Telecommunications Policies for SADC (Proposal: reword to “ICT Policies for SADC”) Version to stakeholders: 22 March 2010 Current text Proposed changes Reasoning DECISION OF THE SATCC COMMITTEE OF DECISION OF THE SADC COMMITTEE OF MINIS- Reference to correct body / Institution to be inserted MINISTERS TERS (is this the correct current name?) The Telecommunications Policies for SADC has been prepared in conjunction with the The Telecommunications Policies for SADC passed The changes here mirror the reference to the TCM proto- Model Telecommunications Bill for SADC in in 1998 has been reviewed and updated parallel to a col and provide the background of what the project based pursuance of the provisions of Article 10.2, review and update of the Model Telecommunications upon and why the changes were required in a general Chapter 10 of the Protocol on Transport, Bill for SADC in pursuance of the provisions of Article policy context. It still needs to be inserted with respect to Communications and Meteorology. The article 10.2, Chapter 10 of the Protocol on Transport, Com- the reference to the TCM Protocol whether this will be requires SADC Member States to develop a munications and Meteorology (hereinafter: “TCM Pro- done as amendment or annex. common regional telecommunications policy in tocol”). That article in combination with articles 10.6 order to achieve the objective of developing and 10.11 call for a joint policy and regional and in- national telecommunication networks for the ternational co-operation. In this process, also Chapter provision of reliable and affordable telecom- 10 of the Protocol on Transport, Communications and Due to convergence we propose to call this the “ICT Poli- munications services. Meteorology has been reviewed and changes (insert: cies for SADC”. This shall not necessarily embody the amendment or annex) have been proposed to align convergence paper which we have designed separately The Policies and the Bill were developed the Protocol to changes that have taken place in the but it shall signal that the general policy document covers through a number of meetings of experts and technological, legal and economic environment such both sectors. Furthermore, postal issues are not covered. stakeholders and discussed and endorsed by as the market liberalization and convergence of tele- The reasons were discussed at the SADC Technical Sub- the relevant SATCC structures. During their communications and broadcasting. Thereby, the ob- Committee Meeting in Johannesburg. The omission of annual meeting held in Swaziland on 26 June jectives of that common policy as well as the meas- postal issues in the Policy does not limit any institutional 1998 the SATCC Committee of Ministers made ures have been updated and substantially reviewed convergence e.g. by setting up multi-sector regulatory au- the following decisions regarding the two to cover past and likely future developments. Due to thorities which also cover postal issues. It is expected that documents: the acceleration of technical convergence, the docu- such multi-sector regulators even if they are converged approved the Telecommunication Policies for ments refer to the term ICT as the heading for tele- regulators would conduct their work on the basis of differ- SADC as a common policy guideline for adop- communications and broadcasting. ent, non-converged, legislation. tion and implementation at national level; approved the Model Telecommunications Bill The Policies and the Bill were developed through a This paragraph refers to the assumed treatment of the as a guideline in respect of national legislation consultancy project under the umbrella of ITU- (then) final documents in the further sequence of the pro- for implementing the policies referred to above; HIPPSA and the European Community encompass- jects and describes the potential outcome and decision of urged Member States to expeditiously adopt ing discussion with stakeholders (policy makers, the meeting of Ministers. and implement the Policies and the Model regulators, operators, broadcasters, consumer or- Telecommunications Bill in the interest of early ganizations etc.) in the SADC member states, a regional integration and economic develop- number of meetings of experts and stakeholders as ment; well as a validation workshop. The results were dis- urged Member States to establish and submit cussed and endorsed by the relevant SADC struc- to the SATCC-TU, by 31 December 1998, their tures under the guidance of the SADC secretariat. respective time schedules for the national During their meeting held in Angola on 10 May 2010 adoption and implementation of the Policies the SADC Committee of Ministers made the following and Model Telecommunications Bill; and decisions regarding the two documents: directed SATCC-TU to monitor the implemen- a) approved the revised Telecommunication tation of the Policies and Model Telecommuni- (now: ICT) Policies for SADC as a common cations Bill and to report to the Committee of policy guideline for adoption and implementa- Ministers. tion at national level; b) approved the revised Model Telecommunica- tions Bill (now: ICT Bill) as a guideline in re- spect of national legislation for implementing the policies referred to above; c) approved the proposed SADC policy of con- vergence as a common policy guideline for adoption and implementation at national level d) urged Member States to expeditiously adopt and implement the Telecommunications Poli- cies, the Policy on Convergence and the Model Telecommunications Bill in the interest of regional integration and economic devel- opment; e) urged Member States to establish and submit Date to be discussed. It should be noted that this is a to the SADC secretariat by 31 December deadline for informing about time schedules and no dead- 2010, their respective time schedules for the line for implementation. national adoption and implementation of the revised Policies, the Policy on Convergence and the revised Model Telecommunications Bill; and f) directed SADC secretariat to monitor the im- plementation of the Policies and Model Tele- communications Bill and to report to the Committee of Ministers. PREAMBLE PREAMBLE The model policy on telecommunications for The model policy on ICT for SADC provides Member Changes in this paragraph only reflect the issue of con- SADC provides Member States with guidelines States with guidelines to continue to develop tele- vergence by using the term ICT for the combination of to develop telecommunications in their respec- communications and broadcasting in their respective telecommunications and broadcasting. For the omission of tive countries. It is designed pursuant to the countries. It is designed pursuant to the provisions of Postal issues, see above. Not integrating Postal issues provisions of the SADC Protocol on Transport, the SADC Protocol on Transport, Communications into this common legislative and policy document is not Communications and Meteorology. Regional and Meteorology. A deepening of regional integration related to an institutional convergence which may be im- integration is achievable through the adoption is achievable through the adoption and further im- plemented in parallel. and early implementation of common policies plementation of common policies in the region. On in the region. On this account, the model policy this account, the model policy on ICT – now encom- on telecommunications is a useful and persua- passing telecommunications and broadcasting - is a sive instrument. Nevertheless, it is recognised useful and persuasive instrument. Nevertheless, it is that individual Member States have to decide recognised that individual Member States have to on their own respective policies and on the decide on their own respective policies and on the timing for their implementation in accordance timing for their implementation in accordance with with their own circumstances. their own circumstances. The revised policy builds on the previous SADC pol- The preamble can remain largely unchanged in the first icy passed in 1998 and subsequently implemented in part. Additionally, we suggest to add an explanation of the years since then on a national level in the mem- developments over the period since the policy was first ber states. The SADC Member States have achieved adopted and the conclusions from this on the design of progress to a varying degree. The ITU’s ICT Devel- ICT policies. Thereby, the progress made is referenced opment Index (IDI) for Africa shows that in 2007 a and shall serve as an intermediate goal which has been total of six countries from SADC where amongst the achieved and from which further work is initiated. top 10 countries (ranks 1-3 and 6-8), however also 3 countries were ranked nr. 25 and below in a list of a We make reference here to IDI in order to shed some light total of 35 African countries. Also, several SADC on the positive and negative development of SADC mem- countries had dropped in the ranking between 2002 ber states in the ranking. and 2007. The deviations in progress and achieve- ments is also influenced by the fact that some SADC Member States additionally enjoy membership of other regional economic communities (RECs) which have also developed and implemented common poli- cies for e.g. the telecommunications sector in the last decade. Additionally, the SADC member states in the last decade have passed some decisions with re- spect to harmonize national policies respectively to come to a framework that applies across borders. Examples are the “Wireless Technologies Policy and Regulations” in 2006, the “SADC Regional Frequency Allocation Plan for 20 – 3100 MHz” in 2000 and the “Policy Guidelines on Licensing for Telecommunica- tions in SADC” in 2002. Almost 12 years after the adoption of the original pol- One could discuss whether these objectives are needed in icy and a Model Bill it is now time to reflect upon this degree of detail. On the one hand they are very ge- technical, commercial and regulatory changes to be neric and objectives appear several times throughout the integrated in the regional policy for SADC countries. document for various purposes. On the other hand the statement of objectives at the beginning can always serve The objective of the policy is to provide for: as a guideline through the document. a) the regulation and facilitation of information and communication technologies (ICTs) and services sector; b) the further support to the establishment, de- velopment and capacity building of regulatory authorities for the telecommunications and broadcasting sector; c) the further transition towards a liberalised and competitive market in the ICT sector; d) the creation of an environment fostering in- vestment and the broader supply of ICT ser- vices e) facilitation of the development and use of the Internet; f) the facilitation and development of electronic transactions; g) the development and popularisation of infor- mation and communication technologies for the promotion of a knowledge-based society; h) the regulation and facilitation of the broadcast- ing sector in coordination with the telecom- munications sector (“convergence”); Contents TELECOMMUNICATIONS POLICIES FOR INFORMATION AND COMMUNICATIONS TECH- SADC NOLOGIES (ICT) POLICIES FOR SADC INTRODUCTION INTRODUCTION One of the central objectives of the Southern One of the central objectives of the Southern African Like above, the reference to the historic starting point can African Development Community (SADC) is to Development Community (SADC) is to forge links remain unchanged, only clarifications as to where we are forge links among Member States to create a among Member States to create a genuine and equi- today and what the “new” direction is should be included. genuine and equitable regional integration and table regional integration and promote advancement promote advancement of its citizens, thereby of its citizens, thereby raising the quality and standard raising the quality and standard of life and, of life and, consequently, alleviating poverty. The consequently, alleviating poverty. The enabling enabling factors to achieve this goal, such as coop- factors to achieve this goal, such as coopera- eration in infrastructure development, co-ordination of tion in infrastructure development, co- sectoral plans and programmes, promotion of in- ordination of sectoral plans and programmes, vestment and production, and the development of promotion of investment and production, and indigenous contents, have been pursued over the last the development of indigenous contents, are decade with some achievements. However, much still still being harnessed. In fact, telecommunica- remains to be done.. In fact, telecommunications and tions, which is one of the key infrastructures, broadcasting (and the internet which is to be re- has still to progress to the desirable standard. garded as an element of the telecommunications sec- tor) collectively comprising the ICT Sector, are one of A large scale and advanced telecommunica- the key infrastructures, and, although substantial pro- tions infrastructure in SADC, capable of deliv- gress and development is clearly visible, still has to ering info-communications services, is recog- progress further. The achievements can be noticed in In this new part, the current situation is described. State- nised as a pre-requisite for economic growth. the area of market opening, entry of new players and ments with respect to important market forces and drivers The availability of adequate communications the penetration with new technologies in SADC are made. Their consideration is crucial to formulate any links within both individual countries, the region member states. Competition has contributed to this forward-looking policy. Thereby, convergence issues are and internationally is accepted by stakeholders development. Also, the establishment and the deci- highlighted as external factors. Competition is a factor that as an essential instrument to facilitate intra- sions of regulatory authorities has contributed to comes from within SADC due to the measures that have SADC and extra-SADC trade, leading to socio- beneficial results for the region. Furthermore, techni- been undertaken for market opening. economic development. cal progress has led to an increasing partial overlap between business models for broadcasting and tele- Furthermore, the third millennium, which is an communications (convergence) which triggers the information and knowledge-exchange driven usefulness of a common analysis and policy for both millennium, raises the importance of reliable areas. and advanced info-communications services as a key national and regional resource. How- The absence of a number of factors currently inhibits ever, it is acknowledged in the region and con- the further development and application of ICTs. firmed through various studies, including those These inhibiting factors will have to be removed so as of the International Telecommunications Union to enhance SADC’s ICT sector. The driving factors (ITU), that there is a serious inadequacy of that are needed are the following: info-communications capacity. a) A supportive policy, legal and regulatory framework on a regional level; A number of initiatives have been undertaken b) Investment capacity of network and service by several institutions, including the ITU to providers and a framework that ensures legal address this critical problem. One valuable certainty for investment; initiative is the African Green Paper that fo- c) Competition of different technologies and dif- cuses entirely on the problems of telecommu- ferent stakeholders / market players ias well nications in Africa and offers a comprehensive as technology challenges; policy guideline for countries in Africa to har- d) A competitive market which is managed by monise telecommunications sector policies as private operators and service providers and a strategy to develop telecommunications in- which is regulated, where necessary; frastructure and services. e) Technical, legislative and institutional conver- gence; In the same thrust, the SADC Protocol on f) Human Resources Development incl. recogni- Transport, Communications and Meteorology tion and development of skills in ICTs incl. has prescribed the development of a harmo- awareness and literacy of population and po- nised regional policy with the provision of reli- tential users; able, effective and affordable telecommunica- g) Affordability of services for users and Univer- tions services, as its central goal. The Protocol sal access/service; specifies actions that will have to be under- h) Encouragement of research and development taken to transform the state of the national and in ICT; regional telecommunications infrastructures i) Mainstreaming of gender and other empow- from their present state of under-capacity to an erment issues to ensure inclusivity, internali- integrated and advanced info-communications sation, participation and achievement of the network. right to communicate by all; j) Effective participation in regional and global e- The communications revolution, brought about governance; by the rapid ongoing development oftelecom- k) Introduction of modern technologies such as munications technologies, services and appli- to enable inhabitants of SADC countries to cations, presents opportunities to leapfrog to enjoy the benefits of technological progress this desirable high-capacity info-communica- A large scale and advanced infrastructure in SADC, Description of ICT as a crucial factor for the economy tions network to meet the basic and advanced capable of delivering ICT services, is recognised as a overall and the importance of a framework that enables to service requirements of SADC. This revolution pre-requisite for further economic growth. The avail- foster additional investment so that fixed and mobile net- is pushed by rapid convergence of telecom- ability of adequate links to process communications works can grow. munications, information technology and and content within both individual countries, the re- broadcasting technologies, services and mar- gion and internationally is accepted by stakeholders kets. as an essential instrument to facilitate intra-SADC and extra-SADC trade, leading to socio-economic The impact of all this is that all spheres of hu- development. man activity are profoundly affected, causing an urgent need for the development of ad- Furthermore, the developments since the adoption of This again refers to the IDI (ICT indicator) showing sub- vanced national and regional networks that the policy and the Model Bill in 1998, have put the stantial discrepancies between the countries. would create a regional information infrastruc- importance of reliable and advanced ICT services as ture within SADC. This infrastructure would a key national and regional resource further into fo- enable SADC to effectively participate in the cus. The region still suffers from an inadequacy of foreseen Global Information Society (GIS). ICT capacity. Especially investments into the fixed There is, therefore, urgent need for speedy networks (transport / backbone and access) are still development of a coherent regional policy. not sufficient as of today in order to ensure a positive further development of the sector itself and as a mul- Regional policy on telecommunications be- tiplier for other sectors. SADC member states also comes even more crucial in this period of need to overcome the significant differences within globalisation of the world economy, where the community as regards the market situation of ICT. telecommunications is reckoned as both a Therefore, further harmonization is needed. tradable service and transport of info- communications services. In this context, the There continues to exist a need for the development This part points out the need for continued work towards capability of individual countries to participate of advanced national and regional networks. This attracting investments, grow networks and serve residen- effectively in the delivery of services is likely to infrastructure – now contributed by a combination of tial and business consumers. Also, the text points out the contribute to stronger regional co-operation, private sector investment and framework set by the contribution of regional harmonization and policies across leading to two benefits. governments - would enable SADC to effectively par- country borders to facilitate sector development. ticipate in the Global Information Society (GIS). Firstly, a group of countries could combine Therefore, there is a continued need for further de- their strengths, on one hand, to resist competi- velopment of a coherent regional policy as well as tive threats and, on the other hand, to take integration of approaches and regional harmoniza- advantage of the opportunities that emerge in tion. In light of the fact that other RECs in Africa have the global market, such as the transport of passed such new regional policies and legislation international telecommunications or informa- over the past years, action is also needed in SADC to tion traffic. Secondly, the group presents a bring the currently valid documents up to date with larger market to private investors who could other regions. find an opportunity to achieve standardisation and economies of scale, factors that may be By deepening the harmonization of policies and fur- This section describes the general economic advantages decisive in investment decisions. ther integrating fields that were separately treated up of economic integration which can be seen from SADC as until now such as telecommunications and broadcast- well as from the telecommunications policy in the other In this challenging environment, the role of ing SADC could combine their strengths, take advan- regional groups in Africa such as e.g. COMESA and labour takes prominence as a key factor of tage of the opportunities that emerge in the global ECOWAS. competitiveness. In this regard, human re- market, such as the transport of international tele- sources should be accorded greater recogni- communications or information traffic. Secondly, the tion through establishment of an employee group presents a larger market to private investors consultative process on matters affecting them who could find an opportunity to achieve standardisa- by changes taking place in the industry. In the tion and economies of scale, factors that may be de- end, the interest of society must be taken into cisive in investment decisions. This already has be- Here, details are stated with respect to the concrete ex- account in any decision affecting the develop- come visible in other parts of the world where the size pected outcomes of convergence to the countries and the ment of the telecommunications industry. of addressable market, irrespective of country bor- advantages realized by developing an integrated policy for ders, played a crucial role in attracting investment. A ICT. harmonized framework can contribute to such a beneficial outcome for the region. Information-based social and economic development is underpinned by information and communication technologies (ICTs) that support the exchange of information in a network of users in the form of voice, text, photographic im- age, sound, and video. This network comprises a variety of terminal devices, including telephones, re- ceiving devices and computers, connected to an in- formation infrastructure, incorporating broadcasting and telecommunications, of which Internet is an im- portant component. To fulfil the requirements of an information society, This section points to the importance of convergence. This the information technology, broadcasting and tele- issue has to be motivated separately as it is a new facet to communications components have to form part of a be introduced and explanation and reasoning need to be single, integrated network. Institutionally, there has to provided to achieve consensus on such an integrative ap- be close co-ordination if not integration at policy level proach. and, preferably, full integration at the regulatory level. This document formulates a policy for the harmonious Here, the document sets out which areas of priority Mem- development and application of ICTs within member ber States have to focus on in their further steps. The re- states. It is meant to motivate the SADC region to quirement is to be active on different fields and to combine embark on a programme for the further development the efforts of the private sector (operators, service provid- and application of ICTs that will eventually turn the ers, investors) and the public sector (ministries, regulators) SADC into an information society. To achieve, this in order to achieve progress and satisfy demand in the goal the Member States have to modernise their in- market. frastructures, promote the extensive use of tele- phones, computers, delivery, receiving and other in- One could discuss whether to find a new term for tele- telligent devices including the convergence of tele- communications + internet such as electronic communica- communications, the internet and broadcasting, and tions services, but we have refrained from introducing a the development of local content. new term. The policy proposed in this document covers the promotion of the development of telecommunications infrastructure and services. Furthermore, it encom- passes elements of a convergent framework for tele- communications and broadcasting. The institutional regulatory framework proposed ap- At the end, it is pointed out that the SADC policy and the plies to all communications services including broad- Model Bill are the overall framework but that national im- casting, telecommunications, and Internet based ser- plementation as well as further SADC policies on specific vices. However, separate regional policies/guidelines fields may be necessary. Such policy documents already that exist today (such as for interconnection, licensing exist in certain areas (see above) but these documents and tariffs) will have to be revised subsequently. This were also created a decade ago and some fields are still document has to be read in context with the Model lacking a common SADC position. Bill that builds upon the general principles set out in this document. PART 1 PART 1 PROBLEMS AND OBJECTIVES BACKGROUND PROBLEM STATEMENT CHALLENGES AND OPPORTUNITIES The heading has been changed in order to point out up- side and downside potential. The previous wording “Prob- The effort of SADC toward regional integration, The effort of SADC toward regional integration, in the lem” only highlighted the negative aspects. in the light of fundamental changes in tele- light of fundamental changes in ICT technology and communications technology and global market global market processes, is to pursue the economic processes, is to pursue the economic better- betterment of its population. ment of its population. To do so, one of the key enabling factors is an ade- This section presents the positive experience of other re- To do so, one of the key enabling factors is an quate and efficient ICT infrastructure. Today, as in gions with a consistent and supportive ICT policy. Direct adequate and efficient info-communications the past, there is a positive relationship between and indirect effects of fostering a common ICT policy are infrastructure. A number of studies have communications infrastructures (which can be for demonstrated. The positive contributions of telecoms and shown the relationship between telecommuni- different purposes and services) and economic broadcasting are outlined. cations and economic growth. Economic stud- growth and in many developed countries this effect is ies for the ITU, for instance, indicate that each now being relied upon with respect to the desired line added in Africa contributes approximately outcome from investment into so-called Next Genera- US $ 4500 to Gross National Product (GNP). tion Networks in mobile and fixed technology. This brings encouragement with respect to economic Furthermore, statistics on telecommunications benefits by the value added as well as employment development show the large disparity between effects. Furthermore, broadcasting networks enhance the network capacity in Africa and the rest of their technical capabilities to contribute to the same the world. In fact, the network capacity per 100 goals except for also supporting the distribution of inhabitants (telephone density) in Africa is the information to large parts of the population and creat- lowest, compared to other regions, in the ing a public benefit. world. Furthermore, Africa accounts for only 1.8 percent of total telephones (January, 1996) Statistics on telecommunications development show and 0.6 percent of Internet host computers the there still is a large disparity between the network (January, 1997) in the world. This undesirable capacity in Africa and the rest of the world. This un- situation is due to inadequate investment, low desirable situation is due to inadequate investment, priority given to telecommunications and inap- low priority given to telecommunications and institu- propriate institutional arrangement. tional arrangements which – despite