The Communications and Information Technology Commission (CITC) announced that it has awarded licenses to two new mobile virtual network operators (MVNOs), bringing the total number of mobile telecom companies inside the Kingdom of Saudi Arabia to seven.
The new companies to be given the licenses, after winning a competition announced by CITC in February 2021, are “Integrated Telecom Mobile Company” (ITC Mobile) and “Future Networks Communications” Company, doubling the number of MVNOs inside the Kingdom. In 2014, CITC awarded the MVNO licenses to Virgin Mobile KSA and Etihad Jawraa.
During the licensing ceremony Governor of CITC Dr. Mohammed Al-Tamimi mentioned that licensing MVNOs comes in line with the Commission’s plans to stimulate the investment environment for Saudi Arabia’s telecom sector. “At CITC, we aim to enhance the level of competitiveness in the sector, and improve user experience, by facilitating additional service providers,” he said.
Dr. Al-Tamimi also highlighted telecom service providers as important partners in transforming Saudi Arabia into a digital society, a key component of Vision 2030, who can contribute to innovation in telecom, mobile data and internet services.
Companies with MVNO licenses can provide users with services, including voice calls, internet, SMS, voicemail, media services and more, without owning any towers or frequencies. The provision of these services depends on the MVNOs renting or purchasing capacities from service providers with infrastructure, and then providing services to subscribers.
The granting of MVNO licenses to two new market entrants reflects the level of competitiveness in Saudi Arabia’s ICT sector, which enjoys attractive advantages for local and international investors, including robust infrastructure, high user penetration and a clear strategy.