JEDDAH, 24 February 2004 — Private companies have until March 21 to apply for Saudi Arabia’s second mobile phone license. Candidates for the license must be a consortium of at least five Saudi companies and a cellular mobile operator.
According to pre-qualification conditions set out by the Communications and Information Technology Commission (CITC), candidates will also be required to state their commitment to form a Saudi joint stock company. The founding shareholders will be subject to a two-year lock-in period, and 20 percent must be made available for public subscription. The free float must reach at least 40 percent within three years.
The CITC has decided to issue only one 25-year license for the installation and operation of a GSM network. In the fourth quarter of 2006, it will consider issuing an additional license.
Applicants will be invited to submit proposals for an associated 3G license. Authorities will accept inquiries about pre-qualification for the second license until March 6, the CITC said in a press statement. It will accept queries related to the data service license until March 6 and applications for it until March 28.
Saudi Arabia has one of the largest mobile market in the Middle East with more than seven million subscribers. Revenues from the service, which started in 1995, reached SR12.9 billion, the statement said.
