ICT Policies and Regulations in Africa: Implications to NRENs

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ICT Policies and Regulations in Africa
Implications to NRENs

• Lishan Adam

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Outline

• Progress in regulations and ICT policies
• Qualitative view of ICT policies and regulations
• Regional dimensions of regulation
• Challenges and opportunities
• Emerging policy and regulatory issues within the
  context of NREN
• Implications

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Progress

• Reform in the telecom sector in all countries and
  improved private investment
• Tele-density from 1 in 1990 to above 10 in
  2005 (including mobile)
• Mobile footprint of about 30
• Internet usage, slow but improved (about 2-3)

• RECs (ECOWAS, SADC, COMESA), NEPAD, ADB have
  made in regional networks and broadband top
  priority
• Independent IXPs in about nine countries
• Market entry by alternative communication service
  providers (Gas, electricity, railway)

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Less than 5 have moved towards full competition
in basic services Over 35 countries have yet to
introduce competition in fixed segment
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Reform agenda incompletePublic and private
sector investment is required for rapid diffusion
of NRENsGood regulation is a must for lowering
cost and bring about rapid investment
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Qualitative view regulatory situation in Africa

• Using a key benchmarks like
• legal status laws creating the regulatory body
• Independence - budget, decision, legitimacy
• Competencies tariff setting, licensing,
  resource allocation, dispute settlement,
  interconnection, quality of service, consumer
  protection, facilitating competition and market
  entry
• Internal organization staffing, management and
  relationship with the board
• Regulatory governance participation of CSO,
  public
• Enforcement enforcement power, interaction with
  judiciary, arbitration bodies
• Different pace of reform due to institutional and
  political factors
• Three phases in regulation
• Phase I regulatory bodies are non-existent or
  ineffective
• Phase II regulatory bodies exist, do assume
  roles, but weak
• Phase III regulatory bodies assume full roles

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State owned Incumbent operators
Monopoly of International Segment
Cameroon Burkina Faso Gambia Benin Chad
Kenya Zambia Eritrea Swaziland Namibia
Ethiopia Rwanda Comoros
Congo DRC Angola Mozambique
Nigeria Zimbabwe Botswana Gabon Malawi Burundi
Sierra Leone Liberia Mali Cong
o Tunisia Algeria Togo
Cote divoire Senegal South Africa Niger Maurit
ania CAR Sao Tome Equatorial
Guinea Sudan Cape Verde Guinea
Bissau Mauritius Lesotho
Others Tanzania Morocco Uganda Egypt
Somalia Guinea
No regulatory Authority
Mobile Monopoly
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Phase I

• Regulatory agencies are non-established (sector
  ministry in charge) or not functional e.g
  Sierra Leone, Liberia, Eritrea,Swaziland
• One to five staff members
• Watching the behaviour of monopoly operator
• Non-existent enforcement and dispute resolution
• No public participation
• Limited competencies of staff and inefficient
  institution
• Unable to determine market behaviour

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Phase II

• Countries have created sector regulators and
  licensed sector participants (Uganda, Kenya,
  South Africa, etc.)
• Laws are in place
• Some independence in allocation of resources,
  government sets fees and approve allocation
• Some power in dispute resolution and enforcement
  via fine
• A few core competencies
• Decisions with approval of minister
• Assume certain roles in market development

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Phase III

• Barely a few regulatory institutions
• Meet the necessary independence and self
  governance criteria
• Promote open access - (technology neutral,
  competition in all layers, opportunities for
  small players to connect)
• All the necessary competencies (e.g tariff
  setting, licensing, resource allocation, dispute
  settlement, interconnection, quality of service,
  consumer protection, facilitating competition and
  market entry)
• assumed an active role in enforcement, promoting
  competition, open access in all layers (local,
  national regional, service, transmission,
  physical)and general market development
• Clear from entrenched personal and political
  interest (focus on long term benefits than short
  term benefits)
• Flexible and technology neutral regulation
• Sophisticated information systems (transparency)

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Information Management as a key indicator on
progress

• Organization do not pay attention to the appeals
  their content, content management is not a core
  business http//www.ncc.org.na/
• Information management is often event driven -
  http//www.incm.gov.mz/
• New tools are not incorporated- Web sites remain
  static - http//www.potraz.gov.zw/,
• Some feel that basic information could be
  sufficient - http//www.virtualseychelles.sc/gover
  /mitc_telecom.htm
• Outsourcing core function as a result no up to
  date sites
• Outdated web sites

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PHASE III
Mauritius, Morocco, Tanzania, Botswana, South
Africa Uganda Kenya Nigeria Senegal Cote dIvoire
Ghana Mozambique Mauritania Zambia
Zimbabwe Lesotho Namibia Seychelles Rwanda Malawi
Cameroon Mali Sudan Congo Togo Burkina Faso
PHASE II
Burundi Cameroon, Niger, Guinea-Bissau DRC
Ethiopia Comoros Benin Chad Togo Cape Verde
Gabon Gambia Swaziland, Sao Tome Principe
Equatorial Guineas Eritrea, Sierra Leone
Liberia Central African Republic
PHASE I
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Consequences of weakness in regulation

