Docstoc

ENCIP - MEDA Telecom Project New

Document Sample
ENCIP - MEDA Telecom Project New Powered By Docstoc
					      Telecommunications & Post Regulatory Authority                arpt
                        www.arpt.dz                                Algeria



            The ITU / BDT Arab Regional Office




1st Telecommunication Regulatory Meeting for the Arab Region
          Algiers, Algeria 19th – 21st April 2003




        «Overview of Arab National
         Regulatory Authorities &
        Perspectives on Regulation »


                     Paper presented by Professor S.M. BOUCHENAK
                                 Council member of ARPT




                                                                             1
                                                                     arpt
                                                                   Algeria


              TABLE OF CONTENT (1/2)


•  Basic Organisation Models for National Regulatory Authorities (NRA)

•  Scope of the Regulatory Portfolio (Benchmark between arab NRAs)

•  Principles of Good Regulatory Decision-Making

•  Providing for Effective Regulation

•  Role of the Regulation in the Transition to a Competitive Market




                                                                             2
                                                                  arpt
                                                                Algeria


              TABLE OF CONTENT (2/2)



•  Telecommunications Overview in Algeria

•  Key Guiding Principles of the Telecommunications Sector Reform

•  Major Global Telecommunications Sector Reforms and Associated
    Objectives

•  Key Operational, Advisory and Supporting Functions of the Regulatory
    Authority

•  Conclusion




                                                                           3
                                                               arpt
                                                             Algeria

             Basic Organisation Models For National
               Regulatory Authorities (NRA) (1/6)


• BASIC ORGANISATION MODELS

1- NRA as integral part of the government

    • As a ministerial Department (i.e. Japan)

         Ministry of Communications
         Ministry of Posts & Telecommunications (or PICT)
         Ministry of Transportation & Communications

    • As a subordinated authority to a ministry




                                                                       4
                                                                               arpt
                                                                             Algeria


            Basic Organisation Models For National
              Regulatory Authorities (NRA) (2/6)


2- NRA as independent regulator

     Organisational independence

        Independence from those who are regulated
        Administrative acts or decisions by the NRA may only be appealed before court
        Only President of NRA is in charge of internal structure & organisation of NRA

     Political independance

        No case-by-case intervention by the government into regulatory decisions
        No intervention from the legislative branch
        Secondary legislation (decrees, ordinances) may be passed by the Government




                                                                                          5
                                                                                                                    arpt
                                                                                                                  Algeria


                                Basic Organisation Models For National
                                  Regulatory Authorities (NRA) (2/6)
                                                Integral     Part of                                                Integral     Part of
                                  NRA as      Government                                              NRA as      Government

                                  Indepen         As a         As a                           No      Indepen         As a         As a
                         No         Dent       Ministerial   Subordina                      Regula      Dent       Ministerial   Subordina
N°         COUNTRY     Regula     Regulator   Department        ted      N°    COUNTRY       tor      Regulator   Department        ted
                        tor                       (1)        Authority                       Yet                      (1)        Authority
                                  With full                     to a                                  With full                     to a
                        Yet      autnomy &                    Ministry                               autnomy &                    Ministry
                                  financial                                                           financial
                                  indepen                                                             indepen
                                    dence                                                               dence

01         ALGERIA                 ARPT                                  01    PALESTINE

02         BAHRAIN                                              TRA      02     QATAR                                              RRIAD

03         DJIBOUTI                               OPT                    03     SAUDI                                               SCC
                                                                                ARABIA
04          EGYPT                                               TRA
                                                                         04    SOMALIA
05          IRAQ        MTC
                                                                         05     SUDAN                                               NTC
06         JORDAN                                               TRC
                                                                         06     SYRIA                                 STE
07         KOWEIT       MC
                                                                         07     TUNISIA                                             INT
08         LEBANON      MT
                                                                         08   UNITED ARAB
09          LYBIA      GDPT                                                    EMIRATES
10     MAURITANIA                                               ARE      09    UNION OF                              SNPT
                                                                               COMORES
11         MOROCCO                                             ANRT
                                                                         10     YEMEN
12          OMAN                                                TRA

     (1)      Ministry of Communications – Ministry of Posts & Telecommunications –                    DATA SOURCE : ITU 2003
              Ministry of Transportation & Communications
                                                                                                                                      6
                                                                             arpt
                                                                           Algeria


       Basic Organisation Models For National
         Regulatory Authorities (NRA) (3/6)