some substantial progress that has been made – does not yet address The prevailing level of investment has been all relevant issues in all affected countries. Therefore, insufficient to satisfy demand and the list of despite progress in internet, fixed and line and espe- officially recorded customers waiting for tele- cially mobile penetration, further efforts are needed to phone service is consequently long. The scal- enable countries in Africa to.benefit from the in- ing-up and modernisation of telecommunica- creased use of ICT. tions infrastructure, to meet current and future demand for national, regional and global info- From an investment perspective, telecommunications The possible effects of an intensification of economic ac- communications services, require major capital can have positive direct and indirect effects. The indi- tivity in the telecom sector are highlighted in this section. injection, far above current trends. Unfortu- rect effects are achieved based on the value tele- Thereby, the changed roles of market structure (from mo- nately, domestic, bilateral and multilateral in- communications can bring for other sectors, e.g. by noply to competition) and stakeholders (newly defined rle vestment in telecommunications has been ei- the facilitation of certain business processes etc. Pre- of public policy) is mentioned. Clearly, man countries have ther not forthcoming or grossly inadequate viously, this investment originated from the state opened the telecom markets and handed over investment and, in many cases, declining. budget directly or indirectly from a state-owned in- and the provision of services from state-owned operations cumbent operator. As the market structure has to the private sector. Now, many countries re-invent the From a government’s budget perspective, sec- changed rapidly and significantly, any policy definition role of the state. Especially for the roll-out of next genera- tors, like housing, education and health, usu- needs to take account of the increased private sector tion access networks, in some developed countries a new ally consume a larger proportion of any gov- involvement and thus the need that the private sector strong role of governments can be seen because they are ernment’s budget and demand for funds from incentivized to undertake the necessary investment the only players who can guarantee the financing of large telecommunications is consequently relegated for sector development. This may have to be sup- investments under uncertain conditions. to lower priority. The attitude adopted is that ported by the adequate framework policy. telecommunications enterprises are in a posi- tion to raise funds from their own operation A large scale and modern infrastructure in SADC, In SADC Member States, the role of public policy / Gov- and from external sources. However, at the capable of delivering ICT services, is recognised as ernment and the private sector is different. Here, the pri- same time, the enterprises are not entirely free an enabler and accelerator of economic growth, re- vate sector is in a much superior position to invest substa- to use their earnings as they would wish and gional integration and social development. The avail- nial amounts in the rollout of networks. Such investments cannot get access to external sources without ability of adequate communications links within both naturally require a stable framework to be incentivized. guarantee from government. Consequently, individual countries, the region and internationally is Creating this environment generates a good chance hat the enterprises have had generally to rely en- accepted by stakeholders as an essential instrument the sector will benefit from increased activity again to the tirely on government for their expansion and to facilitate trade. The indirect positive effects of tele- benefit of the whole society. operation with the result that they are out of communications have become visible in the past e.g. phase with market evolution. by the increased use of mobile technologies for larger parts of the population for payment processes etc. To achieve the general policy goals and the desired economic growth, one of the key enabling factors is an adequate and efficient ICT infrastructure. A num- ber of studies have shown the relationship between ICTs and economic growth. The same arguments in general hold true for the This paragraph also points out the growth and positive broadcasting sector. Technical progress has in- effects resulting from the broadcasting sector. creased the interrelationship to the telecommunica- tions sector and both rely to some extent on the same resources to provide their services. It is therefore natural to accept the technical convergence of both sectors and to likewise consider how legislative and institutional convergence could be designed in order to benefit from the developments on the markets. The SADC Member States thrive towards a common A common policy across a larger number of countries is ICT policy as a strategy for the development of the seen as generally positive to achieve the goals. national and regional infrastructures from their pre- sent state of under-capacity to integrated and modern ICT networks. The SADC’s goal is to deepen and broaden the inte- gration process among Member States The Informa- tion and Communications technologies (ICTs) consti- tute a possible lever towards that goal. They offer in fact the ability to connect vast networks of individuals across geographic boundaries. This is why policies and decisions about the promotion of the use of ICT are critical in determining which way to be followed for a faster development. With the recent phenomenon of convergence of tech- It needs to be addressed that ICT policy in SADC member nologies, it becomes imperative to review the existing states also has to cover the topic of a potential benefit for ICT policy and develop further concrete actions with a all inhabitants, which means that the positive contributions view to respond, on the one hand to SADC’s objec- of communications facilities and ICT cannot be an exclu- tives, and on the other hand to the bigger issue of sive benefit for urban areas but that also some considera- how the economically disadvantaged sections of the tion needs to be given to a universally available service. region, particularly in rural areas, which constitute the Such availability can create a huge benefit to formerly dis- majority of the population, will be able to benefit from advantaged inhabitants. new ICT applications considering the twin limitations of ability to pay and lack of sufficient education. It needs to be noted that several SADC Member States already have moved with respect to convergence and Created converged regulatory authorities (“Multi- sector regulators”). This is an important step in the direction of a common policy and regulation for these sectors. The prevailing level of investment has been insuffi- The final statement is the conclusion that investment so far cient to satisfy demand. The scaling-up and moderni- has been insufficient and that fostering investment into ICT sation of ICT infrastructure to provide the requisite is key to fulfil the objectives. bandwidth to meet current and future demand for national, regional and global ICT services, require major capital injection, far above current trends. Un- fortunately, domestic, bilateral and multilateral in- vestment in ICTs has been either not forthcoming or grossly inadequate and, in many cases, declining. The recent economic down turn has worsened the situation. VISION, GOALS AND OBJECTIVES The goal of the SADC policy framework is to promote This could be regarded as a repetition of the text embed- the development and application of ICTs, through the ded above. To be discussed whether it is needed here in implementation of supportive and harmonised poli- similar terms. One could integrate some elements of this cies, with a view to achieving the widest use of and section above and then delete the rest here and come access to information throughout the sub-region right to the next paragraph entitled “Policy objectives” within a reasonable period. The objectives of the in- formation-based development are to a) facilitate economic growth, sustainable devel- opment and wealth creation in SADC member states; b) improve the quality of life of citizens in SADC member states through better education, im- proved health services and job creation; c) create an engine for socio-economic devel- opment; d) achieve progress towards the social goals of ICTs policy e.g. the provision of universal ser- vice and universal access; e) stimulate investment in ICT networks; f) stimulate innovation in the ICT industry with a view to provide advanced information ser- vices; 1.3 POLICY OBJECTIVES For the timely provision of reliable, effective, ade- It could look a bit academic to differentiate between goals quate and sustainable basic and advanced ICT ser- and objectives and the whole introductory section looks a vices as a crucial tool for meeting the developmental bit long. It will need to be discussed how much emphasis needs of the region, as well as a trade in services in SADC Member States wish to put on this. its own right, a new policy framework seeks to achieve the following objectives: 1.2 POLICY OBJECTIVES For the timely provision of reliable, effective, 1.3.1 Affordable, ubiquitous and High Quality Ser- adequate and sustainable basic and advanced vices telecommunications services, oriented to meet To ensure affordable, ubiquitous and high quality the developmental needs of the region, a new services in response to the diverse needs of com- policy framework seeks to achieve the follow- merce and industry, and in support of general social ing objectives:- and economic growth; and to enhance regional ser- 1.2.1 Affordable, Efficient and High Quality vice inter-connectivity Services To ensure affordable, efficient and high quality 1.3.2 Building a Competitive Regional ICT Sector services by achieving universal service with To build a regional ICTs industry that is continentally The requirement of efficiency was important in the days regard to telecommunications services and and globally competitive by expanding and strength- when state-owned enterprises had to be incentivized to universal access with regard to advanced in- ening the capacity to provide predictable strategic meet efficiency standards. Today, this is of lesser rele- formation services in the region; and to en- development policy framework; developing regulatory vance as the private sector has a stronger “natural” ten- hance regional service inter-connectivity in and investor-friendly legislation for attracting local dency towards efficiency. Further, “efficiency” can be a response to the diverse needs of commerce and foreign investors; promoting competition; moni- contradiction to the concept of universal availability of ser- and industry, and in support of general social toring compliance with such policy and legislation; vices respectively universal access. One would want op- and economic growth. and effective participation in fora of governance. erators also to undertake steps for the betterment of the 1.2.2. Influencing Global Trends and be Active situation which are not purely driven by efficiency. There- in GIS fore, it seems to be more timely to request “ubiquitous” To effectively co-ordinate participation in re- service. Thereby, also the user perspective has been gional and international telecommunications added in connection to the provision of such services. fora so as to influence global trends and take Section 1.3.2 has been amended by adding some aspects advantage of rapid progress in the conver- of policy resulting from the trends to more competition and gence of telecommunications, information and intensified harmonization over the last 10 years. broadcasting technologies and services, and play a prominent role in the Global Information Society (GIS). 1.3.3. Creating an Environment for Sustainable ICT 1.2.3 Building a Competitive Regional Tele- diffusion and development communications Sector To create an attractive and dynamic business envi- This section adds the term “operators” to signal that there To build a regional info-communications indus- ronment for sustainable industry development are different business models in the market and that they try that is globally competitive by expanding through economic and institutional restructuring of the differentiate with respect to the extent of infrastructure. and strengthening of government’s capacity to industry, including capital investment options; promo- provide predictable strategic development pol- tion of a fair competitive and stable environment; icy framework; developing regulatory and in- management of scarce resources; encouragement of vestor-friendly legislation for attracting local indigenous participation; enhancement of capacity and foreign investors; promoting the integrity and capability of operators and service providers; and viability of public telecommunications ser- provision of network access on reasonable and non- vices; and monitoring compliance with such discriminatory terms and conditions; technology policy and legislation. transfer and the development of a general framework 1.2.4. Creating an Environment for Sustainable for trade in ICT services. Info-Communications Development To create an attractive and dynamic business The achievement of the above objectives will call for environment for sustainable industry develop- adoption by member states of new and / or additional ment through economic and institutional re- approaches. structuring of the industry, including capital investment options; promotion of a fair com- petitive and stable environment; development of local manufacturing facilities; encourage- ment of indigenous participation; enhancement of capacity and capability of service providers; promotion of local content; and provision of network access on reasonable and non- discriminatory terms and conditions. 1.2.5 Creating Partnerships To facilitate partnerships, including sub- regional partnerships, between public and pri- vate sectors, consisting of both local and for- eign institutions. 1.2.6 Code of Conduct and Business Practices To create a regulatory and business environ- ment that facilitates the strengthening of both business practices and code of conduct for the sector. 1.2.7 Gender and Telecommunications Devel- opment To facilitate the employment of women in the telecommunications field, on an equitable ba- sis, at senior levels of responsibility in the tele- communications administrations, including government and regulatory bodies, inter- governmental organisations and the private sector; and to put in place policies and prac- tices to ensure that recruitment, employment, training and advancement of women and men are undertaken on a fair and equitable basis. PART 2 PART 2 STRATEGIES FOR ACHIEVING POLICY OB- STRATEGIES FOR ACHIEVING POLICY OBJEC- JECTIVES TIVES 2.1 INSTITUTIONAL FRAMEWORK 2.1 INSTITUTIONAL FRAMEWORK Coherent strategies are required to address Coherent strategies are required to address the the above problems, in order to achieve objec- above problems, in order to achieve objectives that tives that have been set for the growth of info- have been set for the growth of ICT services, in an communications services, in an investor- investor-friendly environment, which is conducive to friendly environment which is conducive to rapid development. One of the essential conditions is rapid development. One of the essential condi- to pursue more rigorously the structural transforma- tions is to pursue more rigorously the structural tion of ICT institutions, started already in the SADC transformation of telecommunications institu- region. Thereby, institutional convergence needs to The last sentence points to the impact of convergence on tions, started already in the SADC region. be observed in its potential role as accelerator. the institutions. Member States have achieved some institu- Member States have achieved some institutional re- This section describes an issue which in principle is un- tional re-arrangements and are at various arrangements and are at various stages of imple- changed in terms of the fact that it points to a certain prob- stages of implementing an effective manage- menting an effective management of the ICT industry. lem. Whether this problem is still relevant in the SADC ment of the telecommunications industry. Al- Although some member states still maintain owner- member states will be derived from the assessment report though States still own the dominant operator, ship of historic operators in the telecommunications and the text will be amended accordingly. no government now provides telecommunica- and broadcasting sector, no government now pro- tions services directly. However, as a result of vides ICT services directly. However, as a result of its its ownership, government is directly involved ownership, government is directly involved in the in the management of these enterprises. Actu- management of these enterprises. ally, basic telecommunications services are provided by state-owned or partially state- So far, the majority of countries have established On the institutional level, it was agreed that harmonization owned enterprises, while value added services telecommunications regulators separately from the should be fostered and that this also may include thepos- are offered by both state-owned and private governments and telecommunications operators. sibility to delegate certain powers to a regional institution. enterprises. Most countries also have established an authority of This of course may interfere with national legislation and integrative character which is responsible for the tele- the “sacrifice” of decision making powers needs to be mo- So far, seven countries have established tele- communications and the broadcasting sector. How- tivated convincingly. communications regulators separately from ever, there are still countries in which the regulators’ both government and operators. But, in most mandate and autonomy can and should be enhanced The policy should clearly point out that previous measures countries, the regulators’ mandate and auton- in order to be able to function optimally in the current have contributed to a certain progress but that there is still omy need to be enhanced in order to be able telecommunications environment. The formulation of work ahead. Following upon what has been done therefore to function optimally in the current telecommu- a regional policy to be implemented and pursued will seems the best approach. The assessment report points nications environment. In the remaining five help to achieve this goal. Additionally, the strengthen- out that most (Zimbabwe and Zambia are the exceptions) countries, regulatory responsibilities are ing of powers of regional bodies such as the group of countries have an integrated regulator (Telecommunica- shared in various degrees between govern- regulators from SADC member states can further tions + Broadcasting) but not all have an (integrated) ICT ment and the state-owned dominant operator. facilitate the progress and change required. policy. There is consensus in the region, expressed in It is important to continue to empower, clarify and the Protocol as well as at workshops and sym- assign appropriate roles to key players in the ICT posia, on the necessity of restructuring existing sector. Previous decisions have led to some pro- institutions in order to empower, clarify and gress, but further work is needed also to keep up with assign appropriate roles to key players in the developments in other regions. The ultimate goal is to telecommunications sector. What the region reach an ICT industry framework with separate roles has achieved so far is based on these deci- for government, regulator, operators and service- sions. The ultimate goal is to reach an info- providers, operated through adequate legislation. In communications industry framework with sepa- migrating to this target industry configuration, the rate roles for government, regulator and ser- reinforcement of human resource capacity in both vice-providers, operated through adequate government and regulatory institutions, to enable legislation. In migrating to this target industry them to pursue the building process effectively, is still configuration, the reinforcement of human re- an urgent consideration. source capacity in both government and regu- latory institutions, to enable them to pursue the building process effectively, has become an urgent consideration. 2.2 OBJECTIVES OF THE INSTITUTIONAL 2.2 OBJECTIVES OF THE INSTITUTIONAL FRAMEWORK FRAMEWORK The key objectives of proposed institutional The key objectives of the proposed institutional One could debate whether the objectives of the institu- framework are to: framework are to: tional framework should be kept in a separate chapter as it allocate clear roles and responsibilities to key Allocate clear roles and responsibilities to key role- could also be integrated in 2.1. In any case, with respect to role-players; players; content, it seems advisable to add some objectives focus- promote accountability and transparency; a) Promote principle of good corporate and pub- ing on the transparency and accountability of institutions remove unnecessary duplications, and to pro- lic governance (such as accountability, trans- and regulatory processes, the avoidance of any “mixed mote efficiency and cost-effectiveness in man- parency); interests” with the respect to a potential “ownership” and aging the info-communications industry; b) Create a converged regulatory authority with a “regulatory” role of the state as well as some criteria rele- promote investor friendly environment; responsibility for telecommunications and vant for the further market development (growth, diffusion, create a “level playing field”; broadcasting availability and regional integration). restructure the national incumbent operator; c) Remove unnecessary duplications, and to An important aspect is that the institutional framework and promote efficiency and cost-effectiveness in should comprise an integrated regulator which is respon- introduce and promote competition managing the information and communica- sible for the increasingly converging telecommunications tions industry; and broadcasting sectors. d) Promote investor friendly environment; e) Create a “level playing field”; f) Encourage progressive reduction of owner- ship in the historic public operators and keep the historic operators independent from public ownership and work towards a convergent framework; g) Introduce and promote competition; h) Promote market growth; We use the term “historic” operator to indicate “incum- i) Promote ICT diffusion; universal access and bents”. It could be questioned whether one should relate universal service; and this rather to SMP operators, however, the concept of j) Promote regional integration. SMP has not been introduced at this stage. 2.3 KEY ROLE-PLAYERS 2.3 KEY ROLE-PLAYERS The key role-players in building a structure for The key role-players in building a structure for the We have struck “labour” as a key role-player due to the the info-communications industry are: ICT industry are: reorganization of the industry, however, this does not Government a) Government mean that labour should not participate in the discussion Regulator b) Regulator but that its contribution will come in a different form. The Investors and Operators c) Investors, Operators and Service Providers major aspect here is that the increasing demand of the Labour from the ICT sector (telecommunications and sector for highly skilled personnel can be covered and Consumers/Users broadcasting) general policy measures from the government may be Traditionally, governments have played the d) Consumers/Users needed for this. role of strategic planner and policy maker, Traditionally, governments have played the role of regulator and service provider. Currently, they strategic planner and policy maker, regulator and are also owners of state-owned telecommuni- service provider. Previously and to a limited degree cations enterprises (SOTEs). also today, they were also owners of state-owned ICT In a reformed info-communications industry, enterprises (SOIEs). these roles must be clearly separated. Gov- ernment should retain strategic planning and In a reformed ICTs industry, these roles must be The subsequent sections describe the change of the in- policy making and it should withdraw from the clearly separated. Government should retain policy dustry and the reorganization leading to new roles espe- operation of privatised SOTEs. Enforcement making (in pursuit of a general strategy for the sector cially of the government. The policy has to be based on a should be undertaken by an independent regu- and its proposed development) and it should with- revised understanding of the sharing of roles and respon- lator. draw from the operation of privatised SOIEs. En- sibilities between the key role-players in today’s environ- forcement should be undertaken by an independent ment. It may not always be possible and desired that The importance of the role of labour should be regulator. states withdraw completely from ownership in historic op- accorded greater recognition and interests of erators. Examples from Europe show that it is possible consumers should be taken into account in Interests of consumers should be taken into account that states maintain a share of the “incumbent” without decisions affecting the telecommunications in decisions affecting the ICT sector. endangering independence of role of ownership and cus- sector. todian of regulation. However, this is not ideal in the long All players have the inherent responsibility to improve run. An idea could be to work with deadlines until which a All players have the inherent responsibility to the performance of the industry in order to meet complete “disinvestment” should be completed. improve the performance of the industry in macro-economic, micro-economic and social goals. order to meet macro-economic, micro- economic and social goals. 