• Slowed transaction and investment due to negative
  sentiments
• Excessive cost of bandwidth
• Backbone networks over stretched
• Network concentration in urban area
• Limited diffusion of wireless and innovative
  technologies

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Challenges

• Different pace of reform due to these
  institutional and political factors
• Regulation were not up to date to reflect
  technological changes, rapidly changing
  circumstances
• outdated Telecommunication ACT over 7 years
  makes it difficult to regulate
• Information asymmetry and low level of competence
  to regulate/not regulate the dynamic sector
• Competing institutions (IT, regulator, spectrum
  management, broadcast, consumer affairs, fair
  trade, parent ministry)
• New elements of monopoly and resistance (mobile
  services)

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In imperfect governance situation regulation more
about mediating vested interest and political
networks

• Natural tendencies to defend status quo
• Governments trying to (open the sector and
  protect the incumbent)
• Influence of political and individual agendas
• Personality of regulators, background,
  relationship to the incumbent and senior policy
  makers
• Role of influential sector participants (Board,
  director of operators)
• Ignorance and fear of consequences of changes or
  introducing competition

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National ICT Policies

• Many countries developed e-strategies between
  1999-2003 at the height of enthusiasm about ICTs
• Were instrumental in raising awareness,
  mobilization of resource, conceptual shift to
  ICT4D and digital divide now to wider information
  society issues

Decisive changes to policies and implementation
of e-strategies has been difficult
Detached from core reform agenda Comprehensive vs
focussed ICT experts vs development
experts Distribution impact on sectors vs ICT
investment Technology push vs reality Internal vs
external Commitment vs rhetoric Shopping list vs
realistic implement able projects Consensus and
participatory vs decree Organic vs driven by
institutions New institutions vs competing
implementing agencies PRSP/MDG focus vs host of
lists under the sun
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Regional Dimensions

• Smaller traffic, large number of countries
• Regional strategies
• Policy harmonization
• Cross-border connectivity
• Rationalization of initiatives
• Investment opportunities (PPP) mostly studies
  DFID, World Bank, e-Africa commission
• Enabling environment Interconnection (world
  Bank)

ARICEA
EARPTO
e-Africa Commission
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Opportunities for NREN

• Phasing out of exclusivity period (Senegal,
  Uganda, South Africa, Kenya, Mali, Ghana)
• Introduction of converged licensing regime
  (post-exclusivity) Kenya, Uganda, Mauritius,
  South Africa Senegal, Tanzania, these announced
  broad competition
• IP driven market dynamics
• Depriving incumbents of lucrative revenue
• low volume/high margin ? High volume low margin
• Digital divide/ information society initiatives
• WSIS (ITU, ADB)
• Commission for Africa
• NEPAD/AU
• RECs (ECOWAS, ECAAS, COMESA, SADC, EAC, IOC,
• National (e-strategies, ICT4D policies)
• Fastest growing communications economy

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Implications to NREN

• Regulations adapted to NREN take time (patience)
• No homogeneous model or logic in regulation
  respond to specific infrastructure, demographic
  and organizational capacities (institutional,
  national NREN, sub-regional, continental)
• Stronger knowledge networks between regulators,
  policy makers, members of NREN for joint
  innovations ( focus on local innovations)
• NREN members could capitalize on their position
  in the society (VCs, eminent academics) to
  negotiate changes in policies (human relations)
• Local policies research and advocacy informed by
  global best practices (bring in global best
  practice)

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Implications to NREN

• Involvement of middle level managers (technocrats
  drafting policies and regulations)
• NREN promotion within the contexts of
• E-strategies e-governance
• Development, MDGs and government e-education,
  national ST policy
• Regional agenda (Strategic policy advocacy
  speak the language)
• Policy and advocacy strategy taking incentives,
  vested interests, linguistic, cultural and
  regional factors into account (association with
  local actors)
• Smaller better EARPTO

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Implications to NREN

• Bilateral, trilateral or quadrilateral regional
  aggregations could be used as building block for
  regional regulations federated RE networks
  useful than regional
• Organic development start from where it works
  (SARUA)
• Regional harmonization through regional
  regulatory associations (engage NRAs)
• Build interface with regulatory associations
  (participation in AGM, OGM)
• Awareness tutorials
• Model NREN and regulatory implications
  cookbook(small players, e-rates, Dark fiber,
  public good)
• Use of regional organizations (AAU, East African
  Universities Association, Association of
  Francophone universities.)
• Rationalization of regional NREN projects and
  initiatives (avoid confusions, policy makers do
  hate confusion and unnecessary details)
• It is about policyand commitment of governments
• AU, NEPAD, RECs (ECOWAS, SADC, COMESA) agenda
• Policy advocacy requires same level of commitment
  It is political, institutional than technical

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Thank you