sub-saharan africa – universal service fund study · 2016-09-12 · no party other than the gsma...

September 2014

Sub-Saharan Africa – Universal Service Fund study

report prepared for GSmA by Ladcomm Corporation

Important Notice

The report is provided exclusively for the GSMA’s use under the terms of the Contract. No party other than the GSMA is entitled to rely on the report for any purpose whatsoever and LADCOMM accepts no responsibility or liability to any party in respect of the report or any of its contents.

The information contained in the report has been obtained from a number of third party sources that are clearly referenced in the appropriate sections. In some instances, figures provided have been clearly identified as estimates. Although LADCOMM has done its best to verify and corroborate the information contained in this report, the information or circumstances may have changed since the report material was gathered. Further, any results from the analysis contained in the report are reliant on the information available at the time of writing the report and should not be relied upon in subsequent periods.

Accordingly, no representation or warranty, express or implied, is given and no responsibility or liability is or will be accepted by or on behalf of LADCOMM or by any of its partners, employees or agents or any other person as to the accuracy, completeness or correctness of the information contained in this document or any oral information made available and any such liability is expressly disclaimed.

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SSA USF STUDY

01. EXECUTIVE SUMMARY 06

02. INTRODUCTION AND GENERAL OVERVIEW 11

2.1 What is a Universal Service Fund (USF) 112.2 Study objective and methodology 13 03. OVERVIEW OF USFs 15

3.1 Introduction 153.2 Fund profiles 17 3.2.1 Snapshot of the SSA Funds Studied 17 3.2.2 types of services 18 3.2.3 table of USF levies applied 19 3.2.4 Fund collection and disbursement 20

04. DEEP DIVE ANALYSES 22

4.1 GHANA 22 4.1.1 Country overview 22 4.1.2 Current status of telecom market 22 4.1.3 Fund background 23 4.1.4 Current status of the fund 24 4.1.5 What the fund has achieved to date 254.2 MOzAMbIqUE 27 4.2.1 Country overview 27 4.2.2 Current status of telecom market 27 4.2.3 Fund background 28 4.2.4 Current status of the fund 29 4.2.5 What the fund has achieved to date 29 4.2.6 Other elements of interest 304.3 NIGERIA 31 4.3.1 Country overview 31 4.3.2 Current status of telecom market 31 4.3.3 Fund background 32 4.3.4 Current status of the fund 34 4.3.5 What the fund has achieved to date 35 4.3.6 Other elements of interest 36

Contents

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SSA USF STUDY

4.4 SOUTH AFRICA 37 4.4.1 Country overview 37 4.4.2 Current status of telecom market 37 4.4.3 Fund background 38 4.4.4 Current status of the fund 40 4.4.5 What the fund has achieved to date 434.5 UGANDA 46 4.5.1 Country overview 46 4.5.2 Current status of telecom market 46 4.5.3 Fund background 47 4.5.4 Current status of the fund 49 4.5.5 What the fund has achieved to date 49 4.5.6 Other elements of interest 514.6 ECOWAS 52 4.6.1 Universal Service/Access legal framework and scope 52 4.6.2 Funding mechanism 55 4.6.3 What has the eCOWAS Act achieved so far 55

05. bEST PRACTICES IN THE MANAGEMENT OF THE USF 56

5.1 Introduction 565.2 basic elements and characteristics of a successful USF 57 5.2.1 Sound and flexible legal and regulatory framework 57 5.2.2 Autonomy and independence 57 5.2.3 policy articulation 57 5.2.4 Consultation with stakeholders 58 5.2.5 Delineation of responsibilities between the USF and other external organisations 58 5.2.6 Defined and measurable objectives 58 5.2.7 Flexibility and neutrality in service deployment 59 5.2.8 Fair and objective project allocation process 59 5.2.9 Capacity building and sustainability 59 5.2.10 Innovation and incentives 60 5.2.11 Visibility, transparency and accountability 60 5.2.12 Digital inclusion 60

06. COMMON CHALLENGES IN THE ADMINISTRATION OF USFs IN SSA 61

6.1 Overview 616.2 Underlying legal and regulatory framework 616.3 Difficulty to adapt to changing requirements and focus 626.4 Correlation between USF levies and demand 626.5 Structural deficiencies 636.6 Definition of USF strategy and objectives 636.7 managerial, operational and capacity issues 636.8 transparency, visibility and accountability in USF reporting 646.9 Oversight and governance 646.10 project allocation process 64

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SSA USF STUDY

6.11 Constraints to broadband deployment 656.12 Underlying infrastructure and facilities 656.13 Availability of resources and knowledge 656.14 Local conditions and related security 666.15 Consideration of digital inclusion 66

07. RECOMMENDATIONS 67

08. USF OVERVIEW TAbLES 68

8.1 burkina Faso 698.2 Cameroon 708.3 Cote d’Ivoire 708.4 Democratic republic of Congo 718.5 Gabon 728.6 Ghana 728.7 Lesotho 748.8 madagascar 758.9 mali 768.10 mauritania 778.11 mauritius 788.12 mozambique 798.13 Nigeria 808.14 Niger 818.15 South Africa 828.16 rwanda 838.17 Senegal 848.18 Swaziland 858.19 tanzania 868.20 togo 878.21 Uganda 888.22 Zambia 898.23 Zimbabwe 91

09. bIbLIOGRAPHY AND REFERENCES 93

9.1 Africa 939.2 General 95

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SSA USF STUDY

executive summaryThefollowingreportexaminesUniversalServiceFunds(‘USFs’)in23Sub-SaharanAfrican(‘SSA’)countriesTheseUSFsareexaminedinaglobalcontexti.e.,takingintoaccounttheircharacteristicsandperformancewhenmeasuredagainstanadditional46USFsintheArabStates,theAmericas,EuropeandAsiaPacific(anoveralltotalof69countriesstudied).ThereportdrawsoninformationusedtoprepareglobalUSFoverviewreportsforboththeGSMAandtheInternationalTelecommunicationUnion(ITU)overthelasttwoandahalfyears.

Ingeneral,therearesignificantdeficienciesinfundstructure,managementandoperationthroughouttheSSAregion.Infact,ifitisnotpossibletodisbandthemajorityofthefundsandreturnthemoniescollected,thentheseUSFswillrequiresignificantreformandrestructuringinordertobetransformedintofunctionalandeffectiveinvestmentsupportvehiclesforunservedandunderservedareasinSSA.

ThefollowingprovidesabriefsnapshotofthecurrentstateofUSFsinSSA.AdetailedanalysisisprovidedinthesectionsthatfollowthisExecutiveSummary.

• Morethanhalfthefunds(12outof23)applyleviesof2%ormoreofoperatorrevenues.

• Theredoesnotappeartobeanycorrelationbetweentheleviescollectedandtheactualuniversalservicefundingrequirementsi.e.,noin-depthneedsassessmentsorprojectforecastsarecarriedout.

• Justoverhalfoftheinactivefundswithinthe69countriesstudiedarebasedinSSAasdepictedbelow.

01.

7

SSA USF STUDY

• InregardstoUSFprojectfundingcapabilities,thefollowingchartillustratesthetechnologiesandservicesthatcanbesupportedbyUSFs;ofparticularnoteisthatlessthan50%oftheSSAUSFsareabletofundwirelesstechnologiesandjustover25%oftheSSAUSFspermitfundingofbroadband.

13 12

46 66 77

11

INACTIVE FUNDS low ACTIVITy moDErATE ACTIVITy hIgh ACTIVITy

total Sub-Saharan Africa rest of world

18

26

22

fund activity levels

8

SSA USF STUDY

•11fundspermitthefinancingoftele-centresorcommunitycentres(theonlyareainwhichSSAisbetterpositionedthanotherregions).

• Obtainingaccuratefinancialreports(oranyreportsatall)regardingfundscollectedanddisbursedispossibleinonlyafewcountries(e.g.,Ghana,Uganda);evenincountrieswherethetelecommunicationsregulatoryenvironmentisadvancedandthefundguidelinesareclear,thereportssimplydonotgetissued:

•Onlytwofundscurrentlyhaveformalannualreportingproceduresinplace. •Someotherfundsprovideintermittentreportsonprojectallocations.

• Overalltransparencylevelsarelowtoextremelylow(e.g.,Mauritius,Sudan,Zimbabwe)withonlyafewexceptionssuchasGhanaandUgandabutwithsignificanttransparencyimprovementsexpectedinNigeriaandSouthAfrica.

• Boththetotalleviescollectedaswellasthelevelsofundisbursedfundscannotbeaccuratelyascertainedduetothislackoftimelyandtransparentreporting.

total Sub-Saharan Africa rest of world

seRvices/tecHnOlOGies suPPORted

FIxED-lINE DIAl Up INTErNET

wIrElESS broADbAND TElE-CENTrES CoNNECTIVITy oF ANChor

INSTITUTIoNS

pErSoNS wITh DISAbIlITIES

(pwD)

69

23

46

39

13

2629

11

18

6

2328

11

17

24 25

1015

8

16

29

9

SSA USF STUDY

Ascanbeseenfromtheillustrationabove,19ofthe23USFscoveredinthisreportcontainedmorethanUS$400millionwaitingtobedisbursedattheendof2011butthisislikelysignificantlyunderstatedinmostcasesduetothelackofreliablereportingandinformation.Ofthosefundsstudied,manyhavenotdisbursedanymoney.Infact,ofthoseUSFswhereleviesarecurrentlybeingappliedandcollected,itisestimatedthatonly60%ofthesesameUSFshavecarriedoutsomelevelofdisbursementorreportedthatsomedisbursementshavebeenmade.Inotherwords,morethanonethirdoftheUSFsinthisstudyhaveyettodisburseanyoftheleviescollectedandnoneofthefundswould

appeartodisburseallthattheycollect.InthemajorityofthecasesinwhichUSFleviesandtaxeshavebeenestablished,nosubstantiveanalysishasbeencarriedoutbythefundpolicymakersoradministratorsregardingtheactualservicefunding/subsidylevelsneededversustheamountscollected.Itispossible,althoughdifficulttoconfirmconcretely,thatthelackoftechnologicalflexibilityinhowthefundscanbeutilisedmaybeoneoftheunderlyingreasonsforthegenerallylargegapbetweentheleviescollectedandthetypicallyminimaldisbursements.

TheunderlyinglegalframeworksformanySSAfundswerenotwellconceived

1. excludes countries where no financial reporting whatsoever is available (e.g., Cameroon, mali, mauritania and Senegal)

total remaining funds available

estimated funds disbursed

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Sources: derivations from annual reports, reports from fund web sites, operator reports, etc.1

usf activity: funds disbuRsed and available

us$

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10

SSA USF STUDY

fromtheoutset(e.g.,nottechnology-neutralorservice-flexible,excessivelybureaucratic,insufficientoversight,etc.)andthishasresultedinahighnumberofineffectiveorinactivefundsthantheglobalmedian.Inappropriately-conceivedlegalframeworksalsoposeamajorobstacletotheintroductionofruralbroadband(whetherfixedormobile)inSSAthroughtheuseoftheUSFmechanism.

Eveninfundswherethereisadegreeofautonomyandindependence,therearemanycaseswherepoliticalinterventionorinterferencefromothergovernmentagenciesaffectthefund’sperformanceoritsabilitytofunctionatall(e.g.,Mali)resultinginextensivedelaysindecisionmaking.Atthesametime,manyUSFssufferfrom,orhavebeenaccusedof,poororineffectiveadministration/useoffunds(e.g.,SouthAfrica,NigeriaandZimbabwe)withanumberembroiledindisputesbetweenthefundadministratorsandtheoperators.

Inmanyinstances,theprogrammesandtargetsestablishedforthedeploymentoftele-centresandcommunityinformationcentres(anareainwhichSSAhasshowncommendablefocusfromapolicybutnotanexecutionperspective),forexample,havefailedtotakeintoaccountissuesrelatedtotrainingandeducation,maintenance,powersourcesandothersustainabilityconcerns.Overall,projectandfinancialreporting(transparency)formostfundsareextremelyinadequate.

OutofallthefundssurveyedwithinSSA,GhanaandUgandaappeartobethecountriesthatcometheclosesttoreflectingbestpracticeinthedevelopmentandadministrationofUSFs.Toitscredit,Nigeriahasrecognisedtheneedforamajorrestructuringandre-orientationofitsUSFandisintheprocessofeffectingmajorchanges.Inthesamevein,SouthAfricaputahalttothegrossmismanagementofitsUSFandhasalsoengagedinapositivemajoroverhaul.

Still,alternativeapproachestoachievinguniversalserviceareoftenmoreeffectivethanUSFs.Infact,increasedavailabilityoftelecommunicationsserviceshasgenerallybeenaccomplishedthroughalternatesolutions,suchastheimpositionoflicenceconditionsonoperators,theestablishmentofnewplansorfundsthatareseparatefromtheexistingUSF,orprivate/publicpartnerships(e.g.,BrazilandFinland).

Insummary,basedonthegeneralUSFapproachandperformancetodate,USFsinSSAdonotappeartobethemostappropriatemechanismforprovidinguniversalaccessandserviceandfurtheringsocialandeconomicimprovementinaproactive,costeffectiveandtransparentmanner.Considerationmustbegiventofourpossibledirectionsgoingforward:

• Wherefeasible,inthecaseofcompletelyinactivefunds,disbandinactivefundsandreturntheremainingmoniestotheoperatorswhopaidtheleviesinthefirstplace.

• Wherethepreviousoptionisnotfeasible,graduallyreducethelevycollectedforeitherinactiveorlowactivityfundsandgraduallyphaseoutthefunds.

• Majorimprovementprogrammestodealwiththecurrentdefectsinfundstructureandadministration.

• Explorationanduseofalternativemethodstoachieveuniversalservice.

Introduction and general overview

02.

2.1

WHat is a univeRsal seRvice fund (usf)

SSA USF STUDY

11

Oneoftheprincipalpolicygoalsoftelecommunicationsregulatorsandministriesistomaketelecommunicationsservicesaccessibletothewidestnumberofpeopleataffordableprices.Liberalisationoftelecommunicationmarketsandpromotionofcompetitionhavedeliveredtelecommunicationsservicestothevastmajorityoftheworld’spopulation.TheconceptofUniversalServiceistoprovideeachindividualwithtelecommunicationsservicesataffordableprices.Thisisbasicallyunderpinnedbythefollowingthreeprinciples:

availability

Thelevelofserviceisthesameforallusersintheirplaceofworkorresidence,atalltimesandwithoutgeographicaldiscrimination.

affordability

Forallusers,thepriceoftheserviceshouldnotbeafactorthatlimitsserviceaccess.

accessibility

Alltelephonesubscribersshouldbetreatedinanon-discriminatorymannerwithrespecttotheprice,serviceandqualityoftheservice,inallplaces,withoutdistinctionofrace,sex,religion,etc.

$$$ $$

12

SSA USF STUDY

UniversalService(US)isdistinctfromUniversalAccess(UA)inthatUniversalServiceisgenerallyregardedasbeingorientedtowardsprovidingservicetoindividualsorhouseholdswhereasUniversalAccessisconsideredtobeorientedtowardsprovidingservicetocommunities.

universal service costs vary substantially between countries and are influenced by many factors, including:

there are varying approaches to address universal service requirements. these include2:

Overthelasttwodecades,outoftheapproacheslistedabove,inadditiontomarketbasedreformsandmandatoryserviceobligations,theincreasinglycommonapproachtohelpachievetheuniversalservicegoalhasbeenthecreationofafundingmechanism-USFs.Thesefundsareintendedtoserveasafinancialincentiveforoperatorstoprovideuniversalservice.Suchfundsareoftenusedincompetitivemarketstosupplementmarket-basedpoliciesandinordertoaddressaccessgapsandpossiblemarketfailuresinremoteandunder-servedlocations.Globally,SSAisoneoftheregionsthathasmostenthusiasticallyembracedtheUSFconceptfromapolicyperspective(althoughnotnecessarilyfromanimplementationperspective).

2. ICt regulation toolkit Chapter 5 – Universal Access

• thedefinitionof‘universal’aswellasthe‘universal’policygoalasappliedinaparticularjurisdiction;

• thedemographicandgeographicalcharacteristicsofacountry,forexample:

•incomedistribution(affordabilitylevels) •populationdensity •ruralandurbanpopulationratios •literacyandeducationratesofthepopulation •geography(terrain,distances,etc.)

• efficiencyandpresenceofexistingoperators;and

• existinglegalandregulatoryframework(e.g.,monopoly,liberalised).

•marketbasedreforms•mandatoryserviceobligations•crosssubsidies

•accessdeficitcharges•universalfunds• privatepublicpartnerships

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SSA USF STUDY

2.2

study Objective and MetHOdOlOGy

Inlate2012,amajorglobalstudyencompassing64countrieswasconductedonbehalfoftheGSMAinordertoexaminetheperformanceandefficacyofUSFs.ThiswasfollowedbyanITUstudyof69countries,completedinmid-2013,whichfocusedonwaysinwhichtoimproveexistingfunds.ThesestudiessoughttoexaminewaysinwhichUSFshavebeencreated,thevolumeofmoniescollectedandtheextenttowhichmoneywasdisbursedandprojectsfunded.Inaddition,thestudiesalsoaddressedwhetherthecurrentstructuresofmanyUSFsareflexibleenoughtopermitatimelyandpracticalresponsetorapidtechnologicalchangeandsocietalrequirements.ThisreportattemptstoamalgamateanddistilltheinformationaddressedinthesetwoseparateglobalstudiesinordertoprovideadetailedanalysisofhowfundsareoperatinginSSAandwhetherimprovementsoranewparadigmarerequiredgoingforward.

Theprojectteamusedrawdatacollectedforthereportsreferencedintheprevioussection.Thisdatawasobtainedfromavarietyofsourcesincluding,butnotlimitedto,internetsearches,entryintospecificregulatorandUSF/UniversalServiceAccessFund(USAF)websitesanddatabasesandaccesstopublishedarticlesandreports.Theteamalsoexchangedcorrespondenceandconductedinterviewsandconferencecallswithregulators,fundadministratorsandfundassociations(withvaryingdegreesofsuccessintermsofresponseratesfromtheentitiesandindividualscontacted).Inaddition,theteamalsoreliedonitsnetworkofcontactsamongstregulators,operatorsandindustryanalyststoseekoutadditionalinformationthatisnotreadilyavailablepublicly.

Whereverpossible,thesamedatabasewasusedtopresentthesameinformationelements;howevermanydatabasesdonot

Inthemajorityofcases,USFsarefinancedthroughacontributionmechanismfromtelecommunicationsserviceproviders.TheUSFcontributionmethodologycanbeaddressedinseveraldifferentways.Insomecases,thecontributionsarefixedmonthly,quarterlyorannualfeeswhereas,inothers,thefeesarecalculatedasapercentageofgrossrevenues(oftenwithsomedefinedexclusionsinthecalculationoftherevenues).Asinthecaseofrevenuesharingschemes,theremaybearequirementfortheserviceproviderstopayestimatedamountsbasedonrevenueprojections,withretroactiveadjustmentsmadeoncetheyearendauditedannualfinancialresultsaremadeavailable.Insomecountries,theUSFfeeisnotaseparatefeebutrather,aportionofanoverallregulatoryorlicensingfee.Insuchcases,theportionofthefeetobedirectedtotheUSFmaybefixed,butinothercases,

itcouldbesubjecttoannualreview.ThefeesmaygodirectlytotheUSForUSFadministrator,orthefeesmaybecollectedbytheNationalRegulatoryAuthority(‘NRA’)andthensubsequentlytransferredtothefundmanager/administrator.

Inadditiontoaserviceprovider’sdirectorindirectcontributionmechanism,theremaybeothersourcesoffundsincluding,butnotlimitedto:fullorpartialproceedsfromspectrumauctions,licensingfees,directgovernmentcontributions,privateindustrycontributions,etc.ThemannerinwhichtheseUSFfundsmaybesubsequentlyaccessedandutilisedisaddressedwithinthisdocumentandwillbeexploredinthesectionsthatfollow.

14

SSA USF STUDY

includedataforallcountriesandinsuchcases,everyattemptwasmadetolimitthenumberofdifferentdatabasesutilisedforthespecificinformationelement(e.g.,GSMAIntelligenceandGlobalWirelessMatrixforwirelesspenetrationlevels).DatagatheringwithrespecttothefinancialperformanceofmostoftheSSAfundswasespeciallychallenginggiventhelackofreliable,publishedinformationinthisregard,coupledwithextremereticenceonthepartofmostfundadministratorstoenterintoanydetaileddiscussionsregardingfinancialreporting.

Inadditiontothechallengesofdealingwithconflictinginformation,asreferencedabove,anevenmoredifficultaspectofthereportwasthescarcityofaccurate,credibleinformationwithrespecttotheUSFfundscollected,theUSFfundsdisbursedandthemoneystillresidingintheindividualfunds.Thisisprimarilyattributabletothefactthatveryfewfundsappeartohaveanyregular,formalreportingwithrespecttothefinancialmanagementofthefund;inordertoarriveatestimatesinthisregard,inadditiontousingandcitingfundfinancialreportswhereavailable,theauthoralsousedthefollowingapproaches:

• Compilationofindividual,confidentialreportssubmittedbyoperatorsinwhichtheirannualUSFcontributionswereidentified;usingmarketsharedata,annualreports(orsimilar),estimatedotheroperators’contributionsonaconservativeproratabasis.

• “Offtherecord’discussionswithregulatorsandfundmanagers.

• SearchesofnewspaperandmagazinearticlesthatreferencedUSFamounts.

• Incaseswherethefundleviesareadefinedpercentageofoperatingrevenues,aderivationofcontributionsbasedonpubliclyreportedoperatorrevenuesifandwhennootherofficialsourcewasavailable.

• Whentheaforementionedapproachesfailedtoyieldresults,wherefeasible,theauthorhascitedpreviouslypublishedestimateswheretheestimatesappearedtobefromreliable/officialreportingsources(e.g.,ITU).

• Insomecases,noneoftheseapproachestocalculatingfundsweresuccessfulandrequestsforinformationfromthefundadministratorsremainedunanswered.

overview of UsFs

Asalludedtointheexplanationintheprevioussectionregardingthestudymethodologyutilisedinthepreparationofthisreport,theabilitytoarriveatanaccurateunderstandingofUSFsinSSA(orforthatmatter,elsewhere)isfrequentlyhamperedbytheavailabilityandreliabilityofinformation.Ontheonehand,thereisamultitudeofinformation,oftenconflictingorcontradictory,regardingtheadministrationandperformanceofsomefundswhereas,ontheother,thereisanalmostcompletelackofeasilyaccessibleinformationforotherfunds,especiallyincountrieswherepublishedinformationisavailableonlyinthenationallanguage.FurthercompoundingthesechallengesisthatmanyoftheofficiallypublishedreportsregardingUSFsreflecttheunderstandablyhumanreactionofwantingtopresentachievementsinthebestpossiblelightwhileperhapsunderstatingsomeofthelesssuccessfulaspectsoftheUSFinquestion.Therefore,inthesectionswhichfollow,theauthorhasattemptedtopresenttheinformationasconsistentlyandasobjectivelyaspossibleusingmultipleinformationsourceswiththeaimofpresentingabalancedassessmentoftheoverallstateofUSFsasoflate2012/early2013.Thiswasnotalwayspossibleandwheretheinformationisolder,thishasbeenidentified.TheUSFinformationcontainedinthissectionisasfollows.

Section3.2–FundProfilescontainsaseriesofsummarytablesintendedtohighlighttheprincipalcharacteristicsofthefundsexaminedinthisreport;thisincludes:

• asnapshot/highlevelsummaryofthefundprofiles

• typeofservicesonapercountrythatcanbesupportedbytheUSF

• descriptionofUSFleviesandhowtheyareappliedpercountry

• anexaminationonacountrybycountrybasisofthestatusoffundscollectedversusfundsdisbursed.

03.

3.1

intROductiOn

15

SSA USF STUDY

16

17

SSA USF STUDY

3.1

fund PROfiles

3.2.1 snaPsHOt Of tHe ssa funds studied

ThefollowingtabledisplaysthecurrentstatusoftheSSAfundsincludedinthestudy.Thedefinitionsforfundactivitylevelsareasfollows:

1 inactive–moniescollectedbutnoknowndisbursementshavetakenplace

2 lOW activity–lessthanfiveapplicationsofthefund

3 MOdeRate activity–betweensixand15applicationsofthefund

4 HiGH activity–morethan15applicationsofthefund

3. An anchor institution includes but is not limited to schools, colleges, universities, health centres, hospitals, post offices, sports facilities, performing arts and other cultural facilities (such as museums and libraries) and public utilities.

TOTALSUB-

SAhARANAFRICA

RESTOFThEWORLD

ToTal Number of fuNds surveyed 69 23 46

LEvELOFFUNDACTIvITy

INacTIve fuNds 18 7 11

low acTIvITy 13 6 7

moderaTe acTIvITy 12 6 6

HIgH acTIvITy 26 4 22

SERvICES/TEChNOLOGIESSUPPORTED

fIxed-lINe 69 23 46

dIal up INTerNeT 39 13 26

wIreless 29 11 18

broadbaNd 29 6 23

Tele-ceNTres 28 11 17

coNNecTIvITy of aNcHor INsTITuTIoNs3 24 8 16

persoNs wITH dIsabIlITIes (pwd) 25 10 15

ssa usf study

18

SSA USF STUDY

4 Other has many different definitions but generally refers to tele-centres, community access centres and similar concepts.

3.2.2 tyPes Of seRvices

AlthoughtherearenumerousquestionsregardingthestructureandperformanceofUSFs,oneofthemostfundamentalquestionsthatisaskedonaconsistentbasisiswhatservicescanbeaddressed/subsidisedbyUSFs?ThefollowingsummarychartdemonstratedwhysomanySSAfundsareextremelylimitedintheinvestmentsthattheyareabletoundertake.Thesehighlevelprofilesarebrokendowningreaterdetailinsection4–DeepDivesaswellasinsection8–USFCountryOverviewTables.

COUNTRy/REGION FIxED WIRELESS BROADBAND DIAL-UP

INTERNET OThER

1. burkINa faso2. camerooN3. coTe d’IvoIre4. democraTIc republIc of coNgo5. gaboN6. gHaNa7. lesoTHo8. madagascar9. malI10. maurITaNIa11. maurITIus12. mozambIque13. NIger14. NIgerIa15. souTH afrIca16. rwaNda17. seNegal18. swazIlaNd19. TaNzaNIa20. Togo21. ugaNda22. zambIa23. zImbabwe

USFALLOWSCOvERAGE/FUNDINGOF:

permitted Not permitted

19

SSA USF STUDY

3.2.3 table Of usf levies aPPlied

Thefollowingtablesummarisestheleviesastheyareappliedwithinindividualcountries.Additionaldetailisprovidedin sections4and8.

Oneofthemajorchallengesregardingtheleviescontainedinthetableaboveisthat,asfarascanbedetermined,thereisnocorrelationbetweenhowthelevywasdeterminedversusthesumsactuallyrequiredtoachieveuniversalservicegoals(ifindeedthesegoalshaveevenbeenarticulatedinthefirstplace).AlthoughsomeUSFshavepublishedbudgetsfromtimetotime,theyhavenotformedthebasisoftheleviessincethelevyamounthasbeenpre-set.

