Communication Sector Reform: Liberalisation, Law and Regulation and Universal Service policy in Rwanda.

Transcription

1 Communication Sector Reform: Liberalisation, Law and Regulation and Universal Service policy in Rwanda. Col D. Mudenge Eng. MCM, Vice-Chairperson Regulatory Board & Ag Director General - RURA

2 Introduction The Rwanda, being one of Africa s s smallest Countries, is no doubt the smallest country in East and Central Africa. It has enjoyed a period of stability and democratic infrastructure set up for over twelve years since its 1994 Genocide Aftermath.

3 Introduction Unlike Asian countries, Rwanda like other Sub- Saharan countries is still striving to translate the benefits of its small size, stability, security and the unprecedented clear political support from the top leadership and the expected benefits of the Communication sector into a real national growth.

4 Introduction The overall objective of this presentation is to highlight key steps of Rwanda Communication Sector Reform through : a. Liberalisation and Commercial Environment structure ensuring effective and workable ICT Policy implementation; b. Establishment of laws and Regulation framework of the ICT policy that respond to the Government vision 2020 perspective; c. Establishment of Universal Access Policy implementation (required) outputs that shall contribute towards the poverty alleviation efforts and thereby enhancing economic development.

5 WHY A VISION? All things are created Twice! Begin with end in mind is based on the principle that all things are created twice. There s a mental or first creation and a physical or second creation to all things. Stephen R. Covey The 7 Habits of Highly Effective People

6 Communication Sector Reform: Liberalisation, Law and Regulation and Universal Service Policy in Rwanda. Digital Digital Divide Divide Universal Universal Access Access Law Law and and Regulatory Regulatory Framework Framework Liberalisation, Liberalisation, Commercialisation Commercialisation and and Privatisation Privatisation

7 The Role of Communications' Sector Reform in achieving a competitive liberalised market environment:

8 The Digital Divide

9 The Digital Divide

10 Benefits from full and open competition of Communications Sector Efficient Regulation: Greater transparency and predictability Fair & efficient Competition: Consumer savings/ Lower prices. Many Operators: benefit from increased demand Digital Divide Reduces: Society benefit From new applications for health, education etc. Economic performance/ Economic Stimulus. Economies expand (GDP), Gvt benefit From increased tax revenues Workers benefit from increased Employment/Jobs.

11 PEST ANALYSIS Status of government Priorities: provision of basic services, job creation, poverty elimination, growth Importance of corporate citizenship Greater focus on governance and corruption eradication : e-gov Political Stable Full Support Economic Steady progress Status of competitive environment Status of economy; Rate of inflation Uncertainty regarding the impact of oil prices and exchange rates continue Pricing models and operational systems are complicated Deregulation of industry through changes in legislation Uncertainty re regulation of new players and their participation in the market Communications Reform Growing middle-class with growing potential uptake of Social operators services Significant impact HIV/Aids has a significant impact on society with uncertainty about long-term effects e.g. labour, healthcare etc. Growing poverty in certain areas Evolution of media space Technology New Challenges E-school Rapid change and growth in complexity with many new players in the market Convergence of technologies and industries Uncertain consumer uptake of new technologies, readiness and overload Innovations Service to influence - Development profitability

12 Laws and Regulation framework:

13 Laws and Regulation framework: RURA Law ( Convergence issue) Telecom Law > < ICT Law in preparation Competition Law

14 Laws and Regulation framework: Rwanda has integrated the East African Community. In order to harmonise with East Africa Regulatory Framework, Rwanda needs urgently to work with others member states for the harmonisations of following issues, Summarised in form of questions as follows :

15 Does the regulatory framework facilitate the provision of different services over different platforms (e.g., technology Neutrality ) )? Does the regulatory framework support full competition? Does the regulatory framework allow service providers to offer multiple services? What are the regulatory policies for these new technologies and services with regard to numbering, spectrum, universal service, and interconnection?

16 Does the EAC Countries legal framework contain the necessary legislation to support an ICT environment (e.g., intellectual property laws, computer crime, electronic transactions, data privacy and security)? How much turn-around time and process is required for the EAC Countries legal framework to respond to future changes in the sector?

17 Reforms in Communications: Law and Regulatory perspective The primary purpose of reform is : To get more consumers with better, new, and less costly services. To Address and Accommodate Pressures from ICT Liberalised Market : incumbents who want ongoing protection, new entrants seeking special deals/considerations or help ( e.g. Right of ways, Interconnection agreement, )

18 Example of An Effective Regulator An effective regulator is Adequately funded. (GBP 164m p.a. for OFCOM) Effectively skilled Works in the best interest of the consumer Creates a level playing field

19 Key Issues in Regulatory Establishment Policy and Legal framework Functions and Role of Agency Institutional and governance framework Funding Independence Lead time and Reform Implementation Transparency, Predictability & Flexibility

20 POLICY MAKER: MININFRA A Direct Hand Consumers/ Gvt Agencies No Competition : Low QoS No Choice Rwandatel MTN-Rwandacell/

21 POLICY MAKER: MININFRA RURA Still A Semi Direct Hand Consumers/ Consumer Associations No Competition : Low QoS No Choice Terracom-Rwandatel MTN-Rwandacell/ Artel/Altech, ISPs Broadcasting & Other Media

22 POLICY MAKER: MININFRA RURA Consumers/ Consumer Associations Fair Competition : High QoS Many /Multiple Choices Tariffs : More & more decrease Rwandatel MTN-Rwandacell/ Artel/ ISPs Broadcasting & Other ICT Media

23 The role of Communications' Sector Reform in Achieving Universal Access in a competitive environment

24 Overview of Universal Access and Universal Service The terms universal access and universal service are often used interchangeably, because of their similar meanings, but the difference between the two terms is more than a nuance. Universal service means that every household in the country has telephone service traditionally, a fixed-line phone for every household. This is a practical policy objective in many developed countries, but in most developing market countries, it is only a long term goal.

