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INTERNATIONAL MOBILE NUMBER PORTABILITY (MNP) IMPLEMENTATION AND MANAGEMENT SUMMIT, MLIMANI CITY, DAR ES SALAAM, 15 NOVEMBER 2012

“REGULATOR’S ROLE IN ENSURING SUCCESSFUL M O B I L E N U M B E R P O R T A B I L I T Y ( M N P ) IMPLEMENTATION AND MANAGEMENT”

John S Nkoma

Director General Tanzania Communications Regulatory Authority (TCRA)

CONTENTS

          1.  Introduction: 2.  Communications Sector Overview 2.1 ICT Devices 2.2 Institutional Framework 2.3 Policies, Legislations and Regulations 2.4 Licensing Framework 2.5 Market Growth – Service Providers 2.6 Market growth – Subscribers 2.7 Infrastructure Growth 3.0 Available MNP Implementation Approaches and Management

Options 3.1 MNP Implementation Approach and Management Option for TZ 3.2 ….Clearing House Administration 3.3 Regulatory involvement in MNP Implementation 3.4 Collaboration efforts between Stakeholders 4. Challenges in the Communications Sector 5. Concluding Remarks

FIGURE 1: ICT DEVICES AND CONVERGENCE OF TECHNOLOGIES

Convergence of

Technologies

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FIGURE 2: ICT INSTITUTIONAL FRAMEWORK

GOVERNMENT

CONSUMERS OPERATORS

QoS Affordability Safety, Privacy

Business protection Profit Maximization

REGULATOR

Universal Access Low Prices, Best Services

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Institutional Arrangements �  Government   is   responsible   for   strategic   Policy  g u i d e l i n e s   f o r   d e v e l o pm e n t   o f   t h e  communications  sector  

�  The   Tanzania   Communications   Regulatory  Authority   (TCRA)   is   responsible   for   regulation  of  P o s t a l ,   B r o a d c a s t i n g   a n d   E l e c t r o n i c  Communications  sectors  

�  Operators   are   responsible   for   building,  maintaining   info-­‐communication   infrastructure,  providing  efficient  and  affordable   ICT  services   to  Tanzanians  (rural  &  urban)  

�  Consumers  expect  affordable,  accessible  and  good  QoS  and  good  QoE  

2.3.1 POLICIES Ø National Telecommunications Policy, 1997 }  National ICT Policy, 2003 }  National Postal Policy, 2003 }  National Information and Broadcasting Policy, 2003

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2.3 POLICIES, LEGISLATIONS, REGULATIONS

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2.3.2 Communication Sector Legislations

Ø Tanzania Communications Regulatory Authority Act No. 12/2003;

Ø Universal Communications Service

Access Fund Act, 2006 Ø Electronic and Postal Communications

Act, 2010 (EPOCA) (After repeal of Tanzania Communications Act No.18/1993 Tanzania Broadcasting Services Act No.6/1993)

2.3.3COMMUNICATIONS SECTOR REGULATIONS, 2011 �  The Electronic and Postal Communications (Quality of Service) Regulations, 2011 �  The Electronic and Postal Communications (Central Equipment Identification Register)

Regulations, 2011 �  The Electronic and Postal Communications (Digital and Other Broadcasting Networks)

Regulations, 2011 �  The Electronic and Postal Communications (Computer Emergency Response Team)

Regulations, �  The Electronic and Postal Communications (Competition) Regulations, 2011 �  The Electronic and Postal Communications (Tariff) Regulations, 2011 �  The Electronic and Postal Communications (Mobile Number Portability) Regulations, 2011 �  The Electronic and Postal Communications (Postal) Regulations, 2011 �  The Electronic and Postal Communications (Radio Communications Frequency Spectrum)

Regulations, 2011 �  The Electronic and Postal Communications (Interconnection) Regulations, 2011 �  The Electronic and Postal Communications (Accounting Separation) Regulations, 2011 �  The Electronic and Postal Communications (Consumer Protection) Regulations, 2011 �  The Electronic and Postal Communications (Electronic Communication Numbering and

