MULTI-YEAR EXPERT MEETING ON SERVICES, DEVELOPMENT AND TRADE:THE REGULATORY AND INSTITUTIONAL DIMENSION

Geneva, 17-19 March 2010

REGULATING THE COMMUNICATION SECTOR IN TANZANIA

By

John NKOMADirector General

Tanzania Communications Regulatory Authority (TCRA)

11

UNCTAD MULTIUNCTAD MULTI--YEAR EXPERT MEETING YEAR EXPERT MEETING GENEVA, 17 GENEVA, 17 -- 19 March, 201019 March, 2010

“Regulating the Communication Sector in Tanzania”

John S Nkoma

Director GeneralTanzania Communications Regulatory Authority (TCRA)

22

REGULATING THE COMMUNICATIONS REGULATING THE COMMUNICATIONS SECTOR IN TANZANIASECTOR IN TANZANIA

• Introduction* The Mobile Miracle globally* Institutional Arrangements

• Communications Policies, Legislations, Regulations and Licensing:* Communications Sector Policies* Communications Sector Legislations* Communications Sector Regulations* Converged Licensing Framework

• Communication Sector Market Outlook• Challenges to ICT Development• Concluding Remarks

33

Institutional ArrangementsInstitutional Arrangements• Government is responsible for strategic Policy

guidelines for development of the communications sector

• The Tanzania Communications Regulatory Authority (TCRA) is responsible for regulation of Postal, Broadcasting and Electronic Communications sectors

• Operators are responsible for building, maintaining info-communication infrastructure, providing efficient and affordable ICT services to Tanzanians (rural & urban)

• Consumers expect affordable, accessible and good QoS and good QoE

44

Institutional ArrangementsInstitutional Arrangements• GOVERNMENT

• REGULATOR

• OPERATORS

• CONSUMERS expect affordable, accessible services, good QoS, good QoE

MINISTRY OF COMMUNICATION,

SCIENCE & TECHNOLOGY

MINISTRY OF INFORMATION, SPORTS &

CULTURE

TANZANIA COMMUNICATION

REGULATORY AUTHORITY

MULTI-OPERATORS IN A COMPETITIVE MARKET

Licensing & regulation

Policy issues

Provision of services

Universal Service Fund CCCFCC/FCT

55

TCRA ORGANIZATION STRUCTURETCRA ORGANIZATION STRUCTURE

•BOARD

•DIRECTOR GENERAL

•DIRECTOR OF CONSUMER & INDUSTRY AFFAIRS

•DIRECTOR, INFORMATION & COMMUNICATION TECHNOLOGIES

•DIRECTOR, CORPORATE RESOURCES

MANAGEMENT

•DIRECTOR, POSTAL AFFAIRS

•DIRECTOR, BROADCASTING AFFAIRS

•DIRECTOR, LEGAL SERVICES

•ZONAL COORDINATION UNIT

•PLANNING & RESEARCH UNIT

•PROCUREMENT MANAGEMENT UNIT

•DEPUTY DIRECTOR, INDUSTRY AFFAIRS

•DEPUTY DIRECTOR, CONSUMER AFFAIRS

•DEPUTY DIRECTOR, TELECOMMUNICATIO

N STANDARDS

•DEPUTY DIRECTOR, SPECTRUM MANAGEMENT

•DEPUTY DIRECTOR, HUMAN RESOURCES & ADMINISTRATION

•DEPUTY DIRECTOR, FINANCE

•LIBRARY & INFORMATION SYSTEMS UNIT

•DEPUTY DIRECTOR, POSTAL AFFAIRS

•DEPUTY DIRECTOR, BROADCASTING AFFAIRS

•DEPUTY DIRECTOR, LEGAL SERVICES

•DEPUTY, DIRECTOR, LICENSING & ENFORCEMENT

•CORPORATE COMMUNICATIONS UNIT

•SYSTEMS MANAGEMENT UNIT

66

Communications Sector PoliciesCommunications Sector Policies

• Tanzania Development Vision 2025• National Telecommunications Policy

(1997)• National ICT Policy (2003)• National Postal Policy (2003)• National Information and Broadcasting

