The State of ICT Market Development in Saudi Arabia...CITC - ICT Market Study (2009-2010) 7 1....
Transcript of The State of ICT Market Development in Saudi Arabia...CITC - ICT Market Study (2009-2010) 7 1....
The State of ICT Market
Development in Saudi Arabia
Online, Field Work (x3) & Interviews: 2009 - 2010
© The Kingdom of Saudi Arabia 2010
This work is copyright. Prepared for the Communications and Information Technology Commission (CITC). Apart from any use as
permitted under the Saudi Arabia’s Laws and Regulations, no part may be reproduced by any process without prior written
permission from the Communications and Information Technology Commission. Requests and inquiries concerning reproduction and
rights should be addressed to the General Manager, Public and International Relations, Communications and Information Technology
Commission, PO Box 75606, Riyadh 11588, Saudi Arabia.
This report does not represent the views of the Communications and Information Technology Commission. Any direct or indirect
interpretations implied through the report are solely of the authors. All data and information presented in the report represent the
views of the various consumer segments and opinions of ICT Stakeholders in Saudi Arabia.
Riyadh, Saudi Arabia
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Table of Contents 1. Executive Summary ...................................................................................7
1.1 Target Audience ..................................................................................................................................... 7
1.2 Guidelines to Reader ............................................................................................................................. 7
1.3 About the Communications and Information Technology Commission (CITC) ............................... 8
2. Survey Findings – Individuals & Households ........................................... 12
2.1 Respondent Ratings System ........................................................................................ 12
2.2 Field & Online Surveys Market Findings ..................................................................... 13
2.3 Individual/Household respondent profile and demographics .................................... 13
2.4 Public Awareness of CITC ............................................................................................ 14
2.4.1 Public Awareness of CITC and its roles .............................................................................................. 14
2.5 Mobile Services............................................................................................................ 15
2.5.1 Average Mobile Lines per Household ................................................................................................ 15
2.5.2 Number of Personal Mobile Lines used by Individuals .................................................................... 16
2.5.3 Reasons Behind Having Multiple Lines ............................................................................................. 17
2.5.4 Awareness of Mobile Number Portability (MNP) & Consideration for Changing Mobile Operator
18
2.5.5 Reasons for Changing the Mobile Operator ....................................................................................... 19
2.5.6 Rating the Mobile Services‟ Quality ................................................................................................... 20
2.5.7 Rating the Mobile Services‟ Prices...................................................................................................... 21
2.5.8 Frequency of Changing Mobile Handsets .......................................................................................... 22
2.6 3G Services ................................................................................................................. 22
2.6.1 Awareness and Usage of 3G Services ................................................................................................. 22
2.6.2 3G Services Usage ................................................................................................................................ 23
2.6.3 Reasons for Not Using 3G Services .................................................................................................... 25
2.6.4 Rating 3G Services‟ Quality ................................................................................................................. 26
2.6.5 Rating 3G services‟ Prices ................................................................................................................... 27
2.6.6 Annual Expenditure on Mobile Telecom Services ............................................................................. 28
2.7 Internet Services through Mobile Networks ............................................................... 29
2.7.1 Internet Through Mobile Telecom Services ....................................................................................... 29
2.8 Fixed Telephone Services ........................................................................................... 32
2.8.1 Fixed Line Household Penetration ..................................................................................................... 32
2.8.2 Number of Fixed Lines Per Household .............................................................................................. 32
2.8.3 Rating Quality of Fixed Line Services ................................................................................................ 33
2.8.4 Rating Fixed Line Services‟ Prices ...................................................................................................... 34
2.8.5 Annual Household Expenditure on Fixed Line Services ................................................................... 35
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2.9 Computers and Software ............................................................................................ 36
2.9.1 Household Personal Computer Penetration ...................................................................................... 36
2.9.2 Number of Desktops and or Laptops owned by households ............................................................. 36
2.9.3 Frequency period of changing Desktop or Laptop computer ........................................................... 37
2.9.4 Annual Household‟s and Personal Expenditure on Computer Equipment, Software and
Accessories ....................................................................................................................................................... 38
2.9.5 Percentage of individuals who use computers ................................................................................... 39
2.10 Household Broadband Internet Subscription ............................................................ 39
2.10.1 Household Internet Penetration and Internet Technologies Used .................................................. 39
2.10.2 Households Usage of Wireless Routers.............................................................................................. 40
2.10.3 Number of Computers in the Household that Share the Same Internet Connection ...................... 40
2.10.4 Households Sharing the Internet Connection With Other Households .......................................... 41
2.10.5 Current & Planned Average Speed of Household Internet Subscriptions ....................................... 42
2.10.6 Reasons for households planning to increase Internet speed .......................................................... 43
2.10.7 Rating of the price of Internet provided to household ...................................................................... 44
2.10.8 Annual Household Expenditure for Broadband Internet Service .................................................... 45
2.10.9 Rating the Quality of Broadband Internet Services........................................................................... 46
2.10.10 Rating Broadband Internet Services‟ Prices ..................................................................................... 47
2.11 Individual/Household Bundled Services .................................................................... 48
2.11.1 Satisfaction level with bundled services ............................................................................................. 48
2.11.2 Services that might be considered with a bundled service offer ....................................................... 49
2.12 Personal Web Pages ................................................................................................... 49
2.12.1 Individuals Owning or Managing Websites & Domain Names ........................................................ 49
2.13 Electronic Services ...................................................................................................... 51
2.13.1 Usage of ICT-based Payment Methods .............................................................................................. 51
2.13.2 Internet payment methods used by individuals ................................................................................ 52
2.13.3 Individuals Buying Products Online .................................................................................................. 53
2.13.4 Types of Products Paid for Using ICT-Based Payment Methods ..................................................... 54
2.13.5 Local & international websites that individuals seek to buy products over the internet ................ 55
2.13.6 Developments needs of local e-commerce websites used by individuals ......................................... 56
2.14 Electronic Banking ...................................................................................................... 57
2.14.1 Individual ownership of a bank account ............................................................................................ 57
2.14.2 Online Banking Services ..................................................................................................................... 57
2.14.3 Rating E-Banking Services‟ Quality .................................................................................................... 58
2.15 Pay Television Services ............................................................................................... 59
2.15.1 Individuals Watching Satellite TV Channels ..................................................................................... 59
2.15.2 Individuals Watching Satellite Pay TV Channels .............................................................................. 59
2.15.3 Individuals Subscribed to Pay TV services ........................................................................................ 60
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2.15.4 Video on Demand (VoD) Usage by Individuals Who are Subscribed to Pay-TV Services .............. 60
2.15.5 Program/Movies Orders Per Month by VoD Users ........................................................................... 61
2.16 Future Services ........................................................................................................... 62
2.16.1 Future Services Awareness and interest levels .................................................................................. 62
2.16.2 62
2.17 Complaints Handling .................................................................................................. 63
2.17.1 Types of Complaints Against Service Providers ................................................................................ 63
2.17.2 To whom were complaints about Service Providers reported .......................................................... 64
2.17.3 How Complaints Against Service Providers were Handled .............................................................. 64
2.17.4 Awareness of CITC customer complaints regulations ....................................................................... 65
3. Survey Findings - Establishments ........................................................... 66
3.1 Establishment Profile and Demographics .................................................................. 66
3.1.1 Establishments Sample Structure ...................................................................................................... 66
3.1.2 Establishments‟ Profile: ...................................................................................................................... 67
3.2 Public Awareness of CITC & Its Role (Est.) ..................................................................67
3.2.1 Establishments' Awareness of CITC and its Role .............................................................................. 67
3.3 Mobile Services........................................................................................................... 68
3.3.1 Mobile Allowances Offered by Establishments to employees ........................................................... 68
3.3.2 Consideration of Changing Mobile Service Provider and Reasons .................................................. 69
3.3.3 Reasons that keep establishment with its current mobile operator ................................................. 71
3.3.4 Rating Mobile Services‟ Quality (across all service providers) ......................................................... 71
3.3.5 Rating Mobiles Services prices (Consolidated) ................................................................................. 72
3.3.6 Usage, Quality & Prices of PMR, GMPCS and GPS Services ............................................................ 73
3.3.7 Establishments‟ Annual Expenditure on Fixed & Mobile Services .................................................. 74
3.4 Wireless Technologies Usage....................................................................................... 75
3.5 Fixed Telephone Services ............................................................................................ 75
3.5.1 Number of Fixed Lines Used Per Establishment Segment ............................................................... 75
3.5.2 Rating Quality and Prices of Fixed Line Services .............................................................................. 76
3.5.3 PBX Usage and Type of Used PBX ..................................................................................................... 78
3.5.4 Establishments‟ Call Center Experience ............................................................................................ 79
3.6 Computers, Servers and Software .............................................................................. 80
3.6.1 Establishments‟ Computer Penetration & Types of Servers Used .................................................. 80
3.6.2 Types of Software Used ....................................................................................................................... 81
3.7 Establishment Networks ............................................................................................ 82
3.7.1 Utilization of LAN and WAN Technologies ....................................................................................... 82
3.7.2 VPN Services and Remote Access ....................................................................................................... 83
3.7.3 Establishments providing Wi-Fi service for the public ..................................................................... 84
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3.8 Internet and e-Services ............................................................................................... 85
3.8.1 Internet & Broadband Penetration ..................................................................................................... 85
3.8.2 Reasons for not having internet broadband ...................................................................................... 86
3.8.3 Public and Private Establishments first contact with the Internet ................................................... 87
3.8.4 Establishments‟ average current & planned Internet speeds ...........................................................88
3.8.5 Internet and e-Services ....................................................................................................................... 89
3.8.6 Rating Internet Services‟ Prices .......................................................................................................... 90
3.8.7 Rating Internet Services‟ Quality ........................................................................................................ 91
3.8.8 Establishments Annual Expenditure on Broadband Internet Services ........................................... 92
3.9 SME, L&VL and Government Websites ...................................................................... 93
3.9.1 Presence of Websites ........................................................................................................................... 93
3.9.2 Establishments reasons for not owning website ............................................................................... 93
3.9.3 Establishments Websites Hosting Location ...................................................................................... 94
3.9.4 Usage of Local & Generic Domains for Websites .............................................................................. 95
3.9.5 Establishments reasons for not owning website ............................................................................... 95
3.9.6 Advertising Methods Used by Establishments .................................................................................. 98
3.10 e-Banking ................................................................................................................... 98
3.10.1 ICT Payment Methods Used by Establishments ............................................................................... 98
3.10.2 Establishments use of internet payment methods ............................................................................ 99
3.10.3 Establishments‟ Usage of Online Banking ....................................................................................... 103
3.11 ICT Expenditure ........................................................................................................ 104
3.11.1 Establishments' Annual ICT Expenditure For Investigated ICT Services & Products .................. 104
3.12 Bundled Services ....................................................................................................... 106
3.12.1 Satisfaction levels, reasons and aspired service bundles ................................................................ 106
3.13 Special Services ........................................................................................................ 108
3.13.1 Penetration of Special Services at Establishments .......................................................................... 108
3.14 Issues and Complaint Handling ................................................................................. 109
3.14.1 Issues with Service Providers and Destination of Complaints ....................................................... 109
3.14.2 How Complaints Against Service Providers were Handled ............................................................ 110
3.15 Investment ................................................................................................................. 111
3.16 Research and Development Expenditure .................................................................. 112
3.16.1 Spending on Research and Development (R&D) ............................................................................. 112
3.17 Research Collaboration with Universities ................................................................. 115
3.18 ICT Promotion ........................................................................................................... 116
3.18.1 ICT Promotion Initiatives Provided by Establishments................................................................... 116
4. Survey Findings - ICT Services and Technology Suppliers ....................... 117
4.1 ICT Services and Technology Supplier Profile & Activities ........................................ 118
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4.1.1 ICT Services And Technology Supplier Profiles ...............................................................................118
4.1.2 ICT Services and Technology Suppliers Lines of Activity ................................................................ 119
4.1.3 Company Registration Procedure Efficiency ................................................................................... 120
4.2 Awareness of CITC and its Role ................................................................................. 120
4.3 Marketing, Sales & Growth Activities ........................................................................ 121
4.3.1 ICT Services and Technology Suppliers products and services promotion activities .................... 121
4.3.2 Market Penetration and Growth Strategies ..................................................................................... 123
4.3.3 Marketing budgets ............................................................................................................................. 124
4.4 Consumer Needs and Demand Analysis .................................................................... 125
4.4.1 ICT products and services needs & demand analysis ...................................................................... 125
4.4.2 Products & Services Growth/Decrease Expectations ...................................................................... 127
4.5 Initiatives to Increase Adoption & Usage ................................................................... 127
4.5.1 ICT Products and Services Initiatives .............................................................................................. 127
4.5.2 Financial Facilities To Customers .................................................................................................... 129
4.5.3 Consumer Training Strategies .......................................................................................................... 130
4.6 Effectiveness of the IP protection laws in KSA .......................................................... 130
4.6.1 Rating Regulatory Performance ........................................................................................................ 131
4.6.2 Implementation Channel for Solutions ............................................................................................ 132
4.7 Products/Services Life Cycle Forecast ....................................................................... 133
4.8 Adoption forecast for the short term ......................................................................... 134
4.9 Research and Development Activities ....................................................................... 134
4.10 Growth Forecasts ...................................................................................................... 135
5. Service Provider Interviews - Current and Future Services .................... 136
5.1 Current ICT Services ................................................................................................. 136
5.2 Future ICT Services ................................................................................................... 137
5.2.1 List of Future ICT Services ................................................................................................................ 137
6. Further Reading..................................................................................... 138
7. Thank You Letter ................................................................................... 139
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1. Executive Summary
The key objective of this study is to support the development of market driven regulations, policies and ICT
initiatives.1 To date it is the most comprehensive survey report on the state of ICT growth and development in
the Kingdom of Saudi Arabia. This report is a consolidation of a number of qualitative and quantitative
research projects and activities conducted on the Kingdom of Saudi Arabia‟s Information and Communication
Technologies (ICT) sector, it covers key supply side stakeholders and numerous demand side consumers
spanning individuals/households, private and public sector establishments.
1.1 Target Audience
1. Leaders or professionals working actively in the KSA ICT sector
2. Knowledge economy teachers and students
3. ICT products, services and solutions manufacturers/wholesalers/resellers
4. Existing/Prospective license holders for Telecommunication/IT/Media Broadcasting Services
5. ICT Investors
1.2 Guidelines to Reader
While reviewing this report we encourage our readers to look for clues on how ICT products, services and
solutions can help you in your personal and business community. Countless number of opportunities exists to
increase your personal and establishment‟s productivity, employee‟s satisfaction, reduce costs, and generate
new valued added services or sales through the use of ICT products, services and solutions. Whether you‟re an
individual or an establishment, with the rapid development of Saudi Arabia‟s Information and Knowledge
Economies it is essential for you to develop your own understanding of the benefits of ICT to remain
competitive on a national and global level.
Embracing technology for competitiveness and profitability is not a new venture in the Arab World.
Knowledgeable readers upon revisiting the rich Arab world history will no doubt see the many benefits
brought about by the effective and efficient use of technologies of the time i.e. telescopes, measuring tools,
maps and ships. Therefore in the spirit of past and future successes we encourage all readers to share their
1Initially, the Market Studies Department considered naming the research “Wave 3”. Comparison of past and current market dynamics, ICT indicators and the broader project requirements required reengineering the previous methodology to introduce additional qualitative and quantitative components. Hence resulting in title for the research and corresponding report findings. In essence the report is measuring the “ICT pulse” in the Kingdom of Saudi Arabia.
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knowledge, experience and individual benefits gained through the use of ICT products/services and solutions
within their personal and professional life‟s and networks.
As one of the first comprehensive market studies for the Saudi Arabia Information and Telecommunications
Market all readers of this ICT Market Study Report will no doubt gain useful data, information and generate
their own insights to use within both personal and business lives Insha‟Allah.
Important note: any direct or indirect interpretations that may be implied through the report are solely of the
authors and not of the CITC. All data and information collected in 2009 and 2010 presented in the report
represent only the opinions and perceptions of the various consumer segments and opinions of ICT
Stakeholders in Saudi Arabia.
Furthermore, on behalf of CITC, the market studies department thanks all respondents and participants for
sharing their experiences and feedback over the course of the research planning and data collection phases. If
you have any comments or suggestions helpful in improving the usefulness of this and future reports please
contact us through [email protected].
1.3 About the Communications and Information Technology Commission (CITC)
The Telecom Act was approved in 2001, and the Telecommunications Bylaw was later issued in the year 2002.
