determination to improve the quality and variety of services provided in this sector.

The ICT sector has received sustained support from the Custodian of the Two Holy Mosques and His Highness the Crown Prince – may God protect them – which has had a profound effect on improving the sector and contributing to the transition to an information society with the capacity to create partnerships and share knowledge at the national and international levels.

Among its many achievements in 2013, CITC began the process of granting new licenses to mobile virtual network operators  (MVNOs). This  is expected  to  improve the  level of competition in the mobile market and increase options for users. CITC also began the process for licensing broadband satellite services in order to expand the reach of broadband which has become so important for the electronic applications, such as e-government services, needed by individuals and businesses.

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2013 also saw  implementation of the revised National Numbering Plan approved by the Board. The most important feature of the Plan was to modify the geographic zone codes to vacate the leading digits 02, 03, 04, 06 and 07. This has made over 500 million new numbers available for new services.

With  respect  to  the  development  of  Internet  services,  CITC  has  played  a  leading  role  in  the  deployment of the IPv6 addressing protocol in the Kingdom as part of its strategic program and through leadership of the National  IPv6 Task Force. The experience of the Kingdom in pilot programs has received  international recognition.

Regarding  protection  of  users,  CITC  has  developed  a  centralized  system  on  its  website,  in  both  Arabic and English, to allow users to register complaints against service providers. Data can be accessed on the performance of service providers in dealing with customer complaints registered on the system.

Voice and broadband Internet services have been provided to over 3,600 communities in remote areas which are  commercially  unprofitable.  Four  additional  projects  are  currently  underway  covering  another  3,846 communities.

Many other projects and programs aimed at developing the ICT sector are described in this Annual Report. I wish to take this opportunity to thank H.E. the Chairman of the Board and Minister of Communications and Information Technology, the Members of the Board, and all CITC staff  for their hard work and dedication. Thanks, also, to all those who contributed to the success of the Commission.

Eng. Abdullah Abdulaziz Al DarrabGovernor

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1. Executive SummaryThis Report highlights the major activities, achievements and studies of CITC during fiscal year 2013, most notably the following:

I - PromotionofCompetitionandSectorDevelopment:

�� Issued licenses for a total of 309 at the end of 2013.�� Began the process of issuing licenses for mobile virtual  network  operator  (MVNO)  services  with a view to improving the level and reach of ICT services, reducing prices, improving customer care, increasing job opportunities for Saudis, fostering competition, attracting investment, and increasing the contribution of the sector to the Gross Domestic Product (GDP).�� Initiated  a  study  on  licensing  broadband  satellite 

services.�� Began a study of the ICT market in the Kingdom.�� Updated the Interconnection Guidelines.�� Prepared performance indicators for the ICT services

markets.

�� Prepared guidelines on implementation of shared fiber infrastructure.�� Developed new procedures for mobile number portability in order to encourage competition.�� Implemented the revised National Numbering Plan (NNP).�� Updated disaster recovery plans.�� Continued the role of the Saudi Network Information Center  (SaudiNIC)  in  registering  and  administering Internet domain names.�� Worked  to  increase  readiness  for  the  transition  to Internet Protocol version 6 (IPv6).

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II - Consumer Protection:

�� Addressed user complaints.�� Continued Violations Committee oversight.�� Developed a number of electronic systems aimed at internal and external process automation, including follow-up systems and ICT equipment type approval.�� Continued tariff regulation for ICT services.�� Measured quality of service indicators.�� Provided Internet filtering services.�� Followed  up  the  performance  of  telecom  service  providers 

during the Ramadan and Hajj seasons in order to ensure high-quality services to pilgrims.�� Conducted field measurements of the levels of electromagnetic

radiation.�� Continued National Center for Information Security activities to promote cyber security and provide a safe environment for electronic transactions.

III - Management of Scarce Resources:

�� Provided spectrum management and followed up implementation of the National Frequency Plan (NFP).�� Established an up-to-date spectrum management system.�� Managed numbering resources according to the National Numbering Plan (NNP).

IV -RegulatoryEnvironmentandTransparency:

�� Reviewed the CITC Statutes. A draft of proposed changes to the Telecommunications Act was submitted to the Council of Ministers for consideration. Amendments to articles 1, 37 and 38 of the Act were ratified by Council of Ministers Resolution No. 63, dated 02/03/1434H and approved by Royal Decree No. M/4, dated 07/03/1434H. The amendments were published in newspapers and in 4,450 villages, in accordance with applicable procedures, on 12/03/1434H and became effective on that date.�� Continued  to  prepare  and  issue  quarterly  reports  of  ICT performance  indicators  based  on  analysis  of  data  received from the service providers.�� Undertook media activities in order to educate users and

gauge public opinion.

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V - Universal Service Fund (USF) and Deployment ofTelecomServicesinUnservedAreas:

�� Studied the market in remote and commercially unprofitable areas.�� Identified telecom service areas.�� Updated the USF database.�� Studied requests  to serve 3,456 remote areas  through USF 

projects.�� Completed USF Project #3 covering 2,322 communities.�� Completed USF Project #4 covering 232 communities.�� Implemented  89%  of  USF  Project  #5  covering  368 

communities.�� Implemented  89%  of  USF  Project  #6  covering  295 

communities.�� Awarded USF Projects #7 and #8 covering 3,183 communities.�� Prepared  project  documents  for  USF  Projects  #9,  #10  and #11 covering 5,416 communities.

VI- Studies:

CITC undertook a number of studies in order to develop the sector and its services and to understand technical developments and their impact on service delivery in the Kingdom. These included:

�� Development of mobile services in the Kingdom.�� Prices of ICT services.�� Trends in ICT.

The Report also highlights the accomplishments of CITC compared to the objectives of the Ninth Development Plan (Chapter 9), sector growth and indicators (Chapter 10), and a list of programs for 2014 (Chapter 11).

The Report concludes with several appendices: major Board decisions; other CITC activities and achievements; events and meetings; licenses issued; the CITC “Code of Professional Conduct and Ethics”; and the financial statement for fiscal year 2013.

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2. Regulatory FrameworkCITC is responsible for regulating the ICT sector in the Kingdom. The Telecommunications Act, enacted in 2001, and the Bylaws, issued in 2002, provide the basis for the regulatory framework. The Act lists a number of objectives for CITC including to provide advanced and adequate telecommunications services at affordable prices, ensure creation of a favorable atmosphere to promote and encourage fair competition, ensure effective and interference-free usage of frequencies, ensure transfer and migration of  telecommunications  technology  to keep pace with  its development, ensure clarity and transparency of procedures, ensure the principles of equality and non-discrimination, and safeguard the public interest and the interests of users and investors.

The CITC Ordinance was issued in 2001 and amended in 2003 and it defines the mandate, functions, governance, and administrative and financial independence of CITC.

In fulfilling its objectives, the current agenda of CITC includes attracting investment in the ICT sector and enhancing the competitive environment in all markets and services. This will encourage establishing new  infrastructure,  deploying  new  networks  and  services  including  broadband,  providing  network redundancy  in  case  of  failures  and  emergencies,  and  ensuring  universal  availability  of  ICT  services throughout the Kingdom.

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3. CITCRolesandResponsibilitiesWithin  its mandate,  CITC  regulates  the  ICT  sector  according  to the principles of  clarity and  transparency  in order  to achieve a fair  competitive  environment  to  provide  high-quality  services at affordable prices throughout the Kingdom. CITC strives for balance among all stakeholders: service providers, investors, government, and individual and institutional users. CITC also implements  the  strategy  and  sector  policy  adopted  by  the Ministry of Communications and Information Technology (MCIT). The most important roles of CITC, as the ICT regulator and catalyst for the development of information technology, include: 

�� Implementing the policies, plans and programs adopted for development of the ICT sector.�� Issuing the necessary licenses for the provision of ICT services.�� Protecting the interests of users of ICT services including the

Internet.�� Ensuring that service providers and users fulfill their roles,

taking into account the public interest.�� Establishing the basis for telecom services tariff regulation as

appropriate for the level of competition.�� Establishing policies related to universal access/universal

service.

�� Encouraging reliance on market forces for the provision of ICT services.�� Attracting investment and promoting the provision of high-quality  services  at  affordable  prices  in  all  regions  of  the Kingdom.�� Effectively managing the frequency spectrum and striving to 

achieve optimal use of this limited resource.�� Developing, managing and maintaining the National Frequency 

Plan.�� Developing, managing and maintaining the National

Numbering Plan.�� Encouraging modernization of networks and services and promoting  research  and  development,  technology  transfer and local enterprises.�� Coordinating and participating in e-government and

e-commerce programs.�� Encouraging investment in ICT services and manufacturing. 

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• CITC’s new Headquarters in Al-Nakheel, Riaydh.

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4. Vision and Mission

Vision:“Universallyavailable,highqualityandaffordablecommunicationsandinformationtechnologyservices”.

Mission: �� Provide a fair, clear and transparent regulatory environment 

to promote competition and safeguard the 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.

Values:�� Demonstrate transparency and clarity in all dealings.�� Demonstrate integrity and honesty.�� Consider the views of others.�� Benefit from the experiences of other countries.�� Protect the rights of users and all other stakeholders.

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5. CurrentSituation

5-1 Organizational Structure A new CITC organizational structure was approved by the Board in 2011. The new structure was developed in order to better keep in line with future trends in the rapidly growing and changing ICT markets, focus more on how to protect users, and monitor the markets for an effective competitive environment based on transparency, fairness and non-discrimination. The current CITC organization is shown below.

Board of Directors

TheGovernor

ExecutiveCommittee

Board Secretary

UniversalServiceFund

ViolationsCommittee Internal Auditor

Competition&LegalAffairs

Technical & Spectrum AffairsITAffairs

LegalAffairs CompetitionAffairs TechnicalAffairs Frequency

SpectrumAffairs

CITCOffice,Eastern Region

CITCOffice,Makkah RegionAdvisors

NationalCommitteefor

InformationSocietyE-GovernmentPublicRelations

& MediaInternational

AffairsGovernor’s

OfficeProjects & Planning

Finance & Administration

Affairs

Hum

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Cons

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ServiceProv

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DisputeRe

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Consum

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Decisio

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LegalServices

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Frequency Licensing

Spectrum Monitoring

FrequencyPlanning & Allocation

TechnicalSupport

Technical Standards &Numbering

ServiceProvider& Licensing Af-

fairs

ConsumerAffairs

Economics & Market Studies

Legal Counsel

Legal Support &Follow-up

Internet Services

NationalCenterfor Info SecurityITServicesICT

Promotion

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5-2 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 implementation of its general policies. The Board is chaired by His Excellency the Minister of Communications and Information Technology, Eng. Mohamed J. Mulla. During the year, the CITC Board members were:

�� H.E.Eng.AbdullahA.AlDarrab, CITCGovernor(DeputyChairman)

�� Mr. Fahad A. Al-Dakkan, Ministry of Finance

�� Dr. Mohammed A. Suwailem, KACST

�� Dr.AsaadS.Abdo, PrivateSector

�� Mr.SalehE.Al-Hosaini, PrivateSector

�� Mr.SaudA.AlShammari, PrivateSector

�� Mr. Majed A. Al Bawardi, Ministry of Trade and Industry

The major Board decisions are listed in Appendix A of this Report.

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5-3 Manpower CITC strives to attract the qualified and professional workforce it needs to execute its mission and attain the goals for which it was established. It maintains a stimulating and highly productive work environment. The total number of staff at the end of 2013 was 369 of which 97.2% were Saudis. The professional staff (engineers, IT specialists, technicians, and financial and legal specialists) exceeded 60% of the total.

CITC has developed a Code of Conduct  for  its employees  in order  to ensure  that  the  rights of all stakeholders are respected and that they are treated courteously, fairly, impartially and in confidence; establish the principles and values of the work environment; safeguard against conflicts of interest; and protect against misuse of authority. Excerpts from the Code of Conduct are published on the CITC website and reproduced in Appendix F of this Report.  

5-4 Buildings CITC  awarded  a  contract  at  the  end  of  2009  to  a  Saudi  company  for  the  construction  of  a  new headquarters  building  in  the  West  Nakheel  District  of  Riyadh.  The  land  area  is  50,000  square meters and the floor space is 84,000 square meters. The building has been completed and is under acceptance.

In addition, CITC has purchased 32 plots of land in various parts of the Kingdom to establish spectrum monitoring stations.

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5-5 Electronic ReadinessCouncil of Ministers Resolution No. 40, Article 16, requires each government entity to develop a detailed plan for the transition to e-government. Accordingly, CITC has been building the internal infrastructure needed  to  carry out  its duties  and  comply with the resolution. The following was accomplished during 2013:

�� Completed documentation of all 30 required procedures, including 20 updates and 10 new procedures.�� Completed development of 43% of the required test systems.�� Launched a project to convert administrative processes

in CITC to smart services as part of a strategic program to automate 50% of procedures and make them measurable. Built a platform to measure performance indicators and conducted training of CITC staff on the new processes.

�� Updated project management policies and procedures to version 3 in order to improve control over project parameters such as time, quality, cost, risk management and optimal use of  resources. This  is now the primary  reference  for project managers in CITC.�� Implemented the first phase of a platform to automate project monitoring and measure key indicators.

5-6 Internal Audit Department The Internal Audit department developed an internal audit plan  that was prioritized based on  risk assessments, and  they followed up to ensure implementation of the recommendations in their audit reports.

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6. MainActivitiesandAchievements

6-1 Promotion of Competition and Sector Development 

6-1-1 Licensing and Market LiberalizationCITC  continued  its  efforts  to  promote  competition  by  issuing new licenses for a number of different services and terminating others. The total number of licenses issued was 309 at the end of 2013 compared to 292 at the end of 2012. They are listed in Appendix D.

CITC continued to monitor the compliance of facilities-based fixed, mobile and data service providers with their license obligations and commitments, including network rollout and coverage.

6-1-2   Licensing Mobile Virtual Network Operator (MVNO) Services

With  a  view  to  improving  the  level  of  ICT  services,  reducing prices, improving customer care, increasing job opportunities for Saudis, fostering competition, attracting investment, and increasing the contribution of the sector to the GDP, CITC has prepared  a  study  of  the  development  of  the mobile  services 

market in the Kingdom. The study found a relatively low quality of  service  as  rated  by  subscribers,  minimal  options  for  users among the three licensed service providers, and fewer available alternatives than would be expected for a market of 28 million people.

