NTRA Highlights. Regulatory Framework Telecom Act No. 10/2003 Ensures transparency between operators Guarantees the independence of NTRA Protects Consumer

NTRA Highlights

Regulatory Framework Telecom Act No. 10/2003 Ensures transparency between operators Guarantees the independence of NTRA Protects Consumer Rights Handles Scarce Resources owned by the state Provision of Universal Service Sets rules for licensing new services Juristic personality Financial independency Ensures transparency between operators Guarantees the independence of NTRA Protects Consumer Rights Handles Scarce Resources owned by the state Provision of Universal Service Sets rules for licensing new services Juristic personality Financial independency

NTRAs mandate and scope of work Licensing Universal Service Obligations (USO) Interconnection Scarce Resources Spectrum Management Numbering Dispute Settlement Autonomity of NTRA decisions Arbitration Licensing Universal Service Obligations (USO) Interconnection Scarce Resources Spectrum Management Numbering Dispute Settlement Autonomity of NTRA decisions Arbitration

NTRAs mandate and scope of work contd Pricing Retail Wholesale Consumer Rights Quality of Service (QoS) Pricing Retail Wholesale Consumer Rights Quality of Service (QoS)

Market Overview

Fixed Line Market Fixed Network Unbundling of the Local Loop TE Licensing Market Access permitted for Domestic payphones Domestic value-added services allowed (e.g. PPCC) Fixed Network Unbundling of the Local Loop TE Licensing Market Access permitted for Domestic payphones Domestic value-added services allowed (e.g. PPCC)

Fixed Line Market contd Domestic Voice Eliminated the monopoly in fixed telephony Resale of Telecom Egypts domestic service allowed International Voice International gateway has been liberalized Resale of Telecom Egypts international voice and data services has been allowed Domestic Voice Eliminated the monopoly in fixed telephony Resale of Telecom Egypts domestic service allowed International Voice International gateway has been liberalized Resale of Telecom Egypts international voice and data services has been allowed

Fixed Line Market contd Telecom Egypt has privatized 20% of its shares. Telecom Egypt may continue the privatization up to 49% of its shares in subsequent stages. All licensees must be companies registered in Egypt All companies must train local human resources Telecom Egypt has privatized 20% of its shares. Telecom Egypt may continue the privatization up to 49% of its shares in subsequent stages. All licensees must be companies registered in Egypt All companies must train local human resources Telephone main lines in operation 10.6 Million Lines Total Public Pay phones 55683 Cabins Total Public Pay phones 55683 Cabins

Mobile Market Sharp increase in mobile subscribers over the past couple of years; Usage of mobile phones surpassed the usage of fixed telephone lines; Prices decrease gradually, especially with the possibility of a third operator entering the market; Services offered by both mobile operators are very similar to each other Sharp increase in mobile subscribers over the past couple of years; Usage of mobile phones surpassed the usage of fixed telephone lines; Prices decrease gradually, especially with the possibility of a third operator entering the market; Services offered by both mobile operators are very similar to each other

3rd Mobile Network NTRA issued an RFP for 3rd mobile network in February 2006; Purpose: Market Competition; It will use both 2G & 3G technology; 11 consortia from international companies in partnership with Egyptian companies applied NTRA issued an RFP for 3rd mobile network in February 2006; Purpose: Market Competition; It will use both 2G & 3G technology; 11 consortia from international companies in partnership with Egyptian companies applied

3rd Mobile Network NTRA formed a high-level committee to conduct the technical evaluation of bids Composed of: Experts from NTRA Experts from the Ministry of Investment and Finance Administrative Control Agencies Academia State Council Consortia advanced to the Financial bidding process should receive a minimum score of 700 out of 1000 in their technical proposals Such score should be no less than 85% of the highest technical grade awarded NTRA formed a high-level committee to conduct the technical evaluation of bids Composed of: Experts from NTRA Experts from the Ministry of Investment and Finance Administrative Control Agencies Academia State Council Consortia advanced to the Financial bidding process should receive a minimum score of 700 out of 1000 in their technical proposals Such score should be no less than 85% of the highest technical grade awarded

Steady Increase in Fixed Lines & A Boom In Mobile Phone Users Mobile penetrati on Rate 18.5% Mobile penetrati on Rate 18.5% Fixed Line penetration 14.8 % Fixed Line penetration 14.8 %