2.4 THE ROLE OF GOVERNMENT 2.4 THE ROLE OF GOVERNMENT 2.4.1 Overall Functions of Government 2.4.1 Overall Functions of Government At the macro level, Government should be At the macro level, Government should be resuming The principle change which occurs in the role of the gov- doing the following principal functions: responsibility for the following principal functions: ernment is that it becomes stronger as “rule maker” and Create an enabling environment for the provi- a) Create an enabling environment for the provi- looses its role in the provision of networks and services. sion of affordable services through liberalisa- sion of affordable and available services This is reflected by integrating some functions dealing with tion and commercialisation of telecommunica- through liberalisation and commercialisation the overall coordination and the initiative to regional solu- tions sector. of the ICT sector; tions and harmonization of policies in collaboration with Create a level playing field to facilitate the en- b) Create a level playing field to facilitate the en- other countries. try and growth of nascent operators. try and growth of nascent operators; Provide good governance, including ensuring c) Provide good governance, including ensuring law and order in the state. law and order in the state; and allowing for, at Establish and implement development- the most basic level, checks and balances in- promoting policies that are market-guiding and cluding an independent judiciary which ensure friendly. fair and efficient regulation in the ICT sector. Restructure and consolidate the info- d) Establish and implement development- communications sector by assigning responsi- promoting policies that are market-guiding bilities to players dealing with policy (Ministry), and friendly; Regulation (Regulator) and operations (opera- e) Consolidate the ICTs sector by assigning re- tors/service providers) to ensure that the sponsibilities to players dealing with policy community as a whole, and all of its parts, are (Ministry), Regulation (Regulator) and opera- provided with adequate choice of services at tions (operators/service provid- reasonable prices. ers/broadcasters) to ensure that the commu- Allow for, at the most basic level, checks and nity as a whole, and all of its parts, are pro- balances including an independent judiciary vided with adequate services with choice at and impartial public service competent in tele- affordable prices; communications, all of which are indispensable f) Manage change through adequate mecha- to a fair and efficient regulation. nisms, such as a policy implementation moni- Manage change through adequate mecha- toring unit and joint regional efforts of stake- nisms, such as a policy implementation moni- holders; toring unit and an investment centre. g) Encourage national and regional network in- teroperability and cross-border connectivity; 2.4.2. Policy Responsibility of Ministry Re- h) Play a leadership role in using ICT applica- sponsible for Telecommunications tions (e-governance, e-government, etc). i) Guide the sector with respect to the question Recognising that telecommunications is a pub- of technical, legal and institutional conver- lic utility necessary to the development of all gence. sectors of the economy and society, the Minis- try responsible for telecommunications has the 2.4.2. Policy Responsibility of Ministries(y) Responsi- For the Ministerial functions some changes in the SADC following functions: ble for ICTs policy are regarded as necessary. They comprise the leg- Ensure universal service with respect to basic islative functions with respect to preparation and imple- telecommunication services and universal ac- Recognising that ICT is a public utility and tool nec- mentation of the law(s) as well as the responsibility for the cess with respect to advanced information ser- essary to the development of all sectors of the econ- functioning of the regulatory system which still is under vices. omy and society, as well as a business in itself, the development. In many countries throughout the world, Create and oversee maintenance of a regula- Ministry responsible for ICTs has the following func- regulatory functions have been moved from the ministry to tory framework for the info-communications tions: the regulator in the course of this process and this needs industry. a) Develop the relevant legislation for the ICT to be mirrored in the policy. Build and sustain an enabling environment for sector thereby considering the convergence of the provision of info-communications services telecommunications and broadcasting Also, a ministerial function is to contribute to strategic largely by the private sector. b) Propose the legislation to decision makers plans for the sector and for the economy and society as Ensure that policy-making, regulatory and en- and advise throughout the legislative process whole. forcement structures have the capacity to per- c) Create and oversee maintenance of a facilita- form their respective functions comprehen- tive and credible regulatory framework for the Finally, the skill set of the personnel working in govern- sively and fairly. ICTs industry; ment institutions needs to be strengthened due to the in- Formulate and review policy and oversee its d) Build and sustain an enabling environment for creasing complexity of regulatory issues with respect to implementation. the provision of ICT services largely by the technical, commercial and legal aspects. These functions change the responsibility of private sector; the Ministry from the previous combination of e) Ensure that policy-making, regulatory and en- policy, rule creation, implementation and op- forcement structures have the institutional and eration to sector analysis, policy development human resource capacity to perform their re- rule creation and general facilitation. spective functions comprehensively and fairly; and Regarding g) one could question whether / why universal To fulfil its functions, the Ministry must intro- f) Formulate and review broad policy frame- service / universal access shall form a specific element duce and enforce effective policies so that the works. with special functions of the Ministry in that area. Given national or regional resources are allocated g) Establish broad policy frameworks for univer- the size of the ICT markets in developing countries the and utilised in an efficient way in the interest of sal access/service with respect to basic tele- financial resources levied on the operators may not be the public. One of such policies is to enable, communication services and universal access sufficient for the sustainable development of universal ser- promote and facilitate fair competition between with respect to ICT and advanced information vices programmes. Hence it might be necessary for Gov- interests active in the marketplace. services; ernment through the Ministries to come in with subsidies h) Ensure adequate staffing for strategic policy or incentives for sustaining the programmes like zero duty Once correct policies are established, they and planning activities in the Ministry for ICT equipment ear-marked for universal service areas. should be embodied in a simple, reliable and i) Strengthening of the overall skill set and the enforceable set of stable legislation, and intro- human resources in the Ministry duced and enforced in a transparent manner. These functions change the responsibility of the Min- These actions create an enabling environment istry from the previous combination of policy, rule in which the private sector or other bodies can creation, enforcement, implementation and operation successfully participate in the building up and to sector analysis, policy development rule creation delivery of info-communications infrastructure and general facilitation. and services. 2.4.3. Capacity Building of Government To fulfil its functions, the Ministry must introduce and To attain the required transformation of Gov- enforce effective policies so that the national or re- ernment to the new role, the constitution, job gional resources are allocated and utilised in an effi- content/description and attitude of the staff cient way in the interest of the public. One of such may need readjustment. In this regard, the policies is to enable, promote and facilitate fair com- organisational structure of the Ministry will petition between interests active in the marketplace have to be modified to perform these new while ensuring universal access and universal service functions. An adequately staffed Strategic Pol- to all sectors of the community relevantly. icy and Planning Unit will be geared to carry out the necessary policy development and Once correct policies are established, they should be endorsement, including the planning for uni- embodied in a simple, reliable and enforceable set of versal service and universal access. Where stable legislation, and introduced and enforced in a such a unit exists, it should be strengthened in transparent manner. terms of skills and other resources. These actions create an enabling environment in Other options for undertaking policy develop- which the private sector or other bodies can success- ment for universal service and universal ac- fully participate in the building up and delivery of ICT cess include the establishment of a Universal infrastructure and services. Service Fund, Universal Service Unit or an Agency to administer it, under the Ministry or under the Regulator. 2.5 THE ROLE OF THE REGULATOR 2.5 THE ROLE OF THE REGULATOR 2.5.1 The Regulatory Institution 2.5.1 The Regulatory Institution The Ministry for Telecommunications should put in place an appropriate regulatory institu- The relevant responsible ministry for ICTs should put As national regulatory authorities have come to live in tion for the enforcement of government’s deci- into place an appropriate regulatory institution for the most countries in the last 10 – 15 years only, their role sions and legislation. By so doing, the regula- enforcement of government's policies and legislation needs to be specified and defined in order to make a clear or strengthen the regulatory institution where one tory institution will take over the responsibilities cut between the role of ministries and the role of regula- for enforcement of regulations and rules to already exists. By so doing, the regulatory institution tors. The main aspect is the enforcement of the rules laid facilitate efficient operations in the market. will take over the responsibilities for enforcement of down in the legislation and this implies that the regulator regulations and rules to facilitate efficient operations applies the legal texts where needed. The regulatory institution enforces laws and in the market. rules within the info-communications market The enforcement of the legal provisions is directed to- boundaries. In effect, it entails monitoring of The regulatory institution enforces laws and rules wards measures and tasks assigned to the regulatory au- market demand and supply capacity of service within the ICTs market boundaries. This entails both thority which serve to achieve certain goals. providers, and intervention to correct imbal- telecommunications as well as broadcasting markets. ances or market distortion in favour of users. The functions of the Regulatory Authority cover the Its activity ensures the existence of an efficient monitoring of market demand and supply, and inter- and competitive market environment allowing vention to correct imbalances or market distortion. Its info-communications services to be developed activity ensures the existence of an efficient and and delivered at affordable prices. competitive market environment allowing ICT ser- vices to be developed and delivered at affordable The regulatory institution should have the nec- prices. The regulatory institution is also critical in essary independence from stakeholders to guiding and facilitating the healthy development of ensure impartiality, flexibility and transparency. ICT infrastructure, services, applications and the de- Furthermore, it must have requisite capacity in velopment of local content and business. order to avoid “regulatory capture” by stake- holders and ensure transparent public ac- The regulatory institution should have the necessary Independence is an extremely important aspect of the countability. Consequently, legislation is re- independence from stakeholders to ensure impartial- regulator’s work. It must be ensured in the best possible quired to specify the obligations of operators in ity, flexibility and transparency. However institutional way that the regulator cannot be influenced by any stake- the industry and the powers and accountability oversight must be sufficient to ensure accountability. holder in the market and that no biased or unjustified deci- of a regulatory institution to enforce them. Furthermore, it must have requisite capacity in order sions result from his activity. To avoid such mistakes, pos- to avoid regulatory capture by stakeholders and en- sibilities need to be in place to file injunctions against the The regulatory framework should comprise sure transparent public accountability. Consequently, regulator’s decisions. Furthermore, the regulator has to four main elements: legislation is required to specify the rights and obliga- ensure accountability so that either the Ministry or Parlia- Legal instruments that facilitate market growth tions of operators in the industry and the powers and ment can control its activities. This altogether allows for a and articulate the scope and powers of a regu- accountability of a regulatory institution to enforce system of checks and balances. Independence does not latory institution, and the rights and obligations them. Although independence of the regulatory au- imply that the regulators institution can decide on all is- of operators and regulatory processes. The thority towards all stakeholders is required this shall sues completely on its own but there may be issues where legal provisions should be introduced to sup- not limit the regulatory authority in taking positions the regulatory institution provides its market know how port the national socioeconomic strategies. and formulate strategies in order to achieve goals of whereas the Ministry or another institution is involved due A regulatory institution which is completely the ICT policy. This can also involve an advisory role to the political element that may be embodies in such de- independent from operators and government, to the Ministry or tasks which the regulatory institu- cisions. and equipped in resources and skills to en- tions prepares and co-ordinates with the Ministry to force rules. Where such an institution already reach a decision. Member States can share the re- exists, but lacks some of the recommended sponsibility for certain tasks between the regulatory attributes, it should be strengthened appropri- institution and e.g. the Ministry. ately. The institution should also be capable of progressively adjusting itself to changes in The regulatory framework should comprise six main With respect to the content of the framework develop- technology and services. elements: ments over the last 10 years have contributed to signifi- Regulatory processes involving specialised a) Legal instruments that facilitate market growth cant change. The six main elements described in the poli- activities, related to expansion and operation and articulate the scope and powers of a cies one the one hand describe the tool-box the system as of info-communications technologies, services, regulatory institution, and the rights and obli- such needs to work. The various laws and pieces of sec- applications and markets, to perform regulation gations of operators and regulatory proc- ondary legislation are required to equip the regulatory au- functions. esses. The legal provisions should be intro- thority with the necessary basis for its decisions. Relationships between the regulatory institu- duced to support the national socio-economic tion and other institutions or authorities in ex- strategies. Some laws that need to be en- We feel a bit uncertain whether the whole list of items and ercising its powers conferred in the legislation. acted in implementation of this policy : legal issues shall be covered by one authority. Copyright 2.5.2. Establishment of Regulatory Authority b) A comprehensive ICT Law; law is not specific to electronic communications alone, and The regulatory institution, referred to as the o Laws specific to complements to ICT Cyberlaw also deals with content and IT issues. It may be “Regulatory Authority ” should be established e.g. Broadcasting, e-commerce Law, overburdening to one piece of legislation to address all as an autonomous entity with all the powers of copyright Law, Cyberlaw; these areas, however, it can be addressed by one conver- a legal persona. o Secondary legislation e.g. on the gent authority such as is also in discussion for the postal 2.5.3. Scope and Mandate of Regulatory Au- management of scarce resources such topics which – although not an element of this policy thority as spectrum, numbers and Rights-of- document – may be under the responsibility of one ai- The Protocol calls for close co-ordination be- Way uthority.. tween telecommunications and broadcasting c) A regulatory institution, which is independent sectors, but states that the local content re- from operators and government, and Besides independence of the regulator as an institution quirement will be the subject of a separate equipped in resources and skills to enforce also efficient processes are required. This something a Protocol. Regional policy on content cannot be rules. Where such an institution already ex- regulatory authority normally can influence itself as it can addressed before such a Protocol is prepared ists, but lacks some of the recommended at- set the pace for the duration of procedures, consultations, and adopted. In the circumstances, the man- tributes, it should be strengthened appropri- hearings etc. unless this is not externally defined by ad- date of the Regulatory Authority, proposed in ately. The institution should also be capable of ministrative law. The Model Bill therefore should contain this document, is limited to the regulation of progressively adjusting itself to changes in provisions with respect to creating clarity about such proc- the information and telecommunications (info- technology and services; esses and give certainty to the market about the handling communications) industries but may include d) Regulatory processes involving specialised of certain procedures (such as length of dispute resolution the allocation and management of radio fre- activities, related to establishment, expansion procedures, duration of answers to applications etc.) quency spectrum for broadcasting, as well. and operation of ICTs technologies, services, applications and markets, to perform regula- Also, the regulatory authority should be embedded in na- A separate policy document to cover the as- tion functions.; tional and international discussions and fora for informa- pect of content, as an integral part of the merg- e) Relationships between the regulatory institu- tion exchange. ing of broadcasting with telecommunications tion and other institutions or authorities in ex- and information technology, will be developed ercising its powers conferred in the legislation. in the future. This comprises national and international rela- 2.5.4. Mission of the Regulatory Authority tionships, e.g. to similar institutions in other The Protocol states the objectives of the SADC countries region as: f) Ensure that the regulatory authority is ac- the provision of adequate high quality and countable for its actions cost-effective services that meet the diverse needs of customers in order to promote eco- 2.5.2. Establishment of Regulatory Authority nomic growth and social development. universal service with regard to telecommuni- The regulatory institution, referred to, as the “Regula- cations services and universal access with tory Authority” should be established as an autono- regard to advanced information services. mous entity with all the powers of a legal persona. Based on this primary objective, the specific objectives of the Regulatory Authority will be 2.5.3. Scope and Mandate of Regulatory Authority to: regulate info-communications in the public In addition to mandating the adoption of a common interest; telecommunications policy, the TCM protocol calls for achieve progress towards the social goals of co-operation among member states. Such co- info-communications policy - the provision of cooperation should not relate to technical matters universal service and universal access; alone but should comprise measures contributing to ensure the provision of a wide range of info- the development of the Common Market of the Re- communications services to stimulate and gional Economic Community (REC) through various support economic growth; means such as (1) a regional ICT policy, (2) agree- regulate the activities of all telecommunica- ment on joint methodologies and approaches of regu- tions operators; lation; (3) delegation of decision making powers to a stimulate investment in the public telecommu- group of regional bodies for specific issues with an nications network; impact in several countries of the SADC region: (4) ensure a “level playing field” where competitive consideration of industry trends such as conver- entry is permitted under the infocommunica- gence, (5) coordinated collection of market data for tions policy; benchmarking purposes. protect the interests of info communications users and consumers; As telecommunications is evolving into a broader stimulate innovation in the info- information and communications technology (ICT) communications industry with a view to provide that embodies elements of telecommunications and advanced information services; broadcasting (and partly also computing), the man- promote the development of human resources date of the Regulatory Authority extends to the pro- for the info-communications industry; and motion of the development of infrastructure and ser- manage common national resources, such as vices, including issues relating to the management the radio frequency spectrum and numbering and monitoring of the radio frequency spectrum for plan effectively. both telecommunications and broadcasting. 2.5.5. Functions and Issues of the Regulatory Authority. It is recommended that Member States establish The typical functions of an autonomous regula- “fully converged” regulatory authorities to regulate tory body include rule making and enforce- ICT infrastructure, services and content. ment, licensing, and management of scarce resources. The regulatory body should perform A crucial aspect is the “converged regulator”. The recom- Where aspects of the activities or services in the in- these functions in a transparent manner en- formation and communications sector are regulated mendation is to include a proposal which opens up for this couraging public participation. In performing by different institutions close co-ordination among possibility but does not enforce / require this as one can these functions, the following are some of the assume that some member states will not be able to them is essential for effective and healthy ICT devel- key regulatory issues: opment and applications. commit to such an ambitious approach. Also, where other Universal Service/Access institutions regulate specific aspects (e.g. radiocommuni- Service provision and user needs 2.5.4. Mission of the Regulatory Authority cations, broadcasting licenses, media or spectrum), an Investment integration is recommended. The assessment report Ownership and control In line with the objectives for ICT development pro- points out that SADC countries have converged authorities Competition posed above, the mission of the Regulatory Authority already. Standards would be: Human Resources Development a) Ensuring the provision of adequate high qual- Research ity and cost-effective services that meet the Interconnection diverse needs of consumers in order to pro- Tariffing policies mote economic growth and social develop- Consumer and user protection ment; Access to services of International Bodies b) The promotion of universal service with regard Liaison with Minister to basic communications services and univer- Reporting to Parliament sal access with regard to advanced informa- Consultation and international participation tion services; and Information collection and dissemination c) The promotion of regional seamless ICT con- Competitive Safeguards nectivity and trade in ICT services. The above functions and issues are expressly d) The application of regulatory powers to the stated or implied in the Protocol (especially benefit of the country and the region and es- article 10.8). They are expanded in a checklist pecially in consideration of the interest of con- in the boxes below: sumers e) Based on these primary objectives, the spe- cific objectives of the Regulatory Authority will be to: f) Regulate ICT services, operators and service providers in the public interest; g) Achieve progress towards the social goals of ICTs policy e.g. the provision of universal ser- vice and universal access; h) Stimulate investment in the public network;s i) Ensure a “level playing field” where competi- tive entry is permitted under the ICTs policy; j) Protect the interests of ICT users and con- sumers, and ensure privacy rights; This section gives a broad overview of what a regulator k) Stimulate innovation in the ICT industry with a should be doing. However the list of missions is rather view to provide advanced information ser- generic and could look a bit repetitive. vices; l) Promote the development of human re- sources for the ICT industry, where possible; m) Manage common national scarce resources, such as the radio frequency spectrum, num- bering plan and domain names effectively; n) Actively participate in the international man- agement of orbital slots and developments in international standards; and o) Promote public confidence in ICTs Market through transparent regulatory licensing and other regulatory processes. 2.5.5. Issues of the Regulatory Authority. The typical functions of an autonomous regulatory body include rule making and enforcement, licensing, and management of scarce resources as well as dis- pute resolution. The regulatory body should perform these functions in a transparent manner encouraging public participation e.g. by public consultations. In performing these functions, the following are some of the key regulatory issues: a) Rulemaking process and enforcement The issues of the regulatory authority to a stronger degree b) Licensing; provides a list of tasks which are assigned to the authority. c) Management of scarce resources By “issues” reference is made to topics which need to be d) Universal Access/Service; done in the day-to-day work on the operational and strate- e) Service provision and user needs; gic level. f) Investment; g) Ownership and control; Some aspects such as Cyberlaw issues and copyright h) Liberalisation /Competition; issues have not been added to the list here. We feel that it i) Competitive Safeguards; gets very long and that the burden on one authority could j) Technical Standards; become very heavy. k) Dispute Resolution; l) Human Resource Development m) Research; n) Interconnection and Access ; o) Price Regulation/Tariff policy guidelines; p) Consumer and user protection; q) Access to services of International Bodies; r) Liaison with Minister to ensure the articulation of issues in the sector arising from experience in implementing policy ; s) Reporting to Parliament; t) Consultation on regional and international is- sues; u) Data and Information collection, analysis and dissemination; v) Establishment of indicators of performance by sector operators and the sector as a whole w) Promotion and development of local content especially for broadcasting. x) Technology migration y) Emergency Communications The above functions and issues are expanded in the checklist in the boxes below: Checklist of Functions and Issues of the Regu- Checklist of Functions and Issues of the Regulatory The issues from above are further specified in the check- latory Authority Authority list of functions and issues. The establishment or strengthening of a Regu- The establishment or strengthening of a Regulatory latory Authority is one of the actions proposed Authority is one of the actions proposed under poli- For each of the 24 items above the text below provides under policies for the SADC region. cies for the SADC region. details as to how the implementation could work and which REGULATORY FUNCTIONS specific content is related to each function. It shows that a 1. Rule-making and enforcement REGULATORY FUNCTIONS further differentiation compared to the previous policy was Prior to making new rules or changing existing necessary to cover all the additional aspects of regulation rules or regulations, a regulator may enter into 1. Rule-making and enforcement that exist today. a rule-making process. The typical first step in Prior to making new rules or changing existing rules rule-making is a request or petition for rule- or regulations, a regulatory authority may enter into a It can be debated whether a policy document should have making that is made public, and all interested rule-making process. The typical first step in rule such a checklist. The degree of detail is quite substantial parties are asked to comment. After reviewing making is a request or petition for rule making that is and it may accelerate content which is to be covered in the comments, the regulator can issue a proposed made public, and all interested parties are asked to model bill. On the other hand, agreement on such details rule-making proposing specific rules and re- comment. After reviewing comments, the regulator facilitates the agreement on the model bill. The main prob- questing public comment. Once the rule- can issue a proposed rule making proposing specific lem that remains is that implementation may be delayed. making proceeding is completed, the regulator rules and requesting public comment. Once the rule- decides whether to amend its rules/regulations making proceeding is completed, the regulator de- or to make a new rule. cides whether to amend its rules/regulations or to To enable the regulatory body to carry out en- make a new rule. This process is also known under forcement functions, the regulator must be the term “consultation” in other countries / regions given investigative powers and the authority to and allows for broad participation and transparent impose appropriate sanctions and penalties for discussions in the market. Rulemakings have to con- violations of the telecommunication laws and tain reasons of the authority and the authority must regulations. Such sanctions or penalties can be accountable for its decision. include fines, or revocation of li- cences/authorisations, etc. To enable the regulatory authority to carry out en- 2. Licensing forcement functions, it must be given investigative Undertake the licensing of all telecommunica- powers and the authority to impose appropriate sanc- tions service provider, according to such policy tions and penalties for violations of the telecommuni- guidelines as may be set by the Minister. cation laws and regulations. Such sanctions or penal- Licence radio spectrum users, except those ties can include fines, or revocation of li- operating under licences issued by the broad- cences/authorisations, etc. casting regulatory agency, where such an agency exists. 2. Licensing Undertake the review of existing licences, Undertake licensing of ICT service providers, accord- Member States should select the mechanism for the allo- where applicable. ing the law and such guidelines as the Minister may cation of licenses in their national laws respectively use Monitor and enforce compliance with the rele- set. Thereby the appropriate licensing method for the the provisions suggested in the model bill. vant legislation and regulations. specific spectrum in question is to be applied. Determine appropriate classes of licences. Hear complaints from users and service pro- a) Licence radio spectrum users, including viders. broadcasters and signal carriers. 