CITC therefore concluded that there is a need to enlarge the retail and wholesale sales structure in the mobile services market  by  issuing  new  licenses  for MVNOs.  This will  result  in improved customer care, more customer choice, innovative services bundles, and greater competition at the retail sales level. It will benefit both the facilities-based service providers (FBPs) and the MVNOs. While  the FBPs will  lose some market share to the MVNOs, those FBPs that host MVNOs will attract new and valuable traffic to their networks, realizing higher revenues from wholesale services without incurring the costs of acquiring subscribers.

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Accordingly, CITC has undertaken a public consultation, reviewed and analyzed the comments received, and coordinated with the Ministry  of  Finance  regarding  license  fees.  The  following was accomplished during 2013:

�� A draft application for MVNO licenses was approved by the Board.�� A request for license applications was issued.�� Five  applications  were  received  and  evaluated,  and  the 

Board agreed on three of the applicants to advance to the next phase.�� The three eligible applicants were requested to complete the remaining requirements for the MVNO licenses.

The final submissions will be evaluated upon receipt and will be submitted to the Board for approval in preparation for issuing the licenses.

6-1-3 Licensing Broadband Satellite ServicesCITC promotes the expansion of broadband services in all areas of the Kingdom. Accordingly, CITC initiated a study to benchmark global trends in currently available broadband satellite services, assess the need to license such services in Saudi Arabia, review appropriate licensing options, assess the economic impact on the ICT sector, and determine an appropriate time frame for introducing these services. The following was accomplished during 2013:

�� Prepared a report on the types of current and future satellite services.�� Prepared an international benchmark report on the most important  types of  services offered by broadband satellite, types of licenses, spectrum requirements, charges for these services, numbering requirements, filtering requirements for Internet services, and other important implementation issues.

CITC is currently preparing a report on licensing options for these services and then will undertake a public consultation, review and analyze  the  comments,  and present  recommendations  to the Board.

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6-1-4   Study of the ICT Market in the KingdomThis project aims to provide quantitative and qualitative analysis of the overall status of the ICT sector in the Kingdom for the next  three  years.  The  focus  is  primarily  on  the  ICT  markets, investments,  consumer  behavior  and  use  of  technology,  level of use of computers and the Internet, level of satisfaction with services, and barriers to use of the Internet. A request for proposal has been issued, proposals from competing universities have been evaluated, and a winning university has been selected. The following was accomplished during 2013:

�� Developed a methodology and project work plan.�� Designed  a  survey  questionnaire  on  topics  such  as  service provisioning,  quality  of  service,  price  of  service,  user satisfaction, and user behaviors.�� Evaluated tools for data extraction from the survey and for testing data integrity.�� Developed a strategy for survey sample sizes.

Individuals are currently being trained for the field survey and data collection, after which the survey will begin.

6-1-5 Interconnection Guidelines Update CITC has undertaken a project to update the Interconnection Guidelines  originally  issued  under  Decision  25/1424,  dated 23/09/1424H. The aim is to ensure technology neutrality in the transition to next generation networks, incorporate a number of new interconnection services to stimulate competition, and reflect  the  reality  of  the  current  markets.  The  following  was accomplished during 2013:

�� Prepared a draft of updated Interconnection Guidelines.�� Prepared a draft of Guidelines for Access to Physical Facilities.�� Prepared public consultation documents for both Guidelines.�� Performed international benchmarking related to relevant

sections of the public consultation documents.The next phase is to undertake a public consultation. This will be followed by analysis of the comments received and finalization and approval of the Guidelines documents.

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6-1-6  Performance Indicators for the ICT Services Markets

In order to monitor the ICT sector in the Kingdom and the performance of the licensees, CITC publishes comprehensive quarterly reports on performance indicators for the ICT services markets. The indicators are calculated based on data provided by the licensed service providers. The indicators were prepared and published at the end of each quarter of 2013, and this will continue in the future. Chapter 10 of this Report is a summary of the most important performance indicators for the ICT markets as of the end of 2013.

6-1-7    Guidelines on Implementation of Shared Fiber Infrastructure

CITC has undertaken a project to issue guidelines covering many of the technical and commercial aspects for service providers to implement shared fiber optic network infrastructure in cities and on highways. The document recommends typical technical standards for excavation and construction in trenches, as well as procedures for sharing the infrastructure among service providers. A draft in Arabic has been prepared and is being coordinated  with  the  Ministry  of  Municipal  and  Rural  Affairs (MOMRA) and other stakeholders to incorporate their views. It will then be considered for adoption and action.

6-1-8   Mobile Number PortabilityCITC developed new procedures for mobile number portability in  order  to  facilitate  and  expedite  number  transfers,  thereby encouraging competition and contributing to improved service and  lower  prices.  The  procedures were  approved  by Decision 327, dated 22/05/1434H. Since the new procedures entered into effect, there has been no indication of any remaining issues impeding the number portability process.

In the area of managing mobile number portability, CITC monitors the actions of the service providers, oversees the number portability database, ensures  the effectiveness of  the number portability  procedures,  assures  that  the  operators  conform  to the procedures, works to resolve user complaints (around 2,500 in 2013),  and  resolves disputes between  the operators.  There was a huge increase in number portability transfers in 2013 as a result of the new procedures, including a 300% increase in 2H2013 compared to 1H2013.

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6-1-9   Disaster Recovery Plan Updates As part of its efforts to develop the ICT sector, CITC has previously developed the regulatory framework and guidelines for disaster recovery  planning.  CITC  has  coordinated  with  the  facilities-based service providers (FBPs) to prepare their disaster recovery plans, schedule testing of the plans, and keep them updated in line with current developments in the sector. CITC has received and reviewed the plans and monitored test results in line with the  regulatory  framework  and  guidelines  and  has  contacted the service providers regarding the needs for updates and amendments. The following was also accomplished during 2013:

�� Coordinated with the FBPs to ensure their conformance to the safety requirements at the Holy Places.�� Coordinated  and  followed  up  with  the  FBPs  to  implement disaster  recovery  planning  required  by  the  Civil  Defense: countering the risk of rain and floods in Makkah in 2013, emergencies during Ramadan 1434H, and emergencies during the pilgrimage 1434H.

6-1-10   Saudi Network Information Center (SaudiNIC) SaudiNIC continued its role in registering and administering Internet domain names. SaudiNIC has also approved a number of important additions to the services provided to users through the electronic services portal which allow them greater flexibility and speed. The following was accomplished during 2013:

�� Published the historical archive of domain name registrations to assist researchers.�� Deployed a range of services for availability via the Government Services Bus (GSB).�� Redesigned the accounts interface to handle large accounts

managing a large number of domains.�� Implemented a platform to adopt the Extensible Provisioning Protocol (EPP) for internal systems.�� Enhanced the message sending mechanism to domain registration clients. Added the ability  to send SMS messages in  certain  cases,  standardized  the  system  to  facilitate  easier follow-up, and improved transmission performance.�� Designed and implemented a mechanism to measure the level

of satisfaction of the clients of SaudiNIC services, as well as their opinions about the services and how they are provided.�� Updated, enhanced and extended the mechanism for archiving supporting e-documents, submitted by clients  in a variety of formats and methods, to be able to handle these documents and unify their file types and specs to fit the SaudiNIC internal systems.�� Received 10,893 applications for new domain name

registrations.�� Modified the registration information on 5,219 domain names, changed the registrant identity on 569, and made 608 domain account changes.

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�� Handled 12,443 domain renewal requests and 70 domain name deletion requests.�� Created 4,515 new accounts and modified information on

810 accounts.�� Responded to 8,710 inquiries and service tickets.�� Introduced a feature that allows clients to request manual

rather than automated processing of their requests.�� Enhanced the service to generate a new account password

and secret question once account information has been verified.�� Validated  alternatives  and  submitted  recommendations  on adapting  an  external  website  monitoring  service  to  study the types of services provided and assessing which may be suitable for SaudiNIC.

6-1-11   Increasing Readiness for the Transition to Internet Protocol version 6 (IPv6)  

Due to rapid developments in uses of the Internet, the large increase in IP-based networks, and the consumption of over 90% of the available addresses within the currently used IPv4, CITC continued its efforts to increase the readiness in the Kingdom for the transition to IPv6. IPv6 will provide an enormous number of IP addresses to meet present and future requirements.

During 2013, CITC launched a project to promote IPv6 deployment in the Kingdom. The objectives were to: provide a benchmark study on  the current  IPv6 status  in  the Kingdom compared  to a previous study and to international best practices; define any obstacles, or regulatory or technical requirements of the Internet ecosystem, that might limit a smooth transition to IPv6; increase awareness of the importance of a smooth migration to IPv6, clarify the roles of the main stakeholders, and coordinate with a number of Saudi universities to work on applied research and encourage students to build expertise in this field; and select and work directly with a number of pilot entities on providing their services  via  IPv6, on developing  their  portals  accordingly,  and later sharing this experience with similar entities. The following was accomplished during 2013:

�� Developed the project charter and project timeline.�� Conducted several meetings with stakeholders to get their

feedback on the project.�� Conducted an online survey of 200 entities as part of the IPv6 

current assessment phase.   CITC has played a leading role in supporting the transition to IPv6 and in driving the activities of the National IPv6 Task Force. The Kingdom has received international recognition as a world leader in this area, and this experience will have a significant impact on the readiness of the Kingdom. As part of the support

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effort, the 13th and 14th meetings of the IPv6 Task Force were held  in  Riyadh,  two more  IPv6  training  sessions were  held  in cooperation  with  the  Middle  East  Network  Operators  Group (MENOG) and the Regional Internet Registry (RIPE NCC), and CITC chaired the panel discussion on IPv6 at the Global Symposium for Regulators  (GSR 2013).  The number of  Saudi  entities with IPv6 address space has increased to 48..

6-1-12   ICT Equipment Type Approval  To ensure that ICT equipment conforms to the latest international standards, CITC reviews and updates its technical specs on an ongoing basis and keeps its processes for type approval updated to ensure efficiency and timeliness. CITC considers applications for ICT equipment type approval, ensures they conform to the technical specs, and issues the appropriate approvals. Some 18,346 applications were processed in 2013.

6-2 Consumer Protection

6-2-1  User ComplaintsIn fulfilling its responsibilities regarding consumer protection, CITC resolved 20,976 complaints in 2013, representing 0.038% of the total number of subscribers to fixed and mobile services. Most complaints pertained to billing, nuisance calls, quality of service, disconnection of service, and service interruptions.

In order to achieve the highest levels of satisfaction in the areas of user complaints, consumer protection and consumer rights, CITC accomplished the following in 2013:

�� Prepared draft CITC procedures and draft guidelines for service providers on dealing with user complaints. These documents are under final review for approval and implementation.

�� Established a call center to handle follow-up calls from users regarding their complaints. The center handled 37,152 calls during the year.�� Developed  a  system  on  the  CITC  website,  in  Arabic  and 

English, that allows users to submit complaints against service providers and to  follow them up quickly and easily. The system produces periodic reports and statistics regarding the number of complaints, responsiveness and customer satisfaction. There were 33,752 complaints logged on the system this year.

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It should be noted that CITC attempts to resolve user complaints by analyzing the complaints and their causes and then seeking fundamental solutions that will reduce recurrence of the problem.

6-2-2   Violations CommitteeThe CITC Violations Committee  investigated and  ruled on 997 alleged violations. Most were related to cable cuts, making illegal calls, selling unapproved ICT equipment, illegally selling prepaid SIM cards without proper identification, and unapproved promotional offers and packages, in addition to violations related to telecom license terms and conditions, number portability and others.

CITC has undertaken a program to automate the follow-up of decisions, including standardized processes and forms as well as periodic reports and indicators. The system is in final testing before launch.

6-2-3   Follow-up SystemCITC undertook development of a system to follow up the status of cases initiated by or against the Commission. The objective is to track dates to ensure deadlines are not missed, document the stage of each case, produce reports and indicators, and monitor and follow up related meetings. During 2013, the software was developed to document the progress of all cases and to record preliminary and final verdicts. Final testing is underway prior to launch.

6-2-4   Tariff Regulation for ICT ServicesIn order to protect consumer rights and promote fair competition, CITC aims to implement best practices both in tariff regulation for all operators and in developing specific procedures for dealing with service offerings. In this spirit, CITC has implemented a decision not  to  require approval of  temporary promotions  for mobile services but only notification by the service provider.

During 2013, CITC received 104 notices of promotional offers as well as 159 requests for tariff approval, of which 126 were granted.

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6-2-5   Quality of Service  In order to protect consumer rights and ensure high-quality ICT services,  CITC  conducted  a  comprehensive  analysis  of  all  the quarterly technical reports submitted by the service providers. CITC maintained a continuous review and follow-up process with the service providers to improve the quality of their services in accordance with CITC standards.

6-2-6   Internet Filtering In fulfilling its responsibilities regarding Internet filtering, which is done to limit inappropriate content and protect users, CITC accomplished the following in 2013:

�� Handled 648,336 requests to block or unblock sites, of which 600,258 (or 92%) were for blocking.�� Set up a communication mechanism with major content providers to combat child pornography on the Internet and to allocate available  resources efficiently. Coordinated with a number of international content providers to remove child pornography from their websites. Identified 169,780 links of which 86% were taken down.�� Developed  the  first  phase  of  a  system  to  automate 

communications with content providers to request removal of certain content.�� Developed the first phase of an analysis system to search for 

domains attempting to override blocked sites. Discovered 1,500 such domains.�� Developed a system to monitor domains using changing  IP 

addresses in an attempt to override blocked sites. Monitored 84  domains  with  dynamic  IP  addresses  and  succeeded  in caching 1,767 unique IP addresses.�� Developed a new URL processing interface to improve filtering team efficiency and precision.�� Developed a system to improve the efficiency and precision 

of ticket distribution.�� Redesigned the whitelist framework and applied it consistently on all required phases of filtering.�� Developed  a  system  framework  to  track  and  raise  alerts 

about important events.�� Developed a new main page  for  the Filtering Management System (FMS) to provide more important tracking information about various system components.�� Developed a new block/unblock form to support or add new

core features and services.�� Developed the first phase of a new e-fax and email processing system to link with the FMS.�� Developed multiple versions of a system to automate tracking 

‘Hotspot Shield’ IP addresses to support blocking access to bypassing programs.

