1. BENCHMARK ON POLICIES AND FUNDING OF UNIVERSAL SERVICES
Africa / Europe
ITU
Amman 02-05

2. PRESENTATION OF CLARITY
A consulting company specialized in strategy and organisation in the telecommunication field.
A group of partner’s strong of more than 20 years of operational experience and practice at management level within incumbents Telco, alternative carriers and Regulatory Authorities.
A specific expertise of
International business and interconnections,
All kind of regulatory aspects
People and change management within companies
A privileged and independent partner

3. SUMMARY Universal service has no universal applications
Universal service policies Africa / Europe
Funding benchmark
Regulatory benchmark
Conclusion

4. UNIVERSAL DEFINITION, REGIONAL TRANSLATION
Teledensity or
Accessibility
Same price for all or
Affordability
DEFINITION
« to promote the availability of quality services at just, reasonable and affordable rates to all customers including those in low income, rural, insular and high cost areas  » Telecom Act 1996
Quality of service :
Set up delays
Fixing problems
ASR, PDD, Audio
Type of services :
Telephony
Internet

5. TELEDENSITY : FIGURES claire.audin@clarity.fr
Fix line per 100 inhabitants Mobile subscriber per 100 inhabitants 15 10 5 40 30 20 10
Egypt
Jordan Tunisia
South Africa
Algeria
Morocco
Senegal
Ivory Coast
Ghana Cameroon
South Africa
Morocco
Jordan
Tunisia
Ivory Coast
Senegal Egypt
Cameroon
Ghana Algeria
0 1,000 2,000 3,000 4, ,000 2,000 3, ,000
GDP per inhabitant (USD) GDP per inhabitant (USD)
source : pyramid research 2004
France : 67/ France : 85/100

6. TELEDENSITY EVOLUTION (source WEFA, McKinsey)

7. AFFORDABILITY : COMPARISON ON PUBLIC TARIFFS
In euros
For 1 min PH
from fix line
France
Senegal
Tunisia
Jordan
Burkina
Local tariff (PH)
0,033
0,047
0,0062
0,014
0,076
National tariff (PH)
0,091
0,13
0,075
0,027
0,1524
Average international tariff (PH)
0,20
0,32
0,40
0,34
0,5335
Monthly rate 13
3,68
12,4
4,23
3,81
Installation -
54,88
37,2
35,88
45,73
PIB / inhabitant
20 400
1 200
2 050
1 300
900
Cost of an average communication basket*
39,82 33
17,93
17,64
60,89
Basket / PIB (%)
2,3 %
33 %
4,1 %
13 %
81,2 %
* Average basket = 5H/month local + 2H/month national + 30 min/month Intern

8. PRIORITIES SCALE + - EUROPE ADSL reach (high speed internet)
Usage for the few who cannot afford to pay at full rate
Covering needs of specific categories : schools, libraries…
High level quality criteria and full services range
MIDDLE EAST & NORTH AFRICA
Teledensity via Wireless coverage (GSM or satellite)
Affordability for the majority
Availability in rural areas mainly
4) Basic services availability : voice telephony and Internet dial-up mainly
AFRICA
Accessibility via “telecentre” and “cyber cafe”
Affordability for the majority
Availability for all
4) Basic services availability : voice telephony mainly + -

9. UNIVERSAL SERVICES POLICIES IN EUROPE
Increase monthly fees / Decrease communications prices
Allow competition on ADSL delivery to induce price decrease
Decrease funding of Universal Services
Open universal services delivery to new operators

10. UNIVERSAL SERVICES POLICIES IN AFRICA
Set up the regulatory framework for Universal Services delivery
Priorities the needs and analyse the solutions and their costs
Establishing the funding mechanisms
Choose the right players for Universal Services delivery

11. ESTIMATED COST FOR US DELIVERY
France
USA
Senegal
Cameroon
Ivory Coast
Burkina Faso
Estimated Cost
(USD)
0,4 M $
Contribution to USF in 2002
2,5 M $
Contribution to USAC in 2002
4 M $
Evaluation by Sonatel
Needs :
4,5 M $ (1) Or
15 M $ (2)
Budgeted :
20 M $
73,9 M $
Comment
* for high cost areas
* for low income
for public phones
French ART
50% for schools and libraries
20% for high cost areas
USAC
For lines open in rural areas
Gaston Zongo "Rapport sur les télécentres"
: Cost for 150 BTS
: cost for 1100 VSAT
Rapport Intelecom 2002
lines in 4years
Licence obligation
To obtain teledensity of 4/1000 in Rural areas
Study from P&T ministry of Burkina

12. UNIVERSAL SERVICES - REGULATORY FRAME

13. CONCLUSION
Universal Service definition has to be translated into regional / national priorities
Situation between US, Western EEC, MEA and other countries are very different. That for priorities differ from country to country. Models and frame should be different too.
Laws and Regulation must exist and have to be  Equitable  Non Discriminatory  Transparent and Measurable
Mechanism for delivery and funding have to be :  Specific  Predictable  Sufficient

14. THANKS FOR YOUR ATTENTION
Claire Audin
Chief Executive Officer
14 quai Léon Chausson Juziers - France