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REQUEST FOR PROPOSALS

Proposal Ref No. ZICTA/NL/15/17

REQUEST FOR PROPOSALS FOR INTERNATIONAL NETWORK AND NATIONAL

SERVICE LICENCES WITH ASSOCIATED RESOURCES

Contact Details

Head Office

Stand No. 4909

Corner Independence Avenue

And United Nations Road, Long Acres

P. O. Box 36871, Lusaka, Zambia

Tel:+260-21-1-246696

Email: [email protected]

September 2017

mailto:[email protected]

ZICTA/NL/01/17 Page 1

Schedule of Clauses

SECTION 1 Letter of Invitation ............................................................................................ 2

SECTION 2: Definitions ....................................................................................................... 5

SECTION 3 Instructions to Applicants................................................................................. 11

SECTION 4 Investment Proposal – Standard Forms ........................................................... 29

SECTION 5 Licence Details and Requirements .................................................................. 34

SECTION 6 Licensing Guidelines 2017 .............................................................................. 48

SECTION 7 Policy on Corruption and Fraud ...................................................................... 76

SECTION 8 Application Forms .......................................................................................... 78

SECTION 9 Technical and Financial Requirements .......................................................... 117

SECTION 10 Schedule of Fees ........................................................................................ 126


SECTION 1 Letter of Invitation

OFFICE OF THE DIRECTOR GENERAL

Date: September 26, 2017

Proposal Ref No: ZICTA/NL/15/17

REQUEST FOR PROPOSALS FOR INTERNATIONAL NETWORK AND NATIONAL

SERVICE LICENCES WITH ASSOCIATED RESOURCES

The Zambia Information and Communications Technology Authority (hereinafter referred to

as the “Authority”) is responsible for the regulation of electronic communication services and

products, and monitoring of the performance of the sector, including the levels of investment

and the availability, quality, cost and standards of the electronic communication services in

Zambia.

Pursuant to the Licensing Guidelines of 2017, the Authority intends to issue a network licence

under the international market segment and a service licence under the national market segment

with associated resources. The Authority now invites proposals that will lead to issuance

of international network and national service licences with associated resources in

accordance with the Licensing Guidelines of 2017.

The scope of the licences to be issued are as follows:

i. Network licence under the international market segment that authorizes the licensee to

install and commission gateway facilities such as earth station, VSAT/Hub, switching

centres, nodes and servers.

ii. Service licence Category “A” under the national market segment that authorizes the

licensee to provide to the public, inter-alia, voice, message, internet services, internet

telephony (VoIP), pay phone, value added services, data services, tracking services, etc.


The resources on offer are the following:

a. National Destination Code (NDC) - 098;

b. Mobile Network Code (MNC) - 645 - 04;

c. SIM Header 89 260 04;

d. Short Codes for common and emergency services as declared by the Authority;

e. Mobile spectrum in the following bands:

o 900 band - 8MHz, Frequency Division Duplex (FDD);

o 1800 band - 10 MHz, Frequency Division Duplex (FDD);

o 2600 band - 30MHz, Time Division Duplex (TDD); and

o 2300 band – 30MHz, Time Division Duplex (TDD).

f. Fixed service spectrum in the following bands:

o 5GHz;

o Lower 6GHz;

o 11GHz; and

o 18GHz;

The successful applicant shall be required to pay the fees for the resources as prescribed in the

Numbering Regulations, S.I 29 of 2010 and Fees Regulations S.I 48 of 2017.

The information to be submitted by applicants will be as specified in the licensing guidelines

and shall include among others:

a. history and experience of the applicant(s) in the establishment and operation of

electronic communications networks and services in the jurisdiction where they

currently operate or previously used to operate;

b. the size of the network the applicant has or has had;

c. the size of the network the applicant proposes to establish;

d. the type of services as well as the subscriber base; and

e. countries the applicant currently operates in.

The applicant shall provide information regarding any licences previously and currently held

relating to the provision of electronic communications networks and services.

The request for proposal document may be obtained from the Authority Head Office, Stand No.

4909, Corner of United Nations and Independence Roads, P. O. Box 36871, Lusaka at a non-

refundable fee of One Million Kwacha (K1, 000, 000.00) or its equivalent in United States Dollars

(USD). Interested Applicants may obtain further information at the same address. The telephone

number is +260 21 1 246 696.


The proposals should be appropriately bound, sealed and bold labeled and must be deposited in

the tender box situated at the Authority Head Office, Stand No. 4909, corner of Independence

Avenue and United Nations Road, Lusaka on or before Friday, November 24, 2017 at 10:00

hours local time. ELECTRONIC SUBMISSIONS SHALL NOT BE ACCEPTED.

Submissions received after the time and date stipulated above shall not be accepted. The

submissions will be opened soon after in the Director General’s Conference Room in the

presence of Applicants or their representatives who choose to attend.

Patrick Mutimushi

DIRECTOR GENERAL

ZAMBIA INFORMATION AND COMMUNICATIONS TECHNOLOGY AUTHORITY

Request for proposals for Network and Service Licences with associated resources


SECTION 2: Definitions

2.1 Definitions

(a) “Applicable Law” means the Laws of Zambia and any

other instruments having the force of law in Zambia as they

may be issued and in force from time to time.

(b) “Applicant” means anyone who has purchased this

document and intends to submit a proposal.

(c) “Day” means a calendar day.

(d) “ECT” Act means the Electronic and Communication

Transactions Act

(e) “Experts” means, collectively, Key Experts, Non-Key

Experts, or any other personnel of the Applicant.

(f) “Government” means the government of the Republic of

Zambia.

(g) “Key Expert(s)” means an individual professional whose

skills, qualifications, knowledge and experience are critical

to the performance in meeting the investment targets and

quality of service parameters and whose CV is taken into

account in the technical evaluation of the Applicant’s

proposal.

(h) “ICT” means Information and communication technology

which relates the application of modern communications

and computing technologies to the creation, management

and use of information through the utilisation of hardware,

software, networks, and media for the collection, storage,

processing, transmission and presentation of information

and related services;

(i) “ICT Act” means the Information and Communications

Technology Act.

(j) “International Segment” means a segment where the

licensee is authorised to offer to the international market

services from one or more of the market segments namely

national, provincial and district.

(k) “Investment Proposal” refers to both the technical and

financial proposals to be submitted by the applicant

(l) “ISO” means the International Standards Organisation.



(m) “ITA” (see Section 3 of the RFP) mean the Instructions to

Applicants that provides the shortlisted firms with all

information needed to prepare their Proposals.

(n) “LOI” (see Section 1 of the RFP) means the Letter of

Invitation being sent by the Authority to the shortlisted

Applicants.

(o) “Network Licence” for the purpose of this document shall

mean a network licence under the international market

segment as defined in the licencing guidelines.

(p) “Non-Key Expert(s)” means an individual professional

provided by the Applicant and who is assigned to perform

the Services or any part thereof under the Licence

Guidelines and whose Curriculum Vitae (CVs) are not

evaluated individually.

(q) “Proposal” means the Investment Proposal of the

Applicant.

(r) “RFP” means the Request for Proposals to be prepared by

the Authority for the selection of the Licensee.

(s) “Service Licence” shall for the purposes of this document

means a service licence category A under the national

market segment as defined in the Licencing Guidelines.

(t) “TORs” means the Terms of Reference that explain the

objectives, scope of work, activities, and tasks to be

performed, respective responsibilities of the Authority and

the Licensee, and expected results and deliverables.

(u) “ZICTA” means the Zambia Information and

Communications Technology Authority. Also referred to

as the “Authority”.



