Page 41 - SAMENA Trends - December 2020
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REGIONAL & MEMBERS UPDATES  SAMENA TRENDS

        Saudi Arabia Showcasing Global Leadership in 5G Experience Delivery


        Over the past two years, Saudi Arabia has   This too is only behind  Thailand’s 14.7   the telcos pay to the government  was
        been  at  the forefront of  the regional 5G   times improvement. Thus, from whichever   reduced  from  15%  to  10%.  The  fee
        landscape  and has  displayed leadership   angle it is evaluated, the Saudi 5G layout   reduction  simulated the  telcos  to invests
        —  both in number  of 5G subscribers  as   has established a  formidable legacy   in expanding their infrastructure and make
        well as 5G coverage of the population. The   and stamped its  authority on the global   it  ‘5G  ready’  suitably  meet the growing
        Saudi 5G  users have  been  experiencing   footprint. It  has  taken a  lot of planning   demands for broadcast in the Kingdom.
        a great 5G experiences  (in terms of both   and efforts  from  the telco  stakeholders   Proactive Experience Tracking & Reporting
        high bandwidth and low latency) and the   in Saudi Arabia to be able to foster such   The CITC has inaugurated the ‘Meqyas’ is
        telcos are accordingly raking in much   a  dominant  5G  position on the global   an initiative to proactively study, track and
        higher  ARPUs  over 5G as  compared to   map. Right  from a supportive regulatory   report on the various telecom parameters
        4G. These results are now visible even   framework,  to  committed  and  proactive   (such  as  total  download  bandwidth,
        at the  international level where KSA’s 5G   operators  —  all participants  have played   gaming  latency,  network  coverage  etc.)
        investments are resulting  in dominant   a part in this success. A few key reasons   from across the Kingdom.  These  reports,
        positions in  global  rankings.  In  the just   that have propelled Saudi 5G to its current   published quarterly, analyze Saudi Arabia's
        released report by OpenSignal (December   position are analyzed here:    fixed and mobile broadband performance
        2020), KSA has stood on the second rank   Generous Spectrum Allocations and   and thus motivate the telcos  to perform
        globally — and first within the Arab world   Release                     better — thus improving the overall service
        —  (amongst the 15 leading  5G markets   The Saudi operators were amongst the first   quality across the Kingdom.
        surveyed)  on a  host of parameters. As   wave globally to receive their 5G spectrums.   Competitive and Consumer Benefit Tariffs
        these above finding show, users in Saudi   Following  an  auction  in  March  2019,  the   – Simulating Healthily Competition
        Arabia are receiving the second highest   regulator, Communication and Information   The KSA has a very healthy and competitive
        real  world  5G  download  speed  (at  272.8   Technology  Commission (CITC) allocated   tariff regime where the consumers are the
        Mpbs) — behind only South Korea (which   equal amounts 100 MHz spectrum in the   ultimate winners.  The telcos have been
        is enjoying 351.2 Mbps). This has ensured   C-band range (between 3.4GHz – 3.8GHz)   offering new innovative tariff structures to
        that the Saudi users experience the second   to all the three operators. This band is best   the consumer – moving away from offering
        highest  bandwidth improvement —  that   suited for 5G development.      only ‘connectivity’ to offering ‘experiences’
        by a factor of 9.1  times —  which  using   Supportive Regulatory Regime  – loaded with video and gaming bundles.
        their  5G services as compared to 4G.   In  December  2018,  the  royalty  fee  that   Further,  the  telcos  are  also  launching  5G
                                                                                 plans with multiple contract  durations
                                                                                 which is allowing users from all segments
                                                                                 to enjoy the services  —  by easing  the
                                                                                 pressure on long commitments. All these
                                                                                 above factors have ensured that the Saudi
                                                                                 5G roll-out can be considered successful
                                                                                 and offers insights to be replicated
                                                                                 elsewhere.  The key  drivers  —  as  learnt
                                                                                 from the Saudi analysis — for an effective
                                                                                 5G deployment is to develop sophisticated
                                                                                 and richer consumer offers, backed up by
                                                                                 high-performance  networks  and  rapid,
                                                                                 accurate service provisioning.




        Saudi Arabia Looking to Adopt Egypt's E-Invoicing Model


        Saudi Arabia is looking to adopt the electronic invoicing model   facilitating procedures for taxpayers, and combating tax evasion.
        implemented  by  Egypt  which  managed  to  be  the  first  country   Egypt is  keen  to share its  experiences  and provide technical
        in the MENA region to require taxpayers to issue electronic tax   support to help Saudi Arabia implement the e-invoicing system,
        invoices. The Governor of the General Authority of Zakat and Tax   he noted. On 15 November, the Egyptian Tax Authority required
        (GAZT), Suhail bin Mohammed Abanmi, commended the efforts   134 companies of the top corporate taxpayers to issue electronic
        exerted by Egypt in this regard during a virtual meeting with the   tax invoices. The second phase of making e-invoices obligatory,
        Egyptian  Minister  of  Finance,  Mohamed  Maait,  according  to  a   which will begin on 15 February 2021, will include 350 companies,
        statement on Sunday.  Maait  said  that  the e-invoicing system   while the third phase, which will start on 15 May 2021, will include
        is  a  key  step  towards  automating  the  tax  declarations  system,   the remaining top corporate taxpayers.

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