Since then, Saudi Arabia‟s Information & Communications Technology (ICT) market witnessed a number of
significant developments which CITC is striving to protect and grow through balanced, fair and sustainable
regulatory practices and initiatives. Early market reforms and liberalization activities resulted in the licensing
of the incumbent Saudi Telecom Company (STC), its corporatization process as well as the liberalization of
some services such as VSAT and data. By 2004, the liberalization of mobile and data markets through the
licensing of new entrants resulted in the introduction of competition to the sector. By 2006, CITC smoothly
transitioned its regulatory framework from technology specific to a technology neutral regime continuing
however its service specific boundaries. In 2007, the fixed-line market was liberalized, and various regulatory
frameworks were developed through open public consultation processes designed to probe the rapidly
evolving market needs. In 2008 alongside the updated National Frequency Plan a number of Fixed Services
were issued as part of the liberalization process.
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Figure 1: ICT Regulatory Decisions Time-line
Expanding the scope of previous market research activities concluded in 2005, CITC in 2009 embarked on a
comprehensive ICT Market Study to gauge the „pulse‟ and needs of ICT Industry. The study‟s conclusions are
intended to serve as CITC‟s prime input for its continuous regulatory reforms, initiatives and facilitate KSA on
its journey to an Information Society & Knowledge Economy2. Any proposed initiatives or reforms will be
evaluated through scientific methods focusing on the market needs to create the appropriate level of
competitiveness, yield affordable, high quality and innovative services in line with international standards.
The Market Research efforts discussed in this report are part of a program of projects undertaken by CITC
called “ICT Market Study Project”. The aim is to study the current status of KSA ICT supply, adoption and
usage of ICT services in addition to the CITC rules and regulations‟ impact on the sector in terms of promoting
existing and new services, sector investments, and needed or associated regulatory reforms.
The Household/Individuals Field Survey; provided valuable market insights. Mobile penetration rate
reached 132%3. The field and online survey indicated that although still „expensive‟, subscribers rated mobile
services as „very good‟. The mobile ARPU reached 182/SAR/Line. Fixed telephony household penetration
reached 68% of surveyed households. Fixed services received „excellent‟ quality rating, though their prices
were regarded as „moderate to expensive‟. The Fixed line ARPU reached 177 SAR/month/line.
Household computer penetration reached 58.1% and household internet penetration reached 53.5% of
surveyed households with DSL forming 80% of internet technologies used at homes. The survey concludes
that the average household internet speed is currently 724 Kbps with a year-on-year growth of 82%.
Subscribers rated Internet prices as „moderate to expensive‟ and the quality of offered internet as „good to very
good‟.
2 For further information see National Information & Communication Technologies Plan –www.mcit.gov.sa 3 Visit CITC website for the latest figures available in ICT Quarterly Indicators Report – www.citc.gov.sa
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Based on rapidly growing internet user penetration rates (see previous CITC Quarterly Indicator Reports),
alongside the field survey CITC for the first time conducted The Online Household/Individual Survey.
The main purpose was to determine or identify the varying awareness, needs, demands, adoption and usage
levels across both field and online individual/household respondents. Based on the comparison of results
across both field and online surveys strong evidence suggests the online users have greater ICT Literacy levels,
understand the benefits ICT can bring to the personal and business life, have greater appetite for new
products and services, are more inclined to use electronic transactions, self help and value added services
provided over fixed, mobile and internet.
The Establishments Survey investigated several business segments from SOHO, Small and Medium size
establishments (SME), Large, Very Large (L&VL) private establishments to Governmental (Gov)
establishment‟s usage and adoption of ICT services. All establishments rated the fixed services‟ quality as
„excellent‟, nonetheless rated the prices as „expensive‟. SMEs, L&VL, and governmental establishments‟
expenditure on fixed services reached 7654 SAR/year, 80607 SAR/year and 262202 SAR/year respectively.
26.6%, 78%, and 79% of all software used in SMEs, L&VL and governmental establishments respectively
utilize Arabic language.
39.6% of SMEs, 90.8% of L&VL and 92.5% of governmental establishments use the internet. While the
average internet speed of SMEs stands at 650 Kbps, speed at L&VL and governmental establishments are
estimated at 1.76 Mbps and 7.54 Mbps respectively. SMEs and L&VL establishments rated internet services as
„Expensive‟, while the Governmental establishments rated them as „Very Expensive‟.
A comprehensive Service Providers Survey was conducted to identify the current services which were
found to be aligned with the international service provisions for wholesale, business and consumer sectors in
KSA. The study investigated new services planned for introduction in the KSA market including new-
technology based services designed to utilize improved Worldwide Interoperability for Microwave Access
(WiMAX), Long Term Evolution (LTE) and fiber optic technologies.
Earlier market research activities conducted by CITC were designed to focus on consumers and telecom
operators. Taking into consideration the rapidly evolving domestic and international ICT market landscape,
the enabling role of large ICT Services and Technologies Suppliers within the ICT value chain the project was
re-scoped to ensure all key stakeholder contributing to the efficiency of the industry be included.
The ICT Services and Technology Suppliers Survey observed that 62% of the respondents provide
„Software integration/Business solutions‟, „Consultancy services‟, „Maintenance & asset management services‟
and „Telecom core integration/solutions‟.. The average marketing budget, as percentage of total revenue, has
reached 4.1% in 2009.
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Most of the interviewed ICT services and technologies listed initiatives aimed to increase the ICT products and
services professional awareness and usage across their various customers segments. However, only few
presented successful initiatives helping increase the ICT usage across various employee and society segments.
Only 30% of ICT services and technologies offer financial facilities to their customers. 77% of the interviewed
establishments own local training centers for products and services, and 62% provide online training. On the
job training of university/vocational appears to be low as ICT services and technologies only enroll on average
9 such students a year. However based on feedback the enrollment number is expected to double in 2012.
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2. Survey Findings – Individuals & Households
The following sub-sections detail the major findings gathered from the qualitative and quantitative research.
Section 2 summarizes the major findings of the field and online surveys for individuals and households.
Section 3 summarizes the establishments‟ findings and presents various observations relevant to SMEs, large
& very large establishments in addition to governmental agencies.
2.1 Respondent Ratings System During the field survey‟s respondents were provided with show card including similar figure to efficiently capture responses for question requiring ratings (e.g. from very unsatisfied to very satisfied, see respective footnotes for further details.
Figure 2: ICT Value Chain- Individuals & Households Consumers
Very Negative
Opinion
Very Positive
Opinion
1 2 3 4 5
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2.2 Field & Online Surveys Market Findings Section 2 summarizes the major findings from the field and online surveys with respondents representing
individuals and households.
Figure 3: ICT Value Chain- Individuals & Households Consumers
2.3 Individual/Household respondent profile and demographics
Figure 4: Respondents‟ Profiles for Field & Online Surveys
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2.4 Public Awareness of CITC
2.4.1 Public Awareness of CITC and its roles
“Do you know what the Communications and Information Technology Commission‟s role
is?” (Multiple Choice)
Figure 5: Awareness of CITC & its Role (Field & Online Surveys)
54.7% of surveyed individuals were aware of CITC, of which 53.4% indicated CITC‟s role includes regulating
the telecommunications market. These percentages indicates over 50% of the survey populations are unaware
of CITC‟s main function as telecommunications market regulator.
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2.5 Mobile Services
2.5.1 Average Mobile Lines per Household
“How many mobile lines are there in your household including yours?”
Both the field and online surveys reveal that the average number of household mobile lines is estimated at 4.6
lines per household.
Figure 6: Mobile Lines Household Penetration (Field Survey)
Figure 7: Mobile Lines Household Penetration (Online Survey)
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2.5.2 Number of Personal Mobile Lines used by Individuals
“How many mobile lines do you personally use?”
The use of multiple mobile lines among individuals has become a trend. According to the survey results more
than a quarter of respondents are using many personal mobile lines. On average =1.32 lines/Individual
(mobile penetration =132%) and 1.61 lines/Individual from the field and online survey‟s respectively.
Figure 8: Number of Personal Lines Used by Individuals (Field Survey)
Figure 9: Number of personal mobile lines used by Individuals (Online Survey)
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2.5.3 Reasons Behind Having Multiple Lines
“Why do you use more than one mobile line?”
When respondents were asked „Why do you use more than one mobile line‟, 52% of field respondents and 38%
of online respondents indicated primary reason as being „had to keep a line as people know the number‟. 47%
of respondents indicated „cost saving‟ as the second most important reason for multiple lines and 42%
indicated „separate lines for business and person use‟ was reason to have multiple mobile lines for field
respondents.
The findings show consumers tend to split between their personal and business mobile usage through
multiple mobile usage.
Figure 10: Reasons behind Having Multiple Mobile Lines (Field Survey, Multiple Choice)
Figure 11: Reasons behind Having Multiple Mobile Lines (Online Survey, Multiple Choice)
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2.5.4 Awareness of Mobile Number Portability (MNP) & Consideration for Changing Mobile Operator
“Are you aware that you can now change your mobile operator in Saudi Arabia for free
without changing your phone number (Mobile Number Portability)?”
The online respondents showed 92% awareness compared to 75% of field respondents when asked „Are you
aware that you can now change your mobile operator in Saudi Arabia for free without changing your mobile
number‟.
“Taking into account that you can keep your mobile number, would you consider changing
your mobile operator to any other existing operator in the market?”
In the same course, 75% of field respondents may do not consider changing mobile operators while 61% of
online respondents similarly do not consider changing mobile operators.
Figure 12: Awareness of Mobile Number Portability & Consideration for Changing Mobile Operator
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2.5.5 Reasons for Changing the Mobile Operator
“Why would you consider changing your mobile operator?” (Multiple Choice)
The major reason indicated by field and online respondents were mainly to receive better rates and packages
and better quality of service. More than 40% of online respondents indicated that receiving better customer
care and innovative products as important reasons for considering changing the mobile operator.
Figure 13: Reasons for Changing Mobile Operator (Field Survey, Multiple Choice)
Figure 14: Reasons for Changing Mobile Operator (Online Survey, Multiple Choice)
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Q32 “Do you use the Internet service through your mobile handset provided by your mobile
operator?”
At 56%, online survey respondents are much more inclined to use the mobile Internet services provided by
operators on their personal handheld devices compared with 11% of field survey respondents.
Figure 15: Mobile device Internet usage (Field and Online Survey)
2.5.6 Rating the Mobile Services’ Quality
“How do you rate the quality of service provider mobile services? (Consolidated figures)
Looking at the overall satisfaction rating for quality of mobile services 4.05 (very good) and 3.22 (good) was
reported from field and online respondents respectively. Online respondents gave lower ratings to mobile
services‟ quality (average 3.22), with customer care , coverage and signal strength receiving the lowest ratings.
Figure 16: Consolidated rating the Quality of Mobile Services (Field Survey4)
4 Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
11%
89%
Field Survey
Use
Do Not Use 56%
44%
Online Survey
Use
Do Not Use
4.05 4.07 3.91 3.75 3.87 3.75 3.73 3.76
1
2
3
4
5
Overall satisfaction
Voice quality of local calls
Voice quality of international
calls
Quality of roaming service
Coverage in your area and signal strength
MMS handset Configuration
easiness
Easiness of Mobile Number
Portability
Customer Care
Rat
e (
Scal
e 1
-5)
Rating the Quality of Mobile services (Field Survey)
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Figure 17: Consolidated rating the Quality of Mobile Services (Online Survey)
2.5.7 Rating the Mobile Services’ Prices
“How do you rate the prices of service provider mobile services?”
On average across both field and online respondents rated5 prices of mobile service as „moderate to
expensive'. While the field survey participants on average rated the price at 3.39, the online respondents rated
the mobile services prices at 3.71. For both surveys, mobile calls to international destinations, mobile roaming
service and mobile internet service received moderate to expensive price ratings.
Figure 18: Individuals Rating the Prices of Mobile services (Field Survey)
5 Very Cheap, Cheap, Moderate, Expensive, Very expensive is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
3.22 3.47 3.33 3.25 3.053.32
2.783.07
1
2
3
4
5
Overall satisfaction
Voice quality of local calls
Voice quality of international
calls
Quality of roaming service
Coverage in your area and signal strength
MMS handset Configuration
easiness
Easiness of Mobile Number
Portability
Customer Care
Rat
e (
Scal
e 1
-5)
Rating the Quality of Mobile services (Online Survey)
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Figure 19: Individuals Rating the Prices of Mobile services (Online Survey)
2.5.8 Frequency of Changing Mobile Handsets
“How often do you change your Cellular handset?”
According to the field survey individual mobile subscribers on average change their mobile handsets every 15
months. Similarly online respondents on average change their mobile handsets every 16.4 months.
Figure 20: Frequency to Change Mobile Handsets (Field & Online Surveys)
2.6 3G Services
2.6.1 Awareness and Usage of 3G Services
“Do you know what 3G services are?” and “Which of the following 3G services do you know?”
Although 79.2% of mobile subscribers from field survey and 91.7% of mobile subscribers from online survey
know what 3G services are, 3G services usage levels are still low. Both surveys indicate video calling and high
speed internet as the most widely known 3G services.
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Figure 21: Awareness of 3G Services (Multiple Choice)
2.6.2 3G Services Usage
“Which of the following 3G services do you use?”
Across both field and online respondents Video Calling and High Speed Internet over 3G are the most used
services across all 3G Services.
Figure 22: 3G Services Usage by Mobile Subscribers (Field Survey, Multiple Choice)
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Figure 23: 3G Services Usage by Mobile Subscribers (Online Survey, Multiple Choice)
“How often do you use the 3G service?”
Compared to traditional services the use of 3G services is minimal.. Field respondents on average indicated
using 3G services once every 3.6 days, while online respondents indicated use once every 2.1 days.
Figure 24: Frequency of 3G services usage (Field Survey)
Figure 25: Frequency of 3G services usage (Online Survey)
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2.6.3 Reasons for Not Using 3G Services
“What are the reasons for not subscribing to 3G?” (Multiple Choice)
Approximately 84% of field respondents and 43% of online respondents‟ primary reason for not using 3G
services was because they felt no need for 3G services. At approximately 40%, the second reason for not using
3G services for both respondent types is felt to be „expensive‟.
Figure 26: Reasons for not using the 3G Services (Multiple Choice)
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2.6.4 Rating 3G Services’ Quality
“How do you rate the Quality of service provider 3G Services?
While field respondents rated6 the 3G services‟ quality an average of 3.60 (good to very good), online
respondents gave it a lower average rating of 2.81 (fair to good).
Figure 27: Rating Quality of 3G Services (Field & Online Surveys)
6 Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
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2.6.5 Rating 3G services’ Prices
“How do you rate the prices of service provider 3G services?”
Across both respondent groups on average 3G services prices were rated between “moderate to expensive”. On
average, field and online respondents rated 3G services prices as 3.88 and 3.81 respectively.
Figure 28: Rating the Prices for 3G Services (Field & Online Surveys)
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2.6.6 Annual Expenditure on Mobile Telecom Services
“How much did you spend over Mobile services over the past 12 months?”
For both field and online respondents who have a mobile we can see from the below figure that the majority
are spending between 500-4000 SAR on mobile services per year.
Figure 29: Annual Expenditure on Mobile Telecom Services (Filed & Online Surveys,
1% 3%
77%
14%
3% 0% 0%7% 9%
41%
14%
1% 4% 0%
Nothing Less than 500 SAR 500-4000 SAR 4,001-10,000 SAR 10,001-100000 SAR
More than 100,000 SAR
I don't know
Field Online
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2.7 Internet Services through Mobile Networks
2.7.1 Internet Through Mobile Telecom Services
“Have you used the Internet over the past 6 months?” The surveyed field respondents 60% used internet over the last 6 months.
Figure 30: Internet Usage over the last 6 months (Field Survey)
“Have you used the Internet through mobile telecom networks over the past 6 months?” At 70%, online survey respondents used mobile Internet services provided by operators compared with 20%
of field survey respondents.
Figure 31: Internet usage through mobile telecom networks (Field and Online Survey)
“Do you have a Mobile Internet subscription that you personally use inside and outside your home?” At 87%, of field and 75% of online survey respondents do not have a Mobile Internet Subscription used inside
and outside of the home.
