ICT Policies and ICT Policies and Regulations in Africa: Regulations in Africa:

Implications to NRENsImplications to NRENs

Lishan AdamLishan Adam

OutlineOutline

Progress in regulations and ICT policiesProgress in regulations and ICT policiesQualitative view of ICT policies and Qualitative view of ICT policies and

regulationsregulationsRegional dimensions of regulationRegional dimensions of regulationChallenges and opportunitiesChallenges and opportunitiesEmerging policy and regulatory issues Emerging policy and regulatory issues

within the context of NRENwithin the context of NREN ImplicationsImplications

ProgressProgress Reform in the telecom sector Reform in the telecom sector

in all countries and improved in all countries and improved private investment private investment Tele-density from 1% in 1990 to Tele-density from 1% in 1990 to

above 10% in 2005 (including above 10% in 2005 (including mobile)mobile)

Mobile footprint of about 30%Mobile footprint of about 30% Internet usage, slow but Internet usage, slow but

improved (about 2-3%)improved (about 2-3%)

51

22

Mobile Mainline

Subscribers in Africa in 2003 (millions)

RECs (ECOWAS, SADC, COMESA), NEPAD, ADB RECs (ECOWAS, SADC, COMESA), NEPAD, ADB have made in regional networks and broadband have made in regional networks and broadband top prioritytop priorityIndependent IXPs in about nine countriesIndependent IXPs in about nine countriesMarket entry by alternative communication Market entry by alternative communication service providers (Gas, electricity, railway)service providers (Gas, electricity, railway)

3

17

3742

3036

4148

05

101520253035404550

Source: World Bank

Progress in Sector Reform

Less than 5% have moved towards full competition in basic servicesOver 35 countries have yet to introduce competition in fixed segment

Reform agenda incompleteReform agenda incomplete

Public and private sector Public and private sector investment is required for rapid investment is required for rapid diffusion of NRENsdiffusion of NRENs

Good regulation is a must for Good regulation is a must for lowering cost and bring about lowering cost and bring about rapid investment rapid investment

Qualitative view – regulatory Qualitative view – regulatory situation in Africasituation in Africa

Using a key benchmarks likeUsing a key benchmarks like legal status – laws creating the regulatory bodylegal status – laws creating the regulatory body Independence - budget, decision, legitimacyIndependence - budget, decision, legitimacy Competencies – tariff setting, licensing, resource allocation, dispute Competencies – tariff setting, licensing, resource allocation, dispute

settlement, interconnection, quality of service, consumer protection, settlement, interconnection, quality of service, consumer protection, facilitating competition and market entryfacilitating competition and market entry

Internal organization –staffing, management and relationship with the boardInternal organization –staffing, management and relationship with the board Regulatory governance – participation of CSO, publicRegulatory governance – participation of CSO, public Enforcement – enforcement power, interaction with judiciary, arbitration Enforcement – enforcement power, interaction with judiciary, arbitration

bodiesbodies Different pace of reform due to institutional and political factorsDifferent pace of reform due to institutional and political factors Three phases in regulationThree phases in regulation

Phase I – regulatory bodies are non-existent or ineffectivePhase I – regulatory bodies are non-existent or ineffective Phase II – regulatory bodies exist, do assume roles, but weakPhase II – regulatory bodies exist, do assume roles, but weak Phase III – regulatory bodies assume full rolesPhase III – regulatory bodies assume full roles

Congo DRC Angola

MozambiqueNigeriaZimbabweBotswanaGabon

MalawiBurundi

Sierra Leone Liberia

Mali

Congo

TunisiaAlgeria

Togo

CameroonBurkina FasoGambia

BeninChadKenyaZambia

EritreaSwaziland

Namibia EthiopiaRwanda Comoros

Cote d’ivoire

SenegalSouth AfricaNigerMauritania

CAR

Sao TomeEquatorial Guinea

Sudan

Cape Verde

Guinea Bissau

MauritiusLesotho

SomaliaGuinea

State ownedIncumbent operators Monopoly of

International Segment

No regulatoryAuthority

MobileMonopoly

Others

TanzaniaMoroccoUgandaEgypt

Phase IPhase I

Regulatory agencies are non-established (sector Regulatory agencies are non-established (sector ministry in charge) or not functional – e.g Sierra ministry in charge) or not functional – e.g Sierra Leone, Liberia, Eritrea,SwazilandLeone, Liberia, Eritrea,Swaziland