 Financial independence

    Budget directly adressed to Parliament or
    « Self »-financing by administrative fees or industry contributions

 Personal independence

    Government should appoint the President or Chairman of NRA for a
      relevant period of time
    Criminal conviction is the only grounds for dismissal of the
      Chairman
    There should be a grace period before Directors of the NRA may
       take a post in the regulated industry if at all
    Directors and other members of staff may hnot have any other job




                                                                                     7
                                                                                 arpt
                                                                               Algeria

              Basic Organisation Models For National
                Regulatory Authorities (NRA) (4/6)


3- Partial or comprehensive responsability of NRA

      « Pure » NRA model : NRA is in charge of all regulatory functions of telecom
                             regulation (like in Algeria)

      Some regulatory functions may be exercised by specialised agencies or
        institutions, like e.g.

         frequency management (Algeria)
         numbering

      Government may keep some regulatory functions within a Ministry, like e.g.

         frequency management
         numbering
         licencing (Algeria)




                                                                                         8
                                                                          arpt
                                                                        Algeria

             Basic Organisation Models For National
               Regulatory Authorities (NRA) (5/6)



      Remaining Governmental functions which cannot or should not be
       exercised by NRA

         formulation of telecommunications policy
         preparation of legislation
        Governmental ordinance on e.g.
               universal service
               frequency management
               licencing etc.

         international representation

4- Portfolio of NRA

      Concentrating on telecommunications vs. Multi-sector responsability




                                                                                  9
                                                   arpt
                                                 Algeria

        Basic Organisation Models For National
          Regulatory Authorities (NRA) (6/6)



 Including related fields of business, like

    posts (e.g. Germany, Algeria, Mauritania)
    media (e.g. USA, Switzerland)

 Part of a general utility regulation, like

    energy (electricity, gas)
    transportation
    water
    railways




                                                           10
                                                                                                     arpt
                                                                                                   Algeria


                      Scope of the Regulatory Portfolio (1/2)



In the Arab countries, governments have acknowledged the need for
a regulatory body with well-defined responsabilities and powers.

Organisation of national regulatory authorities (NRA) in the Arab region,
 roughly 50% concentrate on telecommunications only; others are also
responsible for regulationg postal services.
A « pool » of regulatory tasks (such as price regulation, numbering, etc)
is carried out by all regulators in the Arab region.


               Price        Control of Anti-   Monitoring   Monitoring    Numbering   IX Network   Accounting
               Regulation   Competitivity      Quality      Market Dvpt               Access       Separation-Cost
                            Behaviour                                                              Control

 All
 Countries




         YES



                                                                                                                     11
                                                                                                               arpt
                                                                                                             Algeria


                           Scope of the Regulatory Portfolio (2/2)



N°    COUNTRY     Only    Licen   Frequ   Inter   Secu    Cons     N°    COUNTRY    Only   Licen      Fre    Interna   Secu    Consu
                  Telec    sing    ency   natio    rity   umer                      Tele    sing    quency    tional    rity    mer
                   om             Manag    nal    Issu    Prot                      com             Manage    Issues   Issu    Prote
                                  ement   Issu      es    ectio                                      ment                es    ction
                                           es               n
                                                                   13   PALESTINE
01    ALGERIA
                                                                   14     QATAR
02    BAHREIN
                                                                   15     SAUDI
03    DJIBOUTI                                                            ARABIA

04     EGYPT                                                       16    SOMALIA

05      IRAQ                                                       17     SUDAN

06    JORDAN                                                       18     SYRIA

07    KOWEIT                                                       19    TUNISIA

08    LEBANON                                                      20     UNITED
                                                                           ARAB
09     LYBIA                                                             EMIRATES
10   MAURITANIA                                                    21    UNION OF
                                                                         COMORES
11    MOROCCO
                                                                   22     YEMEN
12     OMAN

                                                                                                   Data Source : ITU 2003
         YES              Postal Services & Telecoms              Countries not having Regulator body yet
         NON




                                                                                                                               12
                                                                             arpt
                                                                           Algeria

                Principles of Good Regulatory
                    Decision-Making (1/2)



• Transparency: is a safeguard for legitimacy & efficiency

•   Objectivity;

•   Accountability: NRA should be responsible for the legality of its actions

•   No conflict of interests: NRA should have no other functions

    Professionalism and expertise: learning by doing necessary & essential.
                               Benchmark & comparison as an important input
•   Efficiency; and

•   Independence (institutional autonomy): Organisationally, financially,
     politically and personnal(Chairman or President & other members should
     be appointed by Government




