Dispute Resolution Between ICT Service Providers in Saudi Arabia May 31st, 2005

Contents ICT Regulatory Framework The Act, the Bylaw and the Ordinance Definition and Scope of Disputes Dispute Resolution Request (Application) Dispute Resolution Methods Consensual Resolution Mandated Resolution Appeal Process Conclusion

ICT Regulatory Framework Telecommunications Regulatory Commission formed in the Kingdom in 1422H Commission’s Role expanded to include IT, in 1425 Telecommunications Act: Royal Decree No. (M/12) dated 12/03/1422H (corresponding to 03/06/2001). Telecommunications Bylaw: Issued by the Ministerial Decision No.(11) dated 27/07/2002 , approving the Telecommunications Bylaw. Telecommunications Ordinance: Issued pursuant to the Council of Ministers Decision No. (74) dated 05/03/1422H (corresponding to 27/05/2001).

The Act Objectives To provide advanced and adequate telecommunications services at affordable prices. To ensure the provision of access to the public telecommunications networks, equipment and services at affordable prices. To ensure creation of favorable atmosphere to promote and encourage fair competition in all fields of telecommunications. To ensure effective and interference-free usage of frequencies. To ensure effective usage of National Numbering Plan. To ensure clarity and transparency of procedures. To ensure principles of equality and non-discrimination. To safeguard the public and user interests as well as maintain the confidentiality and security of telecommunications information. To ensure transfer and migration of telecommunications technology to keep pace with its development.

The Act – Dispute Resolution Examples Article (10): (…….. the Bylaws shall specify the procedures for settlement of disputes arising among the operators themselves or between operators and users, including objection by users to billed amounts or the quality of the offered service.) Article (30): (In the event that the concerned parties failed to reach an interconnection agreement, they have the right to submit a request to CITC to settle the dispute. CITC decision is binding on all parties.)

The Bylaw CITC has reviewed the experiences of many countries in order to make use of the positive experiences and to avoid the negative experiences. The Bylaw contains fifteen chapters composed of ninety six articles which include precise and clear details and procedures as required by the Act.

The Ordinance In accordance with this Ordinance, the Commission has legal standing and financial and administrative independence The Communications and Information Technology Commission (CITC) is based in Riyadh and has the right to establish branches or offices in any part of the Kingdom and reports to the Minister. The CITC has the authority: to regulate ICT sector. to propose regulations related to the telecommunications sector and their amendments, to review the issues associated with the sector which are raised by the concerned parties, and in particular by the licensed operators or users including the disputes involving network access and interconnection, and take the necessary decisions concerning such issues within the scope of its authority.

Dispute Definition Dispute Definition In the Bylaw: --- means a failure by service providers to agree on: (a) the terms and conditions of interconnection, (b) access to, or quality of, telecommunications service provided by one to the other, or (c) any other matter that is within the jurisdiction of the Commission.

The Scope of Disputes Failure to agree on the terms and conditions of interconnection Failure to agree on the access to, or quality of, ICT service provided by one service provider to the other Inability to agree on all of the terms of co-location between its parties Disputes related to anti-competitive practices Disputes related to abuse of dominant position Disputes between service providers in any other matter that is within the jurisdiction of CITC Objections by users to billed amounts or the quality of the offered service

Dispute Resolution Request The Dispute Resolution Request shall set out the following information: a statement that a dispute exists between the parties listed in the request; a statement of facts and issues upon which the parties agree; a statement of facts and issues upon which the parties do not agree; a statement from each party setting out its position on each disputed fact and issue; a statement from each party setting out its position on the other party’s position on disputed facts and issues; a statement setting out the dispute resolution approach sought from the Commission; and a statement setting out a proposed timetable for resolution of the dispute.

