the state of ict market development in saudi arabia...citc - ict market study (2009-2010) 7 1....

The State of ICT Market

Development in Saudi Arabia

Online, Field Work (x3) & Interviews: 2009 - 2010

© The Kingdom of Saudi Arabia 2010

This work is copyright. Prepared for the Communications and Information Technology Commission (CITC). Apart from any use as

permitted under the Saudi Arabia’s Laws and Regulations, no part may be reproduced by any process without prior written

permission from the Communications and Information Technology Commission. Requests and inquiries concerning reproduction and

rights should be addressed to the General Manager, Public and International Relations, Communications and Information Technology

Commission, PO Box 75606, Riyadh 11588, Saudi Arabia.

This report does not represent the views of the Communications and Information Technology Commission. Any direct or indirect

interpretations implied through the report are solely of the authors. All data and information presented in the report represent the

views of the various consumer segments and opinions of ICT Stakeholders in Saudi Arabia.

Riyadh, Saudi Arabia

CITC - ICT Market Study (2009-2010)

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Table of Contents 1. Executive Summary ...................................................................................7

1.1 Target Audience ..................................................................................................................................... 7

1.2 Guidelines to Reader ............................................................................................................................. 7

1.3 About the Communications and Information Technology Commission (CITC) ............................... 8

2. Survey Findings – Individuals & Households ........................................... 12

2.1 Respondent Ratings System ........................................................................................ 12

2.2 Field & Online Surveys Market Findings ..................................................................... 13

2.3 Individual/Household respondent profile and demographics .................................... 13

2.4 Public Awareness of CITC ............................................................................................ 14

2.4.1 Public Awareness of CITC and its roles .............................................................................................. 14

2.5 Mobile Services............................................................................................................ 15

2.5.1 Average Mobile Lines per Household ................................................................................................ 15

2.5.2 Number of Personal Mobile Lines used by Individuals .................................................................... 16

2.5.3 Reasons Behind Having Multiple Lines ............................................................................................. 17

2.5.4 Awareness of Mobile Number Portability (MNP) & Consideration for Changing Mobile Operator

18

2.5.5 Reasons for Changing the Mobile Operator ....................................................................................... 19

2.5.6 Rating the Mobile Services‟ Quality ................................................................................................... 20

2.5.7 Rating the Mobile Services‟ Prices...................................................................................................... 21

2.5.8 Frequency of Changing Mobile Handsets .......................................................................................... 22

2.6 3G Services ................................................................................................................. 22

2.6.1 Awareness and Usage of 3G Services ................................................................................................. 22

2.6.2 3G Services Usage ................................................................................................................................ 23

2.6.3 Reasons for Not Using 3G Services .................................................................................................... 25

2.6.4 Rating 3G Services‟ Quality ................................................................................................................. 26

2.6.5 Rating 3G services‟ Prices ................................................................................................................... 27

2.6.6 Annual Expenditure on Mobile Telecom Services ............................................................................. 28

2.7 Internet Services through Mobile Networks ............................................................... 29

2.7.1 Internet Through Mobile Telecom Services ....................................................................................... 29

2.8 Fixed Telephone Services ........................................................................................... 32

2.8.1 Fixed Line Household Penetration ..................................................................................................... 32

2.8.2 Number of Fixed Lines Per Household .............................................................................................. 32

2.8.3 Rating Quality of Fixed Line Services ................................................................................................ 33

2.8.4 Rating Fixed Line Services‟ Prices ...................................................................................................... 34

2.8.5 Annual Household Expenditure on Fixed Line Services ................................................................... 35


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2.9 Computers and Software ............................................................................................ 36

2.9.1 Household Personal Computer Penetration ...................................................................................... 36

2.9.2 Number of Desktops and or Laptops owned by households ............................................................. 36

2.9.3 Frequency period of changing Desktop or Laptop computer ........................................................... 37

2.9.4 Annual Household‟s and Personal Expenditure on Computer Equipment, Software and

Accessories ....................................................................................................................................................... 38

2.9.5 Percentage of individuals who use computers ................................................................................... 39

2.10 Household Broadband Internet Subscription ............................................................ 39

2.10.1 Household Internet Penetration and Internet Technologies Used .................................................. 39

2.10.2 Households Usage of Wireless Routers.............................................................................................. 40

2.10.3 Number of Computers in the Household that Share the Same Internet Connection ...................... 40

2.10.4 Households Sharing the Internet Connection With Other Households .......................................... 41

2.10.5 Current & Planned Average Speed of Household Internet Subscriptions ....................................... 42

2.10.6 Reasons for households planning to increase Internet speed .......................................................... 43

2.10.7 Rating of the price of Internet provided to household ...................................................................... 44

2.10.8 Annual Household Expenditure for Broadband Internet Service .................................................... 45

2.10.9 Rating the Quality of Broadband Internet Services........................................................................... 46

2.10.10 Rating Broadband Internet Services‟ Prices ..................................................................................... 47

2.11 Individual/Household Bundled Services .................................................................... 48

2.11.1 Satisfaction level with bundled services ............................................................................................. 48

2.11.2 Services that might be considered with a bundled service offer ....................................................... 49

2.12 Personal Web Pages ................................................................................................... 49

2.12.1 Individuals Owning or Managing Websites & Domain Names ........................................................ 49

2.13 Electronic Services ...................................................................................................... 51

2.13.1 Usage of ICT-based Payment Methods .............................................................................................. 51

2.13.2 Internet payment methods used by individuals ................................................................................ 52

2.13.3 Individuals Buying Products Online .................................................................................................. 53

2.13.4 Types of Products Paid for Using ICT-Based Payment Methods ..................................................... 54

2.13.5 Local & international websites that individuals seek to buy products over the internet ................ 55

2.13.6 Developments needs of local e-commerce websites used by individuals ......................................... 56

2.14 Electronic Banking ...................................................................................................... 57

2.14.1 Individual ownership of a bank account ............................................................................................ 57

2.14.2 Online Banking Services ..................................................................................................................... 57

2.14.3 Rating E-Banking Services‟ Quality .................................................................................................... 58

2.15 Pay Television Services ............................................................................................... 59

2.15.1 Individuals Watching Satellite TV Channels ..................................................................................... 59

2.15.2 Individuals Watching Satellite Pay TV Channels .............................................................................. 59

2.15.3 Individuals Subscribed to Pay TV services ........................................................................................ 60


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2.15.4 Video on Demand (VoD) Usage by Individuals Who are Subscribed to Pay-TV Services .............. 60

2.15.5 Program/Movies Orders Per Month by VoD Users ........................................................................... 61

2.16 Future Services ........................................................................................................... 62

2.16.1 Future Services Awareness and interest levels .................................................................................. 62

2.16.2 62

2.17 Complaints Handling .................................................................................................. 63

2.17.1 Types of Complaints Against Service Providers ................................................................................ 63

2.17.2 To whom were complaints about Service Providers reported .......................................................... 64

2.17.3 How Complaints Against Service Providers were Handled .............................................................. 64

2.17.4 Awareness of CITC customer complaints regulations ....................................................................... 65

3. Survey Findings - Establishments ........................................................... 66

3.1 Establishment Profile and Demographics .................................................................. 66

3.1.1 Establishments Sample Structure ...................................................................................................... 66

3.1.2 Establishments‟ Profile: ...................................................................................................................... 67

3.2 Public Awareness of CITC & Its Role (Est.) ..................................................................67

3.2.1 Establishments' Awareness of CITC and its Role .............................................................................. 67

3.3 Mobile Services........................................................................................................... 68

3.3.1 Mobile Allowances Offered by Establishments to employees ........................................................... 68

3.3.2 Consideration of Changing Mobile Service Provider and Reasons .................................................. 69

3.3.3 Reasons that keep establishment with its current mobile operator ................................................. 71

3.3.4 Rating Mobile Services‟ Quality (across all service providers) ......................................................... 71

3.3.5 Rating Mobiles Services prices (Consolidated) ................................................................................. 72

3.3.6 Usage, Quality & Prices of PMR, GMPCS and GPS Services ............................................................ 73

3.3.7 Establishments‟ Annual Expenditure on Fixed & Mobile Services .................................................. 74

3.4 Wireless Technologies Usage....................................................................................... 75

3.5 Fixed Telephone Services ............................................................................................ 75

3.5.1 Number of Fixed Lines Used Per Establishment Segment ............................................................... 75

3.5.2 Rating Quality and Prices of Fixed Line Services .............................................................................. 76

3.5.3 PBX Usage and Type of Used PBX ..................................................................................................... 78

3.5.4 Establishments‟ Call Center Experience ............................................................................................ 79

3.6 Computers, Servers and Software .............................................................................. 80

3.6.1 Establishments‟ Computer Penetration & Types of Servers Used .................................................. 80

3.6.2 Types of Software Used ....................................................................................................................... 81

3.7 Establishment Networks ............................................................................................ 82

3.7.1 Utilization of LAN and WAN Technologies ....................................................................................... 82

3.7.2 VPN Services and Remote Access ....................................................................................................... 83

3.7.3 Establishments providing Wi-Fi service for the public ..................................................................... 84


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3.8 Internet and e-Services ............................................................................................... 85

3.8.1 Internet & Broadband Penetration ..................................................................................................... 85

3.8.2 Reasons for not having internet broadband ...................................................................................... 86

3.8.3 Public and Private Establishments first contact with the Internet ................................................... 87

3.8.4 Establishments‟ average current & planned Internet speeds ...........................................................88

3.8.5 Internet and e-Services ....................................................................................................................... 89

3.8.6 Rating Internet Services‟ Prices .......................................................................................................... 90

3.8.7 Rating Internet Services‟ Quality ........................................................................................................ 91

3.8.8 Establishments Annual Expenditure on Broadband Internet Services ........................................... 92

3.9 SME, L&VL and Government Websites ...................................................................... 93

3.9.1 Presence of Websites ........................................................................................................................... 93

3.9.2 Establishments reasons for not owning website ............................................................................... 93

3.9.3 Establishments Websites Hosting Location ...................................................................................... 94

3.9.4 Usage of Local & Generic Domains for Websites .............................................................................. 95

3.9.5 Establishments reasons for not owning website ............................................................................... 95

3.9.6 Advertising Methods Used by Establishments .................................................................................. 98

3.10 e-Banking ................................................................................................................... 98

3.10.1 ICT Payment Methods Used by Establishments ............................................................................... 98

3.10.2 Establishments use of internet payment methods ............................................................................ 99

3.10.3 Establishments‟ Usage of Online Banking ....................................................................................... 103

3.11 ICT Expenditure ........................................................................................................ 104

3.11.1 Establishments' Annual ICT Expenditure For Investigated ICT Services & Products .................. 104

3.12 Bundled Services ....................................................................................................... 106

3.12.1 Satisfaction levels, reasons and aspired service bundles ................................................................ 106

3.13 Special Services ........................................................................................................ 108

3.13.1 Penetration of Special Services at Establishments .......................................................................... 108

3.14 Issues and Complaint Handling ................................................................................. 109

3.14.1 Issues with Service Providers and Destination of Complaints ....................................................... 109

3.14.2 How Complaints Against Service Providers were Handled ............................................................ 110

3.15 Investment ................................................................................................................. 111

3.16 Research and Development Expenditure .................................................................. 112

3.16.1 Spending on Research and Development (R&D) ............................................................................. 112

3.17 Research Collaboration with Universities ................................................................. 115

3.18 ICT Promotion ........................................................................................................... 116

3.18.1 ICT Promotion Initiatives Provided by Establishments................................................................... 116

4. Survey Findings - ICT Services and Technology Suppliers ....................... 117

4.1 ICT Services and Technology Supplier Profile & Activities ........................................ 118


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4.1.1 ICT Services And Technology Supplier Profiles ...............................................................................118

4.1.2 ICT Services and Technology Suppliers Lines of Activity ................................................................ 119

4.1.3 Company Registration Procedure Efficiency ................................................................................... 120

4.2 Awareness of CITC and its Role ................................................................................. 120

4.3 Marketing, Sales & Growth Activities ........................................................................ 121

4.3.1 ICT Services and Technology Suppliers products and services promotion activities .................... 121

4.3.2 Market Penetration and Growth Strategies ..................................................................................... 123

4.3.3 Marketing budgets ............................................................................................................................. 124

4.4 Consumer Needs and Demand Analysis .................................................................... 125

4.4.1 ICT products and services needs & demand analysis ...................................................................... 125

4.4.2 Products & Services Growth/Decrease Expectations ...................................................................... 127

4.5 Initiatives to Increase Adoption & Usage ................................................................... 127

4.5.1 ICT Products and Services Initiatives .............................................................................................. 127

4.5.2 Financial Facilities To Customers .................................................................................................... 129

4.5.3 Consumer Training Strategies .......................................................................................................... 130

4.6 Effectiveness of the IP protection laws in KSA .......................................................... 130

4.6.1 Rating Regulatory Performance ........................................................................................................ 131

4.6.2 Implementation Channel for Solutions ............................................................................................ 132

4.7 Products/Services Life Cycle Forecast ....................................................................... 133

4.8 Adoption forecast for the short term ......................................................................... 134

4.9 Research and Development Activities ....................................................................... 134

4.10 Growth Forecasts ...................................................................................................... 135

5. Service Provider Interviews - Current and Future Services .................... 136

5.1 Current ICT Services ................................................................................................. 136

5.2 Future ICT Services ................................................................................................... 137

5.2.1 List of Future ICT Services ................................................................................................................ 137

6. Further Reading..................................................................................... 138

7. Thank You Letter ................................................................................... 139


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1. Executive Summary

The key objective of this study is to support the development of market driven regulations, policies and ICT

initiatives.1 To date it is the most comprehensive survey report on the state of ICT growth and development in

the Kingdom of Saudi Arabia. This report is a consolidation of a number of qualitative and quantitative

research projects and activities conducted on the Kingdom of Saudi Arabia‟s Information and Communication

Technologies (ICT) sector, it covers key supply side stakeholders and numerous demand side consumers

spanning individuals/households, private and public sector establishments.

1.1 Target Audience

1. Leaders or professionals working actively in the KSA ICT sector

2. Knowledge economy teachers and students

3. ICT products, services and solutions manufacturers/wholesalers/resellers

4. Existing/Prospective license holders for Telecommunication/IT/Media Broadcasting Services

5. ICT Investors

1.2 Guidelines to Reader

While reviewing this report we encourage our readers to look for clues on how ICT products, services and

solutions can help you in your personal and business community. Countless number of opportunities exists to

increase your personal and establishment‟s productivity, employee‟s satisfaction, reduce costs, and generate

new valued added services or sales through the use of ICT products, services and solutions. Whether you‟re an

individual or an establishment, with the rapid development of Saudi Arabia‟s Information and Knowledge

Economies it is essential for you to develop your own understanding of the benefits of ICT to remain

competitive on a national and global level.

Embracing technology for competitiveness and profitability is not a new venture in the Arab World.

Knowledgeable readers upon revisiting the rich Arab world history will no doubt see the many benefits

brought about by the effective and efficient use of technologies of the time i.e. telescopes, measuring tools,

maps and ships. Therefore in the spirit of past and future successes we encourage all readers to share their

1Initially, the Market Studies Department considered naming the research “Wave 3”. Comparison of past and current market dynamics, ICT indicators and the broader project requirements required reengineering the previous methodology to introduce additional qualitative and quantitative components. Hence resulting in title for the research and corresponding report findings. In essence the report is measuring the “ICT pulse” in the Kingdom of Saudi Arabia.


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knowledge, experience and individual benefits gained through the use of ICT products/services and solutions

within their personal and professional life‟s and networks.

As one of the first comprehensive market studies for the Saudi Arabia Information and Telecommunications

Market all readers of this ICT Market Study Report will no doubt gain useful data, information and generate

their own insights to use within both personal and business lives Insha‟Allah.

Important note: any direct or indirect interpretations that may be implied through the report are solely of the

authors and not of the CITC. All data and information collected in 2009 and 2010 presented in the report

represent only the opinions and perceptions of the various consumer segments and opinions of ICT

Stakeholders in Saudi Arabia.