COUNTRy AMOUNTANDNATUREOFLEvy

1. burkINa faso 2%ofannualrevenuenetofinterconnectionpaymentsfromalloperators

2. camerooN 3%ofuntaxedannualturnover

3. coTe d’IvoIre 2%ofGrossAnnualRevenuesfrommobileoperatorsonly

4. democraTIc republIc of coNgo

Contributionsassessedagainstalloperators,providersofservices,andmanufacturersorimportersoftelecommunicationsmaterials;noknownassessmentstodate

5. gaboN 2%ofnetrevenueperyearfromfixedandmobileoperators

6. gHaNa Licensedoperators(fixed/mobileoperatorsandMNPCRDBserviceproviders)arerequiredtocontribute1%oftheirannualrevenue(NetrevenuemeansGrossRevenuelessvAT,NationalhealthInsuranceLevy)

7. lesoTHo 1%ofNetOperatingIncomeonannualbasis;canalsouse25%ofNRAoperatingsurplus

8. madagascar Annualcontributionsofoperatorsequalto2%ofgrossrevenuesearnedfromoperatingpublictelecommunicationsnetworksandprovisionofpublictelecommunicationsservices

9. malI 1%ofannualrevenuesfromlicensedoperators

10. maurITaNIa 3%ofgrossrevenues

11. maurITIus Eitherapercentageofturnoverorapercentageofthepriceofeveryincomingcalloneachfixedandmobileoperator’snetwork:

1).Annualcontributionpaidinmonthlyinstalmentsbyoperator-5%ofgrossrevenuegeneratedbyoperatorfromprovisionofinternationalroamingserviceforthatmonth

2).US$0.025perminuteofinternationalcallsterminatedbyoperatorinthatmonth

12. mozambIque Alllicensedandregisteredentitiesrenderingtelecommunicationspublicservicesmustcontribute1%ofnetoperatingincomeofthepreviousyear

13. NIgerIa OperatorsdonotcontributedirectlytotheUSPFbutarerequiredtopay2.5%ofnetoperatingrevenue,(AnnualOperatingLevy:AOL).TheNCC,inturn,contributes40%oftheAOLtotheUSPFforitsactivities.Basedonthe2007Regulation,thefundistobefinancedbasedon1%ofnetrevenues(netofinterconnectionpayments)ofthelicensees

14. NIger After2003:4%ofannualnet(gross)revenuefromalllicensedoperators

15. souTH afrIca CASAdeterminesthebasisofoperators’contributions,whichmaynotexceed1%oftheirannualturnover.Currently,thecontributionissetat0.2%ofannualturnover(totalrevenuefromlicensedactivity,lessserviceproviderdiscounts,agencyfees,interconnection,facilitiesleasingcharges,governmentgrantsandsubsidies)

16. rwaNda 2%ofgrossannualrevenues,netofinterconnectionpaymentsfromalloperators

17. seNegal 3%ofsales(excludingtaxes)fromallenergyandtelecomplayersplus0.15%ofturnoverfromlicensedtelecomoperators

18. swazIlaNd Contributionsfromagenerallevyonalloperators’revenue(amountnotspecified)

19. TaNzaNIa 0.3%ofyearlygrossoperatingrevenuefromallcommunicationsserviceoperators(includingISPs,postandcouriercompanies)

20. Togo 2%ofannualgrossrevenuesnetofinterconnectionpaymentsfromalloperators

21. ugaNda 1%ofgrossannualrevenuesnetofinterconnectionpayments,fromalloperators,includingthepostalservicecouriersandISPs

22. zambIa CAZhasbeenretaining10%ofitsrevenuefromannuallicensingfeeaspartofUSDF

23. zImbabwe 2%ofGrossAnnualRevenuesfromalloperators

20

SSA USF STUDY

3.2.4 fund cOllectiOn and disbuRseMent

Asdiscussedearlier,availabilityofaccurateinformationisextremelylimitedinSSAcountriesregardingthetotalfundsamountscollectedanddisbursed.Wheninformationismadeavailable,itisgenerallylatetobepublishedorsimplyoutofdate.Aswillbedemonstratedinsection7–USFOverviewTables,thereissomeavailabilityregardingthefundsutilisedonanindividualbasisbut,typically,thisispresentedintheabsenceofanycontextregardingthetotalamountoffundscollectedorspent.Inthetablebelow,whereavailable,therespectivecolumnsindicatethelastyearforwhichinformationwaspublishedregardingthetotalleviescollected.Thesubsequentcolumnsthenpresentthelastyearinwhichafundbalancewasreportedfollowedbyanyreporteddisbursements.Thefinalcolumnreflectsestimatesofthelevelsremainingintheindividualfundsoncethemonieshavebeendisbursed.Itisextremelyimportanttoreiteratethattheseareestimatesbasedonthebestavailableinformationcalculatedusingthevarioussourcesexplainedpreviouslyinsection2.disbursements.Thefinalcolumnreflectsestimatesofthelevelsremainingintheindividualfundsoncethemonieshavebeendisbursed.Itisextremelyimportanttoreiteratethattheseareestimatesbasedonthebestavailableinformation calculatedusingthevarioussourcesexplainedpreviouslyinsection2.

COUNTRy/REGION

LASTyEARCONTRIBUTIONREPORTED/ESTIMATED

CONTRIBUTIONAMOUNTIN(US$M)

LASTyEARFUNDBALANCEREPORTED/ESTIMATED

REPORTEDFUNDBALANCEAMOUNTIN(US$M)

REPORTEDMONEyDISBURSEDIN(US$M)

ESTIMATEDREMAININGFUNDSAvAILABLE(US$M)yE2010/2011

1. burkINa faso 2010 5.30 2010 32.70 0.00 32.70

2. camerooN3. coTe d’IvoIre 2010 30.00 2010 28.10 15.60 12.50

4. democraTIc republIc of coNgo

2008 19.10 2008 63.20 0.00 63.20

5. gaboN 2009 2.50 2009 2.50 0.00 2.50

6. gHaNa 2011 8.10 2011 10.50 10.50

7. lesoTHo 2011 1.00 2011 0.61 0.61

8. madagascar 2011 4.20 2011 10.00 10.00

9. malI10. maurITaNIa11. maurITIus 2011 2.70 2009 1.70 1.70

12. mozambIque 2008 1.90 2009 3.00 3.00

13. NIger 2011 8.70 2011 28.00 0.00 28.00

14. NIgerIa 2008 159.70 2010 266.77 106.70 160.00

15. souTH afrIca 2011 28.80 2011 28.80 28.80

16. rwaNda 2008 2.40 2010 6.60 3.70 2.90

17. seNegal18. swazIlaNd 2008 2.40 2008 6.00 4.25 1.76

19. TaNzaNIa 2010 2010 3.00 0.00 3.00

20. Togo 2011 1.20 2011 5.10 0.00 5.10

21. ugaNda 2011 3.50 2011 47.00 40.00 7.00

22. zambIa 2009 12.00 0.00 12.00

23. zImbabwe 2009 3.20 2010 20.00 20.00

regIoNal ToTal 284.70 575.51 170.25 405.26

SSA USF STUDY

21

General assessment6:Primarilymicrowaveradiorelay;wirelesslocalloophasalsobeeninstalled;theoutdatedandgenerallyunreliablefixed-lineinfrastructureisheavilyconcentratedinAccra.

domestic telecommunications:Competitionamongmobile-cellularprovidershasspurredgrowthwithasubscribershipofmorethan80%andrising.

• Approximately285,000fixed-lines(2012)7

Mobile (cellular) communications:• 25.618millionsubscribers8(yE2012)• Wirelesspenetration:105.8%(yE2013)9

• Mainoperators10: • Scancom(MTN)–54.2% • Airtel(formerlyZain/Celtel,Westel)

–15.8% • vodafone(GhanaTelecom)–15.0% • Tigo(Millicom)–12.0% •Globacom(Glo)–2.5% •Expresso–0.5%

04.

5. CIA World Factbook 20146. CIA World Factbook 20147. Id.8. Id.9. GSmA Intelligence10. buddeComm – Ghana – Key Statistics, regulatory and Fixed-Line telecoms – Overview.

4.1.2 cuRRent status Of telecOM MaRket

4.1.1 cOuntRy OveRvieW

Ghanahasalandmassofapproximately238,533sq.km.andislocatedinWesternAfrica,borderingtheGulfofGuinea,betweenCoted’IvoireandTogo.

Ghanaconsistsmostlyoflowplainswithadissectedplateauinthesouth-centralarea.Its25.2millioninhabitantsare51.9%urbanwithmanyresidinginthetwomajorcities:Accra(capital)–2.3millionandKumasi–1.8million.

22

ghANA’S gDp pEr CApITA (ppp) IS

US$3,500 (2013 ESTImATE).5$accRa

kuMasi

tOGO

benin

cÔte d’ivOiRe

Gulf Of Guinea

buRkinO fasO

4.1

GHana

SSA USF STUDY

Deep dive analysis

23

SSA USF STUDY

11. CIA World Factbook 201412. http://www.budde.com.au/research/Ghana-telecoms-mobile-broadband-and-Forecasts.html

Ghanahasoneofthemorecompetitivetelecommarketsintheregion.Thecountrywasamongthefirsttoprivatisetheincumbentoperator,andwasapioneerindevelopingmobiletelephonyanddataservices.Itwasalsoamongthefirstonthecontinenttoconnecttotheinternet.Althoughfixed-lineinfrastructurerequiresconsiderableinvestment,thedynamicmobilemarkethasensuredthatinternetpenetrationisrelativelyhigh.

Thegovernmenthasmadesteadyprogressinrecentyearstodevelopcomputerliteracyandtoextendinternetavailabilitythroughanetworkofpublicaccesspoints.Lowuserpenetrationintheearlypartofthecenturywaslargelyduetothehighcostofservices,exacerbatedbyunreliablenetworksandpoorqualityofservice.however,inrecentyears,internationalconnectivityhasincreaseddramatically:afifthsubmarinecablewhichenteredintoserviceearlierin2013hashelpedreducethecostofbandwidthtoatenthofwhatitwasin2007.Lowerpricinghasfiltereddowntoconsumers,withGhanaTelecombeingoneofseveraloperatorsthathaveinvestedinnationalnetworkstoextendbroadbandavailabilitydeeperintoruralareas12.

Themobilemarketiswellservedbysixcompetingplayers.ServicesbasedonhSPAtechnologyhavehelpedtoextendbroadbandavailability.Thishasimprovedthegrowthpotentialofm-commerceand

m-bankingservices.MTNGhana’sMobileMoneyserviceisverypopular,complementedbyitsnew‘ATMCashOut’service.ThelaunchofMobileNumberPortabilityinmid-2011hasalsobeenacatalystforcompetitionbetweenplayers,withthenumberofportingbymid-2013havingincreased21%year-on-year.Thetimetakentoportanumberremainsveryfastbyinternationalstandards.

4.1.3 fund backGROund

InMarch2003,theGovernmentcompletedtheformulationofacomprehensivenationalICTPolicyreferredtoastheGhanaInformationandCommunicationTechnologyforAcceleratedDevelopment(ICT4AD).Thisroadmapwasdevelopedtoenrichsignificantlytheeconomicandculturalwell-beingofthepopulacethroughtherapiddevelopmentandmodernisationofthecountryusinginformationandcommunicationstechnologiesasthemainengineforeconomicandsocialdevelopment.Underthispolicy,theGhanaInvestmentFundforTelecommunications(GIFTEL)wassetupasanagencyoftheMinistryofCommunicationstofacilitatetheprovisionofconnectivityandinfrastructuretotheCommunityInformationCentres(‘CICs’)thathavebeenconstructedatunderserved/unservedandremoteareas.GIFTELwasalsoassignedtoprovidetrainingtoallpersonalandorganisationsinchargeofmanagingtheCICs.TheElectronicCommunicationsAct775

USErS: 1.297m

(2009)hoSTS:

59,086 (2012)

internet11:

24

SSA USF STUDY

of2008,establishedtheGhanaInvestmentFundforElectronicCommunications–GIFEC-anindependentagencyoftheMinistryofCommunicationsinchargeofmanagingtheFund.GIFECismanagedbyaSecretariatunderthedirectionoftheAdministratoroftheFund(ChiefExecutive)anditoverseestheimplementationoftheFund’sprojects.Licensedoperators(fixed/mobileoperators,andrecentlylicensedMNPCRDBserviceprovider)contributeonepercent(1%)oftheirannualrevenue.(NetrevenueiscalculatedusinggrossrevenuelessvAT,nationalhealthinsurancelevy,communicationsservicetaxandinterconnectcharges).

OtherapprovedsourcesofGIFECfundinginclude:

• MoniesprovidedbyParliament.• MoniesthatmayaccruetotheFundfrom

investmentmadebytheTrusteesoftheFund.• Donations,grantsandgifts.• Anyothermoniesthatmaybecome

lawfullypayabletotheFund.

4.1.4 cuRRent status Of tHe fund

Asstatedabove,GIFTELwassetuptofacilitatetheprovisionofuniversalaccesstobasictelephonytotheunservedandunderservedcommunities.ProjectsthataresubsidisedthroughGIFECareprioritisedusingthefollowingcriteria:

• Provisionofbasictelephonyservicetoruralareas.

• Supportfortheestablishmentofaccesstovalue-addedservicesincludingtheintroductionofInternetPoints-of-Presence(PoPs)ineverydistrict.

GIFECwidenedthescopeofitsmandatetoincludetheprovisionofaccesstoelectronicservicesincludingICT,broadcasting,internet,multimediaserviceandbasictelephony,fortheunservedandunderservedcommunities.

Disbursementmainlytakestheformofnon-commercial,butcompetitive,grantsasfollows:

• Forpublictelephonyprojects,internetPoint-of-Presenceandtrainingcontractsbyopentender.

• Forapplicationsinunderserved/unservedruralareasorwheresupportissoughtforruralsolutionstoenhanceaccesstoservicesforpublictelephonykiosksortele-centres(atamountsbelowacertainUS$),bydirectdisbursementbasedonabusinessplandemonstratingfinancialviabilityorself-sustainability.

Infrastructuresubsidiesaretypicallyprovidedtothefirstentrantinanareaandthennewentrantssharethemast.

Theboardevaluatesproposalsfortheirtechnicalandfinancialviability.Criteriaforselectingtownsandvillagesfortheprojectdependonlocation,populationandsocio-economiccharacteristicse.g.,numberofschools,healthservices,economicactivities,telecommunicationssignalavailabilityandgeographicobstacles.

TenderingisconductedthroughtheNationalCompetitiveTenderingproceduresspecifiedinthePublicProcurementActoftheRepublicofGhana.AnycompanythatimplementsprojectstoprovideICTfacilitiestounderservedareasiseligibletoparticipate.

TheFundisgovernedthroughaBoardofTrustees:10trusteesthatincluderepresentativesfromtheNationalCommunicationsAuthority(NCA),theMinistryofCommunications,theparliamentaryselectcommitteeoncommunications,arepresentativefromeachlicensedtelecomoperatorandtheadministratorofthefund.TheMinistermaydirecttheTrusteesoftheGIFEConmattersofpolicy.

25

SSA USF STUDY

4.1.5 WHat tHe fund Has acHieved tO date

Bywayofexample,GIFEChasoverseenthefollowinginitiatives:

• CommonTelecommunicationFacilityProject:Commenced2006:Constructionoftowersforco-locationbytelecomoperatorstoextendtelecomservicestounderservedareas.41towerswereconstructed.

• LastMileInitiativeProject:Commenced2006,incollaborationwithUSAID/Ghana,pineappleandcitrusproducingareasaretargetedandprovidedwithaccesstotelecommunications/ICTservices.OnepilotprojecthasbeencompletedatNsaakyeintheEasternRegion.AsecondprojectwascompletedatGeorgefieldsintheCentralRegion.Thisisalsotobeextendedtocotton,mango,andriceproducingareas.

• CICProject:GIFEChasbeenimplementingthisonbehalfoftheMinistryofCommunications.Thisentailsestablishinghybrid,for-profittele-centresandnon-profitcommunityresourcecentrestargetingthegeneralcommunitymembers,schoolchildren,outofschoolyouth,womenandwomen’sgroups,privatebusinesses,non-governmentalorganisationsandlocalgovernmentauthorities.By2010,120CICswereatvariousstagesofcompletionin100districts/municipalities.Underacost-sharingagreementbetweentheMinistryofCommunicationandtheUnitedNationsDevelopmentProgramme,79CICshavebeenequippedwithICTequipment,networkinfrastructureandtrainedcentremanagers.

Theremaining70districts/municipalitiesweretohaveatleastoneCICasenvisionedinGIFEC’sstrategicplanfor2010-2012.

• LibraryConnectivityProject:EstablishmentofICT-basedMobileDigital-cottages(MD-Cs)andRegionalDigitalLibraryInformationCentres(RDLICs)inordertopromoteandfacilitateaccess.

• RuralPayPhoneProject:GIFECwastoprovide12,000ruralpayphonestounderservedcommunitiesduringthethreeyearperiod2010-2012(theEQUATELproject)–nofurtherupdatepublishedatthistime.

• EasyBusinessConnectivityProject:Toenhanceavailabilityofseedfinancingonflexibleandreasonabletermsforentrepreneursseekingtooperatee-powerede-businesscentres.

• PostOfficeConnectivityProject:ToselecttenpostofficeswiththerequisitephysicalinfrastructuretoenablethedeliveryofbasicInformationTechnologyandtelecommunicationsservicesinthepilotphase,followedbyseventyPostOfficesfortheSecondPhase(2011-2012).

• DisabilityEmploymentProject:ImplementedbyGIFECandNCPDaretheEasyBusinessCentresforPersonswithDisabilities.

• SecurityConnectivityProject:toestablishastateoftheartICTtrainingcentreatthePrisonsTrainingSchool.

• SchoolConnectivityProject:providingeducationalinstitutionswithhighspeedcomputers,printers,scanners,projectorsandserversandlinkingthemwithinternetaccess.Theprojectstartedonapilotbasisin2008.In2009,GIFECprovidedsupportto50schools.By2010,GIFEChadsupported263educationalandtraininginstitutions.TheplanwastoprovideICTequipmentandconnectivityto200educational,vocationalandtraininginstitutionsinthe2010-2012period.

26

SSA USF STUDY

• CommunityInitiativeProject:ToestablishstateoftheartICTtrainingcentresforruralcommunitiesacrossthecountryandprovidetrainingincomputerskillsandliteracy.

• FishingProject:IncollaborationwiththeFisheriesCommissionandtheNationalCanoeFishermenCouncil,tointroduceenhancedfishingtechniquesusingstate-of-the-arttechnologytoaddressthefishingneedsoftheartisanfishermen–wastoberolledoutin2012.

• ICTCapacityBuilding:2010-2012,GIFECplannedtofundtheprovisionofbasicICTtrainingtoover12,000peopleintheunderservedandunservedcommunitiesusingtheCICfacilities.

GIFECiscollaboratingwithallthemajortelecommunicationsoperatorsintheprovisionofCommonTelecommunicationsSiteFacilitiesinselectedareasacrossthecountryundertheUniversalAccesstoTelecommunicationsProgramme(UATP).ThecollaborationinvolvestheawardofsubsidiestowillingandeligibletelecommunicationsoperatorsfortheprovisionofCommonTelecommunicationsSiteFacilities.

Inarecentpressrelease(2014),theCEOofGIFECstatedthatasthefundhasprovidedfullyequippedandfurnishedICTlaboratoriesto38collegesofeducation,27technicalschools,10nationalyouthdevelopmentinstitutes,37nationalvocationaltrainingcentres,25communitydevelopmentschools,62nursingtrainingschools,293seniorhighand10juniorhighschoolsaswellasthreeopportunityindustrialisationcentresandeightfarminstitutes.Inaddition,avarietyoftelecommunicationsandICTequipmentwasprovided,amongstothers,tothePostOffice,theArmedForces,theGhanaPoliceandtheGhanaPrisonSystem.

MatOla

MaPutO

tanzania

zaMbia

ziMbabWe

sOutH afRica

sWaz.

MalaWi

General assessment14:Afairtelecommunicationssystemthatisshackledwithaheavystatepresence,lackofcompetitionandhighoperatingcostsandcharges.

domestic telecommunications15:Ischaracterisedby:stagnationinthefixed-linenetworkcontrastswithrapidgrowthinthemobile-cellularnetwork;mobile-cellularcoveragenowincludesallthemaincitiesandkeyroads,includingthosefromMaputototheSouthAfricanandSwazilandborders,thenationalhighwaythroughGazaandInhambaneprovinces,theBeiracorridor,andfrom

NampulatoNacala;extremelylowfixed-lineteledensity;despitesignificantgrowthinmobile-cellularservices,tele-densityremainslowatabout35per100persons.

• Approximately88,100fixed-lines(2012)16

• State-ownedTDMcontinuestobethesoleprovideroffixed-lineservices

Mobile(cellular)communications:• 8.1Msubscribers17(yE2012)• Wirelessmarketpenetration

(yE2013):48.4%18

4.2

MOzaMbique

13. CIA World Factbook 2014 14. Id.15. Id.16. Id.17. Id.18. GSmA Intelligence

27

SSA USF STUDY


MozambiqueislocatedinSouthEastAfricaandisborderedbyMalawi,SouthAfrica,Swaziland,Tanzania,ZambiaandZimbabwe.Itsterrainispredominatelycoastallowlandwithuplandsinthecentre,highplateausinthenorthwestandmountainsinthewest.Mozambiquespansalmost800,000sq.km.andhasapopulationofover23millionwiththeurbanpopulationmakinguponlyabout38%ofthetotalpopulation.Thereareover1.5millionpeoplelivinginthecapitalcityofMaputoandover700,000inMatola.


mozAmbIqUES’S gDp pEr CApITA (ppp) IS

US$1,200 (2013 ESTImATE).13$

28

SSA USF STUDY

ThreeMainOperators: •MCel,thestate-ownedfirstprovider

ofmobileservicesinthecountry,hadapproximately43.5%marketshareasofyE2013.

•vodacom,85%ownedbyvodacomSouthAfricaandoperatingsince2002,hadapproximately32.6%marketshareasofyE2013.

•Movitel,ownedbyaconsortiummadeupofviettelTelecom(vietnam)andMozambique’sSPI,wasawardedalicenceinNovember2010andasofyE2013had24%marketshare.

internet19:

Priortotheliberalisationofthetelecommunicationsindustry,MozambiquewasunderPortugueseruleandthePortuguesestate-ownedmonopoly,Correios,TelegrafoseTelefones(CTT)wasthesoleprovideroftelecommunicationsinthecountry.InJune1981,theCTTwasdissolvedandTelecomunicaçõesdeMoçambiqueE.E.(TDM)wascreated,becomingthesoleproviderofservicesinthecountry.In1992,

theindependentregulator,InstitutoNacionaldasCommunicacoesdeMozambique(INCM),wascreatedandTDMalsobecameapubliccompany.Thesecondmobilelicencewasawardedtovodacomin2002.TheTelecommunicationsLawof2004attemptedfurtherliberalisationbyintroducingacompetitiveregulatoryregime.

AlthoughMozambiqueisoneofthehighestgrowthpotentialtelecommarketsinAfrica,penetrationratesremainrelativelylowandthemainreasonforthisisthatproperinfrastructurehasnotbeenputinplace.Furthermore,themajorityofpopulationislowincomeandcloseto50%ofthepopulationareilliterate.


TheTelecommunicationLawNo.8of21July2004,whichwasbasedonthe2004TelecommunicationsPolicy,laidthegroundfortheregulationofuniversalserviceandtheestablishmentofaUSF.ThefundwasadministrativelyestablishedbyDecreeNo.69ofDecember262006,whichsetoutdetailsoftheregulationoftheUniversalAccessandServiceFund.ThecollectionoffundsdidnotcommenceuntilaMinisterialDiploma79/2007of4July2007fixedtheannualcontributiontobepaidbythetelecomoperatorstotheUSAF.Thefundstartedtocollectcontributionsin2008.

TheUniversalAccessServiceFund,FundodoServiçodeAcessoUniversal(fsau, uasf) isaseparateinternalunitandaccountunderthenationalregulator,InstitutoNacionaldasComunicaçõesdeMoçambique(INCM)andismanagedbytheExecutiveSecretaryoftheUASFInternalUnit.TheExecutiveSecretaryoftheUASFreportsdirectlytotheBoardofDirectorsofINCMandworksincoordinationwithotherdepartmentswithintheRegulator.TheBoardofINCMoverseestheactivitiesanddecisionsoftheUSAF.

USErS: 613,600m

(2009)

hoSTS:89,737 (2012)

19. CIA World Factbook 2014

29

SSA USF STUDY

Alllicensedandregisteredentitiesprovidingpublictelecommunicationsservicesmustcontribute1%oftheirpreviousyear’snetoperatingincometotheUASF.OperatorswhooperateinternetcafesareexemptfromcontributiontotheUASF.Othersourcesoffinancingcanincludegovernmentcontributionsandgrantsfromdevelopmentpartners(internationaldonors).

Thefund’sobjectivesaretopromoteinvestmentintheprovisionofserviceinruralareasatafairandaffordableprice.Theshort-termtargetsfortelephonyaretoenabletheestablishmentofapubliclyaccessibletelephonewithinalllocaleswithmorethan1,000inhabitantsaswellaswithinfivekilometresofeveryruralinhabitant.Theshort-termtargetsforinternetservicesaretoextendinternetpointsofpresenceandpublicaccesstotheinternetthroughtele-centrestoallDistrictCentres.Theservicesinfocusare:

• Providingtelephonyandinternetservices• Publicandprivateinternetaccess

andservice• Infrastructuredeploymentand

serviceprovision

hospitalsandschoolslocatedinruralareascanalsobenefitfromthefund.

Tendersareawardedthroughacompetitivebidbasedontheleastsubsidyrequestedfromqualifiedbidders.ProjectsareselectedandspecifiedbytheUSAF/INCM.Operatorsdonotparticipateinthedecision-makingprocessnordotheyhaveanysignificantinfluenceoverthespecificationsoftheprojects.


Thefundismoderatelyactive.Itbeganitsoperationonlyrelativelyrecently,in2008,andhasbeenslowintermsofactivityandtake-up.Sofar,ithasnotbeenabletoachieveoperationsofscaleinextendingvoiceandInternetcoverage,whichispartlyduetotherealityofthelimitedcompetition

inthetelecommunicationsmarket,withonlytwoactivelargeplayersupto2011.InOctober2012,afterconsiderableinactivity,thefundannouncedtheallocationofanewproject:theprovisionofserviceto50localesinthreelots:North,CentralandSouthZonesbutnoawarddetailhasbeenprovidedtodate.

InMarch2014,itwasannouncedthatFSAUplansfor2014hadbeenapproved.Thisplanincludesimplementationoftelecomservicesaswellastrainingin62townsintheprovincesofMaputo,Gaza,Inhambane,Sofala,Manica,Tete,Zambézia,Nampula,NiassaandCaboDelgado.Noadditionaldetailhasbeenprovidedatthisstage.

TheestimatedamountheldintheaccountwasUS$3millionin2009.Noadditionalinformationregardingthecollectionanddisbursementoffundshasbeenreportedpubliclysincethattime.


TheUniversalAccessprogrammebeganwithtwopilotprojects:

• Atelephonypilotprojecttoextendtransmission,accessnetworksandUAservicestoonezoneofthecountry,coveringfivedistrictsintheprovinceofZambéziaandthreedistrictsintheprovinceofNampula.

• AninternetservicepilotprojecttoprovideanadvancedlevelofservicetofourDistrictCentresintheprovincesofZambéziaandNampulathroughtheprovisionofInternetPOPs,withaminimumserviceradiusof5km.fromtheDistrictCentre.

AbiddingprocessfortheUApilotprojectswaslaunchedinFebruary2007.Thetelephonytenderdidnotreceiveanybidsandwasthereforeunsuccessful.TheInternettenderwaswonbytheMozambicanbroadbandwirelessoperatorINTRALda.

30

SSA USF STUDY

US$200,000wasdisbursedin2008foraprojectentailingthetransmissionofmobiletelephonyviasatellite,covering5kmfromthecentreoftheMatchedjedistrictinthenorthofthecountryontheTanzanianborder.

Bytheendof2009,grantsfromtheWorldBankconstituted13%oftheoverallfinancingofthefund.TheWorldBankhasfinancedcertaintele-centrespilotprojectsandoneCommunityPublicInternetAccessPointproject(PublicandprivateInternetaccessandservice).

MCelwonatenderinJune2011tobuildBTSsitesin14locales,inaprojectworthapproximatelyUS$4million.MCelhadninemonthstobuildthesites.

4.2.6 OtHeR eleMents Of inteRest

Thelackofdynamiccompetitioninthecountry’stelecommunicationsmarket,whichisstilldominatedbythestate-ownedTDManditssubsidiaryMCel,combinedwithMozambique’schallenginggeography,with62%ofitspopulationsituatedinrural,andoftenremote,poorareas,isnotconducivetoarapidincreaseinvoicetelephonyorInternetcoverage,despitethesubsidiesgraduallybeingofferedthroughtheUniversalAccessServiceFund.

General assessment:Furtherexpansionandmodernisationofthefixed-linetelephonenetworkisneeded;networkqualityremainsaproblem.

domestic telecommunications is as follows21:Theadditionofasecondfixed-lineproviderin2002resultedinfastergrowthbutsubscribershipremainsonlyabout1per100persons;mobile-cellularservicesgrowingrapidly,inpartrespondingtotheshortcomingsofthefixed-linenetwork;multiplecellularprovidersoperatenationallywithsubscribershipapproaching60per100personsin2010.

