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Assistance to the Establishment of the Telecommunications Regulatory Authority in Lebanon SCR-E/111668/D/SV/LB Eurostrategies The Telecommunications Regulatory.

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Presentation on theme: "Assistance to the Establishment of the Telecommunications Regulatory Authority in Lebanon SCR-E/111668/D/SV/LB Eurostrategies The Telecommunications Regulatory."— Presentation transcript:

1 Assistance to the Establishment of the Telecommunications Regulatory Authority in Lebanon SCR-E/111668/D/SV/LB Eurostrategies The Telecommunications Regulatory Authority (TRA) G Alan Horne Presentation at Termium 22 nd Sept 2004 Eurostrategies Third Floor, Ministry of Telecommunications Riad El-Solh Street, Beirut, Lebanon Fixed line: +961 (0) 1 981 490 Lebanon Mobile: +961 3088660

2 Eurostrategies2 Introduction Objective over the next 30 minutes to present: –Mission of TRA –Legal basis –Powers –Budget & Funding –Organisation –TRA Strategy –Establishment of Regulations –Sector Development –Conclusions

3 Eurostrategies3 TRA Mission To regulate the telecommunications sector so as to achieve a competitive environment delivering a wide range of high quality services at competitive prices, in order to assist in the overall development of the Lebanese economy for the benefit of businesses as well as all the citizens of Lebanon.

4 Eurostrategies4 Legal Basis Telecommunications Law - 2002 –Creation of Telecommunications regulatory Authority (TRA); –Corportatisation - Creation of Liban Telecom; –Privatisation; –Restructuring Ministry of Telecommunications to focus on: Policy, International Relations and TRA supervision; Enabling Decrees –Administrative Decree and financial Regulation of the TRA (Art 4); –Appointing the TRA Board (Art 6.1, Art 7, Art 8); –Remuneration of Board Members (Art 9); The Authority shall not be subject to rules governing public institutions but shall be subject to post Audit by Public Audit Court;

5 Eurostrategies5 TRA Powers The Law gives TRA power to manage all aspects related to: –Promotion of competition and stop anti competitive actions; –Licensing, Spectrum, Numbering, Interconnection; –Technical standards; –Tariffs; –Enforcement and imposition of penalties; –Mediation and arbitration; –Supporting educational and health institutions and facilitate the physically disadvantaged through telecommunications –Draft Decrees to detail specific areas of regulation:……

6 Eurostrategies6 Telecoms Sector Telecom Decrees TRA Strategy, Policies, Procedures Guidelines & Decisions Licences InterconnectionLicensingCertificationSpectrumNumbering Primary Legislation TRA structure Licenses (Art. 19) Liban Telecom Acts of Parliament Data Protection MIC 1MIC 2Class Public Budget (Art.11.2.2) TRA ? GoL Policy Documents E Commerce Competition Secondary Legislation Policies

7 Eurostrategies7 Budget & Funding (Art 11 & 12) Financial independence – own fund; Independent audit - Post Audit by Public Audit Court; Publish financial statement; Sources of fund…

8 Eurostrategies8 Sources of fund Admin Licence fees Ministry of finance TRA Central Bank of Lebanon Radio Spectrum Administration fees Radio Spectrum Licence Fees (usage) Art. 17 $x Art. 17 < 10% of $x Art. 11-funding 1(a) Art. 11-funding 1(b) Art. 11 funding 2) Full TRA budget for 2 years TRA Surplus Funds from competitive bidding process and usage

9 Eurostrategies9 TRA Organisation Chairman Legal Affairs & Licensing Telecommunicat ions Technology Information & Consumer Affairs Marketing & Competition TRA Board Manager Legal Dept. Manager Licensing Dept. Manager Spectrum Dept. Mangr Policy/US Dept. Mangr Market Anal Dept. Mangr Tariffs Dept. Manager Consumer Protection Dept. Manager Public Relations Dept. Manager Standards/ QoS Dept. Manager Technical Dept. Head Financial. Head Admin Head Int. Audit Lawyers, licensing officers Interconnection, numbering, type approval spectrum Public relations, dispute resolution, contract managers Wholesale and retail tariffs, market analysis, universal service

10 Eurostrategies10 The Board Appointed and terminated by Decree (Art 6) –Chairman and four members for non-renewable or non-extendable period of five years – proposed by the Minister and adopted by the Council of Ministers; –No direct or indirect interest with any person that provides telecommunications services and equipment; –University degree and experience related to position being taken; (telecommunications, economics, business administration, law, finance, engineering, computer science) Remuneration set by Decree; Meetings majority votes on all legal matters;

11 Eurostrategies11 TRA Operational Objectives Make the right decisions through consultations and must: –Be accessible to all via telephone, internet and when appropriate face to face meetings –Communicate objectives, policy, decisions via web site, media relations, conferences and workshops Must –be efficient in its operations –create an efficient competitive environment; –be responsive to the consumer; –be responsive to the Licensees; Efficiency depends upon: –Well educated and well trained staff; –Effective systems (Use of CRM and IMS); –A core set of clear policies, guidelines and procedures;

