TRC - JORDAN Future Challenges for the TRC Muna Nijem Chairman of the Board/CEO Telecommunications Regulatory Commission (TRC) 1st Regulatory Meeting for the ITU Arab Region, Algeria, April 2003

TRC - JORDAN Slide 2/15 Telecommunications Licensing Framework The TRC has authority to prepare and adopt the terms and conditions and criteria for the granting of licenses: 1.to build and manage telecommunications networks and/or offer services to users in Jordan 2.to authorize the use of radio spectrum

TRC - JORDAN Slide 3/15 Radio Spectrum Licensing The Telecommunications law requires that all users of radio spectrum receive a license from the TRC, excluding Jordanian Armed Forces and Security Agencies. Requirement includes broadcasters, though the TRC does not otherwise regulate broadcasting License deals with the use of radio spectrum only. Additional license may be required to provide a public telecommunications service.

TRC - JORDAN Slide 4/15 Telecommunications Service Licensing Individual Licenses –Fixed –Mobile –Trunking –Paging –Payphone Class Licenses –Data communications –Prepaid calling –GMPCS Sys. Operator –GMPCS Service Provider –Tracking (AVL)

TRC - JORDAN Slide 5/15 The experience to date: Existing regime has been effective – ensures respective roles are well defined Process of licensing new services can be improved Current process requires detailed negotiation, raises issues regarding procedures

TRC - JORDAN Slide 6/15 A new licensing process Considering improvements to the licensing process Focus on transparency, public accountability Current thoughts: issuance of draft license conditions prior to award of license for comment by public All input made available to the public Clear and concise procedures, including for appeal and rehearing

TRC - JORDAN Slide 7/15 The goal: A new regulatory regime Longer term goal: move all regulatory requirements into generally-applicable regulations Licenses would be short, contain only conditions specific to licensee Would improve transparency, simplify licensing process

TRC - JORDAN Slide 8/15 Universal Service in Jordan Market Structure: Number of households: 893,000 Population: 5.1 million Current fixed network coverage: ~ 650,000 Current mobile coverage: 865,000 (2Q ’02) Payphones: 8500 (’01)

TRC - JORDAN Slide 9/15 Current Universal Service Regime Jordan Telecom’s license imposes certain universal service requirements: –JT must provide basic telephone service to any person wishing to obtain it, willing to pay the published prices and abide by its generally-applicable terms and conditions –JT must provide service to any household in a municipality with over 300 residents, and to residents outside such areas, except that JT may recover its costs of connection over and above a certain threshold.

TRC - JORDAN Slide 10/15 Universal Service Obligation Following liberalization of the market, the TRC is required to create a competitively neutral Universal Service framework Mechanism to be developed to allow other competing operators to share the cost of providing universal services upon the licensing of such operators TRC may require JT to allow other operators to meet Universal Service Obligation through transfer of subsidies Universal Service Obligations must be administered in a transparent, non-discriminatory and competitively neutral manner

TRC - JORDAN Slide 11/15 Postal Reform The TRC is currently working to implement the provisions of the postal reform law of 2002: –Developing the criteria for the public postal operator to exercise its exclusive right to provide certain services –Developing criteria to issue licenses to private postal operators –Monitor implementation by the public operator of conditions contained in its performance contract –Monitor implementation of the Postal Law; take appropriate measures in the event of breach

TRC - JORDAN Slide 12/15 Procedural Reform Integrity of and confidence in TRC decision making are keys to the legitimacy of TRC efforts TRC is developing internal and external tools to ensure transparency and independence of decision making

TRC - JORDAN Slide 13/15 Procedural Reform: Key Aspects Clear, predictable procedures – published procedures to ensure decision making process is understood by all Opportunity for input– allowing interested parties to provide independent perspective to proposed decisions Transparency – keeping the public and interested parties abreast of all important issues affecting the decision

TRC - JORDAN Slide 14/15 Conclusion: Much progress, much more work to do

TRC - JORDAN Slide 15/15 TRC P.O. Box Amman Jordan Tel: +(962 6) Fax: +(962 6) Website: