Regulations for the Classification of Licenses for Telecommunications Services

1. Introduction

  • In accordance with the Telecommunications Act (Act) and its Bylaw (Bylaw), Communication and Information Technology Commission (CITC) Ordinance (Ordinance) and CITC powers therein provided for, including those related to determining the classifications of telecom licenses and the scope of each type; Whereas CITC had previously set the regulatory framework for licensing fixed and mobile services on the basis of adopting the "Technology-neutral and Service-specific" methodology as a general regulation for licensing in the Kingdom, in which it was indicated that CITC will decide, within a certain period of time, and after reviewing the experience gained, to move to the unified licensing method through which licenses are issued on the basis of technologyneutral and service- neutral (i.e. unified licenses or related licenses). CITC then adopted the regulatory framework for classifying licenses, to serve as a basis for the provision of Facilities-Based "Unified License" (ULs)" to selected licensed service providers, to transition to "technology-neutral and service- neutral Method". Based on the development of telecommunications markets in the Kingdom, and the powers assigned to CITC according to its statutes.

  • Therefore, this "Regulations for the Classification of Licenses for Telecommunications Services" document adopts an updated approach of "technology-neutral and service- neutral" methodology in the Kingdom, which requires amending the classification and scope of licenses that can be issued by CITC. Further, the Bylaws authorize CITC to issue different types of telecommunications licenses, with the aim of creating a more effective and compatible regulatory environment with international best practices, in order to raise the level of competitiveness, increase the market transparency, and attract more new investments in the telecommunications sector.

2. Definitions

  • The terms and expressions defined in the Telecommunications Act, its Bylaws and other CITC’s statutes shall have the same meanings when used in this document and its enclosed annexes. Also, the following terms and expressions shall have the following meanings assigned thereto unless the context requires otherwise:

    • 2-1 "Regulations for the Classification of Licenses for Telecommunications Services" The regulation document concerned with clarifying the licensing structure issued by CITC, according to the Telecommunications Act and its Bylaws, and includes the scope of services and general conditions thereof.

    • 2-2 "Individual License": The license that is issued by CITC and allows a specific service provider to provide telecommunication services according to the conditions provided for in the license.

    • 2-3 "Class License": A telecommunications license issued by CITC that authorizes all qualified telecommunications service providers within the class defined in the license to provide telecommunications services in accordance with the conditions specified in the license.

    • 2-4 "Facilities-Based Unified License (UL)": The individual license that allows the licensed service provider to provide any telecommunication services using any type of technology and infrastructure capable of providing the required service.

    • 2-5 "Infrastructure Wholesale Service Provision License": The individual license that allows the service provider to establish, own, operate and maintain elements of telecoms infrastructure and provide them for other service providers who obtain individual licenses and any other entity that CITC excepts according to its absolute discretion.

    • 2-6 "Carrier Services Provision License (CSP)": The individual license that allows facilities companies such as: electricity, water, railways and other facility service providers to provide their excess telecommunications infrastructure capacities (for example optical fibers, towers and ducts) for other Licensees obtaining individual licenses.

    • 2-7 "General Class License (GCL)": A Class License that allows a service provider to provide any telecommunications services permitted under such license.

    • 2-8 "Facilities-Based Unified License Service Provider": Any service provider who holds (UL).

    • 2-9 "Infrastructure Wholesale Services Provider": Any service provider who holds an Infrastructure Wholesale Service Provision License.

    • 2-10"Carrier Service Provider": Any service provider who holds (CSP).

    • 2-11"General Class License Service Provider" Any service provider who holds (GCL).

    • 2-12"Service Permit": CITC service permit to provide services specified in the respective (GCL).

    • 13"Service Regulations": The relevant regulations for each specific service, according to (GCL) services scope.

    • 2-14"Data Services": Point to point services or the switched data network services, which include, but not limited to: Broadband Services, VPN, Digital Leased Lines, IP, Asynchronous Transfer Mode (ATM), Frame Relay, Wavelength-Division Multiplexing services, International Data Gateway Services, and International Data Traffic Transit.

    • 2-15"Subscriber": Any person/entity that is a party to a valid contract or similar agreement with a service provider for the purpose of providing telecommunications services.

    • 2-16"End User": The final Beneficiary of telecommunications services, including individuals and public (governmental) and private agencies.

    • 2-17"Limited Mobility": Applications where the user's terminal geolocation may be variable, but it must be fixed during the connection.

    • 2-18"Fixed Services": Electronic telecommunications services through the limited mobility or fixed devices or stations that allow the subscriber to receive telecommunications from any device or station, or communicate with them.