2.2 Table of Contents

Schedule of Clauses ........................................................................................................ 1

SECTION 1 Letter of Invitation ............................................................................................ 2

SECTION 2: Definitions ....................................................................................................... 5

2.1 Definitions ................................................................................................................ 5

2.2 Table of Contents ...................................................................................................... 7

2.3 List of Tables .......................................................................................................... 10

SECTION 3 Instructions to Applicants ................................................................................ 11

3.1 Introduction ............................................................................................................ 11

3.1.1 The Authority ................................................................................................. 11

3.1.2 Background .................................................................................................... 12 3.1.3 Promotion of ICT Investment in Zambia ....................................................... 12

3.2. Licence and Resource Description .......................................................................... 14

3.2.1 Licence Scope ................................................................................................. 14

3.2.3 Licence Considerations ................................................................................... 14 3.2.4 Environmental Considerations ........................................................................ 14

3.2.5 Permitting Procedures and Requirements ........................................................ 14

3.3. Request for Proposal Documents ............................................................................. 15

3.3.1 Introduction .................................................................................................... 15 3.3.2 Quality of Service Undertaking by the Applicant ............................................ 15

3.3.3 Application Forms .......................................................................................... 15 3.3.3.1 Network Licence ................................................................................ 15

3.3.3.2 Service Licence.................................................................................. 15 3.3.3.3 Numbering Resources ........................................................................ 15

3.3.3.4 Spectrum Resources .......................................................................... 15 3.3.4 Fees ................................................................................................................ 15

3.3.4 .1 Network Licence fee ....................................................................... 16 3.3.4.2 Service Licence fee ............................................................................ 16

3.3.4.3 Numbering Resources ....................................................................... 16 3.3.4.4 Spectrum fees .................................................................................... 16

3.3.5 Purchase for the RFP Document ..................................................................... 16

3.4. Procedures ............................................................................................................. 16

3.4.1 Introduction .................................................................................................... 16 3.4.2 Requests for Clarifications .............................................................................. 16

3.4.3 Pre-Proposal Meeting ..................................................................................... 18 3.4.4 Pre-Proposal Site Visit .................................................................................... 18

3.4.5 Amendments of the RFP ................................................................................. 18 3.4.6 Applicants ...................................................................................................... 18

3.4.7 Proposals ........................................................................................................ 19 3.4.7.1 Proposals to be Prepared in Compliance with RFP ............................. 19

3.4.7.2 Making of Proposals .......................................................................... 19 3.4.7.3 Amending or Withdrawing Proposals Prior to Closing Date ............... 19

3.4.7.4 Cost and Risk in Preparation of Proposals .......................................... 19 3.4.7.5 Exceptions to the Request for Proposals ............................................. 20

3.4.7.6 Applicant’s Acknowledgement .......................................................... 20



3.4.8 Preparation of the Investment Proposal............................................................ 20 3.4.8.1 Investment Plans and Other Details..................................................... 21

3.4.8.1.1 Technical Capability (Weight 60%) .......................................................... 21 3.4.8.1.2 Business Plan (Weight 40%) ................................................................... 21

3.4.8.2 Environmental Implications ............................................................... 21 3.4.8.3 Domestic Participation ....................................................................... 22

3.4.8.4 Other Documents ............................................................................... 22 3.4.9 Investment Proposal .....................................Error! Bookmark not defined.

3.4.9.1 Investment Cost ............................................................................... 22 3.4.9.2 Financing Plan ................................................................................... 22

3.4.10 Security Requirements .................................................................................. 22 3.4.11 Format, Sealing and Marking ................................................................... 23

3.4.12 Validity of the Proposal ........................................................................... 24 3.4.13 Closing Date and Late Proposals .............................................................. 24

3.4.14 Proposal Opening..................................................................................... 24 3.4.14.1 Investment Proposals ....................................................................... 25

3.4.15 Confidentiality ......................................................................................... 25

3.5. Evaluation Criteria ................................................................................................. 25

3.5.1 Outline of Evaluation Procedure ..................................................................... 25 3.5.1.1 Quality Based Selection ..................................................................... 25

3.5.2 Right to Reject Proposals ................................................................................ 26 3.5.3 Responsiveness .............................................................................................. 26

3.5.4 Evaluation of the Investment Proposals ........................................................... 26 3.5.4.1 Technical Capability (weight 60%) .................................................... 27

3.5.4.2 Business Plan (weight 40%) ............................................................. 27 3.5.6 Notification .................................................................................................... 27

3.5.7 Licence Issuance ............................................................................................ 27 3.5.8 Cost and Risk in Issuing a Licence.................................................................. 28

SECTION 4 Investment Proposal – Standard Forms ........................................................... 29

4.1 Investment Proposal Submission Form .................................................................... 29

4.2 Curriculum Vitae Format for Top Management ....................................................... 31

SECTION 5 Licence Details and Requirements .................................................................. 34

5.1 Network Licence Terms and Conditions .................................................................. 34

5.1.1. Commencement and Duration of Licence ...................................................... 34

5.1.2 Renewal of the Licence .................................................................................. 34 5.1.3. Frequency Allocation .................................................................................... 34

5.1.4. Non-Interference with Existing Systems .................................................. 34 5.1.5. Technical Standards....................................................................................... 34

5.1.6. Network Modification ................................................................................... 35 5.1.7. Network Performance .................................................................................... 35

5.1.7.1 Complaint System .............................................................................. 35 5.1.7.2 Confidentiality ................................................................................... 35

5.1.7.3 Indemnity .......................................................................................... 36 5.1.8 Safety Measures ............................................................................................. 37

5.1.9 Universal Service Obligation .......................................................................... 37 5.1.10 General Quality of Service .......................................................................... 37

5.1.11 Compliance with the Law ............................................................................. 37 5.1.12 Compliance with Regulatory Requirements .................................................. 37

5.1.13 Events Initiating Investigations by the Authority ...................................... 37 5.1.14 Sanctions ................................................................................................. 38



5.1.15 Dispute Resolution ....................................................................................... 39

5.2. Service Licence Terms and Conditions ................................................................... 40

5.2.1. Commencement and Duration of Licence ...................................................... 40 5.2.2. Renewal of the Licence ................................................................................. 40

5.2.3. Provision of Services ..................................................................................... 40 5.2.4. Ownership and Corporate Obligation ............................................................. 40

5.2.5. Indemnity ...................................................................................................... 41 5.2.6. Safety Measures ............................................................................................ 41

5.2.7. Universal Service Obligation ......................................................................... 41 5.2.8. Quality of Service .......................................................................................... 41

5.2.9. Complaint System ......................................................................................... 41 5.2.10. Confidentiality of Consumer Information .................................................... 42

5.2.11. Service Quality and Obligations .................................................................. 42 5.2.12. Compliance with the Law ............................................................................ 42

5.2.13. Compliance with Regulatory Requirements ................................................. 42 5.2.14. Events Initiating Investigations by the Authority.......................................... 42

5.2.15. Sanctions ..................................................................................................... 43 5.2.16. Dispute Resolution ...................................................................................... 43

5.3 Standard Terms and Conditions for Radio Licences ................................................ 45

5.3.1. Licence Duration and renewal ....................................................................... 45

5.3.2 Licence Revocation ........................................................................................ 45 5.3.3. Withdraw of Radio Licence ........................................................................... 45

5.3.4 Frequencies .................................................................................................... 45 5.3.5. Licence Fee ................................................................................................... 45

5.3.6. Licence Expiry .............................................................................................. 45 5.3.7 Licence Not Transferable................................................................................ 45

5.3.8. Operation of Radio station ............................................................................. 45 5.3.9. Interference ................................................................................................... 45

5.3.10. Use of Frequencies ...................................................................................... 46 5.3.12. Exclusivity .................................................................................................. 46

5.3.13. Approval for Erection of Stations ................................................................ 46 5.3.14. Sharing of Frequencies ................................................................................ 46

5.3.15. Inspection .................................................................................................... 46 5.3.16. Special conditions ........................................................................................ 46

