• Four bidders, acquire large blocks of contiguous spectrum, ideal for deployment of next-generation broadband networks across Saudi Arabia

CITC announces winners of the auction for radio spectrum in Saudi Arabia 

In order to achieve Saudi Arabia’s Vision 2030 and as part of the National Transformation Program 2020 initiatives related to Communication and Information Technology, which aim to improve this sector and further develop digital infrastructure, CITC announces that the spectrum auction for 700 MHz and 1800 MHz radio licences ended 4 June 2017.  Four bidders, STC, Mobily, Zain and Atheeb, each acquired additional spectrum in contiguous blocks, which is suitable for provision of next generation wireless high-speed data services across Saudi Arabia.

The auction was conducted using a clock auction format, designed and implemented by NERA Economic Consulting.  Bidding took place using a secure system run over the Internet.  It is the first time that such an auction has been used to allocate radio spectrum in Saudi Arabia. 

Objectives

The use of an auction to allocate this spectrum is an important step in CITC’s broader efforts to develop and strengthen the competitive landscape in Saudi telecommunications market and thus ensure constant development of modern digital services provided to consumers. This auction is also consistent with CITC’s broader objective to promote optimal spectrum use under the Saudi Telecom Act.   

The auction has achieved the CITC’s goal of promoting allocation of larger contiguous blocks of frequencies for mobile broadband on a nationwide basis.  Deployment of this spectrum is expected to lead to faster broadband speeds, greater innovation, new investment and better coverage.

A total of 140 MHz of spectrum was auctioned in two separate bands – 700 MHz and 1800 MHz.  The auction outcome represents an increase of more than 35% in the amount of radio frequencies currently available to mobile networks to service wireless devices such as smartphones, tablets and laptops.

His Excellency, Dr Abdulaziz Salem Al-Rwais, Governor of the CITC, said: “The release of additional spectrum in the 700 MHz and 1800 MHz bands is a key milestone in the roll out of next generation mobile broadband across Saudi Arabia. Operators in Saudi Arabia now have access to larger swathes of contiguous radio spectrum, which I expect them to use to provide faster and more widespread mobile broadband for consumers and businesses across Saudi Arabia.” 

CITC is planning further releases of spectrum in other bands identified as suitable for mobile broadband over the coming years.