مشروع مذكرة معلومات مزاد الطيف الترددي للشبكات غير الأرضية في النطاق الترددي ٢١٠٠ ميجاهرتز

1.1. The Communications and Information Technology Commission (CITC) is the authority in charge of regulating and promoting the communications and information technology industries in the Kingdom of Saudi Arabia (KSA). Pursuant to the Telecom Act and CITC's Spectrum Outlook (published March 2021), CITC will offer to grant Radio Licenses in the 2100 MHz band, allocated according to the process described in this Information Memorandum (“award process"). A Radio License will permit the use of the respective spectrum blocks to operate a telecommunication system for the purposes of providing telecommunication services. This Information Memorandum contains important information that interested parties should read and understand for the purpose of participating in the award process.

1.2. This Information Memorandum is provided for parties interested in participating in the Spectrum Auction of NTN in the 2100 MHz band and contains:

(a) a description of the spectrum to be awarded;

(b) information relevant to this award regarding future spectrum releases;

(c) a description of the award process, including Application Stage, Qualification Stage, Allocation Stage and Grant Stage; and

(d) a timetable for the award process.​

Available frequencies

3.1. A total of 2x30 MHz of paired spectrum will be assigned in this award in the frequencies 1980-2010 MHz (uplink) and 2170-2200 MHz (downlink)

Available blocks

3.2. CITC will package spectrum in the award into two 2x15 MHz blocks. The frequency positions of each of these blocks is set out in Figure 1.

FIGURE 1: FREQUENCY POSITIONS OF SPECTRUM BLOCKS AVAILABLE IN THE AUCTION

4.1. This section provides relevant information about the regulatory framework for spectrum awards and deployment of services using spectrum, including CITC’s Spectrum Outlook. It is not intended to be exhaustive. Prospective bidders are advised to familiarise themselves with the legislation, policies and codes of practice identified below.

The regulatory authority and guiding legislation

4.2. CITC is the authority in charge of regulating the communications and information technology industries in the KSA. 

4.3. CITC work is generally governed and guided by provisions of the following legislative acts:

(a) Telecom Act ;

(b) Telecommunications Act Bylaws ; and

(c) CITC Ordinance .

4.4. This competitive award of NTN Radio Licenses is carried out by CITC as indicated in its Spectrum Outlook for Commercial and Innovative Use 2021-2023. 

Policy and regulations for frequency bands identified for IMT and beyond

4.5. CITC has published the updated regulatory document titled “Allocation and Use Regulation for Spectrum Bands Identified for IMT” .   This document regulates the Spectrum Identified for IMT and sets out the regulations relevant to frequencies mentioned in this document. Amongst other issues, it sets out CITC’s position on license renewal, spectrum use fees, and  enforcement of license terms. 

Upcoming spectrum auctions

4.6. CITC is making continuous efforts to advance availability of spectrum for all users and services. While the auction in 2021 will focus on spectrum for satellite and NTN, CITC is planning two auctions for mobile broadband (IMT) spectrum as set out in Table 4. Specifically, CITC is planning to hold one or more auctions for spectrum in the 600 MHz, 700 MHz, 1500 MHz, 3800 – 4000 MHz and 26 GHz bands in 2022.  

Table 4: CITC current view on future availability of IMT spectrum

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5.1. The award process consists of four stages, as set out in Figure 2:

1) Application Stage

2) Qualification Stage

3) Allocation Stage

4) Grant Stage

5.2. The rules and procedures for each stage are described in the following Sections 6, 7, 8 and 9. In this section, we provide some general information common to the entire process.

Deposit requirements

5.3. As set out in Paragraph 6.2, each applicant must submit a deposit in the form of a bank guarantee  for SAR 5,000,000 valid until 31 January 2022. The purpose of the deposit is to provide an appropriate incentive for bidders not to default on their bids and not to engage in inappropriate behaviour (as defined in Paragraphs 5.6 and 5.7). There is no link between the level of deposit submitted and which block(s) a bidder can bid for in the auction.

5.4. During the auction, CITC will monitor the level of bids made by each bidder relative to the level of their deposit. In the event of exceptional circumstances, CITC reserves the right to pause the award process, for example between bid rounds, and require bidders to increase their deposits. In the unlikely event that CITC invokes this clause, it will endeavour to give bidders reasonable notice of the amount and date of the increase.

5.5. If a bidder fails to increase their deposit as directed by CITC, that bidder will be excluded from further bidding in the award process. However, all bids made by the bidder up to that point will remain valid.

Bidder conduct before and during the auction

5.6. CITC will communicate to each qualified bidder the list of all bidders qualified to participate in the auction. All qualified bidders are required not to engage in conduct that would be detrimental to CITC’s ability to run an effective auction process.

5.7. In particular, it is the responsibility of the bidders themselves to ensure that:

(a) they are not associated with any other qualified bidder;

(b) they do not share confidential information in relation to the auction, including but not limited to information regarding the bidder’s valuations, bid strategy or bid decisions, with any other qualified bidder;

(c) no person with access to the bidder’s confidential information has access to another qualified bidder’s confidential information; and

(d) they do not engage in any action that could be deemed collusive or may otherwise be detrimental to CITC’s ability to run an effective award process.

5.8. If CITC receives evidence that a qualified bidder has engaged in inappropriate behaviour, as described in Paragraph 5.7, CITC may at its sole discretion take one or more of the following steps:

(a) exclude that bidder from further participation in this award;

(b) void any bids that the bidder has submitted prior to the point of exclusion; and/or

(c) execute the bidder’s bank guarantee and keep the proceeds.

CITC may also take additional legal and regulatory actions outside the award process, such as but not limited to excluding the bidder from participation in future spectrum awards.

Exceptional circumstances

5.9. In the case of exceptional circumstances during the award process, CITC has the discretion to:

(a) cancel the award process;

(b) suspend the award process until further notice;

(c) pause the award process, for example between rounds, and require bidders to increase their deposit;

(d) if the Allocation Stage is underway:

a. postpone the end of a round in progress or the release of results of a round;

b. postpone the scheduling of further rounds;

c. cancel a round that is either underway or for which round results have not yet been released, and re-schedule the round;

d. void one or more rounds and the bids made therein, and resume the auction from an earlier round; and/or

e. void all bids received in the award process and either suspend the award process or start the award process again.

5.10. CITC determines whether a situation of exceptional circumstances has arisen. Exceptional circumstances could include, for example, widespread technical failure or concern about possible collusion amongst bidders.

Electronic auction system (EAS)

5.11. In the Allocation Stage, bids should normally be submitted through the EAS. This online system can be accessed using a desktop or laptop computer using a standard operating system, a reliable Internet connection and a supported web browser. Each qualified bidder will also need individual secure credentials, which will be provided during the bidder seminar as described in Paragraph 7.9. Further information about accessing and using the EAS, including back-up procedures in case a bidder experiences problems accessing the EAS, will be provided in the EAS bidder manual, which will be distributed to eligible applicants.

5.12. If a bidder uses an operating system or web browser that is not supported by the EAS, the EAS may not function properly. It will be the responsibility of each bidder to verify during the mock auction that the EAS functions properly on its system.

5.13. In addition to submitting bids, qualified bidders will be able to use the EAS to download certain information about their bids and the state of the auction (such as Round Prices and Standing High Bids). Sample files will be distributed to qualified bidders.

6.1. In the Application Stage, eligible applicants submit their application document and bank guarantee. As part of the application document, each applicant is required to submit a signed declaration as well as an indication of the block(s) (A1, A2 or both) it wishes to acquire at the Reserve Price. CITC will review all application documents for errors, omissions or ambiguities.

Application process

6.2. An eligible applicant is defined as a company that already holds a Facilities-Based Unified Telecommunications Services License in the KSA or that can demonstrate that it is already providing services in the S-Band. Any successful bidder that does not hold a Facilities-Based Unified Telecommunications Services License will need to apply for a separate Class (B) license to provide any specific telecommunications service. Any successful bidder also agrees to establish a local presence in the KSA if it does not already have one.  

6.3. An eligible applicant interested in acquiring available spectrum in this award must submit to CITC:

(a) its application document (a copy of which is in Annex 2) signed by the applicant’s authorized representative;

(b) a notarized power of attorney confirming that the authorized representative has the authority to bind the applicant for all purposes in the award; and

(c) a bank guarantee for the Guaranteed Amount of SAR 5,000,000 valid until 31 January 2022.

6.4. As part of the application document, the applicant is required to specify the block(s) they would prefer at the Reserve Price: either Block A, Block B or both. A valid application represents a binding commitment by the bidder to acquire the relevant block(s) at the Reserve Price and pay the Auction Participation Fee(s) in the event that all qualified bidders nominated different blocks in their application. 

6.5. An eligible applicant that does not hold a USL will need to lodge an application for the Class (B) license(s) covering the services it wishes to provide by the Application Date set out in Paragraph 6.6. As part of its application document for the auction, it will also need to confirm that it will comply with the terms and requirements set out by CITC for obtaining approval for its Class (B) license(s) if it becomes a Qualified Bidder. 