Figure 32: Mobile Internet Subscriptions status for use inside and outside the home (Field and Online Survey)
60%
40% Used Internet
Did Not use Internet
20%
80%
Field Survey
Use Mobile Internet
Do Not Use Mobile Internet
70%
30%
Online Survey
Use Mobile Internet
Do Not Use Mobile Internet
13%
87%
Field Survey
Have a Mobile Broadband Subscription
Do Not Have a Mobile Broadband Subscription
25%
75%
Online Survey
Have a Mobile Broadband Subscription
Do Not Have a Mobile Broadband Subscription
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“How do you rate the Quality of Mobile broadband Internet services for your personal use inside and outside your home?” (Consolidated figures) The perceptions across various attributes for mobile broadband internet services both inside and outside the home are listed below. Overall online survey respondents were less satisfied across all service attributes compared to field survey respondents.
Figure 33 Satisfaction level across various attributes for mobile broadband internet services (Field Survey)
Figure 34 Satisfaction level across various attributes for mobile broadband internet services (Online Survey)
3.74 3.68 3.63 3.61 3.53 3.63 3.61
1.00
2.00
3.00
4.00
5.00
Overall satisfaction -
Mobile Internet
Connection Speed
Service availability (for
all times)
coverage in your area and signal
strength
Technical Support
Customer Care Voice calls over Internet
Rat
e (
Scal
e 1
-5)
Field Survey
2.72 2.59 2.42 2.59 2.42 2.56 2.51
1.00
2.00
3.00
4.00
5.00
Overall satisfaction -
Mobile Internet
Connection Speed
Service availability (for
all times)
coverage in your area and signal
strength
Technical Support
Customer Care Voice calls over Internet
Rat
e (
Scal
e 1
-5)
Online Survey
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“How much do you spend YEARLY for Mobile personal Internet?” For both field and online respondents who have a mobile and have used internet through subscription we can
see from the below figure that the majority are spending between 500-4000 SAR on mobile personal Internet
per year. Amongst online respondents 26% are not aware of their mobile personal internet expenditure.
Figure 35: Annual Expenditure on Mobile Personal Internet Services (Field and Online)
0%2%
11%
1%0% 0% 0%
3%
10%
24%
3%
0%2%
26%
Nothing Less than 500 SAR 500-4000 SAR 4,001-10,000 SAR 10,001-100000 SAR
More than 100,000 SAR
I don't know
Field Online
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2.8 Fixed Telephone Services
2.8.1 Fixed Line Household Penetration
“Are you subscribed to the fixed line service?”
Results for fixed line household subscription show 68% for field survey and 88.8% for online survey.
Figure 36: Household Subscriptions for Fixed Line Service (Field & Online Surveys)
2.8.2 Number of Fixed Lines Per Household
“How many fixed lines do you have at home?”
The average number of fixed lines is estimated at 1.09 and 1.4 lines per household for field and online surveys
respectively.
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Figure 37: Number of Fixed Lines Per Household (Field & Online Surveys)
2.8.3 Rating Quality of Fixed Line Services
“How do you rate the Quality of Fixed Telephony services?”
Looking at the overall satisfaction ratings7 for quality of fixed line services 4.23 (very good) and 2.93 (fair) was
reported from field and online respondents respectively. Across both survey it can be observed that field
respondents gave higher ratings across all attributes related to fixed lines services.
Figure 38: Rating Quality of Fixed Line Services (Field & Online Surveys)
7 Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
4.23 4.28 4.07 4.03 3.93 3.91
1
2
3
4
5
Overall satisfaction - fixed
Voice quality for local calls - Fixed
Voice quality for international calls -
Fixed
Easiness to obtain new or second line
- Fixed
Technical Support -Fixed
Customer Care -Fixed
Rat
e (
Scal
e 1
-5)
Field Survey
2.933.43 3.21 3.16
2.29 2.311
2
3
4
5
Overall satisfaction - fixed
Voice quality for local calls - Fixed
Voice quality for international calls -
Fixed
Easiness to obtain new or second line
- Fixed
Technical Support -Fixed
Customer Care -Fixed
Rat
e (
Scal
e 1
-5)
Online Survey
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2.8.4 Rating Fixed Line Services’ Prices
“How do you rate the prices of the Fixed Phone services?”
Field and online respondents rated8 the fixed services‟ prices as “moderate to expensive”. International calls
were considered the most expensive.
Figure 39: Rating Prices of Fixed Lines Services (Field & online Surveys)
“Q57. How do you rate the Quality of Prepaid Calling Cards?”
Looking at the overall satisfaction ratings9 for quality of prepaid calling cards very good and fair was reported
from field and online respondents respectively. Across both survey it can be observed that field respondents
gave higher ratings across all attributes related to prepaid calling card services.
8 8 Very Cheap, Cheap, Moderate, Expensive, Very Expensive is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
9 Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
3.97 4.01 3.77 3.71 3.77
1
2
3
4
5
Overall satisfaction Voice quality for local calls
Voice quality for international calls
Service availability (for all times)
Customer care
Rat
e (
Scal
e 1
-5)
Field Survey
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Figure 40: Rating Quality of Prepaid Calling Cards (Field & Online Surveys)
2.8.5 Annual Household Expenditure on Fixed Line Services
“How much did you spend over fixed telephone line services over the past 12 months?”
For both field and online respondents who have a fixed line at home we can see from the below figure that
majority are spending between 500-4000 SAR on fixed line services per year. .
Figure 41: Annual Household Expenditure on Fixed Line Services (Field & Online Surveys)
2.94 3.24 3.04 3.03 2.451
2
3
4
5
Overall satisfaction Voice quality for local calls
Voice quality for international calls
Service availability (for all times)
Customer careRat
e (
Scal
e 1
-5)
Online Survey
1% 2%
57%
7%
0% 0% 1%3%
10%
41%
9%
1% 0% 0%
Nothing Less than 500 SAR
500-4000 SAR 4,001-10,000 SAR 10,001-100000 SAR
More than 100,000 SAR
I don't know
Field Online
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2.9 Computers and Software
2.9.1 Household Personal Computer Penetration
“Do you own a computer for your personal use?”
The Field survey indicated a household personal computer penetration of 58.1%, while online survey indicated
a penetration of 93%.
Figure 42: Household Computer Penetration (Field & Online Surveys)
2.9.2 Number of Desktops and or Laptops owned by households
“What is the total number of laptops at your home?”
“What is the total number of desktop computers at home?”
For households equipped with computers, both surveys indicated higher ownership of laptops than desktops.
The field survey reveals households own 1.18 Desktop computers and 1.5 laptops on average, indicating an
emerging trend towards more laptop usage. This trend together with multiple mobile lines and adoption of 3G
service trend may suggest increase in mobility preferences of consumers. Comparison between the online and
field survey reveals higher PC and Laptop ownership amongst online respondents as indicated in figure 73.
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Figure 43: Number of Desktops/Laptops owned by Households (Field & Online Surveys)
2.9.3 Frequency period of changing Desktop or Laptop computer
“How often do you change your desktop or laptop?” (One choice)
For households who own desktop PC/laptop, respondents were asked „How often do you change your desktop
or laptop?‟ The below table summarizes percentages across field and online survey.
Figure 44: Frequency of changing laptop and desktop (Field Surveys)
Figure 45: Frequency of changing laptop and desktop (Online Surveys)
21%1%
15%
4%
55%
82%
0%
Laptop %
1 - 2 years
1 - 6 months
3 - 5 years
7 - 11 months
I don’t change my computer unless necessary
Not applicable
16% 1%
17%
2%
62%
74%
0%
Desktop %
1 - 2 years
1 - 6 months
3 - 5 years
7 - 11 months
I don’t change my computer unless necessary
Not applicable
2% 3%
25%
19%52%
Laptop %
1 - 6 months
7 - 11 months
1 - 2 years
3 - 5 years
Not Applicable/ I don't change unless necessary
1% 1%9%
17%
71%
Desktop%
1 - 6 months
7 - 11 months
1 - 2 years
3 - 5 years
Not Applicable/ I don't change unless necessary
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2.9.4 Annual Household’s and Personal Expenditure on Computer Equipment, Software and Accessories
“What is the household and personal expenditure spent on Computer equipment, Software
and accessories over the past 12 months?”
For both field and online respondents annual expenditure on computer equipment, software and accessories
is primarily between 500-4000 SAR per year. 35% of field respondents are not making such purchases.
Figure 46: Annual Household Expenditure on Computer Equipment, Software & Accessories
35%
15%
45%
2%0% 0%
12% 13%
23%
9%
1%4%
Nothing Less than 500 SAR 500-4000 SAR 4,001-10,000 SAR 10,001-100000 SAR More than 100,000 SAR
Field Online
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2.9.5 Percentage of individuals who use computers
“Do you use computers?”
The survey investigated the percentage of computer users. The below table provides for results for this inquiry
Percentage of individuals who use computers %
Individuals Use Computers 65.8%
Individuals Do not Use Computers 34.2%
Total respondents 100.0%
2.10 Household Broadband Internet Subscription
2.10.1 Household Internet Penetration and Internet Technologies Used
“Is Internet used at your home?”
Responses to field survey indicate household internet penetration is 53.5%, while online survey indicates 96%
penetration levels.
Figure 47: Household Internet penetration (Field & Online Surveys)
“What type of broadband Internet do you use at home?”
According to the field survey, DSL formed 80.8% of internet technologies used at households, while the online
Survey indicated that DSL formed 79.5%.
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Figure 48: Type of Internet Used by Individuals at home (Field & Online Surveys, Multiple Choice)
2.10.2 Households Usage of Wireless Routers
“Do you have a wireless router installed at home to access your Internet connection
wirelessly?”
Comparison of usage for wireless routers shows 47.5% for field and 76.2% online survey respondents.
Figure 49: Households Usage of Wireless Routers
2.10.3 Number of Computers in the Household that Share the Same Internet Connection
“Do you share the Internet connection with other households or other apartments in the
building?”
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According to field and online survey 1.57 and 2.5 respectively represent the number of computers sharing the
same internet connection within a household.
Figure 50: Number of Household Computers Sharing Same Internet Connection (Field and Online Survey)
2.10.4 Households Sharing the Internet Connection With Other Households
“Do you share the cost of the Internet connection with the other households or apartments in
the building?”
For the first time in KSA, the survey investigated the number of households that share the same internet
connection.
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Figure 51: Households Sharing the Internet Connection with Other Households (Field & Online Surveys)
Respectively the field and online surveys revealed that 9.4% and 15.8% of internet enable households are
sharing their internet connection with neighboring/nearby households. This finding can be attributed to
wireless routers usage; as 45.1% (Field survey) and 76.2% (online survey) of internet enabled households use a
wireless router. 84.0% of field respondents who share their internet connection also share its cost.
2.10.5 Current & Planned Average Speed of Household Internet Subscriptions
“What is the speed of broadband Internet at your home?”
Field survey indicates an average current internet speed for household subscriptions of 724 kbps. However,
for the same survey, the average planned speed over the coming 12 months period is expected to reach 1.316
Mbps, indicating 82% year on year growth. The Online survey indicates an average current internet speed for
household subscriptions of 1.22 Mbps. However, for the same survey, the average planned speed over the
coming 12 months period is expected to reach 6.14 Mbps, indicating 402% year on year growth.
Figure 52: Current & Planned Household Internet Speeds (Field & Online Surveys)
“If you plan to increase the Internet broadband speed at your home, to which speed do you
want to upgrade?” (One Choice)
For the respondents who have internet at home approximately 48% have plans to make some form of upgrade
to their internet speed, the table below presents approximate percentage breakdown for planned speeds.
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Internet speed upgrade Field
Survey Online Survey
I don‟t want to increase the speed 52.4% 18.7% 128 kbps 0.2% 0.1%
256 kbps 1.9% 0.7% 512 Kbps 4.7% 4.3% 1 Mbps 21.3% 14.2% 2 Mbps 8.4% 11.1% 4 Mbps 5.7% 20.2% 8 Mbps 2.7% 5.4% 10 Mbps 1.1% 5.5% 16 Mbps 0.3% 1.1% 20 Mbps 1.4% 18.8% Respective Sample Size 100.0% 100%
Figure 53: Planned internet broadband upgrades (Field and Online Survey)
2.10.6 Reasons for households planning to increase Internet speed
“What is the reason for increasing the internet speed?” (Multiple Choice)
For the 48% of households planning to upgrade the internet speed over the coming 12 months, the survey
investigated the reasons for such plans as depicted in the figures below (multiple choice).
Figure 54: Reasons for households to increase internet speed (Field and Online Survey)
64%80%
37% 25% 9%
To have better quality To have better speed To increase the download limitation
Increasing to a higher speed does not cost that
much
There are new offers in the market that I want to
subscribe to
Field Survey
44%63% 49% 28% 14%
To have better quality To have better speed To increase the download limitation
Increasing to a higher speed does not cost that
much
There are new offers in the market that I want to
subscribe to
Online Survey
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2.10.7 Rating of the price of Internet provided to household
“How do you rate the price of the broadband services at your home?” (Single Choice)
The field survey investigated rating the prices of Internet provided to households. The table below provides
respondents price ratings for Internet. For the field survey, 61% rated internet provided to the household
between very cheap to moderate and 39% expensive to very expensive. 10 % respondents did not know. 18% of
respondents of online survey indicated internet prices as moderate, whereas, 39% as expensive or very
expensive.
Figure 55: Rating Prices of Internet Services (Field and Online Survey)
3% 9%49%
30% 9%
Very Cheap Cheap Moderate Expensive Very Expensive
% o
f R
esp
on
de
nts
Field Survey
0% 1% 18% 39% 41%
Very Cheap Cheap Moderate Expensive Very Expensive
% o
f R
esp
on
de
nts
Online Survey
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2.10.8 Annual Household Expenditure for Broadband Internet Service
“How much does it cost on a YEARLY basis the broadband Internet at your home?”
For both field and online respondents annual expenditure for Internet Services is primarily between 500-
4000 SAR per year.
Figure 56: Annual Household Expenditure over Internet Services (Field & Online Surveys)
0.0%3.7%
38.2%
2.9%0.2% 0.2% 0.0%0.0%
5.8%
61.4%
15.0%
1.1% 0.1% 0.0%
Nothing Less than 500 SAR
500-4000 SAR 4,001-10,000 SAR
10,001-100000 SAR
More than 100,000 SAR
I don't know
Field Online
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2.10.9 Rating the Quality of Broadband Internet Services
“How do you rate the Quality of Internet services used at your home?”
While field survey respondents overall rated10 broadband internet services at 3.84 (good to very good), online
respondents rating was of 2.40 (fair to good).
Figure 57: Rating the Quality of Household Broadband Internet Services (Field & Online Respondents)
10 Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option
3.84 3.71 3.61 3.72 3.71 3.58 3.63 3.57
12345
Overall satisfaction
Connection speed
Service availability (for
all times)
Coverage in your area and signal strength
Easiness to obtain new or
second line
proper technical support
Customer care Voice calls over Internet
Rat
e (
Scal
e 1
-5)
Field Survey
2.40 2.32 2.29 2.73 2.98 2.06 2.19 2.3412345
Overall satisfaction
Connection speed
Service availability (for
all times)
Coverage in your area and signal strength
Easiness to obtain new or
second line
proper technical support
Customer care Voice calls over Internet
Rat
e (
Scal
e 1
-5)
Online Survey
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2.10.10 Rating Broadband Internet Services’ Prices
“How do you rate the price of the broadband services at your home?”
Looking at the rating11 of field respondents for broadband services‟ prices the majority of 79% revealed prices
as (moderate to expensive) and majority of 80% as (expensive to very expensive) for online respondents.
Figure 58: Rating the Prices of Broadband Internet Services (Field & Online Surveys)
11
11 11 Very Cheap, Cheap, Moderate, Expensive, Very Expensive is represented from 1 to 5 respectively. ‘I don’t know’ response was available
option.
3% 9% 49% 30% 9%
Very Cheap Cheap Moderate Expensive Very Expensive% o
f R
esp
on
de
nts
Field Survey
0% 1% 18% 39% 41%
Very Cheap Cheap Moderate Expensive Very Expensive% o
f R
esp
on
de
nts
Online Survey
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2.11 Individual/Household Bundled Services
2.11.1 Satisfaction level with bundled services
“What is the level of your satisfaction with the bundled services offers?”
Looking at responses from both field and online survey it can be observed that poor awareness levels and lack
of subscription to bundled service offers constitute the majority of responses.
Figure 59: Awareness and Satisfaction levels for bundled services (Field & Online Surveys)
“If not satisfied, what are the reasons?”
