Assistance to the Establishment of the Telecommunications Regulatory Authority in Lebanon SCR-E/111668/D/SV/LB
Eurostrategies
The Telecommunications Regulatory Authority (TRA)www.tra.gov.lb
G Alan HornePresentation at Termium
22nd Sept 2004
EurostrategiesThird Floor, Ministry of Telecommunications
Riad El-Solh Street, Beirut, Lebanon
Fixed line: +961 (0) 1 981 490
Lebanon Mobile: +961 3088660
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Introduction
• Objective over the next 30 minutes to present:– Mission of TRA– Legal basis– Powers– Budget & Funding– Organisation– TRA Strategy– Establishment of Regulations– Sector Development– Conclusions
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TRA Mission
To regulate the telecommunications sector so as to achieve a competitive environment delivering a wide range of high quality
services at competitive prices, in order to assist in the overall development of the Lebanese economy for the benefit of
businesses as well as all the citizens of Lebanon.
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Legal Basis
• Telecommunications Law - 2002– Creation of Telecommunications regulatory Authority (TRA);– Corportatisation - Creation of Liban Telecom;– Privatisation;– Restructuring Ministry of Telecommunications to focus on: Policy, International
Relations and TRA supervision;
• Enabling Decrees– Administrative Decree and financial Regulation of the TRA (Art 4);– Appointing the TRA Board (Art 6.1, Art 7, Art 8);– Remuneration of Board Members (Art 9);
• The Authority shall not be subject to rules governing public institutions but shall be subject to post Audit by Public Audit Court;
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TRA Powers
• The Law gives TRA power to manage all aspects related to:– Promotion of competition and stop anti competitive actions;– Licensing, Spectrum, Numbering, Interconnection;– Technical standards;– Tariffs;– Enforcement and imposition of penalties;– Mediation and arbitration;– Supporting educational and health institutions and facilitate the
physically disadvantaged through telecommunications– Draft Decrees to detail specific areas of regulation:……
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Tel
ecom
s Se
ctor
Tel
ecom
Decrees
TRA Strategy, Policies, Procedures
Guidelines & Decisions Licences
Inte
rcon
nect
ion
Lic
ensi
ng
Cer
tific
atio
n
Spec
trum
Num
beri
ng
Primary Legislation
TR
A st
ruct
ure
Lic
ense
s (A
rt. 1
9)
Lib
an T
elec
om
Acts of Parliament
Dat
a Pr
otec
tion
MIC
1
MIC
2
Cla
ss
Publ
ic B
udge
t (A
rt.1
1.2.
2)
TR
A
?
GoL Policy Documents
E
Com
mer
ce
Com
petit
ion
Secondary Legislation
Policies
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Budget & Funding (Art 11 & 12)
• Financial independence – own fund;
• Independent audit - Post Audit by Public Audit Court;
• Publish financial statement;
• Sources of fund…
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Sources of fund
AdminLicence
feesMinistry
offinance
TRACentral Bank
ofLebanon
RadioSpectrum
Administrationfees
RadioSpectrumLicence
Fees (usage)
Art. 17
$x
Art. 17
< 10% of $x
Art. 11-funding 1(a)
Art. 11-funding 1(b)
Art. 11 funding 2)
Full TRA budget for 2 years
TRA Surplus
Funds from competitive bidding process and usage
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TRA Organisation
Chairman
Legal Affairs & Licensing
Telecommunications Technology
Information & Consumer Affairs
Marketing & Competition
TRA Board
Manager Legal Dept.
Manager Licensing
Dept.
Manager Spectrum
Dept.
Mangr Policy/US
Dept.
Mangr Market
Anal Dept.
Mangr Tariffs Dept.
Manager Consumer Protection
Dept.
Manager Public
Relations Dept.
Manager Standards/QoS Dept.
Manager Technical
Dept.
Head
Financial.
Head
Admin
Head
Int. Audit
Lawyers, licensing officers
Interconnection, numbering, type
approval spectrum
Public relations, dispute
resolution, contract
managers
Wholesale and retail tariffs,
market analysis, universal service
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The Board
• Appointed and terminated by Decree (Art 6)– Chairman and four members for non-renewable or non-extendable
period of five years – proposed by the Minister and adopted by the Council of Ministers;
– No direct or indirect interest with any person that provides telecommunications services and equipment;
– University degree and experience related to position being taken;(telecommunications, economics, business administration, law, finance, engineering, computer science)
• Remuneration set by Decree;
• Meetings majority votes on all legal matters;
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TRA Operational Objectives
• Make the right decisions through consultations and must:– Be accessible to all via telephone, internet and when appropriate face to
face meetings– Communicate objectives, policy, decisions via web site, media
relations, conferences and workshops• Must
– be efficient in its operations– create an efficient competitive environment;– be responsive to the consumer;– be responsive to the Licensees;
• Efficiency depends upon:– Well educated and well trained staff;– Effective systems (Use of CRM and IMS);– A core set of clear policies, guidelines and procedures;
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TRA Strategic Plan
• Goals for the TRA will be set to achieve the Authority’s Mission and must be defined in line with the needs of the Lebanese telecommunications sector;
• A Draft TRA five year Strategic Plan has been prepared for consideration by the Board when formed;
• The priorities were arrived at after informal interviews with key stakeholders, including users, operators, politicians, the Ministry of Telecommunications (MOT) and investors
• Three Key Goals are proposed dealing with:– Competition– Regulation– Broadband
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Competition
• Support the economy of Lebanon by ensuring that there is a comprehensive and sound competitive framework for communications services matching international best practices;
• Foster innovation and offer consumers real choice ensuring that the widest number of customers obtain the widest range of high quality services, meeting users’ needs at affordable prices;
• The pro-competitive framework should be promoted domestically and overseas.