6.6. The submission must reach CITC by the Application Date, which, unless otherwise announced by CITC, is 05:00 pm on 2 December 2021. A single completed application should be printed on single-sided A4 paper and placed inside a sealed envelope. The envelope should be:

(a) Marked as follows:

APPLICATION TO PARTICIPATE IN THE SPECTRUM AUCTION OF NTN 

(b) Hand delivered to:

Communications and Information Technology Commission

Procurement Department, 6th Floor

Al Imam Saud Ibn Abdul Aziz Rd. and Prince Turki Ibn Abdul Aziz Al Awwal Rd. Intersection

P.O. Box 75606, Riyadh 11588

Tel. +966-11-461-8000

6.7. CITC will review each application document to determine if the applicant:

(a) has provided the required information; and

(b) has made any mistakes or provided unclear information in completing the application document.

6.8. If CITC identifies any errors, omissions or ambiguities in the application document submitted by an eligible applicant, and CITC considers that these were not deliberate, CITC may, at its sole discretion, notify the applicant regarding the relevant issue(s), and provide it with an opportunity to correct its application. The time period granted to an applicant for correcting an application will not normally be more than 24 hours.

Signed Declaration

6.9. As part of the application document, each applicant is required to submit a signed declaration stating that:

1) The signatories have read and understood the terms of the license to be granted under the Auction of NTN RADIO LICENSES Information Memorandum (the “Information Memorandum”) and the Telecom Act issued under the Council of Ministers resolution No. 74 dated 5/3/1422H (the “Act”);

2) The signatories have read and understood the rules and procedures for the award as set out in the Information Memorandum;

3) The applicant has the legal authority to participate in the award process and meets the conditions set out in Paragraph 6.2. Where necessary, the applicant should provide supporting evidence that demonstrate that it meets these conditions;

4) The applicant is not associated with any other applicant or has any ownership or financial interest in another applicant in the award process;

5) The applicant has and will ensure that it discloses confidential information only to the extent that is necessary and expressly permitted by the Information Memorandum to members within the applicant’s own bidding group; and

6) The applicant warrants not to engage in any action that could be deemed collusion or is otherwise detrimental to CITC’s ability to run an effective award process.

7) If the applicant does not hold a USL, it confirms that it has lodged an application for the Class (B) license(s) covering the services it wishes to provide by the Application Date. 

8) If the applicant does not hold a USL, it confirms that in the case it becomes a Qualified Bidder, it will comply with the terms and requirements set out by CITC for obtaining approval for its Class (B) license(s).

9) The applicant is submitting a binding bid to acquire its preferred block(s) in the event that the application is accepted, no Allocation Stage is required and the award proceed proceeds directly to the Grant Stage.

6.10. With respect to part (4) of Paragraph 6.9, it is the understanding of the CITC that all companies holding a USL are acting independently and have no material ownership or other associations which could affect their independence with regards to the award process. If any party has any reason to believe that this is not the case, it must declare relevant information at the time of application if applicable or otherwise report their concerns immediately to CITC. Any other applicant will need to provide supporting evidence demonstrating that they are not affiliated with any other applicant.

6.11. Any qualified bidder is obliged to refrain from taking any action that could result in it becoming associated with another qualified bidder until after the completion of the award process. Failure to comply with this warranty may result in the exclusion from the award process of all such parties and forfeiture of their bank guarantees. For the avoidance of doubt, CITC reserves the right to review spectrum holdings following any future mergers, acquisitions or arrangements between spectrum holders if such developments raise competition concerns. Addressing such competition issues may require license holders to divest spectrum; the allocation and assignment outcomes of this award process shall not constrain CITC’s legal powers in this regard.

6.12. With respect to parts (5) and (6) of Paragraph 6.9, it is the responsibility of each qualified bidder to ensure that their representatives do not breach these warranties at any time before or during the award process. Failure to comply with these warranties may lead to an applicant or qualified bidder being excluded from further participation in the award process and/or forfeiting their deposit (bank guarantee). CITC reserves the right to take further measures against any party that engages in behaviour that is detrimental to CITC’s ability to run an effective award process.

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7.1. In the Qualification Stage, the CITC completes the review of applications and announces the identify of all qualified bidders. 

7.2. If at least one block was nominated by two or more qualified bidders in their application, CITC will conduct an auction for both blocks. In this case, qualified bidders will be invited to participate in a number of activities prior to the start of the Allocation Stage. Otherwise, CITC will allocate the spectrum directly as per the nominations in the application.

Qualification Process

7.3. CITC will review each application document (including amended application documents if applicable) and bank guarantee, together with any other documents that CITC may deem relevant to the process, to determine if the eligible applicant:

(a) has provided all required information in the correct format;

(b) has submitted a bank guarantee not less than the Guaranteed Amount valid until 31 March 2022;

(c) has made a binding bid at the Reserve Price for at least one of the two blocks; and

(d) meets the criteria to participate in the award process.