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�� Studied a  range of  filtering bypass programs and prepared technical reports on each of them with a view to finding solutions to their use.�� Developed  a  workflow  management  system  to  support 

multiple commercial filtering lists.�� Documented the high-level structure of the FMS as well as development guidelines for system developers.�� Designed a special blocking request form for the Ministry of 

Information and Culture.�� For  purposes  of  blocking,  analyzed  the  download  links  for different  Apple  app  stores  (USA,  Saudi  Arabia  and  Turkey) and determined that they all point to the US store download link.�� Followed up to resolve technical problems related to service provider  filtering  systems  which  were  escalated  from  the CITC Internet Help Desk.�� Added more information to the automated reply message in the system for processing requests and queries from Internet users.�� Participated in updating a simple guide on dealing with abuse

on social networking sites.�� Participated in preparing a report on websites in Saudi Arabia (.gov, .org, .edu) that are hosted outside the Kingdom.

�� Participated in developing a tool to analyze the list of most visited websites and determine their IP addresses and hosting locations.�� At the request of the national work team formed and headed by the Ministry of Interior, prepared a paper on the ability to build local social networks.�� Participated in a meeting between Google and MENA officials responsible  for  public  policy  and  government  relations  to review the ability to prevent the bypassing of filtering systems at the national access points to encrypted Google services.�� In order to improve the accuracy and efficiency of processing 

blocking/unblocking requests, conducted research on products available on the market, open source and otherwise, which can automatically assess the content of websites.

6-2-7   National Center for Information SecurityCITC continued its efforts through the National Center for Information  Security  (CERT-SA)  to  enhance  cyber  security, provide a healthy environment for electronic transactions, and attract foreign investors to the IT industry in the Kingdom. The following was accomplished during 2013:

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�� Sent 713 alerts regarding viruses.�� Sent  15  early warnings  against  cyber  attacks  to  223  client 

agencies.�� Alerted six agencies about their websites being hacked or

being unavailable.�� Sent 15 warnings to 15 client agencies about detected vulnerabilities in their systems.�� Sent 156 warnings about threats on subscribers’ networks detected by the real-time monitoring service.�� Connected the MCIT data center, the PKI data center, and 73

new client agencies to the real-time monitoring, alert and warning services, and updated the records of 59 clients in the database.�� Provided technical support to law enforcement in 11 criminal cases,  including  investigation  and  analysis  of  electronic evidence and preparation of case reports.�� Coordinated with social networking companies, such as Twitter and Facebook, to delete 58 hacked accounts.�� Responded  to  nine  cyber  attacks  against  government 

agencies and sensitive businesses in Saudi Arabia.�� Published  70  articles  related  to  information  security,  plus 

35 warnings about viruses and malware, on the CERT-SA website.

6-2-8   Electronic System for Type Approval of ICT Equipment

CITC has undertaken a project to develop an electronic system for type approval of ICT equipment and to create a database of approved equipment. A portal on the CITC website can be used to submit applications for approval to import equipment, ICT type approval, and Customs clearance. The system links to the Customs system via the Yesser Government Services Bus. 

Work  is  currently  underway  on  completion  of  system development and linking with internal and external entities, particularly Customs.

6-2-9   Overseeing Telecom Services during the Ramadan and Hajj Seasons

In order to fulfill its responsibility to ensure the provision of high-quality  telecom  services  to  pilgrims,  CITC  formed a  task  force of experts to monitor the performance of telecom services in Makkah, Madinah and the Holy Places during the Ramadan and Hajj pilgrimage seasons. Major activities are listed in Appendix B.7.

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6-2-10   Field Measurements of the Levels of Electromagnetic Radiation   In cooperation with leading academic and research institutions in the Kingdom, CITC has undertaken a program to monitor the  conformity  of  service  providers  with  the  regulations  on electromagnetic  radiation  from  wireless  base  stations.  Field measurements are being conducted at a number of sites to determine  the  level  of  human  exposure  to  radio  frequency emissions. The following was accomplished during 2013:

�� Completed  measurements  of  Groups  IV  and  V  in  Phase 4, consisting of 280 sites throughout the Kingdom, in collaboration  with  King  Fahd  University  of  Petroleum  and Minerals. This phase is now completed.�� Prepared all the necessary documents to renew the contract with King Fahd University of Petroleum and Minerals for Phase 8, for another four years.�� Completed measurements of Groups II and III in Phase 5,

consisting of 300 sites in the Madinah area, in collaboration with Taibah University. Selected the sites for Group IV.�� Completed 50% of the measurements of Group II in Phase 6,

consisting of 100 sites in Central Region, in collaboration with Imam Muhammad ibn Saud Islamic University.

�� Completed measurements of Group II in Phase 7, consisting of 140 sites in Western Region, in collaboration with Umm Al-Qura University.�� Updated the technical information on the operators’ mobile radio stations, which is done periodically to verify compliance with CITC regulations.�� Directed operators to undertake corrective actions at sites in

violation of national guidelines.�� Calibrated four instruments used for measurement of

electromagnetic radiation.�� Compiled all field measurements in a single file and undertook a statistical study of the data. The program code automatically adds new or revised data to the statistical tables.�� Documented the levels of electromagnetic radiation.

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6-3 Management of Scarce Resources

6-3-1    Spectrum Management and the National Frequency PlanThe National Frequency Plan (NFP) was approved by the Council of Ministers  in Resolution No. 61, dated 02/03/1429H. The NFP defines the allocation of frequency bands for different radio services and user categories to meet the needs of radio spectrum users in the Kingdom in line with international guidelines. The NFP went into effect on 02/05/1429H with an implementation schedule divided into two-, three- and five-year time frames. The following are the percentages of the frequencies that have been vacated as of the end of 2013.

Assignmentlevel Clearance %

Frequencies to be vacatedwithintwoyears

Kingdom-wide 45.38%

Province-wide 26.56%

City-wide 96.7%

Specific locations 96.9%

Frequencies to be vacatedwithinthreeyears

Kingdom-wide 0.78%

Province-wide 90.7%

City-wide 26.8%

Specific locations 14.4%

Frequencies to be vacatedwithinfiveyears

Kingdom-wide 15.7%

Province-wide 23.44%

City-wide 17.4%

Specific locations 19.1%

It is evident from the table that there has been a significant delay in the execution of the Plan compared to the target. Most of the frequencies that have not been vacated are used by certain government agencies and have been reallocated for public telecom services in the Kingdom. CITC will continue to follow up the NFP implementation and require that frequency allocations not compatible with the Plan be vacated in line with the NFP.CITC continued to undertake other activities in the area of spectrum management as described in Appendix B.1.

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6-3-2   Spectrum Management SystemThe existing spectrum management system  is almost 20 years old and has become outdated. CITC has therefore undertaken a project to update the system using state-of-the-art technology and international best practices for management and allocation of frequencies; coordination at the local, regional and international  levels; control of frequency interference and unauthorized transmissions; a field inspection and monitoring system;  a  type  approval  laboratory;  and  spectrum monitoring stations. The project has been awarded and has been launched.

6-3-3   National Numbering PlanIn  line  with  the  CITC  responsibility  to  update  the  National Numbering  Plan  (NNP)  to  keep  pace  with  future  growth requirements  and  to  provide  the  flexibility  to  accommodate new technologies and services, an updated NNP was approved by  the  Board  in  Decision  5/96  dated  23/09/1432H.  CITC  has successfully coordinated with the licensed service providers to complete the conversion of the geographic zone codes.

With  respect  to managing  the  NNP,  applications  for  numbers and  codes  submitted by  service  providers  and other  agencies were reviewed and decided. CITC also coordinated with the International Telecommunication Union (ITU) on numbering for wireless networks. The following are some of the major activities during 2013:

�� Studied and decided applications for number allocations from service providers and other agencies.�� Allocated 12 unified 4-digit SMS codes for charitable

donations.�� Determined numbering allocation fees and annual use fees required for payment. 

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6-4 Regulatory Environment and Transparency

6-4-1  Review of CITC StatutesCITC has undertaken a comprehensive review of its Statutes in light of its current mandate. A draft of proposed changes to the Telecommunications Act was submitted to the Council of Ministers for its review. Amendments to articles 1, 37 and 38 of  the Act were  ratified by Council of Ministers Resolution No. 63, dated 02/03/1434H and approved by Royal Decree No. M/4, dated 07/03/1434H. The amendments were published in newspapers and in 4,450 villages, in accordance with applicable procedures, on 12/03/1434H and became effective on that date.

6-4-2   Updating the Regulatory EnvironmentIn line with its responsibilities, CITC continued to update its regulations in response to developments and international best practices. The following was accomplished during 2013:

�� A  number  of  amendments  to  the  Bylaws,  based  on  the  revisions  to the Telecommunications Act ratified by the Council of Ministers, were adopted by the Board and approved by Decision No. 1 of the Minister of Communications and Information Technology, dated 01/01/1435H. These were published in newspapers and in 4,491 villages on 03/02/1435H and became effective on that date.�� Prepared the general framework for CITC internal procedures.

6-4-3  Performance Indicators for the ICT MarketsCITC continued to prepare quarterly reports during 2013 of ICT performance indicators based on analysis of data received from the  service  providers.  These  were  published  in  the  quarterly electronic bulletin and on the CITC website.

6-4-4   Media ActivitiesCITC recognizes its mission to educate users and the public, gauge public opinion, and promote investment opportunities in the  ICT sector. Accordingly, CITC has a spokesman responsible for managing media relations, participation in a number of media activities and events as listed in Appendix B.5, follow-up of communications with the public and stakeholders through various channels, and official reports and announcements. In  addition,  a  quarterly  electronic  bulletin  on  ICT  sector performance was issued.

6-5 Other AchievementsIn addition to the major activities undertaken and highlighted in this section,  CITC  carried  out  many  other  activities  as  summarized  in Appendix B.

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7. UniversalServiceFund(USF)

7-1 Planning and Implementation ActivitiesContinuing its efforts to achieve the objectives of the universal service/universal  access  policy  and  implement  the  strategic  plan within the approved time frame, the USF prepared operational plans containing the main programs and projects for each operational year. The plans identify the structures and implementation methods of the projects, clarify the USF program outputs in general, define the scopes of work, and estimate project costs. The main activities and achievements of the operational plans are described in the following sections.

7-1-1 Pilot ProjectThe Pilot Project provided voice and broadband Internet services to all underserved communities with a population under 5,000 in two governorates in Makkah Province (Alkamil and Khulays) and in one governorate in Madinah Province (Almahd), as shown in Figure 1. This was a total of 483 communities and 103,089 people. The project was awarded in 2010 and has been completed. Commercial service is currently being launched. 

Figure1.TargetgovernoratesinthePilotProject

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7-1-2 First Operational PlanThe USF prepared and obtained approval of the First Operational  Plan  for  the  year 2010.  The scope included a single project, USF Project #2, covering 563 communities and 174,114 people in all three governorates in Northern Border Province  (Arar, Rafha and Turayf),  in all  three governorates  in  Al-Jouf  Province  (Alqurayyat, Dawamat Aljandal,  and Sakaka),  and  in  three governorates  in  Jazan  Province  (Addair, Alqiya and Arrayth), as shown in Figure 2. The project was awarded in 2010 and has been completed.  Commercial  service  is  currently being launched.

Figure2.TargetgovernoratesintheFirstOperationalPlan,Project#2

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7-1-3 Second Operational PlanThe  USF  prepared  and  obtained  approval of the Second Operational Plan for the year 2011. The scope included two projects.

A.USFProject#3

This project covered 2,322 communities and 610,069 people in one governorate in Makkah  Province  (Alqunfidhah),  in  three governorates  in  Aseer  Province  (Annamas, Balqarn  and  Bishah),  and  in  all  seven governorates  in  Al-Baha  Province  (Alaqiq, Albaha, Almandaq, Almukhwah, Alqari, Biljurashi  and  Qilwah),  as  shown  in  Figure 3. The project was awarded in 2011 and has been completed.

Figure3.TargetgovernoratesintheSecondOperationalPlan,Project#3

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B.USFProject#4

This project covered 232 communities and 83,905 people in two governorates in Riyadh Province  (Almajmaah  and  Rumah)  and  in three governorates in Eastern Province (Alkhafji, Hafar Albatin, and Qaryah Alulya), as  shown  in  Figure  4.  The  project  was awarded in 2011 and has been completed.

Figure4.TargetgovernoratesintheSecondOperationalPlan,Project#4

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7-1-4 Third Operational Plan The USF prepared and obtained approval of the Third Operational  Plan  for  the  year  2012.  The scope included two projects.

A.USFProject#5

This project covered 368 communities and 204,621 people in one governorate in Tabouk Province  (Tayma)  and  in  three  governorates in  Hail  Province  (Asshinan,  Baqa  and  Hail),  as shown in Figure 5. The project was awarded in 2012 and is 89% completed.

Figure5.TargetgovernoratesintheThirdOperationalPlan,Project#5

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B.USFProject#6

This project covered 295 communities and 91,055 people in all governorates of Najran Province  (Alkharkhir,  Badr  Aljanub,  Hubuna, Khabash, Najran, Sharurah, Thar and Yadamah), as shown in Figure 6. The project was awarded in 2012 and is 89% completed.

Figure6.TargetgovernoratesintheThirdOperationalPlan,Project#6

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7-1-5   Fourth Operational Plan  The USF prepared and obtained approval of the Fourth Operational Plan for the year 2013. The scope included two projects.

A.USFProject#7

This project covered 1,868 communities and 704,691 people in all 11 governorates in  Qaseem  Province  (Alasyah,  Albadai, Albukayriyah,  Almidhnab,  Annabhaniyah, Arrass,  Ashshimasiyah,  Buraydah,  Riyadh Alkhabra,  Unayzah  and  Uyun  Aljiwa) and  11  governorates  in  Riyadh  Province (Addiriyah,    Adduwadimi,  Afif,  Alghat, Alquwayiyah,  Arriyad,  Azzulfi,  Duruma, Huraymila, Shaqra and Thadiq), as shown in  Figure  7.  The  project was  awarded on 03/12/2013.

