Mobily says its been hit with SAR 552 mln fines by Saudi telecom regulator

Etihad Etisalat Co. (Mobily) said the Communications and Information Technology Commission (CITC) imposed last year several penalties on the telecom operator at a gross value of SAR 552 million.

In its financial statements for Q4-2014, Mobily said penalties were imposed for different reasons; such as the issuance of pre-paid SIMs, and the launch of promotions not approved by CITC.

The telecom operator took the CITC to court over the penalties. It also initiated an administrative action before the Board of Grievances; and filed 303 lawsuits to challenge the fines imposed on December 31.

An administrative court has to date issued 153 judgments in favor of Mobily on lifting SAR 273 million in penalties.

Some of the judgments have become final and effective on lifting a total of SAR 59 million in fines.

The operator last December received more claims from CITC. It made SAR 216 million provisions to settle some of the claims.