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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
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Topics
Telecom Sector Reform
Trends & Regional Benchmarking
Arab Reform Scoreboard
Regional Regulatory Associations
ITU/BDT RRU
Conclusion
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Telecom Sector ReformTelecom Sector ReformGetting the recipe rightGetting the recipe right
Three essential ingredients:
Competition
Private sector participation
Effective regulation
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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%
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Regional Regulatory Regional Regulatory Associations WorldwideAssociations Worldwide
AFRICA: 1- ARICEA 2- TRASA3- WATRA
ASIA-PACIFIC: ATRC
AMERICAS: 1- OCUR2- REGULATEL
EUROPE: - ERG
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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 »
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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.”
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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
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Reports: Trends in Reports: Trends in Telecom ReformTelecom Reform
20002000//20012001InterconnectionInterconnection
RegulationRegulation
1998 1998 General General TrendsTrends
19991999Convergence & Convergence &
RegulationRegulation
20022002EffectiveEffective
RegulationRegulation
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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
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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
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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
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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
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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
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RRU Web SiteRRU Web Sitehttp:http:// // www.itu.intwww.itu.int//ITU-D/treg/ITU-D/treg/
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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
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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)
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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.