7.4. If an eligible applicant fulfils all four criteria in Paragraph 7.3, it will be designated as a qualified bidder (hereafter also referred to as a “bidder”), and will be eligible to participate in the Allocation Stage.

7.5. If an eligible applicant fails to fulfil one or more of the criteria in Paragraph 7.3, its application will be rejected, and it will not be qualified to participate in the Allocation Stage. CITC will inform rejected applicants of its decision in writing. Rejected applicants who do not become qualified bidders will have their bank guarantees returned.

7.6. Once the qualification process is complete, CITC will communicate the list of qualified bidders to all qualified bidders. This list will include the names of all bidders but no other information about their applications.

Direct allocation

7.7. In the event that each block receives no more than one nomination from qualified bidders in their applications, then all such nominations will be identified as winning bids, and the respective bidder(s) will be allocated the blocks they nominated, subject to completing the Grant Stage.  In this case, no Allocation Stage is required and the CITC will move directly to the Grant Stage. The Winning Price for each block is its respective Reserve Price. 

7.8. If at least one block received more than one nomination from qualified bidders in their application, CITC will proceed to the Allocation Stage and allocate both blocks in that stage.  

Activities for qualified bidders

7.9. If CITC proceeds to the Allocation Stage, representatives of qualified bidders will be eligible to participate in the following activities:

(a) Q&A session. Bidders may submit questions in writing by email (to an address that will be supplied to qualified bidders) seeking clarifications regarding the auction rules and award process. CITC is not obliged to respond to any question but will normally aim to respond in writing. 

(b) Bidder seminar. At least three representatives of each bidder are expected to attend the bidder seminar either in person or via video conference. At the bidder seminar, CITC and its advisors will make presentations and answer questions on the auction rules and award process. After the bidder seminar, secure credentials to access the EAS will be distributed to qualified bidders.  The bidder seminar may be conducted in person, for example at CITC premises, and/or via video conference, at the discretion of the CITC.

(c) Mock auction. Qualified bidders are expected to participate in the mock auction. During the mock auction, bidders will be able to log on to the EAS and participate in a number of mock bidding rounds. The purpose of the mock auction is to allow bidders time to familiarise themselves with the EAS and not to test bidding strategy.  

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8.1. The purpose of the Allocation Stage is to determine the block(s) that will be awarded to each bidder, and to determine the associated Winning Price(s) for each winning bidder. In this section, we present the rules and procedures for participating in the Allocation Stage.

Overview of Allocation Stage

8.2. The Allocation Stage will be undertaken as a simultaneous multiple round ascending (SMRA) auction. The SMRA auction proceeds in a number of rounds. In each round, the EAS will state a Round Price for each block and bidders select whether to bid for a particular block at its prevailing Round Price.

8.3. In Round 1, CITC will enter on behalf of each bidder a bid at the Reserve Price for each block nominated by that bidder in its application. The EAS will then determine the Standing High Bid for each block (if any). Bidders will then be able to submit bids from round 2 onwards. 

8.4. At the end of each round, CITC will determine the Standing High Bid for each block. If exactly one new bid was submitted for a block, this bid becomes the Standing High Bid. If more than one new bid was submitted for a block, CITC will select one of them at random to become the Standing High Bid. 

8.5. Bidding is subject to an activity rule which ensures that bidders cannot increase their demand (as measured by the total number of eligibility points associated with the blocks they are bidding for) over the course of the auction. 

8.6. The Allocation Stage continues until there is a round with no new bids for any block and no waivers.

Scheduling of rounds

8.7. Rounds are scheduled at CITC’s discretion. All rounds will normally be scheduled to take place between 9.00am and 6.00pm on Saudi Arabian business days. The scheduling of rounds will take into account Muslim prayer times and may be further adjusted if the Allocation Stage extends into the holy month of Ramadan. An indicative schedule for each day’s rounds will be published prior to the opening of the first round of that day. No round will start before the time specified in the indicative schedule, but the start time for a round may be delayed for any reason.

8.8. CITC does not anticipate running rounds shorter than 15 minutes or longer than one hour. The time between rounds is discretionary.

8.9. There is no upper bound on the number of rounds per day, although CITC does not anticipate running more than 10 rounds in a single day.

8.10. Bidders will be notified of the start time for a round at least 15 minutes before the scheduled round start.

Bid submission

8.11. When a round is open, bidders should submit their bids using the EAS. Bidding will be conducted using a check box procedure. In each bidding round, CITC will specify a fixed prevailing round price for each block. Bidders check the relevant box associated with the block for which they would like to submit a new bid. Bidders have no discretion to select a higher or lower bid amount.