3. Management of scarce resources b) Undertake the review of existing licences, Management of scarce resources (e.g. fre- where applicable. quencies, numbers, and orbital positions). c) Monitor and enforce compliance with the rele- Procedures for the allocation and use of vant legislation and regulations. scarce resources. d) Determine appropriate classes of licences in The different types of limited resources require accordance with point 1 above. different management techniques for their effi- e) Hear complaints from users and service pro- cient use: viders. Natural scarce resources, like frequencies or orbital positions, may require usage fees and If decided by ICT policy, implement the process to- This issue is also often referred to as “horizontal licensing” global co-ordination. Most natural resources wards unified licenses and the issuance of conver- should be distributed among countries by con- gent licenses. sensus based on existing and expected future usage; 3. Management of scarce resources (e.g. frequen- contemporary scarce resources, like calling cies, numbers, and orbital positions). numbers and broadcasting sites, require na- tional, regional and global co-ordination; Procedures for the allocation and use of scarce re- technology-dependent bottlenecks, like short- sources. age of conduits and cable capacity, should be handled under the principle of open network The different types of limited resources require differ- obligation. ent management techniques for their efficient use: REGULATORY ISSUES Natural scarce resources, like frequencies or orbital 1. Universal Service/Access positions, may require usage fees and global co- Implement the universal service policy formu- ordination. Most natural resources should be distrib- lated by the Universal Service Agency. uted among countries by consensus based on exist- Administer the universal service fund.. ing and expected future usage; this requires partici- Thereby, it should be determined whether (a) this partici- 2. Service provision and user needs pation of the SADC countries in the relevant interna- pation will take place by the competent Ministry or (b) Promote the provision of efficient, effective and tional fora. whether this is a function of the regulatory authority or (c) affordable telecommunication service for all whether a joint representation is the most suitable solution sectors of society and the development of pub- Contemporary scarce resources, like calling numbers lic and private services which are responsive and broadcasting sites, require national, regional and tothe needs of users. global co-ordination; Ensure that telecommunications services, viewed collectively, develop and promote a Technology-dependent bottlenecks, like shortage of sound business environment in the interest of conduits and cable capacity, should be handled un- healthy competition, efficient services and der the principle of open network obligation. modern facilities. Protect the integrity and viability of public tele- 4. Universal Access /Service communications services. Implement the universal service policy formulated by The policy may be extended here by statements with re- Develop regulations supporting the achieve- the legislative process (definition of universal service spect to implementation of funds and rules governing the ment of policy objectives. / universal access) and administer the respective “pay or play” principle. 3. Investment universal access / service fund, if such a fund has Encourage investment in, and promote the been decided upon. This includes strategies and stability of, the industry. processes regarding the usage of the monies that 4. Ownership and control have been paid into the fund. Encourage ownership and control of telecom- munications services by local people and by 5. Service provision and user needs This looks a bit short but in the TCM Protocol the text is people from historically disadvantaged groups. Promote the provision of efficient, effective and af- already extensive and the countries should maintain op- Impose limitations on cross ownership of tele- fordable telecommunication service for all sectors of tions for design in their national legislation. communications services in accordance with society and the development of public and private the requirements of anti-trust legislation. services, which are responsive to the needs of users. 5. Competition Ensure that ICT services, viewed collectively, develop Promote fair competition between telecommu- and promote a sound business environment in the nications service providers where such compe- interest of healthy competition, efficient services and tition is permitted, in conjunction with the coun- modern facilities. try’s competition policy. Protect the integrity and viability of public ICT Allow service providers maximum freedom in services. the pursuit of their commercial objectives, Develop regulations supporting the achieve- while simultaneously taking into account of the ment of policy objectives. telecommunications needs of the public and the policy objectives of government. 6. Investment 6. Standards Encourage investment in, and promote the stability Set national standards governing the provision of, the industry. of telecommunications services and ensure compliance with them. Encourage local and cross-border investment in ICT Ensure that the needs of disabled people are infrastructure and applications taken into account, particularly with regard to type-approval for customer premises equip- 7. Ownership and control ment (CPE). Encourage ownership and control of ICT services by Set applicable technical and quality standards local people and by people from historically disadvan- in consultation with the telecommunications taged groups. industry and consumer bodies. Undertake type-approval of customer premise Impose limitations on cross ownership of ICT ser- equipment (CPE) and set the rules for their vices in accordance with the requirements of anti- connection to the network. trust legislation if such ownership could have harmful 7. Human Resources Development effects on the competition in the market and could Promote the development of human resources lead to disadvantages for end users. Where cross- Cross-ownership may be critical from an anti-trust per- in the telecommunications sector. owenership may have beneficial effects e.g. in light of spective, but in the current market phase also have posi- 8. Research convergence such limitations should not necessarily tive effects in order to achieve convergence at all. Promote and conduct research and develop- apply. ment in info-communications, including regula- tion, policy and technology. 8. Liberalisation/Competition 9. Interconnection Promote fair competition between ICTs service pro- Determine interconnection guidelines, facilitate viders/operators and harmonise competition rules interconnection negotiations and approve in- where such competition is permitted, in conjunction terconnection agreements (with modifications with the country's competition authority, where one as necessary) in the public interest. exists. 10. Tariffs Policies Regulate tariffs if and when required in the Allow service providers maximum freedom in the pur- public interest. suit of their commercial objectives, while simultane- 11. Consumer and user protection ously taking into account of the ICTs needs of the Take responsibility for consumer protection public and the policy objectives of government. with regard to telecommunications. Promote liberalisation where necessary in ICT sector Provide for the resolutions of complaints and and stimulate private initiatives disputes by consumers and users regarding telecommunications services. 9. Competitive safeguards Mobilise sector players including consumers in a) Define and publish the mechanisms through It may be an issue to discuss whether the specific concept matter related to telecommunications devel- which a new entrant can access its competi- of unbundling should be mentioned at this level or rather in opment tors' facilities and/or unbundled elements (In- the section on access regulation. 12. Access to service of International Bodies terconnection, Access and Sharing) Promote access to service of and participation b) Elaborate and publish reference toolkit to be in the activities of regional and international used by any interested party for resale, tar- inter-governmental bodies in the sector. iffing, and other sectoral ICT elements 13. Liaison with Minister c) Inform the public and operators/providers on Advise the Minister with regard to any major anti-competitive practices issue affecting telecommunications when re- d) Publish the procedures to submit a case for quired or necessary. arbitration / dispute and arbitration process 14. Parliament (dispute resolution process, the means to ap- Report to Parliament, through the Minister, on peal, and how and when the decision made the performance of its functions. can be reviewed 15. Consultation and international participation e) Promote structural separation of lines of busi- Structural separation, however, should be a remedy f last Participate in international conferences, in ness where applicable and encourage unbun- resort. consultation with the Ministry, on issues relat- dled costing methodologies ing to telecommunications. f) Evaluate all measures in light of existence of Provide a forum for consultation with all inter- market power by operators / service providers ested parties. 16. Information Collection 10. Technical Standards Collect, store and disseminate information and a) Set national standards governing the provi- The issue of avoidance of technology dumping also ap- data on the sector to parties and organisations sion of ICT services and ensure compliance plies to this part. However, technology dumping is a strat- concerned by the development and distribution with them. egy to circumvent standards and therefore, the applicable of info-communications services, and to other b) Ensure that the needs of disabled people are legislation for that is trade law. relevant parties. taken into account, particularly with regard to type-approval for customer premises equip- ment (CPE). c) Set applicable technical and quality standards in consultation with the ICTs industry and consumer bodies. d) Undertake type-approval of customer premise equipment (CPE) and set the rules for their connection to the network. 11. Dispute Resolution a) Promote transparency, independence and ob- jectivity in dispute resolution process b) Consider user interests c) Observe a limited and reasonable time frame within which to reach an agreement or a deci- sion d) Ensure the effectiveness of the arbitration modes e) When necessary and justified, observe confi- dentiality f) When applicable, limit costs incurred to the real needs of the arbitration processes g) Establish and publish the procedure of dispute resolution and mechanisms to appeal h) Consider investment that goes along with re- spect to dispute resolution on access and in- terconnection issues 12. Human Resources Development a) Promote the development of human re- sources in the ICTs sector including the de- sign, development, use and security b) Participate in updating the policy of skill en- hancement in all ICT sub-sector c) Promote the creation of knowledge or techni- cal workers important for both the production and use of ICT. 13. Research Promote and conduct research and development in ICTs, including regulation, policy and technology. 14. Interconnection and Access a) Determine interconnection guidelines, facili- tate interconnection negotiations and approve interconnection agreements (with modifica- tions as necessary) in the public interest. b) Encourage national and regional network in- teroperability and cross-border connectivity c) Promote the establishment of wholesale ca- The idea behind this is not to have a specific type of op- pacity provision erator (Carrier of carriers) but to make operators consider d) Enable efficient dispute resolution process for that they could do retail or wholesale or both. access and interconnection issues especially with respect to the determination of wholesale prices 15. Price Regulation/ Tariff policy guidelines These rules apply to retail and wholesale alike. a) Regulate prices/ tariffs if and when required in the public interest. b) Prepare cost models and calculation tools as basis for potential wholesale regulation 16. Consumer and user protection a) Take responsibility for consumer protection with regard to ICTs. b) Provide for the resolutions of complaints and disputes by consumers and users regarding ICT services. c) Mobilise sector players including consumers in matter related to ICT development d) Promote ICT awareness among consumers 17. Access to service of International Bodies Promote access to service of and participation in the activities of regional and international inter- governmental bodies in the sector. Thereby it needs Experience from the SADC Sub-Sectoral Committee on to be clarified to which extent such participation is Telecommunications, ICT and Postal Issues showed that a shared between the Ministry and the Regulatory Au- joint participation of ministries and regulators is a normal thority. Such decision on representation (which can approach. also be a joint representation) should be taken in the basis of the nature of the relevant activity and the programmes offered. 18. Liaison with Minister Ensure the articulation of issues in the sector arising This may be struck as it is not a task relating to specific from experience in implementing policy ; areas of work but to the support to an institution / person. Advise and brief the Minister with regard to any major issue affecting ICTs when required or necessary. 19. Reporting to Parliament Report to Parliament, through the Minister, on the The normal process would be reporting through the Minis- performance of its functions. ter who is accountable to Parliament. In legal disputes,m the authority is accountable on its own behalf. 20. Data and Information Collection, analysis and dissemination a) Collect, analyse, store and disseminate infor- mation and data on the sector to parties and organisations involved in the development and distribution of ICT services, and to other relevant parties on a cost recovery basis. b) Develop national ICT data and Information banks, networked to form a regional databank network c) Establish indicators of performance by sector operators and the sector as a whole d) Define and publish qualitative and quantitative performance indicators that will help respon- sible of the management of the whole ICT sector to guide in assessing its development, with regard to service expansion, service pro- visioning, service restoration, complaint han- dling, billing, and others. e) Monitor the performances of ICT opera- tors/service providers and take necessary measures when appropriate, and assess the effects of the universal service/access contri- butions f) Define and analyse performance indicators of quality of service in considering users, appli- cations, communications systems, networks, operators and providers 21. Establish indicators of performance by sector operators and the sector as a whole To measure the performance of the sector in national or international benchmarks, and to check whether regulation improves e.g. the quality of service provi- sion, performance data and indicators are needed. The national regulatory authority is best-suited to design the information required and to collect the data as an independent stakeholder. 22. Promotion and development of local content es- pecially for broadcasting. In a converged world, content gains in importance. Many countries suffer from ”mainstream” contents which dominates the markets. Therefore, promotion and support to local content could be an area of activ- ity for the regulatory authority. This comprises: a) Promotion of development of relevant local content that will generates usage and addi- tional traffic and the revenues, and then stimulate new development by driving effects b) Definition of an action plan to specialise local person resources in developing local content (design, development, hosting, access, local culture, constructive entertainment prod- ucts,..) c) Establishment of local content task force that will deal with the provision of content for broadcasting d) Ensuring wide participation of communities in the creation and the maintenance of informa- tion and content services 23. Technology migrations a) Encourage the adaptation of existing tech- nologies to provide new services (e.g. Cable TV operators to provide voice telephony or Broadband Internet) b) Encourage the upgrading technologies, e .g. from analogue to digital technologies, from narrowband to broadband etc. c) Facilitate technical and commercial negotia- tions on co-operation among ICT operators in case of migration and/or development of new services provided over exiting technologies d) Emergency Communications e) Ensure that all ICT operators have made available emergency communications f) Ensure that emergency communications are easily reachable by consumers, including people with disabilities g) Promote the creation and maintenance of a comprehensive directory of emergency ser- vices covering all ICT services 24. Emergency Communications Emergency communications is an important tool to the overall benefit of the society. It can help to organ- ize support, call for help, save people and their be- longings from disasters etc. In most countries major elements of this communication had to be supported by or initiated by the regulatory authority such as the quality parameters, the selection of short codes for these services. The communication of short codes etc. 2.5.6. Structure of Regulatory Authority 2.5.6. Structure of Regulatory Authority The size of the Authority in terms of its mem- The size of the Authority in terms of its members and The next section(s) deal with size, structure and composi- bers and staff will depend on the size and staff will depend on the size and complexity of the tion of the authority. In countries were such an organiza- complexity of the market. In principle, the regu- market. However, there is a core set of functions of a tion has been active already for some time, one could latory organisation should be lean, comprising regulatory authority that needs to be provided inde- doubt whether these provisions are really necessary. They members and core staff to perform core func- pendent of market size. This relates to strategies and have been updated, but our recommendation is to boil tions. policies which have to be developed for small and them down in size. large markets alike and with approximately the same It will be efficient and cost-effective to out- effort. In principle, the regulatory organisation should source as many non-core functions as possi- be lean, comprising members and core staff to per- ble. Both members and staff should be quali- form core functions. fied in fields which are relevant in the regula- tion of the info-communications industry includ- Both members and staff should be qualified in fields ing economics, telecommunications or elec- which are relevant in the regulation of the ICTs indus- tronics, information technology, law and ac- try including economics, ICTs (comprised of tele- counting. In view of the sensitive nature of their communications and broadcasting) or electronics, responsibilities, it is essential that members information technology, law and accounting. In view and staff are persons of high integrity and of the sensitive nature of their responsibilities, it is commitment to service. essential that members and staff are persons of high integrity and commitment to service. Salary and terms of service, commensurate with responsibilities, will assist in attracting and Salary and terms of service, commensurate with re- This section could also be deleted as it does not actively retaining persons of the right calibre, as well as sponsibilities, will assist in attracting and retaining describe what should be done. reducing temptation to corrupt practices which persons of the right calibre, as well as reducing temp- are inimical to fair and efficient regulation. tation to corrupt practices which are inimical to fair and efficient regulation. 2.5.7 Composition of the Regulatory Authority Two main designs of regulatory organisations 2.5.7 Composition of the Regulatory Authority exist around the world to-day. A single regula- Two main designs of regulatory authorities exist tor in the form of a Director, Director General around the world to day. A single regulator in the form or Chairman has the advantage of a quick de- of a Director, Director General or Chairman has the cision-making process in a fast changing in- advantage of a quick decision-making process in a dustry. A collegial body, on the other hand, fast changing industry. A collegial body, on the other may generally be slower, but has the advan- hand, may generally be slower, but has the advan- tage of offering participatory approach and a tage of offering participatory approach and a sharing sharing of responsibility. of responsibility. All seven existing regulatory agencies in The current situation in SADC member states shows SADC, except one, are collegial. Also, the ma- that different designs have been implemented. Look- jority of the existing Regulatory Authorities in ing forward, a small collegial authority of between SADC Member States have part-time mem- three and five members would seem to be ideal. bers, but there is also an example of mixture of Membership can be full-time or part-time depending one full-time member (the Chairman) and part- on the allocation of organizational tasks and matters time members. A small collegial authority of (management functions). It has the following advan- between three and five full-time members tages: would seem to be ideal. It has the following advantages: a) Members concentrate on and master their re- members concentrate on and master their re- sponsibilities; sponsibilities; b) it avoids conflict of interest more effectively it avoids conflict of interest more effectively than other mechanisms; and selection and than other mechanisms; commitment is likely to be more serious for selection and commitment is likely to be more full-time members than for part-time mem- serious for full-time members than for part-time bers. members. c) It allows different members to focus on spe- 2.5.8. Selection Criteria cific issues which is especially important in a Members should be appointed on the basis of world of fast technical progress and conver- their competence and integrity rather than on gence where different qualifications can im- political considerations, such as mere repre- prove the overall efficiency of the authority sentation of interest groups. In addition to the professional qualifications referred to in para- 2.5.8. Selection Criteria graph 2.5.6, members should be free from Members should be appointed on the basis of their disqualification relevant to appointments to competence and integrity. In addition to the profes- high public office. A term of 5 years, with a sional qualifications members should be free from mechanism for rotation of members to ensure disqualification relevant to appointments to high pub- continuity, would be desirable. lic office and be free from conflict of interest. A term 2.5.9. Appointment and Removal of 5 years, with a mechanism for rotation of members A consultative process in the selection of to ensure continuity, would be desirable. members and the Chief Executive Officer (CEO) of the Regulatory Authority would en- 2.5.9. Appointment and Removal sure appointment of persons with the required A consultative process in the selection of members attributes. and the Chief Executive Officer (CEO) of the regula- tory authority would ensure appointment of persons The appointing authority would be the Head of with the required attributes. The appointing authority State or the Sector Minister on the recommen- would be the Head of State or the Sector Minister on dation of some committee, such as a Select the recommendation of a special committee. Protec- Parliamentary Committee or other appropri- tion against arbitrary removal of any member of the ately constituted committee. Protection against regulatory authority is a crucial element of regulatory arbitrary removal of any member of the Regu- independence. It is proposed that removal of a mem- latory Authority is a crucial element of regula- ber should be by the appointing authority and for tory independence. It is proposed that removal cause, such as misconduct or incapacity, on the rec- of a member should be by the appointing au- ommendation of a judicial committee as is usually the thority and for cause, such as misconduct or case with the removal of an ombudsman, an electoral incapacity, on the recommendation of a judicial commissioner or a similar official. These procedures committee as is usually the case with the re- are necessary because, by nature, a regulatory au- moval of an ombudsman, an electoral com- thority is a quasi-judicial body. missioner or a similar official. 2.5.10. Resources These procedures are necessary because, by International and regional experience suggests that The section on resources and financing of the authority nature, a Regulatory Authority is a quasijudicial there is a need to avoid making Regulatory Authority allows for a great degree of flexibility. Today, the different body. dependent on the regular budget of government and systems have diversified even more and in a number of 2.5.10. Resources to draw upon the industry for the financing of regula- countries financing takes place from the market e.g. by the The independence and effectiveness of the tory functions. There are number of options to finance contribution of “cost shares” according to market shares. regulator in the market will depend largely on regulatory activities, ranging from fees on licences for This could, in case of non-payment, bear the risk of impact the financial and human resources available to access to limited resources - such as radio spectrum on the authority’s independence. the Authority. International and regional ex- - through taxes on services, to a percentage on reve- perience suggests that there is a need to avoid nues of all operators in the market. International ex- making Regulatory Authority dependent on the perience has shown that due to the dynamism of the regular budget of government and to draw industry, the authority needs to collect and control its upon the industry for the financing of regula- own financial resources. This would provide the regu- tory functions. There are number of options to latory authority the required flexibility to respond to finance regulatory activities, ranging from fees the changing regulatory demands of the industry. on licences for access to limited resources - Non-conditional supplements from other sources (e.g. such as radio spectrum - through taxes on grants from government or international organisa- services, to a percentage on revenues of all tions), but excluding operators, association of opera- operators in the market. International experi- tors and any other interested entity bearing on the ence has shown that due to the dynamism of ICT company operations, should be allowed. the industry, the Authority needs to collect and control its own financial resources. This would The independence and flexibility of the regulatory provide the authority points to freedom for the Authority to deter- mine level of funds to be raised for its operations and Regulatory Authority the required flexibility to budget. However, the magnitude of the fees to be respond to the changing regulatory demands levied by the authority for the purpose of its opera- of the industry. tions should be directly related to the costs of such operations. There are other options for funding the Regula- tory Authority, for example: 2.5.11. Staff Through Government budget. As an autonomous body, the authority should have Through Government budget for start-up the freedom to appoint, exercise discipline and re- funds. move staff as well as to determine their terms and Supplementing the Regulatory Authority’s own conditions of service, and the principle of transpar- funding from the Government budget. ency, accountability and good corporate governance. The independence and flexibility of the Regula- The staff should be multidisciplinary. In addition to the tory Authority points to freedom for the Author- professional qualifications some of the staff should be ity to determine level of funds to be raised for skilled in human resources development and admini- its operations and budget. However, the mag- stration. In a converged ICT regulatory authority there nitude of the fees to be levied by the Authority should be an equitable representation of staff in all for the purpose of its operations should be the ICT sub-sectors. directly related to the costs of such operations. 