Dispute Resolution Methods According to Articles (10 and 30) of the Act and(44, 45, and 46) of the Bylaw, the CITC is mandated to deal with all disputes between service providers that are referred to it. In doing so, CITC may use one or more of the following dispute resolution methods: Consensual Resolution Mandated Resolution

Dispute Resolution Methods (---cont’d) In deciding whether to accept a request for Consensual Resolution or to proceed by way of Mandated Resolution proceeding, CITC shall consider whether: (a) resolution of the dispute will have regulatory or precedent value and whether a proceeding will likely be accepted generally as an adequately authoritative precedent; (b) the dispute raises policy issues that may extend beyond the interests of the parties involved and that may require additional comment from other concerned parties before a final resolution may be made; and (c) the dispute may potentially have a material effect on persons who are not parties to the proceeding.

Dispute Resolution Methods (---cont’d) Within fifteen (15) days after receipt of an application or a Dispute Request, CITC shall advise the parties in writing whether it has: agreed to proceed by way of Consensual Resolution; accepted the proposed dispute resolution approach; and; accepted the proposed timetable for resolution.

Dispute Resolution Procedures Consensual Resolution: - As a condition precedent, the parties shall have first negotiated in good faith for a minimum period of sixty (60) days and: (a) have been unable to reach agreement; or (b) the conduct of one party has made it clear that further negotiations will not be productive. - Must request, in writing, resolution of all of the issues in dispute. - Consensual proceedings shall be confidential, except to the extent that disclosure of information related to the proceedings is required by law. - One or more of the parties to the dispute shall submit the request for consensual resolution.

Dispute Resolution Procedures (---cont’d) If the CITC accepts the Dispute Resolution Request as a “Consensual Resolution”, then CITC shall play the role of a mediator between the parties to the dispute until they reach an agreement. Such an agreement shall be approved and notarized by the CITC. If the parties to the dispute fail to reach an agreement, CITC may use in such a case, the “Mandated Resolution” procedure.

Dispute Resolution Procedures (---cont’d) 2. Mandated Resolution: (a) CITC can use this method of dispute resolution in case of the following: Failure of the parties to reach an agreement. Failure of the applicant to meet one of Consensual Resolution application requirements. Failure of the parties in consultation with CITC to reach an agreement on Consensual Resolution approach and timetable. CITC refusal to accept Consensual Resolution under its sole discretion.

Dispute Resolution Procedures (---cont’d) 2. Mandated Resolution (---cont’d): (B) Mandated Resolution Procedures: Within fifteen (15) days after receipt of an application (Dispute Request), CITC shall set out the time within which the named respondent in the application may file an answer to the application and the time within which the applicant may file a reply to the answer.

Dispute Resolution Procedures (---cont’d) CITC shall establish, in each proceeding, the time limits for a person to submit a document to CITC. In establishing time limits, CITC shall take into account: the complexity of the information to be submitted. the ease with which the information can be obtained by the person required to submit it. A respondent to the application shall file its answer with CITC and the applicant in accordance with CITC decision on procedure. The defendant shall reply to all facts and issues set out in the application.

Dispute Resolution Procedures (---cont’d) If a defendant does not file an answer within the time defined by the CITC decision, CITC may make a decision on the application without further notice to the defendant When the reply is filed or the time for its filing has expired, no further documents may be submitted, except by CITC decision The CITC shall issue deliberate mandated decision

Appeals on CITC Decisions CITC Decisions on Interconnection disputes is binding on all parties The Applicant or the Respondent of a Dispute Resolution has the right to appeal The Appeal must be first made to the Minister of CIT The Minister may agree or disagree with the CITC Decision The Applicant or the Respondent has a further right to Appeal the Decision, to the Board of Grievance, within 60 days of the Minister’s Decision The Board of Grievance Decision will be binding on all parties

Conclusion CITC has the right to resolve disputes pursuant to its statutes. The scope of disputes that CITC covers, contains several types of disputes. The CITC uses Consensual and Mandated Resolution procedures as methods of resolving disputes. Procedures are available in choosing Consensual or Mandated Resolution. The process allows for Appeals to CITC Decisions

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