Furthermore, on behalf of CITC, the market studies department thanks all respondents and participants for

sharing their experiences and feedback over the course of the research planning and data collection phases. If

you have any comments or suggestions helpful in improving the usefulness of this and future reports please

contact us through [email protected].

1.3 About the Communications and Information Technology Commission (CITC)

The Telecom Act was approved in 2001, and the Telecommunications Bylaw was later issued in the year 2002.

Since then, Saudi Arabia‟s Information & Communications Technology (ICT) market witnessed a number of

significant developments which CITC is striving to protect and grow through balanced, fair and sustainable

regulatory practices and initiatives. Early market reforms and liberalization activities resulted in the licensing

of the incumbent Saudi Telecom Company (STC), its corporatization process as well as the liberalization of

some services such as VSAT and data. By 2004, the liberalization of mobile and data markets through the

licensing of new entrants resulted in the introduction of competition to the sector. By 2006, CITC smoothly

transitioned its regulatory framework from technology specific to a technology neutral regime continuing

however its service specific boundaries. In 2007, the fixed-line market was liberalized, and various regulatory

frameworks were developed through open public consultation processes designed to probe the rapidly

evolving market needs. In 2008 alongside the updated National Frequency Plan a number of Fixed Services

were issued as part of the liberalization process.

mailto:[email protected]


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Figure 1: ICT Regulatory Decisions Time-line

Expanding the scope of previous market research activities concluded in 2005, CITC in 2009 embarked on a

comprehensive ICT Market Study to gauge the „pulse‟ and needs of ICT Industry. The study‟s conclusions are

intended to serve as CITC‟s prime input for its continuous regulatory reforms, initiatives and facilitate KSA on

its journey to an Information Society & Knowledge Economy2. Any proposed initiatives or reforms will be

evaluated through scientific methods focusing on the market needs to create the appropriate level of

competitiveness, yield affordable, high quality and innovative services in line with international standards.

The Market Research efforts discussed in this report are part of a program of projects undertaken by CITC

called “ICT Market Study Project”. The aim is to study the current status of KSA ICT supply, adoption and

usage of ICT services in addition to the CITC rules and regulations‟ impact on the sector in terms of promoting

existing and new services, sector investments, and needed or associated regulatory reforms.

The Household/Individuals Field Survey; provided valuable market insights. Mobile penetration rate

reached 132%3. The field and online survey indicated that although still „expensive‟, subscribers rated mobile

services as „very good‟. The mobile ARPU reached 182/SAR/Line. Fixed telephony household penetration

reached 68% of surveyed households. Fixed services received „excellent‟ quality rating, though their prices

were regarded as „moderate to expensive‟. The Fixed line ARPU reached 177 SAR/month/line.

Household computer penetration reached 58.1% and household internet penetration reached 53.5% of

surveyed households with DSL forming 80% of internet technologies used at homes. The survey concludes

that the average household internet speed is currently 724 Kbps with a year-on-year growth of 82%.

Subscribers rated Internet prices as „moderate to expensive‟ and the quality of offered internet as „good to very

good‟.

2 For further information see National Information & Communication Technologies Plan –www.mcit.gov.sa 3 Visit CITC website for the latest figures available in ICT Quarterly Indicators Report – www.citc.gov.sa


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Based on rapidly growing internet user penetration rates (see previous CITC Quarterly Indicator Reports),

alongside the field survey CITC for the first time conducted The Online Household/Individual Survey.

The main purpose was to determine or identify the varying awareness, needs, demands, adoption and usage

levels across both field and online individual/household respondents. Based on the comparison of results

across both field and online surveys strong evidence suggests the online users have greater ICT Literacy levels,

understand the benefits ICT can bring to the personal and business life, have greater appetite for new

products and services, are more inclined to use electronic transactions, self help and value added services

provided over fixed, mobile and internet.

The Establishments Survey investigated several business segments from SOHO, Small and Medium size

establishments (SME), Large, Very Large (L&VL) private establishments to Governmental (Gov)

establishment‟s usage and adoption of ICT services. All establishments rated the fixed services‟ quality as

„excellent‟, nonetheless rated the prices as „expensive‟. SMEs, L&VL, and governmental establishments‟

expenditure on fixed services reached 7654 SAR/year, 80607 SAR/year and 262202 SAR/year respectively.

26.6%, 78%, and 79% of all software used in SMEs, L&VL and governmental establishments respectively

utilize Arabic language.

39.6% of SMEs, 90.8% of L&VL and 92.5% of governmental establishments use the internet. While the

average internet speed of SMEs stands at 650 Kbps, speed at L&VL and governmental establishments are

estimated at 1.76 Mbps and 7.54 Mbps respectively. SMEs and L&VL establishments rated internet services as

„Expensive‟, while the Governmental establishments rated them as „Very Expensive‟.

A comprehensive Service Providers Survey was conducted to identify the current services which were

found to be aligned with the international service provisions for wholesale, business and consumer sectors in

KSA. The study investigated new services planned for introduction in the KSA market including new-

technology based services designed to utilize improved Worldwide Interoperability for Microwave Access

(WiMAX), Long Term Evolution (LTE) and fiber optic technologies.

Earlier market research activities conducted by CITC were designed to focus on consumers and telecom

operators. Taking into consideration the rapidly evolving domestic and international ICT market landscape,

the enabling role of large ICT Services and Technologies Suppliers within the ICT value chain the project was

re-scoped to ensure all key stakeholder contributing to the efficiency of the industry be included.

The ICT Services and Technology Suppliers Survey observed that 62% of the respondents provide

„Software integration/Business solutions‟, „Consultancy services‟, „Maintenance & asset management services‟

and „Telecom core integration/solutions‟.. The average marketing budget, as percentage of total revenue, has

reached 4.1% in 2009.


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Most of the interviewed ICT services and technologies listed initiatives aimed to increase the ICT products and

services professional awareness and usage across their various customers segments. However, only few

presented successful initiatives helping increase the ICT usage across various employee and society segments.

Only 30% of ICT services and technologies offer financial facilities to their customers. 77% of the interviewed

establishments own local training centers for products and services, and 62% provide online training. On the

job training of university/vocational appears to be low as ICT services and technologies only enroll on average

9 such students a year. However based on feedback the enrollment number is expected to double in 2012.


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2. Survey Findings – Individuals & Households

The following sub-sections detail the major findings gathered from the qualitative and quantitative research.

Section 2 summarizes the major findings of the field and online surveys for individuals and households.

Section 3 summarizes the establishments‟ findings and presents various observations relevant to SMEs, large

& very large establishments in addition to governmental agencies.

2.1 Respondent Ratings System During the field survey‟s respondents were provided with show card including similar figure to efficiently capture responses for question requiring ratings (e.g. from very unsatisfied to very satisfied, see respective footnotes for further details.

Figure 2: ICT Value Chain- Individuals & Households Consumers

Very Negative

Opinion

Very Positive

Opinion

1 2 3 4 5


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2.2 Field & Online Surveys Market Findings Section 2 summarizes the major findings from the field and online surveys with respondents representing

individuals and households.

Figure 3: ICT Value Chain- Individuals & Households Consumers

2.3 Individual/Household respondent profile and demographics

Figure 4: Respondents‟ Profiles for Field & Online Surveys


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2.4 Public Awareness of CITC

2.4.1 Public Awareness of CITC and its roles

“Do you know what the Communications and Information Technology Commission‟s role

is?” (Multiple Choice)

Figure 5: Awareness of CITC & its Role (Field & Online Surveys)

54.7% of surveyed individuals were aware of CITC, of which 53.4% indicated CITC‟s role includes regulating

the telecommunications market. These percentages indicates over 50% of the survey populations are unaware

of CITC‟s main function as telecommunications market regulator.


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2.5 Mobile Services

2.5.1 Average Mobile Lines per Household

“How many mobile lines are there in your household including yours?”

Both the field and online surveys reveal that the average number of household mobile lines is estimated at 4.6

lines per household.

Figure 6: Mobile Lines Household Penetration (Field Survey)

Figure 7: Mobile Lines Household Penetration (Online Survey)


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2.5.2 Number of Personal Mobile Lines used by Individuals

“How many mobile lines do you personally use?”

The use of multiple mobile lines among individuals has become a trend. According to the survey results more

than a quarter of respondents are using many personal mobile lines. On average =1.32 lines/Individual

(mobile penetration =132%) and 1.61 lines/Individual from the field and online survey‟s respectively.

Figure 8: Number of Personal Lines Used by Individuals (Field Survey)

Figure 9: Number of personal mobile lines used by Individuals (Online Survey)


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2.5.3 Reasons Behind Having Multiple Lines

“Why do you use more than one mobile line?”

When respondents were asked „Why do you use more than one mobile line‟, 52% of field respondents and 38%

of online respondents indicated primary reason as being „had to keep a line as people know the number‟. 47%

of respondents indicated „cost saving‟ as the second most important reason for multiple lines and 42%

indicated „separate lines for business and person use‟ was reason to have multiple mobile lines for field

respondents.

The findings show consumers tend to split between their personal and business mobile usage through

multiple mobile usage.

Figure 10: Reasons behind Having Multiple Mobile Lines (Field Survey, Multiple Choice)

Figure 11: Reasons behind Having Multiple Mobile Lines (Online Survey, Multiple Choice)


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2.5.4 Awareness of Mobile Number Portability (MNP) & Consideration for Changing Mobile Operator

“Are you aware that you can now change your mobile operator in Saudi Arabia for free

without changing your phone number (Mobile Number Portability)?”

The online respondents showed 92% awareness compared to 75% of field respondents when asked „Are you

aware that you can now change your mobile operator in Saudi Arabia for free without changing your mobile

number‟.

“Taking into account that you can keep your mobile number, would you consider changing

your mobile operator to any other existing operator in the market?”

In the same course, 75% of field respondents may do not consider changing mobile operators while 61% of

online respondents similarly do not consider changing mobile operators.

Figure 12: Awareness of Mobile Number Portability & Consideration for Changing Mobile Operator


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2.5.5 Reasons for Changing the Mobile Operator

“Why would you consider changing your mobile operator?” (Multiple Choice)

The major reason indicated by field and online respondents were mainly to receive better rates and packages

and better quality of service. More than 40% of online respondents indicated that receiving better customer

care and innovative products as important reasons for considering changing the mobile operator.

Figure 13: Reasons for Changing Mobile Operator (Field Survey, Multiple Choice)

Figure 14: Reasons for Changing Mobile Operator (Online Survey, Multiple Choice)


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Q32 “Do you use the Internet service through your mobile handset provided by your mobile

operator?”

At 56%, online survey respondents are much more inclined to use the mobile Internet services provided by

operators on their personal handheld devices compared with 11% of field survey respondents.

Figure 15: Mobile device Internet usage (Field and Online Survey)

2.5.6 Rating the Mobile Services’ Quality

“How do you rate the quality of service provider mobile services? (Consolidated figures)

Looking at the overall satisfaction rating for quality of mobile services 4.05 (very good) and 3.22 (good) was

reported from field and online respondents respectively. Online respondents gave lower ratings to mobile

services‟ quality (average 3.22), with customer care , coverage and signal strength receiving the lowest ratings.

Figure 16: Consolidated rating the Quality of Mobile Services (Field Survey4)

4 Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.

11%

89%

Field Survey

Use

Do Not Use 56%

44%

Online Survey

Use

Do Not Use

4.05 4.07 3.91 3.75 3.87 3.75 3.73 3.76

1

2

3

4

5

Overall satisfaction

Voice quality of local calls

Voice quality of international

calls

Quality of roaming service

Coverage in your area and signal strength

MMS handset Configuration

easiness

Easiness of Mobile Number

Portability

Customer Care

Rat

e (

Scal

e 1

-5)

Rating the Quality of Mobile services (Field Survey)


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Figure 17: Consolidated rating the Quality of Mobile Services (Online Survey)

2.5.7 Rating the Mobile Services’ Prices

“How do you rate the prices of service provider mobile services?”

On average across both field and online respondents rated5 prices of mobile service as „moderate to

expensive'. While the field survey participants on average rated the price at 3.39, the online respondents rated

the mobile services prices at 3.71. For both surveys, mobile calls to international destinations, mobile roaming

service and mobile internet service received moderate to expensive price ratings.

Figure 18: Individuals Rating the Prices of Mobile services (Field Survey)

5 Very Cheap, Cheap, Moderate, Expensive, Very expensive is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.

3.22 3.47 3.33 3.25 3.053.32

2.783.07

1

2

3

4

5


Voice quality of local calls

Voice quality of international

calls



MMS handset Configuration

easiness

Easiness of Mobile Number

Portability

Customer Care

Rat

e (

Scal

e 1

-5)

Rating the Quality of Mobile services (Online Survey)


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Figure 19: Individuals Rating the Prices of Mobile services (Online Survey)

2.5.8 Frequency of Changing Mobile Handsets

“How often do you change your Cellular handset?”

According to the field survey individual mobile subscribers on average change their mobile handsets every 15

months. Similarly online respondents on average change their mobile handsets every 16.4 months.

Figure 20: Frequency to Change Mobile Handsets (Field & Online Surveys)

2.6 3G Services

2.6.1 Awareness and Usage of 3G Services

“Do you know what 3G services are?” and “Which of the following 3G services do you know?”

Although 79.2% of mobile subscribers from field survey and 91.7% of mobile subscribers from online survey

know what 3G services are, 3G services usage levels are still low. Both surveys indicate video calling and high

speed internet as the most widely known 3G services.


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Figure 21: Awareness of 3G Services (Multiple Choice)

2.6.2 3G Services Usage

“Which of the following 3G services do you use?”

Across both field and online respondents Video Calling and High Speed Internet over 3G are the most used

services across all 3G Services.

Figure 22: 3G Services Usage by Mobile Subscribers (Field Survey, Multiple Choice)


24

Figure 23: 3G Services Usage by Mobile Subscribers (Online Survey, Multiple Choice)

“How often do you use the 3G service?”

Compared to traditional services the use of 3G services is minimal.. Field respondents on average indicated

using 3G services once every 3.6 days, while online respondents indicated use once every 2.1 days.

Figure 24: Frequency of 3G services usage (Field Survey)

Figure 25: Frequency of 3G services usage (Online Survey)


25

2.6.3 Reasons for Not Using 3G Services

“What are the reasons for not subscribing to 3G?” (Multiple Choice)

Approximately 84% of field respondents and 43% of online respondents‟ primary reason for not using 3G

services was because they felt no need for 3G services. At approximately 40%, the second reason for not using

3G services for both respondent types is felt to be „expensive‟.

Figure 26: Reasons for not using the 3G Services (Multiple Choice)


26

2.6.4 Rating 3G Services’ Quality

“How do you rate the Quality of service provider 3G Services?

While field respondents rated6 the 3G services‟ quality an average of 3.60 (good to very good), online

respondents gave it a lower average rating of 2.81 (fair to good).

Figure 27: Rating Quality of 3G Services (Field & Online Surveys)



27

2.6.5 Rating 3G services’ Prices

“How do you rate the prices of service provider 3G services?”

Across both respondent groups on average 3G services prices were rated between “moderate to expensive”. On

average, field and online respondents rated 3G services prices as 3.88 and 3.81 respectively.

Figure 28: Rating the Prices for 3G Services (Field & Online Surveys)


28

2.6.6 Annual Expenditure on Mobile Telecom Services

“How much did you spend over Mobile services over the past 12 months?”

For both field and online respondents who have a mobile we can see from the below figure that the majority

are spending between 500-4000 SAR on mobile services per year.

Figure 29: Annual Expenditure on Mobile Telecom Services (Filed & Online Surveys,

1% 3%

77%

14%

3% 0% 0%7% 9%

41%

14%

1% 4% 0%

Nothing Less than 500 SAR 500-4000 SAR 4,001-10,000 SAR 10,001-100000 SAR

More than 100,000 SAR

I don't know

Field Online


29

2.7 Internet Services through Mobile Networks

2.7.1 Internet Through Mobile Telecom Services

“Have you used the Internet over the past 6 months?” The surveyed field respondents 60% used internet over the last 6 months.