2.5.11. Staff 2.5.12. The Regulatory Process As an autonomous body, the Authority should To avoid any doubt about the independence of the The proposal is to strike the first paragraph as this has have the freedom to appoint, exercise disci- regulator, it becomes essential that the decision mak- been said several times before. The issue of appeals pline and remove staff as well as to determine ing process in the regulatory authority is transparent against the decision of the national regulatory authority is their terms and conditions of service. The staff to all parties involved and affected by the ruling of the important and should remain where it is. should be multidisciplinary. In addition to the authority. professional qualifications referred to in para- graph 2.5.6, some of the staff should be skilled Transparency can be achieved by incorporating, into in human resources development and admini- the legislation, mechanism that would allow for the stration. wide diffusion of proposed and forthcoming rulings. 2.5.12. The Regulatory Process Public consultations, opportunities for reviews, and Whilst the autonomy of the Regulatory Author- other related processes, that open the regulatory ity is essential to guarantee fairness in its deci- process to interested parties and the public in gen- sion making, yet, autonomy, independence, eral, reinforce the legitimacy of the regulator and, and other related concepts are fairly subjective therefore, should be encouraged. and elusive notions and , therefore, contest- able and questionable from various quarters of A fair and equitable ruling in the sector should allow the industry at different points in time. for appeals from the decision of the Authority. Here, there is also a need to specify, in legislation, the For this reason, and to avoid any doubt about mechanism and procedures required to appeal the independence of the regulator, it becomes against the decisions of the authority and how they essential that the decision making process in should be carried out. the Regulatory Authority is transparent to all parties involved and affected by the ruling of In view of the technical and legal nature of regulatory the Authority. matters, appeals should be to a judicial tribunal rather than an administrative authority, such as the Minister. Transparency can be achieved by incorporat- This can be implemented via a special review and ing, into the legislation, mechanism that would appellate tribunal, the regular judicial system or the allow for the wide diffusion of proposed and competition authority’s respective system, if it exists. forthcoming rulings. Public consultations, op- portunities for reviews, and other related proc- Some regulatory matters require quick decisions, One could argue that after a decade of experience with esses, that open the regulatory process to in- which are not possible with the normal judicial sys- liberalised and regulated markets, the idea of a speciall terested parties and the public in general, rein- tem. In the circumstances it is proposed that appeals appellate tribunal may not be the best solution any longer. force the legitimacy of the regulator and, there- against the decisions of the regulatory authority, on Therefore, one could consider to strike this provision in fore, should be encouraged. tariffs and other time-sensitive matters, should be light of experience in SADC member states handled by a tribunal appointed by the head of a A fair and equitable ruling in the sector should country's judiciary and presided over by a judge or a allow for appeals from the decision of the Au- person qualified for appointment as a judge. The de- thority. Here, there is also a need to specify, in cisions of the tribunal should be final. The ICTs legis- legislation, the mechanism and procedures lation should stipulate procedures, including time lim- required to appeal against the decisions of the its for decisions, for such a tribunal. There should be agency and how they should be carried out. In a right of appeal against other decisions of the regu- view of the technical and legal nature of regu- latory authority to a superior court e.g. High Court or latory matters, appeals should be to a judicial Supreme Court. However, in order to avoid that po- It is proposed to clarify that one needs to avoid that claims tribunal rather than an administrative authority, tentially lengthy court procedures delay or stop the against the regulator lead to an unsatisfactory delay. such as the Minister. There is no appellate implementation of important regulation national legis- Therefore, regulatory decisions have to be implemented system for semi-judicial decisions in SADC lation should contain that claims and the filing of in- and adhered to. If courts decide otherwise later, then a countries that is separate from the court sys- junctions against decisions of the regulatory authority new decision of the regulator may be required. Worldwide tem. shall have no suspensive effect. countries which instead have allowed for suspensive ef- fects have run into trouble- Some regulatory matters, for example tariffs Legislation should give the regulatory authority the determination and/or regulation require quick flexibility to determine its agenda and to make rules decisions, which are not possible with the for conducting its affairs, subject to the overriding normal judicial system. In the circumstances it requirement of transparency. is proposed that appeals against the decisions of the Regulatory Authority, on tariffs and other 2.5.13 Enforcement time-sensitive matters, should be handled by a The regulatory authority should act only in accor- This section is intended to strengthen the regulator in en- tribunal appointed by the head of a country’s dance with the powers conferred on it, the functions forcement. It is proposed to add two issues to make the judiciary and presided over by a judge or a and duties assigned to it by the relevant legislation provision even stronger. person qualified for appointment as a judge. and general guidelines published by the Minister. The decisions of the tribunal should be final. The telecommunications legislation should In line with international trends, efforts shall be made stipulate procedures, including time limits for to promote voluntary compliance of operators and decisions, for such a tribunal. There should be alternative dispute resolution mechanisms. a right of appeal against other decisions of the Regulatory Authority to a superior court e.g. It is proposed that the regulatory authority should High Court or Supreme Court. have the power, where an ICT service provider or user of radio frequency spectrum contravenes the Legislation should give the Regulatory Author- provisions of legislation or licence, to impose sanc- ity the flexibility to determine its agenda and to tions, including suitable fines. The authority should make rules for conducting its affairs, subject to also have necessary judicial powers of enforcement the overriding requirement of transparency. of its decisions. A member of the public who contra- venes the provisions of the ICTs legislation will be 2.5.13 Enforcement guilty of an offence and liable for an appropriate fine The Regulatory Authority should act only in or other sanction by the Authority. Contravention of accordance with the powers conferred on it, the ICTs legislation by service providers or members the functions and duties assigned to it by the of the public should also be subject to sanctions un- relevant legislation and general guidelines der general legislation provided that a person is not published by the Minister. punished twice for the same offence. In order to avoid any wrong incentives, penalties issued by the author- It is proposed that the Regulatory Authority ity shall not be payable to the authority’s budget or should have the power, where a telecommuni- account. cation service provider or user of radio fre- quency spectrum contravenes the provisions 2.5.14. Relationships between Regulatory Authority Section 2.5.14 in our view was important at the time regu- of legislation or licence, to impose sanctions, and Others lators were established but today, the content is a mere including suitable fines. The Authority should Although independent, the regulatory authority will repetition of previous statements about functions and inter- also have necessary judicial powers of en- have relationships with other institutions and authori- faces. forcement of its decisions. A member of the ties and should be accountable for its actions in car- public who contravenes the provisions of the rying out its responsibilities. The following relation- telecommunications legislation will be guilty of ships and modes of accountability are proposed. an offence and liable for an appropriate fine or other sanction by the Authority. Contravention 184.108.40.206. With Ministry Responsible for ICTs The development of these Guidelines by the Minister is in of the telecommunications legislation by ser- The Minister is responsible for broad policy and over- line with point 4 of the checklist above which refers to the vice providers or members of the public should all administration of the ICTs legislation. It is pro- legislative process also be subject to sanctions under general posed that the Ministry be responsible for issuing One may wish to clarify that the ministry responsible for legislation provided that a person is not pun- guidelines on universal service/access. The Minister ICT may not have “ICT” embedded in its name. Further, ished twice for the same offence. may determine in which market segments it will take one should consider that the responsibilities may be 2.5.14. Relationships between Regulatory Au- place. vested with several ministries depending on the different thority and others issues such as e.g. the Ministry of Transport, of Justice, Although independent, the Regulatory Author- Ministry of the Interior , Ministry of Communications. Thhe ity will have relationships with other institutions content of 220.127.116.11. therefore applies to all minstries to and authorities and should be accountable for which relationships will exist. its actions in carrying out its responsibilities. The Minister should have the power to give to the It is proposed to strike this. Due to unclarity regarding the The following relationships and modes of ac- Regulatory Authority general, but not specific guide- extent of guidelines and what are general as opposed to countability are proposed. lines on licensing. Such guidelines should be issued specific guidelines, such a provision will not help the mar- 18.104.22.168. With Ministry Responsible for Tele- after public consultation and published in the official ket. One could discuss whether this should be done in communications gazette. The regulator will determine the number of consultation with the regulator The Minister is responsible for policy and entrants and the related terms and conditions. overall administration of the telecommunica- tions legislation. 22.214.171.124. With Parliament It is proposed that the Ministry be responsible The regulatory authority should report to Parliament for issuing guidelines on universal ser- through the Minister. This should be done through the vice/access. submission of an annual report on the activities of the The Minister may determine the degree of lib- authority showing achievements in carrying out its eralisation and in which market segments it will mission. take place. The Minister should have the power to give to the Regulatory Authority gen- 126.96.36.199. With Courts and Tribunals eral, but not specific guidelines on licensing. The Courts or special Tribunals can review disputed If a court system of administrative courts exists in the Such guidelines should be issued after public decisions of the regulatory authority. countries we recommend to use the administrative courts consultation and published in the official ga- for these procedures. zette. The regulator will determine the number 188.8.131.52. With Auditors of entrants and the related terms and condi- The accounts of the authority should be audited by a tions. country's Auditor General or by an auditor appointed 184.108.40.206. With Parliament by the authority's members. The Regulatory Authority should report to Par- liament through the Minister. This should be 220.127.116.11. With Users and the General Public done through the submission of an annual re- The authority is responsible for: port on the activities of the Authority showing a) consulting with users and the general public; achievements in carrying out its mission. b) the provision of information; and 18.104.22.168. With Courts and Tribunals c) the investigation of complaints. The Courts or special Tribunals can review disputed decisions of the Regulatory Authority. 22.214.171.124. With Operators and Service Providers 126.96.36.199. With Auditors The authority is responsible for the provision of infor- The accounts of the Agency should be audited mation and settlement of disputes and third party by a country’s Auditor General or by an complaints. Auditor appointed by the Authority’s members. 188.8.131.52. With Users and the General Public The Authority is responsible for: consulting with users and the general public; the provision of information; and the investigation of complaints. 184.108.40.206. With Service Providers The Authority is responsible for the provision of information and settlement of disputes and third party complaints. 2.6 ROLE OF INVESTORS AND OPERA- 2.6 ROLE OF INVESTORS AND OPERATORS TORS 2.6.1 A New Strategy 2.6.1 New Vision for the Future In the past, government provided all resources. Fi- Proposal to shorten this section. In the past, government provided all resources. nancial resources for sector development, in particu- Financial resources for sector development, in lar, were obtained principally from multilateral lending particular, were obtained principally from multi- or donor agencies as well as bilateral governmental lateral lending or donor agencies as well as or other government-sponsored sources. This has bilateral governmental or other government- changed and there need to be major changes in the sponsored sources. These sources have either whole approach to resource mobilisation, utilisation dried up or are being drastically curtailed, and and management. Still, government has a different private and local and foreign sources are be- but important role to play even in this new environ- coming more and more the norm. To get ac- ment. cess to these resources and complement the Government, acting through the Ministry responsible little available public and own institutional re- This part to some extent repeats previous statements. One sources, there needs to be major changes in for ICTs, has the key responsibility for providing a could consider to strike or shorten it as the new content is the whole approach to resource mobilisation, vision for the future of the ICTs sector. The Ministry rather limited. utilisation and management. Still, government should design explicitly a policy framework, for in- vestment, competition and economic growth of the has a different but important role to play even in this new environment. industry, which both public and private sectors can It may not be feasible to prepare a separate investment use as a reference for their own commercial decision- strategy for the ICT sector alone but this may be embed- Government, acting through the Ministry re- making. Additionally, the Ministry should devote a ded in the country’s overall strategy to attract foreign in- sponsible for telecommunications, has the key great share of its resources to produce long term sec- vestment. responsibility for providing a vision for the fu- tor strategies. ture of the info-communications sector. The Ministry should design explicitly a policy For this purpose, the Ministry should encourage all These arguments have also been stated before. For the framework, for investment, competition and the interested parties to fully be involved in the follow- matter of having a leaner and clearer document, one could economic growth of the industry, which both ing : strike the content. For the sake of completeness they are public and private sectors can use as a refer- a) Participate in provision of universal ac- shown here. ence for their own commercial decision- cess/service; making. Additionally, the Ministry should de- b) Attract more private sector resources and fos- vote a great share of its resources to produce ter partnerships between private and public long term sector strategies as well as timely sectors; and accurate information and analysis which c) Develop a sector with efficiency, credibility, would be available to the public and private commercial integrity and good corporate gov- sectors alike, without discrimination, on a cost ernance; recovery basis. d) Provide quality and sustainable service with 2.6.2 Implementation of Structural Changes choice to consumers; and In building the info-communications industry, e) Keep abreast with and participate in develop- along with the reconfiguration of Ministry and ments in ICTs within SADC, Africa and glob- the Regulatory Authority, it is necessary to re- ally. design the operating environment to ensure f) Development of broadcasting networks and that infrastructure and services are actually fostering of converging technologies delivered to users at affordable prices. As pro- vided in the Protocol, structural changes have 2.7 SECTOR RESTRUCTIRING to be effected in phases. 2.7.1. Implementation of Structural Changes Ideally, the structural changes of institutions, In building the ICTs industry, along with the recon- This section can be shortened as it contained a timeline concerned by policy development and policy figuration of Ministry and the Regulatory Authority, it and task list for market opening and sale of assets in the enforcement, would be in the following se- is necessary to re-design the operating environment state owned operator. quence: to ensure that infrastructure and services are actually Establishing development strategy and creat- delivered to users at affordable prices. Over the dec- ing an enabling policy environment. ade since the implementation of SADC policies this Translating policy into legislation. has happened by national implementation of the Establishing an Independent Regulator. SADC policy and the creation of national regulatory authorities in a considerable number of countries These institutions ensure the adequate build- up and management of the industry. They do 2.7.2 Restructuring of Incumbent Operators Whether section 2.7.2 is needed in the future depends on so by focusing on the expansion of capacity for Some of the existing state owned ICT enterprises the status achieved in the different countries. service provision. This goal will require that (SOIEs are corporations established by special law No longer of much value, with the advent of convergence they undertake further operational restructuring (statutory corporations) or companies established the new regulatory frameworks. Furthermore, several in the following sequence: under a combination of special law and company law. countries in the interviews stated that they do not consider Incorporating the dominant state owned tele- They constitute essentially of providers of basic tele- to have an incumbent (= a historically monopolistic fixed communication enterprise (SOTE). communication services, broadcasting services, and network operator) Liberalising valued added and other non-basic IT services as dominant operators in the sector. services. Sale of Minority shares in the SOTE with ex- Restructuring was already an objective under the clusivity in fixed voice services for limited pe- Policy passed in 1998. Member States have achieved riod of time. progress in this to a varying degree. Depending on Sale of majority shares. the status achieved, member states should continue Removal of exclusivity and opening all ser- their efforts with respect to vices to competition. a) Full corporatisation Sale of all shares retaining only a golden b) Sale of minority or majority share share. c) Full authority to the management to run the business The actual sequence and the pace of change d) Accountability of management to sharehold- will depend on the circumstances of individual ers countries. As specified by the Protocol, indi- e) Gradual privatisation vidual countries or groups of countries may chose a faster pace (fast track) while others As shareholder, any government, through its Ministry, In reality, most of these companies are not competitive may adopt a slower pace (slow track). How- should stay out of the management of the SOIE, and due to lack of financing and the main source of financing ever, the changes will have to be well co- should ensure management autonomy on agreed that one could foresee is from the private sector through ordinated at regional level to ensure a reason- upon socio-economic strategic plans of the enter- privatisation. Corporatisation will not make Government able pace of overall regional growth and com- prise. If a Ministry requires the services of the SOIE, refrain from meddling in the affair of the companies, few petitiveness in the global market, a goal enun- it should buy them at commercial prices. Governments can manage that. Therefore, this provision ciated in the SADC Treaty could look a bit academic. 2.6.3 Restructuring of Dominant Operator Some of the existing state owned telecommu- Larger text blocks are suggested to be struck bevause nications enterprises (SOTEs) are corporations they address a market situation in the phase from monop- established by special law (statutory corpora- oly to competition. Most countries have passed that stage. tions) or companies established under a com- bination of special law and company law. They constitute essentially of providers of basic tele- communication services as dominant opera- tors in the sector. Such a corporation or com- pany usually lacks flexibility to pursue devel- opment and has to accommodate privatisation through the sale of shares and related transac- tions. The alternative is for governments to restruc- ture the SOTE to enable it to operate in a competitive market economy. The restructuring of a SOTE should encompass full corporatisa- tion, by bringing it fully under company law, followed by the sale of minority shares of the company. The Board should be given full au- thority to run the company including appointing top management. Management should be ac- countable through results. The aim of these processes is to give the SOTE sufficient management and financial autonomy in order to improve its overall per- formance. It is further proposed that governments should gradually privatise the dominant state owned enterprise. Various options are available for this kind of restructuring. They include: sale to a strategic equity partner or partners; a combination of sale of shares to a strategic equity partner and to the public; or sale of shares to the public only. Eventually the governments should sell all the shares, retaining only a golden share, if desirable in order to have a say in major deci- sions. Each country has to determine the mode of privatisation best suited to its circum- stances, such as need for market expansion and diversification, capital, foreign exchange, managerial and technical skills. As shareholder, any government, through its Ministry, should stay out of the management of the SOTE, and should ensure management autonomy on agreed upon socio-economic strategic plans of the enterprise. If a Ministry requires the services of the SOTE, it should buy them at commercial prices. 2.6.4 Issue of Exclusivity and Competition In the situation of shortages of capital, mana- gerial expertise and lack of technology that exists in SADC, the involvement of a larger number of service providers may be an attrac- tive option to consider. The benefits are the increase in financial and human resource ca- pacity to provide a larger infrastructure in a shorter time frame. This option, however, raises issues like competition and exclusivity. On one hand, it is widely recognised that com- petition helps attract investments through mul- tiple service providers whose interaction in the market lowers prices, improves quality of ser- vice at least cost and fosters innovation. These are obvious key factors for the rapid diffusion of info-communications technologies and ser- vices. As a result, competition is accepted as one of the necessary conditions for leap- frogging to the global information society (GIS). On the other hand, two imperatives must be satisfied. First, the industry must be made more attractive to investors. Second, some time could be required by the existing institu- tions (e.g. newly established regulators) and operators to adjust to new market conditions. Accordingly, there is a need to follow a pro- gressive approach in building the industry and a transition period may be required to allow the industry to face competitive challenges ahead. A limited period should be sufficient for gov- ernment and regulatory institutions, as well as the SOTEs, to acquire capacity to operate in a largely liberalised global economy. 2.6.5 Privatisation and Competition Strategies As prescribed in the Protocol, changes have to be effected in phases. Accordingly, below are proposals on the application of these strate- gies in the SADC region: Partial or total privatisation of the SOTE is to be undertaken by selling shares to a strategic investor. A limited period of exclusivity can be granted. This period can vary from country to country due to varying circumstances. However, in view of the impact of rapidly changing technol- ogy and the norm from experience elsewhere, an exclusivity period of up to 5 years is rec- ommended. While a country may decide to decentralise or unbundle the basic public switched telephone network (PSTN) under the SOTE, vertically or horizontally on the basis of network compo- nents and network coverage, it is considered that it will be more attractive to retain the inte- grated nature of the SOTE network intact dur- ing negotiation on exclusivity. The public switched telephone network is considered to be an integrated part of long distance domestic transmission network, and the international switching and transmission centre for technical and commercial reasons. In return, the strategic equity partner should not only bring financial resources but also managerial, technological and human resource development. In addition, during a period of exclusivity, the strategic equity partner has the obligations to meet set targets in line with policy objectives, including info-communications service penetra- tion; infrastructure modernisation and exten- sion; technical improvement of the network; and universal service and universal access. Competition may nevertheless be allowed in networks and services other than the inte- grated PSTN, including: Mobile cellular Radio Paging GMPCS Data Communication, including Internet, EDI and e-mail. Customer Premises Equipment importa- tion, manufacture, distribution, installation and maintenance. In this case, the SOTE can also participate in the provision of these services, in its full ca- pacity or through subsidiary companies, fully or jointly owned with other investors. After the period of exclusivity, a review should be carried out to consider the following op- tions, among others: Licensing more operators to provide switched voice services in competition over the whole country. Licensing more operators to provide switched voice services in exclusive territories over the country. Stability and predictability of the policy and regulatory environment and decisions are critical to investors, especially private investors interested in long term investments. It is impor- tant for a government to transparently set and respect consistent policies and conditions for investment, trading and operations in the coun- try for all businesses. The Ministry responsible for telecommunications and the Regulator have to devise fair and consistent policies in respect of investment and entry conditions specific to the sector and shall make them known to the public. In countries, where privatisation and/or compe- tition have already been introduced, it is impor- tant to review their policies and regulatory frameworks. This review will provide the nec- essary long- term stability, consistency and predictability that current and future investors need for their assurance and confidence on the viability of the telecommunications busi- ness in specific country and in the region. Fur- thermore, such a review is necessary in order to institute effective monitoring mechanisms for guarding against abuse of monopoly power. To achieve local and national participation as well as intra-regional investment and integra- tion, SADC Member States may consider allo- cating some shares of the SOTEs in priority to local and SADC investors,. These have to be carried out transparently and on a non- discriminatory basis, with public and regional interest being key considerations. 