On the Sidelines of the Indicators Forum, CITC Announces the Launch of the New Direction for Communications Sector Licensing

The Communications and Information Technology Commission announced the launch of the new direction for licensing in the communications sector, on the sidelines of the annual Indicators Forum 2022, as part of the Commission's efforts to enhance the Kingdom's leadership in facilitating business and adopting a more liberalized licensing system, and developing the sector's regulatory environment according to best international practices.

The Commission explained that the new direction restructured communications licenses and their financial fees, as communications licenses were redivided into four licenses, 3 of which are individual, and one general class license comprising 13 permits, ensuring the achievement of the Commission's direction to maintain market balance, attract more investments to the Kingdom, and consolidate its role as a digital regulator, by aligning licensing regulations with market needs and requirements to enhance investment and competitiveness.

The Commission noted that the restructuring of class licenses provides a flexible system for licensees holding class licenses, allowing the issuance of a single permit or a group of permits to the entity under one license under the name "General Class License."

The Commission explained that the new licensing direction will be enforced on all current licenses, as individual licenses will be transferred to their equivalent under the new direction, and class licensees will be transferred to the new direction, with a general class license and a permit for that service issued, noting that no entity can combine two individual and class licenses under the regulations, while any entity can combine two permits or a group of permits under the umbrella of the general class license.

The new licensing direction comes after the Commission amended the documents and regulatory frameworks for licenses and permits, adding three new services, and restructuring and simplifying the financial fees for issuing communications licenses to align with best financial practices, in addition to reducing most of the new financial fees for issuing and renewing licenses compared to current ones, to stimulate investment, raise investor confidence, increase market stability, and prepare it for a more liberalized licensing system that leads to the adoption of emerging services and their rapid introduction to the market.