At approximately 74% the majority of field respondents are satisfied, with 30% very satisfied and 54%
satisfied. The main reasons of dissatisfied individuals/households included „Weak technical support‟
and bundled „offers are too difficult to understand‟.
48.4%
30.4%
6.3%11.5%
3.0% 0.3% 0.1%
Field Survey
Not Aware of bundled services offers
Aware of but not subscribed to any bundled services
Very satisfied
Satisfied
Neutral
Unsatisfied
Very unsatisfied
69.9%
12.2%
1.0%
4.7%
5.8%
3.1%
3.3% 0.2%
Online Survey
Not Aware of bundled services offers
Aware of but not subscribed to any bundled services
Very satisfied
Satisfied
Neutral
Unsatisfied
Very unsatisfied
not answered
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2.11.2 Services that might be considered with a bundled service offer
“What are the services that you wish to be bundled together?” (Multiple Choice)
The survey investigated various services which individuals/households might consider within a bundled offer.
The figure below provides associated findings.
Figure 60: Awareness and Satisfaction levels for bundled services (Field & Online Surveys)
Analysis reveals that fixed telephony services and mobile services in addition to „electricity‟ are the highest
services that are preferred by individuals to be considered in bundled offers.
2.12 Personal Web Pages
2.12.1 Individuals Owning or Managing Websites & Domain Names
“Do you own or manage a personal website?”
36.9%41.7%
23.2%
11.2%
33.6%
22.4%14.1%
23.8%
0.6%
Fixed Telephony
Mobile Telephony
Internet Services
TV subscription
Electricity Water All of the above
None of the above
Others
Field Survey
34.0% 31.1%36.4%
14.9%22.7% 18.9%
30.2% 28.5%
7.0%
Fixed Telephony
Mobile Telephony
Internet services
TV subscription
Electricity Water All of the above
None of the above
Others
Online Suvey
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The field and online respondents who own or manage a personal website are reported as 5% and17%
respectively.
Figure 61: Individuals Owning or Managing a Website (Field & Online Surveys)
“Please indicate your websites various domains “(Multiple Choice)
Both field and online survey results revealed significant difference between ownership or management of
generic domains versus local domains. With the launch of Saudi Domain Name registration process12 and the
introduction of Arabic Domain Names the usage of local domain names is expected to increase.
Figure 62: Website Domains Owned or Managed by Individuals (Multiple Choice, Field and Online Surveys)
12 Individuals or establishments interested in registering a Domain Name Registration can find more information at http://www.saudinic.net.sa
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2.13 Electronic Services
2.13.1 Usage of ICT-based Payment Methods
“Do you use any of the listed payment methods?” (Multiple Choice)
The survey explored the usage of several ICT-based payment methods namely online payment, payment
through ATM (Automatic Teller Machine) and payment through telephone interactive voice recognition (IVR)
system. Amongst the 37% field survey respondents who are using ICT-based payments the most common
form is through Bank Automatic Teller Machine at 93%. From the 84% online respondents who are using
ICT-based payments, „Online Payment‟ and „Payment through Bank ATM‟ received similarly high usage levels.
Figure 63: ICT based Payment Methods Used by Individuals (Field & Online Surveys, Multiple Choice)
63%
37%
Field Survey
I don’t use any of mentioned methods
I use ICT-based Payment Methods
16%
84%
Online Survey
15% 15%
93%
Online Payment Payment through Phone IVR
(Interactive Voice Recordings)
Payment through Bank ATM
% ICT Based Payments (Field Survey)
67%
33%
66%
Online Payment Payment through Phone IVR (Interactive
Voice Recordings)
Payment through Bank ATM
% ICT Based Payments (Online Survey)
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2.13.2 Internet payment methods used by individuals
“Which of the below payment methods do you use through the Internet?” (Multiple Choice)
Amongst field survey respondents using internet for payments approximately 45% and 38% preferred to pay
„Through Credit Card‟ and „… through Internet Banking‟ amongst other services. Similarly for online survey
respondents paying through internet the most preferred method is through Internet Banking.
On the other hand, for online survey respondents, credit card payment is preferred by 51% whereas payment
through Internet Banking is preferred by 86%.
Figure 64: Internet Payment Methods Used by Individuals (Field & Online Surveys, Multiple Choice)
45%
13%
38%
5%
Through Credit Card Through special internet payment cards
Payment through Internet Banking
Through e-payment services such as PayPal
Field Survey
51%
22%
86%
22%
Through Credit cards Through special internet payment cards
Payment through Internet Banking
Through e-payment services such as PayPal
Online Survey
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Figure 65: Expenditure for bills through various ICT-Based Payment Methods (Field and Online Survey)
2.13.3 Individuals Buying Products Online
“Do you buy products over the internet?”
1.3% of field respondents and 35% of online respondents indicated that they buy products over the internet.
Figure 66: Individuals Buying Products over the Internet (Field & Online Surveys)
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2.13.4 Types of Products Paid for Using ICT-Based Payment Methods
“Through the Internet, which of the following products and services do you buy?” (Multiple
Choice)
Electronic equipment, online content and mobile content were the main products paid for over through the
internet by the field respondents.
Electronic equipment, software and financial stocks, were the main products paid for over internet by online
respondents.
Figure 67: Types of Products Bought by Individuals over the Internet (Field & Online Surveys)
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“Through the Internet, how much did you spend for buying products during the last 12
months (in SR)?”
With only 1.3% and 35% of field and online survey respondent purchasing products over the internet the
interpretations from below figure will become more robust, however for the purposes of illustration 8.1% of
online respondents are spending more than 1,001-3,000 SAR per year.
Figure 68: Annual expenditure for products over the internet (Field and Online Survey)
2.13.5 Local & international websites that individuals seek to buy products over the internet
“From which websites do you buy over the Internet?” (Single Choice)
The survey investigated the Local & international websites that individuals seek to purchase products and
services over the internet. 44% of online respondents who are typically more mature ICT users chose only to
buy products from websites of international companies.
Figure 69: Purchased over Local v.s International Website (Field and Online Survey)
0.20% 0.26% 0.40% 0.20% 0.00% 0.00% 0.07% 0.13%
3.5%
7.2%8.1%
4.7%
2.6%
1.0%
5.0%
2.6%
Less than 500
500–1,000
1,001 - 3,000
3,001 - 5,000
5,001 - 7,000
7,001 - 9,000
More than 9,000
No answer/I don’t know
% Field % Online
21%
11%
68%
Field Survey
17%
44%
39%
Online Survey
From websites of local companies
From websites of international companies
From both
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2.13.6 Developments needs of local e-commerce websites used by individuals
“Do you think that local e-commerce websites should be improved?” (One Choice)
The survey investigated the development needs of local e-commerce websites used by individuals. Nearly the
entire online respondent indicated the need for improvement of local e-commerce websites. For field
respondents who have an opinion on whether local e-commerce website need improvement a significant
majority indicated that they don't know (see the figure). For online survey respondent at 93% majority believe
local e-commerce „need to be improved‟.
Figure 70: Improvement of Local e-Commerce Websites (Field and Online Survey)
37%
16%
47%
Field Survey
93%
1%
6%
Online Survey
Needs To be Improved
No Need for Improvement
I don't know
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2.14 Electronic Banking
2.14.1 Individual ownership of a bank account
“Do you have a bank account?”
For the purpose of investigating related ICT-based banking services, the survey investigated individual‟s
ownership of a bank account. 48% of field survey respondents do not have a bank account.
Figure 71: Bank account ownership (Field and Online Survey)
2.14.2 Online Banking Services
“What do you use online banking for?”
Surveys indicated that 17% of field respondents and 82% of online respondents who own bank accounts use
their online banking service. Account and balance inquiries, paying and managing bills and transferring
money between local bank accounts are the most popular online banking services.
52%
48%
Field Survey
95%
5%
Online Survey
Have a Bank Account
Do Not Have a Bank Account
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Figure 72: Online Banking Services used by Individuals (Field & Online Surveys)
2.14.3 Rating E-Banking Services’ Quality
“How do you rate the quality of e-banking services?”
For the field survey average quality rating13 of 4.2 (very good to excellent), while for the online survey average
was slightly lower at 3.9 (good to very good).
Figure 73: Rating E-Banking Services‟ Quality (Field and Online Surveys)
13
Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
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2.15 Pay Television Services
2.15.1 Individuals Watching Satellite TV Channels
“Do you watch Satellite TV channels?” 96% of field and online respondents watched satellite TV channels.
Figure 74: Individuals Watching Satellite TV Channels
2.15.2 Individuals Watching Satellite Pay TV Channels
“Do you watch Satellite Pay TV channels?” 48% of field and 47% of online respondents watch Pay TV channels.
Figure 75: Individuals Watching Satellite TV Channels
48%
52%
Field Survey
47%
53%
Online Survey
Watch Pay TV
Do Not Watch Pay TV
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2.15.3 Individuals Subscribed to Pay TV services
“How do you watch Satellite pay-TV?”
24.6% of field survey respondents are subscribed to pay-TV channels and 24.3% for online survey
respondents.
Figure 76: Individuals Subscribed to Pay TV services (Multiple Choice)
2.15.4 Video on Demand (VoD) Usage by Individuals Who are Subscribed to Pay-TV Services
“Through subscription to pay TV, do you use the Video on Demand service?”
Only 15% of field survey respondents who are subscribed to pay-TV services use Video on Demand services
(3.7% of individuals) while the percentage reached 24% for online survey respondents.
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Figure 77: Video on Demand (VoD) Usage by Individuals Who are Subscribed to Pay-TV Services
2.15.5 Program/Movies Orders Per Month by VoD Users
“If answer is „Yes‟, how many programs/movies do you and your family order per month?”
Significant percentage of the field survey respondents are watching between 5 to 20 VOD per month whereas
majority of the online survey respondents (63.6%) are watching less than 5 VOD programs a month.
Figure 78: Program/Movies Orders per Month by VoD Users (Field and Online Survey)
16.1%
39.3% 37.5%
5.4%1.8%
0%
20%
40%
60%
80%
Less than 5 movie/program a
month
5-10 movies/programs a
month
11-20 movies/programs a
month
21-50 movies/programs a
month
More than 50 movies/programs a
month
% o
f V
oD
use
rs
Field Survey
63.6%
27.3%
7.6%0.0% 1.5%
0%
20%
40%
60%
80%
Less than 5 movie/program a
month
5-10 movies/programs a
month
11-20 movies/programs a
month
21-50 movies/programs a
month
More than 50 movies/programs a
month
% o
f V
oD
use
rs
Online Survey
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2.16 Future Services
2.16.1 Future Services Awareness and interest levels
2.16.2
“Do you know the following services and if so, would you consider subscribing to them once available?” (Multiple Choice, consolidated figures)
For below mentioned future services, field survey respondents indicated high level of unawareness. Very low
% of interviewed respondents had interest in subscribing to such services. However, this may be due to the
fact that individuals are not aware of these services or have little understanding of the corresponding benefits.
Similiarly online survey respondents have high levels of unawareness of various future services.
Figure 79: Future services awareness and interest levels (Field Survey, Multiple Choice)
54% 51% 56% 50%61% 62%
51% 52% 50%63% 65%
55% 64% 67% 76%67% 63% 64%
79%
15% 13% 11%13%
8% 7%9% 12% 10%
10% 11%10%
10% 9%4%
8% 12% 9%
4%32% 36% 33% 37% 32% 31% 40% 36% 40%27% 23%
35% 26% 24% 19% 25% 24% 26%17%
I don’t know the service I am interested in the service I know the service but not interested
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Figure 80: Future services awareness and interest levels (Online Survey, Multiple Choice)
2.17 Complaints Handling
2.17.1 Types of Complaints Against Service Providers
“Have you ever faced any of the following with your service providers?”
„Customer care not answering complaints efficiently‟ was ranked the highest across both field and online
survey respodents.
Figure 81: Types of Complaints against Service Providers (Field and Online Survey Multiple Choice)
49%35% 41% 40% 45% 45% 43% 44% 44%
60%44%
57% 64% 65% 71%48% 44% 41%
56%
16%29% 24% 17% 15% 19% 19% 26% 23%
17%
21%14%
17% 14%12%
27%21% 31%
24%
35% 36% 35% 43% 39% 37% 38% 30% 33%23%
35% 30%18% 21% 17% 25%
35% 29% 20%
I don’t know the service I am interested in the service I know the service but not interested
Field Survey6%
Field Survey9%
Field Survey12% Field Survey
4%
Field Survey80%
Online Survey36%
Online Survey60%
Online Survey63% Online Survey
48%
Online Survey19%
0%
20%
40%
60%
80%
100%
The prices were not according to the
advertisment
The service quality you got was not what you were promised in the ad or contract of the service
provider
The customer care did not answer your complaints
efficiently
4. The service provider did not claim responsibility for
the reason of the complaint
None of the Investigated Complaints
% o
f re
spo
nd
en
ts
Field and Online Surveys
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2.17.2 To whom were complaints about Service Providers reported
“To whom did you report your complaints?” (Multiple Choice)
Findings reveal that customer care is the most popular party that receives customers‟ complaints. Only 2 % of
field respondents and 11% of online respondents who faced issues with the service provider complained to
CITC.
Figure 82: To Who Complaints against Service Providers were reported (Multiple Choice)
2.17.3 How Complaints Against Service Providers were Handled
“How was your complaint handled?”
8% of field respondents‟ and 6% of online respondents‟ officially reported complaints were addressed and
corrected. „Not addressing the complaint‟, „customer never receiving a promised call‟, and „loop between
technical support and customer care referrals‟ were the major issues respondents express regarding
complaints‟ handling.
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Figure 83: How Complaints against Service Providers were handled (One choice)
2.17.4 Awareness of CITC customer complaints regulations
“Are you aware of that you can complain to the Communications & Information Technology
Commission if your complaint was not resolved with your operator 15 days after officially
filing the complaint with the operator?”
Current CITC customer complaint regulations allow customers of service operators to complain to the
Communications & Information Technology Commission if their complaint was not resolved with their
operator 15 days after officially filing the complaint with the operator. Only 30% of field respondents and 28%
of online respondents were aware of CITC customer complaint regulation.
Figure 84: Awareness of CITC customer complaints regulations
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3. Survey Findings - Establishments
Section 3 summarizes the establishments‟ findings and presents various observations relevant to SMEs, large
& very large establishments in addition to governmental agencies.
Figure 85: ICT Value Chain-Consumer-Business & Government Surveys
3.1 Establishment Profile and Demographics
3.1.1 Establishments Sample Structure
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Figure 69: Establishments Sample Structure14
3.1.2 Establishments’ Profile:
Figure 86: Establishments' Profile
3.2 Public Awareness of CITC & Its Role (Est.)
3.2.1 Establishments' Awareness of CITC and its Role
“Have you heard of the Communications and Information Technology Commission (CITC)?”
In general, CITC has less awareness amongst small to medium enterprises (SME) when compared with
large/very large (L&VL) and governmental establishments regarding awareness of CITC and its roles and
responsibilities.
14 Classification and representative sampling of establishment aligned with figures from Ministry of Economy and Planning and Central Department of Statistics. Small to Medium Enterprises (SME) is a superset of Small Office/Home Office (SOHO), Small and Medium Enterprises.
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Figure 87: Awareness of CITC and its Role
“Do you know what the role of the CITC is?”
Figure 88: Awareness of CITC roles
3.3 Mobile Services
3.3.1 Mobile Allowances Offered by Establishments to employees
“What is the percentage of employees that receive mobile allowance from the establishment?
(i.e. paid by the establishment)”
As per findings of establishment survey on average 64% of establishment do not provide any of their
employees with a mobile allowance. For the establishments that do provide such allowance it is typically
assigned to small percentage of the employees. L&VL establishments are the most inclined to offer such
allowances to their employees. Given the competitive global market place this is no surprise.
49.1%71.1%
95.0%
0%
20%
40%
60%
80%
100%
SMEs L&VL Gov
Awareness of CITC role
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Figure 89: Employees Receiving Mobile Allowances from their Establishments
3.3.2 Consideration of Changing Mobile Service Provider and Reasons
“Does the establishment consider changing its main mobile operator?”
81% of establishments indicated they would not change mobile operator for mobile allowances provided to
their employees. For the establishments that would change, the main reason was the „need for better rates and
packages‟ and „better quality of customer care‟.
“Why does the establishment consider changing its mobile operator?”