2.6.6 Employees In the process of corporatisation and privatisa- tion, the rights of employees, including pension rights, should be protected. During privatisa- tion a bloc of shares could be reserved for em- ployees in order to foster employee commit- ment and morale. Employees and their unions must be consulted about changes that affect them and the industry. Special training and development programme must be negotiated and introduced to ensure the re-skilling of em- ployees for the purpose of redeployment within the enterprise or industry. Where employees are in excess, redeployment within and outside the enterprise must be investigated and im- plemented over a period of time. Where re- trenchment is unavoidable, it must be applied as a solution of last resort. 2.6.7 Change Management It is essential for the success of the proposed changes that they are carried out smoothly and in a transparent manner. Government should ensure availability of the necessary information and resources for managing the change. 2.7 Role of Consumers and Users 2.8 Role of Consumers and Users Government should encourage the formation Government should encourage the formation of con- The formation of consumer interest groups remains a use- of consumer and user groups to give them the sumer and user groups to give them the opportunity ful element but it seems as if this does not require gov- opportunity to participate in the development of to participate in the development of ICTs. The regula- ernment support but rather initiative from the market. telecommunications. The regulator should en- tor should encourage the formal participation of such courage the formal participation of such groups groups through the establishment of an advisory through the establishment of an advisory committee on consumer affairs. committee on consumer affairs. The regulatory authority should make user rights and consumer complaints one of its priorities by establish- ing a specialized unit dealing with customer com- plaints and , where necessary, take these complaints to the operators. 2.8 Role of Labour 2.9. Role of Labour Due to the changes in the market, the text now is of more Labour is a key component in the transforma- Qualified personnel is a scarce resource for purpose general character and applies to all stakeholders. tion of the telecommunication sector and of ICT in general and specifically for regulation. should be consulted continuously. Labour is Therefore, all stakeholders in the market are encour- central to the development of new skills for a aged to support training and education of staff and new industry to gear SADC towards global strengthen the know-how of their employees as well competitiveness. This will require specialised as as the overall knowledge basis in the market. knowledge in the areas of policy, regulation, new technologies and services, and business management. PART 3 PART 3 SOME POLICY AND REGULATORY PRINCI- POLICY AND REGULATORY PRINCIPLES PLES Some key principles underpin the design of Key principles and policies are crucial to the overall policies for the provision of infocommunica- achievement of the goals of the ICT Policy. tions services crucial to the overall achieve- These principles are related to the following: ment of a universal service and universal ac- a) Universal access and universal service The principles have been updated in light of the content of cess. These principles are related to the fol- b) Price Regulation/Tariffs the introduction and section 2 above. lowing: c) Interconnection Universal service and universal access. d) Consumer Protection Tariffs. e) Frequency Spectrum and Orbital Slots Interconnection. f) Numbering Plan Frequency spectrum. g) Domain Names; We do not address Domain Name Regulation in these Numbering plan. h) New and advanced services; Policies in much detail (only with some general state- New and advanced services. i) Standards enforcement and Workmanship; ments) and also not in the Model Bill but that is I line with Standards enforcement. j) Local and Regional Indigenous participation in international practice. Indigenous participation in development. development and Investment; Social obligation. k) Social obligations Regional and international participation. l) Gender issues; m) Skill Development and Transfer of Technol- ogy; n) Regional and international participation: o) Fair Trade/Competition Issues; p) Research and development; q) Content Regulation; We do not address the last three issues in much further r) Information Security; detail in these Policies (only on a general level) and also s) Cyberlaw not in the Model Bill but that is I line with international practice 3.1 Universal Service and Universal Access 3.1 Universal Access and Universal Service The provision of universal service/access is The provision of universal access/service is one of The section on universal access / service provides all one of the most important objectives of tele- the most important objectives of ICTs policy and leg- general rules which could be thought of for the topic with- communications policy and legislation. The islation. The concept of universal access/service, its out predefining a concrete approach for member states. concept of universal service/access, its content content and the policy for implementing it, may vary The previously contained idea of a specialized authority in and the implementing policy may vary depend- depending on a country's specific needs and the very our view is not useful. There is no reason why the national ing on a country's specific needs. The concept nature of the ICT sub sector concerned. The concept regulatory authority should not be able to take care of the and policy must be sufficiently flexible to adapt and policy must be sufficiently flexible to adapt to the matter. to the changing needs of the country con- changing needs of the country concerned which also cerned. It is important for governments to play encompasses technical and economic developments. The Article can hardly be any more concrete due to very an active role to ensure that the provision of It is important for governments to play an active role different situations in member states implying that any universal service/access is successful. How- to ensure that the provision of universal ac- more prescriptive policy from SADC could be refused to ever, it is also necessary for governments to cess/service is successful. However, it is also neces- implement. examine how responsibilities can be appropri- sary for governments to examine how responsibilities ately allocated to telecommunications opera- can be appropriately allocated to ICTs operators and In comparison to the original policy document, the se- tors and local authorities, particularly in a com- local authorities, particularly in a competitive multi- quence of “service” and “access” has been changed in petitive multi-operator environment. operator environment. order to reflect today’s policy approach to the universal provision of telecommunications and broadcasting. Universal service entails the following: Universal service entails the following: Assured access to all existing users. a) Assured access to all existing users; In 1998, universal service was merely focused on tele- Provision of access to the national telephone b) Provision of access to the national telephone communications. Today, it also entails broadcasting and network to all potential users. network to all potential users; the possibility to provide different services via different Provision of service on standard terms and c) Provision of broadcasting programmes to all networks and different types of access. conditions. existing users; Provision of service on affordable terms. d) Provision of service on standard terms and There are different approaches to financing conditions; universal service obligations, some of which e) Provision of service on affordable terms. are: The provision of universal access / service is not The policy is rather pessimistic with respect to the abilty to • A telecommunications operator must provide guaranteed by the market as the economic conditions find solutions for providing universal access / service. It service to urban, rural and remote areas as a for its provision may not favourable. This may trigger does not look at the “play” component of “pay or play” but condition of the licence or specified in the per- the question of defining a framework under which directly addresses financing issues. At least the “play” formance contract. such access and service can be provided. There are component is not worked out in detail. • Service providers engaged in an interconnec- different approaches to financing universal access / tion agreement may be required to pay certain service obligations, some of which are (whereby op- charges, with some or all of the charges being tions b) and to some extent also d) only apply to tele- used to provide service to rural, remote and communications and are hardly applicable to broad- There is an unresolved problem here due to convergence. unprofitable areas. casting) Can a universal service problem be overcome through • A telecommunications operator may have the a) ICTs operator must provide service to urban, converged technology? If e.g. the universal service obliga- choice of paying certain charges into a rural and remote areas as a condition of the tion for broadcasting is not fulfilled, can it be overcome by universal service fund or providing the service license or specified in the performance con- the provision of IPTV via “telecom networks”? if so, how is directly itself. tract; this to be reflected in a policy or a law? • Where the incumbent telecommunications b) Service providers engaged in an interconnec- operator cannot or does not want to provide tion agreement may be required to pay certain service to rural or under-served areas, the op- charges, with some or all of the charges being portunity will be given to other service provid- used to provide service to rural, remote and ers to attain universal service/access goals. unprofitable areas; • A transparent government subsidy financed c) ICTs operator may have the choice of paying from its tax revenues helps pay for service to certain charges into a universal service fund under-served and high-cost areas, including or providing the service directly itself; rural and remote areas. d) Where the incumbent ICT operator cannot or does not want to provide service to rural or To take care of the universal service obligation under-served areas, the opportunity will be in its specific environment, a country may as- given to other service providers to attain uni- sign the responsibility of designing related versal service/access goals; policies to a Universal Service Agency/Unit, e) A transparent government subsidy financed established under the auspices of either the from its tax revenues helps pay for service to Ministry or the Regulator. The Agency/Unit under-served and high-cost areas, including may also be responsible for ensuring the im- rural and remote areas. plementation of approved policies. The regulatory authority should take care of the uni- versal service obligation in its specific environment. It To start, a Universal Service Fund may be set- may involve other authorities or specialized persons up, through one or more of the above (experts) which can contribute specific know how to approaches, to finance the installation of ser- relevant topics regarding population distribution, cov- vices in areas where it may not be economical erage with services, user needs etc. to do so. Policies that encourage operators to provide telecommunications in unprofitable To start, a Universal Service Fund may be set-up, areas can thereby be implemented by way of through one or more of the above approaches, to government incentives through the finance the installation of services in areas where it Agency/Unit/Fund. may not be economical to do so. Policies that en- courage operators to provide ICTs in unprofitable areas can thereby be implemented by way of gov- ernment incentives through the Authority/Unit/Fund. Such a fund should only be set up when there is a clear strategy of how to ensure the provision of uni- versal access / service. This involves that a concept has to be developed that covers the “collection” of monies for the fund as well as the use of the fund for specific implementation projects. 3.2 Tariffs 3.2 Price regulation / tariffs Usually, operators should file tariffs for ser- When determined necessary, operators should file Price regulation on this general policy level needs to cover vices that are regulated by the regulatory body. tariffs and fees (e.g. subscription fees for pay televi- the very different situation from monopolistic markets in These tariffs should be published, thereby re- sion) for services that are regulated by the regulatory which excessive pricing to the disadvantage of users has ducing the possibility of discrimination. The body. These tariffs should be published, thereby re- to be avoided by regulation to price regulation in markets regulatory authority should intervene if an op- ducing the possibility of discrimination. The regulatory with competition where the relationship between wholesale erator abuses its dominant position. To allow authority should intervene if an operator abuses its and retail is the crucial aspect. For member states the for a competitive regime, suitably re-balanced, dominant position through prices which deviate from rules in the SADC telecommunications policy needs to be cost-orientated tariffs are required. To do so, a competitive market standard. To allow for a com- broad enough to cover these different situations. The rules the factors that have to be taken into consid- petitive regime, suitably re-balanced, cost-orientated try to do so, allowing enough flexibility and degree of detail eration, to allow for fair competition in domes- tariffs are required. for national implementation. tic, long-distance, and international traffic, in- clude the following: Factors that have to be taken into consideration, to The discussion on tariffs focuses on issues that are rele- The award of specific service areas to local allow for fair competition in domestic, long-distance, vant for the fixed network more than for the mobile sector. operators; application of adequate routing and international traffic, are amongst others : This reflects the different status of competition in both rules for transport of info-communications be- a) Affordability segments but may be of less relevance due to the low tween different urban and rural areas; estab- b) Cost of service provision; penetration with fixed networks. lishment of a reasonable national or interna- c) rebalancing tional access charge (i.e. an amount that long- d) competition distance operators have to pay to the local operators to originate or terminate calls); and In the context of monopoly, ICTs enterprises design introduction of higher tariffs for local communi- their tariffs on the basis of their actual costs and us- cations and of cost-orientated accounting ers are price-takers. The Regulatory Authority has to rates, in the light of tariffs re-balancing. intervene to ensure that monopoly pricing does not Tariffs are among the key factors that influence impose a limit on demand and does not imply anti- competition and the rate of penetration of ser- competitive effects where new licensees have al- vices and should be guided by the principle of ready been allowed to enter the market.. affordability. This principle relates the cost of services to the purchasing power of users to The choice of the effective tariffs regulation system allow the widespread diffusion of services. must however be weighed against the following re- Tariffs are set differently under monopoly and quirements: competition market structures. a) The urgency of tariffs re-balancing, stemming from the imminent reduction of international In the context of monopoly, a telecommunica- and/or monopoly tariffs; tions enterprise designs its tariffs on the basis b) The importance of assuring investors of a of its actual costs and users are price-takers. reasonable return on investment to raise the The Regulatory Authority has to intervene to attractiveness of the SADC market; ensure that monopoly pricing does not impose c) The necessity to have affordable tariffs to in- a limit on demand. crease demand; 3.2.1 Tariff Regulation Schemes d) The improvement of efficiency of operating The three popular tariff schemes applicable for units to achieve cost-reduction; and tariff control are price caps, rate-of-return, e) The elimination of cross-subsidisation. and market forces. Price-cap and Price-floor is a scheme whereby a “cap or ceiling” as well as a “floor” are placed on the prices of a basket of services, with an annual inflation factor. This price-cap approach is based on the notion that, for the dominant operator, prices should increase at a rate equal to the general retail price index less an allowance for the expected productivity gain of the operator. Price cap is therefore designed not only to limit profit to a reasonable level but also to encourage efficiency. It is applicable where a proper system of price index exists. Furthermore, a plan, to reduce price progres- sively in relation to a cost-reduction schedule, should be available. Rate of return follows the cost-based ap- proach. To maintain a targeted return on in- vestment, tariffs are adjusted on a cost-plus basis. The principle is to achieve a predeter- mined margin of profit by adding a certain per- centage of mark-up to average variable costs and overhead expenses. The rate of return method allows freedom to enterprise to adjust their prices according to costs. It is suitable in a competitive market due to the fact that mar- ket forces press enterprises to reduce their costs. Market forces apply in a competitive market and there is no one dominant operator. In this case, competition is working effectively and market forces determine tariffs. The criteria for choosing the principle for tariffs regulation shall, under the current circumstances, be first to achieve a high telephone density; second, to encourage the introduction of advanced info- communications services; and finally, to pro- vide a worldclass quality of service. 3.2.2 Tariff s re-balancing Re-balancing of tariffs is a process whereby the charges for local calls are adjusted to re- duce the charges incurred by long distance callers. Similarly the reduction of international call charges is necessary due to the interna- tional trend towards application of cost-based tariffs, and the need for SADC operators to become competitive. The choice of the effective tariffs regulation system must however be weighed against the following requirements: The urgency of tariffs re-balancing, stemming from the imminent reduction of international tariffs. The importance of assuring investors of a rea- sonable return on investment to raise the at- tractiveness of the SADC market. The necessity to have affordable tariffs to in- crease demand. The improvement of efficiency of operating units to achieve cost-reduction. The elimination of cross-subsidisation. 3.3 Interconnection 3.3 Interconnection and Access Interconnection specifies the transmission links 3.3.1. In Telecommunications Very detailed provisions have been included for intercon- that must be established between all public Interconnection applies to linking with suppliers pro- nection. They may look too detailed for a policy document, operators, including providers of value-added viding public telecommunications transport networks on the other hand, they simply describe what otherwise services, having an installation within a na- or services in order to allow the users of one supplier would be contained in national legislation or authority de- tional boundary to allow for inter-operability to communicate with users of another supplier and to cisions. However, the problem is to define the companies and inter-communications. access services provided by another supplier, where to which these obligations apply. In other regions, the de- specific commitments are undertaken. terminations would apply to companies which enjoy sig- Interconnection stems from the open network nificant market power. This would require a full market access principle, which determines that any Interconnection stems from the open network access definition and analysis procedure before issuing such de- network should be fully accessible to any other principle, which determines that any network should cisions. That may be too complex in the current situation operator in a non-discriminatory manner, while be fully accessible to any other operator in a non- and status of the market. Whether the reference to “in- protecting the privacy of subscribers and data- discriminatory manner, while protecting the privacy of cumbents” should be maintained is still to be debated es- bases. subscribers and databases. pecially in countries where the mobile networks are more sizeable than the fixed networks. The long term solution is For a competitive industry to work effectively, For a competitive industry to work effectively, sound to have the model bill define the market analysis proce- sound interconnection agreements are essen- interconnection agreements are essential. Telephone dure and in the intermediate time to oblige certain opera- tial. Telephone users need full interconnection users need full interconnection between competing tors active in the market to interconnect. between competing networks for access to all networks for access to all other users. New entrants other users. New entrants cannot offer a viable cannot offer a viable service without interconnection Further consideration should be made whether – beyond service without interconnection and without and without transiting through the network of the interconnection – also similar rules for “access” should be transiting through the network of the dominant dominant operator/s. defined. operator/s. The principles guiding interconnections are the fol- Interconnection entails the existence of physi- lowing: This means that there is a general obligation to intercon- cal and working links between: a) Obligation to interconnect : The principle that nect for all operators / service providers to ensure any-to- international gateways within and outside na- the dominant must provide any method of any-communication but the technical and economic condi- tional boundaries; technically feasible interconnection requested tions may be asymmetrical and depend on the companies all domestic public operators with the interna- by the new entrant must be laid down in law; market position (SMP). The principles apply to the fixed tional gateway; additionally, in order to ensure any-to-any and mobile sector alike. In any case, the provisions focus public operators, including public-switched communication a general obligation to inter- on an incumbent to provide interconnection. Also this is an telephone network, public data network, Inter- connect could be levied on any operator / ser- idea taken from fixed networks which were transferred net network, public data-bases, call-centres, vice provider. from monopoly to competition. In SADC member states directory-information centres, emergency ser- b) Points of interconnection: To avoid anti- the notion of an incumbent may be less relevant. The rules vices, personal communications networks, competitive practice the obligation to inter- could also be made obligatory for all operators which, fixed and mobile satellite services, satellite connect should be coupled with the estab- however, is a burden for new entrants. earth stations, and submarine cable stations; lishment of technically feasible points of inter- and connection in the incumbent's [relevant opera- other operators having the status of public op- tor’s] network, in such manner to allow the erators. new entrant to choose the best configuration. The detailed description of such points would Interconnection should facilitate the inter- not be set out in legislation. It should be for operability of new services, including carrier the regulator to set out such points of inter- preselection and number portability. Accord- connection if the parties have failed to reach ingly, links will perform signalling and control, agreement or if (in case when the agreement using either analogue or digital technology, is submitted for regulatory approval) the regu- including common channel signalling number lator finds the agreement arrived at to be un- 7, and will be used as a conveyor of informa- satisfactory; tion between the interconnected public net- c) Principle of non-discriminatory interconnection works. In the event of non-uniform number agreements: the incumbent operator should length, the operators involved in an intercon- not discriminate between different operators in nection agreement shall use an adequate term of quality and type of service (points of transformation interface and the cost shall be interconnection, time for implementation etc) borne equally by the operators. or in terms of price. The main concern is that the incumbent should not discriminate be- Moreover, an operator has to be compensated tween affiliated companies and other opera- for the traffic that it carries for another opera- tors; tor. Where additional equipment capacity is d) Right to establish interconnection agree- required, the carrier operator will use the long ments: this will enable parties to discuss and run incremental cost principle to calculate the set out all issues of concern. The interconnec- applicable tariffs. The applicable tariffs for in- tion agreement should address interconnec- terconnection should not be worse than those tion charges, payment terms, dispute resolu- applicable to own subscribers to promote ex- tion, traffic forecasts, technical standards, re- pansion of infrastructure. sale, numbering, number portability, universal service obligation and other related issues; The level and structure of interconnection tar- e) Right for the regulator to review: although par- iffs will, in fact, be major determinants of how ties may reach agreement on their own terms efficiently the industry uses scarce network the nature of interconnection and of the ICT resources, how well end-users prices reflect sector is such that it is recommended that the underlying costs, how rapidly incumbent op- agreement arrived at between the parties be erators improve their efficiency and how re- submitted for approval by the regulator, and sponsive the industry is to changing market that the regulator be granted the right or re- needs. view its terms to ensure fairness thereof and to enforce the requirement that the incumbent The principles guiding interconnections are the should not discriminate between different par- following: ties in terms of price and type of service; Interconnection between international gate- ways, both within and outside national bounda- Agreements shall be designed on the basis of trans- ries, is determined by bi-lateral accounting parency, objectivity and non-discriminatory principles; rates agreement, after authorisation received Agreement shall be legally binding on the involved from the Regulatory Authority. In the event operators; where two international gateways are estab- lished in a country, the two operators may Interconnection charges should be cost-oriented (i.e. have some transit or alternative routing the evolving best practice specifies that the cost agreement. standard should forward-looking Long-Run Incre- The operators should specify their short term mental Costs); and long term interfacing requirements, limited to 3 years, based on their traffic forecast to- Regulatory guidelines should be prescribed in ad- gether with the desirable grade of service. vance to facilitate interconnection negotiations be- Agreements shall be designed on the basis of tween operators. transparency, objectivity and non- discriminatory principles. Access to transmissions facilities should be assured Agreement should be bilateral and the Regula- under fair and equitable basis for any interested tor shall intervene for resolution only in the party. event of dispute. Agreement shall be legally binding on the in- Besides interconnection, in telecommunications there volved operators. may be a number of further issues of access to net- works (such as for purposes of unbundling, data ac- cess, collocation, access to platforms for the realiza- tion for number portabililty etc.). These issues should be handled according to the same principles as laid out above. 3.3.2. Access to transmission facilities for Broadcast- ers The issue here would be e.g. for access to masts and The regulatory authority should ensure fair and equi- towers of broadcasters for other programme producers table access to transmission facilities by broadcaster. with a broadcasting license in order to allow them to Regulatory guidelines should be put in place for this broadcast their programme without duplicating the infra- purpose. structure. 