Figure7.TargetgovernoratesintheFourthOperationalPlan,Project#7

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B.USFProject#8

This project covered 1,315 communities and 324,247 people in four governorates in  Makkah  Province  (Alkhurmah,  Altaif, Ranyah and Turubah), as shown in Figure 8. The project was awarded on 03/12/2013.

Figure8.TargetgovernoratesintheFourthOperationalPlan,Project#8

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7-1-6 Fifth Operational Plan:  The  USF  prepared  and  obtained approval of the Fifth Operational Plan for the year 2014. The scope included three projects.

A.USFProject#9

This project covers 1,130 communities and 334,572 people in five governorates in Madinah Province  (Alhinakiyah,  Almadinah Almunawwarah,  Badr,  Khaybar  and Yanbu  Albahr)  and  one  governorate in  Hail  Province  (Alghazalah),  as shown in Figure 9. The project will be tendered and awarded in 2014.

Figure9.TargetgovernoratesintheFifthOperationalPlan,Project#9

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B.USFProject#10

This project covers 3,829 communities and 1,195,817 people in five governorates in  Aseer  Province  (Abha,  Almajardah, Muhayil, Rijal Alma, and Sarat Abidah) and 11  governorates  in  Jazan  Province  (Abu Arish, Ahad Almusarihah, Alaridah, Alharth, Alidabi,  Baysh,  Damad,  Farasan,  Jazan, Sabya and Samtah), as shown in Figure 10. The project will be tendered and awarded in 2014.

Figure10.TargetgovernoratesintheFifthOperationalPlan,Project#10

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C.USFProject#11

This project covers 457 communities and 132,396 people in five governorates in Tabouk Province (Alwajh, Duba, Haqil, Tabuk and Umluj) and one governorate in Madinah Province (Alula), as shown in Figure 11. The project will be tendered and awarded in 2014.

Figure11.TargetgovernoratesintheFifthOperationalPlan,Project#11

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7-2 Studies

7-2-1 Market Study  The USF has  initiated a market study and comprehensive analysis of the ICT sector in the Kingdom, including a field survey of the services required in all governorates of the Kingdom, in order to update the USF strategic and operational plans, the database of USF service locations, and the USF financial model. About 1,500 interviews in 156 urban and non-urban communities were conducted in 2013 as part of the field survey. In addition, the USF coordinated with the service providers to determine details of their network coverage as well as their plans for future deployments. 

7-2-2    Study to Identify Telecom Service Areas  The USF has undertaken a study to identify the communities that are not covered by telecom services and to analyze the gap in voice and broadband Internet services. This was done by plotting a map of telecom networks and services throughout the Kingdom and representing the coverage geographically. The following was accomplished during 2013:

�� Collected and analyzed official data from the Central Department of  Statistics  and  Information  (CDSI)  based  on  the  results  of  the latest population and housing census. These included population and demographic distribution, urban sites, social and economic groups, and the names of communities.�� Updated and analyzed ICT services and coverage based on the data and maps  of  telecom  services  coverage  provided  by  the  service providers as part of their bids for USF projects.�� Analyzed  and  entered  updated  population  data  obtained  from various sources, as well as coverage data from the USF projects, in the Geographic Information System (GIS) model.

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7-2-3  Database Update The  USF  databases  were  updated  based  on  the  CDSI  services guide for 1433H. The update process included:

�� Analysis of demographic distribution data, localities data and actual coverage.�� Analysis of the latest data update from CDSI and comparison to the current USF database.�� Analysis  and  evaluation  of  the GIS  data  received  from CDSI 

and the service providers in the Kingdom.�� Analysis and evaluation of  the coverage maps  from the USF 

service providers.

7-2-4  Service Requests for Remote Areas Part  of  the  USF  effort  to  oversee  the  implementation  of  the universal  service/universal  access  policy  is  to  monitor,  study and  analyze  service  requests  for  unserved  remote  areas  that are  submitted  by  individuals  and  some  government  agencies. The USF  then  considers  the  possibility  of  covering  these  areas in its projects in accordance with the policy and regulations that govern its work. The following was accomplished as of 2013:

�� Considered  the  possibility  of  serving  3,456  communities  in USF projects that were contained in 567 service requests.�� Included 433 such communities within the scope of the USF 

Pilot Project.

�� Included  266  such  communities  within  the  scope  of  USF Project #2.�� Included  482  such  communities  within  the  scope  of  USF Project #3.�� Included  eight  such  communities  within  the  scope  of  USF Project #4.�� Included 36 such communities within the scope of USF Project #5.�� Included  136  such  communities  within  the  scope  of  USF Project #6.�� Included 89 such communities within the scope of USF Project #7.�� Included  456  such  communities  within  the  scope  of  USF Project #8.

7-3 Financial Activities Financial  activities  included  preparing  and  obtaining  approval of the annual budget for 2014 and the financial statement for 2012, in addition to managing operational expenses according to approved procedures.

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8. Studies A number of studies were conducted during 2013 including those described in the following sections.

8-1  Development of Mobile Services in the KingdomThe  ICT  sector  needs  to  overcome  many  obstacles  and  take advantage of available opportunities in order both to develop the  sector  and  to  attract  further  investment.  Accordingly,  in 2013,  CITC undertook  a  study on  the development of mobile services and applications for businesses and individuals in the Kingdom. The following was accomplished:

�� Conducted 1,324 interviews within the private sector and government agencies to gauge changes in their use of mobile technologies.�� Conducted 1,324 interviews with citizens and residents

to measure the extent of use of mobile devices and smart phones.�� Conducted 493 interviews within the private and public

sectors to collect quantitative data about enablers and barriers to use of mobile technologies.

�� Conducted 642 interviews with users of smart devices to establish trends in their use.�� Conducted 40 interviews with 33 different facility operators, 

application developers, and major users in the private sector and government to collect qualitative data on their views of mobile systems in the Kingdom.

During 2014, CITC will complete the field surveys and prepare a report describing opportunities and recommendations for mobile services development in Saudi Arabia.

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8-2  Prices of Telecom Services in the KingdomCITC periodically reviews the prices of telecom services  in the Kingdom  to  ensure  that  they  are  in  line  with  typical  pricing regionally  and  internationally.  For  comparison  purposes with  other  countries,  CITC  used  a  scientific  methodology that  accounted  for  differing  market  dynamics  and  marketing strategies  used  by  the  service  providers.  The  following  was accomplished during 2013:

�� Identified and classified the telecom and data services in the Kingdom.�� Evaluated the current pricing for these services.�� Listed the prices of all telecom and data services provided by 

all operators in the Kingdom.�� Listed the prices of all such services provided by the operators 

in the benchmark countries.�� Compared prices in the Kingdom to those in other countries

using a basket of packages and individual services.

�� Evaluated the strengths and weaknesses of tariff regulation in the Kingdom.�� Evaluated the pricing structure in the Kingdom.�� Gained an understanding of the current telecom market in the Kingdom and of the pricing methodology in a number of countries.

The  study  concluded  that  the  pricing  of  telecom  and  data services in Saudi Arabia is in line with that in neighboring countries  and  is,  in  fact,  lower  than  in many  countries  in  the world. It also concluded that the telecom market in the Kingdom is competitive.

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8-3  Future Trends in ICTContinuing its efforts to develop the ICT sector in the Kingdom, CITC prepared a study on future trends in ICT. The study identified major trends, including a number of services and technologies that are expected to have a significant impact on the sector. One example  is  over-the-top  (OTT)  Internet  applications  provided by  unlicensed  third  parties  and  using  available  networks  to replace  more  traditional  methods  of  service  delivery.  OTT services generally are  related  to multimedia applications  such as audio, video and text, including instant messaging and voice communications. Such technologies transfer income from licensed operators to the application providers.

Another  trend  is  cloud  computing,  computer  systems  and resources available to any Internet user, which is usually offered by unlicensed  third-party  service providers  through  their own data centers. Users access the cloud via personal computers,

smart phones, tablets and other smart devices. Due to their advantages, cloud computing services are expected to expand both  globally  and  locally.  The  study  concluded  that  there  is  a need  for  a  supportive  regulatory  environment  to  encourage Saudi companies to build the advanced data centers needed to provide cloud computing services and solutions. This will avoid reliance by government agencies, businesses and individuals on foreign providers which in turn might create problems in the areas of national security, demand for international connectivity, capacity,  reliability,  data  protection,  and  diminished  revenues and foreign investments.

8-4 Other StudiesIn addition to the studies highlighted in this section, CITC carried out a number of other studies as summarized in Appendix B.8.

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9. AccomplishmentsComparedtotheNinthDevelopmentPlanArticle 16 of the CITC Ordinance stipulates that: “The CITC Governor shall within ninety days from the start of each fiscal year submit to the Minister an Annual Report, after  its approval by  the Board. This Report  should describe  the Commission’s accomplishments during  the past year compared with the policies of the General Development Plan, the difficulties encountered, and the proposals for work improvement and progress. This Report will be submitted by the Minister to the Chairman of the Council of Ministers”.

The  following  table details  the  relevant policies of  the Ninth Development Plan,  for  the period 2010  to 2014, and a  summary of  the major accomplishments of CITC in this regard.

PoliciesoftheNinthDevelopmentPlanRelevanttoCITCandAccomplishments

PoliciesoftheNinthDevelopmentPlan1 CITC Accomplishments

Continue efforts and programs to liberalize and regulate the ICT sector.

�� CITC continued its efforts to promote competition through issuing new licenses for a number of different services and terminating others. The total number of licenses at the end of 2013 was 309.�� CITC continued its efforts to fulfill its responsibilities, including implementing a number

of programs and projects such as the following:�� Completed the procedures for licensing mobile virtual network operators (MVNOs).

�� Updated the procedures for tariff approval for retail and wholesale telecom ser-vices in order to reduce the burden on the operators, stimulate competition, low-er prices, and improve quality of service.

�� Completed the study of ICT market definition and dominance. Four of the iden-tified markets  are  fully  liberalized  leading  to  increased  competition  and better services at lower prices.

�� Continued to oversee the progress of the fixed, mobile and data service providers with respect to their network rollout plans and coverage, as described in the proposals submitted to obtain their licenses.

1 Policies are specified in Section 24.1.5.3 of the Ninth Development Plan (1431-1436H) (2010-2014).

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PoliciesoftheNinthDevelopmentPlan1 CITC Accomplishments

Deploy broadband networks in all regions of the Kingdom.

Extend broadband networks and high-speed Internet to all schools,

universities,governmentagenciesandcivilsocietyinstitutions.

�� By the end of 2013, the number of subscriptions to fixed broadband services had increased to 2.92 million, representing 45.5% of households, and total mobile broadband population penetration had reached 47.6%.�� Realization of the goals of the Ninth Development Plan, which includes ‘direction towards the creation of a knowledge economy and an information society’, requires provision of high quality infrastructure for broadband communication networks to provide high-speed Internet access at affordable prices. This makes development of broadband services a cornerstone for the success of the Development Plan in the Kingdom over the next few years. CITC has carried out a number of specialized studies of the ICT sector to determine the best ways to transition to a knowledge economy and to identify the major obstacles to the spread of broadband services of the required capacity and quality. In view of the importance of aligning efforts among all relevant agencies, several meetings have been held with a number of government agencies, public institutions, ICT service providers, and public and private sector companies, resulting in development of a long-term vision for the evolution of broadband services in the Kingdom. Initiatives have been developed to address the obstacles to the spread of broadband services in the Kingdom and to facilitate access to these services by all segments of society. A roadmap has also been developed for implementation of these initiatives after their approval.�� The strategic plan of the Universal Service Fund (USF) has been approved and has identified 

the scope of work for communities with a population under 5,000, representing 18.2% of the total population of the Kingdom. The plan includes providing voice service to 5,626 communities (or 36% of the total of 15,428 communities) and broadband Internet service to about 98% of all communities, including all educational and health care institutions and other service agencies in these communities.

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PoliciesoftheNinthDevelopmentPlan1 CITC Accomplishments

Employ the resources of the UniversalServiceFundtoprovideservicesintheareasmostinneed.

�� The  USF  Pilot  Project  provided  voice  and  broadband  Internet  services  to  483 communities with a population under 5,000 in two governorates in Makkah Province (Alkamil and Khulays) and in one governorate in Madinah Province (Almahd). The project is completed.�� USF  Project  #2  (First  Operational  Plan)  provided  voice  and  broadband  Internet services to 563 communities in all three governorates in Al-Jouf Province (Alqurayyat, Dawamat  Aljandal,  and  Sakaka),  in  all    three  governorates  in  Northern  Border Province  (Arar,  Rafha  and  Turayf),  and  in  three  governorates  in  Jazan  Province (Addair, Alqiyas and Arrayth). The project is completed.�� The  Second Operational  Plan  (USF  Projects  #3  and  #4) was  launched.  Project  #3 

provides voice and broadband Internet services to 2,322 communities in all seven governorates  in Al-Baha Province  (Alaqiq, Albaha, Almandaq, Almukhwah, Alqari, Biljurashi and Qilwah), in three governorates in Aseer Province (Annamas, Balqarn and Bishah), and in one governorate in Makkah Province (Alqunfidhah). The project is completed. Project  #4  provides  voice  and  broadband  Internet  services  to  232  communities in  two  governorates  in  Riyadh  Province  (Almajmaah  and  Rumah)  and  in  three governorates  in Eastern Province  (Alkhafji, Hafar Albatin and Qaryah Alulya).  The project is completed.

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PoliciesoftheNinthDevelopmentPlan1 CITC Accomplishments

Employ the resources of the UniversalServiceFundtoprovideservicesintheareasmostinneed.