Policy (2003)

77

Communication Sector LegislationsCommunication Sector Legislations

• Tanzania Communications Regulatory Authority Act No. 12/2003;

• Universal Communications Service Access Fund Act, 2006

• Electronic and Postal Communications Act, 2009 (EPOCA) (After repeal of Tanzania Communications Act No.18/1993 Tanzania Broadcasting Services Act No.6/1993)

88

Communications Sector RegulationsCommunications Sector Regulations

1. The Tanzania Communications (Broadband Service) Regulations 20052. The Tanzania Communications (Consumer Protection) Regulations 20053. The Tanzania Broadcasting Services (Content ) Regulations 20054. The Tanzania Communications (Licensing) Regulations 20055. The Tanzania Communications (Importation and Distribution) Regulations

20056. The Tanzania Communications (Installations and Maintenance) Regulations

20057. The Tanzania Communications (Interconnection) Regulations 20058. The Tanzania Communications (Telecommunication Numbering and Electronic

address) Regulations 20059. The Tanzania Postal Regulations 200510. The Tanzania Communications (Radio Communications and Frequency Spectrum

) Regulations 200511. The Tanzania Communications (Tariff) Regulations 200512. The Tanzania Communications (Type Approval of Electronic Communications

Equipments) Regulations 200513. The Tanzania Communications (Quality of Service) Regulations 200514. The Tanzania Communications (Access and Facilities) Regulations 2005

99

THE TANZANIA COMMUNICATIONS REGULATORY THE TANZANIA COMMUNICATIONS REGULATORY AUTHORITY ACT N0 12 OF 2003AUTHORITY ACT N0 12 OF 2003

• Part I: Preliminary Provisions• Part II: The Authority• Part III: Powers and Proceedings of the Authority• Part IV: Content Committee and its Functions• Part V: The Tanzania Broadcasting Services (TUT)• Part VI: Review and Appeals Procedure• Part VII: The Council• Part VIII: Complaints and Dispute Resolution• Part IX: Enforcement and Compliance• Part X: Financial Provisions

1010

THE TANZANIA COMMUNICATIONS REGULATORY THE TANZANIA COMMUNICATIONS REGULATORY AUTHORITY ACT N0 12 OF 2003 AUTHORITY ACT N0 12 OF 2003 ContdContd…………

• Part XI: Transitional and Miscellaneous Provisions • Part XII:

Amendment of the Tanzania Communications Act, 1993Amendment of the Tanzania Broadcasting Services Act, 1993Amendment of the Tanzania Posts Corporation Act, 1993

1111

PART II, SECTION 5: DUTIES OF THE AUTHORITY PART II, SECTION 5: DUTIES OF THE AUTHORITY

• Promoting effective competition and economic efficiency; • Promoting the interests of consumers;• Protecting the financial viability of efficient suppliers;• Promoting the availability of regulated services to all

consumers including low income, rural and disadvantaged consumers;

• Enhancing public knowledge, awareness and understanding of the regulated sectors including:(i) the rights and obligations of consumers and regulated suppliers;(ii) the ways in which complaints and disputes may be initiated and resolved;(iii) the duties, functions and activities of the Authority;

• Taking into account the need to protect and preserve the environment

1212

PART II, SECTION 6: FUNCTIONS OF THE AUTHORITY PART II, SECTION 6: FUNCTIONS OF THE AUTHORITY

• (a) to perform the functions conferred on the Authority by sector legislation;

• (b) subject to sector legislation: (i) to issue, renew and cancel licenses;(ii) to establish standards for regulated goods and regulated services;(iii) to establish standards for the terms and conditions of supply of the regulated goods and services;(iv) to regulate rates and charges(v) to make rules for carrying out the purposes and provisions of this Act and the sector legislation;

