saudi citc it report 2012
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Custodian of the Two Holy MosquesKing Abdullah Bin Abdulaziz Al Saud
His Royal HighnessSalman Bin Abdulaziz Al Saud
Crown Prince & Deputy Prime MinisterMinister of Defense
His Royal HighnessMeqran Bin Abdulaziz Al SaudSecond Deputy Prime Minister
8Annual Report 2012
9Table of Contents
CHAIRMANS STATEMENT 12
GOVERNORS STATEMENT 14
1. EXECUTIVE SUMMARY 16
2. THE ICT SECTOR IN THE KINGDOM OF SAUDI ARABIA 19
2.1 Sector Growth and Indicators 19
2.2 Regulatory Framework 27
2.3 CITCRolesandResponsibilities 27
2.4 Motah Award 28
3. THE CITC BOARD OF DIRECTORS 29
4. VISION AND MISSION 31
5. CURRENT SITUATION 32
6. MAIN ACTIVITIES AND ACHIEVEMENTS 36
6.3 Management of Scarce Resources 45
6.4 Regulatory Environment and Transparency 47
6.5 Other Achievements 48
7. UNIVERSAL SERVICE FUND (USF) 49
8. STUDIES 60
9. ACCOMPLISHMENTS COMPARED TO THE KINGDOMS NINTH DEVELOPMENT PLAN
10. WORK PROGRAM FOR 2013 68
Appendix A: Decisions of the Board of Directors 70
Appendix E: Licenses Issued 81
Appendix F: CITC Websites 90
Appendix G: Code of Ethics and Professional Conduc 91
Appendix H: CITC Financial Accounts 92
Annual Report 2012
CITC Board of Directors
The CITC Board of Directors
H.E. Eng.Mohammed J. Mulla
Mr. Fahad A. Al Dakkan Ministry of Finance
H.E. Eng.Abdullah A. Al Darrab
CITC Governor Deputy Chairman
Dr.Mohammed A. Suwailem
Mr.Ahmed A. Alabdelaali
Ministry of Trade and IndustryMember
Dr.Asaad S. AbdoPrivate Sector
Mr.Abdulrahman S. AlShammari
Private Sector Member
Mr.Saleh E. Al-Hosaini
Private Sector Member
Chairmans StatementThe information and communications technology (ICT) sector has evolved signifi-cantly during the period of the Eighth and Ninth Development Plans, especially in the areas of ICT market liberalization, promoting and fostering competition, availability and range of services, and improved efficiency of the ICT infrastructure. Moreover, it has been shown that the deployment and availabil-ity of high-quality ICT services at reasonable prices is a significant factor in enabling de-veloping economies to attain higher levels of development. They promote economic and social transformation, stimulate efficiency in all areas of production and service, and are important to achieving a knowledge-based economy and information society.
Aware of these facts, the Government of the Custodian of the Two Holy Mosques may God protect him has provided ongoing sup-port for the continuing deployment of ICT services in all parts of the Kingdom, both through overall support of the ICT sector and through a policy of universal access and uni-versal service in remote areas.
The 2012 Global Information Technology Re-port issued by the World Economic Forum and INSEAD ranked the Kingdom as 34th in the global network readiness index, improv-ing from 38th in the previous year. Saudi Arabia also ranked 17th in the global indica-tor for policy and regulatory environment, improving from 32nd in the previous year. These rankings suggest continuous progress in the ICT sector in the Kingdom.
Annual Report 2012
The Communications and Information Technology Com-mission (CITC) has worked diligently since its inception for the advancement of the ICT sector, notably in devel-oping the regulatory tools needed to ensure fair com-petition, safeguarding the rights of users, addressing complaints, resolving disputes between licensed service providers, enforcing quality of service criteria, under-taking initiatives in all areas of ICT, promoting cyber se-curity, preparing plans for the development of Internet services in the Kingdom, and conducting technical and economic studies to further the development of this im-portant sector.
Although this period has seen a remarkable increase in the availability and range of most ICT services, more ef-fort is required to deploy high-speed broadband services through fiber optic networks as they are an important
means to access government services, such as health and education, and they will also have a significant impact on other economic sectors and on the national economy.