1%
2%
1%
1%
6%
4%
8%
78%
3%
1%
0%
14%
12%
10%
22%
38%
3%
0%
0%
0%
0%
5%
15%
78%
2%
1%
0%
5%
6%
6%
15%
64%
0.0% 40.0% 80.0%
100% (All Employees)
80-99%
60-79%
40-59%
20-39%
10 - 19%
less than 10%
Establishment does not provide such allowances
Percent receiving allowance
em
plo
yee
bre
akd
ow
n
Average
Gov
LVL
SME
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Figure 90: Consideration of Changing Mobile Service Provider and Reasons (Multiple Choice)
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3.3.3 Reasons that keep establishment with its current mobile operator
“In general, what are the reasons that keep the establishment with its current mobile operator?”
(Multiple Choice)
For those establishments who provide for mobile service allowances to their employees and do not consider
changing their mobile service provider, see below figure for reasons establishments stayed with current
mobile operator.
Figure 91: Establishment Reasons to stay with current mobile operator (Multiple Choice)
3.3.4 Rating Mobile Services’ Quality (across all service providers)
“How do you rate the quality of service provider Mobile services?”
The overall satisfaction 15 of mobile services was rated between good and very good (rate 3.82). In general,
government establishments gave higher quality ratings than L&VL and SMEs.
15
Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
83%61%
11% 0% 3%
81%57%
5% 14% 5%40% 0% 0% 0%60%
Quality of service Current rates and packages Switching costs are high Switching to another provider is complicated
and time consuming
Other reasons (Specify Below)
Reasons that keep the establishment with its current mobile operator
SME L&VL Gov.
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Figure 92: Establishments Rating the Quality of Mobile Services
3.3.5 Rating Mobiles Services prices (Consolidated)
“How do you rate the prices of service provider Mobile services?” (Consolidated figures)
Across all establishment types prices for the different services where mainly rated as moderate to expensive.
Figure 93: Service Provider Services Rating
3.7 3.7 3.73.4
3.73.5 3.6 3.5 3.5
3.9 3.83.6
4.03.7
3.9 3.73.4 3.4
3.8
4.7 4.7
2.3
3.5
4.04.2
4.5
3.2
1
2
3
4
5
Overall Satisfaction
Voice Quality of local calls
Voice Quality of
international calls
Quality of roaming service
Coverage in your area and
signal strength
Push email services
Quality of 3G services
Easiness of Mobile
Number Portability
Customer Care
Establishments Rating Quality of Mobile Services By Type of Establishment
SME
L&VL
Gov
3.0
3.83.5 3.5
3.0 3.1 3.0 3.2 3.13.1
3.7 3.84.2
3.1 3.2
3.84.1
3.8
2.8 2.9
3.43.2
2.83.1
3.3
5.0
1
2
3
4
5
Mobile Calls to the Same Network
Mobile Calls to International Destinations
SMS Internet Service Value added services (e.g. ring tones and
flash news)
SME L&VL Gov.
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3.3.6 Usage, Quality & Prices of PMR, GMPCS and GPS Services
“Does the establishment have a Private Mobile Radio (PMR) network?” (Consolidated
figures)
On average 4.8% across all establishment types have PMR network.
“How do you rate the quality of the following mobile telecom services?”
On average quality was rated as good to very good across the PMR, GMPCS and GPS services.
“How do you rate the prices of the following mobile telecom services?”
The surveys investigated the establishments‟ usage of Private Mobile Radio (PMR), Global Mobile Personal
Communications by Satellite (GMPCS) and Global Positioning Service (GPS). Surveys indicated that PMR,
GMPCS & GPS services have a low penetration at establishments with government establishments being the
main users. In general, Establishments considered PMR, GMPCS and GPS services‟ quality as good to very
good and rated the GPS services and GMPCS services as moderate to expensive.
Figure 94: Investigating penetration, quality16 and prices of PMR, GMPCS and GPS Services Used by Establishments
16
Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
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3.3.7 Establishments’ Annual Expenditure on Fixed & Mobile Services
“How much did the establishment spend over all mobile telecom services over the past 12
months?” (i.e. GSM/3G, Private Mobile Radio, GMPCS and GPS)
The below figure represents the distribution of SME, V&L and Gov establishments expenditure for mobile
telecom services across various spending ranges per year.
Figure 95: Establishments‟ Annual Expenditure Mobile Telecom Services
67.8%
0.0%
2.7%6.2%
3.0%0.0% 0.0%
20.4%
51.3%
0.0%
2.6%2.6%
22.4%
7.9% 7.9% 5.3%
47.5%
0.0%0.0%
2.5%5.0% 7.5% 5.0%
32.5%
Nothing Less than 500 SAR
500-4000 SAR 4,001-10,000 SAR
10,001-100000 SAR
100,001-500,000 SAR
More than 500,000 SAR
Not Answered
SME% L&VL% Gov%
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3.4 Wireless Technologies Usage
“Please specify all wireless technologies used by the establishment”(Multiple Choice)
Figure 96: Wireless Technologies Usage distribution per Establishment type
3.5 Fixed Telephone Services
3.5.1 Number of Fixed Lines Used Per Establishment Segment
“How many fixed lines does your Establishment have? (For HQ & all local branches)”
The average number of fixed lines used by SMEs, L&VL, and governmental establishments are 5.2 lines, 52.1
lines and 127 lines per establishment respectively.
10.9%
12.7%
3.8%
0.3%
0.0%
0.0%
0.0%
0.0%
75.4%
28.9%
13.2%
10.5%
5.3%
2.6%
6.6%
0.0%
19.7%
46.1%
55.0%
32.5%
37.5%
35.0%
10.0%
25.0%
17.5%
85.0%
5.0%
Mobile (GSM)
Mobile (3G/HSDPA)
WiMAX
Private Mobile Radio (PMR) network
Global Mobile Personal Communications by Satellite (GMPCS)
Global Positioning System (GPS)
Pager
Wi-Fi
None
Gov % L&VL% SME %
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Figure 97: Number of Fixed Lines Used Per Establishment Segment
3.5.2 Rating Quality and Prices of Fixed Line Services
“How do you rate the Quality of Fixed Telephony services provided to the Establishment?”
All establishments rated the fixed services‟ quality just below very good (rate of 3.94), and rated the prices
close to moderate (rate of 3.28)
Figure 98: Establishments Rating Quality of Fixed Services
“How do you rate the prices of the fixed line services provided to the Establishment?”
International calls were rated more expensive compared to other call types and services. ). In general,
government establishments gave a higher price rating than L&VL establishments and SMEs.
4.24 4.203.89
4.08 4.073.914.00 4.04 3.91
4.12
3.703.553.56
4.00
3.38 3.40
2.55 2.58
1
2
3
4
5
Overall satisfaction Voice quality for local calls
Voice quality for international calls
Easiness to obtain new or second line
Proper Technical Support
Customer Care
SMEs
L&VL
Gov
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Figure 99: Establishments Rating Fixed Services‟ Prices
“How much did the establishment spend over fixed telephone line services over the past 12 months?” The below figure represents the distribution of SME, V&L and Gov establishments expenditure for fixed lines
services across various spending ranges per year.
Figure 100: Establishments annual expenditure for Fixed Services
2.812.98
3.813.44
3.192.86
3.04
4.33
3.763.45
3.093.49
4.03 4.12
3.38
1
2
3
4
5
Local calls National calls International calls Fixed line calls to other networks
Value added services (e.g. caller
line identity)
SMEs
L&VL
Gov
3.0%0.0%
35.5%39.6%
18.9%
0.0% 0.0%3.0%
6.6%
0.0%
13.2%
23.7%
39.5%
6.6% 6.6%3.9%
25.0%
0.0%2.5%
0.0%
7.5%10.0% 10.0%
45.0%
Nothing Less than 500 SAR 500-4000 SAR 4,001-10,000 SAR 10,001-100000 SAR
100,001-500,000 SAR
More than 500,000 SAR
Not Answered
SME% L&VL% Gov%
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3.5.3 PBX Usage and Type of Used PBX
“Does the establishment have a Private Branch Exchange (PBX)?”
“What is the type of your establishment‟s Private Branch Exchange?”
28% of establishments reported using a PBX, with only 2.4% indicated using IP PBX. SMEs mainly use
Analogue PBX, L&VL establishments use analogue & Digital PBX similarly, while Governmental
establishments mainly depend upon Advanced Digital & IP PBX systems.
Why does your organization use the IP PBX?” Key reasons for using IP PBX include, to:
Connect establishments internal phones
Connect the telephones for local branches together using the internet
Connect the telephones of local and international branches of the establishment using the internet
Make international calls using the internet
Figure 101: PBX Usage and Type of Used PBX
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3.5.4 Establishments’ Call Center Experience
”Does the establishment have a call center to manage calls from customers and clients?”
Only 3.6% of SMEs, 27.6% of L&VL and 57.5% of Government establishments indicated having a call center.
For those having a call center, only 50% of SMEs, 71.4% of L&VL and 91.3% of Government establishments
were aware that call center services can be outsourced.
“Are you aware that you can outsource your call center?” Government establishments demonstrated the greatest awareness of Call Centre Outsourcing. “Who is the provider of the call center service?” Call centers are predominantly managed internally by the government and private sector establishments.
Figure 102: Call Center Penetration, Awareness and Management
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3.6 Computers, Servers and Software
3.6.1 Establishments’ Computer Penetration & Types of Servers Used
“Does the establishment use computers?”
Computer penetration for business establishments reached 74% for SMEs, and 100% for L&VL Government
establishments.
Figure 103: Establishments' Computer Penetration
The response from establishments to “Please indicate the type of dedicated servers that the
establishment has” resulted with 16% of establishments not having any servers.
Figure 104: Deployment of Server Types by Establishments
File & DNS servers are the most widely used types followed by Mail, Web and Special application servers.
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3.6.2 Types of Software Used
“What are the languages used for your software?”
KSA establishments demonstrate significant adoption levels of standard office applications and software
(Office Solutions, Security & Accountancy). Sales & CRM solutions have reasonable penetrations within KSA
establishments.
Figure 105: Language of software used by Establishments
Figure 106: Establishments Usage of Various Software types
Figure 107: Software Utilization by Type of Establishments
14% 15%
37%
11% 7% 11% 14% 12% 9% 13%18% 16% 14%
30% 27% 27% 22% 24% 22% 25%
68% 69%
49%59%
66% 61% 64% 64% 69%63%
Operating Systems (e.g.
Windows)
Office Solutions (e.g.
Windows Office)
Security, Firewall & Spyware Software
Accountancy & Financial Solutions
Customer Relationship
Management Software
Sales Management
Software
Specialized Management
Solutions
Human Resource
Management
Enterprise Resource Planning
Solution (ERP)
Industrial Control
Solutions
All Establishments
English only Arabic only both
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3.7 Establishment Networks
3.7.1 Utilization of LAN and WAN Technologies
“How many of your establishments‟ branches have Local Area Networks (LAN)?”
The establishment survey indicated that SME and L&VL show low levels of LAN utilization (17% and 57%
respectively) when compared with Government establishments of 82%.
Figure 108: Percentage of Establishments with LAN
Leased Lines & IPVPN Technologies were found to be the most eminent technologies connecting branches.
Figure 109: Connection Technology Used Across Establishments' Branches
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3.7.2 VPN Services and Remote Access
“What are the technologies used to connect the branches?” (Multiple Choice)
While Most SMEs and L&VL establishments utilized their own technicians to establish their VPN connections,
governmental establishments mainly relied upon leasing the service from a service provider.
Figure 110: % of VPN Connections leased from a Service provider to all VPN Connections
“Who establishes and provides the VPN connections for the establishment?” (Multiple
Choice)
Majority of establishments either do not use and or do not know about VPN technology.
Figure 111: Party establishing and providing VPN Connections to the Establishment
0.0% 0.0% 0.0% 0.0% 0.0% 2.7%
12.1%
3.9% 1.3% 3.9%9.2%
13.2%
30.3%
15.8%
0.0%
7.5%12.5% 15.0% 12.5%
45.0% 47.5%
X.25 ATM IP VPN using satellite IP VPN over MPLS Frame Relay IP VPN Leased Lines (Point to Point)
Connection Technology used Across Establishments’ Branches
SMEs L&VL Gov
4.7%1.5%
68.9%
23.7%
0.9%
32.9%
11.8%
35.5%
15.8%
3.9%
15.0%
42.5%
30.0%
7.5% 5.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Was established through our own
technicians
The service is leased from a Service Provider
We do not use this technology
I do not know Not Answered
SME %
L&VL %
Gov %
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“Does the establishment‟s network provide remote access to its employees and clients?”
Remote access to employees and clients by governmental and L&VL establishments is significantly higher
when compared with SMEs. With the low levels of mobile + internet allowances and similarly little provision
of remote access facilities fewer incentives exist for employees to work remotely.
Figure 112: % of Establishments Providing Remote Access to Employees & Clients
3.7.3 Establishments providing Wi-Fi service for the public
“Does the establishment provide Wi-Fi service for the public?” (Multiple Choice)
On average 83% of establishments are not providing some form of Wi-Fi access to the employees and clients.
Figure 113: Status of Wifi to public from establishment
1.3%4.3%
1.6%
88.8%
3.9%4.3% 7.1% 0.0%
88.6%
0.0%
67.5%
2.5% 0.0%
27.5%
2.5%8%
5%1%
83%
3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Provide Wi-Fi Service for free with security
encryption
Yes, for free without security encryption
Provide Wi-Fi Service but the service is charged (not
free)
Do Not Provide Wi-Fi Service
Do Not Currently Provide Wi-Fi Service but are
planning to install a Wi-Fi network soon
% o
f Es
tab
lish
me
nts
Establishment provide Wi-Fi service for the public
CITC - ICT Market Study (2009-2010)
85
3.8 Internet and e-Services
3.8.1 Internet & Broadband Penetration
“Is Internet used at your establishment?”
60.4% of SME are not using internet, whereas 90.8% L&VL and 92.5% governmental establishments are using
the internet..
Figure 114: Establishments Internet Usage
Does the establishment have a broadband Internet subscription (any internet speed above
256 Kbps)?
Figure 115: Status of Establishments Broadband Internet Subscription
39%
60%
1%
SME
Yes No Did not respond
91%
9%
L&VL
Yes No
92%
8%
Gov
Yes No
97.7%
98.6%
100.0%
96%
97%
98%
99%
100%
SME L&VL Gov
Bro
adb
and
Pe
ne
trat
ion
(%
)
CITC - ICT Market Study (2009-2010)
86
“
3.8.2 Reasons for not having internet broadband
“If the establishment does not have a broadband Internet subscription, what are the
reasons?”
For those establishments who do not have internet broadband, the survey investigated the reasons for not
having the service. 33.3% of SME believe the establishment/operations does not depend on the internet and
hence the reason for no usage.
Figure 116: Establishment reasons for not having internet
0% 0%
33%
67%
0% 0% 0% 0%0% 0%
33%
67%
0% 0% 0% 0%0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
We are not familiar with the uses and benefits of
Internet
We are not familiar with the uses and benefits of broadband
Internet
Our work/operation
does not depend on the
Internet
Dial up connection is good enough for our work
I applied to an Internet service
provider but there is no
Internet coverage in my
area
Internet subscription is too expensive
Internet will be abused by our
employees leading to
distractions
Other reasons (Specify below)
SME %
L & VL %
CITC - ICT Market Study (2009-2010)
87
3.8.3 Public and Private Establishments first contact with the Internet
“When did your establishment first subscribe to broadband Internet?” Government establishments in general have been subscribed to broadband internet for longer period than private sector. In the last few years SME establishments have actively started adopting broadband internet.
Figure 117: Establishment reasons for not having internet
7.8%
46.9%
28.9%
12.5%
3.9%0.8% 0.8%
8.5%
15.3%
35.6%
22.0%
18.6%
5.1%
10.2%
0.0%
15.2%18.2%
30.3%
36.4%
0.0%
12.1%
7%
34%
29%
18%
13%
2% 5%0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Less than 1 year ago 1 to 2 years ago 3 to 4 years ago 5 to 7 years ago 8 years or more I do not know Not Answered
SME L&VL Gov. All Establishments
CITC - ICT Market Study (2009-2010)
88
3.8.4 Establishments’ average current & planned Internet speeds
While the average internet speed of SMEs is 650 Kbps, L&VL establishments‟ internet speed is estimated at
1.76 Mbps, and the Governmental establishments‟ internet speed is estimated at 7.54 Mbps. For the coming 12
months period, on average upgrades to establishment internet speeds is expected for establishments as
follows, SMEs to reach 1.6 Mbps with year-on-year (YoY) growth of 149%, L&VL to reach 2.94 Mbps with YoY
growth of 67% and Government to reach 12.41 Mbps with YoY growth of 65%.