• Approximately0.4Mfixed-lines(2012)22

• Wirelinemarketpenetration23(yE2012):0.5%• Mainfixed-lineoperators:Nitel(bankrupt)

andGlobacom

Mobile (cellular) communications:

• 112.8Msubscribers24(yE2012)• WirelessmarketpenetrationyE2013:75%25

• 4MainOperatorsand4smalleroperators26: •MTNwithapproximately44%market

share •GloMobile,ownedbyGlobacom,

withapproximately20%marketshare • Airtel,ownedbyBhartiAirtel,with

approximately20%marketshare •Etisalat,ownedbyEtisalatandMubadala,

withapproximately13%marketshare •Others’totalmarketshare–3%

20. CIA World Factbook 201421. Id.22. Id23. Global Wireless matrix 1Q201224. Id.25. Id.26. Id

31


NigeriahasoneofthelargestpopulationsinAfrica.ItislocatedinWesternAfrica,borderingBenin,Cameron,ChadandNigerwith853kilometresofcoastlineontheGulfofGuinea.Nigeriaconsistsofavariedterrainwithsouthernlowlands,centralhillsandplateaus,mountainsinthesoutheastandplainsinthenorth.ThepopulationofNigeriaisestimatedtobemorethan177million,makingittheseventhmostpopulouscountryintheworld.Approximately50%ofthepopulationisurban,withthe50%ruralpopulationoftensituatedinremoteareas.Nigeria’smostpopulatedcitiesare:Lagos-10.2million;Kano-3.3million,Ibadan-2.8million;Abuja,thecapital-1.9million;andKaduna-1.5million.

4.3

niGeRia


niGeR

caMeROOn

cHad

benin

Mali

abuja

kaduna

kanO

laGOs

ibadan

Gulf Of Guinea

NIgErIA’S gDp pEr CApITA (ppp) IS

US$2,800 (2013 ESTImATE).20$

SSA USF STUDY

32

SSA USF STUDY

internet27:

Inthepast10years,therehasbeenasurgeinInternetusageandwhere,in2000,usagewasat0.1%;by2011thiswasestimatedtobeatleast44%28.Dataserviceshavealsowitnessedstronggrowthoverthepast10years,Internetusersasapercentageofpopulationhavegrownfrom0.3%in2002to28%in2011.however,Internetpenetrationat28%isstillrelativelylowandthegrowthofthesectorisstilldependentoninvestmentoninfrastructure.29

Nigeriastartedliberalisationofitstelecommunicationsmarketin1992andistodayoneofthemostopentelecommunicationsmarketsinAfrica.TheNigerianCommunicationsCommission(NCC)wasestablishedin1992astheindependentregulatorybodyfortheNigeriantelecommunicationsindustry.Thetelecommunicationspolicywasputintoplayin2000,acceleratingasweepingliberalisationthathasledtohundredsofcompaniesprovidingvirtuallyallkindsoftelecomandvalue-addedservices.

Nigeriahasbeendominatedbytheincumbentstate-ownedoperatorNitel,whichhasnotyetbeenprivatisedinspiteofthreeattemptsinthepast(likelyduetoitsperilousfinancialstate).Theadditionofasecondfixed-lineprovider,Globacom,in2002resultedinfasterfixed-linegrowthbutsubscribershipremainsatonlyabout1%.Today,thereareapproximately80otherfixedlicenseesprovidingservices,mainlythroughfixedwirelessconnections.Further

expansionandmodernisationofthefixed-linetelephonenetworkisneededasnetworkqualityremainsasignificantproblem.

Althoughmobile-cellularserviceshavebeengrowingrapidly,therelativelyhighpenetrationisasaresultofmultipleSIMownership.ThegrowthhassloweddownsomewhatfollowingthemandatorySIMcardregistrationin2011.


TheNigerianCommunicationsActof2003addressestheconceptofuniversalaccessanduniversalservice;providesguidancetotheNigerianCommunicationsCommission(NCC)onthedevelopmentofuniversalaccess/servicepolicies;anddirectstheestablishmentofaUniversalServiceProvisionFund.TheNigerianUniversalServiceProvisionFund(USPF)wasestablishedin2007,asaseparateentityinaccordancewiththe2007UniversalServiceandUniversalAccessRegulations.ThefundismanagedbytheSecretaryoftheUSPF.

The2007RegulationsalsoestablishedaUSPBoard(ChairedbytheMinisterwithrepresentationfromtheNCC)tosuperviseandprovidebroadpolicydirectionforthemanagementoftheUSPFaswellastoaidtheUSPFundmanagers.IthastheauthoritytoappointandremovetheUSPFundmanagersandauditorsinconsultationwiththeNCC.TheBoardisentrustedwith

27. CIA World Factbook 201428. Insights to the African telecom market 2011: Analysis, Forecasts and Commentary, by telecomsmarketresearch.com, in association with buddecomm, August 201129. Universal Service provision Fund – Strategic management plan (2013-2017) June 2012)

USErS: 44.0m

(2009)

hoSTS:1,234 (2012)

33

SSA USF STUDY

approvingstandingorderstoestablishandregulateactivitiesoftheUSPfundmanagers,aswellasapproveallprocesses,procedures,guidelinesanddecisionsnecessarytoimplementtheregulations.TheUSPfundmanagersreportonaquarterlybasistotheUSPBoardandtheUSPSecretariatonthestatusofthefund,includingareportdetailingthefinancialsituationandperformanceofthefund.

TheNCCplaysthefollowingrolesinrelationtotheUSPF:

• Considers,designsanddeterminesasystemwhichshallpromotethewidespreadavailabilityandusageofnetworkservicesandservicestounservedandunderservedpartsofthecountry.

• IsrepresentedontheUSPFBoard(USPFSecretariatislocatedwithinthepremisesoftheNCCheadOfficeinAbuja)andisconsultedontheappointmentofUSPFmanagers.

• SupportstheFundonstaffing.

• EnsuresthattheUSPFisatalltimestotallyseparatedfromtheCommission’sFundandtransparentlymaintained.

• Developsregulationsregardingcontributionsbylicensees,undertheNCA,2003,totheUSPFandanyothermattersrelatedorincidentaltotheUniversalServiceProvisionandtheestablishmentandoperationoftheUSPF.

BoththeActandtheRegulationsprovidethattheUSPFundshallbeauditedeachfinancialyear.TheActprovidesthatindependentauditorsshallbeappointedbytheBoardandthattheauditor’sreportshallbepresentedtotheNationalAssemblyandpublished.TheUSPBoardisrequiredtoprepareandsubmitanannualreporttotheNationalAssembly,throughthePresident,nolaterthansixmonthsaftertheendofeachfinancialyear.Inaddition,theUSPFundmust

maintainawebsiteandincludepostingoftheFund’squarterlyreports,theUSPBoardannualreportsandprojectsunderway.

BeforethecreationoftheUSPFin2007,anAnnualOperatingLevy(AOL),requiredbylicenceconditions,hadbeencollectedbytheNCC.Basedonthe2007Regulation,theNCCmakesfinancialcontributionstotheUSPFbasedonaportionoftheAOLpaidtotheCommissionbylicensees.OperatorscontinuetosubmitanAOLof2.5%ofnetoperatingrevenuestotheNCConaquarterlybasis.TheNCC,inturn,contributes40%oftheAOLtotheUSPFforitsactivities.The2007RegulationsprovidethattheinitialamountoftheUSPContributionsshallbeequaltoonepercentofnetrevenuesofthelicenseesfromwhichtheNCCcollectsannuallevies(thisiscurrentlythe40%ofthe2.5%AOL).NCChasthediscretiontoincreaseordecreasethecontributiontotheUSPFuponconsiderationoftheUSPFoperatingexpensesandbasedonrecommendationsmadebyUSPF.

TheUSPFisalsosupposedtobefundedfromothersources:

• SuchmoniesasmaybespecificallyappropriatedtotheUSPFfromtimetotimebytheNationalAssembly.

• Gifts,loansaidsandsuchotherassetsthatmayfromtimetotimespecificallyaccruetotheUSPF.

however,sectorcontributionshavemadeupmostoftheFund’scontributions.Theobjectiveofthe2003CommunicationsActistoencouragetheinstallationofnetworkfacilitiesandtheprovisionofnetworkservicesandapplicationstoinstitutionsinunservedandunderservedareasorforunderservedgroups.TheSecretariatdeterminesiftheUSPFundistobeusedtofinancethemaintenanceofexistingservicesandnetworkfacilitiesforareasoronlytheprovisionofnewnetworksandservices.

34

SSA USF STUDY

Accordingtothe2007Regulations,theprioritiesoftheFundaretoprovidefinancialsupportforensuringuniversalaccessanduniversalservicetospecificareasdefinedasfollows:

• Unservedareas,whicharegeographicareaswherethereisnolevelofaccesscurrentlyavailable.

• Underservedareas,whicharegeographicareaswheresomelevelofaccessmaycurrentlybeavailable,butnotacrosstheentireregionalsegment.

• Underservedgroupswithinacommunity,whichreferstoadesignatedpopulationsegmentthatsharesacommonsetofcharacteristicsand,unliketherestofthecommunity,doesnothaveuniversalaccess.

UniversalServicecoversthefollowingservices:

• Individualmobile-cellularservice• Publicmobilepayphoneservice• Broadband• Tele-centres• Schools(primary,secondary

post-secondary)• healthcentres• Emergencyservices• Specialservicesforpersonswith

disabilitiesandelderpersons• Communitycentres• Governmentoffices

TheUSPSecretariatisrequiredtoundertakeananalysistodetermineformallywherefundmoneyshouldbedirectedand,specifically,theservicescopetobeapplied.

Intheallocationprocess,theUSPFshallusecompetitiveselectionprocesses,whichmayincludeminimumsubsidyauctionsorsuchotherprocessesdesignedbytheUSPSecretariatinaccordancewiththeRegulations.TheUSPFhasusedthefollowingmethods:

• Competitive,combinationqualityandcostselection.

• Competitive,leastsubsidyrequestedfromqualifiedbidders.

• ProposalbyeligiblecandidatesandevaluationbytheUSPF.

TheindustryisinvitedtoparticipateintheconsultationprocessontheRFI/RFPbutthefinaldecisiononprojectsismadebytheUSPFboardontheadviceoftheNCC.


TheUSPFisoperationalandactive.Previously,thefundhasfourprogrammes,namelytheUniversalAccessProgramme,UniversalCoverageProgramme,UniversalServiceProgrammeandICTforDevelopmentProgramme.Thelatterincludedissuessuchasapplications,content,softwareandtraining,unliketheUniversalAccessandServiceProgrammes,whichdealprimarilywithfundingofservicesandnetworks.

Until2011,themainfocusofthefundhadbeenonBTSprojectscoveringunservedandunderservedareas,providingupto25%subsidiesfortowerbuilding.

Thelatestpublishedbids(publishedontheUSPFwebsiteon26September2011)included:

• ProvisionofBackboneTransmissionInfrastructure(BTRAIN)Project

• ConstructionofPassiveTelecommunicationsInfrastructureforPurposeofCo-LocationofTelecommunicationCompaniesinRural/UnservedCommunities

• EstablishmentofBaseTransceiverStations(BTS)in(Rural)Unserved/UnderservedAreasoftheFederation30

30. http://uspf.gov.ng/index.htm

35

SSA USF STUDY

ThecurrentamountintheUSPFaccountisnotpubliclyavailable.Thereportedbalancein2009,tobecarriedforwardto2010,wasNairaNGN23.6B31(US$145million).

Notwithstandingtheongoingactivitiesofthefund,thefundadministrators,aswellasthenewMinisterofCommunications,appeartorecognisethatthefundisnotperformingasitshouldandthatsomemajoradjustmentsarerequired.Tothatend,theyarecurrently(asofMay2012)32intheprocessofredefininghowtheFundshouldoperate.


Between2009and2012,thefundfocusedon:

• USPFBTSSupportProject• CommunityCommunicationsCentre• ComputerfortheGirlChild• LargeScaleICTProjects• ICTforAllNigeriansProject• AcceleratedMobilePhoneExpansion

Project• BackboneInfrastructureProject• SchoolandUniversityAccessProjectsto

DigitalLifestyles

Asmentionedpreviously,themainfocusofthefundwastheBTSSupportProjectforunservedandunderservedareas.Thisparticularfocushasbeenquitesuccessful,asoperatorshaveleveragedontheinitiativetoextendservicestolocationsconsideredtobecommerciallydisadvantageous.MajormobileoperatorsparticipatedintheBTSprojects,receivingasubsidyof25%ofthecostofbuildingabasestation(approximatelyN8,897,040.00–US$54,300).

TheotherprojectsthatdeliveredsomeresultshavebeentheSchoolandUniversityAccesstoDigitalLifestyleProject,whichbroughtinternetconnections,expectedtoimprovelearningandresearchbytheteachersandstudents,toFederalUniversities;

andtheComputerfortheGirlChildprojectfacilitatingaccesstoICTbypupilsinsecondaryschoolsacrossthecountry.

TheUSPF2007-2011StrategicPlancitedthesetypesofprojectseligibleforUSPFfinancing:

• LargescaleICTprojects.• Communitycommunicationscentres

(CCC)projects.• ICTsforallNigeriansproject.• Acceleratedmobilephoneexpansionproject.• Backboneinfrastructureproject.• Enablingenvironmentprojects.• Schoolanduniversityaccessprojectsfor

digitallifestyle.• Institutionaldevelopmentprojects.

Inthe‘ApprovedStrategicManagementPlan(2013–2017)fortheUniversalServiceProvisionFund’publishedinJune2013),thefollowingprojectswereidentifiedwithmoresubstantiveinformationprovided:

• Communitycommunicationscentres(CCC)projects:224CCCsestablishedacrossthesixgeopoliticalzones,achieving77%ofthesettarget(291).

• Acceleratedmobilephoneexpansionproject:Thefirsttargetwastohave490BaseTransceiverStationsby2011.TheUSPFawardedsubsidiesfor74BTS,62ofwhichhavebeenimplementedwhile12arestillinprogress.Thisrepresents12%ofthesettarget.Thesecondtargetwastoencourage/subsidisetheconstructionofsharedtelecominfrastructureforco-locationoftelecomoperators.Thetargetwas150CIPs.TheUSPFsubsidisedtheestablishmentof104CIPsachieving69%oftheplannedtarget.

• Backboneinfrastructureproject:(theBTRAINproject)aimedatacceleratingthroughsubsidiesthebuild-outofbackbonetransmissioninfrastructuretoalllocalgovernmentareasinNigeria.Thetargetwastoachieve1000km.offibrebackboneinfrastructure.TheUSPF

31. 2009 Annual report – last annual report that has been published on the USpF website32. http://www.piftikhar.com/2012/05/my-first-visit-to-nigeria/

36

SSA USF STUDY

hasrecentlyconcludedthattheprocessfortheBTRAINPilotProjectachievedthedeploymentof500km.offibreattheendof2012.

• Schoolanduniversityaccessprojectsfordigitallifestyle(TheSchoolAccessproject(SAP)aimedatprovidingpublicschools(1,858schoolstargeted)withICThardwareandfundingsubscriptionsforbroadbandinternetforatleastoneyear.TheSAPhasbeenrolledoutto766governmentschoolsrepresenting41%achievementofsettargets.TheTertiaryInstitutionAccessProject(TiAP)aimedatprovidingtertiaryinstitutions(374institutionstargeted)withICThardwareandfundingsubscriptionsforbroadbandinternetforatleastoneyear.TheTiAPhasbeenrolledoutto193oftheinstitutionstargeted.

• Institutionaldevelopmentprojects(TheE-Libraryprojectwastoprovideinternetaccesstopubliclibrariesinunderserved/unservedareas.Therewasnospecifictargetfortheproject.Attheendof2012,theE-libraryhasbeendeployedto74librariesacrossthecountry).

• RuralBroadbandInitiative(RUBI)projecttofacilitatetherolloutofbroadbandservicestounderservedandunservedareas.Thetargetwastoestablish109RUBIinitiativesacrosssenatorialzonesinthecountry.Theprojecthasbeenrolledoutto18areastofacilitateaccesstohighspeedinternet.


Thehighlycompetitivetelecommunicationsmarketisthemainreasonbehindtheachievementofthecountry’scurrentcoveragelevelsratherthanthefundinitiatives.Muchoftheremainingaddressablemarketisinthecountry’sruralareaswherenetworkrolloutsandoperationsareexpensivemainlyduetothepoorinfrastructureinplace,lackofreliableelectricity,securityrisksandunreliabilityoftheincumbent’sfixednetwork.GiventhatruralpenetrationinNigeriaisstilllow,withover40Minhabitantsstillresidinginruralareas,thereisaneedtodevelopmorecomplexincentivesthatwilladdresstheabovefactorsandhelptodecreaseoperators’capitalandoperatingexpenses.

General assessment35:ThesystemisthebestdevelopedandmostmoderninAfrica.

domestic telecommunications:Combinedfixed-lineandmobile-cellulartele-densityisroughly110telephonesper100persons;consistsofcarrier-equippedopen-wirelines,coaxialcables,microwaveradiorelaylinks,fiber-opticcable,radiotelephonecommunicationstations,andwirelesslocalloops;

• Approximately4.0Mfixed-lines(yE2012)36

• Wirelinemarketpenetration37

(yE2011):9.0%

• Onemainfixed-lineoperator:TelkomSouthAfrica


• 68.4millionsubscribers38(yE2012)

• WirelessmarketpenetrationyE2013:138.0%39

• ThreeMainOperators40: • vodacomwithapproximately44%

marketshare •MTN,withapproximately35%

marketshare • Cell-C,ownedbyOgerTelecom,with

approximately18%marketshare •TelkomMobile,withapproximately

2.3%marketshare

4.4

sOutH afRica

33. CIA World Factbook 201434. Id.35. Id.36. CIA World Factbook 201437. Global Wireless matrix 1Q201238. Id.39. Id.40. Id

37

SSA USF STUDY


TheRepublicofSouthAfrica,generallyreferredtoasSouthAfrica,coversamassivelandareaofover1millionsq.km.ThecountryissituatedatthesoutherntipoftheAfricancontinentandbordersBotswana,Lesotho,Mozambique,Namibia,SwazilandandZimbabwe.SouthAfrica’spopulationisestimatedtobeover48million.Urbanpopulationaccountsforover60%ofthepopulation.Populationinthemajorcitiesis:3.6millioninJohannesburg;3.3millioninCapeTown;3.1millioninEkurhuleni;2.8millioninDurban;and1.4millioninPretoria,thecapitalcity33.

bOtsWana

les.

sWaz.

MOzaMbique

ziMbabWe

naMibia

caPe tOWn

PRetORiajOHannesbuRG

duRban


SoUTh AFrICA’S gDp pEr CApITA (ppp) IS

US$11,500 (2013 ESTImATE).34$

38

SSA USF STUDY

TheSouthAfricantelecommunicationsmarketisoneofthemostmodernandbestdevelopedmarketsinAfrica.In1996,theTelecommunicationsActwasamendedandformedthebasisofthemarketliberalisationandprivatisationofthestate-ownedfixed-lineproviderTelkom.TheIndependentCommunicationsAuthorityofSouthAfrica(ICASA)wassetupin2000andhasbeentaskedwiththeadministrationofgovernmentpolicy,issuinglicences,frequencymanagementandtheimplementationoftheTelecommunicationsAct.TheElectronicCommunicationsActof2005introducedaconvergedunifiedlicensingregimeandwitnessedthesurgeofhundredsofalternativeserviceproviders.

Today,therearefixed-linesprovidedmainlybyTelkom,thestate-ownedoperatorwhohadamonopolythroughto2006.Thesecondfixed-lineoperator,Neotel,majority-ownedbyIndia’sTataCommunications,hasonlyrecentlystartedtopickupandcurrentlyboostswithamarketsharebelow15%.

ThegovernmentismakingeffortstoenhancethebroadbandofferingthroughthenewlycreatedBroadbandInfraCo,anationalinfrastructurecompany,whichistoprovidecheapbackbonenetworkcapacitytoserviceproviders,fibretothehome.however,thisinitiativehasbeenveryslowtotakeoff.however,hopesareputinto3GmobilebroadbandwhichisslowlysurgingaheadofDSL.


TheoriginalUniversalServiceAccessFund(USAF)wasoriginallysetupin1997inaccordancewiththe1996TelecommunicationsAct,asamendedin2001,andtheassociatedUSAFRegulationsof1999.TheElectronicCommunicationsActof2005(ECA)establishedtheUniversalServiceandAccessAgencyofSouthAfrica(USAASA),aseparatelegalentityresponsibleforpromotinguniversalserviceandaccessinthecountry,toadministertheUSAF.TheUniversalServiceandAccessFundContributionsRegulation(GovernmentGazetteNo.34010of10February2011)prescribetheannualcontributionstobepaidtotheUSAF.TheMinisterofCommunicationsappointstheUSAASABoard,whoretainsthefullandeffectivecontrolandmonitorstheexecutivemanagementanddecisionsoftheAgency.

howeverduetothewidespreadallegationsofcorruptionandmismanagement,seniormembersofthefundmanagementteamweresuspendedinSeptember2011,andaforensicauditwasordered.Subsequently,someofthesuspendedmembersunderinvestigationresigned;theMinisterappointedanewboardinSeptember2012andconductedasearchforanewCEO.

USAASAisfundedbycontributionsfromlicensedoperatorsofelectroniccommunicationservicesandnetworks.BroadcastinglicenseesalsocontributetotheFundoroffsetthecontributionagainst

41. CIA World Factbook 2014

USErS: 4.4m (2009)

hoSTS:4.8m (2012)

internet41:

39

SSA USF STUDY

acontributiontoabroadcastingsectorMediaDevelopmentandDiversityFund(“MDDA”).TheNRA,ICASAcollectsthecontributionsfromlicenseesandsendsthemtotheNationalTreasury.ICASAdeterminesthebasisofoperators’contributions,whichmaynotexceedonepercentoftheirannualturnover.Currently,basedonthe2011USAFContributionsRegulation,thecontributionissetat0.2%ofannualturnover,paidonanannualbasis,whichisdefinedastotalrevenuefromlicensedactivity,lessserviceproviderdiscounts,agencyfees,interconnection,facilitiesleasingcharges,governmentgrantsandsubsidies.Section88oftheECAstipulatesthatthefundshouldbeusedexclusivelyforpaymentofsubsidiesinthefollowingmanner:

• Toassistneedypersonstowardsthecostofprovisionto,ortheuseby,themofbroadcastingandelectroniccommunicationsservices.

• TopublicschoolsandpublicFurtherEducationandTraining(FET)Institutionsfortheprocurementofbroadcastingandelectroniccommunicationservicesandaccesstoelectroniccommunicationnetworks.

• Fortheestablishmentandoperationofbroadcastingservicesandfortheestablishmentandoperation,includingtrainingofandthepaymentofallowancestopersonnel,ofcentreswhereaccesstoelectroniccommunicationnetworkscanbeobtained.

• Toanybroadcastingservicelicenseeandelectroniccommunicationsnetworkservicelicenseeforthepurposeoffinancingtheconstructionorextensionofelectroniccommunicationsnetworksinunder-servicedareas.

Projectsareawardedthroughacompetitivebid.USAASAmanagesthefundsandidentifiessuitableprojectsintermsoftherequirementsofECAthatareeligibleforasubsidy.

Oneofthemainareashasbeentoprovideincentivestoelectroniccommunicationsnetworkservicelicenseestoconstructoperateandmaintainelectroniccommunicationsnetworksinunderservedareasthroughtheawardofprojectgrants.ForthedisbursementofUniversalServiceFundsunderthisapproach,USAASAappliesarangeofcriteriaincluding:

• Thescopeoftheelectroniccommunicationsnetworkservicelicensee’sproposal,includingtheelectroniccommunicationsnetworkproposedforconstructionintheunderservedareaandthespecifictechnologiesproposed;

• Anyelectroniccommunicationsservicestheelectroniccommunicationsnetworkservicelicenseeproposestoofferintermsofitselectroniccommunicationsservicelicenceorotherlicenceheldbytheelectroniccommunicationsnetworkservicelicensee;and

• Termsandconditionsrelatingtoanyproposedservices,includingwholesaleandretailpricing,consideringthelackofcompetitiveelectroniccommunicationsnetworksandservicesinthetargetedunder-servicedarea.

40

SSA USF STUDY


TheUSAASAiscurrentlyactiveafterahiatusperiodwhilstaforensicauditwasconductedandthefundmanagementwaschangedinitsentirety.DuringthattimeadetailedUSFoperatingandfundingmanagementmanualwasestablished.Thefundisnowfocusingonfourkeyareasorinitiatives42asfollows:

a. Rapid deployment

Thisprogrammeisintendedtoestablish30newschoolcyberlabsconnectedtotheinternet.USAASAhasinvitedlicensedserviceprovidersthroughacompetitivebiddingprocesstoconnectschoolsintheseunder-servicedareas.

b. connectivity

Thisprogrammeseekstoensure260accesscentresincludingschoolcyberlabsandtele-centresareconnectedtosubsidisedinternet.

c. broadband networks

Twounder-servicedmunicipalitiesinEmalahleniLocalMunicipalityintheEasternCapeandMsingaLocalMunicipalityinKwaZulu-Natalaretherecipientsofthebroadbandnetworkproject.ThestakeholderengagementforbothuMsingaLocalMunicipalityinKwaZulu-NatalandEmalahleniLocalMunicipalityintheEasternCapewasfinalised.Additionally,MTNwasappointedtocommencetherolloutandoperatethebackbonenetworkduringthefourthquarterof2014.Thisprojectentailsconnectingthreeschoolstobechosenbyeachmunicipality.AhospitalandmunicipalofficeswillalsobeconnectedandCustomerPremisesEquipment(CPE)suchasthe3Grouterwillalsobesupplied.

Inordertofurthermoveaheadthebroadbandinitiatives,thefundissuggestingathreephaseimplementationapproach:

• Phase 1:Constructthenetworktocoverthemaintownsfirst,providingservicestoGovernment,localbusinessandhouseholdsinthoseareas.

• Phase 2:Extendthenetworktoreachimmediatevillagesaroundthemaintowns.

• Phase 3:Extendthenetworktoreachallothervillagesandfarmsthroughoutthemunicipality.

d. digital terrestrial television

TheimplementationoftheDigitalTerrestrialTelevision(DTT)programmeishamperedbythelegalchallengestotheMinisterofCommunicationsduetotheimplementationoftheconditionalaccesscontrolimposedonthesubsidisedset-topboxesfordigitalterrestrialbroadcastinginSouthAfricathroughtheBroadcastingDigitalMigrationPolicy(GovernmentGazetteNo.31408dated8September2008).

TheslowpaceontheDTTproject,whichaccountsfor84%oftheUSAF,budgetimpactsonUSAASA’sresponsibilityareaonthisProgramme.USAASAisdependentontheDepartmentofCommunicationstocompletetheprocessofappointingthemanufacturersoftheset-topboxes(STBs)forittoimplementsubsidydisbursements.ThesubsidiesfortheDTTprojectareintendedforsubsidisationof4.5millionpoorhouseholdswhowouldfinditverydifficulttoaffordSTBs.

42. USAASA’s Status Update of the Universal Service and Access Fund Operational Activities march 2014

41

SSA USF STUDY

43. the relevance of public access services and universal service obligations in light of increased mobile market penetration – Dr. Kammy Naidoo Lirneasia November 2011

ThetotalamountcurrentlyheldintheUSAFisnotpublicallyavailableandvariousestimatescontinuetoexist.AccordingtotheUSAASA2009/2010AnnualReport,thelatestpublishedsurplusforyear2010wasR15.4M(US$1.8million).Estimatedoperatorcontributionsin2010fromothersourceswereintheneighbourhoodofR225.0M(US$27.1million).

ThefollowinggraphshowsoneassessmentoftherelationshipbetweenthelevelsofoperatorcontributionsreceivedversusthelevelofdisbursementsachievedbytheFund43.ThistranslatesintoanestimatedamountofbetweenUS$27.4millionandUS$30.4million.