SECTION 6 Licensing Guidelines 2017.............................................................................. 48

SECTION 7 Policy on Corruption and Fraud ...................................................................... 76

SECTION 8 Application Forms .......................................................................................... 78

8.1 Application Form for a Network Licence ................................................................ 78

8.2 Application Form for a Service Licence ............................................................... 86

8.3 Application Form for Radio Spectrum Licence ........................................................ 91

8.4 Numbering Application Form.................................................................................107

SECTION 9 Technical and Financial Requirements .......................................................... 117

9.1. Purpose .................................................................................................................117

9.2 Background ............................................................................................................117

9.3 Resources on offer .................................................................................................119

9.4 Eligibility criteria ...................................................................................................120



9.5 Financial Requirements ..........................................................................................120

9.5.1 Market penetration ........................................................................................120

9.6 Human Resource Plan ............................................................................................121

9.7 Technical Requirements .........................................................................................122

9.7.1 Core Network ................................................................................................122 9.7.2 Transmission Network ...................................................................................123

9.7.3 Access Network.............................................................................................123 9.7.4 Coverage .......................................................................................................123

9.7.5 Spectrum Management ..................................................................................123 9.7.6 Interconnection and Numbers. .......................................................................124

9.7.8 Interoperability ..............................................................................................124 9.7.9 Technical Experience ....................................................................................124

9.7.10 Mobile Virtual Network Operator (MVNO). ................................................124 9.7.11 Quality of Service-Voice over IP (VoIP) .....................................................125

9.7.12 Information Security Management System ..................................................125 SECTION 10 Schedule of Fees ........................................................................................ 126

10.1 Schedule 1: Network and Service Licence Fees ....................................................126

10.2 Schedule 2: Numbering Fees ................................................................................126

10.3 Schedule 3: Spectrum Licence Fees ......................................................................127

2.3 List of Tables

Table 3 Network Licence Categories ________________________________________________________________ 53

Table 4 Service Licence Category A _________________________________________________________________ 54

Table 5 Service Licence Category B _________________________________________________________________ 55

Table 6 Coverage Field Strength ___________________________________________________________________ 63

Table 7 Key Numbering Resource Standards __________________________________________________________ 64

Table 8 Spectrum Assignment Classification __________________________________________________________ 71

Table 9 Numbering Fees -Guidelines ________________________________________________________________ 74

Table 10 Network and Service Licence Fees __________________________________________________________ 126

Table 11 Numbering Fees _______________________________________________________________________ 127

Table 12 Spectrum Licence Fees___________________________________________________________________ 128



SECTION 3 Instructions to Applicants

3.1 Introduction

The Authority is an autonomous body established under the Information and Communication

Technologies Act No. 15 of 2009 to regulate both the ICT, as well as the postal and courier sectors

in Zambia.

This invitation for the application for International Network and National Service Licences with

associated resources has been issued by the Authority with a view to enhance access to Information

and Communications Technologies (ICTs) and further to develop the Telecommunication/ICT

sector in Zambia. The call for proposals has been necessitated by heightened demand for scarce

resources needed to provide services under the international market segment as well as a desire by

the Authority to promote investment and enhance effective competition in the sector.

3.1.1 The Authority

The ICT Act gives the Authority the mandate to:

a) regulate the provision of electronic communication services and products;

b) monitor the performance of the sector;

c) monitor the levels of investment; and

d) monitor the availability, quality, cost and standards of the electronic communication

services.

In particular, the functions of the Authority are to:

a) implement and administer the licensing and assignment schemes provided for under the

Act, including setting standards for the sector;

b) promote and facilitate the provision, in urban and rural areas, of such information and

communication services that meets all reasonable demand including; in particular,

emergency services, directory information services and maritime services;

c) disseminate information and promote the participation of the public in the provision of

electronic communication services;

d) promote the interests of consumers, purchasers and other users of information and

electronic communications services, including, in particular, persons with disabilities

and the aged in respect of the accessibility, quality and variety of the services and

equipment;



e) promote competition among persons engaged in commercial activities relating to, or in

connection with, the provision of information and communication and efficiency and

economy on the part of persons so engaged;

f) promote research, development and the use of new and appropriate technologies in the

sector and promote the manufacturing and production of relevant apparatus;

g) attract local and foreign investment in information and communication technology and

promote the provision of international transit services;

h) administer the country code top level domain and electronic addresses;

i) provide the national frequency and numbering plans and facilitate the efficient use and

allocation of numbers and frequency

j) approve the sites at which all transmitting stations, other than aircraft stations, mobile

stations or ship stations, are to be established and at which all radio station apparatus

used in connection with the transmitting station is to be erected;

k) allocate the frequency on which all radio transmitting stations and apparatus shall

operate; and

l) approve the mode of transmission to be adopted in connection with all transmitting

stations and the power to be radiated therefrom; the classes, types and standards of

transmitting stations and the radio station apparatus to be used in connection with

different classes of radio communication services; and the classes, types and standards

of receiving stations and radio and other apparatus to be used in connection with

diffusion services.

The ICT Act empowers the Authority to administer, manage and assign radio frequency spectrum.

3.1.2 Background

Zambia has recorded notable progress in access to ICT products and services over the last decade.

Specifically, the number of active mobile phone subscribers increased from 2.6 million in 2007 to

12.4 million in 2017. This represents an improvement in penetration rates from 22.5 percent to 75.8

percent between 2007 and 2017. Access to Internet services in the country increased to 5.9 million

users reported at the end of June, 2017 reflecting an internet penetration rate of 36.1 percent.

However, over 98 percent of internet access is through mobile devices, which is consistent with the

global trend of mobile internet services driving increased internet penetration.

3.1.3 Promotion of ICT Investment in Zambia

The Authority is responsible for the regulation of the electronic communication services and

products, and monitoring of the performance of the sector, including the levels of investment and

the availability, quality, cost and standards of the electronic communication services in Zambia.



The Authority is also responsible for managing the country’s numbering and frequency spectrum

resources.

The Authority has been mandated by the ICT Act to facilitate investment in the ICT sector. The

primary objective is to encourage private sector investment in ICT in order to increase access to

ICT services as part of wider Government effort in creating an information society.

The means of achieving private sector investment in ICT in an efficient and cost effective manner is

to facilitate issuance of a network licence that would enhance provision of mobile services that are

affordable, low cost and meet the quality of service guidelines in accordance with ISO standards.

The process of licence issuance therefore will be based on transparent rules designed to maximize

fairness and competition and on standard model documents that minimize transaction and

development costs. The model documents will be designed to ensure “bankability” of the

investment project.

Overall, the goal is to encourage investors to accept reasonable risks that they are well able to

manage in terms of efficient financing and establishment of a network.



3.2. Licence and Resource Description

3.2.1 Licence Scope

The licences to be issued are:

3.2.1.1 Network Licence under the international market segment that authorizes the licensee to

install and commission gateway facilities such as earth station, VSAT/Hub, switching centres, nodes

and servers, among others.

3.2.1.2 Service Licence Category A under the national market segment that authorizes the licensee

to provide to the public voice, message, Internet services, Internet Telephony (VoIP), pay phone,

Value Added Services, Data services, Tracking services among others.

3.2.2 Spectrum and Numbering Resources

The resources on offer are the following:

a. National Destination Code (NDC) - 098;

b. Mobile Network Code (MNC) - 645 - 04;

c. SIM Header 89 260 04;

d. Short Codes for common and emergency services as declared by the Authority;







o 5GHz;

o Lower 6GHz;

o 11GHz; and

o 18GHz;

3.2.3 Licence Considerations

The Authority shall assess the requirements stipulated in the Application Forms, Licensing

Guidelines of 2017 together with the Investment Proposal and other details to be provided.

