1. Market Access Barriers in Mobile Communication
Market Access Symposium
Opening Borders to Businesses
Paris, 27 November 2008
Christina Kaul, International Policy Director, Vodafone

2. About Vodafone Vodafone leading global telecom operator
European communication industry overall global leader
Revenue £35.5 billion (as at 31st March 2008)
270 million proportionate customers (as at July 2008)
Market Capitalisation £73.1 billion (as at 9th September 2008)
Present in over 15 emerging markets
In most markets number 2 or 3 mobile operator
In most markets top 3 foreign investor and crucial for development of local infrastructure
Local regulatory expert teams in over 15 emerging markets providing local knowledge and horizontal perspective

4. Importance of Emerging Markets for Telecom Business
Global mobile telecom annual revenues
CAGR %
10.3
4.0
318
435
323
256
112 62
Emerging markets are ~60% of total expected growth over next 5 years
£bn
2007
2013e
Developed markets
Emerging markets
Source: Strategy Analytics

5. Market Access Barriers in Telecom Sector
Liberalization of telecom markets has been major catalyst for growth in several developing countries (e.g. India and Bangladesh).
Many emerging markets telecom operators are now looking at investments outside their home countries (e.g. Bharti in Sri Lanka and Africa, Essar in Kenya, MTN throughout Africa)
Dynamic could be further stimulated with removal of FDI limits still present in several countries (e.g. Indonesia)
Market access often hampered by fragile institutional frameworks (administrative transparency, judicial independence, rule of law, regulatory systems)

6. Market Access Barriers in Telecom Sector
Three major areas of telecom-specific access / market barriers:
Inadequate telecom-specific regulatory systems
Lack of clarity about telecom policy goals of government
Transfer of western regulatory systems without adaptation to local circumstances
Lack of regulatory education / capacity to administer and implement regulatory system
As a consequence regulatory systems lack transparency, predictability, reliability and equality
Preferential treatment of state-owned incumbents / national preference (e.g. licensing fees as indirect state aids
Taxation systems that are inequitable, unpredictable and relying on high taxation of infrastructure / heavy industry businesses
Introduction of new services (e.g. mobile payments – M-PESA in Kenya) very difficult
Impression that telecom sector is not high enough on bilateral EU trade agenda