Article 4 of the Saudi Communications and Information Technology Law
المادة 4 من نظام الاتصالات وتقنية المعلومات · الفصل الثاني: التراخيص
A fee is collected for issuing and renewing licenses, providing communications or IT services commercially and using frequencies, set by the Ministry on the Authority's proposal.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يُستحصل مقابل مالي -يورد إلى الخزينة العامة للدولة- لإصدار التراخيص وتجديدها، ولتقديم خدمات الاتصالات أو تقنية المعلومات تجاريًّا، ولاستخدام الترددات.
2- يُستقطع مبلغ للوزارة -تُحدده الوزارة بالاتفاق مع وزارة المالية ومركز الإيرادات غير النفطية-من المقابل المالي من تقديم خدمات الاتصالات أو تقنية المعلومات تجاريًّا؛ لصرفه في تطوير قطاع الاتصالات وتقنية المعلومات والبنية التحتية.
3- مع مراعاة ما ورد في المادة (الثانية) من النظام، تحدد الوزارة –بناء على اقتراح الهيئة- المقابل المالي لتقديم خدمات الاتصالات أو تقنية المعلومات تجاريّاً، وإصدار التراخيص وتجديدها، واستخدام الترددات.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 4 explained in plain English
This article regulates the financial side of carrying on communications and information technology activity, and consists of three rules:
- The fee is mandatory: a fee is collected for three matters: issuing and renewing licenses, providing communications or information technology services commercially, and using frequencies. This fee is paid into the State's general treasury.
- A share for the Ministry: an amount is deducted from the fee for providing services commercially for the Ministry, which the Ministry determines in agreement with the Ministry of Finance and the Non-Oil Revenues Center, and it is spent on developing the sector and infrastructure.
- The determining authority: the Ministry is the one that determines the amount of the fee on the Authority's proposal, taking into account the Law's objectives in Article 2.
The reference to Article 2 means that setting the fee must take into account objectives such as developing the sector, promoting access to services at suitable prices, attracting investment and promoting competition.
The article does not mention specific amounts or percentages; these are learned from the decisions the Ministry issues. It is linked to Article 5, which specifies the activities that require a license in the first place. Anyone who wants to know what he must pay for a particular activity would do well to consult the Authority or a lawyer who specializes in communications and information technology laws.
Practical example
A startup in Jeddah obtained a license to provide a commercial internet service. Under this article, it pays a fee for issuing the license and a fee for providing the service commercially, and the Ministry determines the amount of these on the Authority's proposal.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 4 of the Saudi Communications and Information Technology Law
Who sets telecom license fees?
The Ministry sets them on the Authority's proposal, taking into account the Law's objectives in Article 2.
Where does the money telecom companies pay go?
It is paid into the State's general treasury, and an amount is deducted for the Ministry from the fee for providing services commercially, spent on developing the sector and infrastructure.
Is there a fee for using frequencies?
Yes. The article provides for collecting a fee for using frequencies.
Articles this article refers to
More articles on Licensing Telecommunications Services
- Article 5
The article lists activities that may be carried out only with a license from the Authority, and allows the Council to require a license or registration for other services, devices and private networks.
1- يشترط الحصول على ترخيص من الهيئة قبل القيام بأيّ مما يأتي: أ- تقديم خدمات اتصالات للعموم أو استخدام شبكة اتصالات لهذا الغرض. ب- تقديم خدمة بنية تحتية لشبكات
- Article 6
The article states when the Authority or Council may refuse renewal of, cancel, suspend or amend a license, registration or permit, and requires the Authority to ensure continuity of service.
1- للهيئة رفض طلب تجديد الترخيص أو التسجيل أو التصريح، أو إلغاء الترخيص أو التسجيل أو التصريح، أو تعليق أو تعديل أي منها؛ في أيّ من الحالات الآتية: أ- عدم معالج
- Article 7
A service provider must obtain the Authority's approval before a material change in ownership or assignment of its license, and the Authority's non-objection to a material change in senior management, with 90 days for the Authority to decide.
1- دون إخلال بما تقضي به الأنظمة الأخرى، على مقدم الخدمة الحصول على الآتي: أ- موافقة الهيئة قبل اتخاذ أي من الإجراءين الآتيين: (1) تغيير جوهري في ملكية المرخص ل
- Article 8
The Council classifies licenses, registrations and permits into categories with provisions and conditions for each, and a service provider must comply with the terms of its license, registration or permit.
1- يُصنّف المجلس الترخيص والتسجيل والتصريح إلى فئات، ويضع الأحكام والشروط الخاصة بكل فئة. 2- على مقدم الخدمة الالتزام بأحكام وشروط الترخيص الممنوح له أو التسجيل
- Article 9
The Authority must establish a special register recording the data of licensees, registrants and permit holders and the category of each, with the data determined by the regulations.
تنشئ الهيئة سجلًّا خاصًّا تقيد فيه بيانات ومعلومات المرخص له أو المسجل أو المصرح له، وفئة الترخيص الممنوح له أو التسجيل أو التصريح المدرج فيه، وتحدد اللائحة تلك
- Article 12
No user or service provider may use any frequency until the Authority has allocated it to him, he has obtained the necessary license and he has paid the fee.
لا يجوز لأي مستخدم أو مقدم خدمة استخدام أي تردُّد إلا بعد تخصيصه له من الهيئة وحصوله على الترخيص اللازم وتسديد المقابل المالي.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.