ASEAN AUSTRALIA DEVELOPMENT COOPERATION PROGRAM (AADCP) PHASE II TERMS OF REFERENCE FOR

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1 ASEAN AUSTRALIA DEVELOPMENT COOPERATION PROGRAM (AADCP) PHASE II TERMS OF REFERENCE FOR Study on Establishing an ASEAN Telecommunications Single Market Post-2015 The ASEAN Secretariat and the Australian Government, through AADCP II, invite applications from consultants for the above-referenced project. I. Background Information and Communications Technology (ICT) has played a critical role in supporting regional integration and connectivity efforts. As ASEAN forges ahead to further deepen economic integration and community building, ICT is expected to play an increasingly pivotal role. ICT, and in particular the Internet, has become a core part of the economy and embedded infrastructure, progressively underlying all aspects of socio-economic growth and development. ASEAN is now transitioning towards a digital economy. The creation of an integrated digital economy has gone beyond enabling connectivity and focusing on the exciting and disruptive developments. Increasingly, all sectors of the economy are adopting and embedding ICT and fostering economy-wide growth and innovation. Thus, the ASEAN ICT Masterplan ( ) (AIM 2020), which was approved by Ministers at the 15 th ASEAN Telecommunications and Information Technology Ministers Meeting, held in Viet Nam in November 2015, is focused on enabling transformation to the digital economy and developing the human capacity necessary for this transition, facilitating the emergence of a single integrated market that is attractive to investment, talent and participation, and building a digital environment that is safe and trusted. "Multiple ICT Opportunities across a Single Regional Market" is one of the five expected outcomes of the AIM This project is part of initiative 6.2 in the AIM, which promotes an open market for ICT enterprises/ products. A single integrated market is required in order for the telecommunications industry in ASEAN to survive the major shift towards data-heavy and always-connected services demand. It will encourage the industry to reinvent its business model, supporting a move away from vertical bundling of services towards contract-based relationships and horizontal consolidation of operators, including resource sharing amongst service providers. This is driven by the need to achieve better economy of scale as well as to reduce capital expenditures and operational costs, which will result in lowering the costs for consumers. Good economy of scale would also attract more investment, especially for new technology in the sector. In some cases, economies of scale can only be reached if horizontal consolidation amongst service providers goes beyond state borders, e.g. regional consolidation. Regional consolidation would require harmonisation of standards, rules and regulations in the industry, which will be examined in this project. The need for a single market was put forward in the 2010 Master Plan on ASEAN Connectivity (MPAC), as a key strategy under the element of Institutional (Soft) Connectivity which includes: trade liberalisation and facilitation; standards and conformance; customs integration; investment liberalisation and facilitation; services liberalisation and Mutual Recognition Arrangements; regional transport agreements; and capacity building programmes. The key strategy to accelerate the development of an efficient and competitive logistics sector, in particular transport, telecommunications and other connectivity-related services in the region was proposed because the geographic breadth and efficiency of telecommunications infrastructure and cost competitiveness of telecommunications services in a number of ASEAN countries left much to be desired. The strategy calls for a more liberalised and competitive environment to encourage more investment and technology improvements for telecommunications in Page 1 of 9