8.12. The EAS is designed to block submission of invalid bids; for example:

(a) The check box will not allow a bidder to submit more than one new bid for a block;

(b) The EAS will not allow bidders to submit bids associated with a total activity that exceeds their eligibility (see Paragraphs 8.26 and 8.27).

(c) The EAS will not allow bidders to submit new bids and place a waiver in the same round; and

(d) The EAS will not allow a bidder to submit a waiver if the sum of the eligibility points associated with the bidder’s Standing High Bids is equal to the bidder’s eligibility.

8.13. Each bid submitted in accordance with the auction rules is considered to be a valid bid. A valid bid represents a binding commitment to buy a block at the prevailing round price. Each offer for a block within a valid bid remains valid for the duration of the Allocation Stage unless voided by CITC.

8.14. Bid submission is a two-step process:

1) The bidder enters its bid decision into the EAS, so its validity can be checked:

• If the bid decision is compliant with the auction rules, the bidder proceeds to the second step below.

• If the bid decision is not compliant with the auction rules, an error message with an explanation will be generated by the EAS and the bidder will be redirected to the bid form so that it can modify its bid decision.

2) A summary of the bid decision will be presented, and the bidder will be asked to confirm submission. Only confirmed bids will be registered by the EAS. A warning will be provided if the bidder is reducing the total number of blocks bid for relative to the previous round.

8.15. A bidder is deemed not to have submitted a bid until such time as confirmation of a valid bid is received at the server that hosts the EAS. Receipt of such confirmation will be communicated to the bidder through the EAS. It is the responsibility of the bidder to submit its bid before the end of a round and to check receipt of the bid confirmation by the EAS. Bidders are advised to alert CITC immediately if they experience problems with bid submission.

8.16. In the unlikely event that a bidder experiences problems submitting a bid using the EAS, a back-up procedure for bid submission by telephone will be available. Further information about this back-up process will be provided in the EAS bidder manual.

Round Prices

8.17. In each round, the CITC will specify a Round Price for each block. This will be an amount in units of SAR 1,000.

8.18. In the first round, the Round Price for each block will be set equal to the Reserve Price (see Table 3).

8.19. In subsequent rounds, the Round Price will be set as follows:

• If there is no Standing High Bid, the Round Price will be unchanged.

• If there is a Standing High Bid, the Round Price will be set at an increment above the current Standing High Bid. 

8.20. In each round and for each block, the amount by which the Round Price is increased is determined at the discretion of the CITC. There is no minimum or maximum increase in absolute or percentage terms, and the level of increase may vary across blocks in the same round.

8.21. In order to provide bidders with reasonable certainty over how Round Prices may change during the auction, CITC may provide guidelines on its preferred approach prior to the start of the Allocation Stage. This guidance may include a range for the minimum and maximum Round Price increases that CITC is likely to apply, expressed either as a percentage of the Standing High Bid or an absolute amount, and a provisional cap in SAR on the largest Round Price increase that may be applied per round.

Bidding in round 1

8.22. In Round 1, CITC will enter on behalf of each bidder a bid at the Reserve Price for each block nominated by that bidder in its application. The EAS will then determine the Standing High Bid for each block (if any). Bidders will be able to submit bids from round 2 onwards. 

Bidding in all rounds

8.23. In round 2 and all subsequent rounds, a bidder may:

• Submit a new bid for one or more blocks subject to the activity rules set out in Paragraphs 8.26 and 8.27; or

• Confirm that it does not want to submit any new bids or place a waiver; or

• Submit a waiver if the sum of the eligibility points associated with the bidder’s Standing High Bids is strictly less than its eligibility.

8.24. The bidder that holds the Standing High Bid for a specific block can either maintain its Standing High Bid at the Round Price at which it was made or submit a new bid at the prevailing Round Price. A bidder with at least one Standing High Bid cannot actively disengage from the auction.

8.25. In each bidding round, a bidder that (a) does not have a Standing High Bid; (b) does not place a new bid; and (c) does not use a waiver (either actively or passively), is deemed to have withdrawn from the auction, and is not allowed to bid in the auction in subsequent bidding rounds.

Activity rules

8.26. A bidder’s activity is measured by the total number of eligibility points associated with the blocks the bidder either placed a new bid for or for which the bidder holds the current Standing High Bid. The eligibility points associated with each block are set out in Table 1.

8.27. A bidder’s activity in a round cannot exceed its eligibility. A bidder’s eligibility in a round is determined as follows:

• For round 1, a bidder’s eligibility is 2 eligibility points;

• In a round following a round in which a bidder placed a waiver, the bidder’s eligibility is unchanged. 

