Reports of the Communications and Information Technology Commission in Saudi Arabia give clear indications for expansion of services in this sector. Land lines, for example, have increased to 4 million lines by the end of 2006, with an expansion rate of 16.5 lines per each 100 people (16.5%). But since 3 millions of those lines serve household purposes, a more commonly accepted formula for measuring expansion rates that compares the number of houses (or families) served by telephone lines to the total number of houses, indicate an expansion rate of 70% (70 telephone lines per each 100 houses or families).

The Mobile telephone sector has also witnessed steady development during the past two years, whether with respect to expansion, quality, or prices. Competition in the mobile telephone market has lead to availability of diverse offers and choices, which in its turn has lead to improved quality and lower prices. The number of participants, has consequently increased greatly to over 19.6 million participants (more than 81%) by the end of 2006, compared with only 2.5 million participants (12%) in 2001, with an average annual increase of 51%.

Development of Internet Services

Internet users have increased from about one million user in 2001 to about 4.7 million user by the end of 2006, with an expansion rate of about 19.6% and an annual average increase of 36%.

The broadband sector has also witnessed an annual increase of 85% during the last five years from 14 thousand in 2001 to about 220 thousand by the end of 2006, while last year alone has witnessed a leap of 240%.

But in spite of this great increase, the expansion rate is still very low (about 1%) compared with the international average, which is 5%, and the average in advanced countries, which is about 20%. Consequently, huge opportunities for development in the field of broadband are expected in Saudi Arabia in the coming few years, thus representing a challenge in this sector.