Figure 30: Internet Usage over the last 6 months (Field Survey)

“Have you used the Internet through mobile telecom networks over the past 6 months?” At 70%, online survey respondents used mobile Internet services provided by operators compared with 20%

of field survey respondents.

Figure 31: Internet usage through mobile telecom networks (Field and Online Survey)

“Do you have a Mobile Internet subscription that you personally use inside and outside your home?” At 87%, of field and 75% of online survey respondents do not have a Mobile Internet Subscription used inside

and outside of the home.

Figure 32: Mobile Internet Subscriptions status for use inside and outside the home (Field and Online Survey)

60%

40% Used Internet

Did Not use Internet

20%

80%

Field Survey

Use Mobile Internet

Do Not Use Mobile Internet

70%

30%

Online Survey

Use Mobile Internet

Do Not Use Mobile Internet

13%

87%

Field Survey

Have a Mobile Broadband Subscription

Do Not Have a Mobile Broadband Subscription

25%

75%

Online Survey

Have a Mobile Broadband Subscription

Do Not Have a Mobile Broadband Subscription


30

“How do you rate the Quality of Mobile broadband Internet services for your personal use inside and outside your home?” (Consolidated figures) The perceptions across various attributes for mobile broadband internet services both inside and outside the home are listed below. Overall online survey respondents were less satisfied across all service attributes compared to field survey respondents.

Figure 33 Satisfaction level across various attributes for mobile broadband internet services (Field Survey)

Figure 34 Satisfaction level across various attributes for mobile broadband internet services (Online Survey)

3.74 3.68 3.63 3.61 3.53 3.63 3.61

1.00

2.00

3.00

4.00

5.00

Overall satisfaction -

Mobile Internet

Connection Speed

Service availability (for

all times)

coverage in your area and signal

strength

Technical Support

Customer Care Voice calls over Internet

Rat

e (

Scal

e 1

-5)

Field Survey

2.72 2.59 2.42 2.59 2.42 2.56 2.51

1.00

2.00

3.00

4.00

5.00

Overall satisfaction -

Mobile Internet

Connection Speed


all times)

coverage in your area and signal

strength

Technical Support

Customer Care Voice calls over Internet

Rat

e (

Scal

e 1

-5)

Online Survey


31

“How much do you spend YEARLY for Mobile personal Internet?” For both field and online respondents who have a mobile and have used internet through subscription we can

see from the below figure that the majority are spending between 500-4000 SAR on mobile personal Internet

per year. Amongst online respondents 26% are not aware of their mobile personal internet expenditure.

Figure 35: Annual Expenditure on Mobile Personal Internet Services (Field and Online)

0%2%

11%

1%0% 0% 0%

3%

10%

24%

3%

0%2%

26%



I don't know

Field Online


32

2.8 Fixed Telephone Services

2.8.1 Fixed Line Household Penetration

“Are you subscribed to the fixed line service?”

Results for fixed line household subscription show 68% for field survey and 88.8% for online survey.

Figure 36: Household Subscriptions for Fixed Line Service (Field & Online Surveys)

2.8.2 Number of Fixed Lines Per Household

“How many fixed lines do you have at home?”

The average number of fixed lines is estimated at 1.09 and 1.4 lines per household for field and online surveys

respectively.


33

Figure 37: Number of Fixed Lines Per Household (Field & Online Surveys)

2.8.3 Rating Quality of Fixed Line Services

“How do you rate the Quality of Fixed Telephony services?”

Looking at the overall satisfaction ratings7 for quality of fixed line services 4.23 (very good) and 2.93 (fair) was

reported from field and online respondents respectively. Across both survey it can be observed that field

respondents gave higher ratings across all attributes related to fixed lines services.

Figure 38: Rating Quality of Fixed Line Services (Field & Online Surveys)


4.23 4.28 4.07 4.03 3.93 3.91

1

2

3

4

5

Overall satisfaction - fixed

Voice quality for local calls - Fixed

Voice quality for international calls -

Fixed

Easiness to obtain new or second line

- Fixed

Technical Support -Fixed

Customer Care -Fixed

Rat

e (

Scal

e 1

-5)

Field Survey

2.933.43 3.21 3.16

2.29 2.311

2

3

4

5

Overall satisfaction - fixed

Voice quality for local calls - Fixed

Voice quality for international calls -

Fixed


- Fixed

Technical Support -Fixed

Customer Care -Fixed

Rat

e (

Scal

e 1

-5)

Online Survey


34

2.8.4 Rating Fixed Line Services’ Prices

“How do you rate the prices of the Fixed Phone services?”

Field and online respondents rated8 the fixed services‟ prices as “moderate to expensive”. International calls

were considered the most expensive.

Figure 39: Rating Prices of Fixed Lines Services (Field & online Surveys)

“Q57. How do you rate the Quality of Prepaid Calling Cards?”

Looking at the overall satisfaction ratings9 for quality of prepaid calling cards very good and fair was reported

from field and online respondents respectively. Across both survey it can be observed that field respondents

gave higher ratings across all attributes related to prepaid calling card services.

8 8 Very Cheap, Cheap, Moderate, Expensive, Very Expensive is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.


3.97 4.01 3.77 3.71 3.77

1

2

3

4

5

Overall satisfaction Voice quality for local calls

Voice quality for international calls

Service availability (for all times)

Customer care

Rat

e (

Scal

e 1

-5)

Field Survey


35

Figure 40: Rating Quality of Prepaid Calling Cards (Field & Online Surveys)

2.8.5 Annual Household Expenditure on Fixed Line Services

“How much did you spend over fixed telephone line services over the past 12 months?”

For both field and online respondents who have a fixed line at home we can see from the below figure that

majority are spending between 500-4000 SAR on fixed line services per year. .

Figure 41: Annual Household Expenditure on Fixed Line Services (Field & Online Surveys)

2.94 3.24 3.04 3.03 2.451

2

3

4

5




Customer careRat

e (

Scal

e 1

-5)

Online Survey

1% 2%

57%

7%

0% 0% 1%3%

10%

41%

9%

1% 0% 0%

Nothing Less than 500 SAR

500-4000 SAR 4,001-10,000 SAR 10,001-100000 SAR


I don't know

Field Online


36

2.9 Computers and Software

2.9.1 Household Personal Computer Penetration

“Do you own a computer for your personal use?”

The Field survey indicated a household personal computer penetration of 58.1%, while online survey indicated

a penetration of 93%.

Figure 42: Household Computer Penetration (Field & Online Surveys)

2.9.2 Number of Desktops and or Laptops owned by households

“What is the total number of laptops at your home?”

“What is the total number of desktop computers at home?”

For households equipped with computers, both surveys indicated higher ownership of laptops than desktops.

The field survey reveals households own 1.18 Desktop computers and 1.5 laptops on average, indicating an

emerging trend towards more laptop usage. This trend together with multiple mobile lines and adoption of 3G

service trend may suggest increase in mobility preferences of consumers. Comparison between the online and

field survey reveals higher PC and Laptop ownership amongst online respondents as indicated in figure 73.


37

Figure 43: Number of Desktops/Laptops owned by Households (Field & Online Surveys)

2.9.3 Frequency period of changing Desktop or Laptop computer

“How often do you change your desktop or laptop?” (One choice)

For households who own desktop PC/laptop, respondents were asked „How often do you change your desktop

or laptop?‟ The below table summarizes percentages across field and online survey.

Figure 44: Frequency of changing laptop and desktop (Field Surveys)

Figure 45: Frequency of changing laptop and desktop (Online Surveys)

21%1%

15%

4%

55%

82%

0%

Laptop %

1 - 2 years

1 - 6 months

3 - 5 years

7 - 11 months

I don’t change my computer unless necessary

Not applicable

16% 1%

17%

2%

62%

74%

0%

Desktop %

1 - 2 years

1 - 6 months

3 - 5 years

7 - 11 months

I don’t change my computer unless necessary

Not applicable

2% 3%

25%

19%52%

Laptop %

1 - 6 months

7 - 11 months

1 - 2 years

3 - 5 years

Not Applicable/ I don't change unless necessary

1% 1%9%

17%

71%

Desktop%

1 - 6 months

7 - 11 months

1 - 2 years

3 - 5 years

Not Applicable/ I don't change unless necessary


38

2.9.4 Annual Household’s and Personal Expenditure on Computer Equipment, Software and Accessories

“What is the household and personal expenditure spent on Computer equipment, Software

and accessories over the past 12 months?”

For both field and online respondents annual expenditure on computer equipment, software and accessories

is primarily between 500-4000 SAR per year. 35% of field respondents are not making such purchases.

Figure 46: Annual Household Expenditure on Computer Equipment, Software & Accessories

35%

15%

45%

2%0% 0%

12% 13%

23%

9%

1%4%

Nothing Less than 500 SAR 500-4000 SAR 4,001-10,000 SAR 10,001-100000 SAR More than 100,000 SAR

Field Online


39

2.9.5 Percentage of individuals who use computers

“Do you use computers?”

The survey investigated the percentage of computer users. The below table provides for results for this inquiry

Percentage of individuals who use computers %

Individuals Use Computers 65.8%

Individuals Do not Use Computers 34.2%

Total respondents 100.0%

2.10 Household Broadband Internet Subscription

2.10.1 Household Internet Penetration and Internet Technologies Used

“Is Internet used at your home?”

Responses to field survey indicate household internet penetration is 53.5%, while online survey indicates 96%

penetration levels.

Figure 47: Household Internet penetration (Field & Online Surveys)

“What type of broadband Internet do you use at home?”

According to the field survey, DSL formed 80.8% of internet technologies used at households, while the online

Survey indicated that DSL formed 79.5%.


40

Figure 48: Type of Internet Used by Individuals at home (Field & Online Surveys, Multiple Choice)

2.10.2 Households Usage of Wireless Routers

“Do you have a wireless router installed at home to access your Internet connection

wirelessly?”

Comparison of usage for wireless routers shows 47.5% for field and 76.2% online survey respondents.

Figure 49: Households Usage of Wireless Routers

2.10.3 Number of Computers in the Household that Share the Same Internet Connection

“Do you share the Internet connection with other households or other apartments in the

building?”


41

According to field and online survey 1.57 and 2.5 respectively represent the number of computers sharing the

same internet connection within a household.

Figure 50: Number of Household Computers Sharing Same Internet Connection (Field and Online Survey)

2.10.4 Households Sharing the Internet Connection With Other Households

“Do you share the cost of the Internet connection with the other households or apartments in

the building?”

For the first time in KSA, the survey investigated the number of households that share the same internet

connection.


42

Figure 51: Households Sharing the Internet Connection with Other Households (Field & Online Surveys)

Respectively the field and online surveys revealed that 9.4% and 15.8% of internet enable households are

sharing their internet connection with neighboring/nearby households. This finding can be attributed to

wireless routers usage; as 45.1% (Field survey) and 76.2% (online survey) of internet enabled households use a

wireless router. 84.0% of field respondents who share their internet connection also share its cost.

2.10.5 Current & Planned Average Speed of Household Internet Subscriptions

“What is the speed of broadband Internet at your home?”

Field survey indicates an average current internet speed for household subscriptions of 724 kbps. However,

for the same survey, the average planned speed over the coming 12 months period is expected to reach 1.316

Mbps, indicating 82% year on year growth. The Online survey indicates an average current internet speed for

household subscriptions of 1.22 Mbps. However, for the same survey, the average planned speed over the

coming 12 months period is expected to reach 6.14 Mbps, indicating 402% year on year growth.

Figure 52: Current & Planned Household Internet Speeds (Field & Online Surveys)

“If you plan to increase the Internet broadband speed at your home, to which speed do you

want to upgrade?” (One Choice)

For the respondents who have internet at home approximately 48% have plans to make some form of upgrade

to their internet speed, the table below presents approximate percentage breakdown for planned speeds.


43

Internet speed upgrade Field

Survey Online Survey

I don‟t want to increase the speed 52.4% 18.7% 128 kbps 0.2% 0.1%

256 kbps 1.9% 0.7% 512 Kbps 4.7% 4.3% 1 Mbps 21.3% 14.2% 2 Mbps 8.4% 11.1% 4 Mbps 5.7% 20.2% 8 Mbps 2.7% 5.4% 10 Mbps 1.1% 5.5% 16 Mbps 0.3% 1.1% 20 Mbps 1.4% 18.8% Respective Sample Size 100.0% 100%

Figure 53: Planned internet broadband upgrades (Field and Online Survey)

2.10.6 Reasons for households planning to increase Internet speed

“What is the reason for increasing the internet speed?” (Multiple Choice)

For the 48% of households planning to upgrade the internet speed over the coming 12 months, the survey

investigated the reasons for such plans as depicted in the figures below (multiple choice).

Figure 54: Reasons for households to increase internet speed (Field and Online Survey)

64%80%

37% 25% 9%

To have better quality To have better speed To increase the download limitation

Increasing to a higher speed does not cost that

much

There are new offers in the market that I want to

subscribe to

Field Survey

44%63% 49% 28% 14%

To have better quality To have better speed To increase the download limitation

Increasing to a higher speed does not cost that

much

There are new offers in the market that I want to

subscribe to

Online Survey


44

2.10.7 Rating of the price of Internet provided to household

“How do you rate the price of the broadband services at your home?” (Single Choice)

The field survey investigated rating the prices of Internet provided to households. The table below provides

respondents price ratings for Internet. For the field survey, 61% rated internet provided to the household

between very cheap to moderate and 39% expensive to very expensive. 10 % respondents did not know. 18% of

respondents of online survey indicated internet prices as moderate, whereas, 39% as expensive or very

expensive.

Figure 55: Rating Prices of Internet Services (Field and Online Survey)

3% 9%49%

30% 9%

Very Cheap Cheap Moderate Expensive Very Expensive

% o

f R

esp

on

de

nts

Field Survey

0% 1% 18% 39% 41%

Very Cheap Cheap Moderate Expensive Very Expensive

% o

f R

esp

on

de

nts

Online Survey


45

2.10.8 Annual Household Expenditure for Broadband Internet Service

“How much does it cost on a YEARLY basis the broadband Internet at your home?”

For both field and online respondents annual expenditure for Internet Services is primarily between 500-

4000 SAR per year.

Figure 56: Annual Household Expenditure over Internet Services (Field & Online Surveys)

0.0%3.7%

38.2%

2.9%0.2% 0.2% 0.0%0.0%

5.8%

61.4%

15.0%

1.1% 0.1% 0.0%


500-4000 SAR 4,001-10,000 SAR

10,001-100000 SAR


I don't know

Field Online


46

2.10.9 Rating the Quality of Broadband Internet Services

“How do you rate the Quality of Internet services used at your home?”

While field survey respondents overall rated10 broadband internet services at 3.84 (good to very good), online

respondents rating was of 2.40 (fair to good).

Figure 57: Rating the Quality of Household Broadband Internet Services (Field & Online Respondents)

10 Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option

3.84 3.71 3.61 3.72 3.71 3.58 3.63 3.57

12345


Connection speed


all times)


Easiness to obtain new or

second line

proper technical support

Customer care Voice calls over Internet

Rat

e (

Scal

e 1

-5)

Field Survey

2.40 2.32 2.29 2.73 2.98 2.06 2.19 2.3412345


Connection speed


all times)


Easiness to obtain new or

second line

proper technical support

Customer care Voice calls over Internet

Rat

e (

Scal

e 1

-5)

Online Survey


47

2.10.10 Rating Broadband Internet Services’ Prices

“How do you rate the price of the broadband services at your home?”

Looking at the rating11 of field respondents for broadband services‟ prices the majority of 79% revealed prices

as (moderate to expensive) and majority of 80% as (expensive to very expensive) for online respondents.

Figure 58: Rating the Prices of Broadband Internet Services (Field & Online Surveys)

11

11 11 Very Cheap, Cheap, Moderate, Expensive, Very Expensive is represented from 1 to 5 respectively. ‘I don’t know’ response was available

option.

3% 9% 49% 30% 9%

Very Cheap Cheap Moderate Expensive Very Expensive% o

f R

esp

on

de

nts

Field Survey

0% 1% 18% 39% 41%

Very Cheap Cheap Moderate Expensive Very Expensive% o

f R

esp

on

de

nts

Online Survey


48

2.11 Individual/Household Bundled Services

2.11.1 Satisfaction level with bundled services

“What is the level of your satisfaction with the bundled services offers?”