2 the region. This strategy will be implemented by undertaking a feasibility study of an ASEAN Telecommunications Single Market Beyond 2015, as one of MPAC s measures. It is anticipated that the study will help ASEAN identify potential areas for liberalisation, from the perspective of telecommunications regulations, examine the challenges/issues faced by ASEAN Member States in liberalising telecommunication markets, and suggest strategies to address the challenges/issues. In efforts to establish regional harmonisation of the telecommunications industry, ASEAN sectoral bodies have conducted several studies on a number of telecommunications-related policies and regulations such as spectrum (frequency bands) allocation, mobile roaming charges reduction, over the top (OTT) service regulation, passive telecommunications infrastructure sharing and telecommunications convergence, to identify best practices among ASEAN countries and other regions. However, to date, no specific study on the barriers to market integration and the approaches to overcome them has been conducted. It is therefore important to conduct a feasibility study for the establishment of the ASEAN Telecommunications Single Market. Specifically, it will: (a) undertake a review of current market structures, industry performance, interrelated trends, national initiatives, and international frameworks in the global and regional telecommunications industry; (b) describe the economic justification of regional telecommunications market integration (the "business case") and the existing barriers to the integration; (c) identify and recommend the possible pathways and roadmap that will support the establishment of a single telecommunications market and enable stakeholders of the ASEAN telecommunications industry to take advantage of the opportunities presented by the integrated market. The output of this study will be publicly available. The document will be disseminated at the annual ASEAN Telecommunications and Information Technology Ministerial Meeting (TELMIN) to ensure awareness among ASEAN policy makers of the collective efforts in establishing an ASEAN Telecommunications Single Market. A factsheet will be prepared for the private sector, to gather support for the establishment of the single market. Both documents will be made available through the ASEAN and AADCP II websites. II. Needs and Objectives It is envisaged that this study will lead to : - Establishment of policies and regulations, by Telecommunications and ICT Policy Makers and Regulators of all ASEAN Member States (AMS), that facilitates the establishment of the ASEAN Telecommunications Single Market, specifically those that address key issues and challenges faced by key stakeholders; - ASEAN telecommunications major industry players including regulators, network operators, service providers having a better understanding of the market risks and impact of an ASEAN Telecommunications Single market, current industry and regulatory readiness for the Single Market, and what actions will be required between now and 2020 to facilitate the establishment of the Single Market. III. Outputs The project will deliver the following outputs: 1. Feasibility Report on the Establishment of an ASEAN Telecommunications Single Market. This report will look at the current state of the ASEAN telecommunications industry, identify issues and challenges for the establishment of the Single Market, explore potential solutions to address these issues and challenges, and propose the most viable solution for ASEAN policy makers. Specifically, it will contain: a) A description of why a Telecommunications Single Market is needed for ASEAN to adapt to the new digital economy by 2020, with reference to case studies on Europe s Digital Single Market; b) An assessment of the economic gains, business considerations and consumer protection aspects Page 2 of 9

3 of establishing an ASEAN Telecommunications Single Market; c) An assessment of the market risks and impact of an ASEAN Telecommunications Single Market; d) An assessment of AMS regulatory and industry readiness for a Telecommunications Single Market, including analysis of key issues and challenges faced by ASEAN regulators as well as ASEAN telecommunications industry players, including regulators, network operators, service providers and consumers; e) Possible measures to address the key issues and challenges, containing sufficient detail so that ASEAN policy makers are aware of all of the viable potential solutions and able to decide on the best possible pathway to the establishment of the single market. 2. Roadmap to establish an ASEAN telecommunications single market. This roadmap will include regulatory recommendations, strategic actions, timeline and key performance indicators (KPIs) for establishing an ASEAN telecommunications single market. The roadmap will be based on decisions made by ASEAN policy makers on the most viable measures as describe in point (1) above. It will clearly describe intended changes in the regulatory and institutional environment in the region by 2020, and identify strategic actions with a clear timeline and division of responsibilities for achieving those outcomes. 3. A factsheet highlighting key points of the feasibility report and roadmap, to inform the private sector. This factsheet will be drafted and designed to promote ownership and attract support from the private sector. It will be specific and succinct, written in layman language, and visually attractive. The feasibility report and the roadmap will be disseminated at an annual ASEAN Telecommunications and Information Technology Ministerial Meeting (TELMIN) to promote awareness among ASEAN policy makers of the collective effort required to establish an ASEAN Telecommunications Single Market. Both the full report and the factsheet will be made available through the ASEAN and AADCP II websites. Page 3 of 9

