Regulatory Practices National Communications Authority Case study

1
Regulatory PracticesNational Communications
AuthorityCase study

• ITU-EU Regulatory Workshop
• July 2005

2
Strategic Objectives

• Create a vibrant, equitable, and transparent
  Regulatory Regime to
• Enhance Competition
• Increase product and service choice
• Facilitate greater value for price
• Accelerate growth in high technology jobs
• Facilitate rapid network expansion to
  aggressively tying re-licensing to network growth
  and high standard quality of service measures.
• Attain Strong and Fair Regulatory Legislation
• To Equitably and Efficiently Enforce Regulations,
  Consent Judgments, Accelerate Competition and
  astutely manage the fiduciary responsibilities of
  the Authority.

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Strategic Objectives

• Hire, Develop, and Retain a strong Human Capacity
  to enable the efficient and effective
  administration, management and implementation of
  strategic and tactical initiatives relating to
• Strategic Planning/Economic Valuation
  Studies/Business Development
• Frequency Management
• Regulation Licensing
• Legal Services
• Finance and Administration
• The strategic end game of our objectives are in
  the main to
• Accelerate jobs creation and income growth in
  Ghanas ICT Sector,
• Position Ghana as the destination of choice for
  international ICT investment in the sub-region

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Market Trends

• Cumulative impact of strategies taken over the
  last four years have led to significant
  explosion in accesslines, particularly in the
  mobile sector. Further due to the
  Technology-Neutrality Philosophy of The
  Authority, creative access phenomena such as
  space-to-space, buzz-to-buzz, and most recently
  one-for-all services have or are being rolled
  out. As of March 2005, the total penetration was
  about 9.0 , almost NINE (9x) times year-end
  2000. We project that the year-end 2005
  penetration could range between 12 and 16
  being the conservative and optimistic assessments
  .
• Clearly, with such explosive growth comes the
  challenges of call quality and other customer
  relationship challenges if operators fail to
  properly scale up to meet the growth in demand.

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Market Trends/ Cont/d

• Accordingly the Authority shall be extra-vigilant
  to ensure that an optimum balance is attained
  between growth and responsibility to the
  customer.
• Further, the Authority gladly welcomes the
  pro-business and pro-competitive directions
  enunciated in the National Telecommunications
  Policy (2005), and has already started devising
  the most efficient tactical initiatives to ensure
  the implementation of the mandates of the NTP in
  the shortest possible time. Doing so, will enable
  the market opening objectives, the development of
  electronic highways and removing of
  anti-competitive roadblocks, such as SAT-3, to be
  addressed in an efficient and fair manner.

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Enabling Laws Regulations

• NCA ACT 524, 1996
• Review of NCA ACT 524
• In furtherance of strengthening the NCA
  regulatory flexibility, the NCA in concert with
  the MOCT, is in the process of reviewing ACT 524.
• Regulations LI 1719
• Implementation Laws
• National Telecom Policy (2005)
• Outline of Governments Vision

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Market Challenges

• Quality of Service Issues in the midst of rapid
  growth
• Tariff Mechanisms
• Asymmetrical Fixed-Wireless Interconnect rate
  regimes
• Decoupling Issues
• SAT3
• Wholesale-Retail Advantage Challenges
• Broadband
• Other Access Issues
• Non-Competitive Facilities Based Competition
• Expansion of Broadband Penetration

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Composition of Sector Space(Operational as of
December 31st, 2004)
Service Providers
In Operations

• Fixed Line Operators
• Cellular Mobile Operators
• Internet Service Providers
• FM Stations
• Marine Licenses
• VSAT Operators
• Paging Operators
• Broadband Players
• Television Broadcast
• MMDS

• 2
• 4
• 25
• 84
• 114
• 57
• 10
• 4
• 8
• 4

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Composition of Sector SpaceBy Number of
Authorizations
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Industry-Current StateInfrastructure Platforms

