Telecom Sector Reforms: Towards Full Market Liberalization

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Telecom Sector Reforms Towards Full Market
Liberalization

• Khalid S.Rabayah

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Outline

• ICT Indicator and benchmarking
• Regulation environment
• Impact of ICT investment on economy
• Recommendations

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The Study

• Research Team Khalid Rabayah, Sami Awad, Naser
  AbdelKareem
• Objectives
• Analyze the recent government moves towards
  liberalizing the market
• Estimate the size of investment in the upcoming
  five years and its impact on the economy
• Analyze the status of broadband, and investigate
  the best possible licensing investment
  scenarios
• Formulate a recommendation to be presented to the
  government

The study is executed for the benefit of PITA and
funded by the Palestine International Business
Forum PIBF-
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Background
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Palestine ICT environment
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Status of Broadband
Broadband Subscribers/100 fixed lines
Broadband Subscribers/100 residence
International Internet Bandwidth
7
Demographics and GDP
Palestine 1,066
8
Mobile Penetration in line with the World
32
WBG
9
FIXED Telephony
8.5
WBG
10
Internet penetration
Internet users (2002 2006)
16
Broadband users
11
National ICT Scene Timeline
ICT national strategy launched
End of monopolistic regime
Telecom Law (3)
Interconnections Guidelines
SFI initiative
Broadband licenses issued
1999
2005
2007
2008
2006
2004
1996
?????????
Attempts to issue new telecom law and TRA
Wataniya was granted license
Mobile service launched
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CIT sector drivers
Economy / Public Interest

• Spread of ICT
• Services
• Sector Liberalization
• Promote investment
• Create Jobs
• Technology Transfer

Consumers
Investors

• Service Availability
• Quality
• Reduced Prices
• Customer Care
• Consumer Choice

• Stable Regulatory
• environment
• Fair Competition
• Reasonable Return
• on investment

??
Fairness Transparency Best Practices Public
Consultations
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Government liberalization Strategy
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Telecom infrastructure ? Economic development by
Center for Economic Policy Research, London, UK

• Telecom Infrastructure is responsible for a
  large portion of economic growth up to 50.
• Communication investments are subject to a
  critical mass phenomenon Universal Access, or
  40 penetration
• Causality effect Telecom ?? Economic
  prosperity
• Telecom Infrastructure shows interesting effect
  Network Externality the more users on the
  network the more value the network has

Economic Impact
20
30
40
50
Penetration
15
Recommendation to Government

• Adopt an implementable knowledge-based economy
  strategy
• Facilitate the development of vibrant ICT
  industry
• Deepen reform and issue a stimulating sector
  policy
• Act immediately to launch a resourceful,
  independent TRA
• fight aggressively for Spectrum
• Adopt class licensing regime

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What you will find in the report

• Analyses of licensing policy with experience from
  international and regional markets
• Analysis of licensing fees
• Policy towards the service resellers class
  licenses
• Guidance for Interconnection
• Local loop unbundling
• VoIP
• Technology convergence