One to five staff membersOne to five staff members Watching the behaviour of monopoly operator Watching the behaviour of monopoly operator Non-existent enforcement and dispute resolutionNon-existent enforcement and dispute resolution No public participationNo public participation Limited competencies of staff and inefficient Limited competencies of staff and inefficient

institutioninstitution Unable to determine market behaviourUnable to determine market behaviour

Phase IIPhase II

Countries have created sector regulators and Countries have created sector regulators and licensed sector participants (Uganda, Kenya, licensed sector participants (Uganda, Kenya, South Africa, etc.)South Africa, etc.)

Laws are in placeLaws are in place Some independence in allocation of resources, Some independence in allocation of resources,

government sets fees and approve allocationgovernment sets fees and approve allocation Some power in dispute resolution and Some power in dispute resolution and

enforcement via fineenforcement via fine A few core competencies A few core competencies Decisions with approval of ministerDecisions with approval of minister Assume certain roles in market developmentAssume certain roles in market development

Phase IIIPhase III Barely a few regulatory institutions…Barely a few regulatory institutions…

Meet the necessary independence and self governance Meet the necessary independence and self governance criteriacriteria

Promote open access - (technology neutral, competition in Promote open access - (technology neutral, competition in all layers, opportunities for small players to connect) all layers, opportunities for small players to connect)

All the necessary competencies (e.g All the necessary competencies (e.g tariff setting, licensing, tariff setting, licensing, resource allocation, dispute settlement, interconnection, quality of resource allocation, dispute settlement, interconnection, quality of service, consumer protection, facilitating competition and market entry)service, consumer protection, facilitating competition and market entry)

assumed an active role in enforcement, promoting assumed an active role in enforcement, promoting competition, open access in all layers (local, national competition, open access in all layers (local, national regional, service, transmission, physical)and general market regional, service, transmission, physical)and general market developmentdevelopment

Clear from entrenched personal and political interest (focus Clear from entrenched personal and political interest (focus on long term benefits than short term benefits)on long term benefits than short term benefits)

Flexible and technology neutral regulationFlexible and technology neutral regulation Sophisticated information systems (transparency)Sophisticated information systems (transparency)

Information Management as a Information Management as a key indicator on progresskey indicator on progress

NRA web sites survey by Amy Mahan 2004

NRAs with site under

construction11%

NRAs without site11%

No independent regulator

34%

NRA with partially

functioning site44%

Organization do not pay attention to the appeals their content, content management is not a core business http://www.ncc.org.na/

Information management is often event driven - http://www.incm.gov.mz/

•New tools are not incorporated- Web sites remain static - http://www.potraz.gov.zw/,

Some feel that basic information could be sufficient - http://www.virtualseychelles.sc/gover/mitc_telecom.htm

•Outsourcing core function as a result no up to date sites

•Outdated web sites

Burundi Cameroon, Niger, Guinea-Bissau DRC Ethiopia Comoros Benin Chad TogoCape Verde Gabon

Gambia Swaziland, Sao Tome & Principe Equatorial GuineasEritrea, Sierra Leone Liberia

Central African Republic

Mauritius, Morocco, Tanzania, Botswana, South Africa Uganda KenyaNigeria Senegal Cote d’Ivoire Ghana Mozambique Mauritania

Zambia ZimbabweLesotho Namibia Seychelles Rwanda Malawi Cameroon

Mali Sudan Congo Togo Burkina Faso

PHASE I

PHASE II

PHASE III

Consequences of weakness in Consequences of weakness in regulationregulation

Slowed transaction and investment due to Slowed transaction and investment due to negative sentiments negative sentiments