    • 2-19"Mobile Services": Wireless telecommunications services that allow the full mobility of the user devices (wireless stations) to allow the subscriber to receive telecommunications from any device or station, or connect with either of them within the limits of the network.

    • 2-20"Current obligations": Existing and enforceable obligations of the Licensee upon the issuance of these Regulations, and prior to their entry into force, in accordance with his current licenses or CITC Statutes, including but not limited to: Any obligations related to the quality and conditions of the service, numbers uses, numbers portability, roll-out of service and network, universal services obligations, right of way, users’ rights, use of telecommunications and equipment devices, tariff of wholesale and retail services, emergency services, and service continuity and recovery obligations in disaster and emergency situations.

3. Scope of Application

This Regulation applies to licensed telecom service providers.

4. Classification of Licenses for Telecommunications Services

  • 4-1 Those who wish to provide telecommunications services to the public must obtain a license from CITC that authorizes the same to provide the service to the public, according to CITC's regulations.

  • 4-2 The Bylaw authorizes CITC to issue two types of telecommunications licenses, namely: Individual licenses and Class licenses.

  • 4-3 According to the above considerations; Individual licenses have been classified into three types:

    • 4-3-1 "Facilities-Based Unified License"(UL):

    • 4-3-2 "Infrastructure Wholesale Service Provision License":

    • 4-3-3 "Carrier Services Provision License" (CSP).

  • 4-4 There is one type of class licenses, which is "General Class License" (GCL)

5. Scope of Facilities-Based Unified License Services

6. Scope of Infrastructure Wholesale Service Provision License

  • 6-1 Infrastructure Wholesale Service Provision License allows Infrastructure Wholesale Services Provider to establish, own, operate, maintain elements of telecommunications infrastructure and provide them, according to Article (6-2); This is according to the class covered within the scope of the license issued to Infrastructure Wholesale Services Provider from the classes below:

    • 6-1-1 Class (A): Towers and masts.

    • 6-1-2 Class (B): Small cells, distributed antenna systems (DAS), in-building solutions (IBS) and wireless access points (WAP).

    • 6-1-3 Class (C): Dark fibers and ducts.

    • 6-1-4 Class (D): Fixed wholesale data connectivity, including interconnection services and active fixed access services.

    • 6-1-5 Class (E): Landing Stations and International Cable Capacities Services.

  • 6-2 Infrastructure Wholesale Service Provision License allows the provision of services to the following entities:

    • 6-2-1 Facilities-Based Unified License Service Providers.

    • 6-2-2 Other Infrastructure Wholesale Services Providers.

    • 6-2-3 Carrier Service Providers.

    • 6-2-4 Any other party excluded by CITC according to its absolute discretion.

  • 6-3 Infrastructure Wholesale Services Provider may not sell any services to General Class License Service Providers or end users.

  • 6-4 According to paragraph (6-2-4); Infrastructure Wholesale Services Provider of class (A) "Towers and Masts" can provide their services to other entities, provided that the following are adhered to:

    • 6-4-1 Notifying CITC via an official letter (15) fifteen working days before providing the service. CITC shall have the right to deny the provision of service according to its absolute discretion and to achieve the objectives of the telecommunications sector according to Article (3) of the telecommunications Act.

    • 6-4-2 The telecoms towers are mainly established for the purpose of providing telecommunications services to the public through them, and the Licensee shall not be allowed to build new towers for the purpose of providing a service to other entities without the presence of a telecommunication service provided to the public through the tower itself.

    • 6-4-3 The priority of providing services shall be to the entities contained in the paragraphs (6-2-1), (6-2-2), (6-2-3), and that providing the service to other entities does not impact the possibility of sharing the towers between telecommunications service providers.

  • 6-5 No licensed Infrastructure Wholesale Services Provider or any (sub - or main) commercial entity registered under the Commercial Registration (CR) of the Licensee may obtain (UL), (CSP) or (GCL).

  • 6-6 Infrastructure Wholesale Services Provider must adhere to the Regulations for the Provision of Wholesale Services for Infrastructure.

7. Scope of Carrier Services Provision License

  • 7-1 The Carrier Services Provision License allows utilities companies such as: electricity, water, railways and other utility service providers to provide their excess telecommunications infrastructure capacities (for example optical fibers, towers and ducts) for other Licensees obtaining individual licenses in accordance with Article (7-2).

  • 7-2 The Carrier Services Provision License allows the provision of services to the following entities only:

    • 7-2-1 Facilities-Based Unified License Service Providers.

