KSA Telecommunications & Data Know-how Act
The Communications, Area, & Know-how Fee (CST), beforehand identified till 2022 because the Communications & Data Know-how Fee (CITC), is the authority answerable for regulating actions throughout the telecommunication and data know-how sectors in KSA.
Till lately, the telecommunications sector in KSA was ruled by the Telecommunications Legislation issued by Royal Decree No. (M/12) of 12/03/1422H (3 June 2001) and its By-Legal guidelines, which typically prohibited the supply of telecommunications providers or working (or connecting to) a public telecommunications community with out first acquiring a license from the CST. The licensing framework was in flux in recent times, with the CST taking a number of completely different approaches and providing quite a lot of “Class” licenses authorizing particular forms of exercise. So far, the variety of mounted and cellular service suppliers in KSA which have been issued with an “Particular person” license stays very restricted, nevertheless, the CST has issued class licenses to numerous service suppliers providing IoT, ISP, VoIP, VSAT, SMS and different specialised providers.
The brand new Telecommunication and Data Know-how Act, issued by Royal Decree No. M/106 of 02/11/1443H in June 2022 got here into impact on 4 December 2022 (the Telecommunications Act) changing the earlier Telecommunications Legislation. Implementing rules for the Telecommunications Act had been subsequently issued in November 2022 (the Telecommunications ByLaws).
nevertheless, the CST has issued class licenses to numerous service suppliers providing IoT, ISP, VoIP, VSAT, SMS and different specialised providers.
The brand new Telecommunication and Data Know-how Act, issued by Royal Decree No. M/106 of 02/11/1443H in June 2022 got here into impact on 4 December 2022 (the Telecommunications Act) changing the earlier Telecommunications Legislation. Implementing rules for the Telecommunications Act had been subsequently issued in November 2022 (the Telecommunications ByLaws).
The specific objective of the Telecommunications Act is to advertise digital transformation within the Kingdom and improve the providers offered throughout the ICT sector, significantly in gentle of current exponential progress. On the identical time, the brand new Telecommunications Act and ByLaws proceed to require a license or authorization to supply sure communications or know-how providers in KSA and, actually, they’ve successfully widened the scope of the CST’s regulatory jurisdiction to incorporate extra know-how and digital providers. Whether or not these modifications advance or hinder these coverage targets, due to this fact, could in the end depend upon the burden created by the CST’s implementation practices.
Probably the most notable modifications launched within the Telecommunications Act embody the next:
- ‘Telecommunications’ and ‘Data Know-how’ have been given broad definitions to convey a variety of latest telecommunication and digital providers underneath the scope of the brand new framework and the CST. Whereas the acknowledged purpose of the regulators on this regard is obvious, till additional steering is issued by the regulators, the change is prone to depart many service suppliers working or seeking to function in KSA unsure as to whether or not they can be obligated to acquire licensing and/or authorization from the CST. Regulatory counsel skilled with the views of the CST can help in clarifying these issues or can search steering instantly from the CST regarding extra complicated situations.
- Along with service suppliers requiring a license for the supply of telecommunication providers, service suppliers that use telecommunication networks to supply telecommunication functionalities are actually additionally required to acquire an acceptable license from the CST.
- Service suppliers could now get hold of a ‘Common Class License’ to supply providers captured underneath the Telecommunications Act, offered additionally they get hold of a separate ‘Service Allow’ for every of the captured providers. Pursuant to the newest model of the Classification Rules and the Common Class License Rules issued by the CST in 2024, there are at the moment 11 classes of providers for which service supplier could also be granted permits by CST, nevertheless, this listing continues to be up to date frequently.
- The CST Board has now been given the authority to require a license, registration or authorization for the supply of another providers associated to the telecommunication or data know-how sector, above and past the actions which can be captured underneath the present framework. This modification is prone to perpetuate regulatory uncertainty because the CST has successfully been granted the ability to control future applied sciences in unspecified methods as and when they might emerge into the KSA market.
- The Telecommunications Act now consists of particular provisions referring to the processing and safety of consumer data and confidential paperwork and locations an obligation on service suppliers to abide by relevant KSA legal guidelines and rules on this regard. These embody the information safety rules and insurance policies issued by CST and the Nationwide Cybersecurity Authority, in addition to the brand new KSA Private Information Safety Legislation, mentioned under.