H.E. Dr Abdulrahman Al-Jafary, Governor of the Communications and Information Technology Commission (CITC) of Saudi Arabia, delivered the keynote speech at the Telecommunications and Media Forum in Bahrain in May 2009. He discussed Saudi Arabia's efforts to develop its ICT sector through regulatory reforms by CITC, including introducing competition in mobile and fixed services. He also highlighted key challenges facing regulators like developing broadband strategies, optimizing spectrum use, encouraging local content, and expanding rural networks through cooperation. Regional cooperation was emphasized as important to address common challenges in developing the information society.

1. Keynote speech of
,H.E. Dr Abdulrahman Al-Jafary
Governor of
the Communications and Information
(Technology Commission (CITC
Kingdom of Saudi Arabia
TELECOMMUNICATIONS AND MEDIA FORUM
International Institute of Communications
Manama – Bahrain
May 2009 5-6

2. Excellencies,
Distinguished colleagues,
Ladies and Gentlemen
I am delighted to be with you today at this
important forum, which aims to shed light on one of the
most important trends in communications and
information technology sector. Broadband services will
contribute to the development of the information
society. In my speech, this morning, I will focus on
regulatory aspects, as one of the main pillars enabling
broadband network rollout and service offerings.
Today, the world is experiencing a deep financial
crisis, leading to a global economic slowdown, which is
affecting all sectors of development. However, we are
glad to note that the rapid development of ICT sector is
continuing, making it one of the least affected by the
global economic crisis. This is confirmed by the recently
published reports the ITU and other organizations; in
addition to the various published countries ICT
indicators.
The World Summit on Information Society (WSIS)
has emphasized the importance of providing access to
knowledge and information to all members of society.
Many countries have included the right to access
information in their national laws; because of its
significant impact on the social and economic
development. Accordingly many countries have evolved
CITC Governor Speech May 2009 5 Page 2 of 8

3. ICT concepts, including their universal access and the
universal service targets, to include access to the
Internet at high speeds.
;Ladies and Gentlemen
Aspirations and challenges shared by regulators in
different countries include the timely rollout of
broadband networks in urban and rural areas,
availability of local content, quality of service, lower
prices, the effective management of the scared
resources, facility and infrastructure sharing, consumer
protection, promotion of competition, and many others.
I will briefly touch on some of these challenges from the
perspective of the regulator in general and from the
perspective of the Communications and Information
Technology in Saudi Arabia in particular.
But allow me first to briefly highlight some ICT
related activities by the Kingdom of Saudi Arabia,
represented by the Ministry of Communications &
Information Technology as the policy maker and the
CITC as the telecom regulator and IT promoter.
Since its establishment in 2001, CITC has adopted a
well planned gradual approach towards the full
liberalization of the ICT sector and the promotion of
fair competition in the market. Towards this end, CITC
has completed several stages. It started by introducing
completion in mobile communications. We currently
CITC Governor Speech May 2009 5 Page 3 of 8

4. have three mobile operators, competing in providing
various mobile services, including broadband mobile
services. Mobile penetration has rapidly grown to reach
over 120% of the population. In addition, competition
was also introduced in data and VSAT services.
The next major step was in 2007, when the CITC
liberalized the fixed telecommunications market with
the qualification of three new fixed operators. One of
them has already completed the licensing procedures
and started deploying his networks, and soon will
launch commercial service. Furthermore, the CITC has
issued licenses for the provision of a number of other
services. The total number issued licenses reached 300
covering 18 different services.
The CITC has adopted a “technology-neutral,
service specific” approach. It plans to evolve its
licensing regime in the future to that of “service
neutrality” or unified licensing.
As a result of these steps, ICT offerings and take
up have grown rapidly in Saudi Arabia. For example,
internet users have grown to reach 7.7 million users at
the end of 2008, with a penetration of 31% of
population. As for broadband, as the number of
subscribers reached 1.3 million by the end of 2008
despite some constrains, most of which are beyond
CITC control.
CITC Governor Speech May 2009 5 Page 4 of 8