Addressing) Regulations, 2011 �  The Electronic and Postal Communications (Access, Co-Location and Infrastructure

Sharing) Regulations, 2011 �  The Electronic and Postal Communications (Licensing) Regulations, 2011 �  The Electronic and Postal Communications (Electronic Communications Technical

Standards) Regulations, 2012 (To be published) �  The Electronic and Postal Communications (Contents) Regulations, 2012 (To be signed)

2.4 The Converged Licensing Framework (CLF)

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n  The CLF was introduced on 23rd February 2005. It

consists of four licenses: Network Facility License (NFL) Network Services License (NSL) Application Services License (ASL) Content Services License (CSL) §  The Converged licensing framework is Technology

Neutral and Service Neutral. §  Market segments: International, National,

Regional, District

1,681,012   2,327,294  2,973,576  

3,563,732  4,378,392  

4,957,320    5,311,218    

 284,109      453,359      768,449      1,445,006    

 2,090,360    3,118,157  

5,766,566  

8,486,126  

13,130,602  

17,642,408  

21,158,364  

 25,827,518    

2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011  

Figure  4:  Voice  Telephone  Subscribers  (2000-­‐2011)  Internet    Users  2005-­‐  2011  

Internet  Users   Voice  Telephone  Subscribers  

10%  

15%  

21%  

32%  

43%  

50%  

59%  

5%  6%  

7%   9%  11%   11.7%   12%  

2005   2006   2007   2008   2009   2010   2011  

Figure  5:  Telephone  and  Internet  Density/PenetraJon  

Telephone  Penetration  

Internet  Penetration  

TANZANIA NATIONAL ICT BACKBONE NETWORK DIAGRAM

Mtwara

Rusumo

NICTBB NETWORK DIAGRAM

Mbeya

Bukoba

TundumaKasumulo

WESTERN RING

SOUTHERN RING

Manyovu Horohoro

Tabora

Lindi

Tunduru

Kigoma

Sumbawanga

NORTHERN RING

Iringa

Kabanga

Mutukula

Babati

S ingida Tanga

Moshi

Morogoro

Dodoma

Biharamulo

Shinyanga

Songea

Sirali

Mwanza

Musoma

Namanga

Arusha

Makambako

Installation In progress

Operational NICTBB Construction in progress;

Phase IISEACOM Submarine OFCEASSY Submarine OFC

Operational POPPOP-Phase II POP

Undersea  cables    

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Ø  In addressing the challenges associated with High Competition Vs Limited Consumer Choices, MNP has been used as one of the Solutions enhanced with Carrier Selection/Carrier Pre-selection options.

Ø  There are two fundamental issues that need to be resolved for porting numbers between operators (Achieving Optimum Number Portability):

1)  Administration: what processes will be used for porting

numbers and managing ported numbers; and

2)  Call Routing: How will calls to ported numbers be routed in competitive networks.

3.0 Available MNP Implementation Approaches and Management Options

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Available MNP Implementation Approaches and Management Options …2

17/11/2012

Ø  The widely available MNP Porting Administration Approaches are:

ü  Bi-Lateral / Peer-to-Peer Approach ü  Centralized / Clearinghouse Approach

Ø  The widely available MNP Call Routing Options are:

ü  Indirect (Onward) Routing (OR) / Call Forwarding (CF) ü  Direct Routing using All Call Query (ACQ)

♣  Details will be given by various Experts during these two days of the Summit……

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3.1 MNP Implementation Approach and Management Option for Tanzania

17/11/2012

Ø  Taking advantage of the known benefits and the need for optimized direct routing, the Authority (TCRA) opted for:

1)  Direct Routing Option using All Call Query (ACQ); and

2)  Centralized / Clearinghouse Approach

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3.2 MNP Implementation Approach and Management Option for Tanzania -- Clearinghouse Administration

17/11/2012

Ø Asked ourselves as Who Should Operate the Clearinghouse?

v  One option could be Operator(s) to “volunteer” to manage and offer the centralized broadcast function for all operators. However, such propositions had to be evaluated extremely carefully for several reasons:

ü  What if such an operator goes out of business?