    • 7-2-2 Infrastructure Wholesale Services Providers.

    • 7-2-3 Other Carrier Service Providers.

  • 7-3 The Carrier Services Providers may not sell any services to General Class License Service Providers, or end users.

  • 7-4 The Carrier Service Providers may enter into contract with those with an individual license to obtain the capacities and complete the services they provide.

  • 7-5 No licensed Carrier Service Provider or any (sub - or main) commercial entity registered under the Commercial Registration (CR) of the Licensee may obtain (UL), Infrastructure Wholesale Service Provision License, or (GCL).

  • 7-6 Carrier service providers must adhere to Regulations for the Provision of the Carrier Services (CSP).

8. Scope of (GCL) services

  • 8-1 The GCL allows the provision of one or more services from the list of services below, which are included in the scope of the license issued to General Class License Service Provider, taking into account what was stated in Article (8-2):

    • 8-1-1 Internet services.

    • 8-1-2 Mobile Virtual Network Operators Services (MVNO).

    • 8-1-3 Internet of Things Virtual Network Operator Services (IoT-VNO).

    • 8-1-4 Broadband Satellite Services.

    • 8-1-5 Global Mobile Personal Communications Services (GMPCS).

    • 8-1-6 Operation Systems and Networks of Global Mobile Personal Communications Services (GMPCS-O).

    • 8-1-7 Mobile Communication Service Onboard Aircraft in KSA.

    • 8-1-8 Internet Services Provision to Aircraft in the Airspace of KSA

    • 8-1-9 Short Messaging Service (SMS).

    • 8-1-10VSAT System Communication Services.

    • 8-1-11 Internet Exchange Point (IXP).

    • 8-1-12Virtual Voice Services (VVSP).

    • 8-1-13 IoT Services Using License Exempt Frequency.

  • 8-2 Unless otherwise specified in the service regulations, General Class License Service Provider are allowed to provide permitted services to the end users.

  • 8-3 No licensed General Class License Service Provider or any (sub -or main) commercial entity registered under the Commercial Registration (CR) of the Licensee may obtain (UL), Infrastructure Wholesale Service Provision License, or (CSP).

  • 8-4 General Class License Service Provider must adhere to the Regulations of the General Class License (GCL) as well as the regulations for each service they are permitted to provide.

9. General Conditions

  • 9-1 The Arabic version of these regulations and any other regulations related hereto is the official version. In the event of a conflict between the text of the official version written in Arabic and the translation into other languages, the Arabic version shall prevail.

  • 9-2 Licensed Service Providers must adhere to all the relevant Kingdom's regulations issued by other government agencies.

  • 9-3 As per the terms and conditions set forth in the Telecommunications Act and its Bylaws, All licensed service providers shall not participate in any practices that constitute abuse of market force as a result of the creation of a dominant position in the market.

  • 9-4 Emergency Calls: Unless otherwise specified in the Service Permit, all licensed service providers, as per their services scope, must transfer all emergency calls to the relevant public authorities responsible for processing emergency calls, regardless of the user's subscription to the service providers or not.

  • 9-5 Emergency services: CITC requires licensed service providers to provide emergency services according to their scope of services, including: call information, the caller's location and information, the activation of local roaming, and resource sharing based on developments and technology in the market. In cases of emergency and/ or disasters determined by the government, the Licensee must, according to its scope of services allow the use of its services or facilities by the relevant government agencies, and it is entitled to compensation for this use from those agencies.

  • 9-6 Continuity of services in emergency cases: Licensed Service Providers, according to their services, must work to ensure the continuity of services in all circumstances and conditions, and to develop plans and procedures to ensure the same.

  • 9-7 Interconnection: Licensed Service Providers, in accordance with their scope of services, shall ensure that their infrastructure is interoperable and interconnected with the networks of other Licensed Service Providers, in addition to bearing the costs of any required adjustments to its infrastructure in order to maintain this operation and interconnection.

  • 9-8 The Licensee, within the scope of its services, must activate the interconnection within its network, and link it to any other networks of any of the licensed service providers in the Kingdom, according to CITC’s regulations as required.

  • 9-9 Subcontracting: Service providers, who obtained the individual license, after obtaining the prior written approval from CITC, may sub-contract with any other people to perform the tasks required by the Licensee with the aim of supporting the provision of telecommunication services under the license issued to the same. As per CITC’s regulations, subcontracting shall not affect any obligations under the licensing regulations issued to the Licensee, and all the obligations resulting from this license in this case remain the responsibility of the Licensee alone.