Looking at responses from both field and online survey it can be observed that poor awareness levels and lack

of subscription to bundled service offers constitute the majority of responses.

Figure 59: Awareness and Satisfaction levels for bundled services (Field & Online Surveys)

“If not satisfied, what are the reasons?”

At approximately 74% the majority of field respondents are satisfied, with 30% very satisfied and 54%

satisfied. The main reasons of dissatisfied individuals/households included „Weak technical support‟

and bundled „offers are too difficult to understand‟.

48.4%

30.4%

6.3%11.5%

3.0% 0.3% 0.1%

Field Survey

Not Aware of bundled services offers

Aware of but not subscribed to any bundled services

Very satisfied

Satisfied

Neutral

Unsatisfied

Very unsatisfied

69.9%

12.2%

1.0%

4.7%

5.8%

3.1%

3.3% 0.2%

Online Survey

Not Aware of bundled services offers

Aware of but not subscribed to any bundled services

Very satisfied

Satisfied

Neutral

Unsatisfied

Very unsatisfied

not answered


49

2.11.2 Services that might be considered with a bundled service offer

“What are the services that you wish to be bundled together?” (Multiple Choice)

The survey investigated various services which individuals/households might consider within a bundled offer.

The figure below provides associated findings.

Figure 60: Awareness and Satisfaction levels for bundled services (Field & Online Surveys)

Analysis reveals that fixed telephony services and mobile services in addition to „electricity‟ are the highest

services that are preferred by individuals to be considered in bundled offers.

2.12 Personal Web Pages

2.12.1 Individuals Owning or Managing Websites & Domain Names

“Do you own or manage a personal website?”

36.9%41.7%

23.2%

11.2%

33.6%

22.4%14.1%

23.8%

0.6%

Fixed Telephony

Mobile Telephony

Internet Services

TV subscription

Electricity Water All of the above

None of the above

Others

Field Survey

34.0% 31.1%36.4%

14.9%22.7% 18.9%

30.2% 28.5%

7.0%

Fixed Telephony

Mobile Telephony

Internet services

TV subscription

Electricity Water All of the above

None of the above

Others

Online Suvey


50

The field and online respondents who own or manage a personal website are reported as 5% and17%

respectively.

Figure 61: Individuals Owning or Managing a Website (Field & Online Surveys)

“Please indicate your websites various domains “(Multiple Choice)

Both field and online survey results revealed significant difference between ownership or management of

generic domains versus local domains. With the launch of Saudi Domain Name registration process12 and the

introduction of Arabic Domain Names the usage of local domain names is expected to increase.

Figure 62: Website Domains Owned or Managed by Individuals (Multiple Choice, Field and Online Surveys)

12 Individuals or establishments interested in registering a Domain Name Registration can find more information at http://www.saudinic.net.sa


51

2.13 Electronic Services

2.13.1 Usage of ICT-based Payment Methods

“Do you use any of the listed payment methods?” (Multiple Choice)

The survey explored the usage of several ICT-based payment methods namely online payment, payment

through ATM (Automatic Teller Machine) and payment through telephone interactive voice recognition (IVR)

system. Amongst the 37% field survey respondents who are using ICT-based payments the most common

form is through Bank Automatic Teller Machine at 93%. From the 84% online respondents who are using

ICT-based payments, „Online Payment‟ and „Payment through Bank ATM‟ received similarly high usage levels.

Figure 63: ICT based Payment Methods Used by Individuals (Field & Online Surveys, Multiple Choice)

63%

37%

Field Survey

I don’t use any of mentioned methods

I use ICT-based Payment Methods

16%

84%

Online Survey

15% 15%

93%

Online Payment Payment through Phone IVR

(Interactive Voice Recordings)

Payment through Bank ATM

% ICT Based Payments (Field Survey)

67%

33%

66%

Online Payment Payment through Phone IVR (Interactive

Voice Recordings)

Payment through Bank ATM

% ICT Based Payments (Online Survey)


52

2.13.2 Internet payment methods used by individuals

“Which of the below payment methods do you use through the Internet?” (Multiple Choice)

Amongst field survey respondents using internet for payments approximately 45% and 38% preferred to pay

„Through Credit Card‟ and „… through Internet Banking‟ amongst other services. Similarly for online survey

respondents paying through internet the most preferred method is through Internet Banking.

On the other hand, for online survey respondents, credit card payment is preferred by 51% whereas payment

through Internet Banking is preferred by 86%.

Figure 64: Internet Payment Methods Used by Individuals (Field & Online Surveys, Multiple Choice)

45%

13%

38%

5%

Through Credit Card Through special internet payment cards

Payment through Internet Banking

Through e-payment services such as PayPal

Field Survey

51%

22%

86%

22%

Through Credit cards Through special internet payment cards

Payment through Internet Banking

Through e-payment services such as PayPal

Online Survey


53

Figure 65: Expenditure for bills through various ICT-Based Payment Methods (Field and Online Survey)

2.13.3 Individuals Buying Products Online

“Do you buy products over the internet?”

1.3% of field respondents and 35% of online respondents indicated that they buy products over the internet.

Figure 66: Individuals Buying Products over the Internet (Field & Online Surveys)


54

2.13.4 Types of Products Paid for Using ICT-Based Payment Methods

“Through the Internet, which of the following products and services do you buy?” (Multiple

Choice)

Electronic equipment, online content and mobile content were the main products paid for over through the

internet by the field respondents.

Electronic equipment, software and financial stocks, were the main products paid for over internet by online

respondents.

Figure 67: Types of Products Bought by Individuals over the Internet (Field & Online Surveys)


55

“Through the Internet, how much did you spend for buying products during the last 12

months (in SR)?”

With only 1.3% and 35% of field and online survey respondent purchasing products over the internet the

interpretations from below figure will become more robust, however for the purposes of illustration 8.1% of

online respondents are spending more than 1,001-3,000 SAR per year.

Figure 68: Annual expenditure for products over the internet (Field and Online Survey)

2.13.5 Local & international websites that individuals seek to buy products over the internet

“From which websites do you buy over the Internet?” (Single Choice)

The survey investigated the Local & international websites that individuals seek to purchase products and

services over the internet. 44% of online respondents who are typically more mature ICT users chose only to

buy products from websites of international companies.

Figure 69: Purchased over Local v.s International Website (Field and Online Survey)

0.20% 0.26% 0.40% 0.20% 0.00% 0.00% 0.07% 0.13%

3.5%

7.2%8.1%

4.7%

2.6%

1.0%

5.0%

2.6%

Less than 500

500–1,000

1,001 - 3,000

3,001 - 5,000

5,001 - 7,000

7,001 - 9,000

More than 9,000

No answer/I don’t know

% Field % Online

21%

11%

68%

Field Survey

17%

44%

39%

Online Survey

From websites of local companies

From websites of international companies

From both


56

2.13.6 Developments needs of local e-commerce websites used by individuals

“Do you think that local e-commerce websites should be improved?” (One Choice)

The survey investigated the development needs of local e-commerce websites used by individuals. Nearly the

entire online respondent indicated the need for improvement of local e-commerce websites. For field

respondents who have an opinion on whether local e-commerce website need improvement a significant

majority indicated that they don't know (see the figure). For online survey respondent at 93% majority believe

local e-commerce „need to be improved‟.

Figure 70: Improvement of Local e-Commerce Websites (Field and Online Survey)

37%

16%

47%

Field Survey

93%

1%

6%

Online Survey

Needs To be Improved

No Need for Improvement

I don't know


57

2.14 Electronic Banking

2.14.1 Individual ownership of a bank account

“Do you have a bank account?”

For the purpose of investigating related ICT-based banking services, the survey investigated individual‟s

ownership of a bank account. 48% of field survey respondents do not have a bank account.

Figure 71: Bank account ownership (Field and Online Survey)

2.14.2 Online Banking Services

“What do you use online banking for?”

Surveys indicated that 17% of field respondents and 82% of online respondents who own bank accounts use

their online banking service. Account and balance inquiries, paying and managing bills and transferring

money between local bank accounts are the most popular online banking services.

52%

48%

Field Survey

95%

5%

Online Survey

Have a Bank Account

Do Not Have a Bank Account


58

Figure 72: Online Banking Services used by Individuals (Field & Online Surveys)

2.14.3 Rating E-Banking Services’ Quality

“How do you rate the quality of e-banking services?”

For the field survey average quality rating13 of 4.2 (very good to excellent), while for the online survey average

was slightly lower at 3.9 (good to very good).

Figure 73: Rating E-Banking Services‟ Quality (Field and Online Surveys)

13

Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.


59

2.15 Pay Television Services

2.15.1 Individuals Watching Satellite TV Channels

“Do you watch Satellite TV channels?” 96% of field and online respondents watched satellite TV channels.

Figure 74: Individuals Watching Satellite TV Channels

2.15.2 Individuals Watching Satellite Pay TV Channels

“Do you watch Satellite Pay TV channels?” 48% of field and 47% of online respondents watch Pay TV channels.

Figure 75: Individuals Watching Satellite TV Channels

48%

52%

Field Survey

47%

53%

Online Survey

Watch Pay TV

Do Not Watch Pay TV


60

2.15.3 Individuals Subscribed to Pay TV services

“How do you watch Satellite pay-TV?”

24.6% of field survey respondents are subscribed to pay-TV channels and 24.3% for online survey

respondents.

Figure 76: Individuals Subscribed to Pay TV services (Multiple Choice)

2.15.4 Video on Demand (VoD) Usage by Individuals Who are Subscribed to Pay-TV Services

“Through subscription to pay TV, do you use the Video on Demand service?”

Only 15% of field survey respondents who are subscribed to pay-TV services use Video on Demand services

(3.7% of individuals) while the percentage reached 24% for online survey respondents.


61

Figure 77: Video on Demand (VoD) Usage by Individuals Who are Subscribed to Pay-TV Services

2.15.5 Program/Movies Orders Per Month by VoD Users

“If answer is „Yes‟, how many programs/movies do you and your family order per month?”

Significant percentage of the field survey respondents are watching between 5 to 20 VOD per month whereas

majority of the online survey respondents (63.6%) are watching less than 5 VOD programs a month.

Figure 78: Program/Movies Orders per Month by VoD Users (Field and Online Survey)

16.1%

39.3% 37.5%

5.4%1.8%

0%

20%

40%

60%

80%

Less than 5 movie/program a

month

5-10 movies/programs a

month


month


month

More than 50 movies/programs a

month

% o

f V

oD

use

rs

Field Survey

63.6%

27.3%

7.6%0.0% 1.5%

0%

20%

40%

60%

80%

Less than 5 movie/program a

month


month


month


month

More than 50 movies/programs a

month

% o

f V

oD

use

rs

Online Survey


62

2.16 Future Services

2.16.1 Future Services Awareness and interest levels

2.16.2

“Do you know the following services and if so, would you consider subscribing to them once available?” (Multiple Choice, consolidated figures)

For below mentioned future services, field survey respondents indicated high level of unawareness. Very low

% of interviewed respondents had interest in subscribing to such services. However, this may be due to the

fact that individuals are not aware of these services or have little understanding of the corresponding benefits.

Similiarly online survey respondents have high levels of unawareness of various future services.

Figure 79: Future services awareness and interest levels (Field Survey, Multiple Choice)

54% 51% 56% 50%61% 62%

51% 52% 50%63% 65%

55% 64% 67% 76%67% 63% 64%

79%

15% 13% 11%13%

8% 7%9% 12% 10%

10% 11%10%

10% 9%4%

8% 12% 9%

4%32% 36% 33% 37% 32% 31% 40% 36% 40%27% 23%

35% 26% 24% 19% 25% 24% 26%17%

I don’t know the service I am interested in the service I know the service but not interested


63

Figure 80: Future services awareness and interest levels (Online Survey, Multiple Choice)

2.17 Complaints Handling

2.17.1 Types of Complaints Against Service Providers

“Have you ever faced any of the following with your service providers?”

„Customer care not answering complaints efficiently‟ was ranked the highest across both field and online

survey respodents.

Figure 81: Types of Complaints against Service Providers (Field and Online Survey Multiple Choice)

49%35% 41% 40% 45% 45% 43% 44% 44%

60%44%

57% 64% 65% 71%48% 44% 41%

56%

16%29% 24% 17% 15% 19% 19% 26% 23%

17%

21%14%

17% 14%12%

27%21% 31%

24%

35% 36% 35% 43% 39% 37% 38% 30% 33%23%

35% 30%18% 21% 17% 25%

35% 29% 20%

I don’t know the service I am interested in the service I know the service but not interested

Field Survey6%

Field Survey9%

Field Survey12% Field Survey

4%

Field Survey80%

Online Survey36%

Online Survey60%

Online Survey63% Online Survey

48%

Online Survey19%

0%

20%

40%

60%

80%

100%

The prices were not according to the

advertisment

The service quality you got was not what you were promised in the ad or contract of the service

provider

The customer care did not answer your complaints

efficiently

4. The service provider did not claim responsibility for

the reason of the complaint

None of the Investigated Complaints

% o

f re

spo

nd

en

ts

Field and Online Surveys


64

2.17.2 To whom were complaints about Service Providers reported

“To whom did you report your complaints?” (Multiple Choice)

Findings reveal that customer care is the most popular party that receives customers‟ complaints. Only 2 % of

field respondents and 11% of online respondents who faced issues with the service provider complained to

CITC.

Figure 82: To Who Complaints against Service Providers were reported (Multiple Choice)

2.17.3 How Complaints Against Service Providers were Handled

“How was your complaint handled?”

8% of field respondents‟ and 6% of online respondents‟ officially reported complaints were addressed and

corrected. „Not addressing the complaint‟, „customer never receiving a promised call‟, and „loop between

technical support and customer care referrals‟ were the major issues respondents express regarding

complaints‟ handling.


65

Figure 83: How Complaints against Service Providers were handled (One choice)

2.17.4 Awareness of CITC customer complaints regulations

“Are you aware of that you can complain to the Communications & Information Technology

Commission if your complaint was not resolved with your operator 15 days after officially

filing the complaint with the operator?”

Current CITC customer complaint regulations allow customers of service operators to complain to the

Communications & Information Technology Commission if their complaint was not resolved with their

operator 15 days after officially filing the complaint with the operator. Only 30% of field respondents and 28%

of online respondents were aware of CITC customer complaint regulation.

Figure 84: Awareness of CITC customer complaints regulations


66

3. Survey Findings - Establishments

Section 3 summarizes the establishments‟ findings and presents various observations relevant to SMEs, large

& very large establishments in addition to governmental agencies.

Figure 85: ICT Value Chain-Consumer-Business & Government Surveys

3.1 Establishment Profile and Demographics

3.1.1 Establishments Sample Structure


67

Figure 69: Establishments Sample Structure14

3.1.2 Establishments’ Profile:

Figure 86: Establishments' Profile

3.2 Public Awareness of CITC & Its Role (Est.)

3.2.1 Establishments' Awareness of CITC and its Role

“Have you heard of the Communications and Information Technology Commission (CITC)?”

In general, CITC has less awareness amongst small to medium enterprises (SME) when compared with

large/very large (L&VL) and governmental establishments regarding awareness of CITC and its roles and

responsibilities.

14 Classification and representative sampling of establishment aligned with figures from Ministry of Economy and Planning and Central Department of Statistics. Small to Medium Enterprises (SME) is a superset of Small Office/Home Office (SOHO), Small and Medium Enterprises.


68

Figure 87: Awareness of CITC and its Role

“Do you know what the role of the CITC is?”

Figure 88: Awareness of CITC roles

3.3 Mobile Services

3.3.1 Mobile Allowances Offered by Establishments to employees

“What is the percentage of employees that receive mobile allowance from the establishment?

(i.e. paid by the establishment)”

As per findings of establishment survey on average 64% of establishment do not provide any of their

employees with a mobile allowance. For the establishments that do provide such allowance it is typically

assigned to small percentage of the employees. L&VL establishments are the most inclined to offer such

allowances to their employees. Given the competitive global market place this is no surprise.