“What is the maximum broadband Internet speed used by the establishment?” and “What are the establishments plans to increase its Internet speed over the coming 12 months?” (Mbps) Establishments are planning to increase current maximum internet speed between by more than 85% in the coming 12 months.
Figure 118: Maximum used and planned broadband speeds by establishments
0.65
1.76
7.54
1.61
2.94
12.41
- 5.00 10.00 15.00 20.00 25.00
SME
L&VL
Gov
Maximum Speed Used (Mbps) Planned Speed (Mbps)
CITC - ICT Market Study (2009-2010)
89
3.8.5 Internet and e-Services
“What is the percentage of employees who have allowances to use Internet access outside the establishment? E.g. at home” (This question includes fixed Internet, push email service and any other internet-over-mobile services)
On average across both public and private sector establishment 85% employees do not receive an internet allowance from their employers.
Figure 119: Employees Receiving Internet Allowances from their Establishments
0.0%
1.6%
7.0%
3.9%
4.7%
82.9%
0.0%
0.0%
7.6%
3.0%
4.5%
84.8%
0.0%
0.0%
0.0%
0.0%
5.4%
94.6%
0%
1%
6%
3%
5%
85%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All employees (100%)
75 to 99%
50 to 74%
25 to 49%
Less than 25%
Establishment does not provide Internet Allowance
Percent receiving alloance
Emp
loye
e B
reak
do
wn
All Establishments
Gov.
L&VL
SME
CITC - ICT Market Study (2009-2010)
90
“What are the technologies used by the establishment for the broadband Internet?” (Multiple Choice)
Figure 120: Technologies used for broadband internet by Establishments
3.8.6 Rating Internet Services’ Prices
“How do you rate the price of the broadband services provided to the establishment?”
While SMEs and L&VL establishments rated17 the offered internet services as „moderate to expensive‟, the
Governmental establishments rated them as „expensive to very expensive‟.
Figure 121: Establishments Rating of Internet Services‟ Prices
17
Very Cheap, Cheap, Moderate, Expensive, Very Expensive is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
98%
0% 1% 3% 1% 3%0% 1%
94%
15% 3% 16% 4% 1% 3% 1%
65% 65%
30%
19%
5%
16%
5% 3%
92%
14% 6% 9% 3% 5% 2% 1%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
DSL leased lines Fiber optics WiMax WiMAX dedicated 3G Internet from a mobile service
provider
Internet via Satellite (DVB)
Internet via Satellite
Dedicated (SCPC)
SME L&VL Gov. All Establishments
3.54
3.07 3.16
4.38
1
2
3
4
5
Average SME L&VL Gov
Rat
e (
Scal
e 1
-5)
CITC - ICT Market Study (2009-2010)
91
3.8.7 Rating Internet Services’ Quality
“How do you rate the quality of Internet services provided for the establishment?”
Quality rating varied across the establishments with overall quality rating18 of 3.64 (Good to Very Good).
While SMEs and L&VL establishments considered the quality as „Very Good‟, governmental establishments
indicated only a „Fair to Good‟ quality levels.
Figure 122: Establishments Rating Quality of Internet Services
18
Poor, Fair, Good, Very Good, Excellent is represented from 1 to 5 respectively. ‘I don’t know’ response was available option.
3.9
3.7
3.6
3.7
3.7
3.6
3.5
3.5
3.6
3.4
3.3
3.5
3.8
3.3
3.3
3.5
2.8
2.9
3.1
3.2
2.8
2.8
2.7
2.6
3.64
3.46
3.45
3.55
3.58
3.39
3.31
3.44
1.0 2.0 3.0 4.0 5
Overall satisfaction
Connection speed
Service availability (for all times)
Coverage in your area and signal strength
Easiness to obtain new or second line
Proper technical support
Customer care
Voice calls over Internet
Est. Rating Quality of Internet Service
Average Gov L&VL SME
CITC - ICT Market Study (2009-2010)
92
3.8.8 Establishments Annual Expenditure on Broadband Internet Services
“How much does the establishment spend YEARLY for broadband Internet?”
The below figure represents the distribution of SME, V&L and Gov establishments expenditure for Broadband
Internet services across various spending ranges per year.
Figure 123: Establishments Annual Expenditure for Broadband Internet Services
0.00%
3.76%
48.12%
31.58%
12.03%
0.00% 0.00% 0.00%
4.51%
0.00%1.45%
30.43%
15.94%
23.19%
5.80%
1.45%0.00%
21.74%
0.00% 0.00%
8.11%
0.00%
13.51%
29.73%
8.11%10.81%
27.50%
Nothing Less than 1000 SAR
1001 -4000 SAR 4,001-10,000 SAR 10,001-100,000 SAR
100,000-1 Million 1 to 5 million More than 5 Million SAR
Not Answered
SME% L&VL% Gov%
CITC - ICT Market Study (2009-2010)
93
3.9 SME, L&VL and Government Websites
3.9.1 Presence of Websites
“Does the establishment have a website?” (yes, no, no but planning to have one soon)
14% of SMEs, 70% of L&VL and 88% of governmental establishments have a website.
Percentages for establishments not having a website but planning to do so are as follows x% for SME, y% for
L&VL and z% for Government establishments.
Figure 124: Percentage of Establishments Owning a Website
3.9.2 Establishments reasons for not owning website
“What are the reasons for not having a website?” (Multiple Choice)
Examining the figures below may suggest that limited understanding of benefits that internet can bring to
public and private sector organizations and respective clients/consumers exist.
Figure 125: Reasons for not owning a website (Multiple Choice)
57%
14%
70%
88%
0%
20%
40%
60%
80%
100%
Average SME L&VL Gov
% o
f Es
tab
lish
me
nts
% of Establishments owning a Website
2.4%
14.6%
78.0%
14.6%11.0%
7% 5%
49%
32%
4%
Do not use the Internet Do not have the experience to develop our website
The website is not important to our establishment
We do not know how a website would benefit our
establishment
The website is expensive to develop and we don’t have an
allocated budget for it
Reasons for Establishments not having a Website (SME and average across All establishment types)
SME Average across all establishments
CITC - ICT Market Study (2009-2010)
94
“What are the available languages of your establishment‟s websites?”
Arabic followed by English are the dominant languages of establishments‟ websites.
Figure 126: Languages Used for Establishments' Websites (Multiple Choice)
3.9.3 Establishments Websites Hosting Location
“Where is your website hosted?” (One choice)
48% of establishments hosted their website at local ISP servers.
Figure 127: Establishments‟ Websites Hosting Location
94%
71%
92%83%
6% 4%
100%83%
Arabic English French Urdu
Languages Used for Establishments' Websites
SME L&VL Gov
31%
56%
13%
31%
56%
13%
46%
33%
21%
36%
48%
15%
At the establishment’s web server At the ISP’s servers At an International web-hosting organization
Website Hosting location for Establishments
SME L&VL Gov Average
CITC - ICT Market Study (2009-2010)
95
3.9.4 Usage of Local & Generic Domains for Websites
“Please indicate your websites various domains” (Respondent could choose more than one if
establishment have more than one website or domain)
While governmental establishments used only local domains, L&VL and SMEs evenly used local and generic
domains for their websites. „.com.sa‟ and „.com‟ constitute almost half of the L&VL and SMEs websites‟
domains.
Figure 128: Establishments Websites various Domains
3.9.5 Establishments reasons for not owning website
“If your establishment does not own a local website domain (.sa), what are the reasons for
that?” (Multiple Choice)
For this multiple choice question “Local domain names are difficult to register” is the key reason for SME
establishment not owning a local website domain. For L&VL establishments it is spread across all reasons for
not owning a local website domain.
CITC - ICT Market Study (2009-2010)
96
Figure 129: Establishments Websites various Domains
“What does the establishment provide through its website?” (Multiple Choice)
According to the findings Government establishments are the most active in providing variety of services
through their websites.
21%
50%
0% 0% 7% 21%40%
60%
20%
60% 60%
80%
31%
55%
10%
30% 34%
51%
Local domains are expensive
Local domains are difficult to register
I don’t know how or where to register
We have regional and international presence and generic domains
would such suit more our business
We are an international organization and as such
we follow the general guidelines of the mother
organization
No specific reason
SME L&VL Private Sector (Average)
CITC - ICT Market Study (2009-2010)
97
Figure 130: Services provided through establishments website
8%
4%
6%
10%
14%
20%
25%
2%
18%
12%
10%
25%
55%
6%
29%
2%
13%
6%
9%
15%
32%
15%
0%
19%
32%
9%
30%
81%
21%
30%
0%
3%
9%
9%
14%
14%
17%
26%
43%
49%
57%
57%
71%
74%
77%
None of the above
Online payment
Online support through chat
Paid advertisements for other websites or organizations
Blogs
Customer support and after sale services
Free advertisements for other websites or organizations
Video conferencing links to scheduled events
Membership registration, members area, community features
Online ordering
Web-based Applications services
Newsletters
Information about services (products or services catalogue)
Remote access to employees e-mails
News/events calendar about establishment’s services
GOV
L&VL
SME
CITC - ICT Market Study (2009-2010)
98
3.9.6 Advertising Methods Used by Establishments
“How does the establishment advertise their products or services?” (Multiple Choice)
Around 15% of establishments indicated that they do not advertise. Those that advertise, mainly advertise
through traditional methods. Non-traditional ICT related advertising methods are not yet well utilized by KSA
establishments.
Figure 131: Advertising Methods Used by Establishments
3.10 e-Banking
3.10.1 ICT Payment Methods Used by Establishments
“Does the establishment use any of the listed payment methods?” (Multiple Choice)
ICT based payment methods such as Online, ATM and IVR are not well utilized by KSA establishments,
though around 22% of establishments indicated using ATM on average. Large & Very Large establishments
are most inclined to use ICT services for payments compared with SMEs and government establishments.
CITC - ICT Market Study (2009-2010)
99
Figure 132: ICT Payment Methods Used by Establishments Per Segment
3.10.2 Establishments use of internet payment methods
“Which of the below Internet payment methods does the establishment use? (Multiple choice)
Based on the below figure there remains significant opportunities for efficiency in payment methods through the Internet. More than 50% of SME do not pay over the Internet. At 33% L&VL establishments are the most active with using Internet Banking for payments.
Figure 133: Internet Payment Methods used by Establishments
2%16%
1%
81%
34%42%
11%
37%23% 18%
5%
73%
Online payment payment through bank ATM Payment through phone IVR (Interactive Voice Recordings)
We do not use any method mentioned above
ICT Payment Methods Used by Establishments Per Segment
SME L&VL GOV
53%
36%
7%
16%
20% 20% 20%
33%
4%
13%
2%
13%
25%23%
10%
21%
We do not pay over internet Through credit card Through special Internet payment cards
Payment through Internet banking
SME L&VL Gov Average
CITC - ICT Market Study (2009-2010)
100
“Does the establishment provide e-payment facilities for its clients over the Internet or
through Internet banking?”
Only 11% of all establishments provide or 89% do not provide for e-payment facilities to their clients. L&VL
establishments are the most active in providing their clients/customers with such facilities.
Figure 134: Establishment providing e-Payment facilities
3.3%
15.8%
12.5%
11%
Not Providing, 96.7%
Not Providing, 84.2%
Not Providing, 87.5%
Not providing, 89%
SME
L&VL
Gov
Average
Establishments Providing E-payment Facilities to their Clients
CITC - ICT Market Study (2009-2010)
101
“Why doesn‟t your establishment provide e-payment facilities for its clients over the
Internet?” (Multiple Choice)
As highlighted in the previous figure on average 89% of establishments dot not provide e-payment facilities
for its clients over the Internet or through Internet banking, because 37% believe there is no need for such
payment mechanism as the establishment is satisfied with their current manner of payments.
Figure 135: Reasons for Establishments not offering E-Payment Facilities for its Clients
“What are the various products or services that your establishment offers for sales through online payments over its website?”(Multiple Choice) The below percentages represent the percentage breakdown for products and service establishments offer online payment facilities for their clients. Although respective sample size (illustrative) it is important to note the types of services you should consider or other establishments are considering to offer through their websites. Online payment facility for services or bills such as sales of general merchandize, sales of information. advertisements and membership fees ranked highest in terms of online payments offered over establishment websites.
Figure 136: Products and Service available for online payments
2% 3%8%
18% 16%
5% 3%13%
34%
48%
3% 3% 6%0%
46%
3% 3% 9% 17%
37%
Establishment is not aware of e-payments services
Establishment is aware of e-payments but does not know
how to make use of them
Our clients do not trust such service
We do not trust payments over the Internet for security
reasons
There is no need for such payment mechanisms as the
establishment is satisfied with their current manner of
payments
SME L&VL Gov Average
0%
0%
0%
0%
1%
1%
0%
0%
2%
0%
3%
0%
2%
0%
11%
5%
6%
6%
6%
3%
3%
0%
0%
0%
0%
0%
3%
0%
6%
0%
2%
0%
1%
0%
4%
2%
3%
2%
5%
1%
Sales of information (Catalogues, research papers, etc.)
Sales of content (Multimedia, news, etc.)
Sales of software
Sales of IT hardware & electronics
Sales of General Merchandize
Web-based shared application services
Membership
Advertisement
Online Payment facility for Services or bills
Other
Average Gov L&VL SME
CITC - ICT Market Study (2009-2010)
102
“How much is your estimate of ANNUAL revenue generated by services the establishment offers online?” For the small percentage of establishments offering online payment facilities to clients, the below figure shows percentage of revenues from online is the greatest for L&VL establishments across the three consolidated revenue ranges.
Figure 137: Annual Revenue for service offered online
64%
18%
0%
18%
67%
58% 58%
8%
20% 20% 20%
80%
upto 1 million SAR between 1 million and 100 Million SAR
More than 100 million SAR Not Answered
SME L&VL Gov
CITC - ICT Market Study (2009-2010)
103
3.10.3 Establishments’ Usage of Online Banking
“Does the establishment use your bank‟s online banking services?”
On average 67% of establishments do not use online banking service. At 8% SME establishments are the least
active with using online banking services.
Figure 138: % of Establishments that Use Online Banking
“What does the establishment use online banking for?” (Multiple Choice)
For 33% establishments who use online banking, 89% of usage is for account and balance inquiries, while 51%
of them transfer money between local bank accounts and 45% for paying and managing bills.
Figure 139: Online Banking Services used by Establishments
92%
47%
63%
67%
8%
53%
38%
33%
SME
L&VL
Gov
Average
Does NOT use online banking services Uses online banking services
89%
37% 32%45% 51%
30% 8% 7%
Account and balance inquires
Applying for other banking
services
Managing bank account
(changing PIN, etc)
Paying and managing bills
Transferring money between
local bank accounts
Transferring money between
local & International
bank accounts
To buy and sell stocks
Other
Average across establishments
CITC - ICT Market Study (2009-2010)
104
3.11 ICT Expenditure
3.11.1 Establishments' Annual ICT Expenditure For Investigated ICT Services & Products
“For the following Telecom & IT Services what is the Establishment average YEARLY
expenditure in SR?”
The figure below illustrates all establishments' annual ICT expenditure for investigated ICT services &
products.
0.89%
0.30%
2.07%
0.59%
23.67%
28.11%
21.89%
18.64%
3.25%
5.62%
3.85%
3.55%
0.30%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
71.89%
65.98%
72.19%
77.22%
SME% Data Services such as VPN, Managed Services, etc.
SME% Computer Equipment & Software
SME% Annual Licensing for Software
SME% Training for software and networking
SME Expenditure across various ICT Product and Services
Not Answered More than 20 Million 6 to 20 Million 1 to 6 Million
100,000 - 1 Million 10-001-100,000 1,000-10,000 Less than 1000
CITC - ICT Market Study (2009-2010)
105
Figure 140: Establishments' Annual ICT Expenditure for Investigated ICT Services & Products
1.32%
0.00%
1.32%
5.26%
23.68%
27.63%
23.68%
28.95%
21.05%
23.68%
23.68%
17.11%
6.58%
11.84%
6.58%
2.63%
1.32%
3.95%
1.32%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
46.05%
32.89%
43.42%
46.05%
L&VL% Data Services such as VPN, Managed Services, etc.