Operator contributions expenditure

OPeRatOR cOntRibutORs veRsus usaasa exPendituRe

Source: Lirneasia

2004 2005 2006 2007 2008 2009 20100

50,000

100,000

150,000

200,000

250,000

r’0

00

42

SSA USF STUDY

Since2010,theoverallGovernmentalPolicyonUniversalServiceandAccessObligationhasbeenunderreviewandsubjecttoaconsultationprocesspublishedbyICASAon17August,2010.AttheheartofthedebateiswhetherSouthAfricashouldretainasystemofimposingUniversalServiceandAccessObligationsonlicenseesorwhetheritshouldadoptapurelycompetitiveprocessusingfundsfromtheUSAFandlettingoperators

voluntarilyassumeobligationsthroughselectedsubsidisedprojects.BasedonthelatestinformationavailablebythenewlyrejuvenatedUSAASA,availablefundsappeartoberatherlimitedasperthisrecentreportbelow44.Itisalsoimportanttonotethatwhilethisreflectscurrentstatus,thereisnoindicationregardingwhathappenedtothepreviouslycollectedfunds.

44. USAASA Strategic plan 2012-2015 – Final as published in the website

accRual

financial PeRfORMance data 2012/13 2013/14 2014/15

R. tHOusands MediuM - teRM estiMate

Revenue

INTeresT 112 124 136

deparTmeNT of commuNIcaTIoNs 273,977 289,046 291,988

tOtal Revenue 274,089 289,170 292,126

exPenses

adverTIsINg – – –

audIT cosTs 762 717 857

baNk cHarges 27 29 31

coNTracTors – – –

researcH aNd developmeNT – – –

Travel aNd subsIsTeNce 2,165 2,539 2,693

exPenses

sTraTegy documeNT & maNual 2,850 – –

HaNdover of eac

e- coNNecTIvITy 11,400 9,310 8,550

rapId deploymeNT 10,000 15,000 20,000

sTb subsIdIes 230,000 240,000 240,000

broadbaNd INfrasTrucTure 16,885 21,575 19,995

tOtal exPenses 274,089 289,170 292,126

43

SSA USF STUDY


TheUSAASAhasbeenactivewithmixedresults.Itstarteditsactivity,includingfundsdisbursementin1998.historically,USAASAhasbeenseenasa‘Tele-centre’AgencyandinvolvedonlyinsmallinitiativessuchasTele-centreandCyberlabprojectsandthefundingofUnder-servicedArealicensees.Thesedidnotachievethepenetrationlevelsexpected.45

under-serviced area licencesInNovember2001,amendmentstotheTelecommunicationsActcreatedanewlicencecategory,the“under-servicedarealicence”(USAL).Thegoalwastostirthegrowthoftelecommunicationsservicesinunderservedareas,whichweredefinedasareaswithlessthan5%tele-densityduringaperiodofthreeyears.Underthescheme,certainsmallandmedium-sizedenterpriseswereallowedtoapplyforlicencestoprovidetelecommunicationsservicesintheseunderservedareas.TheUSALallowedthemtoofferservicessuchasvoIP,fixedmobileserviceandpublicpaytelephones.USALlicenseeswereneverthelessrequiredtotransporttheirlongdistancetrafficthroughthetrunknetworksofanyofthenationalfixedandmobileoperatorsand,internationally,throughthreedesignatedinternationalgatewaylicensees.

AfixedsubsidyofR15million(approximatelyUS$2million)wasgiventoeachofthesevenwinningbiddersfortheUnder-ServicedAreaLicence(USAL),tobeusedoninfrastructuredevelopmentforaperiodofthreeyears46.USALshavenotproventobefinanciallyviable.Afterin-depthreview,itwasdecidedthatfundingbesuspendeduntilasustainablemodelonthebusinesscase,regulatory,financialsupportandpolicywasdevelopedandin2007,thegovernmentdirectedICASAtomergeUSALsandissueoneProvincialUnder-ServicedAreaNetworkOperator(PUSANO)licenceinprovinceswherethereismorethanonelicence.TheECAobligedtheUSALstoconverttheirlicencesintoone

ofthenewcategoriesestablishedundertheAct.OfthesevenoriginallyUSALSthatwerelicensed,onlyonewasstillprovidingretailservicesbytheendof2009.

tele-centres and cyber-labs:Tele-centresareintendedtoprovidecommunitieswithawiderangeofservicesincludingcomputerservices,telephones,fax,Internetaccess,email,typing,printingandphotocopyinganduseofvideofacilitiessuchasvideorecordersandDvDplayers.SchoolCyberlabsareexpectedtoprovideICTservicesandcomputerliteracytrainingtotheschoolcommunity.TheschoolownstheCyberlabandisresponsibleforallmaintenancecostsexceptInternetconnectivityforthefirst12months.Theintentionisthat,thereafter,theschoolbecomescompletelyresponsiblefortheCyberlab.TheUSAASAisresponsiblefortheinstallationofnetworkpoints,airconditionersandprovidessecurityforthefacility.

TheUSAFwasintendedtoprovidesupportforthedevelopmentofaCommunityDigitalhub.ThisisaconceptofcommunitycentresdeployedinruralareasandisanadvancedICTfacilitytoprovidetechnicalsupporttoremoteTele-centresandCyberlabs.Thesupportprovidedbythehubincludescontentdevelopmentanddeliveryofvariousapplications(suchase-governmentservices,e-education,e-health,e-businessdevelopment,e-agriculture,etc.).

however,projectshavebeendelayed,roll-outhasbeeninefficientandtele-centresandcyberlabshavenotbeenconceptualisedtoremainsustainableandself-efficient.Inits2008/2009AnnualReport,USAASAreportedthatithadspentmorethanR150million(US$17.9million)overthepreviousfewyearsintherehabilitationandmaintenanceofthesefacilities.Theassessmentshowedthataccesscentresfacevariouschallengesincludinglackoftechnicalandmanagementskills,difficultsustainability,shortageofresources,governance,publicawarenessandpooruptakeandusageofthefacility.

45. USAASA 2009/2010 Annual report 46. USAASA 2009/2010 Annual report

44

SSA USF STUDY

In2009,USAASAinitiatedastrategyforthehandoverofcommunityICTAccessCentresandschoolCyberlabstotherelevantgroupsandtheDepartmentofEducation.Thehandoverwasdelayedasaresultoflongerprocurementprocesses.Bytheendof2010,onlythepriorityprojectswerecompleted(auditof154AccessCentres,rehabilitationofobsoleteequipmentandhandoverof100schoolsand38AccessCentres).

Duringthecourseof2010,USAFengagedinthefollowing:

• DisbursementofInternetaccesssubsidiestofacilitatetheprovisionofInternetconnectivitytoschoolCyberlabsandCommunityAccessCentresate-rated47or(50%discounted)prices.

• TendersfortherapiddeploymentofnewcommunityAccessCentresinruralandunder-servicedareas(withatargetof100centres)havebeenputonholdanddelayed.

• TheUSAFalsoundertookaprojecttodevelopaUniversalServiceandAccessFundManualsettingdownproceduresandtoprovideguidelinestobeneficiariesonhowtoaccessthefund.

• SubsidiesviaUSAFwereprovidedto18FurtherEducationandTraining(FET)collegesin2008–2010tofacilitateconnectivity.

Overall,tendershavebeendesignedforandsubsidiesallocatedtomediumandsmallsizelicensees(companiessuchasBrentlanaTechnologies,Wi-LinkTechnologies,AnnixTelecommsorSolariaTechnologies).Forexample,by2009,theUSAFhadprovidedR38.4M(US$4.6million)48tosmallandmediumblackeconomicempowermententerprisesofwhichR7Mwasspentonwomen-ownedenterprises.Thefourmajoroperators(MTN,vodacom,Cell-CandTelkom)donotappeartohavebenefitedfromfinancingbytheUSAF.

SouthAfrica’ssuccessinachievinghighpopulationcoverageandpenetrationisduetofactorssuchasaliberalisedandcompetitivemobiletelecommunicationsmarketsince1996,originalroll-outandpublicaccessobligationsinthemobilelicencesandhighdensitypopulationconcentrationswithmid-levelpercapitaincome.

MajoroperatorswereobligedtoprovisionahighnumberofCommunityServiceTelephonesinUnder-ServicedAreasundertheiroriginalMobile-CellularTelephoneService(“MCTS”)licencesissuedundertheTelecommunicationsAct,1996(subsequentlysubstitutedorconvertedintoECActlicences).Inexchangeforthe3Gspectrum,obligationswereimposedtoprovideInternetaccesstoinstitutionsofpersonswithdisabilities,plusterminalequipmenttofacilitatesuchaccess,andInternetconnectivitytothousandsofpublicschoolslocatedinrural,underservedandnon-servicedareas,plusterminalequipmenttofacilitatesuchaccess.Inexchangefortherighttothe1800Mhzspectrum,operatorsweremandatedtoprovideanddistributemillionsofSIMcardconnectionpackagesinunder-servicedareas.

47. Special discounted prices for Internet connectivity offered to certain public institutions 48. USAASA 2009/2010 Annual report

SSA USF STUDY

45

Basedonthelatestinitiativesnowthatthefundhasbeenre-activatedbuttheexpenditureshavebeenmodesttodate,thecurrentresultsareasfollows:

PROJECTNAME

ANNUALTARGET

ORIGIONALBUDGET

ROLLOvERAMOUNT

NEWTARGET PROGRESS

ExPENDITURETODATE

rapId deploymeNT 30schools R15.18M R4,374M 40schools+1centrefordisability

39schoolscompleted

R14.6M(us$1.4 million)

coNNecTIvITy 260centres R6.4M R4,832M 281centres 279connected

R5.6M(us$0.5 million)

broadbaNd 2municipalities R21M – – MTNappointedandstartedwork.Paymentwillbeintranches

nil

dTT 300,000STBs R240M R450M – None nil

4.5

uGanda

SSA USF STUDY


AlandlockedcountryinEast-CentralAfrica,UgandaborderstheDemocraticRepublicoftheCongo,Kenya,Rwanda,SouthSudanandTanzania.Itsareaismadeupofmainlyplateauswitharimofmountainsandmanylakesandrivers.Uganda’sestimated35.9millionpopulationismainlyruralwithonly13%livingincities,outofwhichKampala,thecapital,has1.5millioninhabitants.


General assessment50:Mobile-cellularserviceisincreasingrapidly,butthenumberofmainlinesisstilldeficient;workunderwayonanationalbackboneinformationandcommunicationstechnologyinfrastructure;internationalphonenetworksandInternetconnectivityprovidedthroughsatelliteandvSATapplications

domestic telecommunications51:Intercitytrafficbywire,microwaveradiorelay,andradiotelephonecommunicationstations,fixedandmobile-cellularsystemsforshort-rangetraffic;mobile-cellulartele-densityabout40per100personsin2010.

• Approximately315,000fixed-lines(2012)• Twomainfixed-lineoperators:UTL

andMTN


• 14.4millionsubscribers52(yE2012)• MarketpenetrationyE2013:51%53

• FiveMainOperators •MTNUganda,withslightlymorethan

45%marketshare •Airtel,with40%marketshare •UT,with11% •ThebalanceisdividedbetweenOrange

andothers

46

49. CIA World Factbook 201450. Id51. Id52. CIA World Factbook 201453. GSmA Intelligence54. CIA World Factbook 2014

sOutH sudan

kenya

tanzania

lake victORia

deM. ReP. Of tHe cOnGO

kaMPala

UgANDA’S gDp pEr CApITA (ppp) IS

US$1,500 (2013 ESTImATE).49$

47

SSA USF STUDY

55. Insights to the African telecom market 2011: Analysis, forecasts and commentary, by telecomsmarketresearch.com, in association with buddecomm, August 201156. the Communications (Universal Service) regulations of 200557. rCDF Statement 2011

AlthoughUgandaisoneofthesmallestmarketsintheregion,itisalsooneofthefastestgrowingmarketsinAfrica.Itstartedtoliberaliseitstelecommunicationsmarketintheearly1990swhenCeltel(nowAirtel),asthefirstmobilecompanyinUganda,obtainedaCellularTelecommunicationsOperatorlicencein1993andlaunchedservicein1995.TheUgandaCommunicationsCommission(UCC)wasestablishedin1998bytheUgandaCommunicationsAct(Cap106LawsofUganda)tofacilitateandenablethedevelopmentofamoderncommunicationssectorandinfrastructureinthecountry.MTNenteredthemarketin1998,followedbyUgandaTelecom(UTL)in2001,WaridTelecomin2008andhiTSTelecom,inwhichFranceTelecom’smobileunitOrangeboughtamajoritystakein2009.55

Despitetheintensifiedcompetitionleadingtopricewars,whichhaveacceleratedsubscribergrowth,themarketpenetrationisstillwellbelowtheAfricanaverage.


The1997UgandaCommunicationsActoutlinedtheprinciplesofuniversalserviceandenvisagedfinancingthroughaUniversalServiceFund.TheseprincipleswerethenincorporatedinthefirstRuralCommunicationsDevelopmentFundPolicyof2001.ThecurrentRural

CommunicationsDevelopmentFund(RCDF)wasestablishedundertheCommunications(EstablishmentandManagementoftheRuralCommunicationsDevelopmentFund)Instrument,2002,andhasbeenfullyoperationalsince2003.The2005Communications(UniversalService)RegulationsoutlineacomprehensiveuniversalservicepolicyforUganda.56TheregulationsnotedthattheUgandaCommunicationsCommission(UCC)wastosupporttheprovisionofuniversalserviceobligationsbytheoperators,andthattheUCCshallimplementtheuniversalserviceobligationsthroughtheRCDF.

TheRuralCommunicationsDevelopmentFundisaninternalunitandaccountmanagedbytheManageroftheRCDFundertheUCCwhoisresponsiblefortheestablishmentandoveralladministrationofthefund.TheUCCappointsaBoardthatconsistsofrepresentativesoftheUCC,includingtheChairmanoftheBoardandtheExecutiveDirector,theUgandaPostalsector,UgandaConsumerProtectionAssociation,UgandaInstitutionofProfessionalEngineers,theUgandaInstituteofBankersandtheMinistryofICT.TheBoardisresponsiblefortheexecutionofthestrategyfortheRCDF.TheBoardreportstotheUCCandmanagestheFundinaccordancewithUCC’sapprovedpoliciesandprocedures.UCCalsoappointsaRCDFmanagerandallocatesitsstaff.ThekeyroleoftheRCDFmanagerandhisunit

USErS: 3.2m (2009)

hoSTS:32,683 (2012)

internet54:

48

SSA USF STUDY

istomanagetheRCDFprogrammeandactivities,toimplementandadministertheprogrammeandtherelatedactivitiesandtomanagethefinancesoftheRCDF.

OneofthemainobjectivesofUCCistheenablingofUniversalAccess(UA)tocommunicationsinUganda.Priortoliberalisationofthecommunicationssector,UniversalServiceObligationswereincludedinlicencesofoperatorsandserviceprovidersforareasandservicesthatwerenoteconomicallyviable.Undertheliberalisedenvironment,operatorsaregenerallyfreetochooseareasthattheyoperatein.Theseareasaremainlydeterminedbytheireconomicviability,whilethoseareasthattheychosenottooperateinbecomeunderservedorunserved.57

Theuniversalserviceobligationisdefinedinthe2005Regulationsasaminimumsetofservicesofspecifiedquality,whichisavailabletoallusersindependentoftheirgeographicallocationatanaffordableprice,inparticular:

• Connectiontoafixedcommunicationnetworkabletosupportvoicetelephony,faxanddatatransmission;

• ReasonablegeographicaccesstopubliccallboxesthroughoutUganda;

• Abilityofconsumerstoaccessemergencyandfreeservices,operatorassistanceanddirectoryenquiryservices;

• Abilitytomeettheneedsofpeoplewithdisabilities;

• Deliveryofaffordablebasiccommunicationservicestoallcustomersuponreasonablerequest;

• Providecustomerswithdisabilitieswiththesameorequivalentservicesasallothercustomerssoastohaveaccesstothesamelevelofuniversalservice;and

• Reasonablegeographicaccesstobasicpostalservicesacrossthecountry;aswellasreasonablelevelsofaccesstopayphonesforallinUgandaonanequitablebasis.

Currentlyalloperators,includingthepostalservicecouriersandISPs,contribute1%58oftheirGrossAnnualRevenue,netofinterconnectionpayments,totheRCDF.TheRCDFmayalsoreceivefinancingappropriatedbytheUgandaParliamentthroughthenationalbudget,aswellasdonationsandgrantsfromdevelopmentpartners,andgiftsandloansdeemedacceptabletotheMinisterofICTandtheFinanceMinister.TheWorldBankhasprovidedabout30%ofthefinancingthroughitsgrants59.

Accordingtothe2005Regulations,theUCCcandesignateanoperatorasauniversalserviceproviderwhowouldthenhaveanobligationtoprovideuniversalservicesonanation-widebasisorinaspecifieduniversalserviceareaandoughttoestablishamechanismforsharingthenetcostsofsupportingtheuniversalserviceobligation(i.e.,differencebetweenthenetcostofoperatingforanoperatorwiththeuniversalserviceobligationandoperatingwithouttheuniversalserviceobligation)suchthattheuniversalserviceobligationdoesnotrepresentanunfairburden.UCCdeterminessubsidiesforeachuniversalserviceareawithrespecttoeachserviceobligation.

TheRCDFdevelopsappropriateICTprojectsfortheunderservedandunservedareas.RCDFthenformsPublicand/orPrivatePartnershipstoimplementthoseprojects.Normally,theRCDFcontributestechnicalsupportandasubsidyintothepartnership.Thepartnercontributesownershipandfinancialsupportamongstotherthings.ThepartnersareselectedonacompetitivebasisinaccordancewithprovisionsofthePublicProcurementandDisposalActof2003andtheprojectsarenormallyoperatedforaperiodoffiveyears.60Operatorscanaccess

58. UCC Determination based on the 2005 Communications (Universal Service) regulations outline a comprehesive universal service policy for Uganda59. ICt regulation toolkit, www.ictregulationtoolkit.org/en60. rCDF Statement 2011

49

SSA USF STUDY

thefundsthroughacompetitivepublicopenbiddingprocesswhenarequestforabidisissuedbytheRCDF.Thebidsareawardedmainlybasedontheleastsubsidyrequestedfromqualifiedbidders.AlthoughoperatorsarenotincludedinthegovernancestructureoftheRCDF,inpractice,theprojectselectionissharedwithoperators,e.g.,forrolloutrequirements,operatorscanindicateareasthatarealreadycoveredorthattheyplantocover.


Thefundhasbeenveryactiveandisoftencitedasanexampleofawell-functioningFundintheemergingmarkets.BuildingonthesuccessrealisedinPhaseIoftheRCDFPolicy(2003-2009),PhaseIIoftheRCDFPolicy(2010-14)isnowunderwayandaimstoincreasethescopeofprojectsimplementedunderRCDFPolicyI:enhanceinternetconnectivityacrossthecountryandthedeliveryofcontentusingICTthroughoutthecountry.ThisincludesprogrammessuchasICTtrainingcentresandtheinternetcafesprogramme.

Theactualfund’sexpenditureonRCDFprojectsfortheperiod2002/3to2010/11hasbeenapproximatelyUS$40million(includingtheprovisionfor2010/2011).61Thisrepresentsapproximately85%ofthetotalFund’srevenue.Aspreviouslystated,theWorldBankfinancingcomprisesabout30%ofthetotalfinancing.

AccordingtothelatestRCDFreport,itsbudgetfor2014,includingrolloverfromthepreviousyearisUS$20million.Thisbudgetisintendedtoaddressthefollowing:

• 3DTTBregionalsites• IntegrationofICTinto30healthfacilities• IntegrationofICTinto120schools

expectedtoincludesomeprivateschools• CommunityICTtrainingin50schools

expectedtotrainabout15,000peopleacrossthecountry

• virtuallaboratorysciencecontentinstallationin250schools

• Providinginternetconnectivityincludingsatelliteconnectivitytoabout240projectsacrossthecountry

• ExtendingbothvoiceanddatanetworksinnorthernUgandaundertheERT/ICT,WorldBankfundedprogramme.


TheRCDFhasfinancedprojectstoprovidetelephony,Internetaccess,InternetPOPs,andInternetexchangepointsandcontentdevelopment.Fundshavebeenavailableforareaswhereserviceprovisionisnotfeasibleorunlikelytobeprovidedbytheoperatorsinthenextonetotwoyearswithoutasubsidy.Infact,154underservedsubcountiesofUgandahavebeenidentifiedanddividedintothreeuniversalaccessareas.Between2003and2009,thefocusofRCDFprojectswasonensuringaccesstoICTservicesfortheunderservedareas.Subsequently,theRCDFprojectfocusshiftedtoensuringusageofICTservices.

Approximately5,482projectshadbeenaccomplishedbytheendof2010/1162:

• 106Internetcafes• 175healthICTfacilities• 78ICTtrainingcentres• 76InternetPOPs• 13multi-purposecommunitytele-centres

(MCTs)• 45postaltele-centres• 708schoolICTlabs• 78webportals• 4,099publicpayphones• 90GSMsites• 6contentdevelopmentinitiatives• 2localgovernance(provisionofICTto

residentDistrictCommissionersandconstituencyMembersofParliament)

• 6uniqueprojects(establishmentofICTlabsinuniversitiesandtertiaryInstitutionsoflearninginUganda)

61. rCDF Annual report 2009/201062. rCDF Annual report 2009/2010

50

SSA USF STUDY

Intheeducationalsector,therewere823ICTlaboratoriescompleted,with76morelaboratoriesunderway;335internetconnectionscompleted,with488moreunderwayand665teachersre-trained,with135underwaybyMarch2011.ByMarch2012,therewere252completedsolarpoweredICTlaboratoriesforschoolsand195underinstallation;and252completedgridpoweredICTlaboratoriesand72underinstallation.

FundshavebeendistributedtoUTL,MTN,someInternetServiceProvidersandindependentcompaniesthroughcompetitivebidding.Forexamplebetween2003and2011,some174InternetconnectivityfacilitieshavebeenestablishedbyUCC/RCDFinpartnershipwithMTNthroughoutthecountry.MTNhadincreasedthevalue-addedservicesofsuchfacilitiesbyaddingmobile-money,dealershipandforeignexchangebureauservicestotheprovisionofInternetandICTtraining.63In2011,UCCcontributedUS$12,000towardstheestablishmentoftheMpondweICTTrainingCentreplusafacility,worthUS$24,000thataimstoextendtheuseofinternetservicesinruralUganda.MTNwonthebidtoestablishthesecafesthroughacompetitivebiddingprocess.Also,MTNhasledtheMTNvillagePhoneproject,builtonthefoundationofmicrocreditandsynergiesofdifferentpartnersincludingtheGrameenFoundation,MFIsandvillagePhoneOperators.9,000ofthemwereinstalledbetween2003and2007,whichwas3,000abovetheplanandthesearenowfullyprofitableandself-sustainingbusinesses.

Overall,theRCDFhascontributedtobringingcommunicationsfacilitiesandserviceswithinthereachofthelocalcommunitiesbyenlistingprivatesectorplayerstoinvestintheunderservedareas.SomeofthelocalpopulationhasbeenabletoreceiveICTtraining,leadingtobothdirectandindirectemploymentopportunitiesforthelocalpopulation.

AccordingtotheRCDFAnnualReport2012/2013,thefollowingprojectswerecompleted:

• 2DigitalTerrestrialTransmissionBroadcasting(DTTB)regionalsitesdeveloped

• 32newdistrictwebportalswithregionaltranslations

• Over200ICTlaboratoriesestablishedinschoolsincluding6Universities,7healthcolleges,5collegesofcommerceand159governmentsecondaryschools

• CommunityICTtrainingin62schoolsforover13,000peopleacrossthecountry

• Telemedicineinstallationsin53hospitalswereactivated

• virtuallaboratorysciencecontentwasinstalledin106schoolstakingthetotalnumberofschoolICTlaboratoriesupto300

• Internetconnectivityincludingsatelliteconnectivitywasprovidedtoover300projectsacrossthecountry

Nonetheless,theFundhasbeenfacingnumerouschallenges:

• verylowincomesofthemajorityoftheruralpopulation

• Lackoforinsufficientpowersupplies

• IlliteracyandignoranceofthebenefitspresentedbyICTs

• highconnectivitycostsandlackoflocalcontentfortheInternet

63. rCDF Statement 2011

51

SSA USF STUDY

64. UCC Annual report 2009/2010 and rCDF Annual report 2012/2013

Theimpactofthefund’sprojectsisregularlyevaluatedandattemptshavebeenmadetoaddressthesechallengesbyusinglowenergy(solar-powered)computers,sharingtechnologiesorRCDF-supportedInternetPointsofPresence.RCDFhasalsobeenrecognisedamongallotherUSFsintheworldforbeingtheonlyUSFthathasbeenabletoabsorballfundsatitsdisposal(forseveralyearsrunning)andtoattractthebiggestamountofdevelopmentpartnerfunds(US$15million).64


Althoughhighlysuccessfulincollectionanddisbursementwithitsleastcostsubsidyauctionstrategystimulatingextensivenationalnetworkrollout,thereisalackofevidenceofasystematicimpactofitsactivities,asruralpenetrationremainsverylowandmostpeopleinruralareasstilldonothaveaccesstobasiccommunications.Also,despitetheintroductionofcompetitionthroughtheunifiedlicensingregime,theUgandantelecommunicationsmarketremainshighlyconcentratedwithMTNUgandahavingover60%ofthemobilevoicemarketshareandTelekomUgandaLimitedthemajorityofthefixedvoicemarkettherebyleavingthesetwooperatorsastheonlymaincontendersintheuniversalserviceprojectbids.

InitseffortstoprovideMemberStateswithguidelinesforthesuccessfulimplementationofuniversalaccess/servicepolicies,theEconomicCommunityforWestAfricanStates(ECOWAS)adoptedtheSupplementaryActonUniversalAccess/Servicein2007.The15ECOWASmemberstatesare:Benin,BurkinaFaso,Capeverde,Gambia,Ghana,Guinea,GuineaBissau,IvoryCoast,Liberia,Mali,Niger,Nigeria,Senegal,SierraLeoneandTogo.TheActprovidesguidelinesonthefollowing:

• Creationofanappropriateregulatoryandpolicyenvironmentthatfostersuniversalaccess/service.

• Measuresthatcanbetakentodevelopanationalpolicywithrealisticuniversalaccess/serviceobjectives.

• Roletobeplayedbynationalregulators,policymakersandoperators.

• Telecommunicationsservicestobeincludedinuniversalserviceobligations.

• Fundingmechanisms.• Co-operationintheareaofuniversal

access/service.

4.6.1 univeRsal seRvice/ access leGal fRaMeWORk and scOPe

TheECOWASSupplementaryActA/SA.6/01/07onUniversalAccess/Service(“TheAct”)wasadoptedbyECOWASheadsofStateinJanuary,2007.TheActdefinesuniversalserviceasallcitizenswithintheterritoryoftheECOWASMemberStateshavingaccesstoabasicgroupofservicesataffordablerates,regardlessoftheirgeographiclocation.65

TheActcallsuponMemberStatestotakeallnecessarymeasuresinorderto:

• Formulateanationalpolicythatidentifiesappropriateandrealisticuniversalaccess/serviceobjectivesandconsidersthedifferencesbetweenuniversalaccess

(publicaccesstoICTs)anduniversalservice(privateorhouseholdaccesstoICTs);

• Asfrequentlyaspossible,conductpublicconsultationswithstakeholderstoidentifytheirneedsandmodifyuniversalaccess/servicepolicies,regulationsandpracticesaccordingly;

• Designuniversalaccess/servicepolicies,regulationsandpracticestocreateincentivesfortheprivatesectortoextenduniversalaccesstocommunicationsservices;

• Useamulti-prongedapproachtoaddressinguniversalaccess/servicechallengesandopportunities,relyingoncomplementarystrategiestomeetthetargetsthathavebeenset;and

• EstablishafairandtransparenttelecommunicationsregulatoryframeworkthatpromotesuniversalaccesstoICTs,whileallowingthemarkettoaddressuniversalaccess/servicetothegreatestextentpossible,interveningonlywherethemarkethasfailedorseemslikelytodoso.

