The Communications and Information Technology Commission (CITC), Saudi Arabia’s digital regulator, has announced the launch of two new Mobile Virtual Network Operators (MVNOs). The licensing of Integrated Telecom Mobile Company (Salam Mobile) and Future Networks Communications (Red Bull Mobile) doubles the number of MVNOs in the Kingdom’s market to four.
Speaking on the sidelines of the global technology conference LEAP22, which is taking place in Riyadh from 1 to 3 February, Deputy Governor of Regulation and Competition at CITC, Eng. Omar bin Abdulrahman Al-Rejraje highlighted the significance of the development: “Expanding the telecom service market is an important step towards transforming the Kingdom into a digital society, in line with Saudi Vision 2030. The entry of two new players to the sector will also promote competition and ensure the product offering and customer experience continues to improve.”
Companies with MVNO licenses rent infrastructure from service providers to offer customers services such as voice calls, mobile internet and SMS messaging. The first MVNO licenses in the Kingdom were granted in 2014 to Virgin Mobile KSA and Etihad Jawraa. The new entrants will compete for business in the largest ICT sector in the Middle East and North Africa, with a market size of SAR144 billion at the end of 2021.
As a 'G5 regulator', recognized by the International Telecommunications Union (ITU), CITC has a long-term objective of enhancing and stimulating the investment environment of the telecommunications sector - of which the issuing of new licenses is central.