Communications and Information Technology Sector in Saudi Arabia

The communications and information technology sector in the Kingdom of Saudi Arabia is one of the oldest government sectors established in the Kingdom. It is supervised by the Ministry of Communications and Information Technology. Interest in establishing the Directorate of Post, Telephone, and Telegraph (PTT) began under the reign of King Abdulaziz Bin Abdulrahman Al Saud in 1926 aiming to connect the Kingdom's provinces and handle all kinds of postal and communications services.

The communications and information technology sector has undergone significant milestones since its establishment under the reign of the founding King Abdulaziz Bin Abdulrahman Al Saud, including:

Purchasing wireless devices: In 1925, the Kingdom initiated its first negotiations with companies abroad to purchase wireless devices and establish a wireless network. Additionally, marine cables were laid through the Red Sea to connect Jeddah Port with Port Sudan Port.

Introducing telephones into Saudi Arabia: Telephone service was introduced to the Kingdom in 1934, with a limited network that did not exceed 854 manual telephone lines distributed across Riyadh, Makkah al-Mukarramah, al-Madinah al-Munawwarah, Jeddah, and Taif.

Abu Handle: After telephones, magnetic phones, known as 'Abu Handle,' were introduced to the Kingdom. Powered by dry cell batteries, these telephones were operated within the confines of a neighborhood or city by operators stationed around the clock to receive calls from subscribers and then manually connect them using a wall-mounted wooden switchboard. They would physically connect the wires of the calling and called parties by rotating a mechanical lever or arm, known as the "handle," to activate the electrical current and ring the recipient's bell.

Wireless station and ministry: In 1948, a decision was issued to construct an international wireless station in Jeddah City to secure telegraph communication between the Kingdom and the United States of America. In 1953, the Ministry of Transportation was established, incorporating facilities of the PTT, and Prince Talal Bin Abdulaziz Al Saud was appointed as its first minister.

Telex: During the reign of King Saud Bin Abdulaziz Al Saud, telex services were introduced. Arabic was used for the first time in telex communication in 1960. Telex messages were sent by a specialized operator who would deliver the message via telephone. Individuals seeking to send a telex would visit the Public Telegraph Office and write their message on a form. Telephoned telex messages were recorded by a dedicated operator using a visual display unit, and the entire message was then displayed on a computer. The computer would send the message to the desired location by typing it out using keys. Upon arrival, the message content was communicated to the recipient either by telephone or by personal hand delivery.

Ministry of Post, Telephone, and Telegraph: The Kingdom established the Ministry of Post, Telegraph, and Telephone in 1975 to oversee the postal and communications sectors. Telephone lines operated did not exceed 130,000 lines, with a total revenue of SAR250 million. In 1984, the first optical fiber network started operating, alongside the establishment of communication centers and complexes across the Kingdom.

King Fahd Satellite Telecommunications City: It was established in 1987 on Makkah al-Mukarramah—Jeddah Highway, featuring four ground stations to operate with Arabsat, Intelsat (Atlantic Ocean), Intelsat (Indian Ocean), and Inmarsat maritime satellites, with the aim of connecting the Kingdom to the world through communication services.

Mobile phone service: In 1995, mobile phone services were launched in the Kingdom. Subsequently, in 1996, optical fiber networks were established to connect provinces across the Kingdom and VSAT services were introduced in the same year. In 1997, a smart grid for data transmission was launched.

Saudi Telecommunication Company (stc): In 1997, a decision was issued to separate the telegraph, post, and telephone services from the Ministry of Transportation and establish a Saudi joint-stock company named the Saudi Telecommunications Company (stc). The company commenced operations in 1998, and the Internet service provider (ISP) sector was liberalized in 1999.

Communications, Space, and Technology Commission: To provide advanced and reliable telecommunications services in the Kingdom, the Saudi Communications Commission was established in 2001. Tasked with regulating the sector and licensing companies following the Telecommunications Law, information technology was added to the commission's responsibilities in 2003, transforming it into the Communications and Information Technology Commission. In 2019, a decision was issued granting the commission regulatory and supervisory authority over the postal sector, which was later transferred to the Ministry of Transport and Logistic Services. On November 10, 2022, a decision was issued by the Council of Ministers to transfer regulatory authority in the space sector to the commission and change its name to the Communications, Space, and Technology Commission to achieve integration.

Internet: The Internet was first introduced to the Kingdom in 1994 when educational, medical, and research institutions were granted permission to access it. Public access was then enabled in 1999. The number of internet users in the Kingdom reached approximately two hundred thousand in 2000. In 2006, oversight of the Internet in the Kingdom was transferred from the King Abdulaziz City for Science and Technology (KACST) to the Communications, Space, and Technology Commission. Licensed providers then began operating internet gateways on a commercial basis. By 2018, the number of users had reached twenty-seven million. In 2022, internet usage reached 98.6 percent of the Saudi population.

Under the reign of the Custodian of the Two Holy Mosques, King Salman Bin Abdulaziz Al Saud, the Kingdom's and private sector investments in communications and information technology infrastructure surged to USD15 billion within three years (2017-2020). Mobile services usage among the population increased by 131.1 percent, and internet usage among the population reached 95.7 percent by the end of 2019. Fiber-optic services were extended to more than 3.5 million homes, and internet coverage reached 99 percent of populated areas. In 2023, 99 percent of the Kingdom's areas were covered by 4G services and 53 percent by 5G services.

As part of its strategic plan until 2023, the communications and information technology sector has set several objectives to position itself as an enabler of Saudi Vision 2030. These include establishing strategic digital pillars to achieve digital transformation in the communications sector, supporting and localizing technology and innovation, doubling the technology market, expanding fixed and mobile broadband services, launching fiber-optic deployment initiatives, and facilitating licensing procedures within the sector.