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ITU - Arab Regional Office KADI@itu.int Page - 1 / 28 GLOBAL TRENDS IN GLOBAL TRENDS IN REGULATION REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office www.itu.int www.ituarabic.org 1 st REGULATORY MEETING FOR THE ARAB REGION Algiers (Algeria), 19 – 21 April 2003

ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

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Page 1: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 1 / 28

GLOBAL TRENDS IN GLOBAL TRENDS IN REGULATIONREGULATION

Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

www.itu.int www.ituarabic.org

1st REGULATORY MEETINGFOR THE ARAB REGION

Algiers (Algeria), 19 – 21 April 2003

Page 2: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 2 / 28

Topics

Telecom Sector Reform

Trends & Regional Benchmarking

Arab Reform Scoreboard

Regional Regulatory Associations

ITU/BDT RRU

Conclusion

Page 3: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 3 / 28

Telecom Sector ReformTelecom Sector ReformGetting the recipe rightGetting the recipe right

Three essential ingredients:

Competition

Private sector participation

Effective regulation

Page 4: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 4 / 28

Telecom Reform, WHY?Telecom Reform, WHY?

Liberalized Markets grow faster, innovate, and serve customers better and cheaper

Attract private capital and foreign investment Mobile and Internet services fast Growth --

Competition is the stimulus

Investor confidence linked to an effective, fair & transparent regulatory framework

Globalization, Growth of international trade in ICT services, and WTO Agreements

Page 5: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 5 / 28

More telecom RegulatorsMore telecom Regulators

1626 30 33

4255

7485

93104

114122

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2003

Source: ITU World Telecommunication Regulatory Database

Number of Countries with separate telecom regulators

Page 6: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 6 / 28

Regulators by Region -Regulators by Region -How do we compare?How do we compare?

37%

77%

71%

46%

79%

Asia-Pacific

Arab States

Africa

Europe

Americas

Percentage of Countries With National Regulatory

Source: ITU World Telecommunication Regulatory Database

Page 7: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 7 / 28

Competition – the Global SceneCompetition – the Global Scene

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Basicservices

Leasedlines

WLL Cellular Cable TV VSAT ISPs

Monopoly Competition% of countries

Percentage of Countries with Competition for Selected Services, 2001

Source: ITU World Telecommunication Regulatory Database

Page 8: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 8 / 28

Competition - Basic ServicesCompetition - Basic Services

11%

60%

46%44%40% 42%

0%

20%

40%

60%

80%

100%

Af r i ca Amer icas Asia-

Pacifi c

Arab

States

Eur ope Wor ld

Basic Services by Region, 2002

Source: ITU World Telecom. Regulatory Database

% of countries

Page 9: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 9 / 28

Competition - Basic ServicesCompetition - Basic Services

0%

20%

40%

60%

80%

Local Long distance International

Monopoly Competition

Basic Services by Type, World 2002

Source: ITU World Telecommunication Regulatory Database

% of countries

Page 10: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 10 / 28

Competition in Mobile:Competition in Mobile:Arab States lag behindArab States lag behind

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Africa Americas Asia-Pacif ic

ArabStates

Europe

Monopoly Competition

Cellular mobile services, 2002

Source: ITU World Telecommunication Regulatory Database

% of countries

Page 11: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 11 / 28

Competition in ISPCompetition in ISP

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Africa Americas Asia-Pacific

ArabStates

Europe World

Monopoly Competition

Source: ITU World Telecommunication Regulatory Database

Internet services, 2002 % of

Countries

Page 12: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 12 / 28

Arab Reform Scoreboard 1/3Arab Reform Scoreboard 1/3

Separate Regulator

Corpo-ratized

Privatizedduopoly or Competition

Algeria 2001 2001 No Plans mobile

Bahrain 2002 Yes Partial 1981

Comoros No 1989 Plan 2003?

Djibouti No 1957 Plan mobile

Egypt 1998 1998 Planm, Paging, GMPCS, ISP

Iraq No No No Plans

Jordan 1995 Yes Partial 2000data, mobile, ISP,Paging, GMPCS

Kuwait No No Planmobile, Data, VSAT, ISP

Page 13: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 13 / 28

Arab Reform Scoreboard 2/3Arab Reform Scoreboard 2/3

Separate Regulator

Corpo-ritized

Privatizedduopoly or Competition

Lebanon No No Plan Data, mobile, ISP

Libya No No No plans

Mauritania 1999 Yes54% Maroc Tel. 2001

all ex. Leased lines

Morocco 1997 199835% Vivendi 2000

data, mobile, Paging, GMPCS, ISP

Oman 2002 No No plans

Palestine No 1996 No plans Most Services

Qatar No Yes Partial 1998

Saudi Ara. 2001 1998 Partial 2003 ISP

Page 14: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 14 / 28

Arab Reform Scoreboard 3/3Arab Reform Scoreboard 3/3

SeparateRegltr.

Corpo-ratized

Privatizedduopoly or Competition

Somalia No Yes Fully All Services

Sudan 1996 1993Partial 1994

all ex. Data & mobile

Syria No Yes No Plans mobile

Tunisia 2001 1995 Plan 2003? mobile, Paging

UAE No Yes Partial GMPCS

Yemen No 1982 No Plans Mobile, GMPCS, isp

Total 10 171 full

privat.8 partial 6 plan to priv.