5. Distinguished participants,
Most countries of the world are witnessing rapid
growth of ICT services and adoption. Despite this,
however, world indicators from different sources point
to widening of the digital divide between developed and
developing countries, especially with regard to internet
and broadband penetration.
The Gulf countries, including Saudi Arabia have
made significant progress in worldwide ranking based
on key ICT metrics. But I have to emphasize, here, that
the achieved progress is still far from our countries
aspiration and potential. Therefore, CITC is currently
analyzing these indicators and their components in
order to enhance the positives, and reduce the negative
aspects. Such critical analysis will be followed by
regulatory decisions, actions and projects to bring about
change, which will move the Kingdom to its right place
among world countries. The Custodian of the Two Holy
Mosques, King Abdullah is keen to develop the ICT
sector and to move the Kingdom towards the knowledge
society.
,Ladies and Gentlemen
There are a number of issues and challenges, which
can be considered as timely topics for our discussion at
this Forum. I believe it is important to talk about them.
CITC Governor Speech May 2009 5 Page 5 of 8

6. The CITC is currently examining challenging issues
such as:
- The move towards unified licensing regime, the
regulation of wholesale services, the treatment of
VoIP service offering, and the MVNO licensing.
- The development of a National Broadband
Strategy, that matches best trends worldwide,
takes in to account the national capabilities, and
draw a clear road map to achieve specific targets
in Broadband Penetration. In addition, the CITC
is currently implementing Internet Development
Strategy, which focuses on different issues such as
the Saudi Domain (.sa), Filtering, and the
National Internet Exchange.
- The optimal and effective use of the scarce
natural resources, especially the frequency
spectrum. CITC has developed the National
Frequency Plan (NFP) which is currently under
implementation. The NFP aims to ensure the
availability of frequencies for current and future
needs. There is no doubt that this will require
balanced and bold timely actions, including the
utilization of extra spectrum made available as a
result of the transition to digital TV transmission,
as well as to encourage the use of the extra high
frequencies, wherever possible.
CITC Governor Speech May 2009 5 Page 6 of 8

7. - Limited Arabic and local content and language
barriers pose formidable challenges on the use of
Internet. Despite, the complexity of this subject
and the diversity of concerned parties, I believe
that regional cooperation in this area is necessary,
and in particular the cooperation between the
regulators in the Gulf and Arab Region.
- The importance of e-business and e-transaction
deployment, including the e-government and e-
commerce services, and building of trust and
security in these transactions. CITC is actively
working on raising awareness and trust levels
through a number of projects such as Saudi
CERT and the development of anti-SPAM
regulatory frameworks. The CITC is calling for
more regional cooperation on this issue, in
particular because many of the threats are done
across borders.
- The rollout of broadband networks in rural areas
and outside the major cities, which requires huge
investments over long term. This underscores the
importance of participation of all parties in
building fiber network infrastructure at the
national level, while maintaining the competition
in the provision of services. We are witnessing a
growing interest in this subject, and at the highest
levels of many countries. CITC encourages
CITC Governor Speech May 2009 5 Page 7 of 8

8. operators to cooperate in building national optical
fiber networks, and the rollout of related access
networks, as will as to share such networks,
locations towers and other networks components.
The challenges that I have just indicated are not
unique to Saudi Arabia, but the majority of them are
facing all of us. Solutions may vary from one country to
another, but certainly many of them require close
cooperation at the regional level. This Forum provides a
valuable opportunity to exchange opinions on these as
well as other concerns that may be raised by other
speakers, for the purpose of reaching common
understanding, that can helps us in our migration to the
Information Society in our own countries and bridging
the digital divide with others.
In conclusion, I would like to thank the
International Institute of Communications and TRA of
Bahrain for organizing this Forum, and for the kind
invitation extended to me and to the CITC to contribute
to it.
Thank you.
CITC Governor Speech May 2009 5 Page 8 of 8