1313

PART II, SECTION 6: FUNCTIONS OF THE AUTHORITY PART II, SECTION 6: FUNCTIONS OF THE AUTHORITY

• (c) to monitor the performance of the regulated sectors including in relation to: (i) levels of investment;(ii) availability, quality and standards of services;(iii) the cost of services;(iv) the efficiency of production and distribution of services, and(v) other matters relevant to the Authority;

• (d) to facilitate the resolution of complaints and disputes;

1414

PART II, SECTION 6: FUNCTIONS OF THE AUTHORITY PART II, SECTION 6: FUNCTIONS OF THE AUTHORITY

• (e) to take over and continue carrying out the functions formerly of the Tanzania Communications Commission and Tanzania Broadcasting Commission;

• (f) to disseminate information about matters relevant to the functions of the Authority;

• (g) to consult with other regulatory authorities or bodies or institutions discharging functions similar to those of the Authority in the United Republic of Tanzania and elsewhere;

• (h) to administer this Act• (i) to perform such other functions as may be conferred on the

Authority by this Act or any other law.

1515

EPOCA (ELECTRONIC AND POSTAL EPOCA (ELECTRONIC AND POSTAL COMMUNICATIONS ACT)COMMUNICATIONS ACT)

• Passed by Parliament on 29th January 2010, awaiting Presidential Assent

• CONTENTS• Part I: Preliminary Provisions• Part II: Electronic Communications

(a) Licensing(b) Interconnection and Access

• Part III: Postal Communications• Part IV: Competitive Practises and Conduct• Part V: Enforcement• Part VI: Offences and Penalties• Part VII: Miscellaneous Provisions• Part VIII: Transitional Provisions• Part IX: Consequential Amendments

1616

The Converged Licensing FrameworkThe Converged Licensing Framework

The CLF was introduced on 23rd February 2005. It consists of four licenses:

• Network Facility License (NFL)• Network Services License (NSL)• Application Services License (ASL)• Content Services License (CSL)

The Converged licensing framework is Technology Neutral and Service Neutral.

Market segments: International, National, Regional, District

1717

Market Segments of the CLFMarket Segments of the CLFLICENSE INTERNATIONAL NATIONAL REGIONAL DISTRICT

NETWORK FACILITY LICENSE (NFL)

NFL (I) NFL(N) NFL(R) NFL(D)

NETWORK SERVICE LICENSE (NSL)

NSL(I) NSL(N) NSL(R) NSL(D)

APPLICATION SERVICES LICENSE (ASL)

ASL(I) ASL(N) ASL(R) ASL(D)

CONTENT SERVICES LICENSE (CSL)

CSL(I) CSL(N) CSL(R) CSL(D)

1818

Technology NeutralityTechnology NeutralityTechnology neutrality has allowed several technologies to be deployed

• Copper wire• Microwave• Satellite• GSM: 2.0G, 2.5G, 3.0G, 3.5G(HSDPA), 4G, LTE• CDMA (3G): CDMA 2000 1X, CDMA 2000 1X EV-DO,

CDMA 2000 1X EV-DV• Fixed wireless• WiMax• HCSDMA (iburst)• Fiber

1919

POSSIBLE MIGRATION PATHSPOSSIBLE MIGRATION PATHSPOSSIBLE MIGRATION PATHS

2020

Network Facility LicenseesNetwork Facility Licensees

In operation (9)

• TTCL

• Vodacom (T) Ltd

• Celtel(T) Ltd (Zain)

• MIC (T) Ltd (Tigo)

• Zantel Telecom Limited

• Benson Informatics Limited

• Six Telecoms Company Limited

•Dovetel (T) Ltd (Sasatel)

•Seacom(T) Ltd.

Rolling out (5)

• ExcellentCom (T) Ltd (Hits)

• Egotel (T) Ltd.

