1. ITU - Arab Regional Office KADI @itu.int Page - 1 / 28 GLOBAL TRENDS IN REGULATION Prof. Ibrahim A. Kadi, Head, ITU Arab Regional Office www.itu.intwww.ituarabic.org 1 st REGULATORY MEETING FOR THE ARAB REGION Algiers (Algeria), 19 – 21 April 2003

2. ITU - Arab Regional Office KADI @itu.int Page - 2 / 28 Topics Telecom Sector Reform Trends & Regional Benchmarking Arab Reform Scoreboard Regional Regulatory Associations ITU/BDT RRU Conclusion

3. ITU - Arab Regional Office KADI @itu.int Page - 3 / 28 Telecom Sector Reform Getting the recipe right Three essential ingredients: Competition Private sector participation Effective regulation

4. ITU - Arab Regional Office KADI @itu.int Page - 4 / 28 Telecom Reform, WHY? Liberalized Markets grow faster, innovate, and serve customers better and cheaper Attract private capital and foreign investment Mobile and Internet services fast Growth -- Competition is the stimulus Investor confidence linked to an effective, fair & transparent regulatory framework Globalization, Growth of international trade in ICT services, and WTO Agreements

5. ITU - Arab Regional Office KADI @itu.int Page - 5 / 28 More telecom Regulators Source: ITU World Telecommunication Regulatory Database Number of Countries with separate telecom regulators

6. ITU - Arab Regional Office KADI @itu.int Page - 6 / 28 Regulators by Region - How do we compare? Source: ITU World Telecommunication Regulatory Database

7. ITU - Arab Regional Office KADI @itu.int Page - 7 / 28 Competition – the Global Scene % of countries Percentage of Countries with Competition for Selected Services, 2001 Source: ITU World Telecommunication Regulatory Database

8. ITU - Arab Regional Office KADI @itu.int Page - 8 / 28 Competition - Basic Services Basic Services by Region, 2002 Source: ITU World Telecom. Regulatory Database % of countries

9. ITU - Arab Regional Office KADI @itu.int Page - 9 / 28 Competition - Basic Services Basic Services by Type, World 2002 Source: ITU World Telecommunication Regulatory Database % of countries

10. ITU - Arab Regional Office KADI @itu.int Page - 10 / 28 Competition in Mobile: Arab States lag behind Source: ITU World Telecommunication Regulatory Database % of countries

11. ITU - Arab Regional Office KADI @itu.int Page - 11 / 28 Competition in ISP Source: ITU World Telecommunication Regulatory Database Internet services, 2002 % of Countries

12. ITU - Arab Regional Office KADI @itu.int Page - 12 / 28 Arab Reform Scoreboard 1/3 Separate Regulator Corpo- ratized Privatized duopoly or Competition Algeria2001 No Plans mobile Bahrain2002Yes Partial 1981 ComorosNo1989Plan 2003? DjiboutiNo1957Plan mobile Egypt1998 Plan m, Paging, GMPCS, ISP IraqNo No Plans Jordan1995Yes Partial 2000 data, mobile, ISP, Paging, GMPCS KuwaitNo Plan mobile, Data, VSAT, ISP

13. ITU - Arab Regional Office KADI @itu.int Page - 13 / 28 Arab Reform Scoreboard 2/3 Separate Regulator Corpo- ritized Privatized duopoly or Competition Lebanon No Plan Data, mobile, ISP Libya No No plans Mauritania 1999Yes 54% Maroc Tel. 2001 all ex. Leased lines Morocco 19971998 35% Vivendi 2000 data, mobile, Paging, GMPCS, ISP Oman 2002 No No plans Palestine No 1996 No plansMost Services Qatar NoYes Partial 1998 Saudi Ara. 20011998 Partial 2003ISP

14. ITU - Arab Regional Office KADI @itu.int Page - 14 / 28 Arab Reform Scoreboard 3/3 Separate Regltr. Corpo- ratized Privatized duopoly or Competition Somalia NoYesFully All Services Sudan 19961993 Partial 1994 all ex. Data & mobile Syria NoYesNo Plans mobile Tunisia 20011995Plan 2003? mobile, Paging UAE NoYesPartial GMPCS Yemen No1982No Plans Mobile, GMPCS, isp Total1017 1 full privat. 8 partial6 plan to priv. %46%77% 5% 36%27%

15. ITU - Arab Regional Office KADI @itu.int Page - 15 / 28 Regional Regulatory Associations Worldwide AFRICA:1- ARICEA 2- TRASA 3- WATRA ASIA-PACIFIC:ATRC AMERICAS:1- OCUR 2- REGULATEL EUROPE: - ERG

