Working meeting on ICT for Development in Liberia

Georgia Institute of Technology

The role of the World BankBy

Boutheina GuermaziGICT

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 environmentLow entry fees: license fees negotiated downHuge unmet demand

Lack of policy, legal and regulatory framework→Ad hoc liberalization process →Duplicative/conflicting spectrum assignment

Access Indicators

Category 2000 2005 SSA AfricaTelephone NetworkMain telephone lines in operation 6,048 2,084 22,740,320 71,932,420Main telephone lines per 100 inhabitants 0.22% 0.06% 2.68% 6.20%Mobile ServicesCellular mobile subscribers n/a 210,000 18,004,001 51,441,20Cellular subscribers per 100 inhabitants n/a 6.00% 2.78% 6.12%Internet ServicesInternet users n/a 650 4,4703,21 10,358,10Internet users per 100 inhabitants n/a 0.01% 0.70% 1.48%

World Bank involvement in a nutshell:

1. Objective: Promoting an enabling environment for the sector through TA and policy dialogue No investment involved

2. Approach: holistic and phased policy, legal, regulatory, institutional, market structure, market

players Immediate, medium and long terms plans

3. Methodology Reflects best practice: post conflict, ECOWAS guidelines, WTO responds to the unique needs of Liberia participatory to ensure buy-in and local ownership

World Bank Involvement 21. Spectrum Management - GSM Assignments Rationalization -20042. Telecommunications Policy and Strategy Project – June 2005

Draft Policy & Strategy Report Validation Workshop/ Public consultation Finalize Policy and Strategy June 30

3. Authorizing Instruments – June 2005 Bill 18 Model Mobile License Draft Telecommunications Act

4. Spectrum Revenues – Methodology and Recommendations – August 20055. Telecom Network Infrastructure Study and Recommendations – August

20056. Fixed Network Rehabilitation Tender – 20067. Technical Assistance to the LTA – Ongoing 20068. Ongoing Policy Dialogue

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;

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 NTGLNeeded 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

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

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

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)

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

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)

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

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

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

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

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

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 broadbandInnovative 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..

Conclusion:Conclusion:ICT enabler for economic and social developmentICT enabler for economic and social development

Health

social cohesion Business Services

Education

PublicServices

ICTFinancial

Sector

Less isolation in poor and rural areas

ICTPrivate Sector Social

En

viron

men

tT

ransp

ort

Urban

Agriculture

Poverty

Educatio

n

Energy

Trade Health

Governance

Fin

anci

al

Gen

der

Ru

ral

Water

MD

G 1

MD

G 5

MDG 2

MDG 6

MDG 3

MDG 7

MD

G 8

MD

G 4

MDG 1 Eradicate extreme

poverty and hunger

MDG 2 Achieve universal primary education

MDG 3Promote gender

equality and empower women

MDG 4 Reduce child

mortality

MDG 5 Improve maternal

health

MDG 6 Combat HIV/AIDS, malaria and other

diseases

MDG 7Ensure environmental

sustainability

MDG 8 Build a global

partnership for development

Conclusion 2Linking ICT to the MDG’s

Thank youBoutheina Guermazi

Global Information and Communication Technologies Department (GICT) 

Policy Division (CITPO)The World Bank GroupTel: + 1 (202) 473 9729fax: +1 (202) 522 3001

e-mail: bguermazi@worldbank.org