I am pleased, on behalf of the Board of Directors, to in-troduce the 2012 Annual Report which reviews the major activities and accomplishments of CITC during the year.
I wish to take this opportunity to thank the members of the Board, H.E. the Governor of CITC and all CITC staff for their superb efforts. May God preserve our beloved country, led by the Custodian of the Two Holy Mosques may God protect him and continue to bless us and guide us in all our endeavors.
Eng. Mohamed Jamil A. Mulla Chairman of the Board
Governors StatementThe information and communications tech-nology (ICT) sector is one of the most important and dynamic sectors because it contributes to sus-tainable development in all scientific, cultural and social areas. It has a positive impact on the gen-eral population as well as a tangible impact on in-creasing productivity and growth in all other eco-nomic sectors through applications that enhance business performance. Based on these facts, the Government of Saudi Arabia, led by the Custodian of the Two Holy Mosques may God protect him has supported the ICT sector as a vital compo-nent of the national economy, not only for its core contributions in the areas of employment and economic diversification, but also for its dynamic and innovative ability to provide extensive forms of products, services and enabling technologies that underpin the development of the Kingdom as a knowledge-based economy in the world market.
Since its launch, the ICT sector, with Gods help and guidance and thanks to the continued support of the Government, has achieved impressive growth in infrastructure and in deployment and availabil-
ity of technology and services. The ICT sector has become a key component in the development of all other sectors as a catalyst for increased efficien-cy and performance.
It should be noted that spending on ICT services reached an estimated SAR 94 billion in 2012 com-pared to SAR 21 billion in 2002, an average annual growth rate of about 16%. This indicates that all segments of Saudi society individuals, the pri-vate sector and government have contributed to and benefited from the significant development in this important sector.
The Communications and Information Technology Commission (CITC), which regulates the sector, has implemented many projects and activities related to ICT to further advance this vital sector in 2012.
To promote competition and provisioning of ser-vices, CITC issued a number of new licenses bring-ing the total to 292 at the end of 2012 compared to 230 in 2011.
To improve the level of ICT services, reduce prices and improve customer care, and foster competi-
Annual Report 2012
tion and attract investment, CITC has studied the develop-ment of the mobile services market in the Kingdom. The study found a need to enlarge the retail and wholesale sales struc-ture in the mobile services market by issuing new licenses for mobile virtual network operators (MVNOs). This will result in improved customer care, more customer choice, innova-tive services bundles and greater competition at the retail sales level. Accordingly, CITC has taken concrete steps in this direction including drafting an MVNO license, preparing the regulatory framework, and developing eligibility and selec-tion criteria for applicants. It is expected that MVNO licenses will be issued in 2013.
Consumer protection is an important element in the devel-opment of the ICT sector and CITC has implemented a num-ber of measures to enable consumers to exercise their rights and responsibilities. CITC processed 15,519 complaints in 2012, drafted procedures for dealing with consumer com-plaints, drafted guidelines for service providers to address complaints, and prepared an integrated plan to develop a system for handling complaints aimed at achieving the high-est level of customer satisfaction. In addition, CITC applied international best practices for regulating tariffs for all opera-tors and for developing specific procedures for dealing with the provision of services and promotional offers. CITC also
established an automated system for receiving and follow-ing up complaints and launched several campaigns to raise public awareness among users.
Voice and broadband Internet services have been provided to 3,421 communities in remote areas which are commer-cially unprofitable. Two more projects have been awarded covering 690 communities, and additional projects will be tendered in 2013 covering a further 3,417 communities.
And, as a result of its efforts to develop the sector, and its pursuit of excellence and leadership, CITC won first place in the Motah award sponsored by King Abdulaziz City for Sci-ence and Technology (KACST) for using open source software in providing Saudi domain name services and related infra-structure.
I wish to take this opportunity to thank H.E. the Chairman of the Board, the Members of the Board and all CITC staff for their hard work and dedication. Thanks, also, to all those