Saudi Arabia's Communications and Information Technology Commission (CITC) has a set 04 May deadline for companies to submit applications for three MVNO licences, Reuters reported. This will make it the second of the six Gulf Cooperation Council (GCC) members after Oman to permit MVNOs. Reuters said regulators in the Gulf have been reluctant to open their markets to increased competition because most of the region's fifteen mobile operators are ultimately government-controlled and are often a key source of state revenue. UAE-based Du and Oman MVNO Friendi have both expressed an interest in obtaining a Saudi MVNO licence.
The winners of the licences will be announced twelve weeks after the bid deadline. The CITC document also sets the fee at SAR 5 million, the news agency said. The MVNOs will pay 15 percent of their annual revenue to the regulator. There will be a further annual licence fee of 1 percent of revenue, plus other miscellaneous charges. Saudi Arabia's mobile penetration is the fourth highest in the world at 191 percent so MVNOs are expected to compete for customers from other companies rather than bring in new subscribers.