12 Eurostrategies12 TRA Strategic Plan Goals for the TRA will be set to achieve the Authority’s Mission and must be defined in line with the needs of the Lebanese telecommunications sector; A Draft TRA five year Strategic Plan has been prepared for consideration by the Board when formed; The priorities were arrived at after informal interviews with key stakeholders, including users, operators, politicians, the Ministry of Telecommunications (MOT) and investors Three Key Goals are proposed dealing with: –Competition –Regulation –Broadband

13 Eurostrategies13 Competition Support the economy of Lebanon by ensuring that there is a comprehensive and sound competitive framework for communications services matching international best practices; Foster innovation and offer consumers real choice ensuring that the widest number of customers obtain the widest range of high quality services, meeting users’ needs at affordable prices; The pro-competitive framework should be promoted domestically and overseas.

14 Eurostrategies14 Regulation Establish an effective and independently regulated environment. Emphasise performance and results through excellent management. Develop and retain independent mission-critical expertise and align the TRA with the dynamic communications markets so as to achieve a liberalised and competitive regime in telecommunications. Promote an environment which will encourage investment in the telecommunications sector as the basis for the attraction and development of the information economy.

15 Eurostrategies15 Broadband Establish regulatory policies that promote competition, innovation, and investment in broadband services and facilities; Monitor progress toward the deployment of broadband services in the Lebanon;

16 Eurostrategies16 To implement the Strategy To implement the Strategic Plan we need to create: –Policies –Decrees –Guidelines –Procedures All will be developed using the Consultation Process; Policies, Guidelines and Procedures are being prepared covering such areas as: –Licensing –Numbering –Spectrum –Certification –Tariffs

17 Eurostrategies17 Telecommunications Industry MoT GSM Ownership Fixed operations Polic y OGERO Mobile 1 Mobile 2 Regulation Radio spectrum Int. Relations ISPs TV dist mmds/cable TV Regulation Data n/w providers Private n/w Admin Sector Development - today

18 Eurostrategies18 Telecommunications Industry MoT Ministry/ Governmental organisation Int. Relations Sector Policy 100% Ownership Mobile 1 Mobile 2 ISPs Liban Telecom TRA TV dist mmds/cable LALU TTU ICAU MCU Mobile 3 ? Data n/w providers TRA supervision Admin By the end of 2005

19 Eurostrategies19 NeCo NewCo Operator n Voice, Data Fixed & Mobile GoL Equip Suppliers Operator 1 Voice, Data Fixed & Mobile Operator 2 Voice, Data Fixed & Mobile Individual Services Licence ISPs customers Class Licences Interconnection Regulation Competition Regulations Retail tariff Regulations Frequency Management Number Management Number Portability Clearing House Interconnection Clearing House TV Radio Mobile, fixed wire, fixed wireless, WiFi, cable, broadcast Regulator Policy Maker < 50% Ownership Law Policy Decrees ISPs Hosts By the end of 2010

20 Eurostrategies20 By the end of 2010 Class Licences for most types of operations which do not need to be applied for; Particular licences only for infrastructure development; Three national infrastructure providers, each competing on equal terms and with a significant non government share holding?; Operators able to sell any type of service and use any type of technology; Other service providers offering indirect access; Customer able to change service provider and keeping number; Voice and data services and prices matching international best practice and cost orientated Universal service fund set up to support service provision to uneconomic areas;

21 Eurostrategies21 Licensed Operator Operator Structure Carrier Services Department Operating Network Retail Services Fixed Line Services Mobile Services ISP Services Leased Services Mobile Operator Fixed Line Operator ISP Account Separation Non discrimination Transparency Data Operator

22 Eurostrategies22 Strong Regulation in definitive areas Regulator controls: –Numbers; –Spectrum; Regulator sets regulations for: –All wholesale services of operators with SMP in such services; –Basic retails services of operators with SMP (e.g voice, internet access, leased lines) Creation of Fair Competition is essential to success.

23 Eurostrategies23 Resulting benefits to all stakeholders Consumer –Choice of supplier –Lower prices –Improved services –Easier access to new systems and services Government –Increased value of assets –Increased volume of usage –Increased direct fees from sector –Increased indirect fees from improved business performance Operators –Improved economy of scope and scale; –Regulated interconnection and wholesale prices ISPs and Value Added Resellers –Ease of market entry –Wholesale interconnection prices

24 Eurostrategies24 Conclusion The latent demand for telecommunications services at affordable prices creates a significant opportunity for Lebanon; The Government in implementing its Telecommunications Law and Policy will unlock this latent demand and bring benefit of all stakeholders; The creation of the TRA is the next step in the implementation of the reform.

25 Eurostrategies25 A TRA working in an open, transparent and consultative manner, staffed with experienced people and learning from international best practice will, within 5 years, have a positive impact on employment, trade, GDP and make a significant contribution to reducing the nation’s balance of payments and debt

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