ü  How to avoid allegations of anti-competitive behavior

ü  How to control and manage this dependency?

ü  How to ensure appropriate Service Levels?

ü  How to ensure equal opportunity amongst all User-operators?

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MNP Implementation Approach and Management Option for Tanzania -- Clearinghouse Administration (2)

Consensus has emerged that: …the Tanzanian MNP Clearinghouse shall be operated by ‘an independent trusted and licensed third party’…

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3.3 Regulatory involvement in MNP implementation and management

Why……….? Ø Mobile Number Portability is used by Regulators as one of the tools for fostering competition;

Ø  Leads to improved quality of service and stimulated innovations   Ø  To enhance Consumers’ convenience and flexibility as they opt to change from one service provider to another that offers better value for money or quality; Note: the absence of this service in a competitive environment, makes personal and business communications costlier when involving change of SIM Cards, manual notification of number change and change all their stationeries such as letter heads, envelopes, business cards, signage or billboards which potentially can lead to loss of business.

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Regulatory involvement in MNP implementation and management ... 2

How…..? Ø By establishing a robust Mobile Number Portability Solution(s) where all the processes and time frame are well defined and the implementation is seamless;

Ø  As long as correct measures are introduced to protect the subscribers during the porting process, it will be easier to regulate competition .

Ø By properly planning, assigning and managing Electronic Communication Numbering resources and schemes;

Ø By periodical measurements of Quality of Service (QoS) so as to encourage service providers to improve their Quality of Service delivery;

Ø  The days of retaining customers based on network coverage alone is soon becoming a thing of the past. Going forward, the mobile communications service providers will attract new and retain existing customers based on not only network coverage, but also on Quality of Service, innovative packages, customer relations, tariffs; among other things.

Ø By ensuring effective dispute resolution mechanism is put in place.

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Regulatory involvement in MNP implementation and management ... 3

To what extent …..? Ø In Tanzania, the involvement starts from the consultative processes for Legislation and Regulations making;

Ø Licensing processes for Clearinghouse Administrator;

Ø Supervision of the MNP programme roll-out activities;

Ø Monitor the performance of the Clearinghouse Administrator;

Ø Perform Compliance enforcement activities.

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3.4 Collaboration efforts between different Stake holders to make MNP a success

Ø  In Tanzania, the Collaboration efforts starts from the stakeholders consultative processes during Legislation and Regulations making;

Ø  Tanzanian mobile operators are expected to work closely with both the Regulator and the Clearinghouse Administrator to make our MNP a success;

Ø  When Mobile Number Portability is implemented, all operators are expected to cooperate. For example, win-back tactics shall not be allowed during porting process;

Ø  Tanzanian mobile operators are expected to ensure other related critical solutions like Carrier Selection and Equipment Identification Registers (EIRs) are timely implemented in their systems;

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4.0 CHALLENGES IN THE COMMUNICATIONS SECTOR � ICT Infrastructure: National ICT Backbone,

Backhaul Terrestrial Connectivity, Submarine Cables

� High cost of bandwidth � Spectrum Management � Expansion of ICT services to rural areas � Affordable Tariffs � Cybersecurity: CERT � Simcard Registration � Standards: Counterfeit Handsets � Other Infrastructure: Power, Roads � Consumer Awareness: Choice � Others

5. CONCLUDING REMARKS           ICT Overview Institutional Framework Policies, Legislations and Regulations Licensing Framework Market Growth – Service Providers Market growth – Subscribers Infrastructure Growth Available MNP Implementation Approaches and Management Options MNP Implementation Approach and Management Option for TZ ….Clearing House Administration Regulatory involvement in MNP Implementation Collaboration efforts between Stakeholders