16. ITU - Arab Regional Office KADI @itu.int Page - 16 / 28 TRASA ’ s Vision: « To be a model regulatory association, through the design and implementation of harmonised regulations and policies, to achieve universal service and sustainable communications development in an investor friendly environment »

17. ITU - Arab Regional Office KADI @itu.int Page - 17 / 28 ARICEA ’ s Objectives: "(a) Exchange ideas, views and experiences among members on all aspects relating to facilitating and regulating the development and application of ICTs; (b) Promote the sustainable development and application of efficient, adequate and cost-effective ICT networks and services in the sub-region; (c) Coordinate cross-border regulatory issues on ICTs in the sub-region; (d) Contribute to the achievement of sub-regional and regional integration; (e) Promote the maximisation of the utilisation of scarce resources in the ICTs sector.”

18. ITU - Arab Regional Office KADI @itu.int Page - 18 / 28 ITU BDT Regulatory Reform Unit (RRU) Publications & case studies on key issues Regulatory Models International & Regional Regulatory Forums ITU World Telecom. Regulatory Database Online library and resource center The Global Regulators’ Exchange: G-REX Capacity building for regulators through Centres of Excellence

19. ITU - Arab Regional Office KADI @itu.int Page - 19 / 28 Reports: Trends in Telecom Reform 2000/2001 Interconnection Regulation Regulation 1998 General Trends 1999 Convergence & Regulation 2002Effective Regulation Regulation

20. ITU - Arab Regional Office KADI @itu.int Page - 20 / 28 Trends in Telecom. Reform 2003: Promoting Universal access to ICTs: Practical tools for regulators Universal Access/Service Overview Role of Sector Reform Procedures to establish a Universal Service Fund, Role of Minimum Subsidy Auction, Consumer tariffs and Interconnection Rate Public Access, Telecentres Entrepreneurial Solutions & Role of Regulator

21. ITU - Arab Regional Office KADI @itu.int Page - 21 / 28 Narrowing the Digital Divide Through: Regulatory Reform Regulatory Reform Incentive Regulation Incentive Regulation New Technology New Technology Public Access to ICTs Public Access to ICTs

22. ITU - Arab Regional Office KADI @itu.int Page - 22 / 28 The Global Regulators ’ Exchange G-REX to exchange information and experiences through Conferences and the Regulators’ Hotline Online forum for Regulators & Policy makers

23. ITU - Arab Regional Office KADI @itu.int Page - 23 / 28 G-REX CONFERENCES AND SPECIAL STUDY G-REX Conferences Virtual WiFi Conference Interconnection Dispute Settlement Conf. Licensing Conf. Special Study Dispute Settlement And ADR

24. ITU - Arab Regional Office KADI @itu.int Page - 24 / 28 Global Symposium for Regulators Geneva, 8-9 Dec. 2003 Practical tools regulators can use to increase universal access to ICTs: Day 1 : Private Sector/Regulator Sessions Day 2 : Regulators Only Sessions http://www.itu.int/ITU-D/treg/Events/ Seminars/2003/GSR/index.html

25. ITU - Arab Regional Office KADI @itu.int Page - 25 / 28 RRU Web Site http:// www.itu.int/ITU-D/treg/

26. ITU - Arab Regional Office KADI @itu.int Page - 26 / 28 Challenges for Arab Regulators (1)  True Independence (vs. conflict of Responsibilities)  Transparency and Fairness (Real & Perceived)  Licensing and Competition Policy  Dynamic Management and Licensing of Spectrum  Universal Service and Universal Access  Price Regulation  Consumer Protection  Adequate Financing

27. ITU - Arab Regional Office KADI @itu.int Page - 27 / 28  Interconnection Obligations  Local Loop Unbundling  3G Mobile Spectrum Allocation and Licensing  Broadband Services  Broadcasting Services  Internet and ICT: Internet Governance and Regulation Cyber Laws & e-Applications Security, Digital Signature and PKI Multilingual Domain Names and ENUM Challenges for Arab Regulators (2)

28. ITU - Arab Regional Office KADI @itu.int Page - 28 / 28 Conclusion  Telecom Sector Reform – 3 basic ingredients : Competition Private sector participation Independent regulation  Arab World lagging in Reform, esp. in competition  Reform Programs in various parts of the Arab World : Recent Privatization Moves: Jordan, Saudi Arabia Privatization without competition: Qatar, UAE Competition without Regulation: Somalia Notable Regulators: e.g. Jordan, Bahrain.