Creatingtheappropriateregulatoryframeworkentails:

• Promotingtechnology-neutrallicensingpracticesthatenableserviceproviderstousethemostcost-effectivetechnologyinprovidingservicesforendusers;

• Adoptingatransparentandnon-discriminatoryinterconnectionframeworkinwhichinterconnectionratesarelinkedtocosts;

• Reducingregulatoryburdenstolowerthecostsofprovidingservicestoendusers;and

• PromotingcompetitionintheprovisionofafullrangeofICTservicestoincreaseaccess,affordability,availabilityanduseofICTs.66

4.6

ecOWas

65. eCOWAS Supplementary Act A/SA.6/01/07 on Universal Access/Service at Art. 1 (2)66. eCOWAS Supplementary Act A/SA.6/01/07 on Universal Access/Service at Art. 1 (2)

SSA USF STUDY

52

53

SSA USF STUDY

Inaddition,theActdeterminesthatwhereitisnecessaryforregulatorsandpolicymakerstointervenetofacilitatethedeliveryofuniversalaccess/service,thefollowingshouldbeaddressed:

• Publicaccessstrategiesshouldbeexploredinadditiontoprivateuniversalservicestrategies.

• Bothpayandplaystrategiesshouldbeemployed,butwherepossible,operatorsshouldbeencouragedtoinvestinrural,remoteandlow-incomepopulationsandareas.

• Countriesmayuseregulatoryreformasthefirststepinachievinguniversalaccess,recognisingthatfurtherstepsmaybenecessarytoachieveubiquitousaccesstoICTs,e.g.,inruralareasorforuserswithspecialneeds.

• Appropriatelicensingschemesforruralserviceproviderscouldbesetuptomeettheneedsofunservedandunderservedareas.

Furthermore,theActestablishesthatnationalregulatoryauthoritiesmustensurethatuniversalserviceisprovidedtoeveryoneataffordablerates.Theymay,attherequestoftheministerinchargeofthesector,requiredesignatedcompaniestomakeavailabletolow-incomeorspecial-needsusersprices,optionsorschemesthatdifferfromthosenormallyprevailinginacommercialoperation,particularlywithaviewtoensuringuniversalservice.Theconditionsunderwhichsuchfacilitiesaregrantedmustbeproportional,transparent,non-discriminatoryandpubliclypromulgated.67

AccordingtotheAct,MemberStatesshouldalsoaimtoestablishinnovativeregulatorypoliciestopromoteuniversalservice,including:

• Promotingaccesstolow-costbroadbandinterconnectivityfromthelocalleveltotheinternationallevel,involving

governmentauthorities,companiesandnon-governmentalorganisations;

• Adoptingregulatoryframeworksthatsupportapplicationssuchase-educationande-government;

• Adoptingpoliciesaimedatincreasingaccesstotheinternetandbroadbandservices,basedontheirownmarketstructure,suchthatthepoliciesreflectdiversityinculture,languageandsocialinterests;

• Ensuringthatnationalregulatoryauthoritiesworkwithstakeholderstoexpandbroadbandcoverageandusethroughmulti-stakeholderpartnerships,inconjunctionwithgovernmentinitiativesthatpromotefinanciallysustainableprogrammes,particularlywithaviewtobridgingthemarketgapthatmayexistinsomecountries;

• Adoptingregulatoryregimesthatfacilitatetheuseofalltransportmedia,whetherwireline,powerline,cable,wirelessoranyothernewtechnology;

• EnsuringthatnationalregulatoryauthoritiesputforwardinitiativesforencouragingpublicaccesstobroadbandandInternetservicesinschools,librariesandothercommunitycentres;and

• EnsuringthatnationalregulatoryauthoritiesimplementharmonisedspectrumallocationsconsistentwiththeITUradiocommunicationconferenceprocessandeachcountry’snationalinterest.68

TheActalsoprovidesthatcooperationintheareaofuniversalservice/accessmustbeexploredonseverallevels:

• Betweentheprivatesectorandcommunities,sothatwherepossiblethemarketcandeliveruniversalaccess/service;

67. Id.

54

SSA USF STUDY

• Betweencommunities,governmentandtheprivatesector,toensurethattheaccessgapisdealtwithinamannerthatisrelevanttocommunities;and

• Withingovernment,wherethefullbenefitsofICTsmaybereapedwhenitextendsbeyondinfrastructureandtechnology,toincludeICTaccessinhealth,education,agricultureandothersectors.69

Intermsofenforcement,theActprovidesthatMemberStatesshallensurethatthecompaniesentrustedwiththetaskofprovidinguserswithservicesundertheuniversalserviceregimeprovidethenationalregulatoryauthoritywitharegularaccountoftheiractivitiesandresultsachieved.Nationalregulatoryauthoritiesshallalsoestablishperformanceobjectivesforcompaniesassuminguniversalserviceobligations.70

PursuanttotheECOWASSupplementaryAct,individuallicencesmayspecifyresultstobeachievedfortheprovisionofuniversalaccess/service.71Alicensee’spersistentfailuretoachievethespecifiedperformanceobjectivesandqualitylevelsmayentailtheapplicationofsanctionsbythenationalregulatoryauthority.Nationalregulatoryauthoritiesarealsoentitledtorequireindependentverificationofanoperator’sperformanceoftheobligationsimposedonit.72

Mandatoryservicesincludedirectoryandinformationservices,emergencyservices,publicpayphonesandservicestopeoplewithdisabilitiesorspecialneeds.however,theActstatesthatwithintheirrespectivenationalterritories,MemberStatesmaydecidetomakeadditionalservicesaccessibletothepublicbeyondthoseservicesalreadydefinedintheActasuniversalserviceobligations.73Intermsofemergencyservices,theActprovidesthatMemberStatesshallensurethatemergencycallscanbemade

freeofchargefromanyfixedormobiletelephone,includingtelephonebooths.74

TheActalsostatesthatinordertoenablethosewhodonotsubscribetoatelephoneservicetohaveaccesstotelephoneservices,MemberStatesmustensurethatpublicpayphonesareinstalled,underreasonableconditions,intermsofquantityandgeographicdistribution.Withoutprejudicetomoregenerousdomesticlegislationthatmayexist,MemberStateswererequiredtoensurethatnationalregulatoryauthoritiesareinapositiontoimposeschedulesforthedeploymentofpublicpayphones,withtheaimofhavingatleastonepublicpayphoneineachlocalitynumbering500inhabitantsormoreby31December2010.ECOWASwillmonitortheimplementationofthismeasureonanannualbasis.75

Inaddition,theActprovidesthatwheretheneedexists,MemberStatesshalltakespecificmeasurestoensurethatuserswithdisabilitiesorspecialsocialneedshaveequivalentandaffordableaccesstopubliclyavailabletelephoneservices,includingemergencyanddirectoryservicesatanaffordableprice.76

TheActmandatesthatinmonitoringandreviewingpolicies,MemberStatesmust,ononehand,adoptmeasurabletargetsforimprovingconnectivityandaccesstoICTuse,whichcanbebasedondistance,populationdensityorlengthoftimeneededtohaveaccesstoICTs.Ontheotherhand,MemberStatesmustholdperiodicreviewsofuniversalaccess/servicepolicies,regulationsandpracticesinordertoadapttotheevolvingnatureofICTservicesandend-userneeds.MemberStatesarerequiredtoreviewperiodicallythescopeoftheuniversalservice,focusingonproposalsforitsmodificationorredefinition.ThefirstsuchreviewistobeheldnolaterthantwoyearsfollowingthedateoftheAct’sentry

68. eCOWAS Supplementary Act A/SA.6/01/07 on Universal Access/Service at Art. 1 (2)69. Id.70. Id.71. eCOWAS Supplementary Act A/SA.3/01/07 on the Legal regime Applicable to Network Operators and Service providers72. eCOWAS Supplementary Act A/SA.6/01/07 on Universal Access/Service at Art. 17(3)73. Id.74 Id.75. eCOWAS Supplementary Act A/SA.6/01/07 on Universal Access/Service at Art. 11.76. Id.

55

SSA USF STUDY

77. eCOWAS Supplementary Act A/SA.6/01/07 on Universal Access/Service at Art. 13. 78. Id. at Art. 20.

intoforce,andthereafterareviewshallbeheldeverythreeyears.Thereviewshallconsidersocial,economicandtechnologicaldevelopments,andshallhaveparticularregardtodatamobilityandtransferratesforthetechnologiesmostwidelyusedbythemajorityofsubscribers.MemberStatesarerequiredtoinformtheExecutiveSecretariatofECOWASofanychanges.77

4.6.2 fundinG MecHanisM

Toassistnationalregulatoryauthoritiesindeterminingwhetherprovisionofuniversalserviceplacesanunjustifiedburdenonthecompaniesdesignatedasproviders,theActestablishesthatMemberStatesshallcommittoprovidefortheadoptionofamethodforcalculatingthecostsoftheuniversalservice,basedonnetcosts.Thenetcostcorrespondstothedifferencebetweentheinvestmentandoperationalcostsassociatedwithprovisionoftheuniversalserviceandtherelevantrevenues.Relevantrevenuesarethedirectandindirectrevenuesgeneratedbytheuniversalservice.Thenetcostofanyspecialprice-schemeoffersmadebyanoperatortocertaincategoriesofsubscriberstoensuretheiraccesstotheuniversalservicearetobedeductedfromthatoperator’scontributiontotheUSF.ThecalculationofthenetcostoftheuniversalserviceobligationsmustbesubmittedforauditingbyanentitythatisnotconnectedwiththebodyresponsibleformanagingtheFund.Theresultofthenetcostcalculationandtheauditconclusionsaretobemadepubliclyavailable.

Fundingandsubsidiesmustbetargeted,andthesearetobedeterminedanddeliveredinamannerthatistransparent,non-discriminatory,inexpensiveandcompetitivelyneutral.Subsidiescanbeprovidedusingseveralmeans,including:

• AUniversalServiceFund,whichshouldbedevelopedasamechanismwithinabroadermarketorientedapproachtoachievinguniversalaccess;and

• USFmaybefinancedbyabroadrangeofmarketplayers,managedbyneutralbodiessuchasregulatorsandmayalsobeusedtokick-startpublicaccessprojectsthatmeettheneedsofthelocalcommunity.

Governmentsmayalsoconsiderafullrangeofotherfinancingmechanisms.CompetitiveminimumsubsidyauctionsareoneoptionthatmaybeusedtoreducetheamountoffinancingnecessaryforpublicaccessprojectsfinancedbyaUniversalServiceFund.Publicaccessprojectscanbedesignedtoachievelong-termfinancialself-sustainability,especiallywhereconsiderationisgiventoinnovativelow-costtechnologies.78

4.6.3 WHat Has tHe ecOWas act acHieved sO faR

DespitethemanysolidguidelinesforeffectivecreationandmanagementofUSFs/UASFsthatarecontainedwithintheAct,thereislittleevidencethattheMemberStateshavemadeanynoticeableprogressinadoptingandcarryingouttheseguidelines.

Best practices in the management of the UsF

AttheoutsetoftheintroductionofUSFs,governmentsandtelecomorganisationsalikeviewedUSFsasanewandinnovativeapproachtoaddressinguniversalservicerequirements,especiallyinlightofvariousconcernsregardingthepracticalityofUSOframeworksinanincreasinglyliberalisedglobaltelecommunicationsenvironment.TheICTRegulationToolkit,thefollowingdescriptionwasappliedtotheUSFconcept:“Where UAS Funds are used, they have proved effective when disbursement is coupled with competitive bidding or auctions for these financial incentives, requiring operators to compete for the minimum subsidies needed to fulfill the UAS target.”79

however,USFshavenotproventobetheexpectedpanaceatouniversalservicefundingand,unfortunately,thereareextremelylimitedexamplesofbestpracticeswithrespecttoUSFmanagement,particularlyinSSA,andeventhosethatcanbecitedasbeingbestpracticeexampleshavetheirindividualdrawbacksandshortcomings.BasedontheanalysisconductedaspartofthisSSAUSFstudy,theauthorshaveconcludedthatalthoughtherearesomeexamplesofwell-conceivedandwellimplementedFunds,itisextremelydifficulttopointtomanyFundsthatembodyallofthepositiveelementsthatwouldcontributetoahighlysuccessfulandeffectiveFund,creatingasustainableeconomicvalueintermsofeconomicdevelopment.

05.

5.1

intROductiOn

79. http://www.ictregulationtoolkit.org/en/Section.3116.html

56

SSA USF STUDY

57

SSA USF STUDY

ThissectionexplorestheelementsneededtoensureasuccessfulUSFfund.These12essentialelementsforthesuccessfuldesignandadministrationofafundare:

1. Asoundandflexiblelegalandregulatoryframework

2. Afundmustbeautonomousandindependentinnature

3. Clearpolicyarticulation4. Consultationwithstakeholders5. Cleardelineationofresponsibilities

betweenUSFsandotherexternalorganisations

6. Definedandmeasurableobjectives7. Flexibilityandneutralityinservice

development8. Fairandobjectiveprojectallocation

process9. Capacitybuildingandsustainability10. Innovationandincentives11. visibility,transparencyand

accountability12. Digitalinclusion

Eachelementisexploredinmoredetailbelow.Whereverpossible,SSAexampleshavebeenutilised.Whensuchexamplesarenotavailable,referencesaremadetosuccessfulexamplesinotherregions.

5.2.1 sOund and flexible leGal and ReGulatORy fRaMeWORk

OneofthefundamentalsuccessfactorsnecessarytoprovideasolidanddevelopmentallyorientedfoundationforUSFsisalegalorregulatoryframeworkthatisflexibleenoughsoasnottoimpedeevolutionandchangeasneedediscriticaltothesuccessfulongoingfunctioningofaUSF.Therearesomecountriesthathavebeenabletochangethescopeand/ordirectionoftheUSFbecauseofthisunderlyingflexibility.

InGhana,thelegislativeflexibilityallowedGIFECtobroadenitsmandatetoincludetheprovisionofaccesstoelectronicservicesincludingICT,broadcasting,internetandmultimediaservice.AnotherexampleisNigeriawhere,basedonanassessmentofthefundperformance,theadministratorsareintheprocessoftransitioningandenhancingmanyaspectsofthefundbecausetheunderlyingframeworkenablesthemtomakechanges.

5.2.2 autOnOMy and indePendence

Withintheportfoliooffundsexamined,therearesomefundsthathavebeenstructuredtooperateinafullyautonomousmanner.Anexampleofhowthisfunctionsisasfollows.Innigeria,thefundisaseparateentity–theUSPF;theBoardofDirectorsisformedwithrepresentativesofboththeprivateandpublicsectors.ThisautonomyhasallowedtheBoardtoundertakeanin-depthexaminationofsomeperformanceissuesandtoaddressthisthrougharevamping/re-orientationofthefund

5.2.3 POlicy aRticulatiOn

AlthoughthetelecommunicationsorICTlawprovidesdirectionforthecreationofaUSF,thisisgenerallyatahighlevel.ThishighleveldirectiveneedstobecomplementedandsupportedbyacleararticulationoftheoverallUSFvisionandpolicyinadditiontotheactivitiesneededtocarryoutthepolicy.Inordertodoso,someofthefundamentalquestionstobekeptinmindare:Whatisthefundseekingtoaccomplishandhowshoulditsresourcesbeallocatedtoachievetheseobjectives?Thispolicyarticulationisoneofthefundamentalelementsofasuccessful

5.2

basic eleMents and cHaRacteRistics Of a successful usf

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USF,someexamplesofwhichareasfollows.TheregulatorinBurkinaFasoregularlypublishesUSFstrategiesandgoalsthatincludenationalcoveragegoals.80InUganda,theUSFpolicyclearlydefinesthephasesoftheUSF,theobjectivesandhowtheseobjectivesshouldbeattained.

5.2.4 cOnsultatiOn WitH stakeHOldeRs

Theconceptofstakeholderconsultationisrecognisedasextremelyvaluableinthatitisoftentheoperatorsandothertelecomplayersthathavein-depthknowledgeand,assuch,areabletooffervaluablesuggestionsandguidanceasregardsfundfocusandexecution.ThisalsofostersthenotionthattheUSFmanagementistransparentwithwellentrenchedconsultativeprocesses.InthecaseofGhana,theBoardofTrusteesforthefundincludesarepresentativefromeachmajortelecomoperator.

InMorocco,operatorshaveanumberofoptionsregardingthemannerinwhichtheycanfulfiltheirUSFobligations.Theseinclude:

• Takethe‘traditional’USFrouteandpay2%ofgrossrevenuesperannum.

• RespondtotendersissuedbytheUniversalTelecommunicationsServicesManagementCommittee(CGUST).

• DevelopandproposetheirownUniversalServiceprojects.

AlloperatorsarefreetorespondtotendersissuedbytheCGSUTandtoparticipateinacompetitivebiddingprocess.AnyoperatorthatwouldliketodevelopandexecuteitsownuniversalserviceprojectsmaysubmitaproposaltotheCGSUTforreviewandapprovalatwhichtimetheCGUSTwill:

• Dictatethetermsandconditions;and• Prepareatermsheetintheformof

anauthorisationorlicence(cahierdescharges).

Forthoseoperatorsthatelecttoparticipateinthe‘play’approach,attheendofeachfinancialyear,theoperatorspaythedifference(ifany)betweenthefullUSFamountthatwouldhavebeencollectedfromthem(i.e.,thetwopercentlevy)versustheamountexpendedbytheminfulfillingtheUSFprojects.Althoughthisapproachmaynotbeperfect,thePayorPlayconceptdoesachieveseveraldesirablegoals:

• Operatorshavetheopportunitytoactivelyparticipateinthedesignofuniversalserviceprojects.

• Thereisanopportunitytoactuallyseetheprojectstowhichthefundsarebeingdirected.

• Thereistheabilitytoreducealevythatindirectlygetsallocatedtootheroperatorsandtomakesurethattheoperatorthatcontributesisabletobenefitdirectlyfromthatcontribution.

5.2.5 delineatiOn Of ResPOnsibilities betWeen tHe usf and OtHeR exteRnal ORGanisatiOns

Clarityisimportantinanyundertaking,especiallywhenattemptingtorespondtotheoftenurgentrequirementsofaUSFprojectcandidate.Therefore,guidelinesandproceduresforworkingwithothergovernmententitiesorfundingsourcesassistintheadministrativeeffectivenessofthefund.InSouthAfrica,adetailedUSFoperatingmanualhasjustveryrecentlybeenpreparedwherebyitdefinesandallocatesrolesandresponsibilities,includingwithotherorganisationssuchastheSouthAfricaBroadbandForum.

5.2.6 defined and MeasuRable Objectives

TheUSFpolicyarticulationreferencedaboveinsection5.2.3abovemustbebolsteredbythedevelopmentofdefined

80. It is important to note that although the strategy publication is commendable, there is no evidence to date that any of the recommendations have ever been implemented.

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andmeasurableobjectives.Withoutclearlydefinedobjectives,itisextremelydifficult,ifnotunachievable,toascertaintheextenttowhichthefundhasbeeneffectiveincarryingouttheoverallpolicyandvisionasregardsthefundingofuniversalservicerequirements.Thisinstilsgreaterconfidenceinthestakeholdersandencouragesoverallsupportoftheprogramme.SpecificexamplesofthiswerenotevidentinSSAwheredefinedobjectivesaretypicallyconfinedtoalistingofprojectstobeundertaken;thereforethefollowingexamplesarecited:

• colombia:Thefundproducesafouryearplanwithtargets,detailedprojectdescriptionsandtheprojectedassociatedcostoftheprojects.

• Peru:FITELproducesanannualreportonfundperformancewithrespecttoprojectallocationandprojectperformanceversustarget;thisreportalsoliststheprojectsandrelatedtargetstobeaddressedinthesubsequentfiscalyear.

5.2.7 flexibility and neutRality in seRvice dePlOyMent

Oneofthekeysuccessfactorsthatcannotbeoverlookedistheunderlyingneedforatechnologyneutralapproachinservicedeployment.Today,technologyandservicesevolveatsucharapidpacethatnoentitycanbeexpectedtoaccuratelypredicthowthemannerinwhichtechnologywillevolveandatwhatpace.Therefore,theguidingphilosophyshouldbethatanytechnologycanbeutilisedanddeployedprovidedthatitcorrespondstoaninternationalrecognisedstandardandcansatisfytheserviceand/orcoveragerequirements.Theflexibilityofatechnologyneutralapproachhasbeenparticularlyinstrumentalinthedeploymentofbroadbandgiventhehugeandburgeoningglobaldemandforthisservice.

5.2.8 faiR and Objective PROject allOcatiOn PROcess

AnequitableprojectallocationprocessneedstobeprecededbyanequitablefundcontributionprocesswiththeunderstandingthatthosewhocontributetoaUSFcanalso,wherefeasible,havethepotentialtobidand/orapplyforprojectsthatwillbefinancedviatheUSFmechanism.Thefundadministrationmustestablishclearandunderstandablecriteriaforproposedprojectsandforevaluatingprojectproposals.Thisshouldbefollowedbyaformalproposalsolicitationandevaluationprocesstoapproveselectedbidsandtodistributefunds.InordertoensurethegreatestpossibleparticipationinaUSFprojectallocationprocess,projectandbidannouncementsneedtobewidelydisseminatedsoastoencouragethemaximumnumberofinterestedparticipants.Oneofthemostsuccessfulapproacheshasbeentheuseofawell-publicised,competitiveandtransparentbiddingprocesssuchasthatusedinNigeria(leastcostsubsidywithsuccessfulbidderspostedonthefund’swebsite).

5.2.9 caPacity buildinG and sustainability

Inadditiontoprovidingbasictelecommunicationsinfrastructureandservices,fundsmusttakeintoaccounttheneedforsustainabilityasdemonstratedbelow.Sustainabilityisunderpinnedbytargetedandcomprehensivetrainingandothereducationalprogrammesdesignedtoensureself-sufficiencyinareassuchastheoperationoftele-centresorcommunitycentresand,inaddition,tofacilitatetheuseoftelecommunicationstechnologiesbypopulationsegmentswhohavepreviouslyhadlittleornoaccesstotelecommunicationsofanykind.Theconceptofsustainabilityshouldalsoencompassthedevelopmentofcontentand/orapplicationsthathavethepotentialtoassistthoserequiringaccesstospecialisedtelecommunicationsservices–

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servicesthataredesignedtoimproveandenrichthelivesofthosewhorequirethem.InLesotho,forinstance,contentdevelopersareeligibleforfundingviatheUSFwhereasinUganda,thefundpermitstheadditionofsupplementaryservicestostimulateuseoftele-centresandvillagephones,content,etc.

5.2.10 innOvatiOn and incentives

Inordertoencourageeffectiveprojectexecution,somefundsprovideincentivesforefficientdeploymentand/orinnovationandcost-minimisationwherefeasibleinsteadofdirectandimmediatereimbursement.Thisalsorequireseffectivefundadministrationandprojectoversighttoensurethattheincentivesarewarranted.The‘payorplayconcept’inMoroccoasdiscussedinsection5.2.4above,isoneofthefewexamplesofspecificattemptstomotivateoperatorsprovidingaUSFservicetoidentify,helpplanandultimatelydeliverthefacilitiesand/orservice.

5.2.11 visibility, tRansPaRency and accOuntability

GiventhesignificantamountofthecontributionscollectedfrommostoperatorsandconsideringthattheunderlyingregulationsgoverningindividualUSFsfrequentlyrequireregularreportingoffinancialresults,visibilityandtransparencyareparamount.ExamplesinSSAarelimitedbutthenewlyrevampedUSAASAinSouthAfricaistryingtoadoptthispracticeasexemplifiedbytheprojectbudgetsnowbeingpostedonitswebsite(pleaserefertoexamplesinsection4.–DeepDiveAnalysis).

5.2.12 diGital inclusiOn

Anumberoffundshaveattemptedtoaddressthespecialcircumstancesorrequirementsoftargetpopulationsectorssuchasthepersonswithdisabilities,theelderly,indigenouspeopleandwomenandgirlswhereasothersalsoattempttoaddresstheconnectivityneedsofanchorinstitutions.Althoughtherearequiteafewexamplesofanchorinstitutionconnectivity,therearefewerexamplesofsuccessfactorsinfundsthathavetranslatedpolicyintoactionasregardsinclusionofpersonswithdisabilities.TheexamplesofsuccessfactorsasregardsdigitalinclusionofgirlsandwomenareforthetimebeingextremelylimitedgloballyandevenmoresoinSSA.however,ofnoteisGhanawhereGIFECisestablishinghybridfor-profittele-centreandnon-profitcommunityresourcecentrestargetingthegeneralcommunitymembers,schoolchildren,youthoutofschool,womenandwomen’sgroups.Therearealso‘EasyBusinessCentres’forPersonswithDisability.AnotherexampleisinMauritaniawherethefundintroducedanInformationandTelecommunicationsCentreforpeoplewithdisabilitiesinwhichtrainingandservicesarealsotobeprovided.

Common challenges in the administration of UsFs in ssA

ItshouldcomeaslittlesurprisethatthereareavarietyofchallengesassociatedwithadministeringUSFsinSSA.Somemaybedirectlyattributabletotheflawsorshortcomingsintheunderlyinglegalandregulatoryframeworkbutothersmaysimplybeareflectionoftheconditionsprevalentinthecountryinwhichthefundisoperatingorthechallengescouldalsobetheresultofthefundamentaleconomicunviabilityofthefunddesign.Alistofsomeofthemostcommonlyencounteredchallengesandpitfallsareprovidedinthesubsequentsection.

Theunderlyinglegalframeworksformanyfundsseemtohavenotbeenwellthoughtoutorconceivedfromtheoutset(e.g.,nottechnologyneutralorserviceflexible,excessivelybureaucratic,insufficientoversight,etc.)andthishasresultedinanumberofineffectiveorseverelyconstrainedfunds.Inanumberofcases,forinstance,theframeworkisdesignedtosupportfundingonlyoffixed-lineservices.however,insomecases,thiscanbeattributedtothefactthatatthetimeatwhichsomeoftheUSFswerecreated,manydidnotanticipatetheexplosivedevelopmentofmobiletechnology,norindeedothertechnologies.Thesesameissueswithrespecttounderlyinglegalframeworksalsoposeamajorchallengetotheintroductionofruralandnon-commerciallyviablebroadbandthroughtheUSFfundingmechanismbecausemanyoftheframeworksrequirelegalorregulatorychangesinmanycasesinordertoincludetheprovisionofbroadband.

Basedontheageofmanyfunds,somewhatunderstandably,verylittleornoconsiderationwasgivenatthetimeoftheirinceptiontothepossibilityofancillaryandcomplementaryservicesortoolsthatmightneedtobeprovidedinconjunctionwithorinadditiontotheUSFfundedproject(e.g.,improvedpowersources,theneedforaccessroads,requirementfortraining,equipmentneededtocomplementbasictelephonyintele-centres,theneedtodevelopspecificcontentandapplications,etc.).

06.

6.1

OveRvieW

6.2

undeRlyinG leGal and ReGulatORy fRaMeWORk

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Inanumberofcases,thelaworregulationisverygeneralinnatureandrequirestheissuanceofasupportingdecreeorregulationinorderforthefundtobecomefullydefinedandoperational.Forreasonsthatseemquiteunclearinthemajorityofcountrieswheresuchasituationexists,therewouldappeartobelittleornosubsequentefforttoprepareorissuetherequireddecree,rulesorinstructionsthatwillgoverntheoperationofthefund.Thishasresultedinanumberoffundswherethelevyisestablishedandcollectedbutnorelatedfundactivityisinitiated,therebyresultingincollectedmoniespresumablyremainingdormantandnotbeingputtotheuseforwhichtheywereintended.

Asaresultofeithertheabove-referencedrestrictionsoroversightsinthelegalandregulatoryframeworkorduetoagenerallackofabilityorsometimesthewillonthepartofregulatorsandfundadministrators,manySSAfundsintheircurrentstatecannotbeadaptedtonewconditionsandrequirementsorcannotevolveinaccordancewithtechnologicalorsocietalchange.Therefore,suchfundsarelessflexiblethanneededandtheseconstraintscanstiflethelevelofresponsivenessandusefulnessofthefundasregardstheneedsoftheunservedand/orunderserved.Ithasbeenclearforanumberofyearsthatmanyfundsintheircurrentstate,basedonthedefinitionoftheoverallobjectivesandthestipulatedfocusareas,havebecomelesseffectivethanwouldbedesiredandwouldrequirestructuralchange.however,todate,onlyalimitednumberofcountriesfacedwiththeseconstraintshaveattempted,whetherthroughlegislative,regulatoryorpolicychanges,torevamporre-orientthefundmission,structureandadministration.Itisanticipatedthatthiscouldbeaproblemgoingforwardevenforsomeofthefundsthathaveamorefuture-orientedframeworkandpolicygiventhatoutlooksandwhatisviewedasforwardthinkingatonestagecanbecomerapidlyoutdatedinthefaceofrapidsocietalchangeandtechnologicalevolution.81

Ingeneral,evenforthemosteffectivefunds,theleviesandtaxesestablishedformostUSFcontributionsappeartohavebeenestablishedwithoutconductingsubstantiveanalysisregardingtheactualservicefunding/subsidylevelsneededand,asaresult,manyfundsreceivecontributionsthatappeartobefarinexcessoftheactualuniversalservicefundingneedsorcapabilities(pleaserefertosection3.2.4above),withnoconcreteplansregardinghowtoaddressthis‘overfunding”.Inothercases,thefundsseemtohavedifficultiesindevelopingenoughprojectstoutiliseadequatelytheleviescollected.Inmanyinstances,thisisduetotheabsenceofaccessgapevaluationsaswellasmeaningfuldemographicsurveys.Ineithercase,thiscanresultinsubstantial,undisbursedsurplusesinthefunds.