                                                                                     13
                                                                 arpt
                                                               Algeria

               Principles of Good Regulatory
                   Decision-Making (2/2)


1.   Decisions must be within legal authority of regulator
2.   The regulator must consider all relevant matters and disregard
     irrelevant ones
3.   Decisions must be made in good faith and for proper purposes
4.   Factual inderpinnings of decisions must be based on evidence
5.   Decisions must be reasonable
6.   Those affected by a decision must be accorded procedural fairness
     (including the right to respond to prejudicial arguments and evidence
     that may be taken into account)
7.   Government policy must be properly applied
8.   Independent regulators must not act on the direction of other persons



                                                                             14
                                                                 arpt
                                                              Algeria


             Providing for Effective Regulation



1- Need for a solid regulatory framework

        Sector-specific rules (rules should be clear, transparent,
           non-discriminatory, consistent, sufficiently encompassing)
        Competition

2- Need for an effective NRA

         Independence
         Accountability
         Adequate resources




                                                                        15
           arpt
                                                                        Algeria
               Role of the Regulation in the
           Transition to a Competitive Market 1/3


• In the transition from state-owned monopolies to private led and increasingly
  competitive market structures in telecommunications, poor performance of
  NRAs limits the benefits of reform, especially in countries with a tradition of
  weak governance.

   Bearing in mind that the main objective is not a successful NRA but a
   well-performing sector.

• In the transition from state monopoly to private (or Public-Private Partnership)
  and competitive market structures, regulation is needed to promote the public
  interest for several reasons:

     • Containing abuse of market power. The former state monopoly is
       likely to remain the largest operator for some time. Customers should be
       protected from abuse of this market power, typically reflected in high
       prices, insufficient supply, poor service quality and reliability, slow repairs,
       slow introduction of new services, inaccurate and incintestable bills, and
       corrupt practices in allocating scarce services. New service providers must
       also be protected.


                                                                                          16
                                                                         arpt
                                                                       Algeria

               Role of the Regulation in the
           Transition to a Competitive Market 2/3


• Forestering competition. This means action on 4 fronts:

   Unless all regulatory barriers to entry and competition are dismantled at the
    outset, someone must decide from time to time how many operators can enter the
    market, who can enter the market, and under what conditions.
   New entrants need access to scarce resources initially controlled by the incumbent-
    most critical: the radio spectrum, telephone number blocks, and rights of way.
   Developing effective competition hinges on new entrants’ability to access the
    incumbent’s customers and to use parts of the incumbent’s network at prices that
    reflect costs. Thus interconnection between new and established operators is as
    the heart of the competition agenda.
   Constant vigilance is needed against anticompetitive behavior, particularly by the
    incumbent (cross-ownership among operating companies, limitations on resale,
    conditioning of sales) but also by fast-growing new entrants.




                                                                                     17
                                                                        arpt
                                                                      Algeria

        Role of the Regulation in the
    Transition to a Competitive Market 3/3


   Creating a favorable investment climate. Investors need to be
    convinced that the rules of the game under which they are investing can be
    relied on. In particular, they need to be confident that their investments
    will be safe from de facto espropriation through arbitrary changes in prices,
    taxes, and service obligations.

   Narrowing development gaps. A fully commercial approach to
    telecommunications will go a long way toward meeting development
    objectives, including extending access to rural and low-income urban
    areas. But gaps in meeting universal service goals are likely to remain,
    calling for public sector initiatives or financing to complement or catalyze
    those of the private sector.




                                                                                   18
                                                                   arpt
                                                                  Algeria

          Telecommunications Overview in Algeria (1/2)



            Statistics of the Post           31/12/1999          31/12/2002
        & Telecommunications Sector     (Before Sector Reform)
1- Population of Algeria                    > 31 000 000         > 33 000 000
2- Fixed Telephony
 Equipment                                  2 510 000            2 800 000
 Number of subscribers                      1 798 000            2 066 000
 Instancies                                  890 000              716 000
 Fixed teledensity /100 inhabitants            5.8                  6.6
3- Mobile Telephony
 Equipment                                   300 000              740 000
 Number of subscribers                    95 000 (A+D)            450 000
 Mobile teledensity /100 inhabitants       Below 1%                1.62%
4- Internet
 Number of ISPs                                10                    74
 Number of internauts                        350 000              500 000
 Number of cycafés                            > 100                3 000
5- Radio users                                 1 000                1 200
(A+D) : Analog + Digital
                                                                              19
                                                                                     arpt
                                                                                    Algeria

