The following words and expressions, wherever mentioned herein, shall have the meanings ascribed thereto, unless the context requires otherwise:

Act

Telecommunications and Information Technology Act.

Bylaws

Bylaws of the Act

Ministry

Ministry of Communications and Information Technology

Minister

Minister of Communications and Information Technology.

Commission

Communications and Information Technology Commission.

Board

Commission Board of Directors.

Committee

Committee for the Consideration of Violations of the Act

Telecommunications

Any transmission or reception, between persons or things, of signs, written messages, images, sounds, or information of any kind via wired or wireless systems.

Telecommunications Network

A system used to transmit any kind of communication by using electric, magnetic, electromagnetic or other energy.

Public Telecommunications Network

Local or international wired or wireless telecommunications system, which provides general telecommunications and information technology services to users.

Private Telecommunications Network

Limited network not connected to a public telecommunications network, which provides telecommunications and information technology services in specific areas, for specific users.

Information Technology

Technologies, software, systems, networks, and related processes used to create, collect, obtain, process, store or analyze data or information, including telecommunications and information technology applications, and does not include data or information per se.

Devices

Any wired or wireless device, radiosensitive equipment, interfering devices and equipment, and any other equipment, device, product, tool, machinery or otherwise that are connected to a telecommunications network or may, when used, affect technical capacity to provide telecommunications or information technology services.

Infrastructure

Physical system used to provide services related to the Telecommunications and Information Technology Sector, including facilities, networks, and devices.

Critical Infrastructure

Networks, hardware and software that are essential to the minimum of telecommunications and information technology services, their disruption, in whole or in part, compromises the stability or security of the Telecommunications and Information Technology Sector.

License

A document issued by the Commission to a person of a natural or legal capacity for the use or provision of telecommunications services, information technology or devices in accordance with the Act and bylaws. The document shall include: the type of service or device, the period of time, and general provisions.

Registration

Recording information of the entity registered at the Commission.

Authorization

A document issued by the Commission to a person, of a natural or legal capacity, outside the Kingdom, who provides services related to telecommunications or information technology services, including digital content platforms, inside the Kingdom by displaying them in a way that enables the user to access them.

Service Provider

The licensed, registered or authorized provider of telecommunications, information technology or related services, including digital content platforms, to the public.

Controlling Service Provider

Controlling service provider pursuant to the provisions of Paragraph (2) of Article (Fifteenth) of the Act.

Facility-Based Service Provider “FBSP”

Licensed telecommunications or information technology provider licensed to create, own or operate infrastructure.

User

A natural or legal person using telecommunications, information technology or related services, including digital content platforms, through the Service Provider.

Frequency Spectrum

A set of frequency bandwidths contained in the international radio systems, which can be used in telecommunications networks.

The National Frequency Plan (NFP)

A document regulating frequency spectrums in terms of identifying its type, bandwidth and distribution to stakeholders.

Interconnection

A link that allows users of a particular Service Provider's communications network to communicate between each other’s or with users of another service provider.

Access

Access to infrastructure, facilities, networks, devices, systems, services or otherwise used in the provision of telecommunications and information technology services.

Universal Service

Providing a minimum of internet and telecommunications services at appropriate prices and quality for each user.

Right to Universal Use

Giving the opportunity to all users in the Kingdom to benefit from the minimal telecommunications and information technology services of appropriate quality, within a specified geographical area and at an appropriate price; At the Ministry discretion, in coordination with the Commission.

Numbering

A sequence of serial numbers identifying an intended final point in the public telecommunications network and involves the information necessary to guide telecommunications to this final point.

National Numbering Plan

A plan prepared by the Commission to determine the range of numbers used in various telecommunications or information technology services.

Digital Transformation

Strategic reorganization based on data, information technology and telecommunications networks.

Emerging Technologies

Technical innovations that represent a progressive step in a given field, and achieve a competitive advantage over prevailing technologies.

Digital Government

Supporting administrative, organizational and operational processes within, and between, government sectors to achieve digital transformation, develop, improve and enable easy and effective access to government information and services.

Technical Identifiers

Any technical means of uniquely identifying resources, services or content that can be accessed through the Internet.

The Act aims at achieving the following:

1. 1

   Developing the Telecommunications and Information Technology Sector to improve the efficiency of its services and infrastructure.