• Rural Netco Limited

• MyCell Company Ltd

• Smile(T) Ltd.

Source: TCRA Data base

2121

Content Service LicensesContent Service Licenses

Radio (53)

• National -5

• Regional -17

• District -29

• Community -2

Television (27)

• National -6

•Regional -1

• District -20

CSL by subscription(DSTV)

CSL by subscription (Cable)

Source: TCRA Data base

2222

Other LicensesOther Licenses

• Public Postal License• Courier Service License• Frequency User License• Installation and Maintenance License• Importation and Distribution License• Type Approval • Numbering Resources

2323

Trends of Voice TelCom Subscriptions as at March 2009

(a) Subscriptions per OperatorOperator/Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 Mar-09

VODACOM 50,000 180,000 300,000 700,000 1,050,000 1,562,435 2,975,580 3,870,843 5,408,439 5,670,122

TIGO 56,511 89,056 160,000 210,000 303,000 422,500 760,874 1,191,678 2,569,527 2,954,452

CELTEL 120,089 320,000 504,000 882,693 1,516,832 2,505,546 3,862,371 4,104,879

ZANTELMobile 4,007 6,501 26,770 68,000 85,000 96,109 355,993 684,214 1,057,652 1,030,490

ZANTELFixed 7,544 11,879

TTCLFixed 173,591 177,802 161,590 147,006 148,360 154,420 157,287 236,493 116,265 170,021

TTCLMobile 105,804 121,233

BENSON 3,000 3,500

TOTAL 284,109 453,359 768,449 1,445,006 2,090,360 3,118,157 5,766,566 8,488,774 13,130,602 14,066,576

asghdhs

2424

Network/Year FIXED LINES MOBILE TOTAL Penetration Mobile Share

2000 173,591 126,646 300,237 1% 42%

2001 177,802 275,560 453,362 1% 61%

2002 161,590 606,859 768,449 2% 79%

2003 147,006 1,295,000 1,442,006 4% 90%

2004 148,360 1,942,000 2,090,360 6% 93%

2005 154,360 3,389,787 3,544,147 10% 96%

2006 157,287 5,609,279 5,766,566 15% 97%

2007 236,493 8,252,281 8,488,774 21% 97%

2008 123,809 13,006,793 13,130,602 32% 99%

Mar-09 181,900 13,884,676 14,066,576 33% 99%

(b) Summary of Subscriptions per fixed and mobile Networks

•Mobile subscription share has been growing by average rate of 85% per year and

•Fixed subscription share has been falling by average rate of 15% per year

2525

Fig.2 Shares of Subscriptions in % as at March 2009

ZanTel7% Benson

0.02%

TTCL2%

VodaCom41%

Tigo21%

Zain29%

As at March 2009 Vodacom is leading by having more subscriptions

2626

02000000400000060000008000000

10000000120000001400000016000000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Years

Num

ber o

f Sub

scrib

ers

Telecommunications subscribers: Telecommunications subscribers: 2000 2000 -- 20092009

2727

There 33 lines as per 100 There 33 lines as per 100 persons as at March 2009persons as at March 2009

1% 1% 2%4%

6%

10%

15%

21%

32% 33%

0%

5%

10%

15%

20%

25%

30%

35%

2000 2001 2002 2003 2004 2005 2006 2007 2008 Mar-09

Fig.3. Trend of Telecom Penetration

2828

2929

Macro economic performanceMacro economic performance

Macro-economic Performance (2000-2008)

GDPInflation

Teledensity

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008

• GDP growth was higher than inflation between 2000 -2006

• Inflation grew to double digit reaching 13% in 2008

• Tele-density increase from 1% in 2000/01 to over 25% in 2007

Source: TCRA Website, BOT economic bulletin

3030

Interconnection Determination No.1 Interconnection Determination No.1 2004 as amended in March 20062004 as amended in March 2006