  • 9-10Numbers: CITC allocates the required numbers by the Licensee, according to the scope of its services, for the purpose of providing licensed services according to the conditions stipulated in the National Numbering Plan and decisions that regulate the process of allocating numbers. The Licensee must use these numbers in accordance with CITC’s statutes as well as any decisions and regulations issued by CITC on the regulation of the numbering process.

  • 9-11Signal points codes: CITC allocates the signal point's codes required by the Licensee according to the scope of its services to provide licensed services, according to the conditions stipulated in the guidelines and the signal point's codes plan, and as per CITC’s regulations.

  • 9-12Security requirements: The holder of individual license, or any other license determined by CITC, must ensure the provision of the technical capability in its equipment, devices and networks, through which the security monitoring devices and their equipment can be linked to these networks. The security authorities shall bear the costs of providing the devices and equipment of the aforementioned security monitoring programs, the costs of operating and maintaining them, and costs of providing and operating the necessary interconnection circuits for the same.

  • 9-13 Preparation of periodic reports: The Licensee must submit periodic reports to CITC, in addition to providing any other information requested by CITC, and CITC determines the required reports and information, when and how to submit them.

  • 9-14 Payment of Fees: The Licensee must pay the fees to CITC, according to the "Regulations of the Fees for the Telecommunications Services" and any updates that occur thereto.

  • 9-15 The frequency spectrum: The Licensee must obtain a separate frequency license when needed by CITC, and any dedicated frequencies must be used for the purpose of providing the specific licensed services only.

  • 9-16 The geographical scope of the license: Licensed Service providers must provide licensed services within the Kingdom's territory.

  • 9-17 Revocation of License: If the Licensee intends to stop providing all services, it must submit a written request to CITC or through the electronic systems of CITC to approve the cancellation of its license. Before stopping its services according to the relevant CITC’s statutes, the licensed service provider must settle all the obligations due with CITC and any other affected party, including its subscribers.

  • 9-18 Violations and fines: Violations and fines related to licensing or permit are dealt with according to CITC’s statutes.

  • 9-19 Re-assignment of the license:

    • 9-19-1 The Re-assignment of the license is subject to the provisions of Article No. (23) of the Telecommunications Act and its Bylaws.

    • 9-19-2 The Licensee may assign the license, after obtaining the prior approval of CITC, provided that the assignee fulfills all regulatory, technical, financial and commercial requirements in order to obtain the license, according to CITC’s decision and according to its statutes.

10. General Provisions

  • 10-1 CITC’s Board of Directors may issue other unified licenses in the future according to this regulation, and subject to the Telecommunications Act and its Bylaws.

  • 10-2 CITC Governor issues the following regulations, and approves the amendment thereto, if necessary:

    • 10-2-1 Regulations for the Provision of Wholesale Services for Infrastructure.

    • 10-2-2 Regulations for the provision of the Carrier Services.

    • 10-2-3 Regulations of the General Class License.

  • 10-3 CITC's Governor issues the services regulations included within the scope of the (GCL), and any other related regulations, including for example: (National Internet Exchange Regulations) and approves the amendment thereto, if necessary:

  • 10-4 CITC's Governor may issue the following licenses, and take other relevant procedures, for example, but not limited to: Renewing, canceling, updating, and assigning them as per what was stated in this regulation, and in a way that does not contradict with the Telecommunications Act and its Bylaws:

    • 10-4-1 Infrastructure Wholesale Service Provision License.

    • 10-4-2 Carrier Services Provision License (CSP).

    • 10-4-3 General Class License (GCL), in addition to the Service Permit to provide the services included within the scope of (GCL) services.

  • 10-5 CITC reserves its right to reject any request to obtain a unified license that does not consistent with the goals of the sector as stipulated in Article (3) of the Telecommunications Act, or any other related regulations.

  • 10-6 According to its absolute discretion, CITC may impose the obligations of quality of service, network coverage, or geographical coverage indicators on telecommunications service providers.

  • 10-7 This Regulation is subject to CTIC periodic review, and subject to update as CTIC deems appropriate in accordance with its statutes. Updates are approved by CITC's Governor.

  • 10-8 CITC may cancel or suspend the license or permit according to its statutes, if the Licensee or Permit Holder commits any act that justifies such action.

  • 10-9 The license may be renewed for a similar period, according to CITC’s procedures and its absolute discretion.

  • 10-10 Licensed Infrastructure fixed telecommunication service provider are subject to appendix (A).

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