2. 2

   Encouraging digital transformation, stimulating the use and utilization of telecommunications and information technology in all areas.

3. 3

   Encouraging technical innovation, entrepreneurship, research and development in Telecommunications and Information Technology Sector, and developing subsectors and emerging technologies, as well as developing new telecommunications and information technology services.

4. 4

   Transferring and localizing technology in the Telecommunications and Information Technology Sector and keeping up with its updates.

5. 5

   Protecting the public interest, the user and its interests, as well as raising its level of trust; by providing appropriate quality telecommunications and information technology services, in addition to providing protection against harmful content, and maintaining the confidentiality of communications.

6. 6

   Promoting access to high-end, affordable telecommunications and information technology services in all regions of the Kingdom.

7. 7

   Developing the share of local content in the Telecommunications and Information Technology sector and stimulating demand on relevant national enterprise products and services.

8. 8

   Enhancing the competitiveness of the Telecommunications and Information Technology Sector and its companies, ensuring the continuity and effectiveness of its level of competition, and raising the competitiveness of telecommunications companies, regionally and globally.

9. 9

   Providing an attractive environment for investment in the Telecommunications and Information Technology Sector, attracting leading international companies in the sector's priority areas, and raising the level of work of national companies.

10. 10

    Regulating the use of the frequency spectrum to ensure its optimal use.

11. 11

    Using the National Numbering Plan effectively.

12. 12

    Achieving clarilty and transparency in procedures.

13. 13

    Achieving the principles of equality and non-discrimination.

Ministry shall be competent to supervise the Telecommunications and Information Technology Sector within the limits of provisions of the relevant Act and Regulations, and in a manner that is not inconsistent with the functions and competencies of other entities in accordance with their laws and regulations supervised by them. To this end, the Ministry may have the following tasks and competencies:

1. 1

   Developing strategies, policies, plans, programs, and infrastructure of the Telecommunications and Information Technology Sector and supervising the implementation thereof as well as raising the level of action required.

2. 2

   Proposing draft acts and bylaws for the Telecommunications and Information Technology Sector, in coordination with the Commission, and supervising their implementation after approval.

3. 3

   Representing the Kingdom before regional and international entities in relation to the Telecommunications and Information Technology Sector. It may grant the Commission or any other relevant entity the authority to represent the Kingdom.

4. 4

   Encouraging investment in the Telecommunications and Information Technology Sector and contributing to the localization of jobs and the qualification of human resources.

5. 5

   Encouraging and supporting research, studies and development in the Telecommunications and Information Technology Sector.

6. 6

   Issuing and updating policies on emerging technologies and the Internet s well as disseminating them to relevant entities.

7. 7

   Conducting a comprehensive periodic review of the Telecommunications and Information Technology Sector’s performance under the approved policies and it may disseminate its results to the public.

8. 8

   Developing digital economy policies, standards and procedures, leading to the contribution of the Telecommunications and Information Technology Sector to stimulating the economy, and taking the steps necessary to facilitate the use of telecommunications and information technology in the digital economy.

9. 9

   Strengthening standards and procedures related to digital transformation and digital government, and supporting mechanisms to work on this among stakeholders.

10. 10

    Making the necessary arrangements, in coordination with the Commission, to ensure the continued provision of basic telecommunications and information technology services in case the service provider is unable to do so, in accordance with the rules and procedures established by the bylaw.

11. 11

    Ensuring universal service availability and the right to universal use.

By virtue of a decision of the Council of Ministers, the provisions of this article may be amended.

1. 1

   A Fees, supplied to the general treasury of the state, shall be collected to issue and renew licenses, to commercially provide telecommunications or information technology services, and to use frequencies.

2. 2

   An amount shall be deducted to the Ministry – to be determined by the Ministry in agreement with the Ministry of Finance and the Non-Oil Revenues Development Center - from the Fees paid for the commercial provision of telecommunications or information technology services; to be spent in the development of the telecommunications and information technology sector as well as the infrastructure.

3. 3

   Subject to Article (Two) of the Act, the Ministry shall determine, on the basis of the Commission proposal, the Fees for the commercial provision of telecommunications or information technology services, the issuance and renewal of licenses, and the use of frequencies.

1. 1

   A license shall be obtained from the Commission before doing any of the following:

   1. a

      Providing telecommunications services to the public or using a communications network for that purpose.