6.3

difficulty tO adaPt tO cHanGinG RequiReMents and fOcus

6.4

cORRelatiOn betWeen usf levies and deMand

81. For instance, in ItU trends in telecommunications 2003, considerable effort and emphasis were devoted to what constituted an ideal USF. However, the vision at the time did not take into account many factors that are considered very important in 2014 (e.g., e-applications, sustainability, etc.

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Manyfundsareconstrainedbecauseofbasicstructuraldeficienciesthatcanbemanifestedinmanydifferentforms.however,ingeneral,deficienciescouldincludeitemssuchasacleardefinitionofrolesandresponsibilitiesordetailedguidelinesregardingthemannerinwhichleviesshouldbecalculatedandsubsequentlyappliedandcollected.Otherexamplesmayincludetheweakorambiguousdefinitionsofwhatthefundscanaddress,resultinginconstrainedapproachestoprojectidentificationandallocation.Inthefundsinwhichsomedegreeofstructuraldeficienciesexists,someofthedifficultiesandchallengesbeingencounteredare:

ManyUSFsdonothaveacleararticulationofeitheroverallUSFstrategyorobjectives.Inadditiontocausingthedifficultiesmentionedwithrespecttooversightandgovernance,thelackofaclearstrategyhasresultedinanumberofissuesandobstacleswithanumberoffundssuchasaninabilitytoadequatelysettargetsoraninabilitytodemonstratewhatthefundhasachievedintermsofcoverageorinmeetingoverallobligationsofthefund(inmanycases,theseelementshaveneverbeenstatedinthefirstplace).

ManyfundshavebeenhamperedorevengreatlyimpactedbythechoiceofmanagementpersonnelwholacktherequisiteskillsandbackgroundrequiredfortheeffectiveadministrationofaUSFandthissituationresultsinineffectiveoveralladministration.ThereappearstobeseveralbasicreasonsforthissituationincludinginappropriatedefinitionofboththevariousUSFmanagementrolesandtheskillsetandexperienceneededtofulfiltheroles.Inadditiontotheseshortcomingsatthefundmanagementlevel,similarsituationsoccurattheprojectlevelwheretheprojectdescriptionanddefinitionsdonotnecessarilytakeintoaccountalloftheexperience,skilllevelsortimecommitmentsneededforsuccessfulprojectexecution.Furthermore,inanumberofcases,theresourceswithinthefundmanagementteamarenotinapositiontobeabletocloselymonitorand/oroverseesuccessfulprojectexecution.

6.5

stRuctuRal deficiencies

6.6

definitiOn Of usf stRateGy and Objectives

6.7

ManaGeRial, OPeRatiOnal and caPacity issues

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Thereisasignificantabsenceoffinancialreportingamongsttheexistingfunds.Ofthecountriesincludedinthisstudy,over75%havenoformalpublicreportingprocessinplaceregardingtheuseandmanagementoffundsormanyhavenotfollowedtheprescribedreportingprocesseventhoughinmanysuchcasestheydopublishsomeadhocprojectreports.Consequently,itisfrequentlydifficulttoascertainstatusofprojectsinprogressandinmanycases,thereareunclear,contradictoryornon-existentrelationshipspresentedbetweenfundscollected,fundsdisbursedandremainingbalance.Theperceivedtransparencyissueissevereenoughthattherehavebeenvariousallegations(andevencorroboration)offinancialmismanagementassociatedwithanumberoffunds.

Eveninfundswherethereisadegreeofautonomyandindependence,therearecaseswherepoliticalinterventionorinterferencefromothergovernmentagenciesaffectthefund’sperformance.Inothercases,thegovernanceprocessasestablishedhasneglectedtotakeintoaccounttheexternalfactorsthatimpedeoversightandgovernancesuchas,forinstance,delaysinbudgetapprovalswhenthesearerequiredfromParliamentortheNationalAssembly(orsimilar),orwheremultipleapprovalsarerequiredfromanumberofdifferentcommitteesandgovernmentorganisations.Incaseswherethegovernanceprinciplesandruleshavenotbeenadequatelyarticulated,legaldisputesormajordelayshavefrequentlyensued.

Theprojectallocationprocessisoneoftheotherareasinwhichfundperformancecanbesignificantlyaffected.Lackofqualifiedand/orinterestedvendorstobidonprojectsorflaweddesignofeconomicincentivesforvendorstobidareallelementsthatcanimpactUSFprojects.Overallshortcomingsoroversightsinthestructuring,allocation,administrationandmonitoringofprojectswillonlyresultininferiorprojectinceptionandimplementationor,insomecases,inunsuccessfulandabandonedprojects.Evenwhenmanyoftheactivefundsappeartohavetransparentprojectallocationprocesses,theballoftenstartstodropintermsofprojectmonitoring,trackingandreporting.

6.8

tRansPaRency, visibility and accOuntability in usf RePORtinG

6.9

OveRsiGHt and GOveRnance

6.10

PROject allOcatiOn PROcess

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AlthoughthischallengeisalreadyalludedtointheexaminationoftechnologyandservicelimitationsstemmingfrommisstepsintheformulationofUSFlegislationandregulation,theconstraintstobroadbanddeploymentrepresentoneofthemostsignificantdrawbackstomanyfundsinSSA.Withtheever-escalatingglobaldemandforrapidandeasyaccesstoinformationandthegrowingevidenceoftheeconomicandsocialbenefitsgeneratedbybroadbandimplementation,therestrictionsofmanyUSFsasregardsfinancingofbroadbandisamajorhurdle.TheBroadbandCommissionhascalledfortheincreaseduseofUSFstofundbroadbandbutthiscallfailstoconsiderthemanyconstraints.Therearemanyfundsthathaveadequatefinancialresourcestohelpfinancebroadbanddeploymentbutthefundssitidlebecausetheycannotbedisbursedforthispurpose.

ItisimportanttokeepinmindthattheoftenremoteanddifficulttoserveareasrequiringsupportfromUSFsarealsolackinginotherbasicnecessities;notjustadequatecommunications.Inmanycases,theUSFprogrammesfailtoconsidertheneedforpowersources,accesstowater,ongoingmaintenance,securityandothersustainabilityrequirements.Teleandcommunitycentresareoflimiteduseiftheycannotbeadequatelymaintainedwithreliablepowersourcesorifthereislackofpotablewaterorsanitation,tonamebutafewexamples.Thesehurdlesaresometimesencounteredbecausethefundmanagementhasnotcarriedoutanypre-projectsurveysandthustheseconditionsarenotconsideredintheoverallprojectdefinitionandstructure.

Inmanyinstances,theprogrammesandtargetsestablishedforthedeploymentoftele-centres,communityinformationcentresandcyberlabshavefailedtotakeintoaccountissuesrelatedtotrainingandeducationthatneedtobeaddressedduetowidespreadilliteracyandgenerallackofknowledgeamongstmanysegmentsofpooranddisadvantagedpopulations.Providingaccesstoadvancedinformationtechnologiesrequireswidespreadeducationandawarenessoftheiravailability,aswellasbuildingtheknowledgeandskillsnecessarytousetheserviceseffectively.TrainingandeducationrequirementsarenotconfinedtorecipientsoftheUSFprojects.ThesuccessfulexecutionofmanyUSFprojectsalsohasbeenhamperedbythelackofadequatelytrainedstafftomaintainservicessuchastele-centres.Thissamescarcityofresourcesappliestotheneedtohaveaccesstoindividualswiththerightskillsetandknowledgetoassistinandorcarryoutdevelopmentoftheapplicationsandcontentoftenneededtosupplement/reinforcetheservicestobeprovided.

6.11

cOnstRaints tO bROadband dePlOyMent

6.12

undeRlyinG infRastRuctuRe and facilities

6.13

availability Of ResOuRces and knOWledGe

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ThenatureoftheremoteandoftendifficultareastobecoveredbyUSFsmeansthattherearelocalsituationsthatimpedeortotallypreventUSFprojectsfrommovingforward.Theseincludefactorssuchashostileterrain,andprecariouspoliticalsituations(e.g.,politicalunrest,civilunrestorinsurgentactivity,etc.).Insuchsituations,thereislittletobedoneotherthanto‘waititout’untilthesituationbecomeslessproblematic.

TheoverallconceptofdigitalinclusionhasbeenoverlookedbythemajorityofSSAfundsincludedinthisstudy.Onceagain,inmanycases,therootofthisexclusionstemsfromanoversightorexclusioninthecraftingoftheinitialUSFlegalandlegislativeframeworkandthus,digitalinclusioncannotbeaddressedwithoutchangestothisunderlyinglegislationand/orframework.however,thisisnotalwaysthecase,anditisalsoimportanttonotethatwhileanumberoffundshavearticulatedapolicywithrespecttospecificelementsofdigitalinclusionsuchasservicesforpersonswithdisabilities,manyofthesesamefundshavesofarnottranslatedthearticulatedpolicyintospecifictargetsandactions.AlthoughmanyoftheSSAfundsintheorynowsupportthecreationoftele-centres,eitherthepolicyorthedefinedtargetsfortele-centreshavenottakenintoaccounttheaccessibility,assistanceforpersonswithdisabilitiestheneedtotargetandsupportservicesforgirlsandwomen.

6.14

lOcal cOnditiOns and Related secuRity

6.15

cOnsideRatiOn Of diGital inclusiOn

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RecommendationsAsdemonstratedintheprecedinganalysesandasfurtherreinforcedinsection8below,thecurrentperformanceofmostUSFsinSSAfallsfarshortofachievingtheuniversalservicegoalsthatweretheinitialcatalystsfortheformationoftheseUSFs.Withonlyafewnoteworthyexceptions,governmentsandadministrationsinSSAhavesofarbeenunabletoaddressandresolvethemanyshortcomingsprevalentinsomanyofthefundseventhoughthesedeficiencieshavebeenknownforquitesometime.Giventhenumberofinactivefundsorfundswithverylittleactivityoveralongperiodoftime,itislikelythatmorecouldbeachievedbyclosingthecompletelyinactivefundsandreturningtotheoperatorstheleviesthathavebeencollectedbutneverutilised.Thefundscouldbereturnedwiththestipulationthattheybeutilisedtohelpdevelopservicestoruralandotherunderservedareaswithparticularemphasisonthedeploymentofmobilebroadband.however,theapproachofclosingfundswithalmostimmediateeffectcouldbechallengingtoimplement.Insuchcases(orevenincaseswherefundscollectmoremoneythantheycanreasonablyspend)anotherpossiblesolutionistograduallyreducetheleviesandphaseouttheUSFovertime.

Inaddition,theGSMAstronglyrecommendsthatgovernmentsthatarecurrentlyconsideringbuthavenotyetimplementedUSFsexploreallotherpossibleuniversalservicecoverageandfundingmechanisms(e.g.,PPP,licenceconditions,etc.)beforemovingforwardwiththecreationofanynewUSFs.

however,incaseswheretheeliminationorgradualphasingoutofUSFsseemsunlikelyorwhereithasalreadybeendecidedtomoveforwardwiththecreationofanewUSF,thereisapressingandurgentneedtoaddress,modifyandcorrecttheunderlyingstructuraldeficiencies,overallconditionsandgovernanceneededtoensurethattheUSFs

canbeaswell-managedandeffectiveaspossibleinrespondingtotheuniversalservicetechnologies,servicesandapplicationsinneedoffunding.Inordertoeffectthesemuchneededimprovementsandmodificationstothefunds,thefollowingelementsmustbeincorporated.

1. Creationofawell-articulatedpolicywithrespecttohowUniversalService(US)goalswillbeachievedandhowtheUSFwillbeputtousetoassistinattainingthesegoals

2.Developmentofanappropriateandwell-definedunderpinninglegalandregulatoryframework

3.EstablishmentoftheUSFasseparate,independent(autonomous)entityfreefrompoliticalinterference

4.Cleardefinitionanddelineationoffundresponsibilities

5.Developmentandcleararticulationofmeasurableoverallfundobjectiveswhichcansubsequentlybetrackedandmonitored

6.highleveloftransparency,visibilityandaccountabilitytoallstakeholders

7.Activeparticipationinandinputfromallconcernedstakeholdersregardingfundobjectivesandadministration

8.Guidelinesandproceduresforworkingwithotherfundingsources

9.Ensurethatthefullrangeofsustainabilityelementsandcomplementary/ancillaryservicesaretakenintoconsiderationinbothpolicyformulationandprojectdefinitions

10.Creationofafairandunbiasedprocesstoallocateprojectsandsubsidies

11.Developmentofincentivesforprojectparticipants

12.Implementationofpoliciesthatincorporatedigitalinclusion

07.

UsF overview tables

Thissectionpresentskeyinformationcountrybycountryintableformat.Theinformationsummarisedinthetablesisintendedtoprovideanoverviewofthestructure,governanceandperformanceofthefundsincludedinthisstudy.Whereavailable,arecapispresentedofthemostrecentUSFprojectsineachcountry.

08.

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8.1

buRkina fasO

buRkina fasO

year fund established: 2000 legal and administrative establishment. 2001: commencement of levy collection.

OverallFundStructureandOperation

Fondd’AccèsauServiceUniversel:thefundismanagedbyARCE(Autoritéderégulationdescommunicationsélectroniques).ARCEisresponsibleforcollectingfundswhereastheresourcesoftheFundaretobemanagedbyaCouncilcomprisedofrepresentativesoftherelevantMinistriesandpresidedoverbytheMinisterofCommunications.

ContributionTypeandFrequency

2% of annual revenue netofinterconnectionpaymentsfromalloperatorshavinganindividuallicence,paidonamonthlybasisandcalculatedonthepreviousmonth’srevenues.TheGovernmentandlocalauthoritiescanalsocontributetothefund.Thelawprovidesforallocationofsomeoftheneworrenewallicencefeesforthebenefitofthefund.

ServicesCurrentlyAuthorisedUndertheExistingFramework

•Fixed-lineprivateresidentialservice•Fixed-linepublicpayphoneservice•Individualmobile-cellularservice•Publicmobilepayphoneservice•Broadband•Tele-centres•Schools(primary,secondarypost-secondary)•healthcentres•Emergencyservices•Specialservicesforpersonswithdisabilitiesandelderpersons•Directoryservices,andotherservicesdefinedbytheregulator

Theaimoftheuniversalservicestrategywastocompletecoverageofthenationalterritory,includingcoverageof5,200villagesby2010.

The2003NationalStrategyidentifieszonestobecoveredbytheuniversalserviceprojectandmandatestheMinistry,throughtheregulator,tocarryoutthestrategy.TheStrategyalsodividedthecountryinto13regions,eachrepresentingaprojectarea(eachareaisequivalenttoanadministrativeregion).The2005UniversalServiceStrategyidentifiedanumberoftargets:•Providepublicvoicetelephonyservicetoanaverageof70%ofselectedrurallocalitiesinagiven

region;•95%ofselectedlocalitiesmustbewithin5kmofonepublicaccesspoint;•Privateservicemustbeavailableinruralareaswithpricesnomorethan25%abovepublishedfixed

andmobiletariffs;and•InternetPOPsineachprovincialcapitalineachtenderedregion.TheICTstrategyfor2006-2010includesgoalsfortheUniversalServiceFund,includingbroadeningtheareascoveredbythefundtoincludetheproductionofmultimediacontentinnationallanguages,theintroductionofICTinhealthandeducation,universalpostalservice,trainingandpromotionofe-jobs.

FundAllocationProcess

OperatorsandothertelecomserviceprovidersareeligibleexceptforoperatorswhodonotcontributetotheFund(thesebecomeeligibleonlyifnocontributingcandidateisselected).Originally,foreachregion,localesnotcoveredbytheincumbent’slicencewereidentifiedwiththeintentionofgrantinglicencestoruraloperatorsthroughatenderprocess.Onlytheincumbent,OfficeNationaldesTélécommunications(ONATEL),andexistingmobileoperatorscanapplyforsuchlicences.Inthefirststage,apilotareawasdefined,workingwiththeincumbentfortheprovisionofservicetothisarea.Underthe2011Decree,theallocationmechanismisthefollowing:•TheRegulatorsetsupalistofvillagesthatareinneedofuniversalservice;•TheinterestedvillagessendalettertotheTelecomsMinisterexplainingtheirrequirements;•TheRegulatorpreparesacomparativestudyoftheprojectsandinvitesoperatorstoapplyfora

project;•OnlyprojectswhicharenotprofitablecanbefinancedthroughtheFund;and•Thefundsaredisbursedonlyaftercompleteexecutionoftheproject.

Governance SupervisioniscarriedoutbytheCouncil.FundsareauditedannuallybytheInspection Générale des Finances,andARCEmustsubmitcertifiedfinancialaccountstotheMinistryofFinanceatthelatestsixmonthsaftertheendofeachfinancialyear.Inaddition,ARCEmustpublishanannualactivityreportbyMarch30ofeachyear.however,noneofthisisdone.

LevelofActivity

inactiveno financial reporting

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8.2

caMeROOn

8.3

cOte d’ivOiRe

cOte d’ivOiRe

year fund established: 1998: legal establishment; 2006: administration and collection


TheNationalTelecommunicationsFundisanAccountoftheRegulator:Coted’IvoireTelecommunicationsAuthority(CITA).TheaccountwascreatedattheNationalInvestmentBank(BNI).

TheFundismanagedbyaManagementCommittee,nominatedbythevariousMinistries-10members:MinistryofEconomicInfrastructure,PlanningandDevelopment,NationalTreasury,CITAandchairedbyMinistryofFinance&EconomywhichcanbereplacedbytheMinistryofTelecoms.TheManagementCommitteeisassistedbyaTechnicalCommitteecomposedof:•MinistryofFinance&Economy•MinistryofEconomicDevelopment•NationalOfficeforTechnicalandDevelopmentalStudies•CITA•Coted’IvoireTelecom•Onerepresentativeofanotheroperator

caMeROOn year fund established: 2012


TheTelecommunicationsRegulatoryBoardofCameroon(ART)isinchargeoforganisingandsupervisingtheFund.TheMinisterinchargeisassistedinthedaytodayactivitiesbya:•Technicalsecretariatandacommitteethatselectsthebestprojects;•Financecontrollerwhovalidatesexpenses;and•Accountingofficerwhopaysallexpenses.


3% of untaxed annual turnoverofoperators;grants(whenprovidedbythegovernment),percentageoffeesforthesale/renewaloflicencesaswellasinternationaldonations,grants,etc.


ThelawrequiresthattheFundprovidesbasictelecommunicationservicestoallatacertainpricinglevel.Italsoincludes:routingemergencycallsfreeofchargeandprovisionofinformationserviceandasubscriberdirectory.TheFundalsopaysallfinancialcontributionstoTelecom/ICTinternationalbodies.


Competitivebidinaccordancewithpublicprocurementrules.

Governance TheFundismanagedusingpublicaccountingrulesandisauditedbytheMinistryinchargeoftheSupremestatecontrolandaccountingbranchoftheSupremeCourt.TheMinisterinchargeofTelecommunicationsistheONLyauthorisedofficeroftheFund,andreportsregularlytothePrimeMinisteronthemanagementoftheFund.

LevelofActivity Moderate activity.TheFundhascontributedtotheWestAfricanSubmarineCable,financedtheinterconnectionofministerialdepartmentsand,isintheprocessofconstructinganumberoftele-centres.Itisalsoplanningtofinancetheconnectionoflowincomehouseholdsusingfibreoptics,andisparticipatinginconnectingall10regionalheadquartersthroughfibreoptics.no financial reporting to date but the fund is still relatively new.

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2% of Gross annual Revenues from mobile operators only.Accordingtothe1998Decree,othersourcescanbeused,suchas:•LoansbytheFund•RevenuesfromFund’sinvestments•ContributionsfromStatebudget•Gifts•Othertaxesontelecommunication•Anyothersource


Accordingtothe1998Decree,ruralinfrastructureprojectsarethefocus.Universalserviceisdefined:•Fixed-lineprivateresidentialservice•Fixed-linepublicpayphoneservice•Dial-upInternetaccess•Emergencyservices•Directoryservices.


Basedoncompetitivebids.

Governance EconomicandFinancialsupervisioniseffectedbytheMinistryofFinance&Economy;technicalsupervisionbytheMinistryofEconomicInfrastructure.

LevelofActivity

Operational. low activity.no known financial reporting.

8.4

deMOcRatic RePublic Of cOnGO

deMOcRatic RePublic OfcOnGO

year fund established: 2002 legally created, not yet functional.


The2002TelecommunicationsActprovidesthattheFundistobemanagedbytheregulator,butdoesnotmentionanyperiodicreviewsofthefundoruniversalserviceobligations.Sectorcontributions,intheformofalicencefee,godirectlytoPublicTreasury.


The2002TelecomsActstatedtheintentiontofinancetheprovisionofcoveredservicesthroughafundconstitutedofcontributionsassessedagainstalloperators,providersofservices,andmanufacturersorimportersoftelecommunicationsmaterials.NoamounthasbeencollectedascontributiontotheFundsyet.

Somelicencesprovidethat2% of Gross annual Revenues will also contribute to the usf, those amounts are, in fact, paid only as licence fees.


UniversalserviceisdefinedintheDRC2002TelecommunicationsActastherightofeveryCongolesetobenefitfromvoicetelephone,telex,andpublictelephoneservice,inrural,urbanandisolatedareas.


N/A

Governance Notknownyet

LevelofActivity inactiveno financial reporting

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8.6

GHana

8.5

GabOn

GabOn year fund established: legally in 2001: not yet set-up administratively.


FondsSpécialduServiceUniversel(SpecialFundforUniversalService)isadministeredbytheregulator,AgencedeRégulationdesCommunicationsElectroniquesetdesPostes(ARCEP).TheUSFissupposedtobeaseparateaccountfromARCEP’saccountatthePublicTreasury.TheDirectorGeneralofARCEPwillberesponsiblefortheFund’sreceivablesanddisbursementsunderthesupervisionofthePresidentofARCEP’sRegulatoryBoard


2% of net revenue per year from fixed and mobile operators.Thefundcanalsobefinancedbyotherfinancialsourcessuchasaidfrompublicorprivatefinancialorganisationsandterritorialgroups.


The2001Lawestablishesthatuniversalservicehastobeprovidedtoeverypersonwhorequestsbasictelecommunicationsservices.Basictelecommunicationsservicesincludeinternational,nationalandlocalfixedtelecommunicationsservicesfortelephone,facsimile,telex,andtelegraph,provisionofemergencycallservice,auniversaldirectory,informationserviceandserviceinthenationalterritorythroughtheinstallationofpublictelephoneboothsalongpublicroads.


Alltelecomoperatorsareeligible.ARCEPisresponsibleforimplementingtheuniversalserviceprogramme,whichwillallocateFundresourcestooperatorsthroughacompetitivebiddingprocess.ARCEPdetermineswhichcommunitiesareinneedofserviceandthelevelofsubsidiesnecessarytoachievecoverage,andsubmitsaplantotheMinistryforapproval.

Governance FinancialaccountsoftheFundmustbereportedtotheMinistryofTelecommunicationsnolaterthantheApril30ofeachyear,togetherwithamanagementandadministrationreport.AcopyshallalsobesenttotheMinisterofFinance.TheFund’saccountsareauditedbyARCEP’sChiefAccountantandsubsequentlysubmittedtotheAccountingCourtforrevision.

LevelofActivity inactiveno financial reportingOperatorshavebeenrefusingtopaytheUSFleviessince2009orearlierbecausethePresidentialdecreesettingouthowthefundshouldbeoperatedhasneverbeenissued.however,inlate2013,theregulatorissuedademandforbackpaymentandhasalsoissuedaninvoicefor2014-2015.Operatorsarestillrefusingtopay,citingthelicenceconditions.

GHana year fund established: launched in 2004, started in 2005 anddistributed since 2006. Replaced in 2008.


GIFTELwassetupasanagencyoftheMinistryofCommunications.ItwasestablishedasanindependentagencythatmanagestheFund.GIFECfundsaretobepaidintospecificbankaccounts.GIFECisservicedbyaSecretariatunderthedirectionoftheAdministratorofthefund(ChiefExecutive)anditoverseestheimplementationoftheFund’sprojects.


Licensedoperators(fixed/mobileoperators,andrecentlylicensedMNPCRDBserviceprovider)contribute 1% of their annual revenue (NetrevenuemeansGrossRevenuelessvAT,NationalhealthInsuranceLevy,CommunicationsServiceTaxandInterconnectCharges).

OtherlegalsourcesofGIFECfundinginclude:•MoniesprovidedbyParliament•MoniesthatmayaccruetotheFundfrominvestmentmadebytheTrusteesoftheFund•Donations,grantsandgifts•AnyothermoniesthatmaybecomelawfullypayabletotheFund.

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GIFTELwassetuptofacilitatetheprovisionofuniversalaccesstobasictelephonytotheunservedandunderservedcommunities.ProjectsthataresubsidisedthroughGIFECareprioritisedusingthefollowingcriteria:•Provisionofbasictelephonyservicetoruralareas;•Supportfortheestablishmentofaccesstovalue-addedservicesincludingintroductionofInternet

Points-of-Presence(PoPs)ineverydistrict.GIFECwidenedthescopeofitsmandatetoincludetheprovisionofaccesstoelectronicservicesincludingICT,broadcasting,internet,multimediaserviceandbasictelephony,fortheunservedandunderservedcommunities.


Disbursementmainlytakestheformofnon-commercialbutcompetitivegrants:•Forpublictelephonyprojects,InternetPoint-of-Presenceandtrainingcontractsbyopen

tender;and•Toapplicationsinruralareas,whichdonothaveservices,orseekingsupportfor‘ruralpackages’

toenhanceaccesstoservicesforpublictelephonykiosksortele-centresbutareseekingamountslessthanacertainUS$threshold,shallbebydirectdisbursementbasedonabusinessplandemonstratingfinancialviabilityorself-sustainability.

Byendof2009,projectshadbeenallocatedbasedonacompetitiveprocess:leastsubsidyrequestedfromqualifiedbidders.Infrastructuresubsidiesaretypicallyprovidedtothefirstentrantinanareaandthennewentrantssharethemast.

Theboardevaluatesproposalsfortheirtechnicalandfinancialviability.Criteriaforselectingtownsandvillagesfortheprojectdependonlocation,populationandsocio-economiccharacteristicse.g.,numberofschools,healthservices,economicactivities,telecommunicationssignalavailabilityandgeographicobstacles.

TenderingisconductedthroughtheNationalCompetitiveTenderingproceduresspecifiedinthePublicProcurementActoftheRepublicofGhana.AnycompanywhichimplementsprojectstoprovideICTfacilitiestounderservedareasiseligibletoparticipate.

Governance BoardofTrusteesofGIFEC:10trusteesthatincluderepresentativesfromtheNationalCommunicationsAuthority(NCA),theMinistryofCommunications,theparliamentaryselectcommitteeoncommunications,arepresentativefromeachlicensedtelecomoperatorandtheadministratorofthefund.TheMinistermaydirecttheTrusteesoftheGIFEConmattersofpolicy.

LevelofActivity High activityThefundhasbeenactivelydisbursingfundssince2006.no consistent financial reporting.UnderitsUniversalAccesstoElectronicCommunicationsProgramme,GIFECoversawthefollowinginitiatives:•CommonTelecommunicationFacilityProject:Since2006:Constructionoftowersforco-location

bytelecomoperatorstoextendtelecomservicestounderservedareas.41towersconstructed.•LastMileInitiativeProject:Since2006,incollaborationwithUSAID/Ghanaandpossibly

UNDP,pineappleandcitrusproducingareasaretargetedandprovidedwithaccesstotelecommunications/ICTservices.OnepilotprojecthasbeencompletedatNsaakyeintheEasternRegion.AsecondprojectisconstructedatGeorgefieldsnearKasoaintheCentralRegion.Thisistobeextendedtocotton,mango,andriceproducingareas.