• In all other rounds, the bidder’s eligibility is equal to the bidder’s activity in the previous round. 

Waivers

8.28. Placing a waiver maintains the bidder’s eligibility to place a bid in the subsequent bidding round. Each bidder is initially allocated a maximum of two waivers during the auction, which may be deployed actively or passively:

• Active: A bidder may select to use a waiver (see Paragraph 8.23) instead of submitting any new bids if the sum of the eligibility points associated with its Standing High Bids is strictly less than its eligibility.

• Passive: The EAS automatically places a waiver on behalf of a bidder if all of the following conditions hold:

a. the bidder does not place a new bid;

b. the bidder does not confirm that it does not want to place any new bids or a waiver in this round;

c. the bidder does not actively use a waiver;

d. the sum of the eligibility points associated with the bidder’s Standing High Bids is strictly less than its eligibility; and 

e. the bidder has at least one remaining waiver, 

8.29. Additional waivers may be granted either to all bidders or to individual bidders at the sole discretion of CITC. CITC does not expect to grant additional waivers unless it has good reason to believe that one or more bidders faced technical or other problems that they could not have reasonably anticipated, and that granting additional waivers is in the general interest of conducting an efficient award process. Additional waivers can only be granted in the periods between rounds. They cannot be granted during a round.

8.30. A bidder may notify the CITC that it is unable to submit a bid during a round and is likely to require a waiver; notification is not mandatory but would assist administration of the process.

Determination of Standing High Bids

8.31. At the end of each round, CITC determines the Standing High Bid for each block (if any):

• If there are no new bids for a block and there is no Standing High Bid from a previous round, the block does not have a Standing High Bid; 

• If there are no new bids for a block, but there is a Standing High Bid for the block from a previous round, the current Standing High Bid remains unchanged. 

• If there is exactly one new bid for a block, that bid will become the Standing High Bid, displacing the previous Standing High Bid if applicable. 

• If there is more than one new bid for a block, the Standing High Bid will be selected from amongst these bids using a random draw. 

Information policy

8.32. At the end of each round, each bidder will be provided with the following information via the EAS:

(a) For each block: the amount of the Standing High Bid (if any) and if the bidder holds the Standing High Bid for that block;

(b) The number of waivers placed by all bidders in this round. 

(c) The start and end time for the next bidding round. 

(d) Its own eligibility for the next round; and

(e) the number of waivers it has remaining.

8.33. No other information will be released about the bids submitted by other bidders during the rounds.

Winning bidders

8.34. Bidding for the two blocks closes simultaneously when there is a round in which there are no new bids for either block and no waivers placed. The Standing High Bids will be declared the winning bids and the Winning Price for each block will be its respective Standing High Bid. 

8.35. Once CITC has determined the winning bids and bidders, each bidder will be informed about its own outcome, including:

• the block(s) it has won, if any; and

• the Winning Price(s) that apply to the block(s) that it has won.

8.36. No information about the outcome of the Allocation Stage for other bidders will be provided.

9.1. In the Grant Stage, CITC will issue new NTN Radio Licenses based on the outcome of the auction. No licenses will be issued to operators until they have submitted the necessary payments  and met all the service licenses requirments. 

Announcement of auction outcome

9.2. Following the conclusion of the Qualification Stage (as per Paragraph 7.7) or the Allocation Stage, the CITC will publish the results of the auction, including:

(a) the identity of the winning bidders;

(b) the block(s) assigned to each winning bidder; and

(c) a breakdown of the fees to be paid by each bidder, including:

i. the License Fee for each block acquired by the bidder, which equals the Winning Price for the respective block; and

ii. the Auction Participation Fee for each block acquired by the bidder.

9.3. CITC will also issue a formal notification to each bidder of the results of the award process.

9.4. CITC will maintain a history of all bids submitted in the auction and reserves the right to publish this at any time in the future following the completion of the award process.

Payment of fees

9.5. Within 90 days of the issue of the notification in Paragraph 9.3, each bidder who was awarded spectrum must pay to CITC an amount equal to the Auction Participation Fee for each block it was awarded. 

9.6. The bank guarantee(s) submitted during the application stage shall be released to the participants as follows:

(a) to participants not winning any blocks: after the conclusion of the Allocation Stage;

(b) to participants winning at least one block: after the relevant operator has paid in full the amount specified in Paragraph 9.5.

Grant of licenses

9.7. Successful bidders who have duly completed the auction process and complied with all terms and obligations described in this document, shall be issued new Radio Licenses for the relevant portions of the 2100 MHz band once they have paid in full the amount specified in Paragraph 9.5.

