Verizon Among the Three Qualified Consortiums to Provide Fixed Services in Saudi Arabia

The Communications and Information Technology Commission (CITC)
has announced that three consortiums have been considered as Qualified
Applicants for the Fixed License. The qualified applicants are now
expected to bid for the spectrum to offer fixed services. As Optical
Communications Company (Verizon) is not applying for the spectrum, its
license award will be only subject to the Council of Ministers
approval.

Thomas Kuruvilla, Managing Director for Arthur D. Little in the
Middle East, who has been working closely with the CITC in the
licensing process commented: "Technically qualified applicants (like
Verizon) not requesting for spectrum are eligible for the Fixed
Services License subject to the approval from the Council of
Ministers. Qualified Applicants who have bid for the spectrum will now
attend the Spectrum Assignment Process. In summary, we can have many
Fixed Service Providers, providing both wire-line and wire-less last
mile connectivity to consumers."

"CITC has been very successful in updating the regulatory
framework to allow the best, latest and cost effective technologies to
be used to provide Fixed Services. Multiple fixed service providers
are necessary in the country at this stage to ensure rapid investments
in the fixed local access infrastructure and provide consumer choices.
This will also facilitate the move towards convergence in the near
future. We have now successfully avoided situations faced recently in
other countries with unsuccessful or delayed second national fixed
license award processes," Mr. Kuruvilla added.

The CITC introduced regulatory frameworks in Oct 2006 to provide a
level playing field for the new fixed line licensees. This transparent
regulatory regime has encouraged interested operators to participate
in the fixed licensing process.

The Qualified Applicants include Optical Communication Company
Consortium (MCI International / Verizon- USA), Al-Mutakamilah
Consortioum (PCCW - Hong Kong) and Atheeb Consortioum (Batelco -
Bahrain).