Mobile termination rates

0

2

4

6

8

10

12

Nom

inal

US

D c

ents

per

min

ute

2004 2005 2006 2007

Glide path for termination rate LRIC-based cost

8.90

0

2

4

6

8

10

12

Nom

inal

US

D c

ents

per

min

ute

2004 2005 2006 2007

Glide path for termination rate LRIC-based cost

8.00Mobile termination be capped at USD 0.080 from 1 March 2006 until 31 Dec 2007

Fixed single-tandem termination be capped at USD 0.038 from 1 March 2006 until 31 Dec 2007

Fixed double-tandem termination be capped at SD0.053 from 1 March 2006 until 31 Dec 2007

At its meeting held on 28/2/2006 on the basis of Analysys recommendations, the TCRA Board RESOLVED that:

3131

Interconnection Determination No. 2 of 2007 Interconnection Determination No. 2 of 2007 (In US Cents: 1(In US Cents: 1stst January 2008 to 31January 2008 to 31stst

December 2012)December 2012)

1st

January 2008

1st

January2009

1st

January 2010

1st

January2011

1st

January2012

Voice callterminationrates 7.83 7.65 7.49 7.32 7.16

3232

Increased CompetitionIncreased Competition--Tariff reductionTariff reductionAverage Retail Calling Tariffs per minute

Operator National Tariffs2001 2002 2003 2004 2005 2006

$0.25 $0.21 $0.18 $0.15 $0.13 $0.12$0.35 $0.35 $0.29 $0.25 $0.24 $0.21$0.35 $0.38 $0.30 $0.28 $0.27 $0.22$0.43 $0.39 $0.39 $0.30 $0.29 $0.24

$0.27 $0.27 $0.27 $0.27 $0.15

Operator National Tariffs

$0.00

$0.05

$0.10$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

2000 2001 2002 2003 2004 2005 2006

US$

TTCL Tigo Vodacom Celtel Zantel

3333

Tariff reduction Tariff reduction (cont.)(cont.)C h a r g e s C o m p a r i s o n I n t e r n a t i o n a l c a l l s

2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6$ 2 . 2 2 $ 1 . 5 0 $ 1 . 5 0 $ 1 . 3 5 $ 1 . 3 8 $ 0 . 5 9$ 2 . 7 6 $ 1 . 7 8 $ 1 . 8 3 $ 1 . 4 5 $ 1 . 4 1 $ 0 . 7 0$ 2 . 7 2 $ 1 . 6 1 $ 1 . 6 1 $ 1 . 5 1 $ 1 . 4 8 $ 0 . 3 9$ 2 . 8 3 $ 2 . 5 9 $ 2 . 5 9 $ 1 . 3 6 $ 1 . 4 8 $ 0 . 3 9

$ 1 . 2 5 $ 1 . 2 5 $ 1 . 2 5 $ 1 . 2 5 $ 0 . 3 1

O p e r a t o r s I n t e r n a t i o n a l T a r i f f s

2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6

T T C L T i g o V o d a c o m C e l t e l Z a n t e l

3434

Numbering ResourcesNumbering Resources

Operator Network Access CodeMIC (Tigo) 071 YXXXXXX

065 YXXXXXXTTCL Mobile 073 YXXXXXX

Vodacom 075 YXXXXXX076 YXXXXXX

Zantel 077 YXXXXXX

Celtel 078 YXXXXXX

Benson Informatics 079 YXXXXXX

3535

The Short CodesThe Short Codes

• The short codes shall be used as in the National Numbering Plan and in accordance to the other governing Rules and Regulations:

• The major applications of the codes are:

– Customer assistance - 10X range– Life and Safety - 11X range– Voice mail – 12X range– Extras – 13X range– Test Services – 14X range– Reserve Codes are 15X , 16X and 19X ranges

• The Codes 17X and 18X are for Carrier and Pre-Selection services

• The 800 and 900 ranges are for Special, Premium Rate and Multimedia services.