   2. b

      Providing infrastructure service for public telecommunications networks.

   3. c

      Using any numbering resource or frequency spectrum.

   4. d

      Providing Saudi domain name registration services or establishing centers for registration thereof.

2. 2

   The Board, without prejudice to the competencies of other relevant entities, may require a license or registration to be obtained from the Commission, in the following cases:

   1. a

      Providing certain services related to telecommunications or information technology, including digital content platforms, and the Board shall determine the nature and provisions of such services.

   2. b

      Acquiring or using telecommunications or information technology-related devices.

   3. c

      Establishing a private telecommunications network.

   The Board shall set the necessary controls for obtaining a license, registration or permit.

3. 3

   The Commission shall identify cases in which its consent is required before connecting a private telecommunications network to a public telecommunications network.

1. 1

   The Commission may reject the request renewal of the license, registration or authorization, or to cancel the license, registration or authorization, or to suspend or modify any of them; in any of the following cases:

   1. a

      Failure of the licensee, registrant or authorized entity to respond to committed violations, within a reasonable period to be determined by the Commission.

   2. b

      Expiration or dissolution of the licensee, registrant or authorized entity.

   3. c

      Any other case specified in the Bylaw.

2. 2

   By a reasoned decision, the Board may cancel, suspend or modify any license, registration or authorizations in the event of changes in technology, market conditions or in the National Frequency Plan, in accordance with the procedures established in the Bylaw.

3. 3

   A licensee, registrant or authorized entity may apply to the Commission for cancellation, modification or suspension the license or authorization issued thereto.

4. 4

   The Commission shall, in the event that the license is not renewed, suspended or revoked; take necessary actions to ensure continuity of service in accordance with the rules and procedures set out in the Bylaw

5. 5

   The Bylaw shall identify the provisions resulting from cancelling, suspending or modifying the license, registration or authorization, as well as the provisions necessary to ensure continuity of the service.

1. 1

   Without prejudice to other Acts, the Service Provider shall obtain the following:

   1. a

      Approval of the Commission before taking any of the following actions:

      1. (1)

         Substantial change in ownership of the licensee or registrant

      2. (2)

         Waiver of license, registration or authorization to others.

   2. b

      The Commission non-objection to make a substantial change in the senior management of the licensee or registrant.

2. 2

   The Bylaw shall set out the controls and procedures for obtaining consent and non-objection referred to in Paragraph (1) of this Article. The Commission shall in any event issue its decision within a period not exceeding (ninety) days from the date of completion of the application. If the period referred to in this paragraph has elapsed without a decision issued by the Commission, this shall be deemed as an approval.

1. 1

   The Board shall classify the license, registration and authorization into categories and set the terms and conditions for each category.

2. 2

   The Service Provider shall abide by the terms and conditions of the granted license, registration or authorization included therein.

The Commission shall establish a private registry in which the data and information of the licensee, registrant or authorized entity, and the category of its granted license or registration or authorization in which it is included. Such data and information shall be identified in the Bylaw.

1. 1

   The frequency spectrum is a natural wealth owned by the State.

2. 2

   The Commission shall prepare the National Frequency Plan in coordination with the relevant authorities, taking into account the requirements of other regulations and international agreements to which the Kingdom is a party, in preparation for its approval by the Ministry.

3. 3

   The Ministry shall approve the National Frequency Plan in coordination with the military and security agencies.

The Commission shall be responsible for the following:

1. 1

   Management of Frequency Spectrum for civil and commercial uses, as defined by the National Frequency Plan.

2. 2

   Identification of levels of exposure to the electromagnetic fields of the non-ionizing frequency spectrum, establishment of controls and standards for conformity and adherence to them and to the procedures for measurement thereof, and taking whatever is necessary in this regard according to the Bylaw.

No user or service provider may use any frequency unless allocated thereto by the Commission, and after obtaining the necessary license and paying the Fees.

If the frequency spectrum allocated for civil and commercial purposes is used in violation of the Act or bylaw or the terms and conditions of the license, the Commission may disconnect or withdraw the devices used in the violation from service and may use the competent security authorities when needed.

The Commission shall establish a National Frequency Registry in the Kingdom, in which the data of frequency spectrum are recorded, managed, updated, and kept confidential

1. 1

   All Service Providers shall be obliged to satisfy reasonable requests for interconnection or access submitted by other service providers, in accordance with the provisions specified in the Bylaw.

2. 2

   The Controlling Service Provider in the relevant markets shall be obliged to meet requests for interconnection or access by other providers at fair terms and prices based on the cost approved by the Commission. The provider shall be deemed controlling if its service covers at least (40%) of the relevant telecommunications or information technology market or part thereof. The Commission may adjust this proportion according to market conditions and may establish the necessary controls to identify the Controlling Service Provider.

3. 3

   Each Service Provider shall be entitled to negotiate with any service provider to agree on interconnection or access. If no agreement is reached between them, the Service Provider shall apply to the Commission for a decision thereon. Commission’s decision in this regard shall be binding on all parties.

4. 4

   The Commission shall establish the necessary rules for linking interconnection or access, including service providers' obligations.

Service Providers shall be prohibited from entering into any interconnection or access agreements if it endangers any person or its property, or damages other telecommunications networks, services or other information technology.

All Facility-based Service Providers shall have equal access to public and private real estate for the purpose of providing telecommunications or information technology services, provided that access to such real estate shall be with the knowledge and consent of their owners, or persons of equivalent status thereof, and to the extent that such provision of services need.

1. 1

   FBSP shall agree with the property owner, or the equivalent, when FBSP requires installing any devices or establishing or maintaining telecommunications networks inside the public or private properties in order to provide the telecommunications or information technology services to the public. In the event of failure to reach an agreement, FBSP shall submit an application to the Commission to consider expropriation of such property in accordance with the relevant legal provisions.

2. 2

   When FBSP requires installing any devices or establishing or maintaining telecommunications networks inside the public or private properties in order to provide the telecommunications or information technology services for a person residing in that property, the property owner or the equivalent may not impose fees on or prevent FBSP from access to that property unless the owner or the equivalent has reasonable and legal reasons for prevention, and both of the owner and FBSP shall have the right to recourse to the Commission to decide on the dispute.

3. 3

   FBSP shall reinstate the property's situation to its previous condition upon completion of the works set out in Paragraphs (1) and (2) of this Article.

4. 4

   The Bylaws shall determine the provisions related to the enforcement of what is stated in this Article.

Without prejudice to the laws related to maintenance of the locations that have special importance, the Bylaws shall determine the provision related to establishing, operating and maintaining public telecommunications networks and provisions related to FBSP's participation in connection locations.

1. 1

   Without prejudice to the provisions of other laws, the Service Provider shall obtain the Board's approval before making any merger with other service provider inside or outside the Kingdom and inform Commission within (five) business days of any initial agreement made in this regard.

2. 2

   The Service Provider or any natural or legal person shall obtain the Board's approval before purchasing 5% or more of shares or stocks of a service provider licensed to operate in the Kingdom, which may result in reaching the level of the Service Provider that controls a related telecom market or part thereof.

3. 3

   The Commission shall, within the period stipulated by the Bylaws, decide on any received requests in accordance with Paragraphs (1) and (2) of this Article.

Any Service Provider that controls a related telecom market or part thereof may not preform an activity or procedure that constitutes an abuse of its situation. In addition, the Bylaws shall determine the Controlling Service Provider's obligations and the rules on the basis of which the activity is considered an abuse of control situation.

The Service Providers shall be prohibited to agree to perform practices that may make the Service Provider dominating a related telecom market or part thereof, limit or prevent competition or reduce its effectiveness. In addition, the provisions set out in this regard in any agreement or decisions shall be invalid. The Bylaws shall determine the decisions and practices that may limit or prevent competition or reduce its effectiveness and the procedures that shall be taken in this regard.

1. 1

   The Service Provider shall take all measures and arrangements necessary for ensuring the maintenance of confidentiality of the User's information and personal data and to prevent accessing, reviewing and disposing such information and data illegally, including preparing and submitting policies related to maintenance of confidentiality of such information and documents to the Commission for approval in accordance with the relevant legal provisions.

2. 2

   The User's information or documents may only be disclosed under the User's consent according to the relevant legal provisions.

3. 3

   Subject to the relevant legal provisions, the Service Provider shall, when the User's information or documents are infringed in any way, take all procedures necessary for maintaining User's information and documents and immediately inform the Commission and User of the incident's details.

