Global Insight Perspective | |
Significance | The ITC will offer a range of data communication services, high speed & authenticated data communications for a broad range of customers. |
Implications | The investment in international fibre follows suit with the Communications and Information Technology Commission (CITC)’s overall strategy to make Saudi Arabia one of the most advanced communications sectors in the region through the "Smart Cities" programme. |
Outlook | The large-scale network deployment will compete with Bayanat, which also won a public data telecommunications services licence. |
The 12,500-km-long fibre optic backbone known as the Saudi National Fibre Network (SNFN) will connect major cities in Saudi Arabia. In March 2005, ITC was awarded one of the two data licences in the kingdom, after which the company won the right to build wired and wireless networks for data services in Saudi Arabia, including international gateways and exchanges.
The state-of-the-art network infrastructure will enable the operator to deliver a range of data communication services, high speed & authenticated data communications for enterprises, governments and individuals. The vice-president of PR and Communication, Walid al-Abdulsalam, stated that, “as we completed most of our network infrastructure and internal support systems, we are ready to launch our first set of core services in the Saudi data communication market. Our service portfolio is augmented by unrivalled quality standards and service-level agreements to address the national and international market requirements in the information and communication technology (ICT) sector”.
The ITC has in the past partnered with FLAG for two landing stations in the Falcon submarine cable, which will enable the operator to procure its own high-capacity upstream international bandwidth and provide redundancy for the ITC in case of failure (see Saudi Arabia: 11 May 2005: ITC Signs Agreement for Two Landing Stations in Falcon Submarine Cable).
Outlook and Implications
In addition to the CITC, the ITC will also have the support of the Saudi Arabian General Investment Authority (SAGIA), as it is in line with its strategy to have an advanced telecom infrastructure deployed nation-wide that will provide high-capacity, reliable data communications and a service delivery platform. The ITC will also invest in broadband content applications, such as triple-play services, and will play a key role in developing the kingdom's telecoms industry to cope with its current economic growth.
The ITC faces competition from Bayanat, which won the other available data licence issued by the CITC, thus enabling it to build and operate a national optical, data and wireless network in addition to an international gateway. Bayanat has already commenced deployment of two nation-wide WiMAX access networks to serve both the enterprise and consumer market. This service provider will soon compete in both metropolitan and international access with the ITC as it has commenced building Fibre Metro Core and Access Networks in Riyadh, Jeddah and Dammam and is also investing in the SNFN to create gateways to all neighbouring countries.
Partnering with FLAG will give the operator a key advantage in the fibre sector. FLAG has recently launched the commercial operations of the FALCON submarine cable that links 11 countries across the Middle East and North Africa region (see Middle East and North Africa: 8 September 2006: FLAG Launches FALCON Submarine Cable System).