49.1%71.1%

95.0%

0%

20%

40%

60%

80%

100%

SMEs L&VL Gov

Awareness of CITC role


69

Figure 89: Employees Receiving Mobile Allowances from their Establishments

3.3.2 Consideration of Changing Mobile Service Provider and Reasons

“Does the establishment consider changing its main mobile operator?”

81% of establishments indicated they would not change mobile operator for mobile allowances provided to

their employees. For the establishments that would change, the main reason was the „need for better rates and

packages‟ and „better quality of customer care‟.

“Why does the establishment consider changing its mobile operator?”

1%

2%

1%

1%

6%

4%

8%

78%

3%

1%

0%

14%

12%

10%

22%

38%

3%

0%

0%

0%

0%

5%

15%

78%

2%

1%

0%

5%

6%

6%

15%

64%

0.0% 40.0% 80.0%

100% (All Employees)

80-99%

60-79%

40-59%

20-39%

10 - 19%

less than 10%

Establishment does not provide such allowances

Percent receiving allowance

em

plo

yee

bre

akd

ow

n

Average

Gov

LVL

SME


70

Figure 90: Consideration of Changing Mobile Service Provider and Reasons (Multiple Choice)


71

3.3.3 Reasons that keep establishment with its current mobile operator

“In general, what are the reasons that keep the establishment with its current mobile operator?”

(Multiple Choice)

For those establishments who provide for mobile service allowances to their employees and do not consider

changing their mobile service provider, see below figure for reasons establishments stayed with current

mobile operator.

Figure 91: Establishment Reasons to stay with current mobile operator (Multiple Choice)

3.3.4 Rating Mobile Services’ Quality (across all service providers)

“How do you rate the quality of service provider Mobile services?”

The overall satisfaction 15 of mobile services was rated between good and very good (rate 3.82). In general,

government establishments gave higher quality ratings than L&VL and SMEs.

15


83%61%

11% 0% 3%

81%57%

5% 14% 5%40% 0% 0% 0%60%

Quality of service Current rates and packages Switching costs are high Switching to another provider is complicated

and time consuming

Other reasons (Specify Below)

Reasons that keep the establishment with its current mobile operator

SME L&VL Gov.


72

Figure 92: Establishments Rating the Quality of Mobile Services

3.3.5 Rating Mobiles Services prices (Consolidated)

“How do you rate the prices of service provider Mobile services?” (Consolidated figures)

Across all establishment types prices for the different services where mainly rated as moderate to expensive.

Figure 93: Service Provider Services Rating

3.7 3.7 3.73.4

3.73.5 3.6 3.5 3.5

3.9 3.83.6

4.03.7

3.9 3.73.4 3.4

3.8

4.7 4.7

2.3

3.5

4.04.2

4.5

3.2

1

2

3

4

5

Overall Satisfaction

Voice Quality of local calls

Voice Quality of

international calls


Coverage in your area and

signal strength

Push email services

Quality of 3G services

Easiness of Mobile

Number Portability

Customer Care

Establishments Rating Quality of Mobile Services By Type of Establishment

SME

L&VL

Gov

3.0

3.83.5 3.5

3.0 3.1 3.0 3.2 3.13.1

3.7 3.84.2

3.1 3.2

3.84.1

3.8

2.8 2.9

3.43.2

2.83.1

3.3

5.0

1

2

3

4

5

Mobile Calls to the Same Network

Mobile Calls to International Destinations

SMS Internet Service Value added services (e.g. ring tones and

flash news)

SME L&VL Gov.


73

3.3.6 Usage, Quality & Prices of PMR, GMPCS and GPS Services

“Does the establishment have a Private Mobile Radio (PMR) network?” (Consolidated

figures)

On average 4.8% across all establishment types have PMR network.

“How do you rate the quality of the following mobile telecom services?”

On average quality was rated as good to very good across the PMR, GMPCS and GPS services.

“How do you rate the prices of the following mobile telecom services?”

The surveys investigated the establishments‟ usage of Private Mobile Radio (PMR), Global Mobile Personal

Communications by Satellite (GMPCS) and Global Positioning Service (GPS). Surveys indicated that PMR,

GMPCS & GPS services have a low penetration at establishments with government establishments being the

main users. In general, Establishments considered PMR, GMPCS and GPS services‟ quality as good to very

good and rated the GPS services and GMPCS services as moderate to expensive.

Figure 94: Investigating penetration, quality16 and prices of PMR, GMPCS and GPS Services Used by Establishments

16



74

3.3.7 Establishments’ Annual Expenditure on Fixed & Mobile Services

“How much did the establishment spend over all mobile telecom services over the past 12

months?” (i.e. GSM/3G, Private Mobile Radio, GMPCS and GPS)

The below figure represents the distribution of SME, V&L and Gov establishments expenditure for mobile

telecom services across various spending ranges per year.

Figure 95: Establishments‟ Annual Expenditure Mobile Telecom Services

67.8%

0.0%

2.7%6.2%

3.0%0.0% 0.0%

20.4%

51.3%

0.0%

2.6%2.6%

22.4%

7.9% 7.9% 5.3%

47.5%

0.0%0.0%

2.5%5.0% 7.5% 5.0%

32.5%


500-4000 SAR 4,001-10,000 SAR

10,001-100000 SAR

100,001-500,000 SAR


Not Answered

SME% L&VL% Gov%


75

3.4 Wireless Technologies Usage

“Please specify all wireless technologies used by the establishment”(Multiple Choice)

Figure 96: Wireless Technologies Usage distribution per Establishment type

3.5 Fixed Telephone Services

3.5.1 Number of Fixed Lines Used Per Establishment Segment

“How many fixed lines does your Establishment have? (For HQ & all local branches)”

The average number of fixed lines used by SMEs, L&VL, and governmental establishments are 5.2 lines, 52.1

lines and 127 lines per establishment respectively.

10.9%

12.7%

3.8%

0.3%

0.0%

0.0%

0.0%

0.0%

75.4%

28.9%

13.2%

10.5%

5.3%

2.6%

6.6%

0.0%

19.7%

46.1%

55.0%

32.5%

37.5%

35.0%

10.0%

25.0%

17.5%

85.0%

5.0%

Mobile (GSM)

Mobile (3G/HSDPA)

WiMAX

Private Mobile Radio (PMR) network

Global Mobile Personal Communications by Satellite (GMPCS)

Global Positioning System (GPS)

Pager

Wi-Fi

None

Gov % L&VL% SME %


76

Figure 97: Number of Fixed Lines Used Per Establishment Segment

3.5.2 Rating Quality and Prices of Fixed Line Services

“How do you rate the Quality of Fixed Telephony services provided to the Establishment?”

All establishments rated the fixed services‟ quality just below very good (rate of 3.94), and rated the prices

close to moderate (rate of 3.28)

Figure 98: Establishments Rating Quality of Fixed Services

“How do you rate the prices of the fixed line services provided to the Establishment?”

International calls were rated more expensive compared to other call types and services. ). In general,

government establishments gave a higher price rating than L&VL establishments and SMEs.

4.24 4.203.89

4.08 4.073.914.00 4.04 3.91

4.12

3.703.553.56

4.00

3.38 3.40

2.55 2.58

1

2

3

4

5




Proper Technical Support

Customer Care

SMEs

L&VL

Gov


77

Figure 99: Establishments Rating Fixed Services‟ Prices

“How much did the establishment spend over fixed telephone line services over the past 12 months?” The below figure represents the distribution of SME, V&L and Gov establishments expenditure for fixed lines

services across various spending ranges per year.

Figure 100: Establishments annual expenditure for Fixed Services

2.812.98

3.813.44

3.192.86

3.04

4.33

3.763.45

3.093.49

4.03 4.12

3.38

1

2

3

4

5

Local calls National calls International calls Fixed line calls to other networks

Value added services (e.g. caller

line identity)

SMEs

L&VL

Gov

3.0%0.0%

35.5%39.6%

18.9%

0.0% 0.0%3.0%

6.6%

0.0%

13.2%

23.7%

39.5%

6.6% 6.6%3.9%

25.0%

0.0%2.5%

0.0%

7.5%10.0% 10.0%

45.0%


100,001-500,000 SAR


Not Answered

SME% L&VL% Gov%


78

3.5.3 PBX Usage and Type of Used PBX

“Does the establishment have a Private Branch Exchange (PBX)?”

“What is the type of your establishment‟s Private Branch Exchange?”

28% of establishments reported using a PBX, with only 2.4% indicated using IP PBX. SMEs mainly use

Analogue PBX, L&VL establishments use analogue & Digital PBX similarly, while Governmental

establishments mainly depend upon Advanced Digital & IP PBX systems.

Why does your organization use the IP PBX?” Key reasons for using IP PBX include, to:

Connect establishments internal phones

Connect the telephones for local branches together using the internet

Connect the telephones of local and international branches of the establishment using the internet

Make international calls using the internet

Figure 101: PBX Usage and Type of Used PBX


79

3.5.4 Establishments’ Call Center Experience

”Does the establishment have a call center to manage calls from customers and clients?”

Only 3.6% of SMEs, 27.6% of L&VL and 57.5% of Government establishments indicated having a call center.

For those having a call center, only 50% of SMEs, 71.4% of L&VL and 91.3% of Government establishments

were aware that call center services can be outsourced.

“Are you aware that you can outsource your call center?” Government establishments demonstrated the greatest awareness of Call Centre Outsourcing. “Who is the provider of the call center service?” Call centers are predominantly managed internally by the government and private sector establishments.

Figure 102: Call Center Penetration, Awareness and Management


80

3.6 Computers, Servers and Software

3.6.1 Establishments’ Computer Penetration & Types of Servers Used

“Does the establishment use computers?”

Computer penetration for business establishments reached 74% for SMEs, and 100% for L&VL Government

establishments.

Figure 103: Establishments' Computer Penetration

The response from establishments to “Please indicate the type of dedicated servers that the

establishment has” resulted with 16% of establishments not having any servers.

Figure 104: Deployment of Server Types by Establishments

File & DNS servers are the most widely used types followed by Mail, Web and Special application servers.


81

3.6.2 Types of Software Used

“What are the languages used for your software?”

KSA establishments demonstrate significant adoption levels of standard office applications and software

(Office Solutions, Security & Accountancy). Sales & CRM solutions have reasonable penetrations within KSA

establishments.

Figure 105: Language of software used by Establishments

Figure 106: Establishments Usage of Various Software types

Figure 107: Software Utilization by Type of Establishments

14% 15%

37%

11% 7% 11% 14% 12% 9% 13%18% 16% 14%

30% 27% 27% 22% 24% 22% 25%

68% 69%

49%59%

66% 61% 64% 64% 69%63%

Operating Systems (e.g.

Windows)

Office Solutions (e.g.

Windows Office)

Security, Firewall & Spyware Software

Accountancy & Financial Solutions

Customer Relationship

Management Software

Sales Management

Software

Specialized Management

Solutions

Human Resource

Management

Enterprise Resource Planning

Solution (ERP)

Industrial Control

Solutions

All Establishments

English only Arabic only both


82

3.7 Establishment Networks

3.7.1 Utilization of LAN and WAN Technologies

“How many of your establishments‟ branches have Local Area Networks (LAN)?”

The establishment survey indicated that SME and L&VL show low levels of LAN utilization (17% and 57%

respectively) when compared with Government establishments of 82%.

Figure 108: Percentage of Establishments with LAN

Leased Lines & IPVPN Technologies were found to be the most eminent technologies connecting branches.

Figure 109: Connection Technology Used Across Establishments' Branches


83

3.7.2 VPN Services and Remote Access

“What are the technologies used to connect the branches?” (Multiple Choice)

While Most SMEs and L&VL establishments utilized their own technicians to establish their VPN connections,

governmental establishments mainly relied upon leasing the service from a service provider.

Figure 110: % of VPN Connections leased from a Service provider to all VPN Connections

“Who establishes and provides the VPN connections for the establishment?” (Multiple

Choice)

Majority of establishments either do not use and or do not know about VPN technology.

Figure 111: Party establishing and providing VPN Connections to the Establishment

0.0% 0.0% 0.0% 0.0% 0.0% 2.7%

12.1%

3.9% 1.3% 3.9%9.2%

13.2%

30.3%

15.8%

0.0%

7.5%12.5% 15.0% 12.5%

45.0% 47.5%

X.25 ATM IP VPN using satellite IP VPN over MPLS Frame Relay IP VPN Leased Lines (Point to Point)

Connection Technology used Across Establishments’ Branches

SMEs L&VL Gov

4.7%1.5%

68.9%

23.7%

0.9%

32.9%

11.8%

35.5%

15.8%

3.9%

15.0%

42.5%

30.0%

7.5% 5.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Was established through our own

technicians

The service is leased from a Service Provider

We do not use this technology

I do not know Not Answered

SME %

L&VL %

Gov %


84

“Does the establishment‟s network provide remote access to its employees and clients?”

Remote access to employees and clients by governmental and L&VL establishments is significantly higher

when compared with SMEs. With the low levels of mobile + internet allowances and similarly little provision

of remote access facilities fewer incentives exist for employees to work remotely.

Figure 112: % of Establishments Providing Remote Access to Employees & Clients

3.7.3 Establishments providing Wi-Fi service for the public

“Does the establishment provide Wi-Fi service for the public?” (Multiple Choice)

On average 83% of establishments are not providing some form of Wi-Fi access to the employees and clients.

Figure 113: Status of Wifi to public from establishment

1.3%4.3%

1.6%

88.8%

3.9%4.3% 7.1% 0.0%

88.6%

0.0%

67.5%

2.5% 0.0%

27.5%

2.5%8%

5%1%

83%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Provide Wi-Fi Service for free with security

encryption

Yes, for free without security encryption

Provide Wi-Fi Service but the service is charged (not

free)

Do Not Provide Wi-Fi Service

Do Not Currently Provide Wi-Fi Service but are

planning to install a Wi-Fi network soon

% o

f Es

tab

lish

me

nts

Establishment provide Wi-Fi service for the public


85

3.8 Internet and e-Services

3.8.1 Internet & Broadband Penetration

“Is Internet used at your establishment?”

60.4% of SME are not using internet, whereas 90.8% L&VL and 92.5% governmental establishments are using

the internet..

Figure 114: Establishments Internet Usage

Does the establishment have a broadband Internet subscription (any internet speed above

256 Kbps)?

Figure 115: Status of Establishments Broadband Internet Subscription

39%

60%

1%

SME

Yes No Did not respond

91%

9%

L&VL

Yes No

92%

8%

Gov

Yes No

97.7%

98.6%

100.0%

96%

97%

98%

99%

100%

SME L&VL Gov

Bro

adb

and

Pe

ne

trat

ion

(%

)


86

“

3.8.2 Reasons for not having internet broadband

“If the establishment does not have a broadband Internet subscription, what are the

reasons?”

For those establishments who do not have internet broadband, the survey investigated the reasons for not

having the service. 33.3% of SME believe the establishment/operations does not depend on the internet and

hence the reason for no usage.

Figure 116: Establishment reasons for not having internet

0% 0%

33%

67%

0% 0% 0% 0%0% 0%

33%

67%

0% 0% 0% 0%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

We are not familiar with the uses and benefits of

Internet

We are not familiar with the uses and benefits of broadband

Internet

Our work/operation

does not depend on the

Internet

Dial up connection is good enough for our work

I applied to an Internet service

provider but there is no

Internet coverage in my

area

Internet subscription is too expensive

Internet will be abused by our

employees leading to

distractions

Other reasons (Specify below)

SME %

L & VL %


87

3.8.3 Public and Private Establishments first contact with the Internet

“When did your establishment first subscribe to broadband Internet?” Government establishments in general have been subscribed to broadband internet for longer period than private sector. In the last few years SME establishments have actively started adopting broadband internet.

