Increasing Broadband Internet Penetration
In the OIC Member Countries
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V.2. SAUDI ARABIAThe following case study assesses the state of broadband services in Saudi Arabia. The country
is one of the most advanced in terms of broadband network deployment and usage among the
OIC members. As of 20015, approximately 70% of the Saudi population accesses the Internet
in a regular fashion61, while smartphone penetration (80%) and social media usage62 remain
among the highest in the world. From an infrastructure standpoint, 30% of the country is
covered by last-mile fiber optic networks.
Nevertheless, despite the progress achieved so far, the Saudi government is seeking to
accelerate its evolution towards advanced digitization, aiming to be in the top 20 countries in
the world by 2030. Consequently, as part of its Vision 2030, the government has launched an
ambitious initiative aimed at accelerating broadband deployment and infrastructure
investment in the country.
V.2.1. Demand for Broadband Services
Fixed and mobile broadband usage ratesThe adoption of fixed broadband services in Saudi Arabia begun in 2001 when the first 14,000
lines were deployed by the Saudi Telecom Company (STC). After a slow ramp-up through 2008
(reaching a penetration rate of 26%), adoption started increasing rapidly in 2009, achieving an
exponential growth after 2011(see table 55).
Table 55: Saudi Arabia: Fixed broadband lines (2003-2015)
2003 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 Lines (‘000) 46 68 623 1,048 1,438 1,712 1,951 2,540 2,920 3,032 3,590
Percent household 1.24 1.74 15.85 26.07 35.03 40.87 40.00 42.00 48.00 56.00 65.00Sources: International Telecommunications Union; Telecom Advisory Services analysisAs table 55 indicates, by the end of 2015 fixed broadband penetration reached 65 % of
households63. This penetration is among the highest within the OIC member group (see table
56).
Table 56: Saudi Arabia versus OIC Member Countries: Fixed broadband household
penetration (2015)
Country/Group Household Penetration (%) Saudi Arabia 65.00
Arab OIC members 25.59
Asian OIC members 16.96
African OIC members 0.86
Average OIC 14.95
Sources: International Telecommunications Union; Telecom Advisory Services analysis
61 Source: Communication and Information Technology Commission (CITC).
62 61% of Saudis spend more than 2 hrs. per day on social networking sites. All these statistics sourced from Google
Consumer Barometer 2016, except for Internet usage, which is sourced from the International Telecommunications Union.
63 As of 2Q2016, the CITC reports that the number of fixed lines decreased to 3,060,000 as a result of fixed mobile
substitution.