�� The Third Operational Plan (USF Projects #5 and #6) was launched. Project #5 provides voice and broadband Internet services to 368 communities in one governorate in Tabouk Province (Tayma) and in three governorates in Hail Province (Asshinan, Baqa and Hail). The project is 89% completed.Project #6 provides voice and broadband Internet services to 295 communities in all eight governorates in Najran Province (Alkharkhir, Badr Aljanub, Hubuna, Khabash, Najran, Sharurah, Thar and Yadamah). The project is 89% completed.�� The  Fourth  Operational  Plan  (USF  Projects  #7  and  #8)  was  launched.  Project #7  provides  voice  and  broadband  Internet  services  to  1,868  communities in  all  11  governorates  of  Qaseem  Province  (Alasyah,  Albadai,  Albukayriyah, Almidhnab,  Annabhaniyah,  Arrass,  Ashshimasiyah,  Buraydah,  Riyadh Alkhabra,  Unayzah  and  Uyun  Aljiwa)  and  11  governorates  of  Riyadh  Province (Addiriyah,  Adduwadami,  Afif,  Alghat,  Alquwayiyah,  Arriyad,  Azzulfi,  Duruma, Huraymila,  Shaqra  and  Thadiq).  The  project  was  awarded  on  03/12/2013. Project #8 provides voice and broadband Internet services to 1,315 communities in four governorates in Makkah Province (Alkhurmah, Altaif, Ranyah and Turubah). The project was awarded on 03/12/2013.

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PoliciesoftheNinthDevelopmentPlan1 CITC Accomplishments

Manage the frequency spectrum efficiently, enhance its capacity, and

accelerate the implementation of the National Frequency Plan.

�� CITC continued to follow up the implementation of the National Frequency Plan (NFP)  and  to  require  all  agencies  with  frequency  allocations  which  no  longer conform to the NFP to vacate those frequencies within the time frame approved in the Plan. (See Section 6.3.1 and Appendix B.1 of this Report.)�� CITC  has  started  implementing  an  up-to-date  spectrum  management  system 

according to the latest technical standards.�� CITC has established a system to provide spectrum services electronically via the 

Internet.

ContinuetodevelopandupdateICTstandards.

�� CITC has updated the ICT technical specifications.�� CITC staff have been trained on the application of the updated technical

specifications and on the mechanisms for updating the technical specifications in the future.�� CITC is continuing to monitor the conformity of service providers with regulations on  electromagnetic  radiation  from wireless  base  stations.  Field measurements have been conducted at a number of sites in the Kingdom and all measurements to date indicate that radiation levels are about 100 times below allowable levels per international standards.

ProvidevariousincentivestoattractdirectforeigninvestmentintheIT

industry.

�� CITC has sought to attract foreign investment by undertaking periodic studies of the ICT markets in the Kingdom and quantifying all indicators related to these markets which are of interest to local and international investors. CITC has published all information related to these studies on its website and has updated it on a regular basis. The most important information for investors is penetration of mobile, fixed and broadband services in the Kingdom, as well as data on revenues and investments in the sector.

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PoliciesoftheNinthDevelopmentPlan1 CITC Accomplishments

ProvidevariousincentivestoattractdirectforeigninvestmentintheIT

industry.

�� CITC has issued annual reports on the status of the IT sector in the Kingdom as a means to increase public attention on the issues. The IT Reports also encouraged decision makers  in public and private agencies to remove any barriers to sector growth and to the creation of a transparent and competitive environment that generates sector investment and increases development. A forum was also organized to raise awareness of the issues in the IT Reports and to discuss recommendations and ways to increase stakeholder cooperation in the sector.�� CITC, through the National Center for Information Security (CERT-SA), has promoted cyber security to provide a healthy environment for electronic transactions which will attract and help build foreign investments in the IT sector in the Kingdom.�� Continuing  its  efforts  to  develop  the  ICT  sector,  CITC  has  prepared  a  study  on new  services  (data  centers,  managed  services  and  cloud  services)  in  order  to raise awareness and  identify ways of developing  these  services.  The  study also made recommendations on using ICT to automate small and medium businesses, attracting more local and foreign investment that will contribute to creating job opportunities in the sector, and raising the competitiveness level in the Kingdom.�� CITC launched a national program to increase awareness of information security. 

The program contained a range of time-based plans, information campaigns, measurement tools, objectives and strategies that focused on public awareness of information security for all segments of society in the Kingdom.�� CITC  continued  to  provide  a  variety  of  free  domain  name  registration  services allowing investors efficient and easy access to safe websites.�� CITC is developing an electronic system for type approval of ICT equipment and is creating a database of approved equipment. The system will be free of charge and will support submission of applications electronically through an Internet portal, requests for approval to import equipment, and links to the Customs system.

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PoliciesoftheNinthDevelopmentPlan1 CITC Accomplishments

Developthecapacityofcompaniesand enterprises and increase their

usage of ICT.

�� CITC has undertaken a detailed study and field survey of a number of public and private enterprises.  The outcome of  the  study appeared  in  the  IT Reports.  The Reports highlighted the opportunities for growth and investment in the IT sector and  identified  the  skills  gaps  and  employment  opportunities  in  the  sector.  The Reports provided stakeholders in the public and private sectors with basic data that will enhance their capabilities in recruitment, training and attracting investment, and  they  contributed  indirectly  to  developing  the  capacity  of  companies  and enterprises.�� CITC  launched  an  initiative,  the  Tahfeez  program,  to  stimulate  the  ICT  industry in  the Kingdom by addressing the shortage of products and services offered by small and medium local ICT businesses and encouraging them to improve their competitiveness. The program aimed in the long term to pave the way for leading national companies to contribute to growth and employment in the ICT sector in the Kingdom.�� CITC undertook a detailed study and field survey of a number of public and private 

enterprises focusing on the status and recommendations for the development of data centers, managed services and cloud services in the Kingdom. The results of the study are contained in the annual IT Report for 2012. 

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10. Growth and Indicators of the ICT Sector in the Kingdom

10-1 Mobile Services Market There were about 50.9 million mobile subscriptions at the end of 2013, representing a population penetration rate of 170%. Prepaid subscriptions constitute  the majority  (over  86%)  of  all mobile subscriptions. A decrease in the number of subscriptions was observed starting from Q3 2012 due to a lower demand for voice services and an increase in data services, as well as implementation of the decision to link prepaid SIM cards to the subscriber’s national identity and the efforts of CITC to eliminate unidentified SIM cards. Service providers deactivated a large number of improperly identified SIM cards, affecting both the total number of subscriptions and the penetration rate.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

5

10

15

20

25

30

35

40

45

50

55

60

12%

2.5 2.92.1 3.8

4.9 9.515.1

23.6

30.5

38.7

45.3 47.1 45.7 43.9

3.4 4.3 4.6 4.6 4.8 5.5 6.1 6.3 6.6 7.3 6.9

23%32%

40%

60%

81%

113%

138%

167%

186% 188% 181.6%170%

2.55

7.29.2

14.2

19.7

28.4

36

44.8

51.6 53.7 53 50.9

Subscriptio

ns(M

illions)

Prepaid Subscriptions

Mobile PenetrationPostpaid SubscriptionsTotal Subscriptions

2012 2013

Figure12:MobileServicesMarketGrowth

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10-2 Fixed Telephone Market There were about 4.7 million fixed telephone lines at the end of 2013 of which about 3.3 million, or 70%, were residential lines. This represents a household teledensity of about 64.3% and a population teledensity of about 15.7%.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

1

2

3

4

5

1.2

1.11.071.010.90.81.05

1.08

1.17 1.031.3

2.12.2

2.5

2.8 2.9 2.9 2.9 3.0 3.0 3.13.3

15.2% 15.3% 15.7% 16.2% 16.3% 16.2% 15.9% 15.8% 15.5% 15.0% 16.2%

69.3%

66.7%65.1%66.8%67.1%69.2%70.5%69.7%

62.8%59.0%

56.3%

Business Lines

Population Teledensity (%)Household Teledensity (%)

Residential Lines

Tele

phon

e Li

nes (

Mill

ions

)

Total Subscriptions

1.4 1.41

3.4 3.3

16.4% 15.7%

67.6% 64.3%

2012 2013

Figure 13: Fixed Telephone Market GrowthNote: Population teledensity is calculated by dividing total fixed telephone lines by

the population, while household teledensity is calculated by dividing residential lines by the number of households.

10-3 Broadband Market Demand for broadband services has increased significantly in recent years due to the growing need for high-speed services throughout society,  especially  given  the  strong  support  of the Government for high-tech projects requiring good digital infrastructure, as well as the increase in e-government transactions. Another factor is the increase in Internet usage in the Kingdom for communication, access to information, and business processes, and also brought about in part  by  hundreds  of  thousands  of  programs downloaded to smart devices. These programs, which require large download capacities and high speeds, include social networking, business applications, word processing, chat programs, security tools, games and many others. A study has been undertaken on ways to provide high-speed  networks  to  accommodate  all  types  of services in all parts of the Kingdom.

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10-3-1 Fixed Broadband Services MarketFixed  broadband  subscriptions  including  Digital Subscriber  Line  (DSL),  fixed  wireless  (WiMAX), fiber  optics  (FTTx)  and  other  fixed  lines  have grown to about 2.92 million at the end of 2013. The fixed broadband household penetration rate was about 45%.

Fixed Wireless Subscriptions ADSL Subscriptions

Leased Lines + FTTx

Total Fixed Broadband Subscriptions Household Penetration (%)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

0.5

1.0

1.5

2.0

3.5

3.0

2.5

0%

10%

20%

30%

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50%

0.03 0.06

0.22

0.62

1.04

1.44

1.74

1.95

2.542.92

0.60

1.00

1.301.49 1.56

1.87 1.85

33%

40.8%45%

0.550.8

0.3

0.2

27%

24%

17%

4.8

Subscriptio

ns(M

illions)

Pene

trati

on(%

)

Figure14:FixedBroadbandServicesMarketGrowth

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10-3-2 Mobile Broadband Services MarketTotal mobile broadband subscriptions reached about 14.27 million at the end of 2013, representing a population penetration rate of 47.6%. About 9.68 million were data-only subscriptions. The increasing prevalence of smart phones has led to the rise in the number of users in recent years. The increase in data traffic using these devices has been supported by extensive 3G and 4G coverage in various regions of the Kingdom.

Standard Mobile Subscriptions

Dedicated Mobile Data Subscriptions

Total Mobile Broadband Subscriptions

Mobile BB Teledensity (of populations)

1.312.70

4.28 4.21 4.59

7.068.06

9.68

0.2% 1.1%

4.9%

9.7%

39.6%42.1%

47.6%

Subscriptio

ns(M

illions)

Pene

trati

on(%

)

0%02007 2008 2009 2010 2011 2012 2013

12345678910

1112131415

10%

20%

30%

40%

50%

Figure15:MobileBroadbandServicesMarketGrowthNote: The figures were adjusted based on an audit and analysis of inputs and application

of a new calculation methodology.

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2013Annual Report |

1.0 1.4 1.8 2.43.0

4.8

7.6

9.3

10.3

11.4

13.6

2001

5%6%

8%10%

13%

20%

30%

36%38%

41%

47.5%54.1% 55.1%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130 0%

210%

4

20%6

30%8

40%10

50%

12

60%

14

16

Internet Penetration (%)Internet Users (Millions)

15.8 16.5

Figure16:InternetServicesMarketGrowth

10-4 Internet Services Market There were about 16.5 million Internet users in the Kingdom at the end of 2013, representing a population penetration rate of 55.1% compared to 5% in 2001. There has been increasing demand  recently  for  broadband  and  Internet services, correlated with the surge in social media usage and the demand for ever-larger downloads at ever-higher speeds. The amount of data traffic in mobile networks has now reached almost 1 billion gigabytes, or about 2.8 thousand terabytes per day.

It is expected that the demand for Internet services  will  increase  significantly  in  the  next few  years  due  to  growing  online  content  and the spread of handheld smart devices and applications.

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

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50

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90

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100

11.8

8 12.9 17.7 20.925.2

28.5 33.238

3945.11 52.42 55.91 54.7443

49.252.5

6166 71

3834

3027

2420

10.6 9.5 9.6 9 9.8 9.3 11.2

9.514.5

16.618.2 18.7

4.2

13.5 15.5 13.3 15.120.7

In-Kingdom Revenue onlyFixed Data

WirelessForeign Investment Revenue

Figure17:TelecomServicesSectorRevenues

10-5 Telecom Services Sector Revenues Telecom services revenues from operations in Saudi Arabia have been growing at an average annual rate of  about  10%  over  the  last  eight  years,  increasing to about SAR 75 billion in 2013. Mobile services revenues represent 73% of all telecom sector revenues, with fixed and data services accounting for the remaining 27%. This increase resulted from overwhelming user response to new services and packages, as well as the efforts of CITC to regulate prices and packages to make them accessible to everyone.  It  should  be  noted  that  the  licensed service providers have reinvested a large portion of their revenues to expand their networks and to introduce new services to meet the needs of the population.

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10-6 Spending on ICT ServicesCITC estimates that spending on ICT services was about SAR 102.56 billion in 2013 compared to SAR 36 billion in 2005, an average annual growth rate of about 14%. This has been driven by an  increase  in operator  investments  to expand and update their networks and to offer state-of-the-art services, as well as by consumer purchases of the latest technologies and software.

The spending on  information  technology  (IT) was around 36% of the total, mostly concentrated on hardware and IT services. The spending on ICT products and services is expected to grow by more than 12% in 2014 driven mainly by large investments by government and the private sector and by expected strong growth  in  demand  for  the  latest  technologies,  cyber  security software and interactive applications. All of this will result in growth of direct investment and support services in the sector.

The ICT market in the Kingdom is the largest in the Middle East in terms of market capitalization and volume of spending, and it accounts for more than 70% of the GCC ICT market. Capital  investment  in  the  past  ten  years  has  exceeded  SAR 135 billion. This has been caused by a huge demand for high-speed data and other modern services, requiring the operators to expand their domestic networks, including communications towers and service centers, and to upgrade their international communications  capability.  Their  greatest  challenge  is  the large geographical area of the country and the unbalanced and widespread population centers.

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Annual Growth

TelecomIT

Total Spending

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

10

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100%

4.5

18 21 23.428

36

48

60

7073 75

82.594

102.56

5.212%

20%29% 33%

25% 17%21.9

5.8 7 9 14.4 1821

3% 10% 14% 9.1%22.5 24.8

33

37.29

13.517.6 27

33.642

49 51.152.5

57.8 6165.27

2115.7

4%16%

Figure18:SpendingonICTServices

10-7 International Internet Bandwidth    The total capacity for international Internet connectivity in 2013 was about 814.2 gigabits per  second  (Gbps)  compared  to 318 Gbps in 2010.