Figure 117: Establishment reasons for not having internet

7.8%

46.9%

28.9%

12.5%

3.9%0.8% 0.8%

8.5%

15.3%

35.6%

22.0%

18.6%

5.1%

10.2%

0.0%

15.2%18.2%

30.3%

36.4%

0.0%

12.1%

7%

34%

29%

18%

13%

2% 5%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Less than 1 year ago 1 to 2 years ago 3 to 4 years ago 5 to 7 years ago 8 years or more I do not know Not Answered

SME L&VL Gov. All Establishments


88

3.8.4 Establishments’ average current & planned Internet speeds

While the average internet speed of SMEs is 650 Kbps, L&VL establishments‟ internet speed is estimated at

1.76 Mbps, and the Governmental establishments‟ internet speed is estimated at 7.54 Mbps. For the coming 12

months period, on average upgrades to establishment internet speeds is expected for establishments as

follows, SMEs to reach 1.6 Mbps with year-on-year (YoY) growth of 149%, L&VL to reach 2.94 Mbps with YoY

growth of 67% and Government to reach 12.41 Mbps with YoY growth of 65%.

“What is the maximum broadband Internet speed used by the establishment?” and “What are the establishments plans to increase its Internet speed over the coming 12 months?” (Mbps) Establishments are planning to increase current maximum internet speed between by more than 85% in the coming 12 months.

Figure 118: Maximum used and planned broadband speeds by establishments

0.65

1.76

7.54

1.61

2.94

12.41

- 5.00 10.00 15.00 20.00 25.00

SME

L&VL

Gov

Maximum Speed Used (Mbps) Planned Speed (Mbps)


89

3.8.5 Internet and e-Services

“What is the percentage of employees who have allowances to use Internet access outside the establishment? E.g. at home” (This question includes fixed Internet, push email service and any other internet-over-mobile services)

On average across both public and private sector establishment 85% employees do not receive an internet allowance from their employers.

Figure 119: Employees Receiving Internet Allowances from their Establishments

0.0%

1.6%

7.0%

3.9%

4.7%

82.9%

0.0%

0.0%

7.6%

3.0%

4.5%

84.8%

0.0%

0.0%

0.0%

0.0%

5.4%

94.6%

0%

1%

6%

3%

5%

85%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

All employees (100%)

75 to 99%

50 to 74%

25 to 49%

Less than 25%

Establishment does not provide Internet Allowance

Percent receiving alloance

Emp

loye

e B

reak

do

wn

All Establishments

Gov.

L&VL

SME


90

“What are the technologies used by the establishment for the broadband Internet?” (Multiple Choice)

Figure 120: Technologies used for broadband internet by Establishments

3.8.6 Rating Internet Services’ Prices

“How do you rate the price of the broadband services provided to the establishment?”

While SMEs and L&VL establishments rated17 the offered internet services as „moderate to expensive‟, the

Governmental establishments rated them as „expensive to very expensive‟.

Figure 121: Establishments Rating of Internet Services‟ Prices

17

Very Cheap, Cheap, Moderate, Expensive, Very Expensive is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.

98%

0% 1% 3% 1% 3%0% 1%

94%

15% 3% 16% 4% 1% 3% 1%

65% 65%

30%

19%

5%

16%

5% 3%

92%

14% 6% 9% 3% 5% 2% 1%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DSL leased lines Fiber optics WiMax WiMAX dedicated 3G Internet from a mobile service

provider

Internet via Satellite (DVB)

Internet via Satellite

Dedicated (SCPC)

SME L&VL Gov. All Establishments

3.54

3.07 3.16

4.38

1

2

3

4

5

Average SME L&VL Gov

Rat

e (

Scal

e 1

-5)


91

3.8.7 Rating Internet Services’ Quality

“How do you rate the quality of Internet services provided for the establishment?”

Quality rating varied across the establishments with overall quality rating18 of 3.64 (Good to Very Good).

While SMEs and L&VL establishments considered the quality as „Very Good‟, governmental establishments

indicated only a „Fair to Good‟ quality levels.

Figure 122: Establishments Rating Quality of Internet Services

18


3.9

3.7

3.6

3.7

3.7

3.6

3.5

3.5

3.6

3.4

3.3

3.5

3.8

3.3

3.3

3.5

2.8

2.9

3.1

3.2

2.8

2.8

2.7

2.6

3.64

3.46

3.45

3.55

3.58

3.39

3.31

3.44

1.0 2.0 3.0 4.0 5


Connection speed




Proper technical support

Customer care

Voice calls over Internet

Est. Rating Quality of Internet Service

Average Gov L&VL SME


92

3.8.8 Establishments Annual Expenditure on Broadband Internet Services

“How much does the establishment spend YEARLY for broadband Internet?”

The below figure represents the distribution of SME, V&L and Gov establishments expenditure for Broadband

Internet services across various spending ranges per year.

Figure 123: Establishments Annual Expenditure for Broadband Internet Services

0.00%

3.76%

48.12%

31.58%

12.03%

0.00% 0.00% 0.00%

4.51%

0.00%1.45%

30.43%

15.94%

23.19%

5.80%

1.45%0.00%

21.74%

0.00% 0.00%

8.11%

0.00%

13.51%

29.73%

8.11%10.81%

27.50%


1001 -4000 SAR 4,001-10,000 SAR 10,001-100,000 SAR

100,000-1 Million 1 to 5 million More than 5 Million SAR

Not Answered

SME% L&VL% Gov%


93

3.9 SME, L&VL and Government Websites

3.9.1 Presence of Websites

“Does the establishment have a website?” (yes, no, no but planning to have one soon)

14% of SMEs, 70% of L&VL and 88% of governmental establishments have a website.

Percentages for establishments not having a website but planning to do so are as follows x% for SME, y% for

L&VL and z% for Government establishments.

Figure 124: Percentage of Establishments Owning a Website

3.9.2 Establishments reasons for not owning website

“What are the reasons for not having a website?” (Multiple Choice)

Examining the figures below may suggest that limited understanding of benefits that internet can bring to

public and private sector organizations and respective clients/consumers exist.

Figure 125: Reasons for not owning a website (Multiple Choice)

57%

14%

70%

88%

0%

20%

40%

60%

80%

100%

Average SME L&VL Gov

% o

f Es

tab

lish

me

nts

% of Establishments owning a Website

2.4%

14.6%

78.0%

14.6%11.0%

7% 5%

49%

32%

4%

Do not use the Internet Do not have the experience to develop our website

The website is not important to our establishment

We do not know how a website would benefit our

establishment

The website is expensive to develop and we don’t have an

allocated budget for it

Reasons for Establishments not having a Website (SME and average across All establishment types)

SME Average across all establishments


94

“What are the available languages of your establishment‟s websites?”

Arabic followed by English are the dominant languages of establishments‟ websites.

Figure 126: Languages Used for Establishments' Websites (Multiple Choice)

3.9.3 Establishments Websites Hosting Location

“Where is your website hosted?” (One choice)

48% of establishments hosted their website at local ISP servers.

Figure 127: Establishments‟ Websites Hosting Location

94%

71%

92%83%

6% 4%

100%83%

Arabic English French Urdu

Languages Used for Establishments' Websites

SME L&VL Gov

31%

56%

13%

31%

56%

13%

46%

33%

21%

36%

48%

15%

At the establishment’s web server At the ISP’s servers At an International web-hosting organization

Website Hosting location for Establishments

SME L&VL Gov Average


95

3.9.4 Usage of Local & Generic Domains for Websites

“Please indicate your websites various domains” (Respondent could choose more than one if

establishment have more than one website or domain)

While governmental establishments used only local domains, L&VL and SMEs evenly used local and generic

domains for their websites. „.com.sa‟ and „.com‟ constitute almost half of the L&VL and SMEs websites‟

domains.

Figure 128: Establishments Websites various Domains

3.9.5 Establishments reasons for not owning website

“If your establishment does not own a local website domain (.sa), what are the reasons for

that?” (Multiple Choice)

For this multiple choice question “Local domain names are difficult to register” is the key reason for SME

establishment not owning a local website domain. For L&VL establishments it is spread across all reasons for

not owning a local website domain.


96

Figure 129: Establishments Websites various Domains

“What does the establishment provide through its website?” (Multiple Choice)

According to the findings Government establishments are the most active in providing variety of services

through their websites.

21%

50%

0% 0% 7% 21%40%

60%

20%

60% 60%

80%

31%

55%

10%

30% 34%

51%

Local domains are expensive

Local domains are difficult to register

I don’t know how or where to register

We have regional and international presence and generic domains

would such suit more our business

We are an international organization and as such

we follow the general guidelines of the mother

organization

No specific reason

SME L&VL Private Sector (Average)


97

Figure 130: Services provided through establishments website

8%

4%

6%

10%

14%

20%

25%

2%

18%

12%

10%

25%

55%

6%

29%

2%

13%

6%

9%

15%

32%

15%

0%

19%

32%

9%

30%

81%

21%

30%

0%

3%

9%

9%

14%

14%

17%

26%

43%

49%

57%

57%

71%

74%

77%

None of the above

Online payment

Online support through chat

Paid advertisements for other websites or organizations

Blogs

Customer support and after sale services

Free advertisements for other websites or organizations

Video conferencing links to scheduled events

Membership registration, members area, community features

Online ordering

Web-based Applications services

Newsletters

Information about services (products or services catalogue)

Remote access to employees e-mails

News/events calendar about establishment’s services

GOV

L&VL

SME


98

3.9.6 Advertising Methods Used by Establishments

“How does the establishment advertise their products or services?” (Multiple Choice)

Around 15% of establishments indicated that they do not advertise. Those that advertise, mainly advertise

through traditional methods. Non-traditional ICT related advertising methods are not yet well utilized by KSA

establishments.

Figure 131: Advertising Methods Used by Establishments

3.10 e-Banking

3.10.1 ICT Payment Methods Used by Establishments

“Does the establishment use any of the listed payment methods?” (Multiple Choice)

ICT based payment methods such as Online, ATM and IVR are not well utilized by KSA establishments,

though around 22% of establishments indicated using ATM on average. Large & Very Large establishments

are most inclined to use ICT services for payments compared with SMEs and government establishments.


99

Figure 132: ICT Payment Methods Used by Establishments Per Segment

3.10.2 Establishments use of internet payment methods

“Which of the below Internet payment methods does the establishment use? (Multiple choice)

Based on the below figure there remains significant opportunities for efficiency in payment methods through the Internet. More than 50% of SME do not pay over the Internet. At 33% L&VL establishments are the most active with using Internet Banking for payments.

Figure 133: Internet Payment Methods used by Establishments

2%16%

1%

81%

34%42%

11%

37%23% 18%

5%

73%

Online payment payment through bank ATM Payment through phone IVR (Interactive Voice Recordings)

We do not use any method mentioned above

ICT Payment Methods Used by Establishments Per Segment

SME L&VL GOV

53%

36%

7%

16%

20% 20% 20%

33%

4%

13%

2%

13%

25%23%

10%

21%

We do not pay over internet Through credit card Through special Internet payment cards

Payment through Internet banking



100

“Does the establishment provide e-payment facilities for its clients over the Internet or

through Internet banking?”

Only 11% of all establishments provide or 89% do not provide for e-payment facilities to their clients. L&VL

establishments are the most active in providing their clients/customers with such facilities.

Figure 134: Establishment providing e-Payment facilities

3.3%

15.8%

12.5%

11%

Not Providing, 96.7%



Not providing, 89%

SME

L&VL

Gov

Average

Establishments Providing E-payment Facilities to their Clients


101

“Why doesn‟t your establishment provide e-payment facilities for its clients over the

Internet?” (Multiple Choice)

As highlighted in the previous figure on average 89% of establishments dot not provide e-payment facilities

for its clients over the Internet or through Internet banking, because 37% believe there is no need for such

payment mechanism as the establishment is satisfied with their current manner of payments.

Figure 135: Reasons for Establishments not offering E-Payment Facilities for its Clients

“What are the various products or services that your establishment offers for sales through online payments over its website?”(Multiple Choice) The below percentages represent the percentage breakdown for products and service establishments offer online payment facilities for their clients. Although respective sample size (illustrative) it is important to note the types of services you should consider or other establishments are considering to offer through their websites. Online payment facility for services or bills such as sales of general merchandize, sales of information. advertisements and membership fees ranked highest in terms of online payments offered over establishment websites.

Figure 136: Products and Service available for online payments

2% 3%8%

18% 16%

5% 3%13%

34%

48%

3% 3% 6%0%

46%

3% 3% 9% 17%

37%

Establishment is not aware of e-payments services

Establishment is aware of e-payments but does not know

how to make use of them

Our clients do not trust such service

We do not trust payments over the Internet for security

reasons

There is no need for such payment mechanisms as the

establishment is satisfied with their current manner of

payments


0%

0%

0%

0%

1%

1%

0%

0%

2%

0%

3%

0%

2%

0%

11%

5%

6%

6%

6%

3%

3%

0%

0%

0%

0%

0%

3%

0%

6%

0%

2%

0%

1%

0%

4%

2%

3%

2%

5%

1%

Sales of information (Catalogues, research papers, etc.)

Sales of content (Multimedia, news, etc.)

Sales of software

Sales of IT hardware & electronics

Sales of General Merchandize

Web-based shared application services

Membership

Advertisement

Online Payment facility for Services or bills

Other



102

“How much is your estimate of ANNUAL revenue generated by services the establishment offers online?” For the small percentage of establishments offering online payment facilities to clients, the below figure shows percentage of revenues from online is the greatest for L&VL establishments across the three consolidated revenue ranges.

Figure 137: Annual Revenue for service offered online

64%

18%

0%

18%

67%

58% 58%

8%

20% 20% 20%

80%

upto 1 million SAR between 1 million and 100 Million SAR

More than 100 million SAR Not Answered

SME L&VL Gov


103

3.10.3 Establishments’ Usage of Online Banking

“Does the establishment use your bank‟s online banking services?”

On average 67% of establishments do not use online banking service. At 8% SME establishments are the least

active with using online banking services.

Figure 138: % of Establishments that Use Online Banking

“What does the establishment use online banking for?” (Multiple Choice)

For 33% establishments who use online banking, 89% of usage is for account and balance inquiries, while 51%

of them transfer money between local bank accounts and 45% for paying and managing bills.

Figure 139: Online Banking Services used by Establishments

92%

47%

63%

67%

8%

53%

38%

33%

SME

L&VL

Gov

Average

Does NOT use online banking services Uses online banking services

89%

37% 32%45% 51%

30% 8% 7%

Account and balance inquires

Applying for other banking

services

Managing bank account

(changing PIN, etc)

Paying and managing bills

Transferring money between

local bank accounts

Transferring money between

local & International

bank accounts

To buy and sell stocks

Other

Average across establishments


104

3.11 ICT Expenditure

3.11.1 Establishments' Annual ICT Expenditure For Investigated ICT Services & Products

“For the following Telecom & IT Services what is the Establishment average YEARLY

expenditure in SR?”

The figure below illustrates all establishments' annual ICT expenditure for investigated ICT services &

products.

0.89%

0.30%

2.07%

0.59%

23.67%

28.11%

21.89%

18.64%

3.25%

5.62%

3.85%

3.55%

0.30%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

71.89%

65.98%

72.19%

77.22%

SME% Data Services such as VPN, Managed Services, etc.

SME% Computer Equipment & Software

SME% Annual Licensing for Software

SME% Training for software and networking

SME Expenditure across various ICT Product and Services

Not Answered More than 20 Million 6 to 20 Million 1 to 6 Million

100,000 - 1 Million 10-001-100,000 1,000-10,000 Less than 1000


105

Figure 140: Establishments' Annual ICT Expenditure for Investigated ICT Services & Products

1.32%

0.00%

1.32%

5.26%

23.68%

27.63%

23.68%

28.95%

21.05%

23.68%

23.68%

17.11%

6.58%

11.84%

6.58%

2.63%

1.32%

3.95%

1.32%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

46.05%

32.89%

43.42%

46.05%

L&VL% Data Services such as VPN, Managed Services, etc.

L&VL% Computer Equipment & Software

L&VL% Annual Licensing for Software

L&VL% Training for software and networking

L&VL Expenditure across various ICT Products and Services



5.00%

0.00%

2.50%

5.00%

0.00%

2.50%

0.00%

0.00%

2.50%

2.50%

5.00%

12.50%

12.50%

12.50%

12.50%

15.00%

5.00%

12.50%

17.50%

7.50%

5.00%

10.00%

2.50%

0.00%

5.00%

12.50%

5.00%

0.00%

65.00%

47.50%

55.00%

60.00%

Gov% Data Services such as VPN, Managed Services, etc.