Internet Market Enabling Internet access on all fixed phone lines without any monthly fees and at The same cost as a local call since Jan 2002 Enabling Internet access on all fixed phone lines without any monthly fees and at The same cost as a local call since Jan 2002 Provided by Telecom Egypt in conjunction 210 Egyptian ISPs Beneficiaries: 1.2 million Egyptian households, 5.1 million users Provided by Telecom Egypt in conjunction 210 Egyptian ISPs Beneficiaries: 1.2 million Egyptian households, 5.1 million users

Internet Market contd Target within a year Linking 1.7 million households to the Free Internet service, thus getting 7 million users online while doubling the international capacity Target within a year Linking 1.7 million households to the Free Internet service, thus getting 7 million users online while doubling the international capacity

Major Increase in the number of Internet Users

Broadband Initiative Launched May 2004 by H.E. President Hosni Mubarak during Telecom Africa Initial Target: 50,000 ADSL Subscriber during First Year Later Phases to Include other Broadband Technologies 3-Year Initiative through Public-Private-Partnership First Objectives: Increase ADSL Penetration Promote WiFi Hotspots Initial Target: 50,000 ADSL Subscriber during First Year Later Phases to Include other Broadband Technologies 3-Year Initiative through Public-Private-Partnership First Objectives: Increase ADSL Penetration Promote WiFi Hotspots

Evolution of ADSL Subscribers May04 Apr06

Evolution of International Capacity May04 Apr06

Spectrum Management

NTRA strategic goal for radio spectrum. National frequency management system. National objectives for use of the spectrum. Spectrum managements prime objectives. Frequency Spectrum Management Sector structure. Frequency Regulation Committee Spectrum Management Functions. Spectrum Procurement. Arab Republic of Egypt frequency allocations. Example of Spectrum License Types. Spectrum Licensing Procedure Some operational spectrum management activities. Methods to License Rights to Use Spectrum... NTRA strategic goal for radio spectrum. National frequency management system. National objectives for use of the spectrum. Spectrum managements prime objectives. Frequency Spectrum Management Sector structure. Frequency Regulation Committee Spectrum Management Functions. Spectrum Procurement. Arab Republic of Egypt frequency allocations. Example of Spectrum License Types. Spectrum Licensing Procedure Some operational spectrum management activities. Methods to License Rights to Use Spectrum...

NTRA strategic goal for radio spectrum is to: Ensure rational, efficient and economical use of the spectrum resource by all radio services. Encourage the highest and best use of spectrum nationally. Ensure optimum use of the radio spectrum. Under use a comprehensive spectrum monitoring system to protect against harmful interference and enforce public safety-related rules, and to check compliance to the frequency assignment. Ensure rational, efficient and economical use of the spectrum resource by all radio services. Encourage the highest and best use of spectrum nationally. Ensure optimum use of the radio spectrum. Under use a comprehensive spectrum monitoring system to protect against harmful interference and enforce public safety-related rules, and to check compliance to the frequency assignment.

Frequency Spectrum Management Sector Spectrum Planning Wireless Networks Resource management Radio Frequency Spectrum Management International Coordination Field Surveying Technical Monitoring Field Inspection Network Planning Frequency Registration Services & Pricing Spectrum Procurement

Frequency Regulation Committee Ministry of Defense NTRAExecutive President NTRA Executive President Ministry of Telecom. & IT 3 Experts Radio & Television Union Republic Presidency Ministry of Interior National Security

National objectives for use of the spectrum are to: Make available efficient, nation/worldwide communications for personal and business use. Serve the national security and defense. Safeguard life and property. Support law enforcement and crime prevention. Support national and international transportation systems. Provide dissemination of information and entertainment Promote scientific research, development, and exploration. Stimulate social and economic progress. Make available efficient, nation/worldwide communications for personal and business use. Serve the national security and defense. Safeguard life and property. Support law enforcement and crime prevention. Support national and international transportation systems. Provide dissemination of information and entertainment Promote scientific research, development, and exploration. Stimulate social and economic progress.