2010

318

0100200300400500600700800900

Gbp

s

2011 2012 2013

440556

814.2

Figure19:InternationalInternetBandwidth

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11. Work Program for 2014CITC  will  continue  to  carry  out  its  duties  and  responsibilities  and plans to implement a number of programs and projects during 2014 including the following:

�� Complete the licensing of mobile virtual network operators (MVNOs).�� Continue the process for licensing broadband satellite services.�� Review recommendations on the definition and regulation of ICT

markets in the Kingdom.�� Continue regulation of tariffs for ICT services and complete the

update of the relevant procedures.�� Complete development of procedures for handling user complaints.�� Review procedures for the assessment of violations that increase

the timeliness of the process and minimize issues that could result in overturning the decisions of the Violations Committee.�� Review and revise the Rules of Procedures.�� Develop procedures for following up implementation of the decisions  of  CITC  and  the  Violations  Committee,  ensuring  that those procedures conform to the CITC Statutes and the laws of the Kingdom.�� Develop an automated process to track CITC cases before the

Grievance Diwan.�� Develop an automated system to issue and renew class licenses.�� Review the drafting of contracts and agreements entered into by 

CITC and develop templates.

�� Continue to perform field measurements of the level of electromagnetic radiation in the Kingdom within the framework of the technical cooperation program with universities and research institutions.�� Measure the performance of the mobile networks according

to the program set for 2014.�� Continue providing technical support to the CITC sectors,

government agencies and other external organizations.�� Continue to monitor the quality of service obligations of the 

licensed service providers.�� Continue to advance the Interconnection Guidelines update and the Guidelines for Access to Physical Facilities.�� Continue to monitor and address the technical aspects of complaints regarding mobile number portability.�� Continue to manage the allocation of numbers and codes to

service providers and other entities in accordance with the National Numbering Plan.�� Continue  to  establish  and  periodically  update  technical 

specifications for ICT equipment and continue to issue equipment type approval certificates.�� Monitor the performance of the service providers during the

Ramadan and Hajj seasons.�� Follow up on the technology watch and technical indicators 

of interest.

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�� Complete draft regulations on ICT services to private, commercial and government land.�� Study  the  possibility  of  allowing  ICT  suppliers  to  import 

wireless devices for sale in the Kingdom.�� Complete the Number Portability Guidelines.�� Complete the development of the electronic system for type 

approval of ICT equipment.�� Continue to follow up implementation of the National Frequency Plan. �� Implement an updated spectrum management system.�� Issue the annual report on the status of the IT sector in the

Kingdom for 2013.�� Develop a national portal to support employment in the ICT 

sector.�� Complete the account of ICT regulations in the Kingdom.�� Complete USF Projects #5 and #6 from the Third Operational 

Plan.�� Implement  USF  Projects  #7  and  #8  from  the  Fourth Operational Plan.�� Tender  and  award USF  Projects  #9,  #10  and  #11  from  the Fifth Operational Plan.�� Prepare the scope of work for the Sixth Operational Plan in light of the approved USF budget.

�� Continue work on the USF market study.�� Complete the review of the universal access/universal service policy and update the current policy if required. �� Continue  to  update  the  USF  database  according  to  the 

population and housing census of 1431H and in light of the projects currently underway.�� Continue work on a CITC database of service coverage and

requirements.�� Finalize the scope of work for the USF GIS project, and tender 

and award the project.�� Prepare  the  budget  for  the USF  Sixth Operational  Plan  for 

2015.�� Prepare the USF financial statement for 2013.�� Continue implementation of the internal audit work plan for

the new organizational structure prioritized based on risk assessments.�� Launch an awareness campaign on cyber crime.�� Produce interactive awareness videos.�� Prepare an awareness campaign for child Internet safety.�� Prepare a CITC media strategy.�� Develop guidelines for the CITC identity. 

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Appendices

Appendix A: Decisions of the Board of DirectorsThe Board held 11 meetings in 2013. The major decisions taken during the year include:

�� Approval of the CITC budget for the 2014 fiscal year.�� Approval of the budget of the National Committee for the Information Society (NCIS) for the 2014 fiscal year.�� Approval of the USF budget for the 2014 fiscal year.�� Approval of the CITC, NCIS and USF financial statements for the 2012 fiscal year.�� Approval of the recommendations from the evaluation of the bids for MVNO licenses, and approval that 

the eligible bidders be requested to complete the next phase of licensing requirements.�� Approval of the financial bids of the two companies competing to update the spectrum management system, and approval to proceed to project award.�� Approval of the award of USF Project #7 of the Fourth Operational Plan to Mobily.�� Approval of the award of USF Project #8 of the Fourth Operational Plan to Mobily.�� Approval  of  amendments  to  articles  1,  37  and  38  of  the  Telecommunications  Act  originally  approved by Royal Decree No. M/12, dated 03/12/1422H. The amendments were ratified by Council of Ministers Resolution No. 63, dated 02/03/1434H, and approved by Royal Decree No. M/4, dated 07/03/1434H.

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Appendix B: Other Activities and Achievements In addition to the major activities described in Section 6 of this Report, CITC undertook many other activities including those described in the following sections.

B-1 Spectrum Management�� Carried out 4,759 frequency allocations and registered many 

of them with ITU for protection from interference from other countries.�� Canceled  1,139  frequency  allocations,  either  to  implement the National Frequency Plan or because the allocations were no longer needed.�� Issued and renewed 95 licenses for fixed and mobile wireless equipment, 280 for maritime wireless systems, 57 for amateur radio operators, 125 for amateur radio stations, and 672 for aeronautical navigation services.�� Reviewed 160 applications for amateur radio licenses.�� Conducted 109 amateur radio exams.�� Calibrated 399 instruments and repaired 102 instruments

used in spectrum management, and performed technical measurements on 801 wireless devices.�� Inspected 4,555 wireless devices and 129,563 spare parts.�� Reviewed 40 applications for licenses to use wireless

equipment.�� Monitored 2,442 cross-border emissions causing harmful

interference in the Kingdom and coordinated with neighboring countries to address them. �� Coordinated 232 requests for frequency use during the visits 

of foreign dignitaries and foreign vessels.�� Reviewed and took appropriate action on 56 applications for frequency coordination between the Kingdom and other GCC countries. �� Carried out 39,752  frequency monitoring measurements  to 

detect unauthorized signals causing interference.�� Carried out 29,573 measurements on allocated frequencies to verify compliance with the conditions of their allocations.�� Monitored 17,136 unauthorized emissions, addressed them with  the  concerned  authorities  to  make  the  necessary hardware adjustments, and took appropriate action. �� Investigated 390 interference complaints within the Kingdom

and took steps to resolve them.�� Carried out 112,200 measurements of frequencies used for safety and emergency services to ensure that they are free of harmful interference.

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�� Studied  50  ITU bulletins  on  frequency use  for  satellite  and terrestrial services and complied with their requirements.�� Initiated 2,127 claims for payment of frequency usage fees.

B-2 ICT Equipment and Devices�� Prepared and issued a new technical specification for off-

road devices.�� Reviewed 2,055 applications for ICT equipment type approval.�� Processed 18,346 applications for Customs release of

imported ICT equipment.�� Responded to over 3,000 enquiries related to technical standards, all within one business day.�� Provided technical support and consultations on over 150

seizures of ICT equipment.

B-3 Certificate of MeritCITC was  awarded  the 2013 Certificate of Merit  by  the World Customs Organization  in recognition of  its exceptional support of Saudi Customs. CITC has created a database of approved ICT equipment and has developed a portal on the CITC website which can be used to submit applications for approval to import equipment, ICT type approval, and Customs clearance. The CITC system links to the Customs system via the Yesser Government Services  Bus.  The  certificate  was  presented  by  the  Director General of Saudi Customs in celebration of World Customs Day.

B-4 Technical Support  to Government and Other External Agencies�� Reviewed the draft national plan for response to chemical

and biological accidents. Commented on the responsibilities entrusted to the Ministry of Communications and Information Technology  (MCIT)  in  light of  the  regulatory  framework  for disaster recovery planning for the ICT sector in the Kingdom.�� Provided ongoing technical support on a variety of topics to a number of agencies, including the Ministry of Municipal and Rural Affairs, MCIT, municipalities and others.�� Studied frequent communications failures within an entire

governorate and proposed solutions. This resulted in the installation  of  new  Multi-Service  Access  Node  (MSAN) technology which will contribute to alleviating the problem.�� Coordinated with STC to augment its mobile service within the Ministry of Finance compound in Riyadh.�� Provided guidance and follow-up to STC regarding hotlines to  link  the  Civil  Defense  operations  room  in  Jeddah  with concerned responders.�� Coordinated with the mobile operators to resolve the problem of translating calls to short code 939 for the Ministry of Water and Electricity in Al Khobar and Qatif. The bugs have been fixed and documented.�� Directed STC to move their fiber optic lines to the new

building for the Makkah Directorate of Health Affairs.

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�� Reviewed requests for coverage submitted to CITC. This included a review of service provider coverage obligations and taking action to provide service as appropriate.�� Developed escalation procedures for failures and number translation problems with calls to emergency numbers.�� Provided support and advice to the Red Crescent on identifying  the  geographic  location  of  callers  to  their emergency number.�� Coordinated with the service providers and held several

meetings on minimizing the number of telecom sites in the Holy  Places  and  the  Grand  Mosque  by  consolidating  and sharing sites.�� Coordinated  between  the  General  Presidency  of  the  Two Holy Mosques and the operators regarding indoor wireless coverage in the mosques and the use of shared antennas.�� Provided support to the Riyadh Development Authority and 

coordinated with the operators about poor mobile coverage along the extensions of Urubah Road and Abi Bakr Road.�� Supported MCIT  in hosting the second annual Arab Forum 

on Internet Governance.�� Provided expert advice to Imam Muhammad ibn Saud Islamic  University  on  an  exclusive  agreement with Mobily for interior coverage.�� Responded to study requests and enquiries from the Ministry of Housing and the Ministry of Municipal and Rural Affairs regarding trenching for fiber optic cables.

�� Participated in the national standing committee on responding to radiological and nuclear disasters.�� Continued participation in the government committee charged  with  studying  and  developing  standards  for delivering telecom services to land grants designated for residential housing. This included coordinating with the service providers to prepare cost estimates for delivering such services.�� At the request of the City of Makkah to prepare a planning study, coordinated with the service providers on minimizing the number of telecom sites in the Holy Places and the Grand Mosque by consolidating and sharing sites.

B-5 Media Activities and Events�� Participated as a supporter and sponsor of Arabnet Riyadh 

2013, the Cisco Conference 2013, the Social Media Tulsa Conference 2013, and the HP World Conference 2013.�� Participated in the Child Helpline Conference and Exhibition as a member of the Supervisory Board of the National Family Safety Program.�� Cooperated with the fixed and mobile service providers

to launch a full media campaign on the changes to the geographic  zone  codes  (adding  the  digit  1)  which  were implemented during 2013.�� Issued  quarterly  electronic  bulletins  in  Arabic  and  English 

regarding developments in the ICT sector.

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�� Issued over 50 press items in Arabic and English, including news, statements and clarifications, reports, responses and comments.�� Produced six short videos on a number of services offered by 

CITC and on certain procedures of interest to users.�� Started  building  a  comprehensive  communication  strategy for the years 2014 to 2016.�� Cooperated with the National Anti-Corruption Commission (Nazaha)  to  co-host  a workshop on  ‘The  role  of  ICT  in  the fight against corruption and the promotion of ethical values’, in which all the major telecom operators participated.�� Continued to broadcast CITC awareness messages through

various social networking sites.

B-6 Cooperation with Nazaha CITC  is  cooperating  closely  with  the  National  Anti-Corruption Commission (Nazaha) in implementing the national strategy for the fight against corruption. This strategy includes highlighting the importance of public awareness, promoting ethical behavior and related religious teaching, developing good citizenship, and emphasizing the protection of public funds, facilities and property.  Together  with  Nazaha,  CITC  hosted  a  workshop  on ‘The role of ICT in the fight against corruption and the promotion of ethical values’. All the major telecom operators participated: STC, Mobily, Zain, Etihad Atheeb  (GO) and  Integrated Telecom Company (ITC).

The aim of the workshop was to focus on methods for the ICT sector to contribute to the fight against corruption. Discussions addressed  the  use  of  modern  technology  in  promoting community values, the use of ICT in anti-corruption campaigns, and proposals for partnership and cooperation between Nazaha and the ICT sector. The key recommendation at the conclusion of the workshop was to leverage ICT services as a means to raise awareness of the need for ethical values and the fight against corruption.

B-7  Overseeing Telecom Services During the Ramadan and Hajj Seasons �� Conducted field measurements in Makkah and Madinah

for the Ramadan and Hajj seasons to ensure that the mobile operators are meeting the technical standards and quality  of  service  criteria  set  by  CITC  in  accordance  with international standards and best practices. Conducted similar measurements at different locations in the Kingdom selected according to criteria set by the Commission.�� Reviewed the preparations of the service providers in Makkah and the Holy Places, as well as the ports of entry in  Jeddah, to ensure the provision of telecom services worthy of the reputation of the Kingdom and sufficient to meet the needs of the pilgrims.�� Monitored the performance of the service providers during

the Ramadan and Hajj seasons 1434H in Makkah, Madinah

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and  the Holy Places. Developed  fault  reporting procedures for the pilgrimage.�� Prior to the Hajj season, monitored wireless frequencies around the Grand Mosque and the Holy Places to ensure that there was no harmful interference.�� Temporarily  allocated  2x13.2  MHz  bandwidth  in  the  1800 

MHz band to improve the level of mobile service for the pilgrims in Makkah and Madinah during the Hajj season 1434H.�� Coordinated the activities of government agencies and the

service providers to ensure compliance with relevant Hajj regulations.�� Conducted field visits to the service provider sites to assess

network performance.�� Conducted  daily  visits  to  the  network  operations  centers during  the  Ramadan  and  Hajj  seasons,  especially  at  peak hours.�� Oversaw  the  service  providers  in  augmenting  the  mobile 

networks to cope with the increased traffic during the Hajj season.�� Received user complaints regarding telecom services in the Holy Places and expedited resolutions.�� Coordinated the availability of STC technicians for round-the-

clock coverage in important and sensitive locations to provide troubleshooting and immediate repair of any breakdowns of landline systems.

