SANDTON, South Africa-Until a short time ago, many African countries did not see the need for independent regulatory bodies. The monopoly state-owned telephone operators were regarded as all that was needed to provide telecommunications services and to perform any regulatory functions.
This view is changing fast. A number of African countries have created independent regulators, and others are following at an ever-increasing pace. To a large extent, this has been precipitated by developments in other parts of the world, with the major liberalization efforts in Europe giving impetus to the process.
However, the need to attract foreign investment has been a strong driver as well in African countries. Liberalization, deregulation and privatization are increasingly valued as vehicles that attract foreign investors.
Governments wanting to remain in power are increasingly aware that consumers want variety and freedom of choice in telecom services. Investors have similar demands, and prospective operators want transparency in licensing processes.
These needs can only be fulfilled by a regulator that operates reasonably independently from the government’s daily whims.
“Regulators have to have a high level of independence from vested interests and government in order to be effective and to instill the necessary confidence with investors and the user public,” said Ronnie Seeber, manager for government relations and standards for Motorola. “A good regulator will follow sound philosophies and guidelines.
“It will aim at minimum regulation, allowing market forces to operate as freely as possible. It will also believe in good tools and human resources to manage the radio spectrum, the most fundamental reason for regulation. A good regulator will not prescribe to an operator what technology to use, but will, in developing its frequency-allocation plan, take good note of the technologies available and those on the horizon.
“We are fortunate in seeing great moves towards these philosophies in the Southern African Development Community (SADC) region.”
A model telecom act
Some significant developments in the SADC region have been at the levels of telecom policy and legislation.
A little more than a year ago, the SADC’s Southern African Transport and Communications Commission (SATCC) embarked on a process to develop telecom policy embodying liberalization, deregulation, privatization and foreign investment. This process included private-sector participation, with companies such as Motorola. It led to an extensive policy document, which has been accepted at the intergovernmental level, together with a model telecommunications act.
The model telecom act outlines the powers and responsibilities of a regulatory body and provides a convenient basis and framework for countries that would like to implement new policies through legislation. Part of the legislation provisions help prevent the government’s arbitrary dismissal of the regulator’s head or governing body.
This document is likely to bring quickly into the fold those SADC countries that have not instituted independent regulators. At the ground level, countries are bound to see many important developments as investors gain confidence. Foreign telecommunications operators can be expected to join with local groups to form new operator enterprises, and overseas investment in local manufacturing concerns is possible.
Frequency allocation plan
Additional efforts are coming from the Telecommunication Regulators’ Association of Southern Africa (TRASA). Formed in 1997, it is still in its infancy, with eight independent regulators: those from South Africa, Namibia, Zambia, Malawi, Zimbabwe, Tanzania, Mauritius and Mozambique. The remaining SADC countries’ governments have observer status.
TRASA’s main aim is to promote, through coordination and good regulatory practices, efficient and cost-effective telecom operations. In its less than two years of existence, TRASA has involved itself with a formidable list of issues, including licensing, service tariffs, interconnection of networks, numbering schemes, compatibility standards and the radio-frequency spectrum. In another year or two, as the policies of liberalization and deregulation take effect, TRASA membership is expected to increase to include the full complement of independent regulators from SADC countries.
One important area that TRASA is currently focusing on is the development of a frequency-allocation plan for the SADC region. A regional band plan will have major benefits in harmonizing spectrum use and thus eliminating interference. The major advantage, however, is that frequency bands common to all SADC countries would effectively increase the market size for telecom equipment sales.
The economy-of-scale advantages could be a major force in attracting overseas investment in telecommunications, stimulating local industry and benefiting consumers.
One particular problematic area in creating the band plan is the exceptional need in the region for fixed wireless access and mobile services. The region has a tremendous backlog of people waiting for telephone service, and radically enhancing universal service is not feasible without large-scale wireless system deployment.
As a result, the band plan task group is looking at the possibility of reallocating broadcasting spectrum in the 800 MHz band to fixed wireless access and mobile services.
A number of sophisticated technologies in the 800 MHz band have come into widespread use for fixed telephony. The 800 MHz band is highly desirable, compared with bands at higher frequencies, because it is much more suited to the African environment, especially the more rural terrain. Radio propagation is more favorable, and areas three to four times in size can be covered from one base station compared with the area covered in the 1800 MHz or 1900 MHz band.
The task group is also looking closely at frequency allocations for trunked radio systems, with the 400 MHz band identified as one that justifies regionwide allocation. The lack of a common frequency band that commands a wide range of both vehicular and portable subscriber units, along with strong competition, has stunted trunked systems’ growth in the region.
“We believe that the SADC band plan, through introducing spectrum resources for effective and spectrum-efficient technologies, while increasing the market and enhancing competition, will lead to more affordable telecommunications services and will stimulate economic growth and foreign investment,” noted Motorola’s Seeber, an adviser to TRASA. “It will also pave the way for technologies that could be of great value in the info-communications industry and the convergence among telecommunications, information technology and broadcasting.”
