ITU - Arab Regional Office Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office 1 st REGULATORY MEETING FOR THE ARAB REGION Algiers (Algeria), 19 – 21 April 2003

ITU - Arab Regional Office Page - 2 / 28 Topics Telecom Sector Reform Trends & Regional Benchmarking Arab Reform Scoreboard Regional Regulatory Associations ITU/BDT RRU Conclusion

ITU - Arab Regional Office Page - 3 / 28 Telecom Sector Reform Getting the recipe right Three essential ingredients: Competition Private sector participation Effective regulation

ITU - Arab Regional Office Page - 4 / 28 Telecom Reform, WHY? Liberalized Markets grow faster, innovate, and serve customers better and cheaper Attract private capital and foreign investment Mobile and Internet services fast Growth -- Competition is the stimulus Investor confidence linked to an effective, fair & transparent regulatory framework Globalization, Growth of international trade in ICT services, and WTO Agreements

ITU - Arab Regional Office Page - 5 / 28 More telecom Regulators Source: ITU World Telecommunication Regulatory Database Number of Countries with separate telecom regulators

ITU - Arab Regional Office Page - 6 / 28 Regulators by Region - How do we compare? Source: ITU World Telecommunication Regulatory Database

ITU - Arab Regional Office Page - 7 / 28 Competition – the Global Scene % of countries Percentage of Countries with Competition for Selected Services, 2001 Source: ITU World Telecommunication Regulatory Database

ITU - Arab Regional Office Page - 8 / 28 Competition - Basic Services Basic Services by Region, 2002 Source: ITU World Telecom. Regulatory Database % of countries

ITU - Arab Regional Office Page - 9 / 28 Competition - Basic Services Basic Services by Type, World 2002 Source: ITU World Telecommunication Regulatory Database % of countries

ITU - Arab Regional Office Page - 10 / 28 Competition in Mobile: Arab States lag behind Source: ITU World Telecommunication Regulatory Database % of countries

ITU - Arab Regional Office Page - 11 / 28 Competition in ISP Source: ITU World Telecommunication Regulatory Database Internet services, 2002 % of Countries

ITU - Arab Regional Office Page - 12 / 28 Arab Reform Scoreboard 1/3 Separate Regulator Corpo- ratized Privatized duopoly or Competition Algeria2001 No Plans mobile Bahrain2002Yes Partial 1981 ComorosNo1989Plan 2003? DjiboutiNo1957Plan mobile Egypt1998 Plan m, Paging, GMPCS, ISP IraqNo No Plans Jordan1995Yes Partial 2000 data, mobile, ISP, Paging, GMPCS KuwaitNo Plan mobile, Data, VSAT, ISP

ITU - Arab Regional Office Page - 13 / 28 Arab Reform Scoreboard 2/3 Separate Regulator Corpo- ritized Privatized duopoly or Competition Lebanon No Plan Data, mobile, ISP Libya No No plans Mauritania 1999Yes 54% Maroc Tel all ex. Leased lines Morocco % Vivendi 2000 data, mobile, Paging, GMPCS, ISP Oman 2002 No No plans Palestine No 1996 No plansMost Services Qatar NoYes Partial 1998 Saudi Ara Partial 2003ISP

ITU - Arab Regional Office Page - 14 / 28 Arab Reform Scoreboard 3/3 Separate Regltr. Corpo- ratized Privatized duopoly or Competition Somalia NoYesFully All Services Sudan Partial 1994 all ex. Data & mobile Syria NoYesNo Plans mobile Tunisia Plan 2003? mobile, Paging UAE NoYesPartial GMPCS Yemen No1982No Plans Mobile, GMPCS, isp Total full privat. 8 partial6 plan to priv. %46%77% 5% 36%27%

ITU - Arab Regional Office Page - 15 / 28 Regional Regulatory Associations Worldwide AFRICA:1- ARICEA 2- TRASA 3- WATRA ASIA-PACIFIC:ATRC AMERICAS:1- OCUR 2- REGULATEL EUROPE: - ERG