Spectrum managements prime objectives: Optimizing usage of the frequency spectrum in accordance with the international regulations. Planning the assignment of the frequency spectrum complying with international rules and international security. Frequency notification, coordination, & registration. Evacuating frequency spectrum for introducing new services. Planning utilization of unused spectrum. Monitoring the frequency spectrum. International coordination with other countries for the utilization of the frequency spectrum Optimizing usage of the frequency spectrum in accordance with the international regulations. Planning the assignment of the frequency spectrum complying with international rules and international security. Frequency notification, coordination, & registration. Evacuating frequency spectrum for introducing new services. Planning utilization of unused spectrum. Monitoring the frequency spectrum. International coordination with other countries for the utilization of the frequency spectrum

Spectrum Management Functions: Spectrum management policy and planning/allocation of spectrum Frequency Assignment and Licensing Standards, Specifications and Type Approval. Enforcement. Monitoring. Spectrum management policy and planning/allocation of spectrum Frequency Assignment and Licensing Standards, Specifications and Type Approval. Enforcement. Monitoring.

Spectrum Management Functions (continued) International Co-ordination/Co-operation. Liaison and Consultation. Spectrum Engineering Support. Computer Support. Administrative and Legal Support. International Co-ordination/Co-operation. Liaison and Consultation. Spectrum Engineering Support. Computer Support. Administrative and Legal Support.

Spectrum Procurement NTRA The NTRA shall have the right to vacate Frequency Bands from occupants in exchange for fair compensation and shall also grant these occupants a period of not less than a year, for executing such evacuation. NTRA The NTRA shall have the right to vacate Frequency Bands from occupants in exchange for fair compensation and shall also grant these occupants a period of not less than a year, for executing such evacuation.

Example of Spectrum License Types PeriodType 1 year Fixed Service (HF/VHF/UHF/MW) PMR (VHF/UHF) Aeronautical 3 yearsMaritime 5 years & Fees Exempt Amateur

Spectrum Licensing Procedure Prerequisite from the client Clients Service Memo. Preparation Frequency Regulation Committee Refusal Approval License Issued Deny Prerequisite & Client Notification New License Client Notification & Fees Payment

Some operational spectrum management activities : Facilitating frequency assignment in shared bands through coordination. Developing the monitoring system. Freeing up the radio spectrum for new services; e.g. CDMA, DAB, 3G,Wimax Determining the impact of introducing communications equipment into the existing environment. Implementing field-monitoring programs to identify interference sources and validate approved spectrum use. Participating in the activities of ITU-R. Facilitating frequency assignment in shared bands through coordination. Developing the monitoring system. Freeing up the radio spectrum for new services; e.g. CDMA, DAB, 3G,Wimax Determining the impact of introducing communications equipment into the existing environment. Implementing field-monitoring programs to identify interference sources and validate approved spectrum use. Participating in the activities of ITU-R.

Some operational spectrum management activities : Spectrum Pricing - NTRA is working on establishing an efficient spectrum pricing regime. - Case studies of many countries are considered. - Encouraging national and international investment in new technologies in Egypt. Studying intersystem interference analysis tools and permissible interference criteria. Ensuring the electromagnetic compatibility with the established rules and regulation regarding spectrum use (i.e, The provisions of regulations governing the frequency allocation / assignment spectrum management processes). Spectrum Pricing - NTRA is working on establishing an efficient spectrum pricing regime. - Case studies of many countries are considered. - Encouraging national and international investment in new technologies in Egypt. Studying intersystem interference analysis tools and permissible interference criteria. Ensuring the electromagnetic compatibility with the established rules and regulation regarding spectrum use (i.e, The provisions of regulations governing the frequency allocation / assignment spectrum management processes).

Some operational spectrum management activities : Automation in Spectrum Management Benefits: Better governance Law and order in wireless communications Transparency of the licensing process Operational benefits: Improve international co-ordination Simplify communication with the ITU Commercial benefits: Higher revenues due to an improved licensing process Less labor intensive More accurate frequency assignment and licensing Increased efficiency of operations (Customer service) Automation in Spectrum Management Benefits: Better governance Law and order in wireless communications Transparency of the licensing process Operational benefits: Improve international co-ordination Simplify communication with the ITU Commercial benefits: Higher revenues due to an improved licensing process Less labor intensive More accurate frequency assignment and licensing Increased efficiency of operations (Customer service)

Methods to Licence Rights to Use Spectrum... - First Come, First Serve For bulk of fixed, microwave and mobile frequency assignments. - Competitive Licensing When there is more demand for spectrum than supply Comparative Review Process (Beauty Contest) Spectrum Auctions Hybrid (Beauty contest & Auction) -And lets not forget - Licence Exempt Devices - First Come, First Serve For bulk of fixed, microwave and mobile frequency assignments. - Competitive Licensing When there is more demand for spectrum than supply Comparative Review Process (Beauty Contest) Spectrum Auctions Hybrid (Beauty contest & Auction) -And lets not forget - Licence Exempt Devices

Operation & Monitoring Sector

Sector Responsibilities Regulating Telecom. Equipment Market in Egypt. Monitoring quality and implementation programs of licensed Telecom. Services. Interaction with end user of the Telecom. Services in Egypt. Regulating Telecom. Equipment Market in Egypt. Monitoring quality and implementation programs of licensed Telecom. Services. Interaction with end user of the Telecom. Services in Egypt.

