NairobiKenya 2005

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Nairobi-Kenya2005

• The Challenge of Universal Access

Communications Authority
UNIVERSAL SERVICE WORKSHOP
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Zambia_at_Glance
Population 12 million Area 752,614 sq
km Water Area11,890 sq km GDP 4bn Per capita
GDP 330

• Mining

Tourism
 
Visit Zambia 2005
the real africa
Major Exports Copper, Cobalt Political Situ
Peaceful country Neighbours 8 Countries
Per Capita GDP 1.4 annually Economic growth
4 annually
Telecommunications Fixed Lines
91,000 Mobile 460,000 Internet
Users 23,000 Optic Fibre 800km
Agriculture
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Chronology of recent developments
The Telecommunications Act of 1994 led to the
increase of private participation and significant
liberalization in some segments of the sector.

• Internet was introduced by ZamNEt

• IBA Act
• ZNBC Amendment Act

• Zamtel introduced cellular telephony using AMPS

• CopperNet began operations

• UUNet and Microlink started offering internet
  services

• Telecel replaced CDMA with GSM technology

• Zamtel launched its internet service

1995
1996
1997
1998
. . . 1994
1999
2000
2001
2002
2003
2005

• Mobile license awarded to Celtel

• Zamtel migrated to GSM technology

• PTC exclusive provider of telecom/postal
  services also regulated the sector

• Telecommunications Act Chapter 469
• Dissolution of PTC
• Zampost, postal issues
• Zamtel, telecom operations
• CA, regulatory functions
• Radio Communications Act of 1994
• CA administers radio
• frequency spectrum

• Telecel launched its cellular service using CDMA

Converged Licensing Revised Telco Act
PTC Post and Telecommunications
Corporation Zampost Zambia Postal Services
Corporation IBA Independent Broadcasting
Authority
Zamtel Zambia Telecommunications Corporation CA
Communications Authority ZNBC Zambia National
Broadcasting Corporation
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Current Status of Zambias telecommunications
sector
Overall teledensity -fixed and mobile- has
increased from 0.88 in 1998 to 2.94 lines in
2003. Basically, this growth is explained by the
increase of mobile subscribers.
The mobile subscribers base surpassed the number
of fixed subscribers in the year 2000. More than
350 telekiosks (telephone or Internet acces)
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Current status of Zambias telecommunications
sector
Urban rural disparity of fixed telephony is
typically high.

• 78 of fixed lines are in Lusaka and Copperbelt
  provinces which enclose important cities such as
  Lusaka and Ndola where 30 of the population is
  located and in a smaller level Livingstone

Northern
Luapula
North-Western
Copperbelt
Eastern
Central
Lusaka
Western
Fixed Teledensity
0 0,3 0,31 0,5 gt 0,5
Southern
Source CAZ
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Mobile Telephony -Network Coverage
Mobile network coverage is still restricted to
main urban areas.

• Even though there is wide space for network
  coverage expansion, mobile firms favour the
  increase of subscribers in already covered cities
  with higher ARPU without expanding their network
  capacity, reducing their services quality.

1/ Celtel has recently installed base stations
covering all provincial capitals.
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INFRASTRUCTURE
Zambia as a optic fibre routes
Zambia Neighbors
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INSTITUTIONAL STRUCTURE OF THE TELECOMUNICATIONS
SECTOR
Ministry of Communications and Transport
Policy
Communications Authority (CAZ)
Regulation
ISPs
International operation networks
Zambia Telecommunications Corporation Zamtel PST
N (100 Govt.)
Zamtel
Private Networks(16 operators)
Zamnet
Cellular
Coppernet
UUNET
Zamtel
Microlink
National long distance
Celtel
AfriConnect
Carrier of Carriers -CEC -ZESCO -Pronet Africa
Telecel
RealTime
Pronet Online
Local
Service provision
Customers for public Telecommunications Services
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Telecommunications Status of Level of Competition
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Zambia ICT Policy Process

• To be successful, Zambias ICT Policy has been
  developed in close coordination with other
  sectors and in alignment with other national
  development plans.
• 1998 IICD Roundtable discussion
• 2001 UNECA ICT Policy debates
• Poverty Reduction Strategy Paper (PRSP)
• Transitional National Development Plan (TNDP)

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13 Pillars of ICT Policy

• Human Resources
• Education
• Access, Media, Content Culture
• ICT as an Industry
• Telecommunications Infrastructure
• E-government
• E-commerce
• Agriculture
• Health
• Tourism, Environment Natural Resources
• Youth Gender
• Legal Regulatory Framework
• Security In The Information Age

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Draft ICT Policy

• Declares ICT as a priority sector

2 Attainment of universal access to ICT and
installing public facilities within 5 kms of
every rural community.
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Our Primary Regulatory Challenge

• How to bring the benefits of ICTs closer to all
  the Zambian people?