�� Provided daily reports to the Supreme Hajj Committee during the pilgrimage.�� Prepared an evaluation of telecom performance following

the Hajj season 1434H for future reference.

B-8 Other Activities and Studies�� Studied the subject of user complaints for both mobile and

fixed service.�� Followed  up  the  network  rollout  and  service  coverage 

commitments of the service providers according to the conditions of their licenses.�� Reviewed requests for coverage submitted to CITC, including

a review of service provider coverage obligations and taking action to provide service as appropriate.�� Provided support  to Zain  for  them to be  included with  the Office of Coordination and Follow-up of the Municipality of Riyadh.�� Reviewed the study on intermediate servers prepared by the Wael A. Alissa Law Firm.�� Followed  up  the  compliance  of  mobile  operators  and Blackberry with regulations for the service.�� Published  a  study  on  deployment  of  4G  (LTE)  mobile technology and required 4G coverage maps on the websites of the service providers.

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Appendix C: Participation in Meetings and ConferencesCITC participated in many local, regional and international meetings, conferences, seminars and exhibitions in 2013, including the following.

C.1  Regional Participation  

1. Meetings of the Gulf Cooperation Council (GCC):

�� Coordination meeting on cross-border mobile networks among Saudi Arabia, Qatar, Kuwait and Bahrain. Manama, 15-16 Jan 2013.�� Preparatory meeting among  the GCC countries  for  the  ITU meeting  in  Geneva  on  frequency  coordination  in  the  Gulf Region. Dubai, 2-3 Mar 2013.�� 5th meeting of the working group to restructure the working

committees of the GCC Ministerial Council Committee for Posts and Telecommunications. Manama, 1-3 Apr 2013.�� Meeting of specialists to agree on a mechanism for the

operation of TETRA networks in GCC border areas. Manama, 5-6 May 2013.�� Meeting of the team to follow up the implementation of the

GCC plan for the transition from analog to digital television broadcasting. Manama, 25-30 May 2013.�� 34th meeting of the Technical Committee of the Technical

Bureau of the Cooperation Council of the Arab Gulf States. Manama, 26-30 May 2013.

�� 5th meeting of the working group on international roaming rates in the GCC. Manama, 12-13 June 2013.�� 5th meeting of the GCC ICT Steering Committee. Manama, 24-26 June 2013.�� Meeting of the Committee of Ministers of Posts, Telecommunications and Information Technology of the GCC countries. Manama, 3-4 Sep 2013.�� 7th meeting of the working group on international roaming

rates in the GCC. Manama, 8-10 Sep 2013.�� 34th coordination meeting between the GCC and the U.S.

Department of Defense. Salalah, 15-19 Sep 2013.�� 2nd  meeting  of  the  GCC  team  to  prepare  for  the  World Radiocommunication  Conference  (WRC  2015).  Salalah,  17-19 Sep 2013.�� Workshop  on  new  directions  for  developing  and  financing 

broadband policies and economies. Manama, 24-25 Sep 2013.�� Meeting of the Arab group on cloud computing. Muscat, 24-

25 Sep 2013.

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�� 9th  meeting  of  the  Committee  of  Computer  Emergency Response Teams of the Gulf States. Muscat, 22-24 Oct 2013.�� 1st meeting of the working group on regulation of applications

and services provided through the Internet in the GCC. Dubai, 4-5 Dec 2013.�� Gulf  and  Arab  States  meeting  to  prepare  for  the  World Telecommunication Development Conference (WTDC 2014). Dubai, 22-26 Dec 2013.

2. Meetings of the League of Arab States:

�� Regional coordination meeting on broadcast frequencies at the Global A13 Conference. Tunis, 28 Jan-1 Feb 2013.�� Coordination meeting  for  Saudi  FM  channel  requirements. Cairo, 4-6 Feb 2013.�� 16th meeting of the Arab Standing Committee for Spectrum to prepare for WRC 2015. Dubai, 3-7 Mar 2013.�� 32nd meeting of the Arab Standing Committee for Communications  and  Information  Technology,  and  33rd meeting  of  the  Executive  Office  of  the  Council  of  Arab Ministers  of  Communications  and  Information  Technology. Doha, 5-7 Mar 2013.�� 7th meeting of the Arab Standardization Team. Rabat, 2-6

Sep 2013.�� High-level meeting of the Arab Standing Committee and the  Executive  Office  of  the  Council  of  Arab  Ministers  of Communications  and  Information  Technology  regarding 

enhanced  cooperation  and  the  Arab  IGF.  Algiers,  26  Sep-1 Oct 2013.�� Meeting of the committee on redrafting the Arab strategy to combat cybercrime. Tunis, 23-24 Oct 2013.�� 1st meeting of the Arab working group to prepare for WTDC 

2014 and regional forum for development of the ICT sector. Manama, 27-31 Oct 2013.�� Meeting of the working group on linking Arab Internet

networks. Tunis, 12-14 Nov 2013.�� 17th meeting of the Arab Standing Committee for Spectrum.

Kuwait, 24-28 Nov 2013.�� 1st  Arab  meeting  to  prepare  for  the  ITU  Plenipotentiary Conference (PP-14). Dubai, 22-26 Dec 2013.

3. Meetings of the Arab Network for ICT Regulators:

�� 11th meeting of the Arab Network for ICT Regulators. Rabat, 27-28 May 2013.

C.2  International Participation  

1. ITU meetings:

�� Induction meeting for chairmen and vice-chairmen of the ITU standardization  sector  (ITU-T)  study  groups. Geneva,  10-11 Jan 2013.�� Meeting  of  ITU  radiocommunication  sector  (ITU-R)  Study Group 2. Geneva, 22-31 Jan 2013.

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�� Meeting of ITU-T Study Group 5. Geneva, 29 Jan-7 Feb 2013.�� 2nd meeting of the Council Working Group on International Internet-related  Public  Policy  (CWG-Internet),  meeting  of CWG-WSIS, and meeting of  the  Informal Experts Group  for World Telecommunication Policy Forum 2013 (IEG-WTPF-13). Geneva, 30 Jan-8 Feb 2013.�� Meeting  of  ITU-T  Study  Group  13.  Geneva,  18  Feb-1  Mar 

2013.�� UNESCO meeting on WSIS+10. Paris, 25-27 Feb 2013.�� 1st meeting to coordinate ITU frequencies below 3 GHz in the

Gulf Region. Geneva, 11-15 Mar 2013.�� 5th meeting of  the Council Working Group on a  stable  ITU 

constitution. Geneva, 8-12 Apr 2013.�� Meeting of ITU-R Working Party 6A. Geneva, 16-24 Apr 2013.�� Meeting of ITU-R Working Party 4A. Geneva, 2-10 May 2013.�� Meeting of ITU-R Working Party 5B. Geneva, 20-31 May 2013.�� 1st meeting of the Commission for Science and Technology for  Development  (CSTD)  working  group  on  enhanced cooperation (WGEC). Geneva, 30 May-21 June 2013.�� 16th  annual  session of  the CSTD. Geneva,  30 May-21  June 

2013.�� 1st meeting of the Review Committee on the structure and working methods of ITU-T, followed by the Telecommunication Standardization Advisory Group (TSAG) meeting. Geneva, 3-7 June 2013.

�� International  Telecommunication  Satellite  Organization (ITSO) workshop on the prevention of harmful  interference to satellite systems. Geneva, 10 June 2013.�� ITU Council session 2013. Geneva, 11-21 June 2013.�� 13th  Global  Symposium  for  Regulators  (GSR). Warsaw,  2-5 July 2013.�� ITU-R special meeting to discuss 25.5°/26° east longitude orbits. Geneva, 9-11 July 2013.�� Meeting of ITU-T Study Group 2. Geneva, 17-26 Sep 2013.�� Meeting of ITU-R Working Party 4A. Geneva, 2-11 Oct 2013.�� 2nd meeting of the CSTD WGEC. Geneva, 2-11 Oct 2013.�� 3rd meeting of CWG-Internet. Geneva, 6-12 Nov 2013.�� ITU-R special meeting to discuss 25.5°/26° east longitude

orbits. Geneva, 12-13 Nov 2013.�� Meeting of ITU-R Study Group 5. Geneva, 2-3 Dec 2013.�� 11th World  Telecommunication/ICT  Indicators  Symposium. Mexico City, 2-6 Dec 2013.�� Meeting of ITU-T Study Group 5. Lima, Peru, 2-13 Dec 2013.�� 1st ITU regional workshop to prepare for WRC 2015. Geneva, 

6-12 Dec 2013.�� Meeting of the ITU-R Special Committee. Geneva, 4-5 Dec

2013.

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2.Otherevents:

�� Testing workshop for the Spectrum electronic services project. Lichtenau, Germany, 18-25 Mar 2013.�� World Trade Organization (WTO) Services Council meeting. Geneva, 20-21 Mar 2013.�� IEEE Wireless Communications and Networking Conference. Shanghai, 7-10 Apr 2013.�� Telecoms Regulation Forum 2013. London, 22-24 Apr 2013.�� FTTx conference. Berlin, 23-25 Apr 2013.�� Seminar on ICTs and climate change. Toronto, 6-9 May 2013.�� WSIS Forum 2013 and the 5th World Telecommunication/ICT Policy Forum (WTPF). Geneva, 13-17 May 2013.�� Positive Hack Conference. Moscow, 23-24 May 2014.�� World Health Organization (WHO) electromagnetic field (EMF) project meeting. Paris, 6-7 June 2013.�� Workshop on e-commerce applications and meetings of the UN Conference on Trade and Development (UNCTAD). Geneva, 17-21 June 2013.�� L S Telcom annual users meeting and associated training in spectrum management. Lichtenau, 1-4 July 2013.�� International Regulators Forum IIC 2013. London, 7-10 Oct 2013.�� Conference on cyberspace. Seoul, 17-18 Oct 2013.�� RSA Conference Europe 2013. Amsterdam, 28-31 Oct 2013.�� Special meeting with corporate owners of social networking sites. San Francisco, 31 Oct-1 Nov 2013.�� Project Management Office Symposium. San Diego, 10-13 Nov 2013.�� Inter-sessional meeting of the CSTD. Washington, 2-4 Dec 2013.�� WTO Ministerial Conference. Bali, 2-6 Dec 2013.�� LeWeb international conference for startups and web entrepreneurs. Paris, 10-12 Dec 2013.

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Appendix D: Licenses Issued

D.1  Total Number of Licensees by Year

Service 2004 2006 2008 2010 2011 2012 2013

FixedTelecomServices 1 1 1 2 2 2 2

MobileTelecomServices 2 2 3 3 3 3 3

DataServices 2 2 2 2 2 2 2

InternetServices 23 47 53 56 36 40 41

VSAT(very-small-apertureterminalforsatellite)Services 5 7 14 18 17 19 19

GlobalMobilePersonalCommunicationServices(GMPCS) 2 3 3 3 2 2 2

InternetServiceonAircraft 1 1 1 1 ـــ ـــ ـــ

MobileServiceonAircraft ـــ 1 1 2 1 ـــ ـــ

AutomaticVehicleLocation(AVL)Services 6 24 26 44 35 64 74

BulkSMSServices 6 92 135 137 105 127 131

AudioText(700)Services ـــ 26 24 14 7 6 5

CallCenterServices ـــ 7 10 11 10 15 20

ElectronicWalletServices ـــ 2 5 5 ـــ ـــ ـــ

PrepaidCardRechargingServices ـــ 4 4 5 2 1 ـــ

Network Operations Centers (NOCs) ـــ 3 3 4 3 4 4

TelecomHotelServices ـــ ـــ 3 6 5 7 6

InteractiveVoiceMessageBroadcastingServices ـــ ـــ 1 ـــ ـــ ـــ ـــ

TOTAL 48 223 290 313 230 292 309

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D.2 List of Licensees

LicenseType:FixedTelecomServices(2Licenses)

1 Saudi Telecom Co. (STC)2 Etihad Atheeb Telecom Co. (GO)LicenseType:MobileTelecomServices(3Licenses)1 Saudi Telecom Co. (STC)2 Etihad Etisalat Co. (Mobily)3 MTC Saudi Arabia (Zain)LicenseType:DataServices(2Licenses)1 Integrated Telecom Co. Ltd. (ITC)2 Bayanat Al Oula Co. for Network ServicesLicenseType:InternetServices(41Licenses)1 Integrated Networks Co. (INET)2 Al-Jazirah Internet Services3 Etihad Etisalat Co. (Mobily)4 Saudi Telecom Co. (STC)5 Integrated Telecom Co. Ltd. (ITC)6 Middle East Internet Co. Ltd. (Cyberia)7 Bayanat Al Oula Co. for Network Services8 Detecon Al Saudia Co. Ltd. (Detasad)9 Gulf International Communications Co.10 Zajil International Telecom Co.11 Saudi Net Link Co.12 N.H. Al Harbi Trading Est.13 NourNet (Branch of Nour Communications Co.)14 Gulf Computer Services Co. Ltd. (SPSNET)15 International Systems Engineering Co. Ltd. (ISE)

16 Saudi Research and Publishing Co. (SRPC)17 Saudi Business Machines Ltd. (SBM)18 Arabian Internet and Communications Services Co. (AwalNet)19 MTC Saudi Arabia (Zain)20 Applied Technologies Co. Ltd.21 Perfect Presentation Co. for Commercial Services22 Seven Eyes Co. Ltd.23 Luna Space Telecommunications Co. Ltd. (Skyband)24 International Computer Co.25 Interkey Co. for Communications and Computers26 P-Group Saudi Arabia Co.