Excessive cost of bandwidthExcessive cost of bandwidthBackbone networks over stretchedBackbone networks over stretchedNetwork concentration in urban areaNetwork concentration in urban areaLimited diffusion of wireless and innovative Limited diffusion of wireless and innovative

technologiestechnologies

ChallengesChallenges

Different pace of reform due to these institutional and Different pace of reform due to these institutional and political factorspolitical factors

Regulation were not up to date to reflect technological Regulation were not up to date to reflect technological changes, rapidly changing circumstances – changes, rapidly changing circumstances – outdated “Telecommunication ACT” over 7 years makes it outdated “Telecommunication ACT” over 7 years makes it

difficult to regulatedifficult to regulate Information asymmetry and low level of competence Information asymmetry and low level of competence

to regulate/not regulate the dynamic sectorto regulate/not regulate the dynamic sector Competing institutions (IT, regulator, spectrum Competing institutions (IT, regulator, spectrum

management, broadcast, consumer affairs, fair trade, management, broadcast, consumer affairs, fair trade, parent ministry)parent ministry)

New elements of monopoly and resistance (mobile New elements of monopoly and resistance (mobile services)services)

In imperfect governance situation regulation more In imperfect governance situation regulation more about mediating vested interest and political about mediating vested interest and political

networksnetworks Natural tendencies to defend status quoNatural tendencies to defend status quo Governments trying to (open the sector and Governments trying to (open the sector and

protect the incumbent)protect the incumbent) Influence of political and individual agendasInfluence of political and individual agendas Personality of regulators, background, relationship Personality of regulators, background, relationship

to the incumbent and senior policy makersto the incumbent and senior policy makers Role of influential sector participants (Board, Role of influential sector participants (Board,

director of operators)director of operators) Ignorance and fear of consequences of changes Ignorance and fear of consequences of changes

or introducing competitionor introducing competition

National ICT PoliciesNational ICT Policies Many countries developed e-strategies between 1999-2003 at the height of Many countries developed e-strategies between 1999-2003 at the height of

enthusiasm about ICTsenthusiasm about ICTs Were instrumental in raising awareness, Were instrumental in raising awareness, mobilization of resourcemobilization of resource, conceptual , conceptual

shift to ICT4D and digital divide now to wider information society issuesshift to ICT4D and digital divide now to wider information society issues

0%

20%

40%

60%

80%

100%

1999

2000

2002

2004

Year

The number of countries with ICT policies and without

No policy

Underway

Policy

Detached from core reform agendaComprehensive vs focussedICT experts vs development expertsDistribution impact on sectors vs ICT investmentTechnology push vs realityInternal vs externalCommitment vs rhetoricShopping list vs realistic implement able projectsConsensus and participatory vs decreeOrganic vs driven by institutionsNew institutions vs competing implementing agenciesPRSP/MDG focus vs host of lists under the sun

Decisive changes to policies and implementation of e-strategies has been difficult

Regional DimensionsRegional Dimensions

Smaller traffic, large number of Smaller traffic, large number of countriescountries

Regional strategiesRegional strategies Policy harmonizationPolicy harmonization Cross-border connectivityCross-border connectivity Rationalization of initiativesRationalization of initiatives Investment opportunities (PPP) – mostly Investment opportunities (PPP) – mostly

studies – DFID, World Bank, e-Africa studies – DFID, World Bank, e-Africa commissioncommission

Enabling environment – Enabling environment – Interconnection (world Bank)Interconnection (world Bank)

ARICEA

EARPTO

e-Africa Commission

Opportunities for NRENOpportunities for NREN Phasing out of exclusivity period (Senegal, Uganda, South Phasing out of exclusivity period (Senegal, Uganda, South

Africa, Kenya, Mali, Ghana) Africa, Kenya, Mali, Ghana) Introduction of converged licensing regime (post-exclusivity) – Introduction of converged licensing regime (post-exclusivity) –

Kenya, Uganda, Mauritius, South Africa Senegal, Tanzania, Kenya, Uganda, Mauritius, South Africa Senegal, Tanzania, these announced broad competition these announced broad competition