• Fixed Wire-Line Operators
• GT PSTN National Operator)
• Westel Fixed Wireless (SNO)
• Fiber-Backbone Operator
• VoltaCom (Fiber Optics Wireless)
• Cellular Operators
• KASAPA
• Scancom
• Millicom
• Ghana Telecom (One-Touch)
• Broadband Wireless
• 3rd. Rail
• GNPC
• NetAfrica

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EOY-Access-Lines Per CompanyIn Thousands (1000)
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Growth In Telecomm Access LinesIn Thousands
ESTIMATED
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Composition of Access-Lines By Access-Type(In
Thousands)
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Comparative Access Line GrowthFixed Vs
Mobile(In Thousands)
Expected Penetration Rate of 14.0
Change in Slope of Mobile Growth Reflects
Expected Increasing Service Affordability,
Induced from Enhanced Projected Acute Price
Competition.
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Composition of Mobile Market (2002)
Total Access Lines 383,000
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Composition of Mobile Market (2004)
Total Access Lines 1,061,000
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Composition of Mobile Market (EST.2005)
Total Projected Access Lines 2,800,000
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Critical Achievements - 2004

• Developed, Issued Implemented Regulations and
  Policy Initiatives To Enhance market Efficiency
  Competitiveness.
• Monitored Enforced Interconnection Among
  Operators
• Issued Licenses and Authorizations Covering a
  Wide Array of Communications Services
  Equipments
• Developed A Framework For The Management Of A
  National Numbering Plan
• Arbitrated and Mediated Conflicts among
  carrier/operators
• Developed The Draft Proposals For FM Radio
  Classifications.
• Undertook Significant Monitoring Inspection
  Exercises

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Critical Achievements-2004

• Enhancement of Regulatory Environment
• Rationalization Pricing of Mobile Operating
  Sector
• Development Issuance of Mobile License
• Successfully Negotiated Mobile License Fees
• Development Issuance International Gateway
  Licenses in The o Facilities Based Mobile Market.
• National Telecommunications Policy
• Played a Key Role in the Development of the
  National Telecommunications Policy, by working in
  Concert with the MOTC and the World Bank.
• National Financial Obligatory Target
  Management.
• Generated Significant Contributions To the
  national Government Via the Issuance of
• Mobile Licenses (82.5 Million Payable Over Six
  (6) Years).
• International Gateway License (2.0 Million per
  License)
• Expanded Receivable Revenue Stream Through the
  Issuance of 1900 MHZ Licenses To Ghana Telecom.
• Initiated Aggressive Steps To Enhance Receivable
  Recovery

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Critical Achievements-2004 Cont/d

• Enhanced Operational Efficiency
• Developed Mandatory Guidelines Emanating From
  Mobile License
• Financial
• Operational
• Legal
• Customer/Consumer Relationship Management
• Completed the Design, Development and Operations
  of NCA Website.
• Improved the Efficiency of Processing Customer
  Applications
• Completed Capital Deployment Obligations
• Initiated the Development of 1st Rangoon Close
  Annex.
• International Obligations
• Played a Key and Leading Role in a Number of
  International Obligatory Activities
• WSIS PrepComs
• Frequency Harmonization With Neighboring
  Countries
• West African Telecommunications Regulatory
  Association

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Constraints Challenges

• Human Capacity Building
• Competitive Salaries to Attract World-Class
  Professional Technical Personnel particularly
  industry-experienced staff for the following
  areas
• Economics, Financial Cost Analysis
• Regulatory Economics Law Telecom
• Frequency Management Engineering
• Computer Science and Management Information
  System
• Revenue Assurance,and Recovery Management.
• .

