1. Communications Service Pricing & Industry Analysis EACO WORKING GROUP 8 : Communications Service Pricing & Industry Analysis Chairperson : Mr. Matano Ndaro, (KE) Counsellor : Godliving Kessy (EACO)

2. Outline A bout the Working Group 8 -(WG 08) T erms of Reference (ToRs) P rogress/Achievements F uture Prospects

3. About the WG Name: Communications Service Pricing & Industry Analysis. The structure of EACO WG8 comprises of three Working Parties/Categorizations/Thematic Areas namely – Studies and Market Analysis – Reporting and – Coordination Mandate: To develop harmonized Guidelines for the management and allocation of Telecom Numbers, ccTLD, and other related resources and coordinating implementation of harmonized short codes within the East African Community region. NameRoleCountry Mr. Matano NdaroChairpersonKenya Dr. Twinemanzi Tumubweinee Vice Chair PersonUganda Mr. Clemence Kichao1 st RapporteurTanzania Mon. Jean Christian NTAHONDI 2 nd RapporteurBurundi Godliving KessyLiaison Manager, RegulatoryEACO Representatives: from All 5 EAC Member States

4. Terms of Reference & Progress 3.3 RD PLENARY PROGRESS REVIEW AND ACTION PLAN UPDAT THEMATIC AREA 1: STUDIES AND MARKET ANALYSIS i. Regional Interconnectivity Framework a.The WG8 noted that Regional Interconnectivity issues are being handled by WG2 and EAC-BIN taskforce. The output of these two groups will be used to develop a regional interconnectivity framework. ii. Regional Roaming Pricing Framework a.A study on regional roaming under EACO was initiated and the evaluation of bids completed, however the quoted price was way above EACOs budget. The matter was the referred to the EAC, where the EAC Heads of State have since approved the short term solution for reducing regional roaming charges, and a long term solution that involves conducting a feasibility study for establishment of One Network Area. The involvement of EACO will now focus on the implementation of both the short term and long term solutions. iii. Broadband Access Pricing Framework a.A draft concept paper was presented to WG8 and was noted as a work in progress. Additional information has been collected and incorporated in this draft framework. The draft will be circulated to the member states for review and comments before submission to the congress in June 2015. iv. Framework for Determining Tariffs for Infrastructure Sharing a.Emphasize is put on cost based tariffs. The framework also include detailed specifications, standards and excess capacity for sharable infrastructure to be deployed and/or already deployed in the region.

5. Terms of Reference cont. v. Harmonized spectrum pricing framework C oncept paper on harmonized spectrum pricing framework was presented to the WG8 as work in progress. The questionnaires to collect data from member states have already been circulated with the deadline of 31st January 2015 for response. The complete framework will be presented to the congress in June 2015. vi. Harmonized Signal Distribution Pricing Framework Signal distribution pricing framework was presented to the Assembly in June 2014 and adopted. The WG 8 proposes that EACO secretariat to ensure implementation of this initiative among member states. vii. Harmonized Competition Framework The draft framework is being developed on the basis of these nine principles with a deadline of end of March 2015, the completed framework will be submitted to the 21st EACO congress during June 2015 meeting in Kampala Uganda. viii. Impact of Tele traffic Monitoring / Management Systems on Pricing and Competition in EAC An evaluation of the impact of TTMS on pricing and competition will consider international traffic, pricing and concentration ratios before and after the installation of this system in the EAC region. The finding of this evaluation will be made available to member states.

6. Terms of Reference cont. ix. Elimination of exclusivity of Basic Postal Services Provision The WG8 noted the exclusivity in the provision of basic postal services to Public Postal Operators as well as the introduction of the Universal Communication Services Access for which all postal services providers are contributing. A concept paper is being developed on how the Universal Communication Services Access Fund can take over the universal postal obligations instead of exclusivity of certain services to Public Postal Operators in the region. x. Study on Impact of the Emerging Over the Top Technology Services and Promotional products

7. Key Achievements THEMATIC AREA 2 : REPORTING i. EAC communications data collection and reporting framework Data collection and reporting framework developed and prepared for Consultations with and by the Assembly of Regulators. ii. Databank EACO has completed the Installation of the necessary hardware and the database is expected to be in place following the 21 st Congress approvals. THEMATIC AREA 3: COORDINATION  Information collection on broadband interconnectivity and progress on EAC-BIN project including coverage and connectivity together with information on Postal Service exclusivity will facilitate preparation of concept paper on how the Universal Communication Services Access Fund can be applied in place of universal postal obligations’ exclusivity.

8. Future Continuing Works (i). Evaluation of the feasibility for a Regional Competition body (ii). Harmonized Competition Framework (iii). Harmonized costing and pricing models for Basic Postal Services (iv). Framework for the gradual elimination of exclusivity of postal services provision (v). Regional interconnectivity framework

9. Thank You All.