IP driven market dynamicsIP driven market dynamics Depriving incumbents of lucrative revenueDepriving incumbents of lucrative revenue low volume/high margin low volume/high margin High volume low margin High volume low margin

Digital divide/ information society initiativesDigital divide/ information society initiatives WSIS (ITU, ADB)WSIS (ITU, ADB) Commission for AfricaCommission for Africa NEPAD/AUNEPAD/AU RECs (ECOWAS, ECAAS, COMESA, SADC, EAC, IOC, RECs (ECOWAS, ECAAS, COMESA, SADC, EAC, IOC, National (e-strategies, ICT4D policies)National (e-strategies, ICT4D policies)

Fastest growing communications economy Fastest growing communications economy

Implications to NRENImplications to NREN Regulations adapted to NREN take time (Regulations adapted to NREN take time (patiencepatience)) No homogeneous model or logic in regulation – No homogeneous model or logic in regulation –

respond to specific infrastructure, demographic and respond to specific infrastructure, demographic and organizational capacities organizational capacities (institutional, national (institutional, national NREN,NREN, sub-regional, continental) sub-regional, continental)

Stronger knowledge networks between regulators, Stronger knowledge networks between regulators, policy makers, members of NREN for joint policy makers, members of NREN for joint innovations ( innovations ( focus on local innovationsfocus on local innovations))

NREN members could capitalize on their position in NREN members could capitalize on their position in the society (VCs, eminent academics) to negotiate the society (VCs, eminent academics) to negotiate changes in policies (changes in policies (human relationshuman relations))

Local policies research and advocacy informed by Local policies research and advocacy informed by global best practices global best practices (bring in global best practice(bring in global best practice))

Implications to NRENImplications to NREN Involvement of middle level managers Involvement of middle level managers

(technocrats drafting policies and regulations)(technocrats drafting policies and regulations) NREN promotion within the contexts ofNREN promotion within the contexts of

E-strategies e-governanceE-strategies e-governance Development, MDGs and government e-education, Development, MDGs and government e-education,

national S&T policynational S&T policy Regional agenda Regional agenda (Strategic policy advocacy speak (Strategic policy advocacy speak

the language)the language) Policy and advocacy strategy taking incentives, Policy and advocacy strategy taking incentives,

vested interests, linguistic, cultural and regional vested interests, linguistic, cultural and regional factors into account factors into account (association with local (association with local actors)actors)

Smaller better – EARPTO Smaller better – EARPTO

Implications to NRENImplications to NREN Bilateral, trilateral or … quadrilateral regional aggregations Bilateral, trilateral or … quadrilateral regional aggregations

could be used as building block for regional regulations – could be used as building block for regional regulations – federated R&E networks useful than regionalfederated R&E networks useful than regional

Organic development start from where it works (SARUA)Organic development start from where it works (SARUA) Regional harmonization through regional regulatory associations Regional harmonization through regional regulatory associations

((engage NRAs)engage NRAs) Build interface with regulatory associations (participation in AGM, OGM)Build interface with regulatory associations (participation in AGM, OGM) Awareness – tutorialsAwareness – tutorials Model NREN and regulatory implications cookbook(small players, e-rates, Dark fiber, public Model NREN and regulatory implications cookbook(small players, e-rates, Dark fiber, public

good)good) Use of regional organizations (AAU, East African Universities Association, Association Use of regional organizations (AAU, East African Universities Association, Association

of Francophone universities.) of Francophone universities.) Rationalization of regional NREN projects and initiatives (avoid Rationalization of regional NREN projects and initiatives (avoid

confusions, confusions, policy makers do hate confusion and unnecessary details)policy makers do hate confusion and unnecessary details) It is about policy…and commitment of governmentsIt is about policy…and commitment of governments

AU, NEPAD, RECs (ECOWAS, SADC, COMESA) agendaAU, NEPAD, RECs (ECOWAS, SADC, COMESA) agenda Policy advocacy requires same level of commitment – “It is political, Policy advocacy requires same level of commitment – “It is political,

institutional than technical”institutional than technical”

Thank youThank you