•CommunityInformationCentresProject:project,whichGIFEChasbeenimplementingonbehalfoftheMinistryofCommunicationswithfundingfromthehIPCInitiative.Establishinghybridfor-profittele-centreandnon-profitcommunityresourcecentrestargetingthegeneralcommunitymembers,schoolchildren,youthoutofschool,womenandwomen’sgroups,privatebusinesses,non-governmentalorganisationsandlocalgovernmentauthorities.By2010,120CICsareatvariousstagesofcompletionin100districts/municipalities.Underacost-sharingagreementbetweentheMinistryofCommunicationandtheUnitedNationsDevelopmentProgramme,79CICshavebeenequippedwithICTequipment,networkinfrastructureandtrainedCentreManagers,makingthemoperational.Theremaining70districts/municipalitieswilleachhaveatleastoneCICasenvisionedinGIFEC’sstrategicplanfor2010-2012.

•LibraryConnectivityProject:EstablishmentofICT-basedMobileDigital-cottages(MD-Cs)andRegionalDigitalLibraryInformationCentres(RDLICs)inordertopromoteandfacilitateaccess.

•RuralPayPhoneProject:GIFECintendstoprovide12,000ruralpayphonestounderservedcommunitiesduringthethreeyearperiod2010-2012(theEQUATELproject).

•EasyBusinessConnectivityProject:toenhanceavailabilityofseedfinancingonflexibleandreasonabletermsforentrepreneursseekingtooperatee-powerede-businesscentres.

•PostOfficeConnectivityProject:toselect10PostOfficeswiththerequisitephysicalinfrastructuretoenablethedeliveryofbasicInformationTechnologyandtelecommunicationservicesinthepilotphase,then70PostOfficesforSecondPhase(2011-2012).

•DisabilityEmploymentProject:implementedbyGIFECandNCPDistheEasyBusinessCentresforPersonswithDisability.

•SecurityConnectivityProject:toestablishstateoftheartICTTrainingCentreatthePrisonsTrainingSchool.

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8.7

lesOtHO

•SchoolConnectivityProject:providingeducationalinstitutionswithhighspeedcomputers,printers,scanners,projectorsandserversandlinkingthemwithinternetaccess.Theprojectstartedonapilotbasisin2008.In2009GIFECprovidedsupportto50schools.By2010,GIFEChadsupportedtwohundredandsixty-three(263)educationalandtraininginstitutions.TheplanwastoprovideICTequipmentandconnectivitytotwohundred(200)educational,vocationalandtraininginstitutionsbetween2010-2012.

•CommunityInitiativeProject:ToestablishstateoftheartICTTrainingCentreforRuralCommunitiesacrossthecountryandprovidetrainingincomputerskillsandliteracy.

•FishingProject:incollaborationwiththeFisheriesCommissionandtheNationalCanoeFishermenCouncil,tointroduceenhancedfishingtechniquesusingstate-of-the-arttechnologytoaddressthefishingneedsoftheartisanfishermen–toberolledoutin2012.

•ICTCapacityBuilding:2010-2012,GIFECintendstofundtheprovisionofbasicICTTrainingtoover12,000peopleintheunderservedandunservedcommunitiesusingtheCICfacility.

GIFECiscollaboratingwithallthemajortelecommunicationsoperatorsintheprovisionofCommonTelecommunicationsSiteFacilitiesinselectedareasacrossthecountryundertheUniversalAccesstoTelecommunicationsProgramme(UATP).ThecollaborationinvolvestheawardofsubsidiestowillingandeligibletelecommunicationsoperatorsfortheprovisionofCommonTelecommunicationsSiteFacilities.

lesOtHO year fund established: 2009


LesothoCommunicationsAuthority(LCA)UniversalAccessFundisperatedbytheRegulator.TheSecretariat,anon-votingmemberoftheoversightCommittee,executesthedecisionsoftheCommitteeandisresponsibleforthedaytodayrunningoftheFund.LCAservesastheTreasureroftheCommittee.


• 1% of net Operating income of licensed operators on an annual basis.•25%ofNRAoperatingsurplus.•FundreceivedUS$1.25millionseedcapitalfromtheRegulatorin2008.•FundcanalsoreceiveGovernmentcontributionsandgrants.•UniversalServiceFundCommitteeisresponsiblefordesignatinglicenseesrequiredtomake

contributionanddeterminestheamount.


Policyandregulation,theprimaryobjectiveisbasicaccessforeveryonethroughuniversalnetworkcoverage,althoughtheStrategy2007alsorecognisestheconcernsofpeoplewithdisabilitiesordisadvantagedgroups.

Allvillageswithatleast150householdsmusthavenetworkcoverageandcommunicationsserviceaccesspointsandallpeoplemusthaveacommunicationsservicepointwithina4kmradius.

TheCommunicationsAct2012delegatesauthoritytotheFundtoensureaccesstobasicdomesticandinternationaltelephonyservicesandinternet,diverserangeofradioandtelevisionbroadcastingservices,basicpostalservices.USFCmayalsodecidetousefundtowardsinfrastructureforunserved/underservedareas,tele-centres,internetexchangepoints,acquisitionofsatellitecapacityforbroadcasting,publicbroadcastingservices,electrificationofpostoffices,universalpostalservices.


CompetitiveBid.TheUniversalServiceFundCommitteedecidesonfundsallocation.Thefundrecipientresponsibleforprovidingperformancereports.LCAidentifiesUSFsitesandthenissueRFPs.AlllicensedoperatorsparticipateintheRFP(RequestforPricing)process.

Otherentities,suchasbroadcasters,serviceproviders,contentdevelopers,publicaccessICTtele-centres,schools,hospitals,ruralclinicsandotherswillbeeligibletoreceivefundsfromtheUSFdependingupontheprogrammesandinitiativesselectedeachyearbytheFundAdvisoryCommitteeinconjunctionwiththeMCST.

Governance ThereisanindependentlyconstitutedoversightCommitteeoftheBoard(representativesofMinistriesofCommunication,LocalGovernmentandFinance)whichisresponsibleforstrategicandpolicylevelmanagementofthefundandfunctions.TheUSFaccountsareauditedbytheAuditorGeneralandpublishedintheLCA’sAnnualReport.Alltelecomoperatorsareeligible.

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8.8

MadaGascaR

MadaGascaR year fund established: 1999 legal and administrative establishment: 2002 collection and disbursement.

UnderlyingFrameworkforFund

•Actno.96-034of27January1997.•DecreeNo.99-191relatingtoModalitiesforImplementationandFundingofAccessto

TelecommunicationsServices(March10,1999)establishedtheFund.•DecreeNo.2003-1068onExtendingtheObjectivesoftheTelecommunicationsDevelopmentFund

(Nov.4,2003)andDecreeNo.2004-329AmendingtheProvisionsofArticleIofDecreeNo.20031068(March16,2004).

•ActNo.2005-023of17October2005ontheRevisionofLawno.96-034of27January1997ontheInstitutionalReformoftheTelecommunicationsSectoridentifiesuniversalaccessandtheloweringofcostsasaprinciplegoal,anddirectstheministerinchargeoftelecommunicationsandICTstoestablishafunddedicatedtothedevelopmentoftelecommunicationsandICT,andsupportareasthatareotherwiseunserved.


FondsdeDéveloppementdeTélécommunicationsetTIC(TelecommunicationsandICTDevelopmentFund)administeredbytheregulator-OfficeMalagasyd’ÉtudesetdeRégulationdesTélécommunication(OMERT)asaseparateaccount.


TheFundistobefundedfrom:•Annualcontributionsofoperators,whichareequalto2% of their gross revenuesearnedfrom

operatingpublictelecommunicationsnetworksandtheprovisionofpublictelecommunicationsservices

•Thegovernment’sgeneralbudget;•Publicorprivatecontributionstothefund;and•Localcommunitiesseekingtoimprovetelecommunicationsintheirareas.


Includedinuniversalserviceare:•Providingaccesstoapublictelephonynetworklocatednomorethan10kmfromthecentreofa

ruralcommunityof500ormorepersons;•Providingapublicaccesspointinanurbanareathatiswithin2kmofallhabitations;•Ensuringthefreeroutingofemergencycalls;and•Dial-upInternetaccessanddirectoryservices.The2003and2004Decreesextendtheuseofthetelecommunicationsdevelopmentfundsforthestudythepossibilityofinternationalconnectivitytounderseafibreandanationalbackbone.


Thefundsaredistributedonacommunity-by-communitybasis,withthespecificprojectsbeingdefinedbyOMERTwhichdetermineswhichcommunitiesareinneedofserviceandthelevelofsubsidiesnecessarytoachievecoverage,andsubmitsaplantotheMinistryforapproval.

Thelistofprojectsisthensubmittedtothenationalfixedoperatorstoenquirewhetheranyofthemwillservetheareas.Ifnoneoftheoperatorsaccepttotakeontheprojectwithoutfunding,theprojectsaretobeattributedviaatransparentandcompetitiveselectionprocessamonginterestedoperators.OMERTfirstrunsarestrictedtenderprocess.Projectsforwhichnoqualifiedapplicantswerefoundaresubjecttoanopencompetitiveprocess.

LevelofActivity low activitysome financial reportingTherewere4networkcoverageinfrastructureprojectscompletedin2010/2011:•Threesitesathloahloeng(Mohale’shoek);•OnesiteatLitsoetse(ThabaTseka)•TwositesatMakhunoane(Botha-Bothe)and•TwositesatTsatsane(Quthing).Intermsofimpactthe2010/11projectsprovidedcoverageto

morethan16,000peoplefrom87villagesinthedistrictsmentioned.TheInternetExchangePoint:thisinitiativeoftheFundistofacilitatetheestablishmentoftheInternetExchangePoint(IxP).Thisprogrammeinvolvedtheprovisionofinternetservicestoallinstitutionsofhigherlearning.For2012/13,theFundisexpectedcontinuetofocusoncoverage,althoughithasbeenindicatedthatthereareplanstorolloutinternetaccesscentresbutnoactivityhasbeenreportedsincethe2011annualreport.

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8.9

Mali

Governance OverseenbytheTelecommunicationMinistry.Fundaccountsmustbeverifiedbyanindependentaccountant.

LevelofActivity Moderate activityno financial reportingBytheendof2009,theUSFhadfinanced:•1vSATforunderservedcommunities;•Publicaccessandprivateservicetovoice-theincumbentfixedoperator;iseligible•1AccessRegion;•DistrictsandCommunes;and•PublicaccesstoandPrivateServiceforvoiceandInternet.PartoftheUSOisusedtofundpartofthePICOMproject(aspecificentityhandlingTelecommunicationMinistryinfrastructureprojects,alsofundedbytheWorldBank).ItisestimatedthatthemajorpartoftheFundhasbeendistributedtoTelmaunderthesubsidiesprocess.OtherexampleincludesthevillagePhoneProject,wherebasedonanagreementbetweenAirtelandtheTelecommunicationsMinistry,theMalagasyGovernmentissupposedtocontributeabout40%ofthevillagePhone(similartotele-centre)equipmentthroughtheFund.

Mali year fund established: 1999


TelecommunicationsOrdinanceNr.99-043onSeptember301999,definedUniversalServiceinArt.8,andinArt.12statedthatfuturedecreeswoulddefineservicescoveredbyaUniversalServiceFund.TelecommunicationsOrdinancesNr.2011-023andNr.2011-024onSeptember282011providedtheframeworkfortheactivitiesandorganisationoftheFund.


L’AutoritéMaliennedeRegulationdesTelecommunications/TICetPostes(AMRTP),anindependentlegalentitywithfinancialandadministrativeautonomy,administersandmanagestheFund.


1% of annual revenues from licensed operators


TheFundwasestablishedtoallowtheofferingofbasictelecommunicationsservicestoall,including:nationalandinternationalaccess,text,facsimileandinternetaccess.TheservicesmustmeettherequirementsassetbytheRegulator.Also,thetelecomcompaniesshouldprovideaccesstoaprintedorelectronicdirectoryandtoemergencynumbersfreeofcharge.Servicesshouldbeprovidedinremoteareasatacostaccessibletoall.healthservices,educationandhandicappedindividualsshouldbeconsideredpriorities.


Publicbiddingprocess.

Governance AMRTPisformedbya:•BoardofDirectors:sevenmembersnominatedbytheCouncilofMinistriesbasedontechnical,

legaland/oreconomicalknowledgeofthetelecommarketaswellasnewtechnologies.ThePresidentoftheRepublicselectsthreemembersfromthosenominatedbytheMinisters;thePresidentoftheGeneralAssemblyselectstwomembers;andthePresidentoftheFinancial,CulturalandSocialCouncilselectstheothertwo.

•GeneralDirector:fivemembersinchargeofthedaytodayoperationsoftheAMRTP.ThemembersareselectedfromapublicapplicationcallbytheCouncilofMinistries.

LevelofActivity inactiveno financial reportingTheFundhasnotbeenusedtodate.ThereisadisputecurrentlyunderwaybetweentheAMRTPandtheGovernmentregardingtheAMTRP’splanstoallocatethefundstonon-telecomrelatedexpensesincurredintherecentinsurrections/civilunrest.

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8.10

MauRitania

MauRitania year fund established: 2002


telecommunication lawofJuly111999regulatesthetelecommunicationsmarketandservicesinMauritania.Thelawalsoprovidesinits“GeneralDispositions”thedefinitionfortheprovisionofUniversalAccessServicestothepeopleofMauritania. decree nr.2001-06onJune272001createdtheUniversalAccessServicesAgency.Thedecreealsoestablishestheaccounting,financialandlevysystemsfortheFunds.decree nr. 2002-06ofFebruary72002,establishedtheorganisationandfunctioningoftheFund.


TheoverallFundisadministeredbytheAgencyforthePromotionofUniversalAccessServices–APAUS(Agencedepromotiondel’Accèsuniverselauxservices)whichisinchargeofimplementingaprogressivegeneralisationofessentialservices(water,electricity,telecommunicationsandICTs).


APAUSreceivesmoneyfromthenationalbudget,contributionsprovidedbyinternationalagenciesandothergovernments,andcontributionsfromthetelecomsector:3% of the gross revenuespaidannually.Telecomcontributionsaretobeusedonlytofundtelecomprogrammes.


TheUSFforTelecommunicationswasoriginallyestablishedtoprovidebasictelecommunicationsservicestoallinhabitantsofMauritaniathroughtheestablishmentofcallcentresandcommunitytelephonestoavoidlongwaitingperiodsandtravellinglongdistancestoaccesstheservices.Later,theservicesincludednotonlybasictelecombutICTsaccesstobeachievedby2015(MillenniumDevelopmentGoals).TheFundhasconcentrateditseffortsonprovidingservicesto3,040villageswithpopulationsover100,000andruralareaswithapopulationof1,000inanareaof1,000,000km2inthedesertareas.


Public,openbiddingprocess.

Governance APAUSisanindependentlegalentitywithfinancialautonomy,formedby:•GeneralBoard–formedbyonerepresentativefromMinistryofTelecommunications,onefrom

theMinistryofFinances,onefromtheTelecommunicationRegulatoryAuthority,oneprofessionalrepresentingtheProfessionalAssociation,andrepresentativesofallsectorsinvolved(nonumberisprovided).TheBoardMembersserveforthreeyears.TheBoardselectsitsPresidentfromalistprovidedbytheCabinet,andnameanddestitutetheGeneralManager.

•TheGeneralManager–managesandcoordinatesalltheworkoftheAgency,ensuresalllaws,decreesandnormsarefollowbytheAgencyandmanagestheUAF.

•Technicalmanagers:namedandselectedbytheBoardfromlistsubmittedbytheGeneralManageraspertheneedsoftheAgency.

LevelofActivity Moderate to low activityno financial reportingThetelecommunicationssectoroftheUAFisprovidingthefollowingservices82.however,noactivityappearstohavebeenreportedsince2012.•ImplementationofanInformationandTelecommunicationsCentreforpeoplewithdisabilities–

trainingandservices.•Multifunctionplatformsproject–nationalreach(coverage)•Cybercitiesproject–projectstoprovideICTservicestothecitiesofAtar,Selibabi,andAkjoujt

(alreadypartiallyworking).•FibreOpticNationalNetwork–projecttolinkregionalcapitalsandprovideinternational

connectivity(AfricanCoasttoEurope-ACEcable).ThisprojectisinpartnershipwiththeWorldBank.

82. www.access.mr

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8.11

MauRitius

MauRitius year fund established: 2008


•InformationandCommunicationTechnologiesAct2001.•FundformedundertheInformation&CommunicationTechnologiesAuthority,ICTAand(Universal

ServiceFund)Regulations2008(asamended)(GN206/2008).


•AdministrativeunitandaccountmanagedbytheExecutiveDirectorofNRA(ICTA).•TheFundAdministratoroverseesFundactivities.•TheProjectManagerisresponsibleforanalysingmarketconditions,developingproposedproject

plansandactingasliaisonwithUSFfundingrecipientsintheimplementationandevaluationofapprovedprojects.

•Liaisonofficers:withintheAuthority(Engineers,attorneys,accountant,economist,etc.)areresponsibleforextendingprofessionalsupportandresourcesintheirfieldsofresponsibilitytothemanagement.


Eitherapercentageofturnoverorapercentageofthepriceofeveryincomingcalloneachoperator’snetwork.Fromalloperators,bothfixedandmobile:•Annualcontributiontobepaidinmonthlyinstalmentsbyoperator-5% of gross revenue generated

by operator from provision of international roaming service forthatmonthand•us$ 0.025 on every minute of international calls terminatedbyoperatorinthatmonth.ICTAhasalsogivengrantstotheFund(29%oftheoverallvaluebytheend2009).ICTAiscurrentlyinvolvedinlegalproceedingswithoperatorswhohavefailedtopay.


PublicaccesstovoiceandInternetIncreasedbroadbandpenetrationSpecialistservicesforpeoplewithdisabilities.Itisenvisagedthatspecialisedservicesatspecialtariffsshouldbeprovidedtopeoplewithdisabilitiesatnoextrachargesorevenatbelowcost83.


Competitivebiddingprocessopentoalloperators.BiddingprocessopentoalllicensedISPstoprovideuniversalserviceandaccesstoInternet-toinstall,provideandmaintainWi-Fiaccess.ThebiddingexerciseisoverseenbyICTA.

Governance BoardofNRA,uponrecommendationofUASFAdvisoryCommittee.

LevelofActivity Moderate activityno financial reporting at present duetoongoingdiscussionswithoperatorswhoarerefusingtopaythelevy.Bytheendof2009,fundshavebeeninvestedforfourCommunityPublicAccessPoints.Ongoingproject:UnderWi-FiMauritius,deploymentofWirelessFidelity(Wi-Fi)Networktoincludeworkstationswithfreeinternetaccessforcitizenswithoutthenecessaryterminalequipmentacross10Wi-FizonesinfivemunicipalcouncilsandfourdistrictcouncilsinMauritiusaswellasanadministrativebuildinginRodrigueswasachievedinMarch2012.The2013USFBudgetincludesprovidingvisuallyimpairedstudentswithBraillepersonalcomputersfreeofcharge.

83. ICtA – Consultation paper February 2004

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8.12

MOzaMbique

MOzaMbique year fund established: 2004/ 2006 legal established. 2008 collection.


•TelecommunicationsLawNo.8of21July2004.•DecreeNo.69of26December2006approvedtheregulationofUniversalaccessandService

Fund.TelecommunicationPolicy2004.•MinisterialDiploma79/2007dated4July2007ontheannualcontributiontobepaidtothe

UniversalServiceAccessFundbythetelecomoperators.


TheUniversalAccessFund,FundodoServiçodeAcessoUniversal(FSAU,UASF)isaninternalunitandaccountundertheregulatorInstitutoNacionaldasComunicaçõesdeMoçambique,regulatoryagency(INCM)managedbytheExecutiveSecretaryoftheUASF.ThemanageroftheFundreportstotheBoardofDirectorsofINCM.


•Alllicensedandregisteredentitiesrenderingtelecommunicationspublicservicesmustcontribute1% of net operating income of the previous yeartotheUASF.

•OperatorswhoareoperatingInternetCafesareexemptfromcontributionstotheUASF.•Government.DevelopmentPartner(internationaldonors)grants.


Servicescovered:•TelephonyandInternetservices.•PublicandPrivateInternetaccessandservice.•Infrastructuredeploymentandserviceprovision.hospitalsandschoolslocatedinruralareascanalsobenefitfromthefund.TheFund’sobjectivesaretopromoteservicetoruralareasatafairandaffordableprice(publiclyaccessibletelephoneswithinalllocaleswithmorethan1,000inhabitantsaswellaswithin5kmofeveryruralinhabitantandInternetpointsofpresenceandpublicaccesstotheInternetthroughtelecentresinallDistrictCentres).


CompetitiveBid–least-subsidyrequested.

Governance BoardofINCMoverseestheactivitiesanddecisionsofUSAF.

LevelofActivity limited activityno financial reporting.•MozambiqueundertookanInternetservicepilotprojecttoprovidefourDistrictCentresin

theprovincesofZambéziaandNampulawithInternetPOPs.TheinternettenderwaswonbyMozambicanbroadbandwirelessoperatorINTRALda.

•Asimilartelephonypilottenderdidnotreceiveanybidsandwasthereforeunsuccessful.•US$200,000wasdisbursedin2008foratransmissionviasatelliteprojectofmobiletelephony

covering5kmfromthecentreofadistrictofMatchedjeontheborderwithTanzania.•TheWorldBankfinancedcertaintele-centrespilotprojectsandaCommunityPublicInternet

AccessPointsproject.•McelwonatenderinJune2011tobuildBTSsitesin14localities,inaprojectofapprox.US$4

million.

80

SSA USF STUDY

8.12

niGeRia

niGeRia year fund established: 2003 legal establishment. 2004 collection. 2007 administrative disbursement.


TheNigerianCommunicationsActof2003addressestheconceptofuniversalaccessanduniversalserviceandprovidesguidancetotheNigerianCommunicationsCommission(NCC)onthedevelopmentofuniversalaccess/servicepoliciesanddirectstheestablishmentofaUniversalServiceProvisionFund.The2007UniversalServiceandUniversalAccessRegulationsestablishedtheUSPFund(USPF).


Since2007,theNigerianUniversalServiceProvisionFund(USPF)isaseparateentitymanagedbytheSecretaryofUSPF.


OperatorsdonotcontributedirectlytotheUSPF.Operatorsarerequiredbyalicenceconditiontopay 2.5% of net operating revenue, (annual Operating levy, aOl) to the ncc on a quarterly basis. the ncc, in turn, contributes 40% of the aOl to the usPf for its activities. Accordingtothe2007Regulation,theUSPfundistobefinancedbasedon1% of net revenues (netofinterconnectionpayments)ofthelicensees.NCChasthediscretiontoincreaseordecreasecontributiontotheUSPFuponconsiderationoftheUSPFoperatingexpensesandbasedonrecommendationmadebyUSPF.TheUSPFmaybefundedfromothersources:•MoniesappropriatedtotheUSPFbytheNationalAssembly;•Gifts,loansaidsandsuchotherassets.


Theobjectiveofthe2003ComsActisencouragingtheinstallationofnetworkfacilitiesandtheprovisionofnetworkservicesandapplicationstoinstitutionsinunservedandunderservedareasorforunderservedgroups.Universalservicecoversthefollowingservices:•Individualmobile-cellularservice•Publicmobilepayphoneservice;•Broadband•Tele-centres•Schools(primary,secondarypost-secondary)•healthcentres•Emergencyservices•Specialservicesforpersonswithdisabilitiesandelderpersons•CommunityCentres•Governmentoffices

Currently,theFundhasfourprogrammes:•UniversalAccessProgramme•UniversalCoverageProgramme•UniversalServiceProgramme•ICTforDevelopmentProgramme


TheUSPSecretariatisrequiredtoundertakeananalysistodetermineformallywherefundmoneyshouldbedirectedandspecificallytheservicescopetobeapplied.Projectsareallocatedthroughacompetitivebiddingusingdifferentmethods:•Competitive•Combinationqualityandcostselection•Competitive,leastsubsidyrequestedfromqualifiedbidders•Proposalbyeligiblecandidates&evaluationbyUSPF.

Governance USPFBoard(ChairedbytheMinisterwithrepresentationfromNCC)supervisesandprovidesbroadpolicydirectionforthemanagementoftheUSPF.ItappointsandremovestheUSPFundmanagersandauditorsinconsultationwiththeNCC.TheUSPFundmanagersreportonaquarterlybasistotheUSPBoardandtheUSPSecretariatonthestatusofthefundincludingareportdetailingthefinancialsituationandperformanceofthefund.DuetoanumberofoperatingchallengesandperceivedinefficienciesintheFund(asidentifiedbythefundadministratorsthemselves),aprocessiscurrentlyunderwaytorevampthewayinwhichtheFundoperatesandseveralpilottrialsareunderway.

81

SSA USF STUDY

LevelofActivity High activityno consistent financial reporting.ApproximatelyUS$140millionperannumindisbursementsfromlevies.however,disbursementhasbeenheldupinsomeyearsduetodelaysinParliamentarybudgetapprovalUSPSActivitiesandProjectsin2009•CommunityCommunicationsCentreProject•AcceleratedMobilePhoneExpansionProgrammes•Co-locationInfrastructureProject•BaseTransceiverStationProject•Solar-PoweredGSMforRuralNetworkProject•RuralBroadbandInitiativeProject•BackboneTransmissionInfrastructureProject•SchoolsAccessProject•TertiaryInstitutionAccessProject•GISmappingofICTsInfrastructure,GapAnalysisandSubsidyEstimatesinNigeria

8.14

niGeR

niGeR year fund established: 1999


Decreeno.99-45issued26October1999,amendedbyOrdinanceno.2010-89of16December2010createdaUniversalAccesstoServiceFund(TheTelecommunicationsDevelopmentFund).


AlthoughoriginallyanaccountoftheRegulator-l’AutoritédeRégulationMultisectorielle(ARM),anautonomousentityhasbeenrecentlyestablishedtomanagethefundbutisnotyetfunctioning.


•After2003:4% of annual net (gross) revenuefromalllicensedoperators(somehavefailedtocontribute).

•Inthefirsttwoyearsofthelicence,mobileoperatorswererequiredtomakecontributionsof35millionCFAfortheyear2002and70millionCFAfortheyear2003.

•Inaddition,ajointfundingsystemhasbeenestablishedbytheITU,theWorldBank,theUnitedNationsDevelopmentProgramme(UNDP),theOrganisationInternationaledelaFrancophonie(OIF),theGovernmentofNigerandseveralnon-governmentalorganisations.


Telecommunicationsinfrastructureandapplicationsinruralareas.


Thereisnovisibilityonthefundallocationrules.Allcontributors(i.e.,licensedoperators)areeligibletoparticipate.AccordingtoDecreeno.99-45,theregulatoryauthoritylaysdownoptimumstandardsfortheselectionofoperatorsthatwillprovideuniversalaccesstoservices.Bypublictender,theregulatoryauthorityallocatesthetasksofimplementinguniversalservicestoselectedoperators,whoarepaidfromtheFund.

Governance MinistryofCommunications.

LevelofActivity inactiveno financial reporting

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SSA USF STUDY

8.15

sOutH afRica

RePublic Of sOutH afRicat

year fund established: 1997


•TelecommunicationsAct,1996.TelecomsAmendmentActof2001•AssociatedUniversalServiceandAccessFund(“USAF”)Regulationsof1999•ElectronicCommunicationsAct,2005•USAFContributionsRegulationof10February2011•DraftBroadbandPolicy,2009


USAFisadministeredbyUniversalServiceandAccessAgencyofSouthAfrica(“USAASA”),aseparatelegalentityresponsibleforpromotinguniversalserviceandaccessinthecountry.


•USAASAisfundedbycontributionsfromlicensedoperatorsofelectroniccommunicationservicesandnetworksandbroadcasters(thelattermayoffsettheircontributionagainstacontributiontoabroadcastingsectorMediaDevelopmentandDiversityFund).

•ICASAdeterminesthebasisofoperators’contributions,whichmaynotexceed1%oftheirannualturnover.