3.2.4 Environmental Considerations

The Applicant is required, within the scope of undertaking investment, to assess all the

environmental impacts. The successful Applicant shall prepare an initial environmental impact

assessment (EIA) study in accordance with the applicable legislation.

3.2.5 Permitting Procedures and Requirements

The successful Applicant will be responsible for investigating the need for and obtaining all

necessary consents, permits, licences and approvals for design, construction, operation and

maintenance of the network in meeting all appropriate legislation and regulations.



3.3. Request for Proposal Documents

3.3.1 Introduction

Applicants should study the documentation in detail when formulating their proposals. No

significant variation of these drafts may be proposed by Applicants in making their proposals,

although Applicants may propose exceptions and changes which do not have any substantial

effect, including the justification that such changes do not have a substantial effect. The

modification will be rejected if it has a substantial effect. The Authority will analyze any

modification presented by the Applicant and its justification, and analyze whether or not, such

changes have a substantial effect.

3.3.2 Quality of Service Undertaking by the Applicant

The Quality of Service (QoS) undertaking by the Applicant shall be part of the licence conditions. The

successful Applicant shall be required to adhere to the QoS standards as prescribed in the Authority’s QoS

guidelines. The Authority reserves the right to suspend and/or withdraw a licence or take any other

appropriate measures for failing to adhere to the QoS undertaking.

3.3.3 Application Forms

In addition to submitting a detailed Investment Proposal as prescribed in section 3.4.8 of this RFP,

all applicants shall be required to fill in and submit application forms contained in section 8 of this

document.

3.3.3.1 Network Licence

The applicants shall fill in and submit the application form for the Network Licence as contained in

section 8 of the Licensing Guidelines.

3.3.3.2 Service Licence

The applicants shall fill in and submit the application form for the Service Licence as contained in

section 8 of the Licensing Guidelines.

3.3.3.3 Numbering Resources

The applicants shall fill in and submit the application form for Numbering Resources.

3.3.3.4 Spectrum Resources

The applicants shall fill in and submit the application form for Spectrum Licence.

3.3.4 Fees

The successful applicant shall be required to pay the requisite processing, licence and registration

fees.



3.3.4 .1 Network Licence fee

The successful applicant shall be required to pay a network licence fee as provided in section 10 of

the RFP Document. The current fee stands at three million, two hundred and fifty-five thousand

Kwacha (K3, 255,000.00).

3.3.4.2 Service Licence fee

The successful applicant shall be required to pay a service licence fee as provided in section 10 of

the RFP Document. The current fee stands at three hundred thousand Kwacha (K300, 000.00).

3.3.4.3 Numbering Resources

The successful applicant shall be required to pay numbering resource fees as provided for in the

Licensing Regulations.

3.3.4.4 Spectrum fees

The successful applicant shall be required to pay spectrum fees as provided in the Licensing

Regulations.

3.3.5 Purchase for the RFP Document

All applicants are required to pay a non-refundable fee of One Million Kwacha (K1, 000, 000.00)

or equivalent in United States Dollars (USD), for the participation.

3.4. Procedures

3.4.1 Introduction

The Authority shall ensure that the successful applicant complies with its investment proposal,

environmental laws, licence conditions and other considerations.

3.4.2 Requests for Clarifications

All communication in relation to this RFP shall be in the English language. Applicants are

encouraged to ask for clarification of information in the RFP, by submission of written clarification

requests to:

Director General

Zambia Information and Communications Technology Authority,

Head Office

Stand Number 4909 Corner of Independence Avenue & United Nations Road

P. O. Box 36871

Lusaka, Zambia.

Tel: +260-21-1-246696

Email: [email protected]

The Authority will reply to such requests for clarification by an Additional Notification within

five (05) business days from the date of their receipt. Additional Notifications shall be




submitted to all applicants without mentioning the source of the request. Requests for

clarification must be received no later than twenty one [21] days prior to the closing date, and

no additional notification shall be made with respect to requests received later.



3.4.3 Pre-Proposal Meeting

The Authority shall hold a pre-proposal meeting with all applicants on the fourteenth (14th) day

following the first publication of the invitation starting at 10:00 hrs local time. The meeting shall take

place in the Board Room at ZICTA Head Office. The pre-proposal meeting is not mandatory but will

provide an open platform for clarifications on any aspects of the RFP.

3.4.4 Pre-Proposal Site Visit

Pre-proposal site visit is not applicable under this RFP. However, Applicants are expected to make

themselves familiar with the legal and other environmental factors which are critical in the

preparation of the Investment Proposal and the application forms.

3.4.5 Amendments of the RFP

The Authority reserves the right to amend, revise or modify this RFP. Any amendments,

revisions or modifications, of this RFP shall be made through the issuance of addenda and a copy

of each addendum shall be sent to all applicants on the same date by same means. The RFP and

the related documents may be so amended, revised, or modified by way of such addenda up to

fourteen (14) days before the Closing Date.

If any addendum is of a nature which may require substantial changes in the proposals, the Closing

Date will be extended by the number of days considered reasonable by the Authority.

3.4.6 Applicants

Applicants who wish to submit an Investment Proposal shall do so as a single corporation or

consortium. The proposal shall state the proposed arrangements for the financing, design,

procurement, construction, commissioning, operation and maintenance in respect of the network

under the international segment. Further, in the proposal, the applicant or each Applicant making

such proposal, must show that it has the technical capability, experience and expertise (directly, in

combination or through proposed contractors) to finance, design, procure, construct, commission,

operate and maintain the network. The proposal shall contain details of the arrangements that are

capable of satisfying the Authority that the member(s) and/or proposed contractors have the

technical capability for the operation and maintenance of the network for at least fifteen (15) years.

Applicants shall also be required to meet the following criteria:

a. No Applicant or its parent/affiliate companies shall have been suspended or black

listed, whether as an individual company or as a member of a joint venture.

b. No Applicant or its parent/affiliate companies shall have a poor record of

unsatisfactory past performance, particularly non-compliance with licence terms,

standards and regulations, nor any record of poor quality of service, abandonment of

investment projects or similar deficiencies.

c. No Applicant or its parent/affiliate companies shall have inordinate overdue



debts toward the insurance, tax or customs authorities of Zambia or their country

of incorporation.

d. No Applicant or its parent/affiliate companies shall have a record of criminal or

civil cases in court pending or finally decided against them involving non-payment

of tax, duty or other undertaking with the Authority or any of its sub-divisions, or

instrumentalities including government-owned or controlled corporations, both

local and foreign.

3.4.7 Proposals

3.4.7.1 Proposals to be Prepared in Compliance with RFP

All Proposals made by the Applicants must be submitted in strict compliance with this RFP or

shall be disqualified.

3.4.7.2 Making of Proposals

Proposals shall be prepared in the English language. Applicants shall submit one (1) original

and four (4) copies of the Investment Proposal.

In the case of the Proposal where there is any discrepancy between the original and a copy, the

original shall prevail.

The Standard Forms contained in the Proposal required under this RFP shall be complete and

without modification other than inclusion of dates, references to addenda, signatories and

addresses. Such Forms shall be duly signed. No erasures, interlineations or alterations are

permitted other than those necessary to correct errors made by the Applicant and provided that

hand written erasures, interlineations or alterations are kept to a minimum they may be hand

written in black ink. Each erasure or change shall be dated and initialed by the Proposal

signatories. Any interlineation or alteration which is not dated and initialed by the person(s)

signing the Proposal or is not legible will not be taken into consideration. Appendices to the

proposal forms included by the Applicant shall be clearly divided and identified and each page

initialed by the person(s) signing the Proposal.