                Telecommunications Overview in Algeria (2/2)



                 Statistics of the Post                         31/12/1999          31/12/2002
             & Telecommunications Sector                   (Before Sector Reform)


6- Transmission Network
   Number of Digital circuits                                   160 000              183 000
   Optical fiber filament (kms)                                  11 686               14 800
   Channels of digital FH (hertzian bandles – kms)               22 243               23 400
   Number of Satellite stations                                     49                   49
   VSAT network (number of stations)                              1000                 1000
   Number of Rural radio for 1400 connected localities             136                  136
   Stellite Network
       International stations (Intelsat-Arabsat-Domsat)            03                  03
      Costal station (Inmarsat Ltd)                                01                  01




                                                                                                20
                                                                                                            arpt
                                                                                                          Algeria

                                           NMT & GSM Subscribers Evolution
                                                1994 – February 2003



                                                         Trends of Mobile Subscribers


                        600000
Number of Subscribers




                        500000

                        400000
                                                                                                                 GSM
                        300000
                                                                                                                 NMT
                        200000

                        100000

                                 0
                                 1994     1995    1996    1997      1998      1999   2000   2001   2002    Fev
                                                                                                          2003
                                     Trends of incumbent operator          Year



                                                                                                                       21
                                                                            arpt
                                                                           Algeria

                                 Fixed Density Vs Mobile Density
                                       – MEDA Countries -



                                                20 .93
            20 .43



                                                      16 .8
                                                                                Algeria
                         14 .4                                                  Egypt
        13 .45                              13 .1                               Jordan
                                                                                Lebanon
                     10.51 10 .68
    9 .61                                                                       Morocco
                                                                                Palestine
                                                                                Syria
6 .09                                                                           Tunisia
                                        4 .65
                 4 .08                                             3 .93
                                                            2.79

                                    0 .64                      0 .49



Fixed Density ( per 100Mobile Density ( per 100
             inh )                                  inh )


                 Source : ENCIP / IDATE
                                                                                            22
                                                                        arpt
                                                                       Algeria

                 Algeria Telecom Network
                   Internet Architecture




              8 Mbps                                            8 Mbps           14 sites

   14 sites                           ATM 34 Mbps
                   ALGIERS                                          ORAN
     8 Mbps                                                                 8 Mbps

                             ATM 34 Mbps              ATM 34 Mbps
          144 Mbps


                                    CONSTANTINE

                         8 Mbps                            8 Mbps
Internet

                                           17 sites

                                                                                   23
                                                  arpt
                                                 Algeria

               Internet Density Vs. PC Density
                    (per 100 inhabitants)




40                                         30    Internet
                                           25    Density (per
30
                                           20    100 inh)
20                                         15    PC Density
                                           10    (per 100 inh)
10
                                           5
    0                                      0
                 t




                         ta
     ia




                                      ia
                              e
               an
              yp




                              in
                      al
  er




                                     is
            rd
            Eg




                            st
                     M




                                      n
lg




                                   Tu
          Jo




                          le
A




                        Pa




Source : ENCIP / IDATE

                                                            24
                                                                                    arpt
                                                                                  Algeria

                  Development Indicators for ICT
             (Information & Communication Technology)




3000                                                                   80       Fixed lines per 100
                                                                                inhabitants (year
                                                                       70       2000)
2500
                                                                       60       Internauts per 10 000
2000                                                                            inhabitants (year
                                                                       50
                                                                                2000)
1500                                                                   40
                                                                                Turnover
                                                                       30       Telecoms/NP (year
1000                                                                            1998)
                                                                       20
 500                                                                             Telecom
                                                                       10       investment/BFF (year
                                                                                1998)
   0                                                                   0
                                                                                GSM per 100
                  t




                                                     y
       ria




                                    ly




                                                             E
                           co
              yp




                                                                                inhabitants (year
                                                  an


                                                           UA
                                Ita
                          ro
    ge


             Eg




                                                 m




                                                                                2000)
                      or
  Al




                                             er
                      M




                                             G




              Database : ITU, UPU        -       Trends of incumbent operator
                                                                                                      25
                                                                arpt
                                                              Algeria

                 Key Guiding Principles of the
              Telecommunications Sector Reform




 In its program adopted January 24th, 2000, the Algerian Government
  has decided to engage itself in a strong reform process of the post &
  telecommunications sector in order to move Algeria towards the 21st
  century information society.