Sector Departments Inspection & Services Monitoring. Type Approval. Customer Service. Society Interaction. Call Center. Inspection & Services Monitoring. Type Approval. Customer Service. Society Interaction. Call Center.

Technical Inspection & QoS Assurance Division Customer Services Division Dept. Type Approval Dept. Executive Secretary (1) Head, Operation & Monitoring Society Interaction Contact Center (7) TA Labs (1) Measurements Systems (2) Customers Requests for services (8) Customers Clearance & Importation Permits (5) Licenses Issuance(10) Fixed & Payphone QoS (3) Wireless Services(3) Data& Satellite Services (2) Surveys (1) Telecom Services Monitoring(3) Consumer Protect(1) Technical Inspection (3)

Inspection & Service Monitoring Regular plans (surveys, visits and measures) to ensure Quality of different services & prepare periodical reports with analysis: Mobile. Fixed. Prepaid cards. Data Transfer& internet. VSAT Establishing Periodically meeting with operators & SPs to discuss QOS aspects. Prepare & issue Health & Environmental Protocols in coordination with other institution & ministries Certifying Mobile stations according to H&E protocols. Monitor the service centers of all importing company. Regular plans (surveys, visits and measures) to ensure Quality of different services & prepare periodical reports with analysis: Mobile. Fixed. Prepaid cards. Data Transfer& internet. VSAT Establishing Periodically meeting with operators & SPs to discuss QOS aspects. Prepare & issue Health & Environmental Protocols in coordination with other institution & ministries Certifying Mobile stations according to H&E protocols. Monitor the service centers of all importing company.

Society Interaction Coordinate with consumer rights committee. Monitoring implementation of non-technical terms of license. Developing statistical comparison with similar services nationally & internationally. Design & prepare Market surveys according to NTRA activities & needs getting users feedback and operators comments regarding Telecom. services. Coordinate with consumer rights committee. Monitoring implementation of non-technical terms of license. Developing statistical comparison with similar services nationally & internationally. Design & prepare Market surveys according to NTRA activities & needs getting users feedback and operators comments regarding Telecom. services.

Type Approval Defining the Approved standards &regulations applicable in Egypt for Telecom Equipment based on international standards. Establishing test lab. for Radio & Telecom Terminal Equipment. Implement the Type Approval Regime & Issuing Type Approval Certificates. Defining the Approved standards &regulations applicable in Egypt for Telecom Equipment based on international standards. Establishing test lab. for Radio & Telecom Terminal Equipment. Implement the Type Approval Regime & Issuing Type Approval Certificates.

Customer Services Issuing importation permits. Approve customs clearance for Telecom. Equipment. Issuing the users & sellers license of wireless equipment. Issuing importation permits. Approve customs clearance for Telecom. Equipment. Issuing the users & sellers license of wireless equipment.

Call Center Receive customers complaints (2nd tier) & inquiries related to the telecommunication sector & NTRA Investigate & Solve customer complaints in cooperation with Telecommunication operators /ISP.s Implement Market Surveys related to NTRA activities in coordination with other Dept.s. Receive customers complaints (2nd tier) & inquiries related to the telecommunication sector & NTRA Investigate & Solve customer complaints in cooperation with Telecommunication operators /ISP.s Implement Market Surveys related to NTRA activities in coordination with other Dept.s.

NTRA Type Approval and Compliance Department

Telecom Act 10/2003 Under the Egyptian Telecom Act 10/2003 Articles (44) & (48), no terminal equipment can be directly or indirectly connected to any Public Service Telecommunication network unless it has been type approved by NTRA (National Telecommunication Regulatory Authority).

