Working meeting on ICT for Development in Liberia Georgia Institute of Technology

1
Working meeting on ICT for Development in
LiberiaGeorgia Institute of Technology

• The role of the World Bank
• By
• Boutheina Guermazi
• GICT

2
A snapshot of the sector

• 2004 Key characteristics of a post conflict
  Environment
• Demolished fixed network and distressed incumbent
• Vibrant mobile sector
• High return in high risk environment
• Low entry fees license fees negotiated down
• Huge unmet demand
• Lack of policy, legal and regulatory framework
• ?Ad hoc liberalization process
• ?Duplicative/conflicting spectrum
  assignment

3
Access Indicators
4
World Bank involvement in a nutshell

• Objective Promoting an enabling environment for
  the sector
• through TA and policy dialogue
• No investment involved
• Approach holistic and phased
• policy, legal, regulatory, institutional, market
  structure, market players
• Immediate, medium and long terms plans
• Methodology
• Reflects best practice post conflict, ECOWAS
  guidelines, WTO
• responds to the unique needs of Liberia
• participatory to ensure buy-in and local
  ownership

5
World Bank Involvement 2

• Spectrum Management - GSM Assignments
  Rationalization -2004
• Telecommunications Policy and Strategy Project
  June 2005
• Draft Policy Strategy Report
• Validation Workshop/ Public consultation
• Finalize Policy and Strategy June 30
• Authorizing Instruments June 2005
• Bill 18
• Model Mobile License
• Draft Telecommunications Act
• Spectrum Revenues Methodology and
  Recommendations August 2005
• Telecom Network Infrastructure Study and
  Recommendations August 2005
• Fixed Network Rehabilitation Tender 2006
• Technical Assistance to the LTA Ongoing 2006
• Ongoing Policy Dialogue

6
Policy reform Guiding Principles

• Promote development of the Liberian
  telecommunications sector markets, investment and
  infrastructure
• Through market liberalization, private sector
  expansion, and fair and effective competition
  throughout the telecommunications sector
• Embracing technological neutrality to promote
  Access
• By creating and establishing an independent
  Regulatory Agency responsible for
  telecommunications and spectrum regulation
• Adopting universal access strategies for
  telecommunications services throughout Liberia.
• Affordable prices, high quality services
  responsive customer service

7
Legal Reform

• Builds on policy and strategy work
• Adopts a two-phased approach to sector reform
• Authorizing Instrument creating interim
  regulatory framework
• Developed and approved by the NTGL
• Needed for immediate certainty for the sector
  without long term implications for the new
  Government
• Transitional License for mobile operators
• Need to bring license terms and conditions in
  line with international best practice
• Draft Law establishes regulatory framework in
  longer term

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Objectives of Legal reform

• Reform telecoms regulatory framework to
• Provide better guidance for regulatory authority
  and operators alike
• Improve quality, transparency and predictability
  of regulation
• Implement best international practices
• Further encourage operator investment and
  development of services

9
Institutional Framework

• An independent regulator as a referee between
  market players
• Regulator separate from Government, particularly
  because Government owns a telecoms operator
• Characteristics of independence include separate
  exercise of authority, appointment, budget and
  other operating independence
• But given importance of telecoms to broader
  economic social interests, Government has
  legitimate role in sector policy and development

10
Licensing

• Licenses to be issued and enforced by Regulator
• License is a grant of permission, not a contract
  (standard international practice)
• Regulator to set license conditions
• License conditions not to discriminate among
  operators
• Initial licenses to include detailed conditions
• In longer term, include conditions in regulations
  of general application (i.e. not individual
  licenses)

11
Spectrum Management

• Radio spectrum shall be recognized as a strategic
  national public resource.
• LTA is responsible for Spectrum Planning,
  Frequency Allocation, and Spectrum Assignments
  and Authorizations and will establish rules and
  guidelines to ensure effective management of the
  radio spectrum resource
• Spectrum pricing
• Ensure efficient use of the radio frequency
  spectrum
• Maximize the economic benefit derived from
  spectrum use
• Cover the costs of spectrum management
  activities

12
Competition Policy

• Duties of Regulator
• Designate Dominant Service Providers (DSPs)
• Control abuse of dominance
• Examples include refusing to supply essential
  facilities, predatory pricing and misuse of
  competitor information
• Powers granted to regulator to control abuse
• Prevent other anti-competitive agreements and
  practices
• Examples include price fixing, bid rigging,
  market sharing
• Merger and ownership review powers (again, DSP
  emphasis)

13
Interconnection

• Regulator to
• Facilitate interconnection
• Supervise interconnection and enforce rules
• All SPs have a duty to negotiate interconnection
  agreements
• DSPs have additional duties
• Cost based interconnection charges other costing
  rules as defined by Regulator
• May not discriminate between SPs or between an
  affiliate and an independent SP
• Must prepare a Reference Interconnection Offer
• Must publish interconnection agreements

14
Consumer Protection

• Quality of Service
• Create Technical standards
• Develop penalties and recourse regulations
• Fraud Prevention
• Protect consumers from unfair and deceptive
  practices and services
• Create a Formal Complaint Process
• Public Participation Access to Information

15
Challenges of Reform

• Difficult policy dialogue in a challenging
  governance environment
• Managing transition between Governments
• Winning over concerns of market players and
  pressing needs for predictability, transparency
  and consultation
• Finding the right balance between government
  needs and sector needs

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Unique Opportunities

• Government with a clear vision for sector reform
  and commitment to use ICT for economic and social
  reconstruction of post war Liberia
• Telecom reform in the 150 day plan
• Possibilities for technological leapfrogging
• Legacy networks Vs. new technologies
• Possibilities of regulatory leapfrogging
• Implementing converged regulations
• Including competition policy and consumer
  regulation

17
Moving Forward

• How to revitalize the fixed network?
• Dealing with the incumbent
• Approaches for building a backbone infrastructure
• Connecting Government Ministries
• Bringing the benefits of connectivity to Liberian
  citizens need for universal access policy and
  implementation strategy
• Promoting ICT applications in education, health
  Government services

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From Telecom Reform to an e-agenda

• The building blocs for an e-agenda for Liberia
• Access Layer responding to the access deficit
• Infrastructure fixed, mobile and broadband
• Innovative approaches to access (community based
  vs. individual)
• other access tools ( hardware and software)
• Application layer E-government, health and
  education
• Trust and confidence e-security, e-transactions,
  IPRS..

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ConclusionICT enabler for economic and social
development
20
Conclusion 2Linking ICT to the MDGs
ICT
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Thank you

• Boutheina Guermazi
• Global Information and Communication 
• Technologies Department (GICT) Policy Division (C
  ITPO)The World Bank GroupTel  1 [phone]
  fax [phone]e-mail bguermazi_at_worldban
  k.org