Gov% Computer Equipment & Software

Gov% Annual Licensing for Software

Gov% Training for software and networking

Gov. Expenditure across various ICT Products and Services




106

3.12 Bundled Services

3.12.1 Satisfaction levels, reasons and aspired service bundles

“What is the level of the establishment satisfaction with the bundled services offers?” (One choice) On average 18% of establishments do not know what bundled services and 28% are not subscribed to bundles services. For the 65% who are subscribed majority are satisfied establishment with the current bundled services.

Figure 141: Subscription Status and Satisfaction Level with Bundle Services

“If the establishment is not satisfied, what are the reasons?” (Multiple Choice) Upon investigation of previous figure it becomes apparent that a very small percentage of establishments were not satisfied with bundles services. However the key reasons for non satisfaction are:

Not good value for money Bad customer service understanding and support of bundles services Weak Technical Support Offers are difficult to understand

8% 10%

82%

3%

11%7%

0% 0% 0%

18%

25%

57%

7%

18%21%

0% 1% 0%

13%

48%

40%

8% 5% 5% 3%

10%

3%13%

28%

60%

6% 11% 11% 1% 4% 1%

I do not know what is bundled services offers

The establishment is

not subscribed to any bundled services offer

Subcribed to Bundled Service

Very satisfied Satisfied Neutral Unsatisfied Very unsatisfied Not Answered



107

“What are the services that the establishment wishes to be bundled together?” (Multiple Choice)

Key services SME, L&VL and Government establishments wish to bundle are:

ALL Establishments – Fixed Telephony, Internet Services and Mobile Telephony. SME – Fixed Telephony, Internet Services, Mobile Telephony and Electricity L&VL- Fixed Telephony, Mobile Telephony, Internet Services and Electricity Government – Internet Service, Fixed Telephony and Mobile Telephony

Figure 142: Aspired services for bundling

19%

12%

16%

4%

13%

7%3%

13%

0%

39% 38%36%

11%

30%

21%

8%

30%

0%

33%

20%

35%

3%

20% 20%18%

28%

3%

30%

23%

29%

6%

21%

16%

10%

24%

1%

Fixed Telephony Mobile Telephony

Internet Services TV subscription Electricity Water All of the above None of the above

Others

SME L&VL Gov. Average


108

3.13 Special Services

3.13.1 Penetration of Special Services at Establishments “Does the establishment use any of these services?” Respondents additionally asked about

usage for each service (Use the service, Don‟t Use the service, Don‟t know the service)

In general, special services have high usage levels in L&VL and Governmental establishments compared with

SMEs.

Figure 143: Usage of Special Services by Establishments

4%

19%

2% 3% 2% 0%4%

29%

45%

12%

28%

9%7%

17%23%

73%

28%33%

5% 5% 8%

19%

45%

14%

21%

5% 4%9%

Advanced free phone (800)

Direct Dialing Service Universal Access Number (9200)

Bulk SMS Mobile Virtual Private Network

(MVPN)

Push email Bill Split Service

Penetration of Special Services at Establishments



109

3.14 Issues and Complaint Handling

3.14.1 Issues with Service Providers and Destination of Complaints

"Has your establishment ever faced any of the following with your service

providers?”(Multiple Choice)

17% of establishments envisaged the illustrated complaints against their service providers. Discrepancy

between contract/advertised quality terms and offered services, in addition to inefficiency of customer care

were the major complaints.

Figure 144: Issues with Service Providers

“To whom did you report your complaints?” (Multiple Choice)

Customer care is the most common destination to place a complaint against service providers. 23% of

establishments faced issues with their service providers but did not complain.

Figure 145: Destination of Establishment Complaints

94%

1%

1%

2%

3%

72%

3%

12%

20%

21%

13%

15%

60%

75%

70%

60%

6%

24%

32%

31%

None of the above

The prices were not according to the ad or contract of the service provider

The service provider did not claim responsibility for the reason of the complaint

The customer care did not answer your complaints efficiently

The service quality you got was not what you were promised in the ad or contract of the service provider


43%

5% 0% 5%

38%14% 5% 5%

38%

81%

11% 6% 11%

54%

80%

23% 5% 5% 32%66%

Complaint was not Reported

I complained to the Consumer Protection

society

I complained to the Communications &

Information Technology Commission (CITC)

I complained to the management of the

company

I complained to customer care



110

3.14.2 How Complaints Against Service Providers were Handled

“How was your complaint handled?”

For complaints against service providers, “the customer support kept on referring us back to technical

support and vice versa without resolving the issue” and “We were promised to be called back soon on, but

never received a call” were the most eminent results for a complaint.

Figure 146: Status of Complaints by Establishments

0%

10%

5%

5%

0%

14%

0%

5%

10%

14%

48%

10%

29%

33%

10%

29%

48%

43%

3%

34%

14%

14%

20%

29%

26%

37%

46%

6%

30%

10%

16%

18%

17%

18%

30%

33%

It turned out to be a misunderstanding of the offering from our side

Our complaint was addressed and corrected

Other

I called the customer care but nobody answered the call

We were told to call back later on

No one addressed our complaint

We were told that problem is because of another service provider

We were promised to be called back soon on, but I never received a call

The customer support kept on referring us back to technical support and vice versa without resolving the issue



111

3.15 Investment

“Do you have plans for more organizational growth or expansion that need further

investment expenditure?”

Across all establishment type more than 55% of L&VL and Government establishment have plans for

organizational growth or expansion requiring further investment.

Figure 147: Status of Organizational Growth/Expansion needing investment

“What are the financial sources of planned establishment growth or expansion?” (Multiple

Choice)

Majority of private sector establishments prefer self financing for planned growth or expansion activities.

Figure 148: Financial Sources for Planned Growth/Expansion

YES, 24%

YES, 57%YES, 61%

NO, 76%

NO, 43%NO, 39%

Not Answered, 2% Not Answered, 1%Not Answered, 5%

SME L&VL Gov.

1%

84%

23%

10%0% 0% 0%0%

77%

19% 16%

0% 5% 0%

Governmental Finance

Fully self financed Look for partnership with

other organizations or investors

Look for partnership with banks and other

investors

The establishment will sponsor 70% and the rest from

others

The establishment willsponsor 50%

and the rest from others

The establishment willsponsor 40%

and the rest from others

SME L&VL


112

“In your opinion, how easy it is to find investors or bank loans to finance your planned

growth or expansion?”

Figure 149: Easiness of Finding Investors or Bank Loans for Planned Growth

3.16 Research and Development Expenditure

3.16.1 Spending on Research and Development (R&D)

“Does your establishment have a dedicated budget for Research & Development (R&D)?”

36% of establishments claimed that they have an R&D dedicated budget. Status of private establishments

R&D expenditure in KSA is compared to government establishment and establishments from other economies

is low. 82% of SME, 64% of L&VL and 38% of Governmental establishments do not have a dedicated budget

for Research and Development..

2%

28%

46%

12%10%

1%5%

37%

30%

21%

2% 5%4%

33%38%

17%6% 3%

Very easy Easy Neutral/depending on nature of projects

Difficult Very Difficult Not Answered

SME L&VL Private Sector Average

15%

82%

2%

34%

64%

1%

58%

38%

5%

36%

61%

3%

Yes No Not Answered



113

Figure 150: Establishments having a dedicated R&D Budget

“Q119. What best describes your R&D activities?” (Multiple Choice)

Generally speaking R&D activities are low across all establishments, with only 1% of establishments allocating

more than 6% of total revenue to R&D. R&D activities across SME establishments is almost non existent when

compared with L&VL and Government establishments.

Figure 151: R&D Status per Establishment Segments

53%

29%

13%

31%33%29%

20%

27%

17% 18%

23%19%

4%

8%10%

7%9%

17%

8%11%

1%

9%

20%

10%

2%

21% 20%

14%

0%

14%

10%8%

0%3% 3% 2%

0%3%

5%3%

0% 0% 0% 0%0% 0%3%

1%

0%

10%

20%

30%

40%

50%

60%


Do not need R&D

Do not have R&D

R&D could improve our establishment but we do not have enough budget for it.

Planning to have R&D in one-two years time

Have R&D activities but they are not that efficient

Have R&D activities but it has limited budget

Have good R&D activities

R&D is an important function of our establishment that has considerable allocation

On yearly basis establishment allocate up to 1% of total revenue to R&D

On yearly basis establishment allocate 1-3% of total revenue to R&D

On yearly basis establishment allocate 4-6% of total revenue to R&D

On yearly basis establishment allocate more than 6% of total revenue to R&D


114

“How many ICT related employee training courses did your establishment conduct or

participated within the past 12 months?”(One Choice)

Overall Government sector establishments are the most active in providing ICT training to their

employees. However on average 57% of establishment provide no training what so ever.

Figure 152: ICT related training participation Establishments employees

“How do you generally describe your ICT Training Policies” (Multiple Choice)

Upon investigation of the various ICT Training Policies use by establishment on average

53% “Train only new employees on the usage of the various software and hardware in the establishment and

only 22% usually recruit experienced personnel and do not train them. Government establishments are mostly

active across all ICT Training Policies.

Figure 153: Description of ICT Training Policies

93%

4% 1% 0% 0% 1%

67%

7%

18%

4% 3% 1%10%

3%

28%

10%

40%

10%

57%

4%

16%

5%

14%

4%

None 1 course 2 - 5 courses 6 - 10 courses More than 10 courses Not Answered


9%

32%25% 22%26%

60%

39% 42%48%

40%

72%

53%

17% 28%

47%

31%9%

40%

69%

39%

SME L&VL Gov. Averages across Establishment

Usually recruit experienced personnel and do not provide training

Train only new employees on the usage of the various software and hardware in the establishment

Encourage and sponsor our staff to gain training through specialized training courses

Training is part of the establishment philosophy and each department has to submit yearly budgets and plans for its ICT–related training needs


115

3.17 Research Collaboration with Universities

“Does your establishment engage in research collaborations with universities and other

academic institutions?”

At 53% Government establishments are the most active in research collaborations with academia. SME and

L&VL establishments have very little research collaborations with academia.

Figure 154: Status of research collaboration with Academia

“Q121. What sort of collaboration does your establishment have with universities or

academic institutions?” (Multiple Choice)

For the establishments that do have research collaborations with universities and academic institutions on

average the main form of collaboration is in the form of providing work experience programs for

undergraduate students (internships). Once again Government establishments are the most active across a

number of collaboration forms; especially with seeking consultancy services on various topics.

1%

94%

4% 0%9.2%

80.3%

10.5%0.0%

53%

38%

5% 5%21%

71%

7% 2%

Have Engagement Do not Have Engagement No, but establishment is considering sunch engagement

Not Answered



116

Figure 155: Types of Collaborations with Academia

3.18 ICT Promotion

3.18.1 ICT Promotion Initiatives Provided by Establishments

“What are the various initiatives that the establishment does to promote ICT?” (Multiple

Choice)

On average 47% of establishments have no initiatives for ICT. Sponsoring basic computer and internet

training for employees is the most common initiative for all establishments with Government establishments

the most active. Once again Government establishments are the most active across all initiatives to promote

ICT.

Figure 156: ICT Promotion Initiatives

100%

0% 0% 0% 0% 0%

57%43%

29% 29% 29%

0%

62%

29%

52% 48%

76%

5%

73%

24% 27% 25% 35% 2%

We provide a working experience program for

undergraduates graduation requirements

(internships)

We provide labs and facilities for student’s

research projects

We conduct combined seminars and workshops

on various issues

We have common projects for services and products developments

We seek consultancy from the university

academics and researchers on various

topics

Other


84%

13%

3% 3% 1% 0% 1% 0%

43%49%

12% 12% 9% 8% 7%1%

13%

75%

20%25%

35%

13%

33%

13%

47% 46%

12% 13% 15% 7% 13% 5%

No initiatives for ICT

We Sponsor basic computer and

Internet training to our employees

We Provide payment facilities to our employees to buy computers

We Sponsor local community

programs to train people on

computers and Internet

We Provide scholarships for

highly specialized ICT courses

We Have a dedicated program

that caters to raising public

awareness about various ICT products

We Organize and sponsor seminars

and workshops that handle

various ICT topics

We have Dedicated awards programs for ICT

achievements



117

4. Survey Findings - ICT Services and Technology Suppliers

ICT Services and Technology Suppliers are companies who are supplying the technologies and services to

Telecom Service Providers. Such technologies and systems include telecommunications infrastructure

hardware and software, solutions and services such as system integration, acceptance, maintenance, etc…

These national and international companies play a significant role in supplying end users (consumers) with

the latest computer devices (PC‟s, Laptops, PDA, Mobile Handsets, CPE, etc.) to benefit from the various

services offered by Telecommunication Service Providers. Locally such companies are classified as

“Technology Vendors/Supplier”, hence the use of Technology Vendor/Supplier is synonymous with ICT

Services and Technology Suppliers.

Figure 126, shows the key enabling role ICT services and technology suppliers play amongst various

stakeholders within the ICT Value Chain.

Figure 157: ICT Value Chain-ICT Technology & Services Suppliers


118

4.1 ICT Services and Technology Supplier Profile & Activities

4.1.1 ICT Services And Technology Supplier Profiles

“Where is the Location of the Establishment‟s Headquarter?”

“How many branches does your business have including the headquarter(s)?”

“How many international branches and offices do you have outside the Kingdom of Saudi

Arabia? (Including the Headquarter)”

Of the 13 companies representing the sample of ICT Services and Technology Suppliers; 12 have

headquarters located in Riyadh. On average ICT services and technology suppliers have 5 or less

branches including headquarter. 92% have international presence and more than half of them have

international presence in more than 15 countries.

Figure 158: Location & No. Employees of ICT Technology & Services Suppliers

“How many Employees (including Headquarter and branches)?” (exact and ranged

response)

39% of interviewed ICT services and technology Suppliers have between 60-499 staff working in KSA, while

54% have more than 500 staff.

62% of technology provider establishments are 100% owned by foreigners, 23% are 100% owned by Saudi

Nationals while 16% are joint ventures between Saudi and Non-Saudi owners. The result concludes that 77%

of interviewed technology suppliers are mainly directly controlled or managed by international companies.

92%

8%

Location

Riyadh

Dammam/ Khobar 54%39%

7%

Number of Employees

20 - 59

60 - 499

500 +


119

The interviewed ICT Services and Technology Suppliers have been present in KSA for 14 years on average

reflecting serious interest in the Saudi ICT Market

4.1.2 ICT Services and Technology Suppliers Lines of Activity

“What are the establishment‟s lines of activity?”

More than 62% of the interviewed ICT Services and Technology Suppliers provide „Software

integration/Business solutions‟, „Consultancy services‟, „Maintenance & asset management services‟ and

„Telecom core integration/solutions‟. 46% offers technical audits and 46% offer „Networking equipment retail‟

market is still reasonable

Figure 159: ICT Services and Technology Suppliers Line of Activity

“Which of the following general classifications best describes your company?”

For the available options a) ICT Technology Supplier (Products), b) ICT Services Supplier, c) ICT Solutions

Supplier (Both a) and b)) 85% of ICT Services and Technology Suppliers chose ICT Solutions Supplier.

“What are the technologies and or ICT services provided by your company for each of the following segments” (Technologies & ICT Services)”

15%

15%

23%

31%

38%

38%

38%

46%

46%

46%

62%

69%

78%

84%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Computer Equipment retail

Computer Equipment wholesale

Networking equipment retail

Telecom user equipment retail

Software development

Software retail

Telecom user equipment wholesale

Networking equipment wholesale

Telecom core equipment

Technical audits

Telecom core integration/ solutions

Maintenance & asset management …

Consultancy services

Software integration/ business …

% of Surveyed ICTST Suppliers

ICTST Suppliers Line of Activity


120

4.1.3 Company Registration Procedure Efficiency

“How many years have you been in the market?”