25 Overview of Universal Access and Universal Service While universal service may be a realistic policy objective in developed countries, universal access is a more feasible practical goal in many developing countries. Universal access policies seek to increase access to telecom services on a shared basis, such as on a community or village-wide level. Universal access programs typically promote the installation of public payphones or public call offices in rural and remote villages or low-income urban areas with the aim of providing a basic and initial connection to the telecommunications network.

26 Rural V Urban Economics Funds? Urban Site Costs Power Grid? Local Transmission to switch Easy to reach for site engineers Revenue Mostly outgoing calls Uneconomic if interconnect is high High site utilisation Distribution relatively easy Rural Site Costs High Fuel Cost High Transmission Cost Especially on satellite Costly to maintain Revenue Mostly incoming calls Uneconomic if interconnect is low Low site utilisation Distribution is difficult

27 Focus on the end user Terminals Handsets and Computers WLAN, LAN Balance!!! DSL, Cable TV PAN Bluetooth GSM/WCDMA/ CDMA2000 CDMA EVDO

28 ACCESS IN DEVELOPING MARKETS IS ABOUT THE COST OF ACCESS, NOT USAGE PRICES To him, the barrier to get connected to mobile is 1. How much to join? 2. How much to stay connected? 3. How much to use? ACCESS : USAGE : IN THAT ORDER!!! MANDATORY EXPENSE DISCRETIONARY EXPENSE The affordability barrier for the poorest is: cost of phones and SIM packs any minimum spend requirement to remain connected, then the price of making calls (and even then, compare this to the cost of a trip to town!) The focus should be cost of access & End User Terminal Handset!

29 Universal Access Policies The funding of universal access support schemes often requires some form of regulatory intervention. On one hand, Governments can impose performance requirements or levies on operators, essentially directing the pay the costs of providing universal access, either through rate mechanisms or through a special universal access

30 On the other hand, Universal Access Policies Governments can provide incentives for carriers to provide universal access/service on their own. Some form of compensation on carriers that extend their networks or improve service is target areas. This policy choice, between setting mandate and providing incentives, is often captured or termed as pay or play. That is a carrier can either pay to support universal access or undertake to provide it itself.

31 Universal Access Fund- UAF Presidential Decree 2 % of Annual Turnover of each operator Define Remote or Rural Areas Targets Invite Bidders to compete Select the best Bid Monitor the implementation Fund Mobilisation/ Equipment from International ICT Organs CDMA donated by ITU , Rwandatel was selected WCDMA donated by China Government, Rwandacell 2007 Government of Rwanda commitment to build a National Broadband Infrastructure ( Fiber Optic, VSAT and Kalisimbi Project ( DVB-T applications)

32 Universal Access as an opportunity ( Pay or play) The 30 Districts constituting Rwanda trough their respective Provinces can proactively encourage communities to participate in the development of the Communications sector in their respective areas. This understanding maturity will provide new opportunities and alternative means of financing universal Access.

33 Universal Access as an opportunity ( Pay or play) Rwanda Regulators and Policy-markers are discussing and may borrow some of the following ideas as ways in which universal access can be promoted: * Micro-credit programmes. Bangladesh Case Study * Build, Operate and Transfer-BOT "or "Build, Transfer and Operate-BTO" Arrangements e.g. Indonesia and Thailand * Cooperatives and Community-Owned Systems. * Regional Operators. E.g. South Africa ( Under- Served Areas Licences: USALs )

34 The Market Efficiency Gap and the True Access Gap Source: World Bank

35 Regulatory Framework Experience Sharing experiences in the different markets: CRASA (Communications Regulators Association of Southern Africa) ARICEA (Association of Regulators of Information and Communication for Eastern and Southern Africa) WATRA (West African Telecoms Regulators Association) Etc.

36 Rwanda Integrated ICT-led Socio- Economic Attainment Target Universal Access/Service as an opportunity ("Pay or Play") Universal Access/ Service Availability Affordability Accessibility UAF for only the True Access Gap LIBERALISATION, COMMERCIALISATION & PRIVITISATION Remove legal barriers to invest full liberalisation An objective framework with open access as a remedy Intervene to correct market failure Investment in new access DRIVERS: Peace & Stability Rule of law & Respect of Property rights Absence of Corruption Fair-Competition Transparency & Predictability LAW & REGULATION FRAMEWORK Regulate terms of entry managed liberalisation A biased framework with open access as a central mechanism Intervene to create arbitrage opportunities Access to existing investment

37 The Rwanda Communications Reform should be an ongoing process Law & Regulatory Framework Policy Liberalisation Commercialisation Privitisation Universal Access Economic Growth: Communications Sector Growth Employment, Good Governance, GDP

38 Thank you