Global: Kuwait’s CITRA Unveils Draft Regulation to Govern Telecom Service Distributors

KUWAIT CITY — The Communications and Information Technology Regulatory Authority (CITRA) has initiated a significant regulatory overhaul targeting the operations of mobile and virtual telecommunications service distributorsin Kuwait, as part of broader efforts to enhance sector governance, transparency, and service quality.

In a recent announcement, CITRA introduced a draft policy titled “Regulations for Mobile and Virtual Telecommunications Services Distributors”, now open to public and stakeholder consultation. The move aligns with the Authority’s strategy to foster inclusive policy-making, drive digital transformation, and create a more competitive and efficient telecom ecosystem.

“CITRA remains committed to engaging stakeholders to ensure that regulatory developments are well-informed, balanced, and investor-friendly,” the Authority stated.

Key Licensing Provisions

The draft regulation lays out stringent criteria for entities seeking to operate as licensed telecom service distributors. Key conditions include:

• Holding a valid commercial license (LLC or joint-stock company).

• A preliminary agreement with an existing licensed telecom operator.

• A physical footprint of at least 10 operational branches within Kuwait.

• Submission of a comprehensive business and technical operations plan.

• Compliance with national workforce quotas.

• An annual non-refundable license fee of KWD 5,000 and an unconditional bank guarantee of the same amount.

• License validity for one year, renewable subject to timely application.

CITRA has committed to processing completed applications within 21 business days, after which non-response will be deemed a rejection. Upon approval, the distributor must sign a finalized license contract with the Authority.

Operator Responsibilities Under the Draft

Licensed mobile and virtual telecom providers will be required to:

• Partner exclusively with CITRA-authorized distributors.

• Integrate distributor systems with their transaction platforms.

• Submit periodic compliance reports and financial audits.

• Ensure distributor staff are trained and technically competent.

• Enforce post-audit service activation procedures linked to verified end users.

• Disclose commission structures and report breaches of contract or regulation.

Obligations for Authorized Distributors

Distributors licensed under the proposed regulation must:

• Refrain from subcontracting telecom services.

• Notify CITRA in advance of any agreement initiation or renewal.

• Provide staff with official ID cards and system-traceable access.

• Implement video surveillance at all sales locations.

• Establish cybersecurity protocols and report breaches.

• Adhere to national labor requirements and demonstrate employee training compliance.

General Governance and Oversight Measures

The regulation also incorporates comprehensive governance provisions applicable to both distributors and telecom providers, including:

• Joint accountability for compliance with CITRA regulations and national laws.

• Mandatory integration with CITRA-monitored data systems.

• Regulatory oversight of all contractual changes, renewals, or terminations.

• Authority-led allocation of telecom products and services.

• Submission of requested operational data and adherence to pricing regulations.

CITRA emphasized that this initiative reflects its role as a transparent, professional regulator working to strengthen market confidence, elevate service standards, and attract sustainable investment in Kuwait’s telecommunications sector.

The Authority is currently welcoming feedback from stakeholders and the general public as part of its consultation process, prior to final adoption of the regulation.