L&VL% Computer Equipment & Software
L&VL% Annual Licensing for Software
L&VL% Training for software and networking
L&VL Expenditure across various ICT Products and Services
Not Answered More than 20 Million 6 to 20 Million 1 to 6 Million
100,000 - 1 Million 10-001-100,000 1,000-10,000 Less than 1000
5.00%
0.00%
2.50%
5.00%
0.00%
2.50%
0.00%
0.00%
2.50%
2.50%
5.00%
12.50%
12.50%
12.50%
12.50%
15.00%
5.00%
12.50%
17.50%
7.50%
5.00%
10.00%
2.50%
0.00%
5.00%
12.50%
5.00%
0.00%
65.00%
47.50%
55.00%
60.00%
Gov% Data Services such as VPN, Managed Services, etc.
Gov% Computer Equipment & Software
Gov% Annual Licensing for Software
Gov% Training for software and networking
Gov. Expenditure across various ICT Products and Services
Not Answered More than 20 Million 6 to 20 Million 1 to 6 Million
100,000 - 1 Million 10-001-100,000 1,000-10,000 Less than 1000
CITC - ICT Market Study (2009-2010)
106
3.12 Bundled Services
3.12.1 Satisfaction levels, reasons and aspired service bundles
“What is the level of the establishment satisfaction with the bundled services offers?” (One choice) On average 18% of establishments do not know what bundled services and 28% are not subscribed to bundles services. For the 65% who are subscribed majority are satisfied establishment with the current bundled services.
Figure 141: Subscription Status and Satisfaction Level with Bundle Services
“If the establishment is not satisfied, what are the reasons?” (Multiple Choice) Upon investigation of previous figure it becomes apparent that a very small percentage of establishments were not satisfied with bundles services. However the key reasons for non satisfaction are:
Not good value for money Bad customer service understanding and support of bundles services Weak Technical Support Offers are difficult to understand
8% 10%
82%
3%
11%7%
0% 0% 0%
18%
25%
57%
7%
18%21%
0% 1% 0%
13%
48%
40%
8% 5% 5% 3%
10%
3%13%
28%
60%
6% 11% 11% 1% 4% 1%
I do not know what is bundled services offers
The establishment is
not subscribed to any bundled services offer
Subcribed to Bundled Service
Very satisfied Satisfied Neutral Unsatisfied Very unsatisfied Not Answered
SME L&VL Gov Average
CITC - ICT Market Study (2009-2010)
107
“What are the services that the establishment wishes to be bundled together?” (Multiple Choice)
Key services SME, L&VL and Government establishments wish to bundle are:
ALL Establishments – Fixed Telephony, Internet Services and Mobile Telephony. SME – Fixed Telephony, Internet Services, Mobile Telephony and Electricity L&VL- Fixed Telephony, Mobile Telephony, Internet Services and Electricity Government – Internet Service, Fixed Telephony and Mobile Telephony
Figure 142: Aspired services for bundling
19%
12%
16%
4%
13%
7%3%
13%
0%
39% 38%36%
11%
30%
21%
8%
30%
0%
33%
20%
35%
3%
20% 20%18%
28%
3%
30%
23%
29%
6%
21%
16%
10%
24%
1%
Fixed Telephony Mobile Telephony
Internet Services TV subscription Electricity Water All of the above None of the above
Others
SME L&VL Gov. Average
CITC - ICT Market Study (2009-2010)
108
3.13 Special Services
3.13.1 Penetration of Special Services at Establishments “Does the establishment use any of these services?” Respondents additionally asked about
usage for each service (Use the service, Don‟t Use the service, Don‟t know the service)
In general, special services have high usage levels in L&VL and Governmental establishments compared with
SMEs.
Figure 143: Usage of Special Services by Establishments
4%
19%
2% 3% 2% 0%4%
29%
45%
12%
28%
9%7%
17%23%
73%
28%33%
5% 5% 8%
19%
45%
14%
21%
5% 4%9%
Advanced free phone (800)
Direct Dialing Service Universal Access Number (9200)
Bulk SMS Mobile Virtual Private Network
(MVPN)
Push email Bill Split Service
Penetration of Special Services at Establishments
SME L&VL Gov Average
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3.14 Issues and Complaint Handling
3.14.1 Issues with Service Providers and Destination of Complaints
"Has your establishment ever faced any of the following with your service
providers?”(Multiple Choice)
17% of establishments envisaged the illustrated complaints against their service providers. Discrepancy
between contract/advertised quality terms and offered services, in addition to inefficiency of customer care
were the major complaints.
Figure 144: Issues with Service Providers
“To whom did you report your complaints?” (Multiple Choice)
Customer care is the most common destination to place a complaint against service providers. 23% of
establishments faced issues with their service providers but did not complain.
Figure 145: Destination of Establishment Complaints
94%
1%
1%
2%
3%
72%
3%
12%
20%
21%
13%
15%
60%
75%
70%
60%
6%
24%
32%
31%
None of the above
The prices were not according to the ad or contract of the service provider
The service provider did not claim responsibility for the reason of the complaint
The customer care did not answer your complaints efficiently
The service quality you got was not what you were promised in the ad or contract of the service provider
Average Gov L&VL SME
43%
5% 0% 5%
38%14% 5% 5%
38%
81%
11% 6% 11%
54%
80%
23% 5% 5% 32%66%
Complaint was not Reported
I complained to the Consumer Protection
society
I complained to the Communications &
Information Technology Commission (CITC)
I complained to the management of the
company
I complained to customer care
SME L&VL Gov Average
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3.14.2 How Complaints Against Service Providers were Handled
“How was your complaint handled?”
For complaints against service providers, “the customer support kept on referring us back to technical
support and vice versa without resolving the issue” and “We were promised to be called back soon on, but
never received a call” were the most eminent results for a complaint.
Figure 146: Status of Complaints by Establishments
0%
10%
5%
5%
0%
14%
0%
5%
10%
14%
48%
10%
29%
33%
10%
29%
48%
43%
3%
34%
14%
14%
20%
29%
26%
37%
46%
6%
30%
10%
16%
18%
17%
18%
30%
33%
It turned out to be a misunderstanding of the offering from our side
Our complaint was addressed and corrected
Other
I called the customer care but nobody answered the call
We were told to call back later on
No one addressed our complaint
We were told that problem is because of another service provider
We were promised to be called back soon on, but I never received a call
The customer support kept on referring us back to technical support and vice versa without resolving the issue
Average Gov L&VL SME
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3.15 Investment
“Do you have plans for more organizational growth or expansion that need further
investment expenditure?”
Across all establishment type more than 55% of L&VL and Government establishment have plans for
organizational growth or expansion requiring further investment.
Figure 147: Status of Organizational Growth/Expansion needing investment
“What are the financial sources of planned establishment growth or expansion?” (Multiple
Choice)
Majority of private sector establishments prefer self financing for planned growth or expansion activities.
Figure 148: Financial Sources for Planned Growth/Expansion
YES, 24%
YES, 57%YES, 61%
NO, 76%
NO, 43%NO, 39%
Not Answered, 2% Not Answered, 1%Not Answered, 5%
SME L&VL Gov.
1%
84%
23%
10%0% 0% 0%0%
77%
19% 16%
0% 5% 0%
Governmental Finance
Fully self financed Look for partnership with
other organizations or investors
Look for partnership with banks and other
investors
The establishment will sponsor 70% and the rest from
others
The establishment willsponsor 50%
and the rest from others
The establishment willsponsor 40%
and the rest from others
SME L&VL
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“In your opinion, how easy it is to find investors or bank loans to finance your planned
growth or expansion?”
Figure 149: Easiness of Finding Investors or Bank Loans for Planned Growth
3.16 Research and Development Expenditure
3.16.1 Spending on Research and Development (R&D)
“Does your establishment have a dedicated budget for Research & Development (R&D)?”
36% of establishments claimed that they have an R&D dedicated budget. Status of private establishments
R&D expenditure in KSA is compared to government establishment and establishments from other economies
is low. 82% of SME, 64% of L&VL and 38% of Governmental establishments do not have a dedicated budget
for Research and Development..
2%
28%
46%
12%10%
1%5%
37%
30%
21%
2% 5%4%
33%38%
17%6% 3%
Very easy Easy Neutral/depending on nature of projects
Difficult Very Difficult Not Answered
SME L&VL Private Sector Average
15%
82%
2%
34%
64%
1%
58%
38%
5%
36%
61%
3%
Yes No Not Answered
SME L&VL Gov. Average
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Figure 150: Establishments having a dedicated R&D Budget
“Q119. What best describes your R&D activities?” (Multiple Choice)
Generally speaking R&D activities are low across all establishments, with only 1% of establishments allocating
more than 6% of total revenue to R&D. R&D activities across SME establishments is almost non existent when
compared with L&VL and Government establishments.
Figure 151: R&D Status per Establishment Segments
53%
29%
13%
31%33%29%
20%
27%
17% 18%
23%19%
4%
8%10%
7%9%
17%
8%11%
1%
9%
20%
10%
2%
21% 20%
14%
0%
14%
10%8%
0%3% 3% 2%
0%3%
5%3%
0% 0% 0% 0%0% 0%3%
1%
0%
10%
20%
30%
40%
50%
60%
SME L&VL Gov. Average
Do not need R&D
Do not have R&D
R&D could improve our establishment but we do not have enough budget for it.
Planning to have R&D in one-two years time
Have R&D activities but they are not that efficient
Have R&D activities but it has limited budget
Have good R&D activities
R&D is an important function of our establishment that has considerable allocation
On yearly basis establishment allocate up to 1% of total revenue to R&D
On yearly basis establishment allocate 1-3% of total revenue to R&D
On yearly basis establishment allocate 4-6% of total revenue to R&D
On yearly basis establishment allocate more than 6% of total revenue to R&D
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“How many ICT related employee training courses did your establishment conduct or
participated within the past 12 months?”(One Choice)
Overall Government sector establishments are the most active in providing ICT training to their
employees. However on average 57% of establishment provide no training what so ever.
Figure 152: ICT related training participation Establishments employees
“How do you generally describe your ICT Training Policies” (Multiple Choice)
Upon investigation of the various ICT Training Policies use by establishment on average
53% “Train only new employees on the usage of the various software and hardware in the establishment and
only 22% usually recruit experienced personnel and do not train them. Government establishments are mostly
active across all ICT Training Policies.
Figure 153: Description of ICT Training Policies
93%
4% 1% 0% 0% 1%
67%
7%
18%
4% 3% 1%10%
3%
28%
10%
40%
10%
57%
4%
16%
5%
14%
4%
None 1 course 2 - 5 courses 6 - 10 courses More than 10 courses Not Answered
SME L&VL Gov. Average
9%
32%25% 22%26%
60%
39% 42%48%
40%
72%
53%
17% 28%
47%
31%9%
40%
69%
39%
SME L&VL Gov. Averages across Establishment
Usually recruit experienced personnel and do not provide training
Train only new employees on the usage of the various software and hardware in the establishment
Encourage and sponsor our staff to gain training through specialized training courses
Training is part of the establishment philosophy and each department has to submit yearly budgets and plans for its ICT–related training needs
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3.17 Research Collaboration with Universities
“Does your establishment engage in research collaborations with universities and other
academic institutions?”
At 53% Government establishments are the most active in research collaborations with academia. SME and
L&VL establishments have very little research collaborations with academia.
Figure 154: Status of research collaboration with Academia
“Q121. What sort of collaboration does your establishment have with universities or
academic institutions?” (Multiple Choice)
For the establishments that do have research collaborations with universities and academic institutions on
average the main form of collaboration is in the form of providing work experience programs for
undergraduate students (internships). Once again Government establishments are the most active across a
number of collaboration forms; especially with seeking consultancy services on various topics.
1%
94%
4% 0%9.2%
80.3%
10.5%0.0%
53%
38%
5% 5%21%
71%
7% 2%
Have Engagement Do not Have Engagement No, but establishment is considering sunch engagement
Not Answered
SME L&VL Gov. Average
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Figure 155: Types of Collaborations with Academia
3.18 ICT Promotion
3.18.1 ICT Promotion Initiatives Provided by Establishments
“What are the various initiatives that the establishment does to promote ICT?” (Multiple
Choice)
On average 47% of establishments have no initiatives for ICT. Sponsoring basic computer and internet
training for employees is the most common initiative for all establishments with Government establishments
the most active. Once again Government establishments are the most active across all initiatives to promote
ICT.
Figure 156: ICT Promotion Initiatives
100%
0% 0% 0% 0% 0%
57%43%
29% 29% 29%
0%
62%
29%
52% 48%
76%
5%
73%
24% 27% 25% 35% 2%
We provide a working experience program for
undergraduates graduation requirements
(internships)
We provide labs and facilities for student’s
research projects
We conduct combined seminars and workshops
on various issues
We have common projects for services and products developments
We seek consultancy from the university
academics and researchers on various
topics
Other
SME L&VL Gov. Average
84%
13%
3% 3% 1% 0% 1% 0%
43%49%
12% 12% 9% 8% 7%1%
13%
75%
20%25%
35%
13%
33%
13%
47% 46%
12% 13% 15% 7% 13% 5%
No initiatives for ICT
We Sponsor basic computer and
Internet training to our employees
We Provide payment facilities to our employees to buy computers
We Sponsor local community
programs to train people on
computers and Internet
We Provide scholarships for
highly specialized ICT courses
We Have a dedicated program
that caters to raising public
awareness about various ICT products
We Organize and sponsor seminars
and workshops that handle
various ICT topics
We have Dedicated awards programs for ICT
achievements
SME L&VL Gov Average
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4. Survey Findings - ICT Services and Technology Suppliers
ICT Services and Technology Suppliers are companies who are supplying the technologies and services to
Telecom Service Providers. Such technologies and systems include telecommunications infrastructure
hardware and software, solutions and services such as system integration, acceptance, maintenance, etc…
These national and international companies play a significant role in supplying end users (consumers) with
the latest computer devices (PC‟s, Laptops, PDA, Mobile Handsets, CPE, etc.) to benefit from the various
services offered by Telecommunication Service Providers. Locally such companies are classified as
“Technology Vendors/Supplier”, hence the use of Technology Vendor/Supplier is synonymous with ICT
Services and Technology Suppliers.
Figure 126, shows the key enabling role ICT services and technology suppliers play amongst various
stakeholders within the ICT Value Chain.
Figure 157: ICT Value Chain-ICT Technology & Services Suppliers
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4.1 ICT Services and Technology Supplier Profile & Activities
4.1.1 ICT Services And Technology Supplier Profiles
“Where is the Location of the Establishment‟s Headquarter?”
“How many branches does your business have including the headquarter(s)?”
“How many international branches and offices do you have outside the Kingdom of Saudi
Arabia? (Including the Headquarter)”
Of the 13 companies representing the sample of ICT Services and Technology Suppliers; 12 have
headquarters located in Riyadh. On average ICT services and technology suppliers have 5 or less
branches including headquarter. 92% have international presence and more than half of them have
international presence in more than 15 countries.
Figure 158: Location & No. Employees of ICT Technology & Services Suppliers
“How many Employees (including Headquarter and branches)?” (exact and ranged
response)
39% of interviewed ICT services and technology Suppliers have between 60-499 staff working in KSA, while
54% have more than 500 staff.
62% of technology provider establishments are 100% owned by foreigners, 23% are 100% owned by Saudi
Nationals while 16% are joint ventures between Saudi and Non-Saudi owners. The result concludes that 77%
of interviewed technology suppliers are mainly directly controlled or managed by international companies.
92%
8%
Location
Riyadh
Dammam/ Khobar 54%39%
7%
Number of Employees
20 - 59
60 - 499
500 +
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The interviewed ICT Services and Technology Suppliers have been present in KSA for 14 years on average
reflecting serious interest in the Saudi ICT Market
4.1.2 ICT Services and Technology Suppliers Lines of Activity
“What are the establishment‟s lines of activity?”
More than 62% of the interviewed ICT Services and Technology Suppliers provide „Software
integration/Business solutions‟, „Consultancy services‟, „Maintenance & asset management services‟ and
„Telecom core integration/solutions‟. 46% offers technical audits and 46% offer „Networking equipment retail‟
market is still reasonable
Figure 159: ICT Services and Technology Suppliers Line of Activity
“Which of the following general classifications best describes your company?”
For the available options a) ICT Technology Supplier (Products), b) ICT Services Supplier, c) ICT Solutions
Supplier (Both a) and b)) 85% of ICT Services and Technology Suppliers chose ICT Solutions Supplier.