10.1. The timetable in Table 5 is indicative only of the expected timing of certain key milestones and events prior to, during and after the award process.

10.2. Please note that CITC may at any time change any of the times or dates and/or shorten or extend the time periods set out in this Information Memorandum upon giving at least twenty-four (24) hours’ notice, save in emergency situations where such changes may be made without notice.

TABLE 5: INDICATIVE TIMETABLE FOR KEY MILESTONES AND EVENTS

​License Number: ___________________

DRAFT NTN Radio License

Issued to:

Company/Establishment:

Phone: _________________ Fax: ________________ Box: ________________

Postcode: _________________

The Communications and Information Technology Commission (CITC) acting in pursuance of Article 12 of the Telecom Act and Articles 17, 79-82 of Telecommunications Act Bylaws, hereby issues this Radio License to

-------------------------------------------------- (Licensee's name)  ------------------------

(Licensee's Commercial Registration Number) to use frequency spectrum, subject to provisions of Telecom Act and its Bylaws pertaining to use of radio frequency spectrum, CITC Statutes, the conditions of this License and its Annexes.

The Governor

CITC​

​

General Conditions                                                                                                                 - 3 -

Article 1: Definitions                                                                                                               - 3 - 

Article 2: Licensed and Assigned Frequency Spectrum                                                  - 3 -

Article 3: Use of licensed frequency spectrum                                                                 - 3 -

Article 4: Technology Migration                                                                                           - 4 -

Article 5: Term and Renewal                                                                                                - 4 -

Article 6: License Territory                                                                                                   - 4 -

Article 7: Amendment of License                                                                                         - 4 -

Article 8: Fees Payable by Licensee                                                                                    - 4 -

Article 9: Interpretation                                                                                                         - 4 -

Special Conditions                                                                                                                  - 5 -

Article 1: Definition and Use of the Licensed Frequency Spectrum                               - 5 -

Article 2: Assigned Frequency Spectrum                                                                           - 5 -

Article 3: Term and Renewal                                                                                                - 5 -

​

​General Conditions

Article 1: Definitions

1. The terms and expressions defined in the Telecom Act, the Ordinance and the Bylaw shall have the same meanings when used in this Radio License.

2. “Licensed Frequency Spectrum” means the frequency spectrum assigned to the Licensee as listed in Annexes of this Radio License.

Article 2: Use of Licensed Frequency Spectrum

1. The Licensee may use Licensed Frequency Spectrum for the sole purposes specified for each Licensed Frequency Spectrum assignment as shown in Annex 1.

2. The Licensee’s use of the Licensed Frequency Spectrum shall be subject to any applicable provisions of the Telecom Act, the Bylaws, statutes and CITC decisions and must also be consistent with :

2.1 The National Frequency Spectrum Plan and

2.2 The Frequency Spectrum Management Policies and Procedures.

3. Any Licensed Frequency Spectrum assignment in Annexes of this Radio License may be amended, revoked, and any associated obligations may be amended at any time during the term of the relevant assignment or where the CITC believes such action will improve spectrum efficiency in the KSA or for other reasons including international spectrum coordination.

4. Revocation/amendment will only occur after the CITC has consulted with the Licensee and has provided the Licensee with justification for the required changes. The notice period for such change shall be determined by the Commission taking note of the prevailing circumstances.

Article 3: Technology Migration and Spectrum Use Efficiency

1. The Licensee shall inform the Commission of the radio communications technology (radio standard) deployed in the licensed frequency spectrum and any intention to materially change that technology.

2. In case Licensee intends to change the radio communications technology, the Commission may require the Licensee to undertake actions to mitigate any adverse effects arising out of any such change, and any resulting costs shall be borne by the Licensee.

3. The Commission may require the Licensee to migrate the radio communication technology or the technical conditions of its usage (e.g. channel plan, type of emissions, etc.) for the reason of ensuring most efficient use of Licensed Frequency Spectrum assignment, and any resulting costs shall be borne by the Licensee unless alternative arrangements are explicitly specified by the Commission.

Article 4: License Term

This Radio License shall remain valid for as long as the Licensee holds a valid [Facilities Based Unified License]. Individual Licensed Frequency Spectrum assignments shall remain valid for the duration specified in relevant Annex. 

Article 5: Geographic Coverage

The Licensee may use the Licensed Frequency Spectrum subject to geographic coverage rights and obligations as specified for each Licensed Frequency Spectrum assignment in relevant Annex.

Article 6: Amendment of License

This Radio License is subject to amendment in accordance with Commission statutes.

Article 7: Spectrum Use Fees Payable by Licensee

1. The Licensee shall pay to the Commission the fees for using Licensed Frequency Spectrum assignments as specified in relevant Annex of this Radio License. These spectrum usage fees may be amended from time to time.

