MEED publishes the first summary of an official translation of the by-laws in the English-language press:
Chapter 1: General provisions
In accordance with the Saudi Communication Commission (SCC) statutes, SCC may establish fees for:
a) the commercial provision of telecommunications services;
b) issuance and renewal of telecommunications licences;
c) issuance and renewal of radio licences for use of
frequency spectrum;
d) issuance and renewal of number licences;
e) issuance and renewal of licences for use of
telecommunications equipment; and
f) any other function performed by the SCC
pursuant to an SCC statute
Chapter 2: Telecommunications licences
There shall be four types of licence:
a) telecommunications licences;
b) radio licences;
c) number licences; and
d) equipment licences
SCC may issue two types of telecommunications licences pursuant to SCC statutes: individual licences and class licences
The following services and networks shall, unless SCC decides otherwise, require an individual licence:
a) fixed voice telephone services;
b) public mobile cellular telecommunications services;
c) operation of a public telecommunications network;
d) national and international fixed and mobile data
communications services; and
e) such other types of services as the SCC decides
shall require an individual licence
Class licences shall be issued to authorise more than one service provider of the same class to provide telecommunications services or operate telecommunications networks. Class licences shall be subject to the following rules:
b) There shall initially be two types of class licences,
Type A and Type B
The following services and networks shall, unless SCC decides otherwise, require a Type A class licence
a) national and international voice resale services;
b) very small aperture terminal satellite services;
c) public pay telephone services;
d) radio paging services;
e) temporary network services
The following services and networks shall, unless SCC decides otherwise, require a Type B licence:
a) internet service provider services;
b) valued-added network services;
c) global mobile personal communication services;
d) Public call office
SCC may limit the number of licences issued in a given telecommunications market
When conducting a comparative evaluation process, SCC shall determine which applicant is, on the basis of financial and technical capability, best placed to satisfy users' demand for the relevant telecommunications network or telecommunications service
Prior to conducting an auction for a licence to provide a telecommunications service, SCC shall conduct a pre-qualification process during which each applicant must provide:
a) clear evidence that the applicant has the financial
capability to provide the proposed services and
implement the proposed network; and
b) clear evidence that the applicant has the technical
capability and experience or has access to the technical
capability and experience to provide the proposed
services and implement the proposed network
SCC may issue a class licence for a term not to exceed 25 years
SCC shall maintain and publish a national telecommunications registry
Chapter 4: Competition between service providers
SCC shall perform the following functions and duties in relation to competition among service providers in telecommunications markets in the kingdom:
a) promote efficient and sustainable competition for
the benefit of end-users;
b) establish an open and transparent regulatory
framework that minimises regulatory and other barriers
to entry into telecommunications markets;
c) issue a decision designating dominant service
providers in relevant markets in the kingdom, based
on their market share and other factors
d) monitor and prevent abuses of a service provider's
dominant position
e) monitor and prevent practices that would restrict
competition
f) review and decide upon proposed mergers of
service providers
Every service provider that earns 40 per cent or more of the gross revenues in a specific telecommunications market shall be designated a dominant service provider in that market, until and unless the SCC specifies otherwise in a decision
No person shall engage in a practice restricting or distorting competition in telecommunications markets, including the following:
a) arrangements between two or more service providers
that directly or indirectly fix the prices or other terms or
conditions of service in telecommunications markets;
b) arrangements between two or more service providers
that directly or indirectly determine which person
will win a contract business opportunity in a
telecommunications market; and
c) arrangements between two or more service providers
to apportion, share or allocate telecommunications
markets among themselves or other service providers
SCC may, on application by any person, or on its own
initiative, determine whether, in any case,
a) the actions or activities of a dominant service provider
constitute an abuse of its dominant position, and;
b) the actions or activities of any service provider
amount to an anti-competitive practice
Chapter 5: Interconnection
Every dominant service provider designated as dominant in relevant interconnection markets shall ensure that:
a) it applies similar conditions to interconnecting service
providers and foreign service providers under similar
circumstances;
b) it provides interconnection and access to
interconnecting service providers and foreign service
providers under the same conditions and of the same
quality as it provides for its own services, or those
of its affiliates;
SCC shall be governed by the objective of ensuring that interconnection and other access charges imposed by dominant service providers comply with the interconnection guidelines when:
a) approving such charges
b) resolving a dispute between service providers
regarding such charges; or
c) otherwise exercising its functions and duties
under the SCC statutes
Chapter 6: Disputes between services providers
Where a dispute exists between two or more service providers, without prejudice to the Telecommunications Act, the parties to the dispute may submit a request for consensual resolution to SCC
Chapter 7: Tariffs
Universal service providers shall file with and obtain the approval of SCC for all tariffs for their universal service offerings
SCC may issue a decision to remove any requirement for universal and dominant service providers to file and obtain approval of tariffs under this chapter where SCC determines that:
a) competitive market forces will be sufficient to protect
the interests of users; and
b) there is not a significant risk of harm to competitive
markets as a result of the removal of tariff regulation
Tariffs for services provided by universal or dominant service providers shall be based on the cost of efficient service provision and shall not contain excessive charges which are made solely as a result of the service provider's dominant position or its designation as universal service provider
SCC may require a service provider to propose a method of price cap regulation if:
a) it has designated the service provider as a dominant
service provider;
b) it determines that the service provider is a major national
supplier of telecommunications services in the kingdom; and
c) it determines that price cap regulation would be an
effective means of reducing the regulatory burden of
tariff approvals for that service provider or of providing
incentives for efficient service provision
Chapter 8: Relations between service providers
No service provider shall switch a user from one service provider to another service provider without the prior written consent of the user, and the user shall have no liability to pay for any telecommunications services provided by a service provider, where the user has not requested such services in writing. Where a payment has already been made, SCC may direct the service provider to repay it to the user forthwith
No service provider shall make, or cause to be made, any false or misleading claim or suggestion regarding:
a) the availability, price or quality of its
telecommunications service or equipment; or
b) the telecommunications service or equipment
of another service provider
Service providers shall take all reasonable steps to ensure the confidentiality of user communications
Service providers shall establish a separate division to receive complaints of users other than service providers. Service providers shall endeavour to eliminate the causes of complaints that are related to the quality or the method of providing the service and billing problems
A universal service provider shall provide telecommunications services that meet specific quality of service standards. These standards shall be developed by SCC in consultation with each universal service provider and may be included in the universal service provider's licence or established by decision of SCC
SCC may issue a decision to establish the terms and conditions under which a service provider shall have the right to suspend or terminate a user's service for breach of the user's obligations.
Chapter 9: Universal access and
universal service policies
SCC shall propose policies for the approval of the ministry setting out the basis, principles and conditions relating to the provision of universal service and universal access in the kingdom
Chapter 10: Frequency spectrum
No person shall install, operate, or possess radio equipment or use a radio frequency except under and in accordance with a radio licence
Chapter 12: Telecommunications equipment
No person shall use any telecommunications equipment except under and in accordance with a licence issued by SCC.
SCC may prescribe technical standards in respect of telecommunications equipment and shall publish such technical standards
Chapter 13: Protection and prevention
against intrusion
Intrusion is considered as a way of misuse of the telecommunications network, and is a violation, and the same procedures stated in this by-law to treat the violations shall be applied to it
Chapter 14: Violations
The Governor shall nominate a violations committee and submit the nominations to the board for approval. The board's decision approving the nominations shall state the term and duration of the committee
The violations committee shall look into each violation and determine an appropriate penalty that is proportionate to the gravity of the violation in each case and the circumstances surrounding the same
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