4 IV. Tasks/Activities For this component of the project, it is important to ensure participatory and consultative approach. Suggested activities are provided below to achieve the outputs presented. The bidder should provide details on its approach to each activity in its bid and is free to recommend additional activities. These will be expanded as part of the contracting and project inception processes. # Outputs/Reports Activity Person working days/weeks Completion Date Person(s) responsible 1 Inception Report Development of the over-all approach to the delivery of the expected Week 2 Consultant outputs 5 days Inception meeting with ASEC and AMS (if appropriate) Week 2 Consultant 2 Feasibility Report on the Establishment of an ASEAN Telecommunication s Single Market. - Identification of relevant global and ASEAN telecommunication industry trends and on market integration or single market establishment - Document review and consultation (including survey and key informant interviews) with ASEAN telecommunications sector stakeholders on the issues and challenges in realising an ASEAN Telecommunications Single Market 100 days Week 10 Consultant, with support from AMS and ASEC Initial data analysis: trends, economic gains, business considerations and market risks of an ASEAN Telecommunications Single Market Week 12 Consultant Submission of interim report, and conduct of a workshop to collect feedback on the interim report. The interim report will contain: o A description of why a Telecommunications Single Market is needed for ASEAN to adapt to the new digital economy by 2020, with reference to case studies on Europe s Digital Single Market; o An assessment of the economic gains, business considerations and consumer protection aspects of establishing an ASEAN Telecommunications Single Market; o An assessment of the market risks and impact of an ASEAN Week 13 Consultant, with support from AMS and ASEC Page 4 of 9

5 o o o Telecommunications Single Market; An assessment of AMS regulatory and industry readiness for a Telecommunications Single Market; An analysis of key issues and challenges faced by ASEAN regulators as well as ASEAN telecommunications industry players, including regulators, network operators, service providers and consumers; Possible measures to address the key issues and challenges, containing sufficient detail so that ASEAN policy makers are aware of all of the viable potential solutions and able to decide on the best possible pathway to the establishment of the single market. 3 Roadmap towards the establishment of an ASEAN telecommunications single market Refinement of report and further analysis on the potential Week 15 Consultant solutions/measures to address the key issues and challenges and recommendations for AMS Present the final feasibility report at a TELSOM-ATRC meeting. Week 16 Consultant AMS deliberation on potential solutions/ measures. Week 20 AMS and ASEC (no consultant Develop policy and regulatory recommendations, roadmap, timeline, and key performance indicators (KPIs) for the establishment of an ASEAN Telecommunications Single Market, according to the preferred solutions/ measures Prepare and conduct a regional workshop to seek feedbacks on the recommendations, proposed roadmap and timeline 25 days Week 23 Week 24 input) Consultant Consultant with support from ASEC Finalise and present the final report at a TELSOM/TELMIN meeting Week 25 Consultant 4 Factsheet containing key points of feasibility study and roadmap Draft and submit factsheet 5 days Week 28 Consultant Page 5 of 9

6 5 Project Completion Report Draft and submit the Project Completion Report (PCR): o Review and assess project performance against plan what happened, what was learned, what went well and did not go well o Describe project successes o Describe the lessons learned o List further actions that can be taken 5 days Week 31 Consultant Page 6 of 9

7 V. Reporting The consultant is expected to produce outputs in accordance with Section III and IV above. In addition to these, the progress and activity reports would have to be submitted. These are summarised below. The timing of delivery is indicative and can be adjusted when the consultant s work plan is developed, subject to mutual agreement. No. Reports Target Delivery Date 1 Inception Report This would detail the consultant s approach to the project and provide a detailed work plan. It should also contain an annotated outline of the final report. 2 Workshop Reports In line with the various outputs which would be presented in consultative workshops, corresponding workshop reports would be prepared. 3 Project Completion Report The Project Completion Report will establish a record of the project achievements against the project s original intended purpose and outputs. It is intended to assist in assessing impact, draw out conclusions and lessons learned that may be valuable in designing new related initiatives. 2 weeks after contract signing 2 weeks after the conduct of the workshops Within two weeks of completion of the final milestone. All reports will be submitted based on AADCP II Guidelines for Contractors in draft format to the ICT and Tourism Division (with a copy to AADCP II) and, following ASEC approval, in final form. All outputs and reports must be suitable for publication, although the decision on publication lies with the ASEAN. The contractor will also provide regular (weekly, bi-monthly or as agreed with ASEC) summation of activities undertaken and issues that have arisen. These will be submitted to ICT and Tourism Division and AADCP II via . Financial reports will be submitted at invoicing in line with a payment schedule to be specified in the Special Services Agreement (SSA). VI. Project Management The project will be funded by the ASEAN-Australia Development Cooperation Program II and managed by the ICT and Tourism Division of the ASEAN Secretariat. The consultant will be responsible for organising and conducting the scheduled activities in collaboration with the host countries and the ASEAN Secretariat. Page 7 of 9