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Regulation
• Establish an effective and independently regulated environment.
• Emphasise performance and results through excellent management.
• Develop and retain independent mission-critical expertise and align the TRA with the dynamic communications markets so as to achieve a liberalised and competitive regime in telecommunications.
• Promote an environment which will encourage investment in the telecommunications sector as the basis for the attraction and development of the information economy.
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Broadband
• Establish regulatory policies that promote competition, innovation, and investment in broadband services and facilities;
• Monitor progress toward the deployment of broadband services in the Lebanon;
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To implement the Strategy
• To implement the Strategic Plan we need to create:– Policies– Decrees– Guidelines– Procedures
• All will be developed using the Consultation Process;• Policies, Guidelines and Procedures are being prepared
covering such areas as:– Licensing– Numbering– Spectrum– Certification– Tariffs
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Telecommunications Industry
MoTGSMOwnership
Fixedoperations
Policy
OGERO
Mobile 1
Mobile 2
Regulation
Radio spectrum
Int.Relations
ISPs
TV distmmds/cable
TV Regulation
Data n/wprovidersPrivate n/w
Admin
Sector Development - today
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TelecommunicationsIndustry
MoT
Ministry/Governmental
organisation
Int.Relations
SectorPolicy
100%Ownership Mobile 1
Mobile 2
ISPsLiban Telecom
TRA
TV distmmds/cable
LALUTTU ICAU
MCU
Mobile 3 ?
Data n/wproviders
TRAsupervision
Admin
Admin
By the end of 2005
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NeCoNewCo
Operator nVoice, Data
Fixed & Mobile
GoL
EquipSuppliers
Operator 1Voice, Data
Fixed & Mobile
Operator 2Voice, Data
Fixed & Mobile
IndividualServicesLicence
ISPsISPs
ISPsISPs
customers
ClassLicences
InterconnectionRegulation
Competition Regulations
Retail tariff Regulations FrequencyManagement
NumberManagement
Number Portability Clearing House
Interconnection Clearing House
TVRadio
Mobile, fixed wire, fixed wireless, WiFi, cable, broadcast
Regulator
PolicyMaker
< 50%Ownership
LawPolicy Decrees
ISPsISPs
ISPsISPs
ISPsISPs
ISPsHosts
By the end of 2010
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By the end of 2010
• Class Licences for most types of operations which do not need to be applied for;
• Particular licences only for infrastructure development;• Three national infrastructure providers, each competing on equal
terms and with a significant non government share holding?;• Operators able to sell any type of service and use any type of
technology;• Other service providers offering indirect access;• Customer able to change service provider and keeping number;• Voice and data services and prices matching international best
practice and cost orientated• Universal service fund set up to support service provision to
uneconomic areas;
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Licensed Operator
Operator Structure
Carrier ServicesDepartment
Operating Network
Retail ServicesFixed Line
ServicesMobile
ServicesISP
ServicesLeasedServices
MobileOperator
Fixed LineOperator
ISP
Account Separation
Non discrimination
Transparency DataOperator
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Strong Regulation in definitive areas
• Regulator controls:– Numbers;– Spectrum;
• Regulator sets regulations for:– All wholesale services of operators with SMP in such services;– Basic retails services of operators with SMP (e.g voice, internet access,
leased lines)
• Creation of Fair Competition is essential to success.
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Resulting benefits to all stakeholders
• Consumer– Choice of supplier– Lower prices– Improved services– Easier access to new systems and services
• Government– Increased value of assets– Increased volume of usage– Increased direct fees from sector– Increased indirect fees from improved business performance
• Operators– Improved economy of scope and scale;– Regulated interconnection and wholesale prices
• ISPs and Value Added Resellers– Ease of market entry– Wholesale interconnection prices
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Conclusion
• The latent demand for telecommunications services at affordable prices creates a significant opportunity for Lebanon;
• The Government in implementing its Telecommunications Law and Policy will unlock this latent demand and bring benefit of all stakeholders;
• The creation of the TRA is the next step in the implementation of the reform.
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A TRA working in an open, transparent and consultative manner, staffed with experienced people and learning from
international best practice will, within 5 years, have a positive impact on employment, trade, GDP and make a
significant contribution to reducing the nation’s balance of payments and debt
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