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THE ROLE OF REGULATIONIN THE DEVELOPMENT AND TRANSFORMATION OF THE POSTAL AND

COURIER SECTOR IN EAST AFRICA TANZANIA EXPERIENCE

PRESENTER; MRS REHEMA MAKUBURIDIRECTOR POSTAL AFFIARS

TANZANIA COMMUNICATIONS REGULATORY AUTHORITY

CONFERENCE ON LEVARAGING ICTS IN THE TRANSFORMATION OF THE POSTAL & COURIER

SECTOR IN EAST AFRICA

1. Reform of Communications Sector in Tanzania

2. TCRA Legal& Regulatory framework3. Postal Policy & Objectives4. Key Players of the Postal Sector5. Regulatory Functions of the Postal

sector6. Licensed of Operators7. Market Trend of Postal Service in

Tanzania8. Development of priority Activities.9. Challenges

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The Tanzania Communications Regulatory Authority (TCRA)according to the Electronic and Postal Communications Act 2010 has been empowered to License and Regulate the Postal and electronic communications sectors in the United Republic

The Postal Market Regulation in Tanzania has been specifically design to understand the dynamics of the postal sector and other factors that need to be taken into consideration when regulating the sector.

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HISTORICAL BACK GROUND 1993 the Govt took initiative of Unbundling of

Telecommunications and postal company focusing on core businesses to facilitate growth through regulatory framework.

1994 Establishment of Regulatory body and separations of Postal, Telecommunications sectors formed the following Tanzania Communications Commission Tanzania Posts Corporation Tanzania Telecommunications Company

2003 Establishment of Tanzania Communications Regulatory Authority (Merging of communications and Broadcasting sectors)

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TCRA mandates emanates from Tanzania Communications Regulatory

Authority Act No.12 of 2003 Electronic and Postal Communications Act

(EPOCA 2010)Regulations The Tanzania Postal Regulations 2011 Tanzania Communications (Consumer

Protection) Regulations 2011 The Tanzania Communications (Tariff)

Regulations 2011 The Tanzania Communications (Quality of

Service) Regulations 2011

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National Postal Policy Objectives (2003) Developing and Transforming the Postal

Sector to serve the national market and beyond ie; within East Africa and other international markets.

Involve private sector participation; the Courier services in the provision of postal services; stimulate competition and growth of the market for provision of quality postal services.

Use of ICTs to modernize the postal sector services to satisfy diversified customer demands

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The Government- Define Reforms, formulate strategic policy guidelines for development of Postal sector.

The Regulator-TCRA implement Policy objectives (Establish & enforce rules for competitive market) monitor development of the Postal sector.

The Operator – Develop infrastructure, Apply ICTs provide efficient and affordable Postal services.

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Promote competition among postal service providers Establish standards and Monitor compliance and codes of conduct in respect of postal services. Monitor performance and enforcing license conditions of Postal service licensees in the country Administer implementation of National Postal Policy. Identify and encourage the use of appropriate technologies, and methods of widening the access to postal services in rural and disadvantaged areas; advise on appropriate rates and charges of basic postal service;Guaranteeing maintenance of the universal service obligation and ensuring its funding for the provision of universal Postal service

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1. Public Postal Operator;Tanzania Posts Corp. Licensed for 25 years Mandated for the provision of universal Postal Services; 399 Post offices (www.posta.co.tz)Basic tariff regulated, less than 500gm letter mail, 30kg parcels. mandated to Issue postage stamps.PPO is Licensed for provision of Financial services in colaboration with Cental bank (BOT)

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2. Courier Operators;Intercity Courier Services Intercity Transport Courier Services Intracity Courier Services Domestic Courier ServicesEast Africa Courier Services-3International Courier Services-4

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General License Conditions: Definition, Scope, Duration and Renewal of License, Ownership & Corporate obligation, License Fees, Compliance with the Law and Regulatory requirements, Human Resource Development, compensation to customers.

Specific Conditions on Postal Issues:

Universal postal services,Confidentiality and integrity of

PostalItems,Consumer Protection UndeliveredPostal Articles; Security & safety.Quality of Service.

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Enforcement exercise conducted periodically to operators insuring license conditions are observed.

Quality of service monitored against standards set e.g. (J+5=85%) plus Universal postal service provision

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Universal services

Electronic services

Courier services

MAILS AND PARCELS MARKET SHARE OF COURIER SERVICE

PROVIDERS (CPS)

MAILS AND PARCEL MARKET SHARES FOR PPO AND CPS

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PARCELS

MAILS MAILS

PARCELS

TCRA POSTAL MARKET STUDY EBL

CONSULTANT 2011

MARKET SHARE OF PPO & CPS OF

REVENUE IN TZSHS

CPS INVOLVED IN HIGH VALUE

ITEMS

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Fig1. Domestic Posted Items 2000 2011‐

www.tcra.go.tz

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www.tcra.go.tz

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Scandinavia buses at the Kampala Terminal in 2004 before the company collapsed. Source: Photo The East African Newspapers

Stiff competition among EA Courier service providers in the regional Scandinavia and Akamba, - collapsed over the past decade.

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Adequate standards and regulations to enhance quality of service (QoS); improved access and performance (EPOCA &UPU standards )

Quality of mail service Delivery Performance tests periodically for PPO national and international mail fixed(PPO) and Mobile Automatic Mail Quality Measurement system(Regulator)

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Reports are analyzed against the delivery standards.

Regulatory measures taken to the Operator, In case of variations with the delivery standards

The Authority receives reports from International Postal cooperation (IPC) on weekly basis. (Currently there are technical challenges between IPC & Lyngsoe; alternative measures are being sought)

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Encourage the development and ICT products, and Financial services

Developing the National addressing and postcode system .The Regulator put in place the infrustructure

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the Internet and the digital technology are fundamentally changing the worlds of communications, transportation, and commerce

New technologies have been “disruptive innovations” for traditional postal services resulting in an overall decline in the volumes of mail.

The Licensing framework by the Regulator encouraged PPO to offer a variety of solutions through ICT. Application Service License issued by Regulator

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Guarantee the concept of Universal Service Obligation. USO Act in place since 2005. Funding mechanism in operational. ( Contributors; Regulatory Authority & communications operators) PPO & Courier operators are yet to contribute to the fund.PPO mandate on the provision of UPS & its Financial strength.Timely Regulatory intervention -Entry of new players national & international require timely intervention to protect the interests of operators and consumers.

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Adoption of New technologies & Infrastructure improvement; Counter Services Automation and other electronic services , IPS, IFS currently avilable in the urban and disrict areas - The need to extend new infrastructure in the rural and remote areas to allow connectivity to rural post offices.(Fibre Optic cables and electricity )New Customer Expectations,Demand for value for moneyChanging customer needs/requirements

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Thank you for your attention !rmakuburi@tcra.go.tz