8 VII. Scope of Services The consultancy will be undertaken over a continuous effective period of 8 calendar months with approximately 140 person days of professional services covering all deliverables. Work will commence immediately after contract signing. VIII. Qualifications We require, at the minimum, the following expertise and in the bidder must be able to demonstrate the required qualifications on the aforementioned scope of work: In-depth knowledge and market intelligence in the ASEAN telecommunications industry; Strong network amongst ASEAN telecommunications industry leaders and decision makers; Thorough understanding of the economic and political trends and recent developments in ASEAN that are relevant to the telecommunication industry; Proven track record in data collection and analysis on regional and global survey especially on development and emerging trends; Proven track record in developing strategic plans/roadmaps at regional level; Proven track record in working with multi-stakeholder in a participatory manner, including with high-level government officials, bilateral and multilateral institutions, civil society and NGOs to plan development in the process of work plan development; Extensive knowledge and experience in project management and monitoring and evaluation; Experience working with the ASEAN Secretariat and/or AADCPII will be considered added value. IX. Bidding Interested consulting firms are invited to submit a proposal in response to these Terms of Reference. This proposal should be in two parts: Technical and Financial components. The Technical component should present the following information: A brief discussion indicating the bidder s understanding of the needs of the project; A brief analysis of key issues; A methodological discussion of how the bidder proposes to address those needs including assessment of key issues, analytical strategies that will underlie the project, specific techniques to be utilised, and practical discussion of possible limitations in carrying out the project; A detailed work plan that specifies activities to be undertaken, expected outputs and deliverables, resources to be utilised and timing; Staffing and management plan; A discussion on how measures to ensure the future sustainability of the outcomes of the project will be addressed; CVs of all proposed experts; Brief discussion of firm s past experience in undertaking similar work and brief summaries of all projects undertaken. The Financial component should specify professional fees of experts, in US dollars. Other costs for experts and participants such as reimbursable expenses for airfare, other travel costs and daily subsistence allowance for workshops, meetings, and all other agreed activities will be discussed with the preferred contractor during the finalisation of the scope of services. Costs will be based on prevailing ASEC rates. Page 8 of 9

9 X. Submission of Application Applicants should send via and mail/courier 4 (four) printed copies of their application with a cover letter, materials specified in Section IX above and other supporting documents to ASEAN Australia Development Cooperation Program II, ASEAN Secretariat 2nd Floor, Jl. Sisingamangaraja 70A, Jakarta 12110, Indonesia, indicating Study on Establishing an ASEAN Telecommunications Single Market Post-2015 as the subject no later than 29 July :00pm Jakarta time. Please note that only short-listed candidates will be notified. Any queries on the TOR should be sent to contact@aadcp2.org with the subject line: Study on Establishing an ASEAN Telecommunications Single Market Post-2015 XI. Additional Notes on Terms and Conditions of the Project 1. Any future studies/reports/analysis in any form of intellectual property rights (including but not limited to patents, copyright and any related rights) submitted by the Contractor to ASEAN arising out of or in connection to the services performed by the Consultant to ASEAN shall belong to ASEC under the name of ASEAN only; 2. Successful bidder shall agree to be bound and sign the Special Services Agreement (SSA) with all requirements under the terms and conditions provided therein, including but not limited to the AADCP II Guidelines for the Contractors attached to the SSA. 3. As an intergovernmental organisation, ASEAN shall not be responsible for any tax(es), levy, tax claim or any tax liability which may be imposed by any law in relation to any amount payable by the ASEAN Secretariat. Page 9 of 9

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