% 46% 77% 5% 36% 27%

Page 15: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 15 / 28

Regional Regulatory Regional Regulatory Associations WorldwideAssociations Worldwide

AFRICA: 1- ARICEA 2- TRASA3- WATRA

ASIA-PACIFIC: ATRC

AMERICAS: 1- OCUR2- REGULATEL

EUROPE: - ERG

Page 16: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 16 / 28

TRASA’s Vision:TRASA’s Vision:

« To be a model regulatory association, through the design and implementation of harmonised regulations and policies, to achieve universal service and sustainable communications development in an investor friendly environment »

Page 17: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 17 / 28

ARICEA’s Objectives:ARICEA’s Objectives:"(a) Exchange ideas, views and experiences among members on all aspects relating to facilitating and regulating the development and application of ICTs;

(b) Promote the sustainable development and application of efficient, adequate and cost-effective ICT networks and services in the sub-region;

(c) Coordinate cross-border regulatory issues on ICTs in the sub-region;

(d) Contribute to the achievement of sub-regional and regional integration;

(e) Promote the maximisation of the utilisation of scarce resources in the ICTs sector.”

Page 18: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 18 / 28

ITU BDT Regulatory ITU BDT Regulatory Reform Unit (RRU)Reform Unit (RRU)

Publications & case studies on key issues

Regulatory Models

International & Regional Regulatory Forums

ITU World Telecom. Regulatory Database

Online library and resource center

The Global Regulators’ Exchange: G-REX

Capacity building for regulators through Centres of Excellence

Page 19: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 19 / 28

Reports: Trends in Reports: Trends in Telecom ReformTelecom Reform

20002000//20012001InterconnectionInterconnection

RegulationRegulation

1998 1998 General General TrendsTrends

19991999Convergence & Convergence &

RegulationRegulation

20022002EffectiveEffective

RegulationRegulation

Page 20: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 20 / 28

Trends in Telecom. Trends in Telecom. ReformReform

2003: Promoting Universal access to 2003: Promoting Universal access to ICTs: Practical tools for regulatorsICTs: Practical tools for regulators

Universal Access/Service Overview

Role of Sector Reform

Procedures to establish a Universal Service Fund, Role of Minimum Subsidy Auction, Consumer tariffs and Interconnection Rate

Public Access, Telecentres

Entrepreneurial Solutions & Role of Regulator

Page 21: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

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Narrowing the Digital Narrowing the Digital Divide Through:Divide Through:

• Regulatory ReformRegulatory Reform

• Incentive RegulationIncentive Regulation

• New TechnologyNew Technology

• Public Access to ICTsPublic Access to ICTs

Page 22: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 22 / 28

The Global Regulators’The Global Regulators’ Exchange G-REXExchange G-REX

to exchange information and experiencesto exchange information and experiencesthrough Conferences and the Regulators’ Hotlinethrough Conferences and the Regulators’ Hotline

Online forum forOnline forum for

Regulators &Regulators &

Policy makersPolicy makers

Page 23: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 23 / 28

G-REXG-REX CONFERENCES CONFERENCES AND SPECIAL STUDY AND SPECIAL STUDY

G-REX ConferencesVirtual WiFi

ConferenceInterconnection

Dispute Settlement Conf.

Licensing Conf.

Special Study Dispute

SettlementAnd ADR

Page 24: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 24 / 28

Global Symposium Global Symposium for Regulatorsfor Regulators

Geneva, 8-9 Dec. 2003Geneva, 8-9 Dec. 2003Practical tools regulators can use to increase universal access to ICTs:

• Day 1 : Private Sector/Regulator Sessions

• Day 2 : Regulators Only Sessions

•http://www.itu.int/ITU-D/treg/Events/Seminars/2003/GSR/index.html

Page 25: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

ITU - Arab Regional Office [email protected] Page - 25 / 28

RRU Web SiteRRU Web Sitehttp:http:// // www.itu.intwww.itu.int//ITU-D/treg/ITU-D/treg/

Page 26: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

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Challenges Challenges for Arab Regulators (1)for Arab Regulators (1)

True Independence (vs. conflict of Responsibilities)

Transparency and Fairness (Real & Perceived)

Licensing and Competition Policy

Dynamic Management and Licensing of Spectrum

Universal Service and Universal Access

Price Regulation

Consumer Protection

Adequate Financing

Page 27: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

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Interconnection Obligations Local Loop Unbundling 3G Mobile Spectrum Allocation and Licensing Broadband Services Broadcasting Services Internet and ICT:

Internet Governance and Regulation Cyber Laws & e-Applications Security, Digital Signature and PKI Multilingual Domain Names and ENUM

Challenges Challenges for Arab Regulators (2)for Arab Regulators (2)

Page 28: ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office

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ConclusionConclusion Telecom Sector Reform – 3 basic ingredients:

Competition Private sector participation Independent regulation

Arab World lagging in Reform, esp. in competition

Reform Programs in various parts of the Arab World:

Recent Privatization Moves: Jordan, Saudi Arabia Privatization without competition: Qatar, UAE Competition without Regulation: Somalia Notable Regulators: e.g. Jordan, Bahrain.