“How much time did it take to register the company from the date of application to final

approval?”

“How do you rate the procedures to register the establishment?”

Inquiry about the procedures and time needed to register the technology provider company did not yield any

conclusive results as most of the technology suppliers interviewed are more than 5 years old and did not recall

details of such activities.

4.2 Awareness of CITC and its Role

“Do you know what the role of the CITC is?” (Multiple Choice)

Awareness levels of CITC and its different roles are high among ICT Services and Technology Suppliers.

However, 15% of the interviewed were not aware of CITC‟s role in regulating the IT market and 46% of ICT

Services and Technology Suppliers falsely believed that CITC‟s role includes regulating the broadcasting

market. Some CITC roles; such as „increasing market competition‟, „consumer protection‟ and „monitoring

quality provided services‟, are not well known by ICT Services and Technology Suppliers.

Figure 160: ITC Technology & Services Suppliers Awarness of CITC Role

0%

100%

85%

46%

69% 69% 69%

0%

25%

50%

75%

100%

I do not know exactly

To regulate the telecom market

To regulate the IT Market

To regulate the broadcasting

market

To increase ICT market

competition

To protect ICT services

consumer

To monitor the quality of

provided services

% o

f Te

chn

olo

y Su

pp

liers

ICTST Suppliers Awareness of CITC Role


121

ICT Services and Technology Suppliers have low awareness about the business registration requirements.

Only 31% of respondents are aware of CITC‟s registration permits which deem any consequent rating to

permits efficiency as in-conclusive.

4.3 Marketing, Sales & Growth Activities

Figure 168 represents ICT Services and Technology Suppliers activities to promote their services to their BTC

customers. E-mails and company websites are the primary means of providing information and

communicating with their BTC customers.

4.3.1 ICT Services and Technology Suppliers products and services promotion activities

“(B2B)How does the establishment promote its products and services? For the following promotions means please rate the degree of utilization, 1=not utilized, 5=highly utilized “

“(B2C) How does the establishment promote its products and services? For the following

promotions means please rate the degree of utilization, 1=not utilized, 5=highly utilized)”

The Figure below represents ICT Services and Technology Suppliers promotion activities to their B2B

customers. Predominantly use of „Periodic technical/sales visits to customers‟ and „organizing local workshops

or specialized training courses and inviting potential customers to promote their services‟. Other promotion

means such as „Participation in local and regional specialized events‟ and „Organizing local events for service

and products launch‟ are moderately utilized.

Figure 161: Media Channels Utilization by ICT Services and Technology Suppliers to Promote Products & Services (BTC)

2.0

2.4

2.8

3.5

1.0

2.0

3.0

4.0

5.0

Newspapers, TV, etc. Specialized magazines Customer registrations through local websites

E-mails, websites

Uti

lizat

ion

exp

ress

ed

as

Scal

e (

1-5

)

Media Channels Utilization by ICTST Suppliers to Promote Products & Services


122

Figure 162: Promotion Means used by ICT Technology and Services Suppliers

3.43.5

4.2

4.5

1.0

2.0

3.0

4.0

5.0

Participation in local and regional specialized events

Organizing local events for service and products launch

Organizing local workshops or specialized training courses

and invite potential customers

Periodic technical/sales visits to customers

Pro

mo

tio

n M

ean

Uti

lizat

ion

Sca

le 1

-5

Promotion Means Utilization ICTST Suppliers


123

4.3.2 Market Penetration and Growth Strategies

“Using the scale of 1-5 where 1 is strongly disagree and 5 is strongly agree for each of the following market penetration and growth strategies, please tell me how much you agree with each strategy for KSA Market.”

ICT Services and Technology Suppliers consider several efficient market penetration strategies. „Providing

trade-in facilities to purchase old systems/products‟ has low utilization with only 39% of the interviewed

seeing value in such approach. “Efficient response to RFIs (Request for Information)‟ and „efficient

promotion‟ are the most widely utilized market penetration and growth strategies.

Figure 163: ICT Technology & Services Suppliers Utilization of Market Penetration Techniques

2.4

3.6 3.7 3.84.2 4.3

1.0

2.0

3.0

4.0

5.0

Providing trade-in facilities to purchase old

systems/products

Cross subsidizing initial system/solution cost by

expected scalability needs or long-term support contracts

Offering wide range of products and services to

suit all market entry levels

Providing pilot system/solution to

customers for testing purposes

Efficient promotion Efficient response to RFIs

Scal

e 1

-5

ICTST Suppliers Utilization of Market Penetration Techniques


124

4.3.3 Marketing budgets

“Approximately, what is your marketing budget as a percentage of total revenue? (Last Year, This Year, Next Year)”

“What percentage of your marketing budget is assigned to educating your various customer segments about the benefits of your products and services?”

The average marketing budget as percentage of total revenue, for the interviewed ICT Services and

Technology Suppliers has remained stable in 2009. The marketing budget is expected to reach 3.2% in 2010.

On average only 26.9% of marketing budget is assigned for educating customers about the benefits of the

companies‟ products and services.

Figure 164: Marketing and Customer Education Budgets


125

4.4 Consumer Needs and Demand Analysis

4.4.1 ICT products and services needs & demand analysis

“How do you assess the market need for the following services & products? 1=not needed, 5=highly needed” “How do you assess the market demand for the following services & products? 1=not demanded, 5=highly demanded”

According to the ICT Services and Technology Suppliers assessment of the KSA market, the expected growth

forecast is 20% as average growth for the all ICT services and products. Services and solutions segments have

the highest rank in terms of needs and demand (rated above 4), compared to the equipment and software

development and retail segments. Services and solutions segments are forecasted to grow by 23% on average,

while equipment, software development and retail segments is forecasted to grow by 18%. The highest

expected growth is given to Maintenance & asset management services‟ and „Telecom core integration/

solutions‟. ICT Services and Technology Suppliers estimated that „Software development‟ and „Technical

audits‟ would grow by 25% and 12% respectively. Except for „technical audit services‟ all investigated ICT

services were given high competition levels. Nevertheless, the services and solutions segments were given the

lowest average competition level (3.4) compared to the equipment and software development and retail

segments (4.26), while the overall competition level was rated at 3.85 over a scale of 5.


126

Figure 165: Current Need & Demand Levels for ICT Products & Services (ICT Services and Technology Suppliers Assessment)

2.9

3.2

3.2

3.3

3.3

3.4

3.5

3.5

3.5

4.1

4.2

4.2

4.2

4.4

3.7

2.9

3.4

3.5

3.7

3.5

3.4

4.3

3.3

3.7

4.3

3.5

3.9

3.9

0.0 1.0 2.0 3.0 4.0 5.0

Networking equipment retail

Software retail

Computer Equipment retail

Telecom user equipment retail

Computer Equipment wholesale

Telecom user equipment wholesale

Networking equipment wholesale

Telecom core equipment

Software development

Technical audits

Telecom core integration/ solutions

Maintenance & asset management services

Consultancy services

Software integration/ business solutions

Current Need & Demand Levels for Services & Products Rated by ICTST Suppliers

Demand Need


127

4.4.2 Products & Services Growth/Decrease Expectations

“What percentage growth or decrease do you estimate for the following products and

services?”

ICT Services and Technology Suppliers provided growth/decrease forecasts for several of their lines of

business. Software development, maintenance & asset management services, telecom core

integration/solutions, consultancy services and software integration/business solutions are forecasted to

increase by more than 20% in 2011.

Figure 166: ICT Products and Services Growth/Decrease (ICT Services and Technology Suppliers Assessment)

4.5 Initiatives to Increase Adoption & Usage

4.5.1 ICT Products and Services Initiatives

“What initiatives does your company utilize to increase usage of ICT products and services

across its various customer segments (B2B, B2C, B2G) (Open ended).”

Most of the interviewed ICT Services and Technology Suppliers have listed initiatives to increase ICT products

and services utilization across their various customers segments (B2C, B2B & B2G). However, few presented

relevant initiatives that will increase the ICT usage. The most relevant of such initiatives are e.g. cooperating

with universities, training university graduates (20 to 25 students per year), regularly promoting consumer


128

products, funding R&D in universities, and creating partnerships for Technology Access. The Figure below

details the list of initiatives and their target audience.

Figure 167: Initiatives to ICT products and services usage (Indicated by ICT Services and Technology Suppliers)

The ICT Services and Technology Suppliers mentioned „providing training for university graduates‟ as the

most popular initiative to increasing ICT usage of services and products. The students training capacity

appears to be low, as ICT Services and Technology Suppliers placed an average of 9 vocational or university

students in job training. However, the number of students placed in job training is expected to double in 2012

as per technology suppliers‟ survey findings.

Figure 168: Average Number of Students targeted for training by ICT Services and Technology Suppliers


129

4.5.2 Financial Facilities To Customers

“Does the establishment provide any of the following financial facilities to their customers?

1=Not provided, 5-highly provided and part of establishment policy (Multiple Choice)”

Even though 69% of ICT Services and Technology Suppliers provide their customers with flexible payment

options, they indicated low inclination towards offering their customers with cash facilities.

Figure 169: Offer of Financial Facilities by ICT Services and Technology Suppliers


130

4.5.3 Consumer Training Strategies

“Looking at the following training methods please tell me which of the following is used by

your company? (by segment, i.e B2C, B2B and B2G) (Multiple Choice)”

77% of interviewed ICT Services and Technology Suppliers own local training centers for their products and

services and provide frequent training workshops on their products and services, while 62% provide online

training. These statistics reflect ICT Services and Technology Suppliers trend towards using updated training

means.

Figure 170: Training Strategies Adopted by ICT Services and Technology Suppliers

4.6 Effectiveness of the IP protection laws in KSA

“In general what is the effectiveness level of Intellectual Property Protection laws in KSA for

ICT products?”

In general, ICT Services and Technology Suppliers gave the following rating for effectiveness of „IP protection

laws‟ in KSA.

31%

38%

54%

54%

54%

62%

62%

77%

77%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Providing training to Sales Reps at Retail facilities

We only provide on spot training for the products/services at our premises

Viral Training (Word of Mouth)

We own a regional training center for our products and services

We have strategic partnership with a local/regional training center for our products and services

Training at customer premises is mainly part of the delivered products

We provide online training

We own a local training center for our products and services

We provide frequent training workshops for our products and services

Training Strategies Adopted by ICTST Suppliers


131

Figure 171: Effectiveness of the IP protection laws in KSA as Perceived by ICT Services and Technology Suppliers

4.6.1 Rating Regulatory Performance

“How do you rate the effectiveness of the telecom regulations in the following areas? “

In general, ICT Services and Technology Suppliers considered telecom regulation moderately effective in

promoting market competitiveness (average rate 3 over a scale of 5). Regulation effectiveness is higher in

areas such as Mobile Market and low in areas such as fixed market. The „Fixed Market Competitiveness‟, the

„ICT Consumer Rights Protection‟ and the „Wholesale Market Competitiveness‟ were given the lowest average

rate 2.2, 2.5 and 2.9 respectively.

Figure 172: ICT Services and Technology Suppliers Rating Regulatory Performance


132

4.6.2 Implementation Channel for Solutions

“Which of the following delivery methods apply to your company when providing services to

Telecom Service Providers and other ICT Service Providers?” (Multiple Choice)

A majority of 85% of ICT Services and Technology Suppliers implement their solutions directly through their

employees; while 69% of them outsource the implementation work to local companies. On the other hand,

46% of interviewed ICT Services and Technology Suppliers exclusively outsource their implementation to

regional and international companies.

Figure 173: ICT Services and Technology Suppliers Services Delivery


133

4.7 Products/Services Life Cycle Forecast

“Please tell me where you believe each of the following products and services are on their

Product Lifecycle”

ICT Services and Technology Suppliers were asked to position various ICT services and products along the

typical product life cycle chart. The figure reflects the ICT Services and Technology Suppliers view on the

development needs to further increase levels of ICT services adoption and usage.

Figure 174: ICT Services and Technology Suppliers Segmenting ICT Services along the Product Life Cycle


134

4.8 Adoption forecast for the short term

“Can you please describe the future products & services of the establishment?” (Open Ended)

ICT Services and Technology Suppliers provided a list of their future services that will be supplied in KSA and

their perceived effects on the market.

Figure 175: Forecast on Technologies Adoption (ICT Services and Technology Supplier Assessment)

4.9 Research and Development Activities

“What is the assigned budget to the research and development in your establishment for KSA

market?”

Most of the ICT Services and Technology Suppliers in KSA have international presence and seem to not have

interest or plans to customize R&D investments within KSA market.

Data center virtualization

Unified communications and IP Multimedia Sub-system (IMS)

Service oriented architecture (SOA) and cloud computing

LTE, WiMAX and Wireless broadband

FTTH and IPTV,

100 Gigabit DWDM transmission


135

4.10 Growth Forecasts “Based on your companies experiences please tell me approximately by what percentage

(up/down) you believe the following market segments ICT spend will increase/decrease for

the years 2009, 2010, and 2011.”

ICT Services and Technology Suppliers estimate a high growth of ICT expenditure (7% in average) in KSA

over 2009-2011 period span. The highest growth is forecasted for Businesses (9%), Government (8%), and

(6%) for households. The lowest growth was forecasted for Individuals (4%). On a parallel course, ICT services

providers‟ expenditure growth is estimated at 6.7%. These figures indicate a sustained development of the ICT

market.


136

5. Service Provider Interviews - Current and Future Services

The following sections focuses on the analysis of current and future (new) ICT services expected to emerge in

the Kingdom of Saudia Arabia. The new services listed in both sections are forecasts based on interviews with

Telecoms Service Providers and ICT Services and Technology Suppliers. The forecasts include different types

of value adding products, services and solutions that individuals, households, private and public

establishments may expect to see, adopt and use in the near future.

Since both national and international ICT Services and Technology Suppliers play an important role19 with

supply/demand side factors (Telecommunication service providers and various consumer segments;

individual, household, private and public establishments) the CITC ICT Market Research has included this

section to summarize all relevant plans and developments for our interested readers.

5.1 Current ICT Services This section aggregates the key findings of interviews and secondary research of the key telecommunication

services currently offered by Service Providers across Saudi Arabia.

Figure 176: Current ICT Services

19

The supply of turnkey systems, solutions, integration and consultation services to operators, public and private establishments and supply of end

user devices (handsets, laptops, CPE, etc.)


137

5.2 Future ICT Services

The section lists and briefly analyzes the futures services expected to emerge, be adopted and used by various

consumer segments across Saudi Arabia. The list and related information below represents the consolidated

insights of all Service Providers operating in Saudi Arabia.

5.2.1 List of Future ICT Services

Figure 177: Future ICT Services


138

6. Further Reading

To further broaden your understanding of the ICT Market in Saudi Arabia CITC welcomes all readers to review the following report readily available on the CITC website:

CITC ICT Market Study 2009/2010 – Research Methodology and Practices CITC Internet Usage Study CITC Quarterly Indicators CITC Universal Service Fund Study

Reports planned for publishing in 2011:

CITC Analysis of New Trends and Development in the ICT Market


139

7. Thank You Letter

To: All participants in the ICT Market Study (Service Providers, Public and Private Establishment, Individuals/Households, ICT Services and Technology Suppliers) Re: Your participation in the CITC Information and Communication Technologies (ICT) Market Study

Dear Participant,

Thank you for taking part in shaping the future of Saudi Arabia‟s ICT Industry by sharing your experiences and feedback through the most comprehensive ICT market study conducted to date. Your feedback and views on the various dimensions of the ICT market value chain will assist the Communications and Information Technology Commission, a Saudi Arabian government agency committed to ensuring a fair competition in a transparent regulatory environment to best serve the needs of all ICT consumers. The information and insights from this study are already being used by CITC to adapt ongoing efforts to meet the needs of individuals, private and public establishments using ICT services and technologies across Saudi Arabia. CITC welcomes all comments or suggestions helpful in improving the usefulness of this and future reports to

be sent to [email protected]. For information and updates about the activities of CITC please

register at www.citc.gov.sa.

Thank you for your interest, time and involvement. Yours sincerely, Communications and Information Technology Commission

mailto:[email protected]

http://www.citc.gov.sa/

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