3.4.7.3 Amending or Withdrawing Proposals Prior to Closing Date

At any time prior to the Closing Date, an Applicant may amend its Proposal. If an Applicant

wishes to amend a Proposal it has submitted it shall submit to the Authority a new Proposal

prior to the Closing Date incorporating such amendment(s). On receipt of the new Proposal,

the Authority shall return to the Applicant its prior unopened Proposal, if the Applicant so

requests in writing. At any time prior to the Closing Date the Applicant may request in writing

that its unopened Proposal be withdrawn, and provided such request is received prior to the

Closing Date such Proposal (including Application Forms), shall be returned to the Applicant.

3.4.7.4 Cost and Risk in Preparation of Proposals

Applicants shall bear all costs incurred by them associated with the preparation and submission



of their Proposal and the Authority will in no case be responsible or liable for those costs,

including but not limited to those of professional advisors. Neither the Authority nor any

representative of these parties shall have any liability whatsoever to any Applicant in respect of

any decision taken by the Applicant in relation to its proposal whether or not in reliance on any

matter supplied by the Authority or any of their representatives.

3.4.7.5 Exceptions to the Request for Proposals

Exceptions to or changes from the conditions given in the RFP are not encouraged. However, if

there are any exceptions or changes proposed by the Applicant which do not have a substantial

effect, such exceptions may be included in the Proposal. Any exceptions or changes proposed by

the Applicant which are not clearly stated and justified or which have a substantial effect on the

network and service licences shall not be taken as part of the Applicant’s proposal and the

Applicant may not rely on them.

3.4.7.6 Applicant’s Acknowledgement

The submission of a Proposal will be construed as acknowledgment by the Applicant that it has

satisfied itself as to the nature and purpose of the licence and the services to be provided, and

other matters which may affect the performance of the network.

The Applicant acknowledges by submitting a Proposal that it has carefully examined this RFP

and is fully familiar with the Licence Guidelines. The Applicant also acknowledges that it has

familiarized itself with the laws and regulations of Zambia including labour, environmental and

financial laws and that complying with these laws and regulations will not affect the deployment

of the network and the investment plan. The Applicant accepts that no verbal agreement or

conversation with any representative of the Authority shall affect or modify any of the terms or

obligations contained in the Licence Guidelines of 2017.

Applicants shall obtain or arrive at their own interpretations or conclusions from the information

contained within this RFP and the Licensing Guidelines of 2017, and the Authority shall have no

responsibility with regard to such interpretations or conclusions.

The failure or omission of any Applicant to receive or examine any form or document, and

acquaint itself with conditions existing there shall in no way relieve it from any obligations with

regard to its proposal.

3.4.8 Preparation of the Investment Proposal

The Investment Proposal to be prepared and submitted by the Applicant must demonstrate a firm

knowledge of the network and service requirements and an understanding of the requisite tasks

to be carried out, as set out in the technical specifications. The Investment Proposal shall be

provided under cover of the investment proposal letter. Failure to provide this information in full

shall be a cause to reject the Proposal on grounds of non-conformity.

The Applicants are required to enclose the Investment Proposal in a sealed envelope, with



identification marks. In addition to any relevant information required elsewhere in this RFP, the

Investment Proposal should also include the following information:

a. Investment plans and other details;

b. Environmental implications; and

c. Domestic participation.

3.4.8.1 Investment Plans and Other Details

Applicants shall provide general technical information, with technical literature where available,

to enable the Authority to understand how the investment will be undertaken and how the network

under the licence to be issued will be maintained. The following information shall be provided as

part of the Investment Proposal:

3.4.8.1.1 Technical Capability (Weight 60%)

i. Specific Experience

ii. Coverage

iii. Nature of technology and adoption

iv. Network design

v. Quality of service and business continuity plans

vi. Spectrum utilization and requirements

vii. Information security management system.

3.4.8.1.2 Business Plan (Weight 40%)

i. Investment scope and depth

ii. Business model

iii. Competition Strategy

iv. Market penetration

v. Pricing strategy

vi. Service differentiation proposition

vii. Projected cash flows including the net present value (NPV), Internal Rate of Return

(IRR) and payback period

viii. Source of financing

ix. Audited Financial statements for a period of three years (2016, 2015 and 2014)

x. Service provisioning and support

xi. Human resource plan including qualification of top management staff supported by

signed curriculum vitae (supported by the Applicant’s employment policy).

3.4.8.2 Environmental Implications

A description is required of the potential environmental impact of the network and associated

equipment/facilities and the environmental protection measures to be applied. The successful

Applicant will be required to carry out an initial environmental examination/environmental

impact assessment and will be obliged to comply with the applicable environmental standards



during both construction and operation of the network.

Applicants shall provide full information in relation to the quantities and types of all liquid and

solid effluents including sewage that will be produced and give details of the methods to be

employed for neutralizing these effluents. The proposed methods for disposal of all, electronic,

liquid and solid wastes any fuel sludge/wastes should be clearly outlined in the Proposal.

Applicants shall provide all information related to quantities and rates of emissions of

pollutants, including the types of pollutants and details of the proposed methods of pollution

control and types of pollution control equipment and other mitigatory measures. Guaranteed

emission rates should also be provided.

3.4.8.3 Domestic Participation

Applicants are asked to provide information of the extent to which they plan to employ

local contractors during the construction and/or operational stages of the business.

3.4.8.4 Other Documents

Applicants are invited to submit any other documents which they consider important to

demonstrate their ability to efficiently meet the licence conditions and the Investment Proposal.

3.4.8.5 Investment Cost

The capital element is intended to cover the projected service and repayment of all investment

related debt and to provide a reasonable return on invested equity. Applicants should quantify

all the estimations.

Applicants shall include the total investment cost mentioned above for the purpose of

calculating cash flow statements.

3.4.8.6Financing Plan

Applicants shall provide a detailed Financing Plan for the investment. The Financing Plan should

clearly indicate the equity component and its break up to show the commitments by each of the

equity participants. Applicants shall also furnish details of the expected loan capital, giving full

details of the amount of loan each lending institution is prepared to commit their debt service

plans, the interest rates and details of other charges, if any, should be indicated clearly. The

Financing Plan should not only show the division between shareholder equity and debt at the date

of execution, but should also indicate its evolution during the project’s construction and

operational periods. The expected debt finance for the project should be committed only in

Zambian Kwacha or United States Dollars and at fixed interest rates.

3.4.9 Security Requirements



A Proposal Security is not applicable under this RFP.

3.4.10Format, Sealing and Marking

Where the Applicant is an incorporated joint venture, or project company, then the Proposal

shall be signed by each shareholder. Where the Applicant is an un-incorporated joint venture,

or other partnership arrangement, then the proposal shall be signed by each participant. In the

event of the Applicant being a joint venture or consortium, a joint venture agreement shall be

required. Proposals not executed by Chief Executive Officers, Legal Counsel or Directors shall

require Power of Attorney.

The Investment Proposal shall be delivered in a sealed package submitted to the following

address no later than the Closing Date of November 24, 2017 at 10:00 hours:

Zambia Information and Communications Technology Authority,

Head Office, Stand Number 4909

Corner of Independence Avenue & United Nations Road,

P. O. Box 36871

Lusaka

Zambia.

Tel: +260-21-1-246696

The tender box is situated at the Reception on the ground floor at the Head Office.

The package shall also be clearly labeled as a Proposal under this RFP giving the Applicant’s

name and address. Proposals received after the Closing Date will be rejected even if a delay

had been caused because of circumstances beyond the Applicant's control.

The package may be delivered by hand through an authorized representative, by registered mail

or by courier. However, hand delivery is strongly recommended. If the outer envelopes are not

sealed and marked as above, the Authority will assume no responsibility for misplacement or

premature opening of the Proposal. If the envelope is not sealed, marked and addressed as required

above, the Proposal may be rejected as non-conforming.