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Constraints Challenges

• Capital Infrastructure Requirements
• NCA (Corporate Wide) System Register
• Data Archival Retrieval System
• Integrated Electronic Planning System (Financial,
  Regulatory, Frequency, Administrative
  Operational)
• Spectrum Planning Monitoring System

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The Way Forward-2005

• Develop Implement Strategies Leading To the
  Creation of A Vibrant and Competitive Broadband
  Service Market Via
• Extension of Universal Service Obligations To
  Include Digital Data Service Obligations.
• Issuance of Experimental Licenses to Encourage
  Multiple Technology Facilities Platforms.
• Examinations of Other Operator Entrants such
  Cable TV Providers
• Strategically Planning Spectrum Allocation
• Aggressively Implementation of Liberalizing the
  Domestic Fixed/Fixed Wireless Market.
• Examination and Attainment Full Fledged
  Multi-Purpose Facilities Competition

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The Way Forward-2005

• Develop Implement Strategies Leading To the
  Creation of A Vibrant and Competitive
  Broadcasting Service Market
• Evaluate Terms Conditions Pricing, Fees
  Charges Operator Obligations as well Allocation
  Criteria
• Community Radio Stations
• Commercial Radio Stations
• TV Stations Other Media Broadcasting Systems
• Migration from Analog To Digital Transmission

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The Way Forward-2005

• Strengthen Capital and Human Resource Capacity
  to
• Efficiently Effectively Execute NCAs
  Monitoring Enforcement Mandates.
• Regularize The Licensing Procedures In The Market
  Place.
• Formulate, Develop and Implement Strategies and
  Structures to enable The Establishment and
  Sustaining of a Competitive Communications
  Market.
• Enhance and Accelerate Inter-Operator Company
  and Consumer-Operator Company Arbitration
  Processes.
• Implement The Nationwide Numbering Plan

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Constraints Challenges

• Enhance Efficiency, Productivity and
  Transparency
• Develop an Active Web-site To enhance interaction
  with stakeholders and improve public contribution
  and participation in the regulatory process
• Speed application development and response time
• Minimize cost of record keeping and loss of data
  and information, as well as ensuring cleaner and
  a greater degree of openness
• Acquire Monitoring Devices and Develop customer
  focus groups to assess quality of service.
• Expand and deepen skill base via new additions
  and of skilled professionals and customized
  industry developed training programs.
• Improve the decision making process to ensure
  greater participation by management and
  stakeholder when necessary.
• Improve the computer literacy and technical
  know-how of the employees of the NCA.
• Assess through Customers viewpoint the
  performance of the industry.

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Constraints Challenges

• Strengthen the rules and regulations to ensure
  efficient and fair arbitration procedures.
• Enhance public confidence in the NCA e.g., Use of
  Third Party Blue Ribbon Commissions to
  Investigate market/industry problems and
  recommend solutions and penalties.
• Accelerate market competitive structures to
  expand growth, choice and value for consumers via
  development of frameworks and rules to achieve
• Further Liberalization of International Gateway
  Market
• Institution Pro-Market IP-Based Activities, e.g.,
  Voice-Over-IP
• Develop Auction Management Systems To Enhance
  Efficiency of Asset Allocation.
• Institute Development Based Selection Criteria.
• Develop Role Out Auction Procedures For An
  Additional Cellular Operator License.

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Way Forward

• Continue To Build Capacity.
• Develop Dynamic Strategic Plan Systems and
  Culture with Well Defined
• Vision/Mission
• Strategic Objectives
• Tactical Initiatives
• Implementation Monitoring Systems

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The Way Forward-2005

• Develop an Efficient and Effective Framework to
  Foster a Vibrant, Equitable and Transparent
  Regulatory Regime
• Creation and Implementation of a Fair
  Biding/Allocation Mechanism
• Management Information Strategy
• Revenue Enhancement Recovery Management Systems
• Competitive Enhancement Systems
• Implemented Consumer Protection Strategies
• Develop Regulatory Tools and Mechanisms to ensure
  timely and effective enforcement of regulations,
  rules and mandates.
• Continue the Regularization re-alignment of all
  regulatory authorizations to license
  classifications to attract international
  investors.

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The Way Forward-2005

• Develop Implement Economic Rent Modalities To
  Enable
• The institution of a Fair, Equitable, and
  Enhanced Transparent Rate Regime.
• Optimize Revenue Streams From all Asset
  Categories Wireless, Broadcasting, Data
  Services, etc.,
• Migrate Broadcasting Transmission from Analogue
  To Digital Platform.
• Implement Coverage Based FM Radio Classification
  Licensing

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