1. ©Communications Regulators Association of Southern Africa 2013 Antony Chigaazira, CRASA Executive Secretary Regulatory Associations Meeting Warsaw, Poland 2 July 2013 SADC RESULTS OF STUDIES CONDUCTED REGARDING THE REGIONAL ROAMING REGULATION

2. INTRODUCTION -WHERE WE ARE ON MAP ©Communications Regulators Association of Southern Africa 2013

3. BACKGROUND- KEY STATISTICAL DATA 2012 ©Communications Regulators Association of Southern Africa 2013 COUNTRYPOPULATION (millions) MOBILE LINES (mns) MOBILE TELEDENSITY NO. OF OPERATORS Angola19.612.46652 Botswana2.023.081523 DRC67.819.8298 Lesotho1.881.47782 Malawi14.904.42274 Mauritius1.281.1287.63 Mozambique22.910.947.63 Namibia2.102.31002 South Africa50.5960.381003 Swaziland1.20.81671 Tanzania44.927656 Zambia13.1010.5633 Zimbabwe12.97 (252.2)12.61(166.9)973 (43)

4. BACKGROUND –SADC ROAMING STUDIES ©Communications Regulators Association of Southern Africa 2013 Regulatory Impact Assessment I – (partial RIA) Embarked on due to resource constraints. To get an overview of wholesale and retail roaming tariffs by operators in SADC and some benchmark studies. Regulatory Impact Assessment II - Implications of International Roaming tariffs on regional tariffs; Inter-Operator Tariffs(IOT) and Market and Regulatory factors influencing international roaming wholesale and retail charges. Regulatory Impact Assessment III – an impact analysis; economic analysis, consumer surveys and collect and analyse market data and recommend.

5. Critical Steps and Observations ©Communications Regulators Association of Southern Africa 2013 Questionnaires were sent via CRASA to NRAs who sent them to their respective Operators to provide roaming traffic volumes for voice/ SMS/ Data over a 6 month period. The initial response rate was 23.5%. Operators followed up diligently by Regulators to no avail. Responses deadline extended by a further three months but response rate only increased to 41%. Large sections of Questionnaires were NOT completed. Much of information supplied insufficient and made integrity of data gathered through questionnaires a key concern. 4 out of 14 responded in a format useless for the survey.

6. FINDING 1 – ROAMING LEVELS IN SADC CONSTITUTE A SMALL FRACTION OF BUSINESS (TRAFFIC & REVENUE) ©Communications Regulators Association of Southern Africa 2013

7. KEY FINDING 2 - A VERY SMALL PERCENTAGE OF SUBSCRIBERS ROAM ©Communications Regulators Association of Southern Africa 2013

8. KEY FINDING 3 – AVERAGE SADC ROAMING PRICES SIGNIFICANTLY HIGHER THAN EUROPE Average retail roaming rate per category (USD) Operator 1 Operator 2 Operator 3 Operator 4 Operator 5 Operator 6 Operator 7 Operator 8 Operator 9 Operator 10 Operator 11 Operator 12 Operator 13 Operator 14 Voice No Data 0.8351.409 No Data 1.1170.6510.3720.031 No Data 0.8491.699 SMS No Data 0.052 No Data 0.0390.0530.0220.014 No Data 0.2390.113 Data No Data 2.336No Data 1.79012.34 9 No Data 0.472No Data 3.6617.296 @ Communications Regulators Association of Southern Africa 2009

9. KEY FINDING 3 - Continued ServiceCRASAEU Price Caps% Difference Voice (blended) US$ 0.87 US$ 0.23CRASA 528% higher SMS US$ 0.08 US$ 0.11 CRASA 378% higher Data US$ 4.65 US$ 0.88 CRASA 69% higher @ Communications Regulators Association of Southern Africa 2009 ASSUMPTIONS MADE [1] [1] http://fx-rate.net/EUR/USD/ accessed on 25 May 2012 [2] [2] Assume 50/50 originating and receiving voice call split. [3] [3] Rate calculated using average between price caps for calls made and calls received [4] [4] Price cap only applicable from July 2012

10. OTHER FINDINGS Wholesale cost of roaming in SADC is indeterminate due to erratic Inter-Operator Tariffs(IOTs). Different networks different charges plus roaming overhead cost varies. Only operators in Mauritius and Seychelles have substantial roaming revenue streams. In SADC Post-paid Roaming is more prevalent than Prepaid. 73% interviewed offer prepaid. @ Communications Regulators Association of Southern Africa 2009

11. FURTHER FINDINGS Very few roaming agreements in SADC and no specialist roaming hubs exist. Most subscribers travelling in Region rely on plastic roaming. Evidence - high Churn Rate. RICA (Regulation of Interception of Communication Act) to affect plastic roaming. Small operators crippled in roaming market by their lack of scale. @ Communications Regulators Association of Southern Africa 2009

12. FURTHER FINDINGS Some large operators claim to have taken roaming to another level- eg One Network; One World and Vodafone Passport initiatives. Low consumer awareness, no transparency for end user. Transparency Commercial decision rather than regulatory one. Inter-Operator Tariffs, Roaming Overhead Costs and Retail Margins well above Costs. @ Communications Regulators Association of Southern Africa 2009

13. WHERE WE ARE NOW AND WHERE TO- HOME AND AWAY ROAMING PROJECT 1.Transparency Guidelines have been issued Transparency, Consumer Awareness, Empowerment = PHASE I Tariff Information SMS Notification on entry to visited country Website Information 2.Cost Based tariffs=PHASE II (Seeking Funding)× 3.Roam Like a Local=PHASE III (Seek Funding) × @ Communications Regulators Association of Southern Africa 2009

14. I THANK YOU THE END @ Communications Regulators Association of Southern Africa 2010