TRANSTEL Implementing the WSIS Action Plan “Surviving Regulatory Uncertainty as an Operator” Karl-Barth Xhanti Socikwa, CEO, Transtel (a Division of Transnet Limited) 25 March 2004

- 2 - TRANSTEL Presentation Outline “Surviving Regulatory Uncertainty as an Operator” 1. What is Regulatory Uncertainty? 2. What is the Objective of Regulatory Certainty? 3. How to survive Regulatory Uncertainty

- 3 - TRANSTEL What is Regulatory Uncertainty? l Certainty vs Uncertainty l Regulated vs Unregulated  An unregulated market or sector is not necessarily better than one which is  Oftentimes the “invisible hand” needs to partner with a visible one  World Bank suggests that telecommunications should be regulated to: 1.Promote universal access to basic telecommunications services 2.Develop competitive markets to encourage Efficient supply of telecommunications services Good quality of service Advanced and innovative service offerings; Efficient prices 3.Where competitive markets are absent, prevent abuses of market power

- 4 - TRANSTEL Some examples – The absence of a transparent framework, processes, structure and regulations A regime not conducive to the structuring of efficient interconnection agreements Failure to optimise use of scarce national resources, such as the radio frequency spectrum, existing infrastructure, numbers and rights of way What is Regulatory Uncertainty? (2)

- 5 - TRANSTEL What is the Objective of Regulatory Certainty? l For developing countries, principally to attract investment as part of liberalisation drive l To increase investment by existing operators l To facilitate effective policy-making l To build confidence in the sector

- 6 - TRANSTEL How to survive regulatory uncertainty l Surviving regulatory uncertainty therefore is about having an effective and sustained internal/external stakeholder management strategy: –Sound relationship with policy-makers, legislators and regulator, –building industry alliances, –making constructive input into policy-making and regulatory processes, –internal stakeholder management (shareholders, management / employees (unions), policy-makers, regulator)

TRANSTEL Thank You