JEDDAH, 4 January 2006 — The Communications and Information Technology Commission (CITC) has recently received numerous enquiries with respect to further liberalization of the information technology and communications sector, especially in view of Saudi Arabia’s entry into the World Trade Organization (WTO).

The CITC is the Kingdom’s regulatory agency, which has legal standing and financial and administrative independence. The commission is responsible for regulatory and licensing policies of the Information Technology and Communications (ITC) sector. As a part of its mandate, the commission is committed to promoting and nurturing a liberalized and competitive ITC sector and will aim to increase participation of new players. Further, the Kingdom has also committed to the liberalization of the telecom sector as a part of its accession to the WTO. CITC officials have said they are committed to fairness and impartiality to all interested investors, the current licensees and other stakeholders, taking into account consumer protection as its primary objective.

The CITC will continue its ongoing efforts to institute a strong regulatory and licensing policy framework, with an organized and transparent regulatory regime and in accordance with the best international practices. This will also incorporate steps required in accordance with the Kingdom’s WTO commitments, which are currently being evaluated.

As a part of this initiative, the CITC has recently awarded a contract to a consortium of consultants led by Arthur D. Little and its technical and legal partners Assure Engineering and Shafiq Al-Othman. The consultants will assist the CITC in developing strategies, as well as fair and transparent processes leading to further liberalization of the ICT sector, and more specifically in the awards of new licenses for the fixed-line and mobile services. The CITC intends to involve various stakeholders, interested parties and the public through a series of public consultations during the coming year. A complete calendar of the commission’s activities is being developed, including the processes for how and when to apply for new licenses, and will be made public early in 2006. The first step of the public consultation will begin in the second quarter of 2006, with the objective of awarding and issuing major licenses before the end of the year.