ictQATAR to issue individual VSAT licenses through a competitive process

ictQATAR's decision followed a public consultation process that was conducted earlier in 2009 on its intentions to license new VSAT providers in Qatar and a revision of all responses to the consultation. The purpose for licensing VSAT providers at this phase of liberalization of the telecommunications sector is to enable opportunities for investment in VSAT in Qatar to address a high demand for VSAT services from some of the country's key industries.

VSAT enables communications links between entities via satellites, and is useful for offshore oil platforms to communicate with on-shore offices. It is also useful for communication links between company sites such as offices, equipment and facilities in other sectors (e.g., financial institutions).

The licenses will authorize the operating of a VSAT network and the provision of services to Closed User Groups ("CUG") only within Qatar, and directly between Qatar-based entities and non-Qatar-based entities providing they are within the same CUG.

"Qatar wants to attract the best VSAT service providers to address demand in the market and support key sectors vital to the country's economy. We have listened to the needs of companies and received much interest from industry stakeholders, and have created a means for licensing to meet demand and facilitate competition. By initially limiting the number of licensees, we have facilitated an opportunity for new operators to establish a solid customer-base."

said William Fagan, Executive Director of ictQATAR's Regulatory Authority.

The licenses will be issued through a 'beauty contest' process. This process is expected to commence in or around September 2009. The process will start with a pre-qualification phase, with those who qualify being eligible to compete for a license.

Participation in the licensing process will be open to all interested VSAT providers, without restriction of nationality and without a requirement to enter into a partnership or consortium. Any such decision to do so remains at the full discretion of interested parties.

Interested parties may refer to ictQATAR's VSAT consultation document which is available online at www.ictqatar.qa for their information only, as the consultation period is now closed. ictQATAR will also publish online all of the responses it received to the consultation, as well as its own review of the responses and its decisions in a comprehensive response document.

ictQATAR will publicly announce when the competitive licensing process for Individual VSAT Licenses will commence, and invite interested parties to pre-qualify. Full details of participation requirements will be published at that time.