ITU - Arab Regional Office Page - 16 / 28 TRASA ’ s Vision: « To be a model regulatory association, through the design and implementation of harmonised regulations and policies, to achieve universal service and sustainable communications development in an investor friendly environment »

ITU - Arab Regional Office Page - 17 / 28 ARICEA ’ s Objectives: "(a) Exchange ideas, views and experiences among members on all aspects relating to facilitating and regulating the development and application of ICTs; (b) Promote the sustainable development and application of efficient, adequate and cost-effective ICT networks and services in the sub-region; (c) Coordinate cross-border regulatory issues on ICTs in the sub-region; (d) Contribute to the achievement of sub-regional and regional integration; (e) Promote the maximisation of the utilisation of scarce resources in the ICTs sector.”

ITU - Arab Regional Office Page - 18 / 28 ITU BDT Regulatory Reform Unit (RRU) Publications & case studies on key issues Regulatory Models International & Regional Regulatory Forums ITU World Telecom. Regulatory Database Online library and resource center The Global Regulators’ Exchange: G-REX Capacity building for regulators through Centres of Excellence

ITU - Arab Regional Office Page - 19 / 28 Reports: Trends in Telecom Reform 2000/2001 Interconnection Regulation Regulation 1998 General Trends 1999 Convergence & Regulation 2002Effective Regulation Regulation

ITU - Arab Regional Office Page - 20 / 28 Trends in Telecom. Reform 2003: Promoting Universal access to ICTs: Practical tools for regulators Universal Access/Service Overview Role of Sector Reform Procedures to establish a Universal Service Fund, Role of Minimum Subsidy Auction, Consumer tariffs and Interconnection Rate Public Access, Telecentres Entrepreneurial Solutions & Role of Regulator

ITU - Arab Regional Office Page - 21 / 28 Narrowing the Digital Divide Through: Regulatory Reform Regulatory Reform Incentive Regulation Incentive Regulation New Technology New Technology Public Access to ICTs Public Access to ICTs

ITU - Arab Regional Office Page - 22 / 28 The Global Regulators ’ Exchange G-REX to exchange information and experiences through Conferences and the Regulators’ Hotline Online forum for Regulators & Policy makers

ITU - Arab Regional Office Page - 23 / 28 G-REX CONFERENCES AND SPECIAL STUDY G-REX Conferences Virtual WiFi Conference Interconnection Dispute Settlement Conf. Licensing Conf. Special Study Dispute Settlement And ADR

ITU - Arab Regional Office Page - 24 / 28 Global Symposium for Regulators Geneva, 8-9 Dec Practical tools regulators can use to increase universal access to ICTs: Day 1 : Private Sector/Regulator Sessions Day 2 : Regulators Only Sessions Seminars/2003/GSR/index.html

ITU - Arab Regional Office Page - 25 / 28 RRU Web Site

ITU - Arab Regional Office Page - 26 / 28 Challenges for Arab Regulators (1)  True Independence (vs. conflict of Responsibilities)  Transparency and Fairness (Real & Perceived)  Licensing and Competition Policy  Dynamic Management and Licensing of Spectrum  Universal Service and Universal Access  Price Regulation  Consumer Protection  Adequate Financing

ITU - Arab Regional Office Page - 27 / 28  Interconnection Obligations  Local Loop Unbundling  3G Mobile Spectrum Allocation and Licensing  Broadband Services  Broadcasting Services  Internet and ICT: Internet Governance and Regulation Cyber Laws & e-Applications Security, Digital Signature and PKI Multilingual Domain Names and ENUM Challenges for Arab Regulators (2)

ITU - Arab Regional Office Page - 28 / 28 Conclusion  Telecom Sector Reform – 3 basic ingredients : Competition Private sector participation Independent regulation  Arab World lagging in Reform, esp. in competition  Reform Programs in various parts of the Arab World : Recent Privatization Moves: Jordan, Saudi Arabia Privatization without competition: Qatar, UAE Competition without Regulation: Somalia Notable Regulators: e.g. Jordan, Bahrain.