3636

The Radio SpectrumThe Radio Spectrum0.003 MHz – 0.03 MHz Very Low Frequency (VLF)

0.03 MHz – 0.3 MHz Low Frequency (LF)

0.3 MHz – 3 MHz Medium Frequency (MF)

3 MHz – 30 MHz High Frequency (HF)

30 MHz – 300 MHz Very High Frequency (VHF)

300 MHz – 3000 MHz Ultra High Frequency (UHF)

3000 MHz – 30000 MHz Super High Frequency (SHF)

30 000 MHz – 300 000 MHz Extra High Frequency (EHF)

3737

Applications of the Radio Applications of the Radio SpectrumSpectrum

383838

Electromagnetic Radiation: Ionising and NonElectromagnetic Radiation: Ionising and Non--ionisingionising

3939

Spectrum ManagementSpectrum Management

4040

SPECTRUM ALLOCATIONSSPECTRUM ALLOCATIONSBand Operator450 MHz BOL800 MHz TTCL Mob, Zantel, Mycel,

Dovetel900 MHz Vodacom, Celtel (Zain), Mic

(Tigo), Zantel1800 MHz Vodacom, Celtel (Zain), Mic

(Tigo), Zantel1900 MHz2100/2200 MHz Vodacom, Celtel (Zain), Mic

(Tigo), Epocha2300 MHz TCL, BOL2500 MHz / 3500 MHz CTV/Several ISPs

4141

SEACOM SUBMARINE CABLE SEACOM SUBMARINE CABLE

4242

4343

4444

Zanzibar

Malaba

EASSy – Backhaul Connectivity

4545

MombassaMombassa

NairobiNairobi

MalabaMalabaBugiriBugiri

KampalaKampala

MasakaMasaka

MbararaMbarara

NtungamoNtungamo

KabaleKabale

KatunaKatuna

KigaliKigali

ButareButare

AkanyaruAkanyaru

BujumburaBujumbura

ManyovuManyovu

KigomaKigoma

TaboraTabora

DodomaDodoma

MorogoroMorogoroDar Es Dar Es SalaamSalaam

East African Backhaul System (EABs) East African Backhaul System (EABs) RouteRoute

4646

4747

Development of Addressing & Development of Addressing & Postcode systemPostcode system

• Post code project in place• TCRA coordinator of the project. • Project Team include officials from

TCRA Ministry &TPC• Project commenced after feasibility

study in 2007. Implementation started with pilot project in Arusha

4848

POSTCODE PROJECT: 7 ZONESPOSTCODE PROJECT: 7 ZONES

4949

0 0 00

1 11

5050

MUX OPERATORS AND MUX OPERATORS AND CONTENT SERVICE LICENSEESCONTENT SERVICE LICENSEES

Content Provider; MUX OperatorMarket segments

Content producer

MUX(multiplexing)

ConditionalAccess provider

commissioned agents:Stb distribution

Content providers

Customer

DVB - T

satellite

MUX operator market segments

Signal feed

BroadcastingTV channels:

-Free to air

-Subscription; cable and satellite

Access Card

5151

Sengerema model Multi-purpose Telecentre

5252

CHALLENGES TO ICT DEVELOPMENTCHALLENGES TO ICT DEVELOPMENT

• ICT Infrastructure: National ICT Backbone, Backhaul Terrestrial Connectivity, Submarine Cables

• High cost of bandwidth• Spectrum Management• Expansion of ICT services to rural areas• Affordable Tariffs• Simcard Registration• Other Infrastructure: Power, Roads• Consumer Awareness: Choice• Others

5353

Concluding RemarksConcluding Remarks• Tanzania has put in place dynamic

Communications Policies, Legislations, Regulations and Licensing Framework.

• The past few years have witnessed an unprecedented growth in the Communications sector. There is more to come!

• There are a number of challenges to be tackled and the Authority is well placed to face them

5454

Thank you for your Attention !

jsnkoma@tcra.go.tz

www.tcra.go.tz