“What are the technologies and or ICT services provided by your company for each of the following segments” (Technologies & ICT Services)”
15%
15%
23%
31%
38%
38%
38%
46%
46%
46%
62%
69%
78%
84%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Computer Equipment retail
Computer Equipment wholesale
Networking equipment retail
Telecom user equipment retail
Software development
Software retail
Telecom user equipment wholesale
Networking equipment wholesale
Telecom core equipment
Technical audits
Telecom core integration/ solutions
Maintenance & asset management …
Consultancy services
Software integration/ business …
% of Surveyed ICTST Suppliers
ICTST Suppliers Line of Activity
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4.1.3 Company Registration Procedure Efficiency
“How many years have you been in the market?”
“How much time did it take to register the company from the date of application to final
approval?”
“How do you rate the procedures to register the establishment?”
Inquiry about the procedures and time needed to register the technology provider company did not yield any
conclusive results as most of the technology suppliers interviewed are more than 5 years old and did not recall
details of such activities.
4.2 Awareness of CITC and its Role
“Do you know what the role of the CITC is?” (Multiple Choice)
Awareness levels of CITC and its different roles are high among ICT Services and Technology Suppliers.
However, 15% of the interviewed were not aware of CITC‟s role in regulating the IT market and 46% of ICT
Services and Technology Suppliers falsely believed that CITC‟s role includes regulating the broadcasting
market. Some CITC roles; such as „increasing market competition‟, „consumer protection‟ and „monitoring
quality provided services‟, are not well known by ICT Services and Technology Suppliers.
Figure 160: ITC Technology & Services Suppliers Awarness of CITC Role
0%
100%
85%
46%
69% 69% 69%
0%
25%
50%
75%
100%
I do not know exactly
To regulate the telecom market
To regulate the IT Market
To regulate the broadcasting
market
To increase ICT market
competition
To protect ICT services
consumer
To monitor the quality of
provided services
% o
f Te
chn
olo
y Su
pp
liers
ICTST Suppliers Awareness of CITC Role
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ICT Services and Technology Suppliers have low awareness about the business registration requirements.
Only 31% of respondents are aware of CITC‟s registration permits which deem any consequent rating to
permits efficiency as in-conclusive.
4.3 Marketing, Sales & Growth Activities
Figure 168 represents ICT Services and Technology Suppliers activities to promote their services to their BTC
customers. E-mails and company websites are the primary means of providing information and
communicating with their BTC customers.
4.3.1 ICT Services and Technology Suppliers products and services promotion activities
“(B2B)How does the establishment promote its products and services? For the following promotions means please rate the degree of utilization, 1=not utilized, 5=highly utilized “
“(B2C) How does the establishment promote its products and services? For the following
promotions means please rate the degree of utilization, 1=not utilized, 5=highly utilized)”
The Figure below represents ICT Services and Technology Suppliers promotion activities to their B2B
customers. Predominantly use of „Periodic technical/sales visits to customers‟ and „organizing local workshops
or specialized training courses and inviting potential customers to promote their services‟. Other promotion
means such as „Participation in local and regional specialized events‟ and „Organizing local events for service
and products launch‟ are moderately utilized.
Figure 161: Media Channels Utilization by ICT Services and Technology Suppliers to Promote Products & Services (BTC)
2.0
2.4
2.8
3.5
1.0
2.0
3.0
4.0
5.0
Newspapers, TV, etc. Specialized magazines Customer registrations through local websites
E-mails, websites
Uti
lizat
ion
exp
ress
ed
as
Scal
e (
1-5
)
Media Channels Utilization by ICTST Suppliers to Promote Products & Services
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Figure 162: Promotion Means used by ICT Technology and Services Suppliers
3.43.5
4.2
4.5
1.0
2.0
3.0
4.0
5.0
Participation in local and regional specialized events
Organizing local events for service and products launch
Organizing local workshops or specialized training courses
and invite potential customers
Periodic technical/sales visits to customers
Pro
mo
tio
n M
ean
Uti
lizat
ion
Sca
le 1
-5
Promotion Means Utilization ICTST Suppliers
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4.3.2 Market Penetration and Growth Strategies
“Using the scale of 1-5 where 1 is strongly disagree and 5 is strongly agree for each of the following market penetration and growth strategies, please tell me how much you agree with each strategy for KSA Market.”
ICT Services and Technology Suppliers consider several efficient market penetration strategies. „Providing
trade-in facilities to purchase old systems/products‟ has low utilization with only 39% of the interviewed
seeing value in such approach. “Efficient response to RFIs (Request for Information)‟ and „efficient
promotion‟ are the most widely utilized market penetration and growth strategies.
Figure 163: ICT Technology & Services Suppliers Utilization of Market Penetration Techniques
2.4
3.6 3.7 3.84.2 4.3
1.0
2.0
3.0
4.0
5.0
Providing trade-in facilities to purchase old
systems/products
Cross subsidizing initial system/solution cost by
expected scalability needs or long-term support contracts
Offering wide range of products and services to
suit all market entry levels
Providing pilot system/solution to
customers for testing purposes
Efficient promotion Efficient response to RFIs
Scal
e 1
-5
ICTST Suppliers Utilization of Market Penetration Techniques
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4.3.3 Marketing budgets
“Approximately, what is your marketing budget as a percentage of total revenue? (Last Year, This Year, Next Year)”
“What percentage of your marketing budget is assigned to educating your various customer segments about the benefits of your products and services?”
The average marketing budget as percentage of total revenue, for the interviewed ICT Services and
Technology Suppliers has remained stable in 2009. The marketing budget is expected to reach 3.2% in 2010.
On average only 26.9% of marketing budget is assigned for educating customers about the benefits of the
companies‟ products and services.
Figure 164: Marketing and Customer Education Budgets
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4.4 Consumer Needs and Demand Analysis
4.4.1 ICT products and services needs & demand analysis
“How do you assess the market need for the following services & products? 1=not needed, 5=highly needed” “How do you assess the market demand for the following services & products? 1=not demanded, 5=highly demanded”
According to the ICT Services and Technology Suppliers assessment of the KSA market, the expected growth
forecast is 20% as average growth for the all ICT services and products. Services and solutions segments have
the highest rank in terms of needs and demand (rated above 4), compared to the equipment and software
development and retail segments. Services and solutions segments are forecasted to grow by 23% on average,
while equipment, software development and retail segments is forecasted to grow by 18%. The highest
expected growth is given to Maintenance & asset management services‟ and „Telecom core integration/
solutions‟. ICT Services and Technology Suppliers estimated that „Software development‟ and „Technical
audits‟ would grow by 25% and 12% respectively. Except for „technical audit services‟ all investigated ICT
services were given high competition levels. Nevertheless, the services and solutions segments were given the
lowest average competition level (3.4) compared to the equipment and software development and retail
segments (4.26), while the overall competition level was rated at 3.85 over a scale of 5.
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Figure 165: Current Need & Demand Levels for ICT Products & Services (ICT Services and Technology Suppliers Assessment)
2.9
3.2
3.2
3.3
3.3
3.4
3.5
3.5
3.5
4.1
4.2
4.2
4.2
4.4
3.7
2.9
3.4
3.5
3.7
3.5
3.4
4.3
3.3
3.7
4.3
3.5
3.9
3.9
0.0 1.0 2.0 3.0 4.0 5.0
Networking equipment retail
Software retail
Computer Equipment retail
Telecom user equipment retail
Computer Equipment wholesale
Telecom user equipment wholesale
Networking equipment wholesale
Telecom core equipment
Software development
Technical audits
Telecom core integration/ solutions
Maintenance & asset management services
Consultancy services
Software integration/ business solutions
Current Need & Demand Levels for Services & Products Rated by ICTST Suppliers
Demand Need
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4.4.2 Products & Services Growth/Decrease Expectations
“What percentage growth or decrease do you estimate for the following products and
services?”
ICT Services and Technology Suppliers provided growth/decrease forecasts for several of their lines of
business. Software development, maintenance & asset management services, telecom core
integration/solutions, consultancy services and software integration/business solutions are forecasted to
increase by more than 20% in 2011.
Figure 166: ICT Products and Services Growth/Decrease (ICT Services and Technology Suppliers Assessment)
4.5 Initiatives to Increase Adoption & Usage
4.5.1 ICT Products and Services Initiatives
“What initiatives does your company utilize to increase usage of ICT products and services
across its various customer segments (B2B, B2C, B2G) (Open ended).”
Most of the interviewed ICT Services and Technology Suppliers have listed initiatives to increase ICT products
and services utilization across their various customers segments (B2C, B2B & B2G). However, few presented
relevant initiatives that will increase the ICT usage. The most relevant of such initiatives are e.g. cooperating
with universities, training university graduates (20 to 25 students per year), regularly promoting consumer
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128
products, funding R&D in universities, and creating partnerships for Technology Access. The Figure below
details the list of initiatives and their target audience.
Figure 167: Initiatives to ICT products and services usage (Indicated by ICT Services and Technology Suppliers)
The ICT Services and Technology Suppliers mentioned „providing training for university graduates‟ as the
most popular initiative to increasing ICT usage of services and products. The students training capacity
appears to be low, as ICT Services and Technology Suppliers placed an average of 9 vocational or university
students in job training. However, the number of students placed in job training is expected to double in 2012
as per technology suppliers‟ survey findings.
Figure 168: Average Number of Students targeted for training by ICT Services and Technology Suppliers
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4.5.2 Financial Facilities To Customers
“Does the establishment provide any of the following financial facilities to their customers?
1=Not provided, 5-highly provided and part of establishment policy (Multiple Choice)”
Even though 69% of ICT Services and Technology Suppliers provide their customers with flexible payment
options, they indicated low inclination towards offering their customers with cash facilities.
Figure 169: Offer of Financial Facilities by ICT Services and Technology Suppliers
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4.5.3 Consumer Training Strategies
“Looking at the following training methods please tell me which of the following is used by
your company? (by segment, i.e B2C, B2B and B2G) (Multiple Choice)”
77% of interviewed ICT Services and Technology Suppliers own local training centers for their products and
services and provide frequent training workshops on their products and services, while 62% provide online
training. These statistics reflect ICT Services and Technology Suppliers trend towards using updated training
means.
Figure 170: Training Strategies Adopted by ICT Services and Technology Suppliers
4.6 Effectiveness of the IP protection laws in KSA
“In general what is the effectiveness level of Intellectual Property Protection laws in KSA for
ICT products?”
In general, ICT Services and Technology Suppliers gave the following rating for effectiveness of „IP protection
laws‟ in KSA.
31%
38%
54%
54%
54%
62%
62%
77%
77%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Providing training to Sales Reps at Retail facilities
We only provide on spot training for the products/services at our premises
Viral Training (Word of Mouth)
We own a regional training center for our products and services
We have strategic partnership with a local/regional training center for our products and services
Training at customer premises is mainly part of the delivered products
We provide online training
We own a local training center for our products and services
We provide frequent training workshops for our products and services
Training Strategies Adopted by ICTST Suppliers
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Figure 171: Effectiveness of the IP protection laws in KSA as Perceived by ICT Services and Technology Suppliers
4.6.1 Rating Regulatory Performance
“How do you rate the effectiveness of the telecom regulations in the following areas? “
In general, ICT Services and Technology Suppliers considered telecom regulation moderately effective in
promoting market competitiveness (average rate 3 over a scale of 5). Regulation effectiveness is higher in
areas such as Mobile Market and low in areas such as fixed market. The „Fixed Market Competitiveness‟, the
„ICT Consumer Rights Protection‟ and the „Wholesale Market Competitiveness‟ were given the lowest average
rate 2.2, 2.5 and 2.9 respectively.
Figure 172: ICT Services and Technology Suppliers Rating Regulatory Performance
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4.6.2 Implementation Channel for Solutions
“Which of the following delivery methods apply to your company when providing services to
Telecom Service Providers and other ICT Service Providers?” (Multiple Choice)
A majority of 85% of ICT Services and Technology Suppliers implement their solutions directly through their
employees; while 69% of them outsource the implementation work to local companies. On the other hand,
46% of interviewed ICT Services and Technology Suppliers exclusively outsource their implementation to
regional and international companies.
Figure 173: ICT Services and Technology Suppliers Services Delivery
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4.7 Products/Services Life Cycle Forecast
“Please tell me where you believe each of the following products and services are on their
Product Lifecycle”
ICT Services and Technology Suppliers were asked to position various ICT services and products along the
typical product life cycle chart. The figure reflects the ICT Services and Technology Suppliers view on the
development needs to further increase levels of ICT services adoption and usage.
Figure 174: ICT Services and Technology Suppliers Segmenting ICT Services along the Product Life Cycle
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4.8 Adoption forecast for the short term
“Can you please describe the future products & services of the establishment?” (Open Ended)
ICT Services and Technology Suppliers provided a list of their future services that will be supplied in KSA and
their perceived effects on the market.
Figure 175: Forecast on Technologies Adoption (ICT Services and Technology Supplier Assessment)
4.9 Research and Development Activities
“What is the assigned budget to the research and development in your establishment for KSA
market?”
Most of the ICT Services and Technology Suppliers in KSA have international presence and seem to not have
interest or plans to customize R&D investments within KSA market.
Data center virtualization
Unified communications and IP Multimedia Sub-system (IMS)
Service oriented architecture (SOA) and cloud computing
LTE, WiMAX and Wireless broadband
FTTH and IPTV,
100 Gigabit DWDM transmission
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4.10 Growth Forecasts “Based on your companies experiences please tell me approximately by what percentage
(up/down) you believe the following market segments ICT spend will increase/decrease for
the years 2009, 2010, and 2011.”
ICT Services and Technology Suppliers estimate a high growth of ICT expenditure (7% in average) in KSA
over 2009-2011 period span. The highest growth is forecasted for Businesses (9%), Government (8%), and
(6%) for households. The lowest growth was forecasted for Individuals (4%). On a parallel course, ICT services
providers‟ expenditure growth is estimated at 6.7%. These figures indicate a sustained development of the ICT
market.
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5. Service Provider Interviews - Current and Future Services
The following sections focuses on the analysis of current and future (new) ICT services expected to emerge in
the Kingdom of Saudia Arabia. The new services listed in both sections are forecasts based on interviews with
Telecoms Service Providers and ICT Services and Technology Suppliers. The forecasts include different types
of value adding products, services and solutions that individuals, households, private and public
establishments may expect to see, adopt and use in the near future.
Since both national and international ICT Services and Technology Suppliers play an important role19 with
supply/demand side factors (Telecommunication service providers and various consumer segments;
individual, household, private and public establishments) the CITC ICT Market Research has included this
section to summarize all relevant plans and developments for our interested readers.
5.1 Current ICT Services This section aggregates the key findings of interviews and secondary research of the key telecommunication
services currently offered by Service Providers across Saudi Arabia.
Figure 176: Current ICT Services
19
The supply of turnkey systems, solutions, integration and consultation services to operators, public and private establishments and supply of end
user devices (handsets, laptops, CPE, etc.)
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5.2 Future ICT Services
The section lists and briefly analyzes the futures services expected to emerge, be adopted and used by various
consumer segments across Saudi Arabia. The list and related information below represents the consolidated
insights of all Service Providers operating in Saudi Arabia.
5.2.1 List of Future ICT Services
Figure 177: Future ICT Services
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6. Further Reading
To further broaden your understanding of the ICT Market in Saudi Arabia CITC welcomes all readers to review the following report readily available on the CITC website:
CITC ICT Market Study 2009/2010 – Research Methodology and Practices CITC Internet Usage Study CITC Quarterly Indicators CITC Universal Service Fund Study
Reports planned for publishing in 2011:
CITC Analysis of New Trends and Development in the ICT Market
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7. Thank You Letter
To: All participants in the ICT Market Study (Service Providers, Public and Private Establishment, Individuals/Households, ICT Services and Technology Suppliers) Re: Your participation in the CITC Information and Communication Technologies (ICT) Market Study
Dear Participant,
Thank you for taking part in shaping the future of Saudi Arabia‟s ICT Industry by sharing your experiences and feedback through the most comprehensive ICT market study conducted to date. Your feedback and views on the various dimensions of the ICT market value chain will assist the Communications and Information Technology Commission, a Saudi Arabian government agency committed to ensuring a fair competition in a transparent regulatory environment to best serve the needs of all ICT consumers. The information and insights from this study are already being used by CITC to adapt ongoing efforts to meet the needs of individuals, private and public establishments using ICT services and technologies across Saudi Arabia. CITC welcomes all comments or suggestions helpful in improving the usefulness of this and future reports to
be sent to [email protected]. For information and updates about the activities of CITC please
register at www.citc.gov.sa.
Thank you for your interest, time and involvement. Yours sincerely, Communications and Information Technology Commission