3.4 Consumer Protection The basic principle that regulators must observe The consumer rights are new but necessary. Competition should be to set up and maintain a policy of informa- should protect the consumer per se but in today’s envi- tion to consumers on their rights and obligations with ronment issues like spam e-mail, data protection etc. are regard to each ICT sub-sector. They have also man- important and safeguards for consumers are necessary. date to investigate consumers’ complaints against operators/providers for violation of terms of services, The role of the regulator in this should be active as was disputed bills, maintenance and repairs. already described and outlined in part 2. The promotion of the creation of consumers/users groups should be one of the more functional mecha- nisms through interactive exchanges on various is- sues of consumers/users affairs should be debated. The essential elements guiding the consumers' pro- tection are the following: a) Right to access to ICT services if the com- mercial conditions are met b) Non discrimination c) Right to access to billing details information d) Right to complaint about quality, delay, quan- tity, tariff with regard to the nature of ICT ser- vice provided e) Right to fair terms of services f) Privacy g) Right to be protected from misleading adver- tising h) Right to be protected from harmful content. Consumers should have the possibility to make use of their rights through complaints via the regulatory authority. 3.4 Frequency Spectrum 3.5 Spectrum and Orbital Slots Radio waves constitute one of mainstay of Spectrum is a key factor in the development of ICT Spectrum assignment and allocation tends to be an exten- info-communications and underpin the exis- infrastructure in a country. The increasing application sive”are of regulation. The proposal here only lays down tence of a vast array of radio-communications of radio-based technologies to provide access to ba- the very basic principles that need to be addressed and networks and services. Useful radio waves sic ICT services, from fixed and mobile cellular tech- leaves further details to the Model Bill and national imple- extend from frequency limit of 3 kHz up to 300 nologies and from satellite-based technologies, mentation. We changed the wording from “Frequency GHz, called the frequency spectrum. Radio places focus on spectrum management function, in- spectrum” just to “Spectrum” as it otherwise would be a spectrum is divided into eight bands, which cluding cross-border monitoring issues. Additionally, “double reference accommodate all types of radio transmission: spectrum issues are relevant with respect to broad- maritime communications, short-wave radio, casters and telecommunications providers in light of sound and television broadcasting, microwave e.g. digital switchover. Spectrum represents one of communications, satellite communications and the crucial factors in an era of convergence with re- radar. spect to the allocation of spectrum to certain applica- tions, services and operators or service providers. At national level, frequency spectrum has to be shared among the users of radio-based Consequently, spectrum has to be allocated and as- equipment, divided into radio and television; signed by the institution that delivers license to con- fixed and mobile telecommunications; mari- duct business of ICT services. In many countries time; security and miscellaneous and it is often where a ICTs regulatory authority exists, this institu- necessary to match demand for spectrum with tion has been assigned the responsibility to manage availability. It entails, therefore, a distribution of the whole spectrum range. This is the best possible a limited resource, raising the importance of arrangement. allocation and management of frequency spec- trum as a key national activity. Spectrum was tied to classical licensing. This is still largely the case but a trend has occurred to move Frequency spectrum management consists of away from service specific licensing of spectrum to a the following broad functions: more flexible approach. Different designs if spectrum Assignment of specific frequencies or groups allocation are thinkable in this respect considering of frequencies. technical and service neutrality. The determination and collection of fees. Allocation of frequency bands. In the case of tendering, it entails that the regulatory Monitoring and co-ordination of the use of authority shall initiate processes to select operators to spectrum. build infrastructure in the country. Licenses will be Frequency spectrum is one continuous bloc awarded inclusive of frequency spectrum, for the pur- with a number of sub-blocs, used by different pose of development, under conditions specified in categories of institutions. This single bloc can the tendering documents. be more effectively managed by a single insti- tution as it promotes accountability, eliminates Member States shall select the spectrum assignment any source of confusion and provides for processes they believe suit the market in the best proper records to be maintained. It is in har- possible way. Thereby it is important that such proc- mony with the establishment of a single info- esses are fair and transparent and give equal communications industry resulting from the chances to everybody wishing to participate. convergence between telecommunications, information technology and broadcasting. Frequency spectrum is a key factor in the de- velopment of info-communications infrastruc- ture in a country. The increasing application of radio-based technologies to provide access to basic telecommunications services, from fixed and mobile cellular technologies and from the planned satellite-based GMPCS technologies, places focus on spectrum management func- tion. Consequently, frequency spectrum has to be allocated and assigned by the institution that delivers license to conduct business of info- communications services. In many countries where a Telecommunications Regulatory Au- thority exists, this institution has been assigned the responsibility to manage the whole fre- quency spectrum. This is the best possible arrangement and it must continue. Frequency Spectrum is tied to licensing given that the license-holder can put his license into application only if he obtains the required fre- quency band and bandwidth. Accordingly, the procedure for allocating frequency spectrum shall follow the licensing procedure, as follows. For a new applicant, the tendering process or negotiation process may be followed. For the incumbent operator, the negotiation process will apply. In the case of tendering, it entails that the Telecommunications Regulatory Authority shall initiate processes to select operators to build infrastructure in the country. Licenses will be awarded inclusive of frequency spectrum, for the purpose of development, under conditions specified in the tendering documents. In the case of negotiation, an operator may seek a license to conduct a development pro- ject, which was not identified by the Telecom- munications Regulatory Authority. A license, inclusive of frequency spectrum, may be awarded if the conditions of the Authority are fulfilled. The license that is eventually awarded should make provision for the commitment for the award of additional bandwidth that the licensee may require during the life of the licence. 3.5 Numbering Plan 3.6 Numbering Plan The policy on numbers is limited to telephone The policy on numbers is limited to telephone num- General rules on numbering are required. As many differ- numbers and to the management of area and bers and to the management of area and exchange ent national implementations are possible, a general exchange codes only. In the monopolistic envi- codes only. In the monopolistic environment, it was framework is provided. Important aspects are that the ronment, it was adequate for the incumbent adequate for the incumbent operator to manage the numbers remain the property of the state and that the na- operator to manage the numbering scheme. numbering scheme. However, with the introduction of tional regulatory authority has full responsibility and power However, with the introduction of a wider range a wider range of ICT services and of competition, the for the design of the numbering space and the allocation of info-communications services and of com- numbering scheme has become more complex. This principles. petition, the numbering scheme has become activity has to be separated from the incumbent op- more complex. This activity has to be sepa- erator and transferred to the regulatory authority. Numbering issues are well suited but also complicated rated from the incumbent operator and trans- with respect to regional harmonization. ferred to the Telecommunications Regulatory This entails that the authority has the responsibility of Authority. ensuring the design and maintenance of an adequate Numbers are a scarce resource and need to be properly numbering scheme, incorporating all current and fu- managed. The design of the numbering system is crucial This entails that the Authority has the respon- ture services, in line with the forecast needs of the especially with respect to consumers to whom the number- sibility of ensuring the design and existence of country. The existence of a uniform numbering ing system shall be a tool to benefit from the possibilities a uniform numbering scheme, incorporating all scheme reduces the complexity associated with inter- of communication. current and future services, in line with the facing and interconnection, and improves the quality forecast needs of the country. The existence of of traffic flow in the national network. a uniform numbering scheme reduces the complexity associated with interfacing and The following principles will be followed: interconnection, and improves the quality of a) The authority will have to maintain co- traffic flow in the national network. ordination with the ITU for the allocation of country codes and numbering schemes of The following principles will be followed: new systems and services; The Authority will have to maintain co- b) The area exchange and communications sys- ordination with the ITU for the allocation of tems access codes as well as codes and country codes and numbering schemes of new number ranges for e.g. specific services systems and services. (value added services, short codes etc.) will The area exchange and communications sys- be under the responsibility of the authority. tems access codes will be under the responsi- This means it is the authority’s sole right to al- bility of the Authority locate and withdraw numbers and other ad- The individual operators will manage their own dressing elements to / from operators and directory number systems. service providers and c) The individual operators will manage their own directory number systems. Numbers are assigned to service providers and op- erators for usage, but they remain the property of the State, represented by the national regulatory author- ity. The authority is entitled to claim numbers in use back from operators and service providers in trans- parent procedures and based on non-discriminatory rules for implementation. Number portability is an issue of relevance for the numbering system. It is, however, to be allocated to topics of interconnection and access. It is recom- mended to introduce number portability to allow end users to benefit from competition in a simple and easy way. 3.7 Domain Names In close co-ordinantion with country code Top Level It is not standard that the national regulatory authority also Domain Names management sphere, the regulatory acts as the domain name administration for a country. authority should contribute to making available to the However, especially in some Arab countries, this tendency public the information and mechanisms of administra- becomes more common now. The international agree- tion and management of domain names. ments on how domain names registry work and cooperate is quite advanced so only general rules are needed at this The promotion of the creation of ad hoc groups to stage. review the effectiveness of current practices and pro- pose amendments deemed necessary to the relevant Given the nature of the discussions that have been and authority should be encouraged. still going on at the ITU on Internet Governance the de- sires of the developing world, SADC included is for the institutions of Governments to be involved in the manage- ment and administration of domain names. Whether it should be or not is open to debate. 3.6 New and Advanced Services 3.8 New and Advanced Services Monitor and facilitate the introduction of new The regulatory authority should on its own or in col- This section had to be revised in terms of addressing a advanced services like Global Mobile Personal laboration with other regulatory authorities from the specific unit that should take care of the task as well as Communications by Satellite (GMPCS), Very region monitor and facilitate the introduction of new finding a wording that is technologically neutral. Small Aperture Terminal (VSAT), Internet etc. and advanced technologies, (Internet, Voice over IP, at national and regional levels in a way that digital broadcasting, interactive services, multimedia, enhances policy objectives. etc), facilities and equipment (e.g. low cost delivery devices that facilitate universal service/access, etc) at national and regional levels in a way that enhances the achievement of policy objectives like universal service/access and diffusion of ICT applications such as e-commerce, e-health, education, etc. 3.7 Standards Enforcement 3.9 Standards Enforcement and Workmanship The Regulator, in consultation with the industry The Regulator, in consultation with the industry and The issue of standards has become less relevant on a and users, has to: users, and as far as not regulated by international national level over the last years due to international co- set national standards, when relevant, govern- standards or regionally harmonized policies, has to: operation. In regionally harmonized frameworks, often the ing the provision of telecommunications ser- a) set national standards, when relevant, govern- internal relationships build on the acceptance of standards vices and ensure compliance with them; ing the provision of ICT services and ensure and equipment from one country in all other countries. undertake type-approval of customer premise compliance with them; Therefore, the national role is reduced with respect to equipment (CPE) and set the rules for their b) undertake type-approval of customer premise those items that are not already covered by international connection to the network; ensure that the equipment (CPE) and set the rules for their and regional harmonization. Policy becomes relevant to needs of disabled people are taken into ac- connection to the network; avoid sub-standard production and trade, but that is rather count, particularly with regard to type-approval c) ensure that the needs of people with disabili- an issue of compliance and enforcement and not of tele- for customer premises equipment (CPE); and ties are taken into account, particularly with communications / broadcasting regulation. set applicable technical and quality standards regard to type-approval for customer premises in consultation with the telecommunications equipment (CPE); and industry and consumer bodies. d) set applicable technical and quality standards in consultation with the ICTs industry and consumer bodies. 3.8 Indigenous Participation in Development 3.10 Local and Regional Indigenous Participation in In developing the info-communications indus- Development and Investment; Skill Development and try, the long-term success will depend on the Transfer of Technology participation of investors, managers and work- This section has remained unchanged in the first part. The ers, belonging to the country and region. It is, In developing the ICTs industry and sector, the long- issue remains important, however, in our view it is difficult accordingly, necessary to plan, from the out- term success will depend on the participation of in- to achieve it in an environment that is largely consisting of set, the involvement of indigenous people in vestors, managers and workers, belonging to the the private sector. What could be done is that govern- the development strategy of the industry. This country and region. It is, accordingly, necessary to ments or public institutions offer trainings and programmes goal can be achieved through designing ade- plan, from the outset, the involvement of indigenous to enhance the skill set and knowledge basis of people quate schemes to ensure the mobilisation of people in the development strategy of the industry. working in the sector. The trend is that the activity is un- local investment, the development of entrepre- This goal can be achieved through designing ade- dertaken by regional and international bodies with ap- neurs, and the employment of local people as quate schemes to ensure the mobilisation of local proaches being made at country or regional levels. managers and operatives. and regional investment, the development of entre- preneurs, and the employment of local people asIn the second part we have added provisions which relate The guiding principles are the following: managers and operatives. to a similar issue Promote the development of human resources in the info-communications industry. The guiding principles are the following: Encourage technological transfer. a) Promote the development of human re- Conduct research and development in info- sources in the ICTs industry; communications policy, regulation, technology b) Encourage technological transfer; and services. Develop local investment and c) Conduct research and development in ICTs business management skills. Encourage and policy, regulation, technology and services; invest in local manufacturing schemes. d) Develop local and regional investment and business management skills; and e) Encourage and invest in local manufacturing schemes. All countries, particularly developing countries face the challenge of attracting and retaining high-quality employees. Member States should introduce creative and effective response to such a situation by leading other in best practices for human resources. Member States should promote : a) Education, training, and professional devel- opment opportunities, including in-service training programmes; b) Excellent working conditions; c) High quality work tools including ICT capabili- ties such as well designed authority intranets and high speed access to the Internet and other data services; d) Well-defined priorities; e) Outsourcing and Exchange of experiences with external expertise; f) Rewarding mechanisms to the staff members by providing financial incentives and introduc- ing bonus programmes. 3.9 Social Obligations 3.11 Social Obligations Social obligations for all operators may in- Social obligations for all operators may include, This is a very general statement that leaves full flexibility to clude, inter alia, universal service contribu- among others, universal service contributions, human member states to decide on whether or not to rely on such tions, human resource development, local resource development, local ownership, mainstream- a provision in the national implementation of the policy. ownership and participation. ing of gender and other empowerment issues and participation. 3.10 Consultation and International Participa- 3.14 Regional and International Participation Numbering / Sequence changed to ensure comparability tion with previous policy document Government and Regulatory Authority should: Government and Regulatory Authority should: participate effectively in international confer- a) participate effectively in international confer- This important sections fosters international cooperation ences, in consultation with other SADC mem- ences, in consultation with other SADC mem- and exchange which is an important cornerstone of re- bers, on issues relating to telecommunications; bers, on issues relating to ICTs; gionally harmonized policies. provide a forum for consultation with all stake- b) provide a forum for consultation with all holders at national and regional levels; and stakeholders at national and regional levels; mobilise and sensitise stakeholders to partici- and pate fully in international fora. c) mobilise and sensitise stakeholders to partici- pate fully in international fora. 3.12 Gender issues Men and women must be offered equal opportunities This section is new and reflects the COMESA approach to and have to be considered on the same basis in re- this issue. It could be integrated in 3.10 above cruitment, education, responsibility positions and de- velopment aspects, provided that they all meet re- quired conditions for a given case. 3.13 Fair Trade/Competition Issues The policy objectives pursued in ICT sector by pro- This new section combines consumer protection with the moting fair trade and competition are guided by the possibility to introduce to the regulatory regime some kind principles of non discrimination, transparency and of competition law type of regulation building on market technology neutrality, and may be summarised as analysis and the assessment of market power. following: However, many of the goals / objectives have already a) Ensure that consumers get the best choice in been presented previously above in relation to different terms of quality and quantity of services of- section / articles, so the content is not new. fered b) Prevent market distortion c) Stimulate investments and innovation in infra- structure as well as in services distribution and provision. The regulatory authority should publish guidelines highlighting the major issues that are, but not limited to : a) Major prohibitions to be indicated in relevant laws b) Relevant economic market and the global trends c) Anti-competitive conduct d) Barriers to market entry e) Assessment of market power f) Power to regulatory authority to impose struc- tural and behavioural remedies on opera- tors/providers engaged in anti-competitive conduct. The regulatory authority may develop policies on these issues for the ICT sector and should apply these policies jointly with the competition authorities where they exist. 3.16 Content Regulation The content policy aims to promote the local content Content Regulation gains in importance. Especially where development and consumption, and local content industries show signs of convergence, not only infrastruc- developers. It covers mainly broadcasters and Inter- ture topics arise but also content issues. Therefore, it net Content applications services. Content regulation would be useful to concentrate the content regulation at covers issues such as programmes quotas, air-time, the regulatory authority as well. Additionally, the section on allocation and drawing up a code of conduct in con- content regulation needs to be enhanced in scope which is sultation with content providers. why we have added text. However, no content applications service provider, or other person using a content applications service, shall provide content which is indecent, obscene, false, menacing, or offensive in character with intent to annoy, abuse, threaten or harass any person. The regulatory authority can act as a content forum for the purposes of this Part. A content code should be developed to provide guidelines on lawful content. It shall include model procedures for dealing with offensive or indecent con- tent. The matters which the code may address may include, but are not limited to: a) Impartiality, b) Accuracy c) Privacy d) Fairness e) Restrictions on the provision of unsuitable content; f) Methods of classifying content; g) Procedures for handling public complaints and for reporting information about complaints to the regulatory authority; h) National community/culture values and stan- dards, i) Correction and Apology j) Programmes and language k) Portrayal of sexual conduct l) Violence m) Stereotypes and Portrayals n) Cyber terrorism prevention mechanisms o) public information and education regarding content regulation and technologies for the end user control of content; and p) other matters of concern to the community. In the area of content regulation the regulatory au- thority shall have the same powers and apply the same approaches to dispute resolutions should such disputes occur. 3.17. Research and Development To meet the challenges of the region, effort must be This new section focuses on an activity that could help to done in research and development of suitable solu- grow R&D activities in the region. tions that should respond to numerous and various existing needs. This includes organisational aspects, software development, information security, human resources, content development, adapted legal framework and economic and financial aspect to en- sure continuity and durability. Regulatory authorities should play an incentive role on the industry of technology and knowledge and stimulate all interested parties to participate actively in research and development activities. 