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Universal Access Policy Process

• Draws from National ICT Policy and Formulation
  Process 2003-5
• National and Provincial workshops conducted.
• Public discussions, seminars and meetings
• Public awareness on ZNBC Radio and print media.
• Collaboration with local, regional and
  international stakeholders
• Electronic communications and publicity through
  website etc
• Studies undertaken (last 6 months)
• Rural ICT demand Assessment study
• Fair competition and liberalisation of the
  International Gateway
• National Backbone Infrastructure
• Licensing and Interconnection Framework
• Review of the telecommunications Act

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UA Policy Strategy 2005

• Goal
• To facilitate the widespread penetration and
  utilisation of ICTs within the Zambian society at
  all levels in both the rural and urban areas.
• To provide for the establishment of a rural
  Telecommunications Development Fund (TDF) to be
  administered by the Regulator

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Universal Access Objectives

• Availability
• Public Accessibility
• Affordability
• ICT Training
• Local content
• Regulatory framework
• Financing Universal Access

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Summary Draft Targets
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Significant policy actions

• Promotion of competition and lowering of entry
  barriers (i.e. introducing license exemptions)
• Simplifying licensing for service providers and
  operators in rural areas, including access to
  frequency spectrum
• Encouragement of small-business ICT entrepreneurs
  in rural areas
• Establishment of fair and effective
  interconnection and tariff regimes that support
  the market entry and the introduction of new
  services in rural areas.

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Telecommunications Development Fund

• Mission
• to catalyse investment in rural and under-served
  urban areas to promote progress towards the
  realization of universal access
• Goals
• Contribute to national economic development and
  social well-being
• Promote services and technological innovation in
  the telecommunications sector
• Promote competition in telecommunication market
• Establish efficient, self-sustaining, market
  oriented businesses, which will continue to
  expand access to ICTs on their own initiative.

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Telecommunications Development Fund/2

• Management and Administration of TDF
• Establish a universal access unit in the
  Authority
• by a Committee established by the Board of the
  Authority
• a TDF administrator who shall manage the Fund
• Disbursement of Funds
• transparent and fair procedures for disbursement
  of all TDF funds,
• in response to public invitations
• non-commercial competitive grants or interest
  free loans
• specific procedures for designating areas that
  will qualify to benefit from the Fund
• evaluate competing proposals for purposes of
  determining eligibility to benefit from the Fund

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TDF Prioritization

• Key Priorities
• Expansion of the geographic limits of the
  existing network to all areas with reasonable
  demand for services.
• expansion of the network to remote or high cost
  areas as well as provide access for low income
  groups.
• Other priority areas will include
• Providing community access
• Providing support for economic development zones
  and small businesses (telecentres)
• Supporting public access and community service
  institutions

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Licensing Principles

• Access to Frequency take special account of
  rural operators in the allocation and assignment
• Adopt proactive mechanisms to lower entry
  barriers
• Simplify licensing to include a broad basket of
  value-added services under a single licence
• Entrepreneurship Encourage cooperative
  organisations and other local community-based
  operators to provide services in rural areas

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Financing the TDF

• Seed fund from CAZ resources
• Annual operating fees (5), telecommunications
  frequency license fees
• Direct contributions from all telecommunication
  services providers
• Designated fees (within the 5 for CAZ)
• To be specified in the new Act
• Government contribution
• A portion of the designated revenues paid
  annually to the Authority by licensed service
  providers (as of annual excess)

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Other Key Issues

• Special interconnection and tariff regimes for
  rural areas
• Period Review of Universal access targets
• Monitoring and Evaluation
• Annual Reporting and Accountability

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The Road Ahead

• Adoption of ICT Policy by Cabinet March 2005
• Submission of draft new Act 28 Feb 2005
• New law ready by July 2005
• Prepare Supporting Regulatory Legislation
• New Licensing regime 3rd Qrt-2005
• Soft launch to Jump start TDF in April - 2005

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Challenges

• Refer to Kenya presentation