27Sultan bin Abdulaziz Medical & Educational Telecommunications Program Co. Ltd. (MeduNet)

28 British Telecom Al Saudia Co. Ltd.29 Sahara Net Co. Ltd.30 Shahad Al Sahra Trading Est.31 Dawiyat Telecom Co.32 M.M. Al Esayi & A.H. Al Sawadi Group Co. Ltd.33 Network Systems Internet Services Co. (Net Network)34 Prolific Technology Est. (Branch of M.A. Al Esayi Trading Est.)35 Wideband Est.36 Embro Information Technology Est.37 Tahseeb Est. for Computer Services & Electronics38 Gulf Gaihab International Est.39 Samba Financial Group40 Etihad Atheeb Telecom Co. (GO)41 Wafai International Co. for ICT

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LicenseType:VSATServices(19Licenses)1 Saudi Telecom Co. (STC)2 Saudi Net Link Co. Ltd.3 Atlas Modern Technologies Co. for Communications4 Integrated Telecom Co. Ltd. (ITC)5 Baud Telecom Co. Ltd. (BTC Networks)6 Channel Center for Electronics7 Computer World & Technology Trading Co.8 Shahad Al Sahra Trading Est.9 Petroleum and Energy Trading Services Est. (PETSE)10 Science Network Communications Est.11 Etihad Etisalat Co. (Mobily)12 Smart Link Co. Ltd.13 Nofast Trading Co. Ltd.14 O.H. Al Faris Est. for IT & Communications15 Arabian Internet and Communications Services Co. (AwalNet)16 Luna Space Telecommunications Co. Ltd. (Skyband)17 High Capabilities Telecom Co. Ltd. (HiCap)18 Detecon Al Saudia Co. Ltd. (Detasad)19 N.H. Al Harbi Trading Est.LicenseType:GlobalMobilePersonalCommunicationServices(GMPCS) (2 Licenses)1 Thuraya Telecommunications Co.2 Farhan Trading Co. Ltd.

LicenseType:InternetServiceonAircraftLicenseType:MobileServiceonAircraftLicenseType:AutomaticVehicleLocation(AVL)Services (74 Licenses)1 Arabian Security & Safety Services Co. Ltd. (AMNCO)2 Al Rehab Equipment & Machinery Co. Ltd.3 Shahad Al Sahra Trading Est.4 NOMD Telecom & Information Technologies Co.5 Etihad Etisalat Co. (Mobily)6 Navteq Saudi Arabia Co. Ltd.7 Athar Trading Est.8 Gulf Axis Contracting Est.9 Saudi Site Technology Co. Ltd.10 Saudi Automated Fuel Trading Co.11 A.S. Al Fahad & Sons Co.12 Smart Dimensions Trading Co.13 MTC Saudi Arabia (Zain)14 HandHelds Pro Co. (HHP)15 Advanced Electronics Co. Ltd. (AECL)16 Advanced Programs Trading Co. Ltd.17 Dimension Developer Co. for IT18 Alhamrani Universal Co.19 Al Dahana International Marketing Co. Ltd.20 First Arrow Co. Ltd. For IT21 Seven Eyes Co. Ltd.22 Leader Investment Co.

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49 Digital Map Trading Est.50 Egyptian and Kuwaiti Est. for ICT51 Development Package Est. for IT52 Basmah Trading and Contracting Est.53 Safe Road Tracking Systems Est.54 Darmoja Electronics Est.55 Dynamic Arab Trading Est.56 Solan Est. for ICT57 Beam Technology Systems Est.58 Engineer Warranty Est.59 Kirra Est. for Mapping & GIS60 M.K. Al Rifai Trading Est.61 Saudi Vehicle Tracking Holding Co.62 Global Electronic Channels Service Center63 Alsari International Co.64 Al Amoudi Trading Co. Ltd.65 Observer of Modern Electronic Systems Co. Ltd.66 Al Maharat Communications and Technology Co.67 Location Solutions IT Co.68 Saudi Net Link Co. Ltd.69 Saudi Unicom Co. for Communications Technology70 Tracking Systems Est. for IT71 Arcada East Trading Est.72 Space Communications Est. for IT73 Surveillance Solutions Est. for ICT74 Hussam Future Est. for IT

23 Advanced Traffic Technology Trading Co. Ltd.24 Fleet Tracking Technologies Co.25 Tawasul Riyadh Co.26 United Middle East Financial Investment Co. Ltd.27 Technical Experts International Trading and Contracting Co.28 Future Marketing Services Co. Ltd.29 Dawaer Technologies Co.30 Zultec Fleet Management Co. Ltd.31 Abdullatif Al-Arfaj & Brothers Holding Co.32 A.L. Jameel Retail Co. Ltd.33 M.A. Al Amoudi & Partners Private Security Co. (Al Majal)34 Security System Solutions Co.35 Datastar Co.36 Hala Supply Chain Services Co.37 Branch of Arab Technical Resources Est. for Security Systems38 Branch of Cliff Summit Est.39 Branch of S.A.S. Al Amri Telecom Est.40 Fleet Systems Est. for ICT41 Abjad Technology Est. for Information Systems42 My Horizons Technology Trading Est.43 Legend Digital Computer Systems Est.44 Safe Track Est. for ICT45 Digital Plans Trading Est.46 Renewed Development Est. for ICT47 Prolific Technology Est. (Branch of M.A. Al Esayi Trading Est.)48 Useful IT Systems Est.

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LicenseType:BulkSMSServices(131Licenses)1 First Co. for IT Services2 First Gulf Contracting Co. Ltd.3 Al Khair Est. for Development and Support4 Aseer Est. for Press and Publishing5 Arabian Internet and Communications Services Co. (AwalNet)6 Arab Media and Advertising Co. Ltd.7 ARA Media and Advertising Co. Ltd.8 Asaig United Telecom Co.9 Bab International Specialized Services Co.10 House of Media Production and Distribution Co.11 Tejari Trading Co. Ltd.12 Tajseed Co. Ltd.13 Tasheel Distinguished Telecom Co. Ltd.14 Sama Telecom Co. Ltd.15 Misyan Co. Marketing Group Ltd.16 Sadeem Orbit ICT Co. Ltd.17 Future Communications Co. International18 Messaging and Data Trading Est.19 Al-Jazirah Corp. for Press, Printing & Publishing20 Golden Cave Telecom Est.21 Dana Computer Trading Est.22 Okaz Est. for Press and Publishing23 Zad IP Group Est.24 Saudi Research and Publishing Co. (SRPC)25 Arabian Co. for Science and Technology26 mHealth Co.27 Rise of Information Co.28 Lead Marketing Co. Ltd.29 Advanced Electronics Co. Ltd. (AECL)

30 First Co. for Science and Technology31 Shining Ink Co. Ltd.32 Intigral Co. Ltd.33 Smart SMS Co. for ICT34 Al-Elm Information Security Co.35 Seven Eyes Co. Ltd.36 Al Fifa Contracting Co.37 Mobilink Co. Ltd.38 Added Value Co.39 Electronic Concepts Co. Ltd.40 Arabian Advanced Systems Co.41 Emissions Technology Co.42 Mobile IT Co. Ltd.43 Iteligent Technology Co. Ltd.44 Tech Sup Marketing Co.45 Start IT Solutions Co.46 Optimal Technology Solutions Co.47 Mobile Innovative Solutions Co.48 Information Streaming Co.49 Saudi Sara Good News 4 Me Co.50 Sara Telecom Co.51 Sarmad Trading Co.52 SAB Communications Co. Ltd.53 F.A. Al Hokair and Co.54 Saudi Link Co.55 Saudi Castana Co. for ICT56 Saudi Pearl Co. for Construction, Building and Road Works57 Technology Touches Telecom Co.58 M.M. Al Esayi & A.H. Al Sawadi Group Co. Ltd.59 Marhab Saudi Telecom Co.

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60 Arabic Stars Co.61 NOMD Telecom & Information Technologies Co.62 Wisam Union Trading Co.

63Ola  Majed  (Branch  of  Rawabi  Majed  International  Co.  for Production and Distribution)

64 Branch of Egyptian Internet Network Co.65 Branch of Good Hills Est. for Business66 Contact Systems Est. for IT67 RKe Technology Est.68 Essmi Trading Est.69 Mobile Business Est. for ICT70 Added Values Communications Est.71 Interactive Media Est.72 Electronic Horizons Est. for ICT73 Golden Strings Trading Est.74 Technological Development Trading Est.75 Ninth Generation Est. for ICT76 Added Services Trading Est.77 Networking Trading Est.78 Network Model Trading Est.79 Technical Data Trading Est.80 Technical Computer Systems Est.81 Multimedia Communications Est.82 Command Trading Est.83 Business Proliferation Trading Est.84 Bin Samar Contracting Est.85 Technical Data Trading Est.86 Ideal Services Implementation Trading Est.87 Connectivity Services Trading Est.88 Links Line IT Est.

89 Speed Link Trading Est.90 Roazin International Trading Est.91 Digital Angles Est. for IT92 Ringing Echo Est. for ICT93 A.A. Al Mousa Trading Est.94 A.M. Al Othman Trading Est.95 Fana International Communications Est.96 Art Vision Trading Est.97 F. A. Al Othaim Est. for ICT Services98 F.A.Y. Al Janaie Trading Est.99 Rock Village Technology Est. (Branch of M.I.Z. Bundagji Est.)100 Information Tops Trading Est.101 Leaders Est. for Trading and IT102 Winner Trading Est.103 Condor Technical Services Est.104 M.A.I. Ashour Trading Est.105 Future Extent Trading Est.106 Technical Facilities Trading Est.107 Audio, Video and Text Est.108 Makkah Print and Media Est.109 Maktoobi Messaging Est. for ICT110 M.S. Al Shalahi Al Mutairi Est. for ICT111 Software Club Trading Est.112 Smart Call Trading Est.113 Whispering Sun Est. for ICT114 Arabian National Co. for Supplies and Equipment Ltd.115 Ajna Co. for ICT116 Ideal Trading and Investment Co.117 Middle East Internet Co. Ltd. (Cyberia)118 Perfect Presentation Co. for Commercial Services

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119 Tawasul Telecom Co. Ltd.120 Tim Wei Co. of Saudi Arabia121 GHRRA Telecom Co.122 Ferrada ICT Co.123 Branch of Third Millennium International Investment Co.124 Branch of Global Eye Est. for Production and Distribution125 Al Thakkar Trading Est.126 News and Information Est. for Electronic Publishing127 Gulf Data Est. for IT128 House of Invention International Trading Est.129 Technology Directory Est. for ICT130 New Sky Est. for IT131 L.M. Nassis Est. for ITLicenseType:AudioText(700)Services(5Licenses)1 Sama Telecom Co. Ltd.2 Electronic Resources Co. Ltd.3 Tasheel Distinguished Telecom Co. Ltd.4 Saudi Pearl Co. for Construction, Building and Road Works5 Rock Village Technology Est. (Branch of M.I.Z. Bundagji Est.)LicenseType:CallCenterServices(20Licenses)1 National Co. for Business Solutions2 International Contact Marketing Services Co.3 Bright Gulf Mobile Services Co. Ltd.4 Al Khaleej Training and Education Co.5 mHealth Co.6 Excellent Solutions Trading Co.7 Al-Khaleej Computers and Electronic Systems Co. Ltd.8 Telephone Care Co.

9 Excellent Call Communications Co.10 Emissions Technology Co.11 Tech Sup Marketing Co.12 Ringing Sound Telecom Co. Ltd.13 Shas Trading and Maintenance Co.14 Contact Center Co.15 Medical Call Center Co. Ltd.16 Al Hayat Call Center Co. for ICT

17Branch of Al Musanadah Support Services and Call Center Co. Ltd.

18 Comprehensive Computer Information Est.19 Business Proliferation Trading Est.20 Perfect Presentation Co. for Commercial ServicesLicenseType:ElectronicWalletServicesLicenseType:PrepaidCardRechargingServicesLicense Type: Network Operations Centers (NOCs) (4 Licenses)1 Integrated Networks Co. (INET)2 International Electronics Telecom Co.3 Detecon Al Saudia Co. Ltd. (Detasad)4 British Telecom Al Saudia Co. Ltd.LicenseType:InteractiveVoiceMessageBroadcastingServicesLicenseType:TelecomHotelServices(6Licenses)1 Dhaweyat Telecom Co.2 International Electronic Communications Co.3 NourNet (Branch of Nour Communications Co.)4 Gulfnet International Telecom Co.5 Unicom Arabia Communication Technology and Software Co.6 O.H. Al Faris Est. for IT & Communications

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Appendix E: CITC Websites

www.citc.gov.sa(1) Main CITC website

www.cert.gov.sa(2) National Center for Information Security (CERT-SA)

www.internet.gov.sa(3)SaudiInternetserviceportal

www.nic.net.sa(4) Saudi Network Information Center

www.ncis.org.sa(5) National Committee for Information Society

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Appendix F: Code of Ethics and Professional Conduct     Employees of CITC shall:

�� Respect the rights of all stakeholders who interact with CITC and deal with them courteously, fairly and impartially.�� Refrain from any actions, dealings or work activities which are considered improper or are seen as inconsistent with moral and 

honorable conduct.�� Not accept or request any gifts, compensation, invitations or other benefits of any kind from parties who have a direct or indirect 

business relationship with CITC.�� Not directly or indirectly exploit 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.�� Refrain from any action that might lead to preferential treatment of persons or entities involved with CITC or might negatively 

impact the reputation of CITC.�� Avoid establishing personal working relationships with people, establishments or companies whose self-interest is linked to CITC decisions, and refrain from offering advice or revealing information which is not publicly available and which might provide unfair advantage to any party.�� Not reveal confidential information obtained during the exercise of their duties, whether verbally, in writing or electronically. �� Not, either directly or indirectly, exploit or utilize information, which is obtained during the course of employment at CITC and which is not publicly available, for personal gain or for the benefit or harm of others. �� Not get involved in any business or undertake any 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. 

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 Appendix G: CITC Financial Accounts

Descriptions 31 Dec 2012

(audited) SAR (000)

31 Dec 2013 (not audited)

SAR (000)

Revenues:CommercialServices ProvisioningFees 4,407,545 5,045,202

License Fees 428,767 382,191

Spectrum Usage Fees 2,505,561 1,590,508

OtherRevenues 78,862 63,822

TotalRevenues 7,420,735 7,081,723

Expenditures:

Employee Costs 186,117 185,020GeneralandAdministrative Expenditures 55,215 66,724

Consulting 39,363 7,792

IT Systems and Software 9,015 1,959

Capital Expenditures 92,863 329,298

Total Expenditures 382,573 590,793

NET REVENUES (Surplus) 7,038,162 6,490,930

Note: The Surplus (Revenues minus Expenditures) is turned over to the Public Treasury.

info@citc.gov.sa www.citc.gov.sa

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