Digital divide : regulatory aspects Rym Belhaj ISET’Com CERT – ITU Workshop June 17-19, 2003

outline Telecom and Internet landscape in the MENA region Reforms in MENA Challenges for an effective regulation

People On-line World Total 605.60 million Africa 6.31 million Asia/Pacific            187.24 million Europe            190.91 million Middle East             5.12 million Canada & USA      182.67 million Latin America     33.35 million

Fixed line and Internet penetration Source: Analysys

Internet users and English-Speaking computer Users in the MENA countries Source: Pyramid Research

Internet Users in MENA Source: Pyramid Research

Leased Line Market is hold back Number of two-way national and international leased lines for the exclusive use of one subscriber Percentage of countries with competition in the leased line market, by region, 2000 Source: Analysys

Reforms in MENA Countries (1) MENA countries have made good progress : Restructuring the incumbent public operator Introduction of competition in some market segment (Mainly Mobile) Establishing regulatory authorities Challenge: Have a strong, credible and active telecom regulator

Reforms in MENA Countries (2) Algeria Egypt Jordan Morocco UAE Independent regulator (date) Yes (2000) Yes (1998) Yes (2001) Yes (1997) No Liberalization status Fixed telephony Leased lines Data (1) Yes ISP (2) Fixed satellite services VSAT Number of mobile operators 2 2(3) 1 Number of ISPs 4 38 8 10–20 Provision of data services on top of infrastructure (mainly leased lines) supplied by incumbent operators, e.g. IP VPN ISPs in national markets. Note that the regulatory treatment for international service provisioning varies by country Mobile operators have the right to operate their own international gateway Source: Analysys,

Key Challenge Facing MENA Regulators Clear mandate and legal foundation Financial autonomy and effective use of the available resources Transparent regulatory processes Build HR competencies to properly regulate

Tools for an active Regulation Industry structure/ Licensing Networks and service opened for competition Licensing procedures and conditions Numpber of Licensees Pricing Price Caps on price adjustment Tariff rebalancing Interconnection Rights and obligation to interconnect Process and power to arbitrate disputes:intervene Collocation and infrastructure sharing

Tools for an active Regulation (Followed) Customer Access Numbering Plan Number portability Universal Access Definition and scope Cost shared across industry and operators obligations Funding mechanism Performance Levels Service quality targets Network / service / penetration targets