•Currently,thecontributionissetat0.2% of annual turnover(totalrevenuefromlicensedactivity,lessserviceproviderdiscounts,agencyfees,interconnection,andfacilitiesleasingcharges,governmentgrantsandsubsidies).

•ICASAcollectsthecontributionsandsendsthemtotheNationalTreasury.


ECAstipulatesthattheFundshouldbeusedexclusivelyforpaymentofsubsidiesto:•Assistneedypersonstowardsthecostofbroadcastingandelectroniccommunicationsservices•PublicschoolsandpublicFurtherEducationandTrainingInstitutionsfortheprocurementof

broadcastingandelectroniccommunicationservicesandaccesstoelectroniccommunicationnetworks;

•Establishandoperatebroadcastingservicesandoperation,includingtrainingofandthepaymentofallowancestopersonnel,ofcentreswhereaccesstoelectroniccommunicationnetworkscanbeobtained;

•Anybroadcastingservicelicenseeandelectroniccommunicationsnetworkservicelicenseeforthefinancingoftheconstructionorextensionofelectroniccommunicationsnetworksinunder-servicedareas.


•CompetitiveBid.•USAASAmanagesthefundsandidentifiesprojects.•Anyareawithlessthan5%penetrationisdeemedunderservedandiseligibleforUSALproviders.

Governance TheMinisterofCommunicationsappointstheUSAASABoard.TheBoardretainsfullandeffectivecontrolandmonitorstheexecutivemanagementanddecisionsoftheAgency.howeverduetothewidespreadallegationsofcorruptionandmismanagement,seniormembersofthefundmanagementteamweresuspendedinSeptember2011andaforensicauditwasordered.Subsequently,someofthesuspendedmembersunderinvestigationresigned;theMinisterappointedanewboardinSeptember2012andasearchforanewCEOwascompleted.

LevelofActivity Moderate activity althoughmostactivitiesweresuspendedforalmostayeardatingfromSept.2011whentheboardwassuspended.limited financial reporting(reportsarepublishedbutlackfullfinancialdetail).Thisappearstobechanging.Projectshaveconsistedoftele-centres,cyberlabs,multi-purposecommunitycentres/Thongservicecentresandunder-servicedarealicences(USALs).Therewere27underservedareasandUSALprojectsinsevenoftheseareasbytheendof2007.USAASAissuedlicencestobidderswinningUSAFsubsidies.Someprogrammesfocusonpeoplewithdisabilities,forexample,theaccesscentreinTembisa.Thefollowingprojectswereearmarkedforfundingfromthe2010allocation:•ImplementationofhandoverstrategyforCommunityICTAccessCentresandE-SchoolCyberlabs•FacilitationofInternetconnectivitytoschoolsandAccessCentres•ImplementationofRapidDeploymentofnewAccessCentresstrategy•DevelopmentofaUniversalServiceandAccessFundManual•SubsidiseinternetconnectivityattheFETcolleges

83

SSA USF STUDY

RWanda year fund established: 2004


TheUniversalAccessPresidentialOrder05/01of13/03/2004establishedtheUAF(UniversalAccessFund).


TheUniversalServiceFundisanadministrativeentityandwithanaccountadministeredbytheregulator,RwandaUtilitiesRegulatoryAgency.


2% of Gross annual revenues,netofinterconnectionpaymentsfromalloperators.TheFundhasreceivednumerousgrantsfrominternationaldonors,mainlytheWorldBank.Theircontributionsformed68%ofthetotalfundingbytheendof2009.


•Publicvoiceaccessandprivatevoiceservice•PublicaccesstoInternet,PrivateInternetservice•2008focuswasonloweringbandwidthcostsandtheextensionofICTsinruralandpoorurban

areas.NetworkextensionisbeingaccomplishedthroughconnectingkeyRwandaninstitutions.


Competitivebiddingprocessbasedonleastsubsidyrequestedfromqualifiedbidders(operatorsandISPs).FundsalsoallocatedthroughtheMinistryofEducation(toPCprovidersfortheOneLaptopperChildProgramme).

Governance BoardoftheNRA.

LevelofActivity Moderate activityno financial reportingBytheendof2009thefollowingprojectswereunderway:•RuralTelephonyProject•LowpricesforInternetconnectivityandPublicaccesstoInternet•OneLaptopperChildProgrammeMorerecentprojectsinclude:•vSATconnectivitysubsidytoalldistrictsinremoteandruralareas;•Bandwidthconnectivityof30Tele-centresmanagedbytheRwandaDevelopmentBoard;•Connectivityofsecondaryschoolsinremoteandruralareas;•Connectivitysubsidyto45sitesforthepoliceinruralandremoteareas;and•Connectivityofsomeprivateinstitutionsandlocalbusinessoperatinginruralandremoteareas;DuetothehighcostofvSATconnectivityandavailabilityofafibrenetworkbackbone,since2012thetrendistoswitchfromvSATtofibreopticnetworks,whenevertheyareavailableintheruralareas.AsofJune2012alldistrictsinruralareas,immigrationservicesattheborderposts,police,militarybarracksandsomehighschoolsandalltele-centreshadalreadyswitchedtofibre(112outof180subsidisedsites).

Recentplanneddigitalinclusionprojectsinclude:•Connectivityofalluniversities,publicandprivate,usingRWEDNET(RwandaEducationNetwork•Connectivityofalltechnicalsecondaryschoolsandalltechnicalcolleges•Connectivityoforphanagesintwodistricts

8.16

RWanda

84

SSA USF STUDY

8.17

seneGal

seneGal year fund established: Pre fund: 2001 fund: 2007


TelecommunicationLawin2000establishedthegeneralframework.In2001,theTelecommunicationsandPostsRegulatoryAgency(ARTP)wascreatedandaUniversalDevelopmentFund(UDF)wasputinplacetoincreasetelecomcoverageinremoteareas.In2004,thegovernmentbegantheliberalisationofthetelecommunicationsmarket.APresidentialDecreein2007(2007-593),establishedthetelecommunicationsUniversalServiceFundsanddefiningtherulesgoverningandthemechanismsforoperatingthefund.


TheUniversalDevelopmentServiceFundforTelecommunications(FDSUT)isadministeredbytheRegulatoryAuthorityunderthesupervisionofaSteeringCommittee.


AspecialtaxcalledContributiontotheDevelopmentofTelecommunicationsUniversalServiceandEnergySector(CODETE)setsthecontributionat3% of sales excludingtaxesfromallenergyandtelecomplayers.Thiscontributionissharedbetweentelecommunications(5%)andenergy(95%).Thefundalsoreceivescontributionsfromoperators’ licences (0.15% of their turnover).


Affordabletelephoneserviceeveninthemostremoteareasofthecountry,directoryenquiryservices,telephonedirectories,freeofchargeroutingofcallstoemergencyservices,andtheinstallationofpublicphoneboothsthroughoutthecountry.Majoreffortswillbededicatedtoruralandlowincomelevelregions.


Openbidding

Governance SteeringCommittee(13members)chairedbyarepresentativeofthePresidentoftheRepublicselectaGeneralDirectorwhoisinchargeofthedaytodayactivitiesoftheFund.

LevelofActivity inactiveno financial reportingThereisnoprojectrelateddisbursementasof2010.Bridgingtheaccessgapinnetworksandtelecommunicationservices(telephoneandinternet)throughoutthenationalterritorywasthegoal.

85

SSA USF STUDY

8.18

sWaziland

sWaziland year fund established: 1990 legal establishment.2001: operational.


•TheGovernmentestablishedaUniversalServiceObligationFundunderthelicenceawardedtoSwaziMTN.

•UniversalServiceObligationFundistobeestablishedbyElectronicCommunicationsBill2009.•Nopolicyinplace.


UniversalServiceObligationFundisadministeredbytheUniversalServiceObligation(USO)CommitteeundertheRegulator,SwazilandPosts&TelecommunicationsCorporation(SPTC)/theSwazilandCommunicationsCommission(SCC)asanindependentregulatoryauthority.AccordingtotheElectronicCommunicationBill2009,thecommitteeisreferredtoas‘Commission’,responsiblefordevelopingimplementationstrategyofUSFinconsultationwiththeMinister.


Contributionsfromageneral levy on all operators’ revenue.AspertheElectronicCommunicationsBill2009,CommissionshallcontributeallremainingunusedfundsorrevenuetotheUniversalService/AccessProgramme.


AccordingtotheElectronicCommunicationBill2009,thefundistoprovideaffordabletelecomtothepublic,telephonedirectory,publicpayphonesbasedongeographicalenduserneeds,andspecificmeasuresfordisabledusersandlowincomeusers.

TheproceedsoftheoriginalFundweretobeutilisedbySwaziMTNfor:•Installationandmaintenanceofpayphones;•Implementing;•handsetsubsidies;and•Installationofbasestationsinfourremotelocationsinthecountry.


AccordingtoElectronicCommunicationBill2009,theCommissionshalldeterminethemostefficientandappropriateapproachforensuringtheimplementationofuniversalservice.

Governance MinistryofInformation,Communications,andTechnology

LevelofActivity inactiveno financial reportingus$6 millionhadbeendisbursedby2009.Sincethen,theFundhasbeeninactive.

86

SSA USF STUDY

8.19

tanzania

tanzania year fund established: 2009 legal establishment.2010: operational.


PoliciesenvisagingaUniversalServiceFund:•NationalTelecommunicationsPolicyof1997.•TanzaniaDevelopmentvision2025andRuralDevelopmentStrategy2001.•NationalICTPolicyof2003.TheUniversalCommunicationsServiceAccessAct2006establishedtheguidelinesforthecreationoftheUniversalCommunicationsServiceAccessFund.UniversalCommunicationsServiceAccessFundRegulations,2009.


None


0.3% of yearly gross operating revenuefromallcommunicationsserviceoperators(includingISPs,postandcouriercompanies).Sofar,theFundhasnotbeensuccessfuloncollectionsfromoperators.OthersourcesfortheFund:•Governmentandtheregulator;•Parliamentaryallocation;and•Developmentpartnergrants:currentfundsincludeaWorldBankloan.


Themandateunderthelawistoidentifytheruralandurbanunderservedareasanddesignateuniversalserviceareas.


CompetitiveTenderingandreverseaction.Allnetworkfacilityoperatorsareeligible.

Approvedprojectsneedtosatisfythattheywilladequatelydealwith:•Peoplewithdisability;•Peoplewithspecialneeds;•Deliveryofqualitycommunicationsservices;•Pricingofservicesintermsofaffordability;•Makingavailableandaccessiblecommunicationservicestoallpeople.

Governance n/a

LevelofActivity low activityno financial reportingTheGovernmentofTanzaniareceivedacreditfromtheInternationalDevelopmentAssociationtowardsthecostofTanzaniaCommunicationsInfrastructureande-GovernmentProjecttocovereligiblepaymentsundertheContractforRuralTelecommunicationsServicePilotProject2011:•EnablingEnvironment(US$14million)–policies•Connectivity(US$60million)-extensionofcoverageandaccesstoICTservicesinruralareas•e-GovernmentApplications(US$22million)•ProjectManagementSupport(US$4million)

TheFundisworkingonpilotprojectsfinancedbytheWorldBankfunds;itiscollectingandverifyingcoverageinformationandtheoperators’twoyearprojectionsinordertoidentifyunderservedareasthatwillbeusedforthepilotproject(2012).

InJanuary2012,UCAFannouncedabidtocovercertainremoteareas.ThetenderdidnotgoforwardasbiddersdeemedthemaximumsubsidyofUS$820,000inadequate(inadditiontoalackofgeo-marketingandtechnicalsurveythatwouldhavebeenneeded84)inviewofboththeinitialcapitalexpendituresandongoingoperatingexpensesrequiredtomaintainsitesthatmaynotbeeconomicallyviable,giventhelownumberofPOPsintheseareasandlackofaccessroads.

84. typically, if fund managers do not have the requisite in-house expertise to carry out such activities, they would be required to hire consultants to assist.

87

SSA USF STUDY

tOGO year fund established: 2001 legal establishment.2002: operational.


•DecreeNo.2001-195/PRofSeptember162001describesthemechanismsforusingaspecialaccountfortheuniversalservice.

•Decree2001-007/PRof07February2001onfeespayablebyoperatorsandprovidersoftelecommunicationsservices.

•Replacedby:DecreeNo.2006-041/PRonfeespayablebyoperatorsandprovidersoftelecommunicationsservices.


OperatorsareallowedtosubmittheirbidsaspartofprogrammesselectedbytheMinistryandcannegotiateagreementsregardingtherealisationoftheUS.ThenewvisionsetbytheGovernmentinitspolicystatementinMay2011intendstoinvolvestakeholdersinmanagementprocesses.


2% of annual gross revenuesnetofinterconnectionpaymentsfromalloperators(whichcorrespondsto66.66%oftheannualchargesleviedonalloperators,whichare3%oftheirrevenues).

InthesectorialpolicydeclarationadoptedbytheGovernmenton18May2011,itisexpectedthatrelianceonotherfundingsourcesisnecessarytoacceleratetheachievementofuniversalservice.


ThesumsallocatedtotheUniversalServiceshouldbeused:•fordevelopmentofruraltelephony(aminimumgrantisawardedbytheRegulatoryAuthorityto

thebidderfollowingatender);•tocoverlossesrelatedtotheimplementationofservicetocommunitiesnotyetservedbyan

operator(communitieswithlowdensity);and•FortheinstallationofpublictelephonesinareasconsideredtobedisadvantagedbytheMinister

afterconsultingtheRegulatoryAuthority.


Togoemploysa‘payorplayregime’.TheRegulatorrunsanannualsurveyinordertodetermine‘unservedareas’.ProjectsareawardedfollowingaproposalbyeligiblecandidatesandevaluationbyNRAbasedontheleastcostsubsidy.OperatorsprovidingUniversalServicecanbecompensatedfor:•Netcostoftheroutingofcallsbetweentelephonesubscribers;•Netcostofprovidingpayphonesnationwide.

Thefreeroutingofemergencycallsisnoteligibleforcompensation.Onlythecostsincurredfortheimplementationofanemergencycallcentre,ifaskedtodosobytheState,ischargedtotheUSaccount.TheMinisterforTelecommunicationsafterconsultingwiththeRegulatoryAuthoritycandecidetocompensateforotherspecialUSobligations.

Governance MinistryforTelecommunications.

LevelofActivity Moderate activityno financial reporting•Aspartofthe2008Programme,TogocelsignedanAgreementwiththeRegulatortoprovide

serviceinseveralunservedzonesforpublicandprivatevoiceandInternetaccessandservice.•ThreeprogrammesservingruralcommunitieshavebeenpublishedbytheMinistryof

Telecommunications.Thecompensationwasawardedtooperatorsagreedtocarryouttheseprograms.

•Spontaneousinvestmentsmadebyoperatorsforprojectseligibleundertheuniversalservicebetween2002and2005werecompensated.

•About190ruralcommunitieswerealreadycoveredunderspontaneousinvestmentsbytheoperatorsbetween2002and2005andunderthe2008and2009-2010programmes.

•183otherlocationsareplannedtobecoveredbasedonthreeagreementssignedbetweentheMinistryandtheoperatorson3May,2012underthe2011-2012programme.

•The2013programmewastobepublishedattheendof2012,takingintoaccounttheareasremaininguncoveredaftertheachievementsof2012.however,asofApril2013,thisreporthasnotyetbeenpublished.however,theARTPdidpublishatwopagesynthesisoftheImplementationoftheUniversalServicePlan,mentioningtheexpansionofservicestoruralcommunitiesandunder-servicedareasbutwithnospecificforecastortargets.

8.20

tOGO

88

SSA USF STUDY

8.21

uGanda

uGanda year fund established: 1997. 2001: legal establishment.2003: operational.


•The1997UgandaCommunicationsAct.•RuralCommunicationsDevelopmentFund(RCDF)establishedundertheCommunications

(EstablishmentandManagementoftheRuralCommunicationsDevelopmentFund)Instrument,2002.

•The2005Communications(UniversalService)RegulationsoutlineacomprehensiveuniversalservicepolicyforUganda.

•In2002,theUCCadoptedaRCDFManualofOperatingProcedurestoguidehowtheBoardshouldmanageandadministerthefund.


RuralCommunicationsDevelopmentFundisaninternalunitofUCCmanagedbytheManageroftheRCDF,appointedbytheUCC.ABoardappointedbyandreportingtotheUCCisresponsiblefortheexecutionofthestrategyforRCDF.


1% of gross annual revenue,netofinterconnectionpayments,fromalloperators,includingthepostalservicecouriersandISPs.TheRCDFmayalsoreceivefinancingfromtheUgandaParliament,aswellasdonationsandgrantsfromdevelopmentpartners,andgiftsandloans.

Accordingtothe2005Regulations,UCCshouldestablishamechanismforsharingthenetcostsofsupportingtheuniversalserviceobligation(i.e.,differencebetweenthenetcostforanoperatorofoperatingwiththeuniversalserviceobligationandoperatingwithouttheuniversalserviceobligation)suchthattheuniversalserviceobligationdoesnotrepresentanunfairburden.


RuralCommunicationsCoverageandInternetServices.Fundsareavailableforareaswhereserviceprovisionisnotfeasibleorunlikelytobeprovidedbytheoperatorsinthenext1-2yearswithoutsubsidy.Theuniversalserviceobligationsinclude:•Emergencyandfreeservices•Operatorassistanceanddirectoryenquiryservices•Servicesforpeoplewithdisabilities•Basicpostalservices;•ReasonablelevelsofaccesstopayphonesforallUgandansonanequitablebasis


Operatorscanaccessthefundthroughcompetitivepublicopenbiddingwhenarequestforabidisissued–usuallybasedonleastsubsidyrequested.UCCalsoentersintoPublic/PrivatePartnershipstoimplementselectedprojects.

Governance BoardoftheRCDF:consistsofrepresentativesoftheUCC,theUgandaPostalsector,UgandaConsumerProtectionAssociation,UgandaInstitutionofProfessionalEngineers,theUgandaInstituteofBankers,andtheMinistryofICT.

LevelofActivity High activityfinancial reportingFundshavebeenavailableforareaswhereserviceprovisionisnotfeasibleorunlikelytobeprovidedbytheoperatorsinthenext1-2yearswithoutsubsidy.154underservedsubcountiesofUgandahavebeenidentifiedanddividedinto3universalaccessareas.Between2003and2009,thefocusofRCDFprojectswasonensuringaccesstoICTservicesfortheunderservedareas.Subsequently,theRCDFprojectfocusshiftedtoensuringusageofICTservices.

Approximately5,482projectshavebeenaccomplishedbytheendof2010/11:•106Internetcafes•175healthICTfacilities•78ICTtrainingcentres•76InternetPOP•13Multi-PurposeCommunityTele-centres(MCTs)•45PostalTele-centres•708SchoolICTLabs•78Webportals•4,099Publicpayphones•90GSMsites•6Contentdevelopment•2Localgovernance•6Uniqueprojects

89

SSA USF STUDY

zaMbia year fund established: 1996-2009 establishment.2009 operational.


•ICTAct2009,Section70•Nosecondarylegislationenactedyet•DraftUniversalAccessPolicy2009•Previously,theTelecommunicationsActof1994addressedtheconceptofuniversalaccess

totelecommunicationsservicesbymandatingtheCommunicationsAuthoritytotakeallreasonablestepstoextendtheprovisionoftelecommunicationsservicesthroughoutallruralandurbanareasofZambia,includingemergencyservice,publiccallboxservices,anddirectoryinformationservices.howevernosecondarylegislationwasenactedtosupportmanagementandadministrationoftheFund.


•OriginallyundertheRegulatorCommunicationsAuthorityofZambia(CAZ),nowcalledtheZambiaInformationandCommunicationsTechnologyAuthority(ZICTA).

•ICTAct2009establishesanIndependentAgencyforUSF.•TheFundshallbemanagedandadministeredbyaFundManagerappointedbyZICTA.•TheFundManagershalleachyearpublishdetailsoftheactivities,thecontributionsto,and

allocationsfromtheFundwithinthreemonthsattheendofthefinancialyear.


•Priorto2009,CAZwasraisingmoneyfortheFund(BoardResolution)throughannuallicencefeesremittancefromalloperators(holdersofIndividualNetworkandServiceLicencesandholdersofClassNetworkandServiceLicences).

•OperatorswouldpayRegulatoryFees:individual network licence [2%] and individual service licence [3%] on annual Gross turnover (less interconnect and vat).

•Since1998CAZhasbeenretaining 10% of its revenue from the annual licensing fee aspartofUniversalServiceDevelopmentFund.

•InFebruary2009ZICTAcreatedaseparateBankAccountfortheuniversalaccessfunds.•PolicyandRegulationsonceinplacewilldeterminebreakdownfromRegulatoryfeestobeallocated

touniversalaccessfundpool.•CurrentpoolofuniversalaccessfundsareallocatedfromRegulatoryfeesbydecreeoftheZICTA

Board.Othersources:•AnymoniesappropriatedbyActofParliamentforthepurposesoftheFund.•AnyothermoniestowhichtheFundmaybelawfullyentitledmayalsobeused.


Mainobjectivesofuniversalaccess:•PromoteaccessibilitytoICTfacilitiesandservicetoallresidentsinZambia•PromoteaffordabilityofICTservicestoallcitizensintermsofpricing•PromoteavailabilityofICTfacilitiesandservicesnationwide

Theoverallobjectiveofthe2009ICTActistopromotethewidespreadavailabilityandusageofelectroniccommunicationsnetworksandservicesthroughfundingtobeprovidedforbasicservicestounservedorunderservedpopulationsegments:•Ruralconnectivity•Roadaccessibility•Renewableenergy/solarprojects•Ruralelectrification•Payphonerollouts


•Allocationprocessnotyetdetermined.•TenderbidandFunddirectfinancingthroughpurchaseofICTequipmentforprojects.

Governance TheMinistershallcauseanannualstatementoftheincomeandexpenditureoftheFundtobepreparedandlaidbeforetheNationalAssembly.

8.22

zaMbia

90

SSA USF STUDY

LevelofActivity inactiveno financial reportingFundnotactiveyet,thoughanumberofprojectshavebeenimplementedbyCAZandZICTAundertheguiseofuniversalaccess.FundshavebeenallocatedinthepastatZICTA’sdiscretion.FirstdisbursementtoLinkNetdonebytheRegulator.US$65,000hasbeendisbursedin2009-ZMK1Bwasgiventofinancethreeruralmultipurposetele-centres.ProjectsimplementedbyZICTAhasincluded:•Theplannedconstructionofover200CommunicationTowersinruralandunservedareasof

Zambia.(Thishasnotbeendoneandthetenderwascancelledinpreferenceforacollaborativeapproachwithoperators.Forexample,Airtelhassincedeployed174ruralsites.ZICTAhassupportedthisthroughleaseacquisitionsandpaymentofratesandrentasapplicable.);

•EstablishmentofMulti-purposeCommunityTele-centresinover15selectedareasinthecountry;•ProvidinglastmileOpticFibreconnectiontotheCopperbeltUniversity,UniversityofZambiaand

MulungushiUniversityundertheZambiaResearchandEducationNetwork(ZAMREN).ZICTAiscurrentlyfocusingonthefollowingprojects:

•Multi-purposeCommunityTele-centres(MCTs)toprovideaccesstobasicICTsandtelecommunicationsserviceinvariousruraloutpostsinZambia;

•GSMservicesincludingfundingnetworkexpansiontoidentifiedruralareasofeachoperator.TheAuthorityisexpectedtofundsharableinfrastructuresuchastowersandsiteenergy.(Thishasnottakenoff)

•PoPstoextendInternetserviceprovisioninruralareas.(Thishasnottakenoff);and•Computerlabsinschools.

In2011,ZICTAsetasideZMK59billion(overUS$10million)fromtheUniversalAccessFundsfortheinstallationofcommunicationtowersthroughoutZambiathatwillalsobeusedtoconnectschools.ZICTAhasnotinvitedsubmissionsafterMarch2011.however,Airtel,forexample,iscurrentlyaccessingfundsthroughanadhocarrangement-the350UniversalAccessrolloutproject.

91

SSA USF STUDY

ziMbabWe year fund established: 2001


•PostalandTelecommunicationsActof2000providedforthesettingupoftheUniversalServiceFund.

•PolicyonUniversalService2001.•Regulationsof2001,requiredoperatorstomakeacontributiontowardstheUniversalService

Fund,asapercentageoftheirGrossTurnover.•PostalandTelecommunications(UniversalServiceFund)Regulations,2005.


UniversalServiceFund(USF)asaninternalunitandaccountattheRegulator,thePostalandTelecommunicationsRegulatoryAuthorityofZimbabwe(Potraz),ismanagedbytheBoardofTrusteesofFundaspartoftheRegulatorandDeputyDirectorGeneralofNRA.


2% of Gross annual Revenues fromalloperators.PotrazcancontributethroughmoneyappropriatedbyanactofParliamentandsurplusfundsattheendoftheregulator’sfinancialyear.


In2001,UniversalServiceObligationswereimposedoneachOperator:•Rollouttargetsinunder-servicedareas;•Provisionofpublicpayphones;•Provisionofaccesstopublicemergencycallserviceanddirectoryinformationservice;•OperatorstoprovideservicesthroughoutthecountryincludingruralareasandatCommunity

Centresinunder-servicedareas.•Fundtofinanceprovisionofservicesinremoteareas.


Publicbiddingprocess.

Governance BoardofNRA.

LevelofActivity low activityno financial reportingTargetsnotachievedduetoeconomicandpoliticalsituation.MinistryofFinancedecidedin2010touseunusedfundsfor:•Fibreopticbackbone:•Extensionofcellulartelecommunicationservicesinruralareas;•ImprovingaccesstoICTinunder-servicedareasandcommunitiesaswellasschoolsinbothrural

andurbanareas;and•E-GovernmentIn2011,Potrazissuedabidtoinstallpassivetelecommunicationinfrastructureindesignatedruralareas.Firstinvestmentsin8provincialcitiesfortheremotenetworkcoveragestartedin2011.

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• General • Africa’sICTInfrastructure,BuildingontheMobile

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• InsightstotheAfricantelecommarket2011:Analysis,forecastsandcommentary,byTelecomsMarketResearch.com,inassociationwithBuddecomm,August2011

• IstheUniversalAccessFundinAfricaCreatinganEnablingEnvironmentforICTInfrastructureInvestmentinRuralandPerceivedUneconomicAreas?,EnricoCalandro,http://ssrn.com/abstract=1724465

• ReportonUniversalAccessandServiceFundsintheSub-SaharanAfricanRegion,ITU,EdgardoSepulveda,April2010

• ReportOnUtilisationandManagementofUniversalAccess/ServiceFunds,AssociationofSouthernAfrica,Gaborone,Botswana,2009

• RuralBroadband,CTO,CRCAfricaForum,Tanzania,August,2011

• SADCToolkitonUniversalAccessFundingandUniversalServiceFundImplementation,harmonisationofICTPoliciesinSub-SaharaAfrica,ITU2011

• Mobileoperators:BhartiAirtel,Etisalat,Orange,vodacom,vodafone

• AUSAFA: • OfficialEventReport,TheInauguralMeetingof

theAfricanUniversalServiceandAccessFund(AUSAFA),InmarsatConferenceCentre,LondonUK,10December2008

• ConstitutionoftheAfricanUniversalServiceandAccessFundAssociation,August26,2008

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UniversalAccess/Service • ECOWASSupplementaryActA/SA.3/01/07onthe

LegalRegimeApplicabletoNetworkOperatorsandServiceProviders(2007).

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électroniquedeBurkinaFaso,www.arce.bf• Côted’Ivoire: • AgencedestélécommunicationsdeCôted’Ivoire

(ATCI):http://www.atci.ci• DominicanRepublicofCongo: • AutoritédeRégulationdelaPosteetdes

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paper-Morocco.pdf • http://www.internetworldstats.com/af/ma.htm• Mozambique: • InstitutoNacionaldasComunicaçõesde

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theannualcontributiontobepaidbythetelecomoperatorstotheUniversalServiceAccessFund

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us/en/documents/white-papers/usf-support-ictbroadband-programs-paper.pdf

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• http://mybroadband.co.za/news/business/12023-mozambique-s-tmo.html

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Regulators.aspx# • http://www.africantelecomsnews.com/resources/

AfricaOpp_Nigeria.shtml • http://thenextweb.com/africa/2011/08/08/getting-

the-next-50-million-nigerians-on-broadband/• Rwanda: • RwandaUtilitiesRegulatoryAgency(RURA):

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