 Liberalization of telecommunications and post services sector has
  officially started since august 5th, 2000, with promulgation of the law
  n°2000-03 setting general rules related to post and telecommunications.




                                                                          26
                                                                                   arpt
                                                                                 Algeria

                       Assistance Projects by International
                       Institutions financing NICT in Algeria


Algeria has benefited financial resources from international institutions such as :

                     Development of technological parks
  World Bank         Improve competitivity of small & medium firms
                     Promote commercial electonic & government electronic
African Bank of      Realisation of a telemedecine network in 2003
 Development
                     Training of staff and supply of mobile stations
                     Technical assistance for:
                          Promoting a national strategy policy
                          Elaborating a regulatory and legislative framework
MEDA II (EU)              Staff training in the NTIC scope
                          Creating & supporting E-government projects
                          Encouraging the creation & the operation of a
                           professional association of NICT.

                                                                                           27
                                                                                          arpt
                                                                                        Algeria

                 Major Global Telecommunications Sector
                 Reforms and Associated Objectives (1/5)


1- Reorganization of the Regulatory Framework
      a) Legislative Reorganization.

            The new law (N°2000-03 of august 5th, 2000) aims in particular to:

            • Develop and provide quality services of telecommunications and post under objectives
              conditions of transparency and non-discriminatory competition;
            • Define general conditions of operation in the field of post and telecommunications for
              operators;
            • Define regulatory framework;
            • Create conditions for separated development of postal and telecommunications
              activities;
            • Define the institutional framework for the creation of an autonomous and independent
              regulatory authority.

      b) Regulatory Reorganization.
A series of decrees ( 25 since may 3rd, 2001) were adopted or in the process of adoption related to
tarification, price regulation, high points, interconnection, universal service, operation regimes and
frequency management, etc.
                                                                                                       28
                                                                                      arpt
                                                                                   Algeria


             Major Global Telecommunications Sector
              Reforms and Associated Objectives (2/5)



2- Market Liberalization & Other Fundamental Targets
• Progressive liberalization of all market segments and in particular the privatisation of Algérie
 Telecom (the incumbent operator).
• Liberalization of telecommunications & postal sector, competition and promotion to private
 investment and in particular the allocation of GSM licences to private sector, open competition
 on the fixed telephony market;
• The opening of the incumbent operator capital to a strategic investor followed by an
 introduction on the stock market;
• Protection and development of the universal service (SU) system on the hole national territory.

3- Institutional Reorganization
A Stable and transparent Regulatory Framework
 A modern regulatory framework has been put in place in Algeria in order to distinguish the
 several roles of the State. The law 2000-03 set the general principles for the
 telecommunications and postal sector :


                                                                                                 29
                                                                                     arpt
                                                                                   Algeria

               Major Global Telecommunications Sector
               Reforms and Associated Objectives (3/5)


    •   Separation of telecommunications activities and postal activities; and creation of
        « Algérie Telecom » as a joint- stock company and « Algérie Poste » as an industrial &
        commercial public company;
    •   Creation of a national regulatory authority (Telecommunications & Post Regulatory
        Authority – ARPT);
    •   Separation of operation activities (Algérie Telecom) and those of regulation and control
        activities (ARPT) by split of the ministry of posts & telecommunications (MPT) who will
        be in charge mainly of sectorial policy.


4- Transparency in the Application Reform

       Contracts (recruitment of consultants or licence allocation) is done under competitive
        scheme and complete transparency;
       Public is kept informed of the reform process.




                                                                                                   30
                                                                                     arpt
                                                                                   Algeria

                 Major Global Telecommunicatons Sector
                  Reforms & Associated Objectives (4/5)


    Reforms                                      Major objectives
 Privatisation of      Attract financing to expand telecommunications infrastructure
      PTTs             Increase sector efficiency, introduce new services
                       Generate government revenues from privitazition proceeds
                       Expand range of services, serve unserved markets
  Licensing of         Increase sector efficiency through competition
  Competitive          Decrease prices, improve range and supply of services
   Operators           Stimulate innovation and introduce advanced services
                       Generate government licensing revenues
 Introduction of       Increase success of licensing processes & governnment credibility
  Transparent          Increase government revenues from licensing new services
   Regulatory          Increase market confidence, attract more investment
    Processes
    Mandatory          Remove barriers to competition
Interconnection &      Promote competition in advanced services (e.g. broadband internet)
  Unbundling of
      PSTN
                                                                                             31
                                                                                       arpt
                                                                                      Algeria

