Etihad Virgin Mobile and Etihad Jawraa Receive Licenses to Provide Mobile Virtual Network Operator (MVNO) Services from the Communications and Information Technology Commission

Stemming from the Communications and Information Technology Commission's vision of improving and expanding telecommunications and information technology services, contributing to reducing their prices, as well as caring for subscribers, achieving competition in telecommunications and information technology services markets, and increasing investment in this important sector, and following the Commission's previous announcement of the start of the process of issuing licenses to provide mobile virtual network operator services, which resulted in the Commission's Board of Directors' approval to grant licenses to the winning operators, His Excellency the Governor of the Communications and Information Technology Commission, Eng. Abdullah bin Abdulaziz Al-Darrab, handed over today, Wednesday corresponding to 16/06/1435H, mobile virtual network operator (MVNO) service licenses to Etihad Virgin Mobile Saudi Arabia, with host service provider Saudi Telecom Company, and Etihad Jawraa, with host service provider Etihad Etisalat Company (Mobily).

Eng. Al-Darrab explained “that the term of these licenses for both operators is 10 years from the date of receipt, with the companies required to commercially launch their services within one year of the licensing date,” adding that the Commission's aim behind licensing this type of operator is to expand the options available to users of telecommunications and information technology services in the Kingdom, increase attention to subscribers, improve services, and create more innovation and diversity in packages.

The Commission had published the request for proposals document for a mobile virtual network operator license with the host operator with infrastructure, Saudi Mobile Telecommunications Company “Zain,” with the winning operator to be announced after completing the licensing procedures.

It is worth noting that the number of mobile telecommunications service providers in the Kingdom is currently three operators, and with today's licensing of two new operators, the number of mobile telecommunications service providers in the Kingdom becomes five operators, and this number is expected to increase to 6 operators upon granting a license to a third virtual operator.