INTERCONNECTION LEGAL AND REGULATORY ISSUES

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INTERCONNECTION LEGAL AND REGULATORY ISSUES

Steven Andzenge DIRECTOR, LEGAL
SERVICES NIGERIAN COMMUNICATIONS COMMISSION AT
THE WORKSHOP ON LEGAL ISSUES FOR JUDGES AND
LEGISLATORS NOV. 17, 2003
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SUMMARY

• Definition
• Interconnection Policy
• Distinction from other contractual relationship
• Interconnection Principles
• Obligations of Commission
• Dispute Resolution
• Conclusion

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INTERCONNECTION - DEFINITION

• The physical and logical linking of
  telecommunications networks used by the same or a
  different telecommunications operator in order to
  allow the users of one telecommunications
  operator to communicate with the users of the
  same or another telecommunications operator to
  access services provided by the parties involved
  or other parties who have access to the
  telecommunications network.

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DEFINITION CONTD

• OR
• The physical and logical linking of public
  electronic communications networks used by the
  same or a different undertaking in order to allow
  the users of one undertaking to communicate with
  the users of the same or another undertaking, or
  to access services provided by another
  undertaking. Services may be provided by the
  parties involved or other parties who have access
  to the network.

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INTERCONNECTION POLICY

• Users of different networks must communicate
  or access each
• other
• Dominant or incumbent operators should not
  frustrate newly licenced operators
• ADVANTAGES
• Promoting competition
• Increased and efficient use of telecommunications
  facilities
• End to end seamless connectivity of networks
• Promoting common standards and practices
• Facilitating sufficient capacity and service
  quality
• Protecting non-discriminatory access

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OBLIGATION TO INTERCONNECT

• Legislative Enactment
• Section 96 Nigerian Communications Act 2003
• If a network services or facilities provider
  receives a request for interconnection from
  another licensee, then the service or facilities
  provider shall have an obligation to interconnect
  its communications system with the other
  licensees network at technically feasible
  locations.

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OBLIGATION TO INTERCONNECT CONTD

• Subsidiary Legislation
• Section 1(1) Telecommunications Networks
  Interconnection Regulations
• A licensed telecommunications operator shall
  have the right and, when requested by another
  licensed telecommunications operator, an
  obligation to negotiate interconnection with each
  other for the purpose of providing services in
  order to ensure the provision and
  interoperability of services throughout the
  Federal Republic of Nigeria, subject to
  compliance with the terms and conditions on
  interconnection, the provisions of the act, these
  Regulations and the Guidelines on Interconnection
  of Telecommunications Networks.

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OBLIGATION TO INTERCONNECT CONTD

• Licence Condition
• Interconnection is a mandatory condition in
  licences issued to every major operator by
  Nigerian Communications Commission NCC, or the
  Commission

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LIMITATIONS

• Notwithstanding obligation to interconnect, NCC
  may by its determination require a party not to
  interconnect, if
• Interconnect Agreement is prohibited by law
• Licence issued to an operator does not authorise
  the services for which interconnection is
  requested
• Requested interconnection is rendered impossible
  as a result of technical specifications
• Interconnection would endanger life or safety or
  cause harm to network services or may compromise
  quality of service

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INTERCONNECTION PRINCIPLES

• An Interconnection Agreement must be in
  writing and conform with
• The principles of neutrality, transparency,
  non-discrimination, fair competition, universal
  coverage, access to information, equality of
  access and equal terms and conditions
• In addition the agreement must
• - Provide for the scope and specification of
• interconnection
• - Specify interconnection charges
• - Allow access to all ancillary/supplement
  ary
• services and use of premises or
  land
• needed to support Interconnection

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INTERCONNECTION PRINCIPLES CONTD

• Maintenance of end-to-end quality service
  and other service levels
• Be cost oriented
• Provide for billing and settlement procedures

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DISTINCTION FROM OTHER CONTRACTUAL RELATIONSHIPS

• Right of choice of interconnect provider
• Freedom of the requesting and the requested party
  to negotiate themselves.
• Notwithstanding Right of choice and freedom
  to negotiate
• Commission can legally intervene during
  negotiations and make binding rulings at its
  instance or instance of either or both parties

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DISTINCTION FROM OTHER CONTRACTUAL RELATIONSHIPS
CONTD

• If Commission determines agreement or any
  provision thereof is inconsistent with Act, or
  its subsidiary legislation
• In event of failure of consensus between the
  parties on specific issues or a delay in reaching
  such consensus
• If Commission determines it is in the public
  interest for it to so intervene.

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OBLIGATIONS OF COMMISSION

• All Interconnection Agreements to be filed with
  Commission within 30 days
• Commission reviews to ensure consistency with
  Act, Regulations and Guidelines
• To provide interconnection regulations for the
  telecom industry
• Ensure a high degree of legal certainty over
  Interconnection matters- Ex ante Guidelines
• Ensure transparency, accountability, fairness and
  timeliness in reaching regulatory decisions on
  interconnection matters.

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OBLIGATIONS OF COMMISSION CONTD

• Use benchmarks and apply International best
  practices.
• Impose requirement of publication of RIO on
  dominant operator
• Dominant operator generally subjected to stricter
  regulation
• Provide recourse for an aggrieved party
• To enforce compliance with competition laws and
  regulations in the Nigerian Communications market

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DISPUTE RESOLUTION

• By international standard and practice,
  Interconnection Dispute resolved by the regulator
• Interconnection Specialized involving
  Legal, commercial Cost Methodology and
  technical issues and the regulator best equipped
  to handle.
• Enabling Act and Regulations provides for
  resolution of Interconnection Disputes by the
  Commission
• The regulatory body is separate from, and not
  accountable to, any supplier of basic
  telecommunications services. The decisions of
  and the procedures used by regulators shall be
  impartial with respect to all market
  participants.
• WTO Regulation Reference Paper

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DUE PROCESS REQUIREMENT

• Dispute to be resolved taking into consideration
  interest of both parties
• Consider interest of users and entrepreneurial
  freedom of the parties
• In a timely manner
• Due process to be followed

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DUE PROCESS REQUIREMENT CONTD

• Decision must be given within 6 months
• Publication of decision
• Reasons for the decision

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JUDICIAL REVIEW

• Parties are at liberty to seek judicial review
  of the Commissions decision at the Federal High
  Court, after exhausting all regulatory processes.
• Interconnection and network access very essential
  
• Commissions decision remains valid and binding
  until a contrary decision is given by the Federal
  High Court.
• To ensure that networks remain interconnected at
  all times, parties can not disconnect or
  discontinue interconnection without approval of
  the Commission.

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INTERCONNECT DISPUTE IN NIGERIA

• By licensing of various operators, NCC has
  intervened in some few interconnection issues
• NCCs intervention between NITEL and other PTOs
• Between NITEL and newly licensed mobile operators
• Between major mobile operators and other PTOs
• M-tel currently interconnect with mobile
  operators through NITEL fixed network as the
  M-tel billing system incapable of capturing all
  call records.
• Problem to be remedied end December 2003

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CONCLUSION

• Interconnection necessary to ensure access
• Obligatory on parties to interconnect
• Parties can freely negotiate interconnection
  terms and conditions in accordance with standard
  guidelines
• Interconnection involves legal, commercial and
  technical issues
• Commission to ensure conformity with the Act,
  Regulation and Guidelines
• Commission to resolve interconnection dispute

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• THANK YOU