The Council of Ministers this week issued the following decision regarding telecommunications:
The telecommunication utility (the telegraph and telephone) will be transferred to a joint-stock public company within six months, effective the date of issue of the decision. The new company, to be called the Saudi Telecommunication Company (STC), will be run on a commercial basis. It will include almost all the assets, appliances and equipment together with the technical and administrative bodies of the telegraph and telephone sector including the fixed telephone, data transmission system, pager, mobile telephone, public communication and general network.
The company will obtain all its deserves including the revenues of its services regularly and in due course from all its subscribers without exception.
All the state’s rights, properties and domestic and international investments including what is related to all kinds of telecommunications will be transferred to this company. All the financial and contractual obligations against the communications-related sector of the state will be transferred to the company.
The Ministry of PTT undertakes the supervision of the establishment of the company to perform the communication services according to its basic act and related regulations until the issuance and reinforcement of the new telecommunication act in the Kingdom which will organize and determine the mechanisms of control and supervision of the telecommunication services sector performance.
The Ministerial Privatization Committee should finalize the basic bill draft of the company and its capital.