The Investment Proposal shall be enclosed in a sealed inner envelope bearing the following

identification:

Inner Envelope 1

INVESTMENT PROPOSAL FOR [NAME OF THE RFP]



PROPOSAL REFERENCE: ………………………..................................….............

APPLICANT’S FULL NAME AND DDRESS: ……………….……………………

…………................................................

One envelope shall contain one set of documents clearly marked "Original" on the first and

last page and three further envelopes shall each contain the copies of the Investment Proposal

clearly marked Copy on the first and last page. The name and address of the Applicant on the

inner envelope will allow the return of the Proposal unopened, in the event of revision or

withdrawal (prior to the Closing Date), or late delivery.

Original: One (1)

Copies: Four (4)

3.4.11 Validity of the Proposal

Each Proposal shall constitute a firm offer and that shall remain in force and be valid for a period

of ninety (90) days following the Closing Date of the invitation. During this period the proposal

shall remain valid and no Applicant shall withdraw its Proposal.

In the event that the notification of award is not issued during this period, the Authority may

approach each Applicant in writing prior to the expiration date, requesting an extension of the

Proposal validity period. If any Applicant does not agree to such extension, it may advise the

Authority of its decision in writing prior to the expiration of the original period, and withdraw its

Proposal.

If the notice of withdrawal is not received by the Authority prior to the expiration date of the

original validity period following the issuance by the Authority of a notice of extension, the

extension shall be considered to have been accepted by the Applicant and the Applicant shall extend

the effective period of the Proposal accordingly or be disqualified.

3.4.12 Closing Date and Late Proposals

Proposals must be received by Authority at the address given in paragraph 3.4.10 by 10:00hrs

local time on November 24, 2017. Proposals received after this time shall not be considered

whatever the reason for delay in submission (including circumstances outside the control of the

Applicants), and shall be rejected.

3.4.13 Proposal Opening



3.4.13.1 Investment Proposals

All Investment Proposals shall be opened at the offices of the Authority immediately following

the Closing Date. Applicants who wish to attend the opening may do so. Applicants’ names, any

withdrawals, and such other details as Authority may consider appropriate, will be announced by

the Authority on the day of opening of the Investment Proposals.

The Authority will prepare Minutes of the opening of the Investment Proposals including all

information disclosed to those present.

3.4.14 Confidentiality

The Authority reserves the right to release information contained in the Proposals to Ministry

of Transport and Communications, the Public Private Partnership Unit, Ministry of Finance,

Ministry of National Planning, Ministry of Justice and their agents, consultants and advisers for

purposes of verifying and evaluating the Proposals. The Authority, its agents, consultants or

advisers shall not be liable for any damages resulting from any disclosure of information before,

during or after the selection process.

3.5. Evaluation Criteria

3.5.1 Outline of Evaluation Procedure

The actual evaluation process is a staged process. The first stage of the evaluation process

concentrates on the preliminary aspects of the Proposal. The second stage of the evaluation process

focuses on the technical aspects of the Proposal, to verify whether the investment proposal is

capable of delivering the licensing conditions and other requirements contained herein.

The Authority shall evaluate the technical proposals on the basis of their responsiveness, applying

the evaluation criteria, sub criteria, and point system specified in the RFP. Each responsive

proposal will be given a technical score. An Investment proposal shall be rejected at this stage if

it does not respond to the important aspects of the RFP or of it fails to achieve the minimum

technical score of 75 points.

3.5.1.1 Quality Based Selection

Following the ranking of the Investment Proposals, when the selection is based on quality only

(QBS), the top-ranked Applicant shall be issued with a Notification of Award. The weights given

to the Investment Proposals are:

Technical Capability = 60%; and

Business Plan = 40%

Proposals shall be ranked according to their combined Technical (𝑇𝑠) and Business (𝐵𝑠) scores using

the weights (T = the weight given to the Technical Capability; B = the weight given to the Business

Plan; T + B = 1) as follows Combined score (𝐶𝑠):



𝑪𝒔=𝑻𝒔 × 𝑻 +𝑩𝒔 ×𝑩.

3.5.2 Right to Reject Proposals

The Authority reserves the right to reject the Proposal of any Applicant who has qualified on

the basis of fraudulent, suppressed or incomplete information.

3.5.3 Responsiveness

At the first stage of evaluation of the Proposals, the Authority will determine the compliance of

each proposal to the RFP. The Authority will examine the Proposals to determine whether they

are complete, whether the documents have been properly signed, whether all annexes as required

in the RFP are furnished and whether the Proposals are generally in order. A Proposal may be

disqualified and excluded from further consideration for any valid reason including but not

limited to, the reasons listed below:

a. Receipt by the Authority of a Proposal after the Closing Date.

b. Failure to submit any clarification or documents requested by the Authority within the

required time frame.

c. Failure to provide complete information as requested in this RFP.

d. Willful misrepresentations in the Proposal.

e. Illegal conduct or attempts to influence the Authority or any Ministry or agency of the

Government of Zambia in evaluation of a Proposal outside the solicitation process.

f. Determination by the Authority that the Applicant is likely to be unable to fulfill the

terms or conditions of the Proposals.

Proposals which are accepted by the Authority in accordance with these principles will be deemed

as qualifying for the second stage of the evaluation. If a Proposal is found to be substantially not

responsive, it will be rejected, and may not subsequently be made responsive by correction or

withdrawal of the non-conforming deviation or reservation.

3.5.4 Evaluation of the Investment Proposals

The detailed evaluation will then be conducted on the basis of satisfactory responses to the

information requirements set out in the RFP, including compliance with the Licensing Guidelines

of 2017. The evaluation will be based on the information provided in the Proposal. Non-

compliance with any one of the above criteria will disqualify the Applicant.



The criteria, sub-criteria and point system for the evaluation of the Full Investment

Proposals is as follows:

3.5.4.1 Technical Capability (weight 60%)

i. Specific Experience 10

ii. Network deployment plans 1 30

iii. Nature of technology and adoption 10

iv. Network design 10

v. Quality of service and business continuity plans 15

vi. Spectrum utilization and requirements 20

vii. Information security management system 5

viii. Total 100

3.5.4.2 Business Plan (weight 40%)

i. Investment scope and depth 20

ii. Operational and Competition Strategy 20

iii. Market penetration strategy 10

iv. Pricing strategy 15

v. Service differentiation proposition 5

vi. Projected cash flows 5

vii. Source of financing 5

viii. Audited Financial statements for a period of three years

(2016, 2015 and 2014) 5

ix. Service provisioning and support 10

x. Human resource plan including qualification of top

management staff supported by signed curriculum vitae

(supported by the Applicant’s employment policy) 5

xi. Total 100

The minimum score required to pass is: 75 and shall be arrived at using

the formula in Clause 3.5.1.1

3.5.6 Notification

Prior to the expiration of the period of proposal validity, the Authority shall notify the successful

Applicant, in writing, that its Investment Proposal has been accepted. However, the notification

of award shall not constitute a licence.

Upon the successful Applicant paying applicable fees, the Authority will promptly notify each

unsuccessful Applicant.

3.5.7 Licence Issuance

Within sixty (60) days of receipt of the applicable fees, the successful Applicant shall be issued with

a licence.

1 Priority to licence scarce resources with actual or likely demand as designated by the Authority, shall be given to

applicants with roll out plans that commence network deployment in areas deemed by the Authority to be underserved

and/ or rural



3.5.8 Cost and Risk in Issuing a Licence

The successful Applicant shall bear all costs incurred by it in relation to any negotiation and

finalization of the licence issuance, including but not limited to those of professional advisers.

Neither the Authority nor any representative of these parties shall have any liability whatsoever

to the Applicant for any decision taken by the Applicant in relation to decisions taken by it in

finalizing and issuing a Licence, whether or not in reliance on any matter supplied or represented

by the Authority or their representatives.



