1. Multimedia Training Kit
Privatization, Liberalization and Competition in Telecommunications
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

2. Multimedia Training Kit www.itrainonline.org
Content
Definitions
Objectives, options and implications
13 key issues
Impact on national goals and policy
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

3. Multimedia Training Kit www.itrainonline.org
Learning outcomes
Be able to define privatization, liberalization and competition in telecommunications.
Understand the objectives, options and implications of privatization, liberalization and competition in telecommunications.
Be able to identify 13 key issues shaping the telecom environment.
Understand the impact of liberalization on national goals and policy.
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

4. Multimedia Training Kit www.itrainonline.org
Definitions
Privatization
Liberalization
Competition
Regulation
Universality
Global pricing regimes
The Handout provides basic definitions of the above terms. However, it is important to provide examples of different approaches, explain certain additional terms (unbundling, interconnection, cross-subsidies, etc) and be open to new terms. For example, discuss different types of privatization (sell of shares, BTO. BOT, full privatization, partial privatization, etc). Trainer can assess audience and level of knowledge and decide how much to explore certain issues.
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

5. Multimedia Training Kit www.itrainonline.org
Objectives
Universal access, allowing as many people as possible to have access to telecommunications services
Services that are affordable to most people
A variety of options from which to choose
Reliable and efficient service
Provide examples from either the case studies or other countries to illustrate these (both in terms of what can happen and/or may not happen). Raise different stakeholders’ perspectives on each issue:
Private sector: are private sector interests compatible with affordable universal access objectives? Refer to network externalities, advantages of an expanded network.
Media: what is the role of media? Reporting event? Provide critical analysis?
Civil society: what is the role of civil society? What are CS’s interests? Should CS be the industry “watch dog”?
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

6. Issues and implications
Extent of liberalization
Extent of competition
Moving away from the public-ownership model:
Eliminate cross-subsidization
Develop a rate rebalancing plan
Independent regulators
Cross subsidization happens, for example, when international and long-distance services subsidize (i.e., cover a portion of the costs) local services (urban and rural).
Rate rebalancing refers to a mechanism that corrects economic “imbalances”, such as cross-subsidization. It is a way to prepare monopolies to operate in a competitive environment and providing services based on economic cost (preferable, forward-looking economic costs). Refer to pricing implications, I.e., higher local rates and lower long distance rates, and how it impacts different groups (women, rural populations, business versus residential services, etc).
Regulation: refer to role of media in informing about implications of regulation (pros, cons, short comings, advantages, etc); the need for independent decision making ability; etc
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

7. Issues and implications
The computer revolution (data transmission)
The Internet and the WWW (impact on the public network)
Fixed versus wireless solutions (monopoly, open competition)
Discuss how these issues affect the market (structure, size, number of players, etc), demands on the public network, and drive for further innovation.
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

8. Multimedia Training Kit www.itrainonline.org
Exercise 1
In groups (e.g. per country or region), describe the status of the telecommunications sector in your country. Discuss proposed or approved policies.
Report back to the other groups.
Ask specifically to identify the following: country, market structure (number of operators, private vs. public, etc), and if possible and aware, what policies already exist or are in the process of being developed.
As groups report to plenary, trainer should keep track of items to be raised and used as illustrations for the next slides.
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Multimedia Training Kit

9. Multimedia Training Kit www.itrainonline.org
13 key issues - 1
Government loss of revenue
Loss of jobs
Government relinquishes power
Regulatory capacity
Regulatory independence
Spectrum management
It is important to raise these issues and provide ALL stakeholder’s views. Trainer should also be aware of gender considerations around these issues as well, such as, with respect to job loss (I.e., which jobs are more likely to be eliminated?), implications to social services from government’s loss of revenue, among others. Trainer should ask participants to provide examples from their countries and bring in information shared from exercise 1 to illustrate issues.
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

10. Multimedia Training Kit www.itrainonline.org
13 key issues - 2
Timing and extent of privatization
Opening of market to global forces
Ability to compete
Political governance structures
Universal access
Affordability
Technological neutrality
Use examples from Exercise 1 to illustrate issues. Points for discussion:
On universal access: the gender perspective, urban-rural perspectives, universal access to WHAT?, etc.
What does affordability mean in each national context?
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

11. Impact on national policy
How does access to ICT impact on development?
Employment
Economic growth
Poverty reduction
Social services
Education
Health
How has ICT and telecommunications policy changed to address this?
Identify linkages between ICT/telecom access and development (trainer should be equipped to provide examples on all areas above; check resources).
Discuss how governments have changed or addressed ICT policy from a development perspective (e.g., NICI process in Africa)
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Multimedia Training Kit

12. Multimedia Training Kit www.itrainonline.org
Exercise 2
In groups of 4-5 participants, examine the case study assigned to your group and discuss the questions at the end of it. Refer to new developments when appropriate.
Report back to the other groups.
Identify linkages between ICT/telecom access and development (trainer should be equipped to provide examples on all areas above; check resources).
Discuss how governments have changed or addressed ICT policy from a development perspective (e.g., NICI process in Africa)
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

13. Multimedia Training Kit www.itrainonline.org
In summary
Current trends are toward the privatization and liberalization of markets, opening them up to competition
Impact on national goals and policy needs to be assessed
Focus on affordable and universal access to ICT (not just a limited number of services)
Identify links with other national policies in the context of development
Trainer should refer to case study analysis and report from group work in making a brief summary of main points
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit

14. Multimedia Training Kit
Privatization, Liberalization and Competition in Telecommunications
Thursday, May 30, 2019Thursday, May 30, 2019
Multimedia Training Kit