                Major Global Telecommunicatons Sector
                 Reforms & Associated Objectives (5/5)



      Reforms                                        Major objectives
                            Better incentives for efficient service supply by dominant firms
Price Cap Regulation        Simpler method that ROR regulation to prevent excessive pricing
                            Reduce regulatory lag; ensure timely price adjustments

 Targeted Universal         Increase efficiency and effectiveness of universally policies
   Access Funds             Replace less transparent and potentially anti-competitive cross-
                              subsidies
Removal of Barriers to      Increase investment in telecommunications sector
International Trade in      Improve competition in telecommunications markets
 Telecommunications         Improve global communications




                                                                                                32
                                                                                                    arpt
                                                                                                  Algeria

                  Key Operational, Advisory & Supporting
                 Functions of the Regulatory Authority (1/4)



• ARPT, created by law n°2000-03, is an independent institution with a financial autonomy and moral
  personality;
• The law defines the internal organization of ARPT as it follows :

             A Council composed of 7 members including the President, appointed by the President of
              the Republic;
             A Director General appointed by the President of the Republic. This Director is in charge
              of management and operation of the Regulatory Authority.

• Law garantees the independency of the Authority, and stand by in particular to the absence of control or
  tutelage of Authority’s activities by operation;
• The role of ARPT is to support the realisation of objectives defined by the law in terms of liberalization and
  competition development of the telecommunications and postal sectors (i.e. to encourage competition, to protect
  the end-users and to regulate the sector in a non-discriminatory and transparent way);
• Dispositions particuliarily innovating in the law 2000-03, give to ARPT a status, powers and responsabilities
  that are totally diferent from any other public organization in Algeria;



                                                                                                            33
                                                                                     arpt
                                                                                    Algeria

           Key Operational, Advisory & Supporting
          Functions of the Regulatory Authority (2/4)



• The status « sui generis » was granted to ARPT and provides two (2) essential garantees :

  Impartiality as a pledge. The sui generis status gives State’s will to dissociate its activitiy of
   regulation from that of operator;
  Optimization of transparency, management, procedures rapidity and adequacy of
   decisions.

The choice of the sui generis status is the first step towards the adoption of modern regulatory
tools in Algeria.
Moreover, ARPT will have the necessary regulatory tool to comply with its missions.

ARPT insure the following missions :

• Strategic regulation : (some attributions are shared conjointly with the ministry of posts &
   telecommunications) which allows to fulfill reform sector objectives;
• Functionnal activities;
• Legal and economic regulation;
• Internal administration.

                                                                                                   34
                                                                                            arpt
                                                                                           Algeria

                    Key Operational, Advisory & Supporting
                   Functions of the Regulatory Authority (3/4)



    ARPT missions are :

    1.   Monitoring & decisions
    2.   Consultancy & representation
    3.   Authority & control
    4.   Consulting missions
    5.   A role of arbitration (dispute resolution).

            Key Operational Functions                       Advisory & Supporting Functions
 Licensing                                             Public relations & information (publications
 Frequency management & allocation                      & public statistics)
 Price regulation                                      Consumers affairs

 Control of anti-competitive behavior                  Finance & administration

 Monitoring quality, market development                Human resources

 Prevention of monopoly abuses                         Economics & strategy

 Control


                                                                                                        35
                                                                                            arpt
                                                                                          Algeria

                Key Operational, Advisory & Supporting
               Functions of the Regulatory Authority (4/4)



            Key Operational Functions                   Advisory & Supporting Functions
 International regulations (WTO, ITU, etc..)    Legal affairs
 Dispute resolution (arbitration)               Licensing, suspension, cancelling or renewal

 Interconnection & network access               Telecommunications law opportunity

 International issues (radio & standards)       Broader policy objectives & strategy of the sector

 Establishing the numbering plan                Maximum prices & tariffs of universal service

 Equipment conformity approval

 Approvals & authorizations

 Spectrum

 Accounting separation

 Annual report




                                                                                                       36
                                                                                       arpt
                                                                                     Algeria

              Key Guiding Principles for Effective
                   Regulation by ARPT (1/3)


                         Organisational independence
       ARPT              Political independence

         as              Financial independence

Independent Regulator    Personal independence (Council members & DG are appointed by The

                          President of the Republic) all Council members, DG, Directors & other
                          members have no any other job
                         ARPT is in charge of all regulatory functions of Telecom & Post
                          regulation except for frequency management regulatory function which is
                          exercised by the National Agency of Frequency (NAF)
       Partial           Remaining Governmental functions which cannot or should not be

  or Comprehensive        exercised by ARPT:
   Responsability             Formulation of P&T policy
      of ARPT                 Preparation of legislation
                              Governmental ordinance on universal service, frequency
                                management, licensing,etc.