SECTION 4 Investment Proposal – Standard Forms

All pages of the original Investment Proposal shall be initialled by the same authorized

representative of the Applicant who signs the Proposal. The signatory to the Proposal shall

be supported by the Power of Attorney issued by a Legal Practitioner.

4.1 Investment Proposal Submission Form

{Location, Date}

To: [Name and address of Client]

Dear Sirs:

We, the undersigned, offer to design, mobilise and establish a service network in

accordance with the Authority Licence Guidelines of 2017, your Request for Proposals dated

[Insert Date] and our Proposal. We are hereby submitting our Investment Proposal.

We undertake to invest a total of (Insert Amount in Kwacha or USD) within the first three

years and a total of (Insert Amount in Kwacha and USD) in fifteen years of being issued an

International Network and National Service Licences with associated resources.

We hereby declare that:

(a) All the information and statements made in this Proposal are true and we accept

that any misinterpretation or misrepresentation contained in this Proposal may

lead to our disqualification by the Authority.

(b) Our Proposal shall be valid and remain binding upon us for the period of ninety

(90) days.

(d) We confirm our understanding of our obligation to abide by the Government’s

policy in regard to corrupt and fraudulent practices.

(e) Our Proposal is binding upon us and, in the event that we are successful, portions

of it as determined by the Authority shall form part of the Licence conditions.

We undertake, if our Proposal is accepted and the licence is issued, to initiate the

investment within the time frames as shall be agreed.

We understand that the Authority is not bound to accept any Proposal that the Authority

receives.



We remain,

Yours sincerely,

Authorized Signature {In full and initials}:

Name and Title of Signatory:

Name of company:

In the capacity of:

Address:

Contact information (phone and e-mail):



4.2 Curriculum Vitae Format for Top Management

Position Title and No. {e.g., K-1, TEAM LEADER}

Name of Expert: {Insert full name}

Date of Birth: {day/month/year}

Country of

Citizenship/Residence

Education: {List college/university or other specialized education, giving names of educational

institutions, dates attended, degree(s)/diploma(s) obtained}

________________________________________________________________________

________________________________________________________________________

Employment record relevant to the assignment: {Starting with present position, list in reverse

order. Please provide dates, name of employing organization, titles of positions held, types of

activities performed and location of the assignment, and contact information of previous clients

and employing organization(s) who can be contacted for references. Past employment that is not

relevant does not need to be included.}

Period Employing organization and

your title/position. Contact

Infor for references

Country Summary of

activities performed

relevant to the

Assignment

[e.g., May

2005-

present]

[e.g., Chief Operating Officer

For references: Tel…………/e-

mail……;

Membership in Professional Associations and Publications:



______________________________________________________________________

Language Skills (indicate only languages in which you can work): ______________

______________________________________________________________________

Adequacy for the Position:

Detailed Tasks Assigned on Consultant’s

Team of Experts:

Reference to Prior Work/Assignments that

Best Illustrates Capability to Handle the

Assigned Tasks

{List all deliverables/tasks as in which the

Expert will be involved)

Expert ’s contact information: (e-mail …………………., phone……………)

Certification:

I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly describes

myself, my qualifications, and my experience, and I am available to undertake the assignment in

case of an award. I understand that any misstatement or misrepresentation described herein may

lead to this CV not being considered.

{Day/month/year}

Name of Expert Signature

Date

{Day/month/year}

Name of authorized Signature



Date

Representative of the Applicant

(the same who signs the Proposal)

NOTE: STATEMENT OF EXCLUSIVITY AND AVAILABILITY SIGNED BY THE

PROPOSED KEY STAFF MUST BE SUBMITTED TOGETHER WITH THE

INVESTMENT PROPOSAL



SECTION 5 Licence Details and Requirements

5.1 Network Licence Terms and Conditions

5.1.1. Commencement and Duration of Licence

This Licence shall come into effect on the date it is issued and shall remain valid for a

period to be stated in the issued licence.

5.1.2 Renewal of the Licence

i. The Licence may be renewed upon the licensee’s written notice to the Authority

which notice shall be submitted not less than three (03) months prior to expiration

of the term of this licence.

ii. The Authority may consider a request for renewal made of out of time, subject to

conditions set out by the Authority, in situations where the Authority is of the

opinion that the request merits an extension.

iii. The Authority shall renew the licence in accordance with the Information and

Communication Technologies Act No. 15 of 2009 (the “ICT Act”) on the same

terms and conditions as those applicable to the licensee during the preceding

licence period provided that the licensee has not been in material breach of the

licence conditions.

iv. The licence shall terminate upon expiry of the licence period if it is not renewed.

5.1.3. Frequency Allocation

The licensee shall operate the electronic communications network, or provide a network

service within the designated frequency bandwidth which shall be assigned to the

licensee by the Authority. The Licensee shall use ONLY spectrum specifically allocated

to it by the Authority. The spectrum licence is valid for one(1) year and may be renewed

subject to the provisions of the law.

5.1.4. Non-Interference with Existing Systems

The Licensee shall ensure that the electronic communications Network does not

interfere with other electronic communications Networks & Broadcasting systems

existing in Zambia or officially planned in writing and recorded with the appropriate

Authority at the time of execution of this licence. As to all systems existing at the

time of the execution of the LICENCE, the Licensee shall, in good faith, make its best

effort to resolve radio interference issues with the Authority.

5.1.5. Technical Standards



i. The Licensee shall comply with all technical standards set by the Authority from

time to time and shall submit to the Authority its plans for numbering, signaling

transmission, switching and synchronization for the written approval of the

Authority. The applicant shall comply with Type Approval Guidelines as

applicable from time to time.

ii. The Licensee shall make the electronic communications network available to the

general public in its service area without discrimination among members of the

general public who wish to subscribe thereto.

iii. The Licensee shall enter into a service level agreement with all of its network

users and subscribers without discrimination. The terms and conditions of the said

service level agreement shall abide by the minimum standards established in the

Code of Conduct published by the Authority,

iv. The Licensee shall ensure that it meets the minimum terms and conditions of any

service level agreement that it may enter into with any network user or subscriber.

5.1.6. Network Modification

i. The Licensee shall obtain approval in writing from the Authority to make any

substantive change to the Network.

ii. Any change petitioned for and approved by the Authority shall be done at the

Licensee’s expense and shall not interfere with any other communications

systems existing or formally planned in writing in Zambia.

5.1.7. Network Performance

5.1.7.1 Complaint System

The licensee shall establish an efficient and easy to use system to receive process

and respond to complaints or claims, by network users or subscribers, related to

the network, or any other item relating to the rights exercised by the licensee

pursuant to this licence, as well as a programme for repair of the network. The

system shall be presented to the Authority for recording. The system shall

include, without limitation, a proposal for announcement. Publication of the

system is to be done at the expense of the Licensee.

5.1.7.2 Confidentiality

i. The Licensee shall protect the confidentiality of information transmitted

over its network. Such protection shall include without limitation, written



notice to all employees of the Licensee concerning their obligation not to

listen to communications except for repair or other limited technological

reasons set forth in the Laws of Zambia and to keep confidential all

information heard or received by the Licensee, its employees or agents

and to keep confidential any information it receives related to the network

and to ensure that only employees of the Licensee with the need to know

such information have access to it.

ii. No such information may be revealed to third parties by the Licensee, its

employees or agents without prior consent of the network user or

subscriber.

iii. Release of any such information shall be subject to the extent provided

for in the laws of Zambia at any particular time as the case may be.

iv. In the case of consent of the network user or subscriber, the consent shall

specify the particular information to be released, to whom, when and

under what circumstances except where the law provides otherwise.

