1 THE ROLE OF REGULATION IN THE DEVELOPMENT AND TRANSFORMATION OF THE POSTAL AND COURIER SECTOR IN EAST AFRICA TANZANIA EXPERIENCE PRESENTER; MRS REHEMA MAKUBURI DIRECTOR POSTAL AFFIARS TANZANIA COMMUNICATIONS REGULATORY AUTHORITY CONFERENCE ON LEVARAGING ICTS IN THE TRANSFORMATION OF THE POSTAL & COURIER SECTOR IN EAST AFRICA

1. Reform of Communications Sector in Tanzania 2. TCRA Legal& Regulatory framework 3. Postal Policy & Objectives 4. Key Players of the Postal Sector 5. Regulatory Functions of the Postal sector 6. Licensed of Operators 7. Market Trend of Postal Service in Tanzania 8. Development of priority Activities. 9. Challenges 2

 The Tanzania Communications Regulatory Authority (TCRA)according to the Electronic and Postal Communications Act 2010 has been empowered to License and Regulate the Postal and electronic communications sectors in the United Republic  The Postal Market Regulation in Tanzania has been specifically design to understand the dynamics of the postal sector and other factors that need to be taken into consideration when regulating the sector. 3

HISTORICAL BACK GROUND  1993 the Govt took initiative of Unbundling of Telecommunications and postal company focusing on core businesses to facilitate growth through regulatory framework.  1994 Establishment of Regulatory body and separations of Postal, Telecommunications sectors formed the following  Tanzania Communications Commission  Tanzania Posts Corporation  Tanzania Telecommunications Company  2003 Establishment of Tanzania Communications Regulatory Authority (Merging of communications and Broadcasting sectors) 4

TCRA mandates emanates from  Tanzania Communications Regulatory Authority Act No.12 of 2003  Electronic and Postal Communications Act (EPOCA 2010) Regulations  The Tanzania Postal Regulations 2011  Tanzania Communications (Consumer Protection) Regulations 2011  The Tanzania Communications (Tariff) Regulations 2011  The Tanzania Communications (Quality of Service) Regulations

 National Postal Policy Objectives (2003)  Developing and Transforming the Postal Sector to serve the national market and beyond ie; within East Africa and other international markets.  Involve private sector participation; the Courier services in the provision of postal services; stimulate competition and growth of the market for provision of quality postal services.  Use of ICTs to modernize the postal sector services to satisfy diversified customer demands 6

 The Government- Define Reforms, formulate strategic policy guidelines for development of Postal sector.  The Regulator-TCRA implement Policy objectives (Establish & enforce rules for competitive market) monitor development of the Postal sector.  The Operator – Develop infrastructure, Apply ICTs provide efficient and affordable Postal services. 7

 Promote competition among postal service providers  Establish standards and Monitor compliance and codes of conduct in respect of postal services.  Monitor performance and enforcing license conditions of Postal service licensees in the country  Administer implementation of National Postal Policy.  Identify and encourage the use of appropriate technologies, and methods of widening the access to postal services in rural and disadvantaged areas;  advise on appropriate rates and charges of basic postal service;  Guaranteeing maintenance of the universal service obligation and ensuring its funding for the provision of universal Postal service 8

1. Public Postal Operator;  Tanzania Posts Corp.  Licensed for 25 years Mandated for the provision of universal Postal Services; 399 Post offices (  Basic tariff regulated, less than 500gm letter mail, 30kg parcels. mandated to Issue postage stamps.  PPO is Licensed for provision of Financial services in colaboration with Cental bank (BOT) 9

2. Courier Operators;  Intercity Courier Services  Intercity Transport Courier Services  Intracity Courier Services  Domestic Courier Services  East Africa Courier Services-3  International Courier Services-4 10

General License Conditions: Definition, Scope, Duration and Renewal of License, Ownership & Corporate obligation, License Fees, Compliance with the Law and Regulatory requirements, Human Resource Development, compensation to customers. Specific Conditions on Postal Issues: Universal postal services, Confidentiality and integrity of Postal Items, Consumer Protection Undelivered Postal Articles; Security & safety. Quality of Service. 11

 Enforcement exercise conducted periodically to operators insuring license conditions are observed.  Quality of service monitored against standards set e.g. (J+5=85%) plus Universal postal service provision 12

13 Regulated Services Universal services Electronic services Courier services

MAILS AND PARCELS MARKET SHARE OF COURIER SERVICE PROVIDERS (CPS) MAILS AND PARCEL MARKET SHARES FOR PPO AND CPS 14 PARCELS MAILS PARCELS TCRA POSTAL MARKET STUDY EBL CONSULTANT 2011 MARKET SHARE OF PPO & CPS OF REVENUE IN TZSHS CPS INVOLVED IN HIGH VALUE ITEMS

15 Fig1. Domestic Posted Items 2000‐2011

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18 Scandinavia buses at the Kampala Terminal in 2004 before the company collapsed. Source: Photo The East African Newspapers Stiff competition among EA Courier service providers in the regional Scandinavia and Akamba, - collapsed over the past decade.

19  Adequate standards and regulations to enhance quality of service (QoS); improved access and performance (EPOCA &UPU standards ) Quality of mail service Delivery Performance tests periodically for PPO national and international mail fixed(PPO) and Mobile Automatic Mail Quality Measurement system(Regulator)

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 Reports are analyzed against the delivery standards.  Regulatory measures taken to the Operator, In case of variations with the delivery standards  The Authority receives reports from International Postal cooperation (IPC) on weekly basis. (Currently there are technical challenges between IPC & Lyngsoe; alternative measures are being sought) 22

 Encourage the development and ICT products, and Financial services  Developing the National addressing and postcode system.The Regulator put in place the infrustructure 23

 the Internet and the digital technology are fundamentally changing the worlds of communications, transportation, and commerce  New technologies have been “disruptive innovations” for traditional postal services resulting in an overall decline in the volumes of mail.  The Licensing framework by the Regulator encouraged PPO to offer a variety of solutions through ICT. Application Service License issued by Regulator 24

Guarantee the concept of Universal Service Obligation.  USO Act in place since Funding mechanism in operational. ( Contributors; Regulatory Authority & communications operators) PPO & Courier operators are yet to contribute to the fund.  PPO mandate on the provision of UPS & its Financial strength.  Timely Regulatory intervention -Entry of new players national & international require timely intervention to protect the interests of operators and consumers. 25

Adoption of New technologies & Infrastructure improvement;  Counter Services Automation and other electronic services, IPS, IFS currently avilable in the urban and disrict areas - The need to extend new infrastructure in the rural and remote areas to allow connectivity to rural post offices.(Fibre Optic cables and electricity ) New Customer Expectations,  Demand for value for money  Changing customer needs/requirements 26

27 Thank you for your attention !