Digital divide : regulatory aspects

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Digital divide regulatory aspects

• Rym Belhaj
• ISETCom
• CERT ITU Workshop
• June 17-19, 2003

2
outline

• Telecom and Internet landscape in the MENA region
• Reforms in MENA
• Challenges for an effective regulation

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People On-line

• World Total             605.60 million
• Africa                  6.31 million
• Asia/Pacific            187.24 million
• Europe            190.91 million
• Middle East             5.12 million
• Canada USA      182.67 million
• Latin America     33.35 million

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Fixed line and Internet penetration
Source Analysys
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Internet users and English-Speaking computer
Users in the MENA countries
Source Pyramid Research
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Internet Users in MENA
Source Pyramid Research
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Leased Line Market is hold back
Number of two-way national and international
leased lines for the exclusive use of one
subscriber
Percentage of countries with competition in the
leased line market, by region, 2000
Source Analysys
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Reforms in MENA Countries (1)

• MENA countries have made good progress
• Restructuring the incumbent public operator
• Introduction of competition in some market
  segment (Mainly Mobile)
• Establishing regulatory authorities
• Challenge Have a strong, credible and active
  telecom regulator

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Reforms in MENA Countries (2)
Algeria Egypt Jordan Morocco UAE
Independent regulator (date) Yes (2000) Yes (1998) Yes (2001) Yes (1997) No
Liberalization status
Fixed telephony No No No No No
Leased lines No No No No No
Data (1) No No Yes Yes No
ISP (2) Yes Yes Yes Yes No
Fixed satellite services No No No No No
VSAT No Yes No Yes No
Number of mobile operators 2 2 2 2(3) 1
Number of ISPs 4 38 8 1020 1

1. Provision of data services on top of
   infrastructure (mainly leased lines) supplied by
   incumbent operators, e.g. IP VPN
2. ISPs in national markets. Note that the
   regulatory treatment for international service
   provisioning varies by country
3. Mobile operators have the right to operate their
   own international gateway

Source Analysys,
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Key Challenge Facing MENA Regulators

• Clear mandate and legal foundation
• Financial autonomy and effective use of the
  available resources
• Transparent regulatory processes
• Build HR competencies to properly regulate

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Tools for an active Regulation

• Industry structure/ Licensing
• Networks and service opened for competition
• Licensing procedures and conditions
• Numpber of Licensees
• Pricing
• Price Caps on price adjustment
• Tariff rebalancing
• Interconnection
• Rights and obligation to interconnect
• Process and power to arbitrate disputesintervene
• Collocation and infrastructure sharing

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Tools for an active Regulation (Followed)

• Customer Access
• Numbering Plan
• Number portability
• Universal Access
• Definition and scope
• Cost shared across industry and operators
  obligations
• Funding mechanism
• Performance Levels
• Service quality targets
• Network / service / penetration targets