Why Regulate Telecom products? The telecommunications Type Approval regulatory arrangements aim to ensure that products meet applicable technical standards prior to connection to a telecommunications network. Ensuring that users of the telecommunication equipment in this country get quality equipments from the market. Protecting personal health and safety of end users; Protecting the integrity of the telecommunications networks; Ensuring interoperability with a telecommunications networks; Ensuring access to emergency call services; Support frequency management regulations. The telecommunications Type Approval regulatory arrangements aim to ensure that products meet applicable technical standards prior to connection to a telecommunications network. Ensuring that users of the telecommunication equipment in this country get quality equipments from the market. Protecting personal health and safety of end users; Protecting the integrity of the telecommunications networks; Ensuring interoperability with a telecommunications networks; Ensuring access to emergency call services; Support frequency management regulations.

Type Approval & Compliance Department Type Approval & Compliance StandardizationLabs Administrator

Who is Type Approval applied on? The telecommunications regulatory arrangements apply to any person, business or company that is the initial point of supply of customer telecom equipment to the Egyptian market. This includes: Any local manufacturer who make or assemble telecommunications products or its authorized agent; or Any overseas principal (Manufacturer, representative, Agent, Type approving agency,etc.); or Any locally registered agency acting on behalf of any overseas principal. The telecommunications regulatory arrangements apply to any person, business or company that is the initial point of supply of customer telecom equipment to the Egyptian market. This includes: Any local manufacturer who make or assemble telecommunications products or its authorized agent; or Any overseas principal (Manufacturer, representative, Agent, Type approving agency,etc.); or Any locally registered agency acting on behalf of any overseas principal.

What standards applied in Egypt? Egypt is in the preparation phase prior launching a local Telecom equipment specification & till then NTRA is adopting the following standards OrganizationStandards ETSI, ASA,FCC,ITUTelecom / Radio CENELEC, IEC, ASAEMC / EMI CENELEC, IEC, ASA, UL, FCC Safety / Health

Type Approval Application Package Application-form. www.tra.gov.eg/pdfs/approvalreport.pdf www.tra.gov.eg/pdfs/approvalreport.pdf Detailed original catalogue explaining System Description (Should provide a basic understanding of the system, its operation philosophy and system technology), Technical Data and Specifications of the equipment. Declaration of conformity from the manufacturing company &/or Test reports from an accredited test lab for the equipment standards regarding Telecom/Radio, EMC, EMI & Safety & Health standards of the equipment. Type approval processing fee. Application-form. www.tra.gov.eg/pdfs/approvalreport.pdf www.tra.gov.eg/pdfs/approvalreport.pdf Detailed original catalogue explaining System Description (Should provide a basic understanding of the system, its operation philosophy and system technology), Technical Data and Specifications of the equipment. Declaration of conformity from the manufacturing company &/or Test reports from an accredited test lab for the equipment standards regarding Telecom/Radio, EMC, EMI & Safety & Health standards of the equipment. Type approval processing fee.

Type Approval Register The National Telecommunication Regulatory Authority (NTRA) maintains a regularly updated type approval register on the NTRA web site for the inspection & convenience of public. www.ntra.gov.eg The National Telecommunication Regulatory Authority (NTRA) maintains a regularly updated type approval register on the NTRA web site for the inspection & convenience of public. www.ntra.gov.eg

Type Approval Initiative (2004) August 2004 - Initiative for globalizing Egypt Type Approval procedures.

Future Plan Proposed Areas of Cooperation & experience sharing between NTRA & BNETZ - German Market Surveillance strategy. * Technique, procedures & databases - Improve Testing capabilities to perform RF, EMC & Safety testing for Telecom Terminal Equipments in Egypt. Proposed Areas of Cooperation & experience sharing between NTRA & BNETZ - German Market Surveillance strategy. * Technique, procedures & databases - Improve Testing capabilities to perform RF, EMC & Safety testing for Telecom Terminal Equipments in Egypt.

I am totally convinced that NTRA has become fully capable of creating a balanced ICT market, where national and international private sectors assume their basic role in investment in next generation telecom services H.E. Dr. Tarek Kamel Minister of Communications & Information Technology I am totally convinced that NTRA has become fully capable of creating a balanced ICT market, where national and international private sectors assume their basic role in investment in next generation telecom services H.E. Dr. Tarek Kamel Minister of Communications & Information Technology

NTRA So! what has the NTRA done so far to meet the above mentioned challenges?

THANK YOU

Documents

NTRA Highlights. Regulatory Framework Telecom Act No. 10/2003 Ensures transparency between operators Guarantees the independence of NTRA Protects Consumer