In accordance with the Communications Law (the Law), its Executive Regulation (the Regulation), and the Organization of the Communications and Information Technology Commission (the Organization), which includes the powers granted to the Commission, including those related to financial charges for telecommunications services, and based on the decision of the Council of Ministers numbered (96) dated 4/4/1440 AH: The Commission issues this document to regulate the provisions related to the financial charges collected by the state and the Communications and Information Technology Commission (the Commission) for the telecommunications service licenses issued by the Commission and the related services, with the aim of achieving alignment with best financial practices, enhancing competitiveness in the telecommunications sector, and stimulating investment therein.

The provisions of these regulations apply to service providers in the telecommunications sector licensed by the Authority.

• 1-4 The annual financial fees are as follows:

  • 1-1-4 An annual financial fee charged by the state for providing telecommunications services commercially, amounting to (10%) ten percent of the net telecommunications revenues.

  • 2-1-4 An annual financial fee for obtaining the license, charged by the Authority, amounting to (1%) one percent of the net telecommunications revenues.

  • 3-1-4 Financial fees for the allocation and use of numbering resources, in accordance with the Authority's regulations.

  • 4-1-4 Financial fees for the allocation and use of the radio spectrum, in accordance with the Authority's regulations.

  • 5-1-4 Other financial fees for the works and services provided by the Authority, in accordance with its regulations.

• 2-4 The annual financial fees shall be applied in accordance with Article No. (4-1) above to all licensed entities providing telecommunications services.

• 4-3 Service providers in the telecommunications sector are obligated to pay the financial fees for the works and services provided by the Authority for the issuance and renewal of licenses and the issuance of permits, as detailed in Section (9) below.

• 4-4 The financial fees for the works and services provided by the Authority are non-refundable.

• 1-5 The application of the financial counterpart mentioned in paragraph (4-1-1) shall be gradual for any new licensee to build a new telecommunications infrastructure network, according to the following percentages and durations:

  • 1-1-5 (2.5%) Two and a half percent in the first financial year, or a portion thereof.

  • 2-1-5 (5%) Five percent in the second financial year.

  • 3-1-5 (10%) Ten percent annually in the third financial year and thereafter.

• 1-6 Every licensee must obtain the prior approval of the Authority when including any financial amount as rights for external and local telecommunications companies within the (cost items) referred to in Article (2-1). 

• 2-6 The inclusion of the costs of wholesale infrastructure sharing services and the costs of written-off debts within the cost items referred to in Article (2-1) shall occur at the end of the financial year.

• 3-6 Every licensee must obtain the prior approval of the Authority before excluding any item from the operational revenue of unlicensed services or any other revenues from the financial consideration.

1-7 All dues to the state and the dues of the Authority represented in the financial compensation for providing commercial telecommunications services and the annual financial compensation for obtaining the License and other dues shall be payable within a maximum period of thirty (30) days from the date of issuance of the invoice, regardless of whether there is a dispute between the Authority and the licensee. The licensee may, upon proving their entitlement to some of the amounts paid, deduct them from subsequent payments.

2-7 The Authority shall determine the method of issuing invoices for the financial compensation, the method of payment, the periods of issuance, and the payment details that the licensee is obligated to comply with after being notified, unless otherwise specified according to the Authority's regulations.

The national numbering plan specifies the provisions and rules regarding the financial counterpart for the allocation and use of numbering resources. The financial counterpart for the allocation of numbers and the annual financial counterpart for their use are published on the Authority's website.