3.18. Cyberlaw In eras of convergence it is useful that regulatory au- thorities are also monitoring provisions regarding cy- berlaw. Although such policy areas may not be as advanced in SADC member states compared to other regions, regulatory authorities should keep observing the developments in the market on the following is- sues a) Cyber crime; b) Personal data protection; c) Electronic transactions; d) e-Signature / Certification; e) Cyber security CONCLUSION This document has outlined a flexible policy framework for the development of ICT infrastructure and services. Flexi- bility is necessary at this stage of development of the SADC region in view of the very dynamic nature of the ICT sector. The framework permits necessary adjustments to be adopted expeditiously and transparently but without adversely affecting existing services providers. This flexi- bility should be mirrored in the relevant legislation. Glossary of terms Glossary of terms: Basic telephone service Access - facility offered by one operator of a public The glossary has seen the addition of a large number of The provision of domestic or international tele- telecommunication network to enable another opera- new terms which have become relevant over the last de- communications service over the public tor of a public telecommunication network or a ser- case especially related to competition issues, interconnec- switched telephone network. vice provider to access its resources, particularly its tion, numbering etc. as well as some outdated terms have CEO physical infrastructure. been deleted. Chief Executive Officer Allocation - a decision by the national regulatory Company or Corporation authority, following its examination of the correspond- A problem is that the glossary contains terms and expres- An enterprise having a legal persona and hav- ing application, to grant a telecommunication network sions which are not used in the policy document otherwise ing the autonomy necessary to: make invest- operator the right to use the designated resource for but which are “left-overs” from the old policy. These ex- ment and divestment decisions, enter into joint its own account or for the account of its customers in pressions are highlighted in grey.. ventures, create subsidiaries, issue stock and accordance with the utilisation terms specified or re- bonds, and make other business decisions. A ferred to in the allocation decision Corporation, established under special legisla- Authorisation - Administrative act (individual licence, One could ask whether it is really necessary to have the tion (Statutory Corporation), might be given all concession, contract or general authorisation) which glossary in the policy document. All terms are also con- these powers. However, they are more likely to grants a set of rights and obligations to an entity and tained in the model bill and we have ensured consistency be fully realised in a corporation or company grants the entity the right to establish and exploit between the documents. established under company law. telecommunication networks or offer telecommunica- Core functions tion services Tasks of a Regulatory Authority that must be Basic service - covers the minimum set of capabili- undertaken in house. For example, issuing ties deemed necessary for use of the public tele- notices, attending to inquiries, settling dis- communications network. Current basic service in- putes, preparing briefs for members of the Au- cludes an access through a telephone line to domes- thority, initiating outsourcing actions and co- tic and international voice telephony service over the ordinating outsourced activities. public switched telephone network, emergency and Core staff directory services. The nucleus of skilled employees of a Regula- Broadcast - any radio-communication whose emis- tory Authority necessary for performing core sions are intended to be received by the public functions. Broadcaster - An entity that offers broadcasting ser- Corporatisation vices It refers to the transformation of a state owned Broadcasting Service - An entity that makes avail- telecommunications enterprise (SOTE) into a able for mass consumption, radio and television pro- business structure, usually by converting it into grammes to persons having equipment that is appro- a legal entity that has all of the freedom of ac- priate for that service. tion of a corporation established under com- Carrier Selection - a mechanism that permits a user pany law. to choose from among a number of authorised public Cross-subsidisation telecommunication network operators or authorised The practice of using surplus revenues gener- telecommunication service providers to route some or ated from one product or service to support all of that users for calls another service priced at less than full com- Consumer - a natural person who uses or requests a pensation rates. publicly accessible telecommunication service for Customer premises equipment or CPE in- non-business purposes cludes terminal equipment Convergence - the consolidation and integration of Equipment employed on the premises of a different technologies by a common digital transport customer of a public telecommunications ser- medium for any data provided by media, broadcast- The term “core functions” and “core staff” are not used any vice or private telecommunications to originate, ing, telecommunications. The underlying use of In- longer today. They also lack precision. route, or terminate telecommunications. CPE formation Technology (IT) is a common feature for includes telephone handsets (whether for wire- convergent industries. Convergence covers the inte- less or wireline communications), fax ma- gration of service providers, technologies, equipment, chines, computer modems and associated and markets that provide data in any format for infor- hardware and wiring internal to the customer’s mation and communications. premises (property on which the customer has Core functions - Tasks of a Regulatory Authority installed the CPE). that must be undertaken in house. For example, issu- Data communications ing notices, attending to inquiries, settling disputes, Digital transmission of information usually be- preparing briefs for members of the Authority, initiat- tween computers. ing outsourcing actions and co-ordinating outsourced Dominant operator activities. A regulatory classification of a telecommunica- Core staff - The nucleus of skilled employees of a tions operator that has the largest market Regulatory Authority necessary for performing core share in a given market segment or that is oth- functions. erwise able to exercise market power in the Corporatisation - It refers to the transformation of a same or other market segments. state owned ICTs enterprise into a business struc- Economic distortion ture, usually by converting it into a legal entity that Occurs when government interferes in the has all of the freedom of action of a corporation es- marketplace in a manner, which leads supplier tablished under company law. of goods or services to price them either above Cross-subsidisation - The practice of using surplus or below the actual economic costs of produc- revenues generated from one product or service to ing them. support another service priced at less than full com- EDI or Electronic Data Interchange pensation rates. The use of telecommunications and informa- Customer premises equipment or CPE includes tion processing to conduct business transac- terminal equipment- Equipment employed on the tions, often in an integrated network combining premises of a customer of a public ICTs service or different media, such as voice, text and data private ICTs to originate, route, or terminate ICTs. processing. CPE includes telephone handsets (whether for wire- Electronic messaging less or wireline communications), fax machines, The creation, transfer, storage, and retrieval of computer modems and associated hardware and text, graphics, images, voice, or messages of wiring internal to the customer's premises (property any nature entirely by electronic means. Mes- on which the customer has installed the CPE). saging implies retrieval at the recipient’s dis- Distribution - the making available pursuant to con- cretion. Facilities are generally provided for tractual clauses, of a number or a series of numbers filing, redirecting, and replying to messages to end-users by the holder of an allocated resource received. Data communications - Digital transmission of in- GIS or Global Information Society formation usually between computers. A society that is both technology and knowl- Dominant operator - A regulatory classification of a edge-orientated. The constituents of the soci- ICTs operator that has the largest market share in a ety, namely students, researchers, developers, given market segment or that is otherwise able to producers and users are dependent on infor- exercise market power in the same or other market mation, as a key resource, to pursue their ac- segments. tivities. Economic distortion - occurs when government GMPCS or Global Mobile Personal Communi- interferes in the marketplace in a manner, which cations by Satellite leads supplier of goods or services to price them ei- Geo-stationary or non-geostationary satellite ther above or below the actual economic costs of technology possessing the capability to offer producing them. telecommunications services directly through a EDI or Electronic Data Interchange - The use of mobile handset to a user. ICTs and information processing to conduct business GNP or Gross National Product transactions, often in an integrated network combin- The total value of all final goods and services ing different media, such as voice, text and data produced in the economy during a specific processing. period of time, usually a year. Electronic messaging - The creation, transfer, stor- Golden Share age, and retrieval of text, graphics, images, voice, or It is an entitlement, which confers on a gov- messages of any nature entirely by electronic means. ernment a special voting right (the control Messaging implies retrieval at the recipient's discre- vote), which would be required for certain cor- tion. Facilities are generally provided for filing, redi- porate actions of a privatised enterprise. These recting, and replying to messages received. include, for example, increasing or decreasing Frequency-spectrum management - all administra- the enterprise’s authorised capital stock; es- tive and technical actions, taken as a whole, aimed at tablishing the enterprise’s dividend policy; sell- ensuring a rational use of the radio-frequency spec- ing all or a substantial portion of the enter- trum by users prise’s assets; or intervening in other major Geographic number - a number in the national policy decisions concerning the affairs of the numbering plan in which part of the digital structure enterprise if, exceptional, predetermined cir- has a geographic significance used to calls to the cumstances occur, especially those affecting physical location of a network termination point the attainment of specific defined goals. The GIS or Global Information Society - A society that details and terms of the “Golden Share” would is both technology and knowledge-orientated. The be written into the privatisation agreement. constituents of the society, namely students, re- Incumbent searchers, developers, producers and users are de- The existing operator in a market which is pendent on information, as a key resource, to pursue opened to competition. their activities. Incumbent national operator or incumbent GMPCS or Global Mobile Personal Communica- The national telecommunications enterprise. tions by Satellite - Geo-stationary or non- INTELSAT geostationary satellite technology possessing the International Telecommunication Satellite Or- capability to offer ICT services directly through a mo- ganisation bile handset to a user. Infrastructure or Network GNP or Gross National Product - The total value of An integrated system of facilities, which com- all final goods and services produced in the economy prise the facilities, used to provide one or more during a specific period of time, usually a year. info-communications services. Golden Share - is an entitlement, which confers on a Interconnection - Technical, organisational government a special voting right (the control vote), and financial standards, which allow the which would be required for certain corporate actions interconnection of two or more distinct net- of a privatised enterprise. These include, for example, works, for instance the cellular radio network increasing or decreasing the enterprise's authorised and the fixed network within a country. capital stock; establishing the enterprise's dividend ITU - International Telecommunication Union policy; selling all or a substantial portion of the enter- Level playing field – A market condition prise's assets; or intervening in other major policy where new market entrants and existing ser- decisions concerning the affairs of the enterprise if, vice providers operate with equal opportunities exceptional, predetermined circumstances occur, and rights as the incumbent national operator. especially those affecting the attainment of specific Liberalisation (and Deregulation) - refers to defined goals. The details and terms of the “Golden the relaxation by government of formerly rigid Share” would be written into the privatisation agree- or constraining degrees of economic regula- ment. tion. Thereby, greater freedom is offered to Incumbent - The existing operator in a market, which market entry, providing operators with greater is opened to competition. flexibility to invest, alter operations and ser- Incumbent national operator or incumbent - The na- vices, and fix and negotiate tariffs. Liberalisa- tional telecommunications enterprise. tion does not mean the absence of regulations ICT (Information and Communications Technol- but a new set of regulations able to bring about ogy ) : refers to the technologies, including com- the intended relaxation. puters, telecommunications and audio-visual sys- Licence - An authorisation granted by a regu- tems, that enable the collection, processing, transpor- latory authority for the provision of telecommu- tation and delivery of information and communica- nications services or for the use of the radio tions services to users. frequency spectrum. Independent Regulator- A regulatory authority Licensing - An administrative procedure for which is free to make decisions on its day-to-day selecting operators and awarding authorisa- regulatory responsibilities without influence from in- tions for the operation of particular telecom- dustry or intervention from government authorities. munication services, for instance GMPCS, Individual Licence - an authorisation which is cellular telephone service or data service. granted to a legal entity by a national regulatory au- Member - refers to a person, belonging to a thority and which grants such entity specific rights or group of persons, to whom a mandate for de- imposes specific obligations which are an addition to ciding on the policy of a Regulatory Authority is the rights and obligations attached to the general entrusted. Where the regulatory institution is a authorisations or class licenses and which obligates commission, such persons are called Commis- the company in question to obtain an explicit decision sioners or just “members”. In other instances, from the national regulatory authority before exercis- governing bodies such as Boards or Councils ing rights deriving from such document and to com- are established in the Regulatory Authorities, municate information about the service concerned in which case the members are referred to as Infrastructure or Network - An integrated system of Board Members or Councillors, as appropriate. facilities, which comprise the facilities, used to pro- Minister or Ministry - The Minister or Ministry vide one or more ICT services. responsible for telecommunications matters Interconnection - a hardware and software linkage within the Government between public communication networks used by the Mobile Cellular Service - A communications same company or by a different company, to enable service providing voice or data to mobile users. the users of one company to communicate with other The service area is divided into cells each users of the same company or with the users of an- served by a transmitter. The cells are con- other company, or to access services provided by nected to a mobile switching exchange which another company. The services may be provided by is connected to the worldwide telephone net- the parties concerned or by other parties having ac- work. cess to the network. Interconnection is a particular Monitoring - refers to the function of compre- type of access implemented between operators of hensive and continuous review of the ade- public networks. quacy of info-communications networks, facili- Level playing field - A market condition where new ties and services and the reasonableness of market entrants and existing service providers oper- charges imposed for services. This is generally ate with equal opportunities and rights as the incum- the responsibility of a regulatory authority, but bent national operator. is often assisted by info-communications pro- Liberalisation (and Deregulation) - refers to the viders and/or user organisations. relaxation by government of formerly rigid or con- Operator - A person that operates telecom- straining degrees of economic regulation. Thereby, munications facilities. greater freedom is offered to market entry, providing Outsourcing - Awarding a contract to an ex- operators with greater flexibility to invest, alter opera- ternal organisation or person to provide a par- tions and services, and fix and negotiate tariffs. Lib- ticular service related to the exercise of regula- eralisation does not mean the absence of regulations tory functions, for example preparing licences but a new set of regulations able to bring about the and evaluating licence bids etc. intended relaxation. Price cap regulation - A method of regulating Licence - An authorisation granted by a regulatory prices whereby a “ceiling” is placed on the authority for the provision of ICT services or for the price of a service or on the prices of a basket use of the radio frequency spectrum. of services, with annual increase tied to an Licensing - An administrative procedure for selecting inflation factor and a productivity index. operators and awarding authorisations for the opera- Privatisation - The partial or full transfer of tion of particular telecommunication services. development responsibilities, facilities (includ- Member - refers to a person, belonging to a group of ing asset acquisition and control) and/or oper- persons, to whom a mandate for deciding on the pol- ating functions from SOTEs to private sector icy of a Regulatory Authority is entrusted. Where the developers, investors, operators and organisa- regulatory institution is a commission, such persons tions. Government, as owner and controller of are called Commissioners or just “members”. In other assets of the SOTE concerned, gives up some instances, governing bodies such as Boards or or all of its ownership and control, with the ex- Councils are established in the Regulatory Authori- pectation that there will be increased efficiency ties, in which case the members are referred to as and effectiveness of the privatised enterprise. Board Members or Councillors, as appropriate. These progress, in turn, are expected to con- Minister or Ministry - The Minister or Ministry re- tribute to higher national economic growth and sponsible for ICTs matters within the Government employment, and increased tax revenues. Mobile Cellular Service - A communications service Public switched telecommunications net- providing voice or data to mobile users. A transmitter work (PSTN) - A fully interconnected and inte- divides the service area into cells each served. The grated system of telecommunications consist- cells are connected to a mobile switching exchange, ing of various means of transmission and which is connected to the world wide telephone net- switching, utilised to provide basic telephone work. services to the general public. Monitoring - refers to the function of comprehensive Public telecommunications services - Tele- and continuous review of the adequacy of ICTs net- communications services provided to the gen- works, facilities and services and the reasonableness eral public or to a class of persons so as to be of charges imposed for services. This is generally the generally available. responsibility of a regulatory authority, but is often Radio frequencies or radio frequency spectrum assisted by ICTs providers and/or user organisations. - Frequencies or spectrum of naturally National numbering plan - The resource consisting propagated electromagnetic waves in the of all numbers that can be used to identify the fixed or range of 3 kilohertz to 300 gigahertz which are mobile termination points of telephone networks and utilised for transmission and reception of tele- services, to rout ecalls and to access internal re- communications signal. sources from the networks. The national numbering Radio paging - A service that provides selec- plan is a segment of the international plan (E.164). It tive calling from any telephone through a base establishes procedures and conditions for reserving station to one or a predetermined group or and allocating numbering resources radio receivers, which emit an audible, visual, Non-geographic number - a number in the national or tactile alert and sometimes then record a numbering plan which is not a geographic number. numeric, alphanumeric, or even a short verbal These are primary mobile numbers, freephone num- message. bers and premium rate numbers Rate of return regulation - Regulation of Number - a series of digits that uniquely identifies a prices that telecommunications operators public network termination point. The number con- charge, based on a fixed rate of return on the tains the necessary information for routing the call to operators’ investment. the termination point. The number may be in a na- Regulation - The process of ensuring that tional format or in an international format public utilities, such as telecommunications Number portability - the possibility, on the part of operators, operate in accordance within legal the user, to use the same subscriber number regard- rules. These rules may govern the offering of less of the operator with whom the user is sub- service by an operator and include practices, scribed, even in cases where the user changes op- classifications, and definitions. erator Regulatory Authority - An agency empow- Operator - A person that operates ICTs facilities ered to regulate and monitor the activities of and/or services of telecommunications, broadcasting, telecommunications operators or any other IT applications services and postal services. info-communications providers in the public Orbital slot - Operation area of a geo-stationary or interest. non geo-stationary satellite in space. Restructuring Outsourcing - Awarding a contract to an external The sum of all actively and consciously taken organisation or person to provide a particular service organisational changes, to transform the rela- related to the exercise of regulatory functions, for tionship within an enterprise as well as be- example preparing licences and evaluating licence tween it and its environment, in order to give it bids etc. a new focus, character, scope, goals and pur- Physical Co-Location - a facility offered by a public pose for its existence. In an economic sense, telecommunication network operator which consists restructuring means transforming the enter- of making infrastructure, including premises, available prise concerned to render it more effective, to other operators for installing and, if applicable, op- efficient and competitive in providing services, erating their equipment especially for purposes of usually by changing the way it is owned, con- interconnection trolled and/or operated. That is, bringing about Privatisation - The partial or full transfer of develop- a condition of economic viability to the enter- ment responsibilities, facilities (including asset acqui- prise. sition and control) and/or operating functions from SADC SOIEs to private sector developers, investors, opera- Southern Africa Development Community tors and organisations. Government, as owner and State Owned Telecommunications Enterprise controller of assets of the SOIE concerned, gives up (SOTE) some or all of its ownership and control, with the ex- A telecommunications service provider that is pectation that there will be increased efficiency and either a government department or a separate effectiveness of the privatised enterprise. These pro- entity in which a government owns the majority gress, in turn, are expected to contribute to higher shares. It is usually, not necessarily, the in- national economic growth and employment, and in- cumbent national telecommunications opera- creased tax revenues. tor. For example, subsidiary companies, of Public switched ICTs network (PSTN) - A fully in- national incumbent operators, fall under these terconnected and integrated system of ICTs consist- definitions. ing of various means of transmission and switching Strategic Policy Unit utilised to provide basic telephone services to the A unit or department proposed to be estab- general public. lished in the Ministry responsible for telecom- Public ICT services - ICT services provided to the munications to undertake policy analysis, de- general public or to a class of persons so as to be velopment and monitoring. generally available. Telecommunications or Info-communications Public telephone network - a telecommunication Any domestic or international transmission of network used to provide publicly accessible tele- information by wire, radio waves, optical media phone services. Between network termination points, or other electromagnetic systems, between or it permits the transmission not only of voice connec- among points of the user’s choosing. tion but also of other forms of communication such as Teleconferencing facsimile or data transmission Telephone conversation between three or Radio frequencies or radio frequency spectrum - more parties. Frequencies or spectrum of naturally propagated Transparency electromagnetic waves in the range of 3 kilohertz to Requires that a government and a regulatory 300 gigahertz, which are utilised for transmission, authority must conduct business in an open and reception of ICTs signal. manner and either be accountable ultimately to Regulation - The process of ensuring that public the public through an appropriate representa- utilities, such as ICTs operators, operate in accor- tion (e.g. Parliament) or provide information on dance within legal rules. These rules may govern the their activities together with reasons for deci- offering of service by an operator and include prac- sions to an appropriate body. tices, classifications, and definitions. Type approval Regulatory Authority - An authority empowered to An administrative procedure of technical tests regulate and monitor the activities of ICTs operators and/or vetting applied to items of telecommu- or any other ICTs providers in the public interest. nication equipment before they can be sold or Restructuring - The sum of all actively and con- interconnected with the public network. sciously taken organisational changes, to transform Universal access the relationship within an enterprise as well as be- A policy of government to make telecommuni- tween it and its environment, in order to give it a new cations services available, at affordable prices, focus, character, scope, goals and purpose for its to as many people as possible through com- existence. In an economic sense, restructuring mon points or end-user facilities such as librar- means transforming the enterprise concerned to ren- ies, schools, health-centres, community cen- der it more effective, efficient and competitive in pro- tres, public call offices and pay-phones. This viding services, usually by changing the way it is policy also applies to advanced information owned, controlled and/or operated. That is, bringing services, for instance the provision of Internet about a condition of economic viability to the enter- services and applications such as tele- prise. education, tele-medecine and electronic com- Service Provider - any natural or legal person that merce. provides telecommunication service to the public Universal service Signal carrier - Distributor of signals for radio, televi- A policy of government to make telecommuni- sion and data primarily for the purpose of broadcast- cations services, including advanced telecom- ing munications services, available throughout the Significant Market Power - a company which, either country at affordable prices so that they are on its own or in conjunction with other companies, either available or easily accessible to anyone holds a position equivalent to a dominant position: whenever they are needed, regardless of geo- that is, a company which has a significant capacity to graphical or physical locations, with due regard act in a manner independent of its competitors, its to people with special needs. customers and ultimately consumers Universal Service Agency (USA) State Owned ICT Enterprise (SOIE) - An ICT opera- An institution recommended to be established tor that is either a government department or a sepa- under either the Ministry or the Regulatory rate entity in which a government owns the majority Authority to design universal service strategies of the shares. and policies and monitor their implementation. Telecommunication- Any domestic or international Universal Service Fund transmission of information by wire, radio waves, op- A fund into which contributions from operators tical media or other electromagnetic systems, be- and/or other sources are paid for the purpose tween or among points of the user's choosing. of providing basic and advanced telecommuni- Telecommunication Equipment - equipment includ- cations services to underserved areas, com- ing hardware and software used to provide telecom- munities or individuals who cannot afford such munication services services on their own, in the pursuit of univer- Telecommunication Operator - any legal entity that sal service/access. operates a telecommunication network open to the Value-added services public, or any person that provides a telecommunica- Means (i) the manipulation of the format, con- tion service tent, code, protocol, or other aspect of informa- Telecommunication Service - the service, usually tion transmitted via telecommunications by a provided on a fee-paying basis, which consists wholly customer (ii) the provision of information to a or primarily of transmitting or routing signals over customer, including the restructuring of infor- telecommunication networks, or a combination of mation transmitted by a customer or (iii) the those functions, including transmission services over offering of stored information for interaction by networks used for broadcasting, but which excludes a customer. services consisting of providing content with the aid of telecommunication networks or services or of ex- ercising editorial responsibility with respect to such content Type approval - An administrative procedure of technical tests and/or vetting applied to items of tele- communication equipment before they can be sold or interconnected with the public network. Unbundling of the local loop - facility which also includes associated facilities, in particular co-location, provided by one public telecommunication network operator to enable another to access all elements of the first operator's local loop in order to serve its sub- scribers directly Universal access - A policy of government to make ICT services available, at affordable prices, to as many people as possible through common points or end-user facilities such as libraries, schools, health- centres, community centres, public call offices and pay-phones. This policy also applies to advanced information services, for instance the provision of Internet services and applications such as tele- education, tele-medicine and electronic commerce. Universal service - A policy of government to make ICT services, including advanced ICT services, avail- able throughout the country at affordable prices so that they are either available or easily accessible to anyone whenever they are needed, regardless of geographical or physical locations, with due regard to people with special needs. Universal Service Fund - A fund into which contribu- tions from operators and/or other sources are paid for the purpose of providing basic and advanced ICT services to underserved areas, communities or indi- viduals who cannot afford such services on their own, in the pursuit of universal service/access. Value-added services - means (i) the manipulation of the format, content, code, protocol, or other aspect of information transmitted via ICTs by a customer (ii) the provision of information to a customer, including the restructuring of information transmitted by a cus- tomer or (iii) the offering of stored information for in- teraction by a customer.