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

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

3. People On-line World Total 605.60 million Africa 6.31 million
Asia/Pacific            million
Europe            million
Middle East             5.12 million
Canada & USA      million
Latin America     million

4. Fixed line and Internet penetration
Source: Analysys

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

6. Internet Users in MENA
Source: Pyramid Research

7. 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

8. 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

9. 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,

10. 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

11. 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

12. 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