4. 4

   Without prejudice to the relevant legal provisions, the Service Provider shall keep the User's information and documents for the period that Commission determines. In addition, such period shall be calculated as of the date of the last service provision. In the event of a dispute that may arise in connection with the service between the User and Service Provider, such information and documents shall be kept until the dispute is solved.

1. 1

   The Commission shall, after making coordination with the competent authorities, make internet filtering and limit access to a specific content on the internet, prevent or restrict access to internet services on the gateways.

2. 2

   It is prohibited to bypass or swindle internet filtering or to provide the means to do so. In addition, the Commission shall set the regulating controls and requirements.

1. 1

   Commission's inspectors for whom the Board issues a resolution on naming them shall jointly or severally perform investigation, examination and collection of inferences, control violations of the provisions of the Act, Bylaws and regulatory decisions. In addition, the inspectors shall, during the working hours, inspect the sites of the licensed or persons suspected to violate the provisions of the Act or Bylaws, without prejudice to the relevant legal provisions, review and take a copy of the documents, systems and databases and ask, when needed, for the help of competent security agencies to enable them to implement their tasks.

2. 2

   The Commission shall investigate and take legal actions against the offenders and may cease the service subject of the violation precautionarily. The Bylaws shall determine the necessary provisions for the same.

3. 3

   The Commission shall keep the seized items until the Committee makes a decision on the violation. If a final decision-proving occurrence of the violation is rendered, the Commission shall be entitled to release the seized items as defined in the Bylaws without prejudice to the offender's right to claim with compensation for damage.

4. 4

   The officers and employees in the places desired to be inspected shall enable the inspectors to perform their work and shall not impede them and provide all facilities, information and documents that they require.

5. 5

   The inspectors shall present their job cards when undertaking their duties.

Each of the following shall be considered a violation:

1. 1

   Acquisition, sale, lease, making available, manufacturing, producing or trading, in any form, any device, equipment, tool, service, system, program or the like in relation to telecommunications or information technology that are not compatible with the approved technical specifications and standards or that are not compatible with the controls that the Commission sets.

2. 2

   Practicing any of the activities that their practice requires obtaining a license, registration or permit before obtaining the license, registration or permit.

3. 3

   Providing misleading information for the public or competent authorities in relation to telecommunications or information technology services.

4. 4

   Impeding inspector's work.

5. 5

   Misuse of telecommunications or information technology services.

6. 6

   Performing any practice that breaches competition in the telecommunications and information technology sector.

7. 7

   Causing damage to, infringing, interrupting or making illegal use of telecommunications networks, or preventing information exchange in general whether deliberately or through negligence or omission.

8. 8

   Failure to provide the Commission with the required reports, information or documents that enable the Commission to perform its work.

9. 9

   Owning any telecommunications or information technology device without obtaining the necessary license.

10. 10

    Any other work that violates provisions of the Act, Bylaws or Commission 's regulatory decisions.

1. 1

   Without prejudice to what is stated in the Act or any severe penalty provided for in any other law, the person who commits any of the violations provided for in Article (Twenty - Six) hereof or proceeds with or helped in committing such violations shall be punished with one or more of the following penalties:

   1. a

      A fine not exceeding (twenty-five) million Riyals.

   2. b

      Ceasing service subject of the violation in full or in part.

   3. c

      Prohibiting the offender for a specific period from obtaining or renewing a license for providing telecommunications or information technology services.

   4. d

      Blocking digital content platform in full or in part.

2. 2

   The decision made in relation to the penalty shall be considered effective as of the date of communication to the offender.

3. 3

   Without prejudice to the affected party's right to claim with compensation, the offender shall, in all cases, provide the Commission with the proceeds realized as a result of the violation after returning the remaining fees to the User.

4. 4

   The offender shall cease, rectify or eliminate the violation, as the case may be, within the term that the Committee determines. In addition, the Commission shall be entitled to request the Committee to punish the offender with one or more of the penalties provided for in Paragraph (1) of this Article if the offender does not cease, rectify or eliminate the violation within the term determined by the Committee.

5. 5

   When imposing a penalty, such penalty shall be in proportion to the violation's volume, nature, effect and reiteration by the offender.

6. 6

   The Committee shall be entitled to provide for in its decision regarding the penalty publishing the operative part thereof electronically or in a local newspaper or any other method, provided that the operative part is published after the decision becomes conclusive and at the offender's expense.

1. 1

   The Board shall form one Committee or more to consider violations of the provisions of the Act, Bylaws and regulatory decisions and impose the penalties provided for in Article (Twenty - Seven) hereof.

2. 2

   The Committee shall be formed of three members, one of them is the Committee's Chairman and an alternate member to be named by the Board's resolution based on the Commission Governor's nomination. In addition, the Committee's membership shall be for (four) renewable years. Moreover, the resolution shall determine the Committee members' remunerations.

3. 3

   The Committee members shall be legally and technically qualified in the areas of telecommunications and information technology, provided that the Committee Chairman is legally qualified.

4. 4

   The Committee shall consider the violations according to the rules and procedures that the Board determines, and its decision shall be subject to grievance before the administrative court within (thirty) days as of the date in which the offender is served.

The persons against whom decisions are passed by the Commission shall be entitled to file a grievance to the Minister according to the legal procedures adopted for objection to the administrative decision.

Commission shall, according to its competencies, provide support and technical assistance to enforce the final decisions rendered by the competent court against the Service Providers of digital platforms.

The requirements of universal service and right to universal use shall apply in accordance with the rules and principles that the Bylaws determines.

The phone calls and information sent or received via the public telecommunications networks shall be considered confidential and shall not be reviewed, listened to, or recorded except in the cases set out in the regulations.

The Bylaws shall set out the provisions and procedures that Commission shall take to protect the User and handle the filed complaints.

Without prejudice to Paragraph (3) of Article (fifteenth) hereof, when a dispute arises between the Service Providers, any of such Service Providers shall be entitled to submit an application to the Commission to settle the dispute amicably. In the event of non-acceptance of settlement or lapse of (thirty) days without reaching a settlement, such Service Provider shall be entitled to resort to the competent court. Moreover, the Bylaws shall determine the procedures for amicable settlement.

Commission shall be competent to set the controls and rules necessary for the following:

1. a

   Announcing, promoting or modifying tariff rates.

2. b

   Entering into agreements with the Service Provider outside the Kingdom to provide international roaming service or any other service.

3. c

   Authenticating, selling, promoting or using SIM cards.

Commission shall set the technical specifications and standards for telecommunications and information technology devices after making coordination with the Saudi Standards, Metrology and Quality Organization and take the procedures necessary for ensuring that the devices are compatible with the technical specifications that the Commission sets.

The Service Provider, contracting distributors or sub-service providers and related persons for whom the Act permits providing telecommunications and information technology services shall provide data, information and documents that Ministry or Commission requires according to their respective competencies in implementation of the provisions of the Act and Bylaws.

In emergency cases, the Minister shall be entitled to oblige the Service Provider to undertake any of the following:

1. a

   Providing specific telecommunications and information technology services free of charge to the extent required for the public interest.

2. b

   Making interconnection or access between the Service Providers to serve the public interest.

3. c

   Restricting use or making available of frequency spectrum for any other entity.

4. d

   Sharing resources and network's elements and activating national roaming.

And the Bylaws shall determine the related procedures of this Article.

1. 1

   Commission shall regulate, register and operate names of the Saudi domains and technical identifiers, determine fees for registration services, make decisions on the dispute related thereto and make coordination with the related international organizations in this regard.

2. 2

   Commission shall develop the National Numbering Plan, be responsible for its structuring, management and amendment and determine the terms of allocation and use of numbering resources and the fees thereof.

3. 3

   The Board shall be entitled to enter into agreements with the government or private entities to authorize them to assume Commission's tasks set out in this Article.

4. 4

   The Service Providers shall provide the possibility of transferring the number to their network, while complying with transferring User's number according to User's requirements. In addition, the Bylaws shall determine the procedures and conditions necessary to thus do.

The Bylaws shall be issued by the Minister's resolution based on the proposal of the Commission Board within (180) days as of the date of publishing the Act in the Official Gazette, and shall come into force as of the date the Act comes into force.

1. 1

   This Act shall supersede Telecommunications Act issued by Royal Decree No. (M/12) dated 12/03/1422 AH and shall repeal the provisions that conflict therewith.

2. 2

   The Act shall come into force after (180) days as of the date of being published in the Official Gazette.