2. The Commission shall determine and inform the Licensee of the method of issuance of invoices and payment with which the Licensee shall comply.

3. Payment shall be due immediately upon issuance of the invoice and shall be paid within one month of the invoice issuance date.

ANNEX 1 [to Radio License]

Licensed Frequency Spectrum

[The following details shall be completed separately for each Licensed Frequency Spectrum assignment for the Licensed Unified service provider

Additional separate annexes will be used for additional/service specific assignments]

CITC Frequency Spectrum Assignment Reference: [Number] __________

Assigned Channels Radio Frequency Use Parameters Geographic Coverage Licensed Service Obligations and Conditions Expiry Date of Frequency Assignment Annual Spectrum Use Fees

[The above information should be completed separately for each individual assignment]

​

An applicant must complete, in full, this form and submit it to CITC by 2 December 2021 (the “Application Date”) for consideration. Any additional documentation required to be supplied by the applicant must be appended to this application document.

THE APPLICANT

Name of applicant: ___________________________________

Address of applicant: ___________________________________

___________________________________________________________________

___________________________________________________________________

AUTHORIZED REPRESENTATIVE

Each bidder must provide contact information for an authorized representative that will be the main point of contact for CITC. All materials associated with the auction, including confidential information necessary to submit bids, will be sent to the authorized representative. The authorized representative has authority to bind the applicant for all purposes in the award.

Authorized representative

Name of authorized representative _____________________________

Position of authorized representative _____________________________

Telephone of authorized representative _____________________________

E-mail of authorized representative _____________________________

The applicant hereby acknowledges that all communication given by CITC shall be sent by e-mail to the e-mail address of the authorized representative provided above. All communication shall be deemed received by the applicant at the time of transmission. The authorized representative must remain contactable at all times.

​In addition to the authorized representative, an applicant may, but is not required to, name up to three (3) alternate representatives.

Alternate representative 1

Name of alternate representative 1 _____________________________

Position of alternate representative 1 _____________________________

Telephone of alternate representative 1 _____________________________

E-mail of alternate representative 1 _____________________________

Alternate representative 2

Name of alternate representative 2 _____________________________

Position of alternate representative 2 _____________________________

Telephone of alternate representative 2 _____________________________

E-mail of alternate representative 2 _____________________________

Alternate representative 3

Name of alternate representative 3 _____________________________

Position of alternate representative 3 _____________________________

Telephone of alternate representative 3 _____________________________

E-mail of alternate representative 3 _____________________________

The alternate representatives will be contacted, in order of their listing, in the case that the authorized representative, for whatever reason, is not immediately contactable. However, they will not be deemed to have the authority to bind the applicant for all purposes in the award.

APPLICANT DECLARATION

We, the undersigned, being the authorized representative(s) of __________________________ (the “applicant”) hereby declare that all information provided in, or in support of, the application is to the best of the knowledge and belief of the applicant true, accurate, and complete. We hereby warrant to the Communications and Information Technology Commission of Saudi Arabia (the “CITC”) that:

1) The undersigned have read and understood the terms of the license to be granted under the Auction of NTN Radio Licenses, Information Memorandum (the “Information Memorandum”) and the Telecom Act issued under the Council of Ministers resolution No. 74 dated 5/3/1422H (the “Act”).

2) The undersigned have read and understood the rules and procedures for the award as set out in the Information Memorandum.

3) The applicant has the legal authority to participate in the award process and meets the conditions set out in Paragraph 6.2 of the Information Memorandum. Where necessary, the applicant provides supporting evidence that demonstrate that it meets these conditions in an attachment to this declaration.

4) The applicant is not associated with any other applicant or has any ownership or financial interest in another applicant in the award process.

5) The applicant has and will ensure that the applicant discloses confidential information only to the extent it is necessary and expressly permitted by the Information Memorandum to members within the applicant’s own bidding group.

6) The applicant warrants not to engage in any action that could be deemed collusion or is otherwise detrimental to CITC’s ability to run an effective auction process.

7) If the applicant does not hold a USL, it confirms that it has lodged an application for the Class (B) license(s) covering the services it wishes to provide by the Application Date. 

8) If the applicant does not hold a USL, it confirms that in the case it becomes a Qualified Bidder, it will comply with the terms and requirements set out by CITC for obtaining approval for its Class (B) license(s).

9) The applicant hereby makes a binding bid at the Reserve Price (as set out in Table 2 of the Information Memorandum) to acquire (please add a tick in the relevant box(es) below:

Signature of authorized representative

for and on behalf of the applicant: _____________________________

Name of authorized representative: _____________________________

Date: _____________________________