                                                                                                  37
                                                                                       arpt
                                                                                      Algeria

                Key Guiding Principles for Effective
                     Regulation by ARPT (2/3)



Portfolio of ARPT            Concentrating on post & telecommunications vs. Multi-sector
                              responsability
                             ARPT has no other functions than those attributed by the law
No Conflict of Interest       2000-03
                             No separation of operational and regulatory functions of ARPT
                          Independence (Political)
Protection from            No case-by-case intervention from Government or Parliament into
Political Interference      regulatory decisions
                           Politics set framework for legislation and secondary legislation

                             Learning by doing necessary and essential
                             International benchmark and comparison as an important input
Expertise                    ARPT recruits experts from industry including the incumbent
                             ARPT develop its own skills by recruitment policy and training
Institutional                Independent regulator
Independence

                                                                                                38
                                                                                     arpt
                                                                                    Algeria

           Key Guiding Principles for Effective
                Regulation by ARPT (3//3)

                  Publication of decisions
                  Public consultation with interested parties on major decisions or

                   policy approaches
                  Publishing activities (e.g. annual report)
Transparency
                  Public access to ARPT’s budget

                  Codes of conduct

                  Rules of practice and procedure

                         Transparency is a safeguard for legitimacy and efficiency of
                           the regulator
                         Transparency helps to avoid regulatory capture
                  ARPT is responsible for the legality of its actions
                  Annual reporting to Government, Parliamentary and to the « Audit

                   Office » on decisions and activities
Accountability
                  Necessity to react upon complaints of users (private, commercial,

                   public), competitors and the incumbent
                  Decisions (only) to be appealed by the « State Council »




                                                                                              39
                                                                                                                                                 arpt
                                                                                                                                               Algeria



                                            Internal Organisation of ARPT


                                                                           COUNCIL
                                                                      President of Council

                                          Communication & Protocol Cell

                                                                           Director General

                                                        Legal Department




         Direction                          Direction                          Direction                           Direction                       Direction
Administration et Ressources          Réseaux et Services de                    Poste                    Interconnexion et Nouvelles        Economie et Concurrence
         Humaines                      Télécommunication                   (3 Départements)                       Technologies                 (4 Départements)
     (3 Départements)                   (3 Départements)                                                       (3 Départements)

     Dpt. Budget Moyens Généraux        Dpt. Opérateurs et Préstataires        Dpt. Postes aux Lettres          Dpt. Veille Téchnologique           Dpt. Documentation


    Dpt. Comptabilité et Trésorerie         Dpt. Ressources Rares          Courrier Accéléré International    Dpt. Normalisation et Agrément     Dpt. Audits et Evaluations
                                                                                                                                                       Economiques

      Dpt. Ressources Humaines          Dpt. Projets Services Universels   Dpt. Projets Services Universels        Dpt. Interconnexion          Dpt. Concurrence et Marchés


                                                                                                                                                Dpt. Planification du Service
                                                                                                                                                          Universel



                                                                                                                                                                     40
                                                                         arpt
                                                                       Algeria



                         Financing of ARPT


Financial resources of ARPT are as follows:

Administrative fees from

          Licensing
          Frequency allocations
          Number allocations
          Universal service contribution by operators of the sector
          Editing & printing of documents published by ARPT
             (public reports in particular)
          Contribution of operators to the financing of research,
             training & standardization of the telecommunications sector
          Rendered services
          Non-recurring or recurring
          Equipment approval of the sector (P&T).



                                                                                 41
                                                                                        arpt
                                                                                      Algeria

                            Scheduled Activities of ARPT
                      in the Short – Medium & Long Runs (1/2)


Since May 3rd 2001, ARPT dedicated its time to the realisation of a sectorial reform program for
the Algerian government published in the sectorial policy declaration (SPD) and the set up of an
agenda which should allow a progressive liberalization of all telecommunications market segments.

                       Calendar of Activities                    2001   2002   2003    2004     2005
1.    Sale of a 2nd GSM licence……………………………………………                 ▅▅ 7
2.    Liberalisation of value added services (VA)…………………….        ▅▅
3.    Attribution & regularisation of > 1200 authorizations of
      radioelectric networks (internal networks)…………………….        ▅▅     ▅▅
4.    Authorizations of 74 ISP and 110 websites…………………….         ▅▅     ▅▅
5.    Attribution of 2 authorizations for exploitation of
      international express mail…………………………………………..
                                                                        ▅▅
6.    Sale of 2 VSAT licences……………………………………………….
                                                                               ▅▅ 3
7.    2 operators GMPCS……………………………………………………
                                                                                ▅▅
8.    1 or 2 new operators GSM (1st term)……………………………
                                                                                       ▅▅
9.    Liberalisation of rural telephony …………………………………
                                                                                ▅▅
10.   Liberalisation of long distance telecommunications …………
                                                                               ▅▅ 3
11.   Liberalisation of international calls (telecoms)………………..
                                                                               ▅▅ 8
12.   Liberalisation of local loop unbundling…………………………..
                                                                                       ▅▅ 3
13.   Liberalisation of fixed telephony………………………………….
                                                                                        ▅▅
14.   Full & complete liberalisation of telecoms market……………
                                                                                                ▅▅
                                                                                                     42
                                                                                 arpt
                                                                               Algeria

                     Scheduled Activities of ARPT
               in the Short – Medium & Long Runs (2/2)


              DEREGULATION LONG TERM PROGRAM


                      Calendar of Activities                     2003   2004   2005
1.   Liberalization of Basic Voice Services….…………………………          ▅▅
2.   Liberalisation of International Voice Services………………….      ▅▅
3.   Universal Service Obligation & Implementation……………….        ▅▅
4.   Full & Complete liberalization of the Telecoms sector……….                 ▅▅




                                                                                         43
                                                                       arpt
                                                                     Algeria



                    Market Evolution (1/2)


           MOBILE OPERATORS IN ALGERIA

                           Algerie Telecom/       Orascom Telecom Algerie
                                Mobilis                (OTA)/Djezzy
      Ownership          Algérie Telecom (100%)    Orascom Telecom (51%),
                          (Incumbent operator)      Private investors (49%)

Date of launch of GSM            1999                   February 2002
       Services
Numbers of subscribers     95 000 at end 2001        315 801 at end 2002
                          135 204 at end 2002
    Market share           100% at end 2001          68.5% at end 2002
                           31.5% at end 2002
                          Network expansion to     Investment plan of 300
Network development        reach a capacity of     million USD by 2003 and
                           500 000 subscribers     500 million USD by 2006


                                                                               44
                                                                               arpt
                                                                             Algeria



                         Market Evolution (2/2)



   National Telephone Services

   A program is launched to extend and modernise the network with a view to
    reaching a teledensity of:
           7 lines per 100 inhabitants in 2002,

           12 lines in 2004

           20 lines in 2010.

           Fixed teledensity for 100 inhabitants in 2002 = 6.6%




   Population of Algeria at the end of 2002    : > 33 000 000 inhabitants
   Mobile teledensity for 100 inhabitants in   2001 = 0.35%
   Mobile teledensity for 100 inhabitants in   2002 = 1.62%
   Mobile teledensity for 100 inhabitants in   2003 = 5.11%



                                                                                       45
                                                                  arpt
                                                               Algeria


                         Conclusion –
                  « Recommanded » NRA model


   A modern NRA independent with a financial autonomy and moral
    personality.
   Absence of control or tutelage of NRA’s activities by operation will
    garantee to NRA to regulate the sector in a non-discriminatory and
    transparent way.
   An independent NRA in charge of all regulatory functions of telecom
    regulation to insure the transition from a monopolistic to a competitive
    market.
   An independent NRA is the best garantee for a Public-Private Partnership
    equilibrium.
   In economies of Developing Countries, the coexistence of public-private
    sector is an absolute necessity for the time being in a transitory period
    (from a monopolistic to a competitive market).
   The role of an independent NRA is enabling and protecting competition in
    transparency.




                                                                           46
                                                  arpt
                                                Algeria


               CONTACTS


TELECOMMUNICATIONS & POST REGULATORY AUTHORITY
                    -ARPT-

               1, Rue Kaddour Rahim
        Hussein-Dey - Algeirs 16008 - Algeria
              Tel : ( + 213 ) 21 47 02 05
             Fax : ( + 213 ) 21 47 01 97
                Website : www.arpt.dz
            E-mail : arpt@postelecom.dz
         E-mail : bouchenak@postelecom.dz
          E-mail : bouchenak_dz@yahoo.fr


                                                          47

				
DOCUMENT INFO