5.1.7.3 Indemnity

i. The Licensee shall assume full responsibility for any and all liability

which may arise from the operation of the network or provision of

network services.

ii. The Licensee shall both indemnify and keep the Authority indemnified

against all claims at any time on account of intellectual property rights or

royalties, whether for manufacture or for use in Zambia.

iii. The Licensee shall further keep the Authority indemnified against any

claim arising out of or incidental to the provision of the network or

network service.

iv. In the event of any claim being made against the Authority in respect of

which the Licensee is liable under this clause, the Licensee shall promptly

be notified thereof and shall have the right at its own expense to conduct

any negotiation for settlement or litigation arising there from.



5.1.8 Safety Measures

The Licensee shall in respect of services operated, maintained or offered under this

licence take proper and adequate safety measures to safeguard life or property, including

exposure to any electrical emissions or radiations emanating from equipment or

installations from such operations.

5.1.9 Universal Service Obligation

The Licensee shall comply with the Universal Service/Access obligations as may be

provided for under the ICT Act and any regulations issued thereunder or any Guidelines

and rules issued by the Authority.

5.1.10 General Quality of Service

The Licensee shall comply with and abide by the minimum requirements set out under

the ICT Act or any other law, or guidelines published by the Authority or any

international standard to which the licence requires adherence.

5.1.11 Compliance with the Law

The Licensee shall comply with the provisions of the Information and Communication

Technologies Act No. 15 of 2009 (the “ICT Act”) and other laws of the Republic of

Zambia.

5.1.12 Compliance with Regulatory Requirements

The Licensee shall comply with the provisions of the regulations, rules and guidelines

issued under the ICT Act.

5.1.13 Events Initiating Investigations by the Authority

The Authority shall, in accordance with the Laws of Zambia, commence an investigation

concerning the Licensee’s performance when any of the following events occurs:-

i. Failure to comply with any of the performance obligations set forth in the

Licence.

ii. Failure to comply with the technical standards set by the Authority or network

performance standards.

iii. When five per centum or more of the network users express in writing that the

network or network service does not conform to quality and performance

standards required of the Licence.

iv. When the Licensee knowingly or negligently violates the confidentiality and

secrecy provisions of the Licence.

v. When the Licensee modifies frequencies which have been assigned to it by the

Authority or uses frequencies not authorized.



vi. When the Licensee uses, installs or connects equipment which has not been type

approved by the Authority or appropriate type approving bodies

vii. When Licensee provides any electronic communications services without being

authorized to do so by the Authority.

viii. When Licensee fails to remit payment to all other Network or network service

operators for interconnection in accordance with their Interconnection

Agreement.

ix. When the Licensee fails to provide information to the Authority as required by

the Laws of Zambia, and when the Licensee fails to permit or impedes inspections

by the Authority or any legally constituted search as permitted by the Laws of

Zambia.

x. When Licensee fails to maintain proper accounting systems for its network or

network service, and when Licensee fails to maintain separate clear records or

accounts for its sales in a transparent manner.

xi. When Licensee by itself or otherwise, inadvertently, violates the Laws of Zambia

as they exist or come into existence from time to time.

xii. When Licensee contracts or installs infrastructure not authorized by the Licence,

or when the Licensee uses infrastructure not permitted by the Licence to be used

xiii. When any other violation of the terms of the Licence or the Laws of Zambia is

brought to the attention of the Authority.

5.1.14 Sanctions

In the event that the Authority determines after an investigation, and pursuant to the

procedures of due process established for the administrative and investigative processes

of the Authority as they exist under the Laws of Zambia from time to time, that an

infraction has been committed by the Licensee, or that the Licence has been breached by

the Licensee, in addition to remedies existing in the laws and regulations of Zambia and

in accordance with the severity of the infraction, the Authority may impose one or more

of the following sanctions:-

i. Obligation of public apology by the Licensee, at the cost of the Licensee, for its

infraction in a newspaper of general circulation in the area of service to run for five

(5) consecutive days.

ii. Payment of a fine and/or compensation prescribed by the Laws of Zambia to the

Authority, or to other injured parties for injury caused by the Licence as they flow to

the Licensee.

iii. In the event of serious infraction, revocation or cancellation and temporary

suspension of the Licence and or other sanction as may be authorized by the Law in

the public interest.



iv. Any other sanction as may be appropriate in accordance with the Laws and

Regulations for the time being in force in Zambia.

5.1.15 Dispute Resolution

i. The Authority and the Licensee shall make every effort to resolve amicably by direct

negotiations any disputes, differences or questions arising out of or relating to the

Licence other than those matters or things about which the decision of the Authority

is deemed to be or shall be final.

ii. In the event that the mode of resolution envisaged above is not possible for any

reason, all disputes, differences or questions between the Authority and the Licensee

with respect to any matter or thing arising out of or relating to the Licence, other than

a matter or thing as to which the decision of the Authority is to be or deemed to be

final and conclusive and except and in so far as may otherwise be provided in the

Licence, shall be referred to arbitration in accordance with the provisions of the

Arbitration Act Statutory Instrument No. 19 of 2000 of the Laws of Zambia or any

statutory modification thereof for the time being in force.

iii. Arbitration shall take place in Lusaka, Zambia.



5.2. Service Licence Terms and Conditions

5.2.1. Commencement and Duration of Licence

This Licence shall come into effect on the date it is issued and shall remain valid for a licence

period to be stated in the issued licence.

5.2.2. Renewal of the Licence

i. The Licence may be renewed upon the licensee’s written notice to the Authority which notice

shall be submitted not less than three (03) months prior to expiration of the term of this licence.

ii. The Authority may consider a request for renewal made of out of time, subject to conditions

set out by the Authority, in situations where the Authority is of the opinion that the request merits

an extension.

iii. The Authority shall renew the licence in accordance with the Information and

Communication Technologies Act No. 15 of 2009 (the “ICT Act”) on substantially the same

terms and conditions as those applicable to the licensee during the preceding licence period

provided that the licensee has not been in material breach of the licence conditions.

iv. The licence shall terminate upon expiry of the licence period if it is not renewed.

5.2.3. Provision of Services

i. The Licensee shall provide services in accordance with applicable National and

International standards.

ii. The licensee shall commence provision of services within a period of six (6) months from

the effective date of the licence.

iii. The Licensee shall not be required to provide services where in the Authority’s view it is

not reasonable to require the Licensee to provide the services, including, but not limited

to the following circumstances:-

a) where it is beyond the Licensee’s control;

b) where it would expose any person engaged in provision of the services to undue risk to

health or safety; or

c) Where it is not reasonably practicable.

5.2.4. Ownership and Corporate Obligation

The Licensee shall comply with the following conditions on ownership;

i. To furnish the Authority with a copy of their shareholding structure as required by the

Licensing regulations.

ii. To notify the Authority in writing of any changes to its ownership and control structure.



iii. To notify the Authority of any joint venture into which it enters with any other person or

entity holding a licence issued by the Authority.

5.2.5. Indemnity

i. The Licensee shall assume full responsibility for any and all liability which may arise

from the operation of the network or provision of network services.

ii. The Licensee shall both indemnify and keep the Authority indemnified against all claims

at any time on account of intellectual property rights or royalties, whether for

manufacture or for use in Zambia.

iii. The Licensee shall further keep the Authority indemnified against any claim arising out

of or incidental to the provision of the network or network service.

iv. In the event of any claim being made against the Authority in respect of which the

Licensee is liable under this clause, the Licensee shall promptly be notified thereof and

shall have the right at its own expense to conduct any negotiation for settlement or

litigation arising there from.

5.2.6. Safety Measures

The Licensee shall in respect of services operated, maintained or offered under this licence take

proper and adequate safety measures to safeguard life or property, including exposure to any

electrical emissions or radiations emanating from equipment or installation from such operations.

5.2.7. Universal Service Obligation

The Licensee shall comply with the Universal Service/Access obligations as may be provided

for under the ICT Act and any regulations issued thereunder or any Guidelines and rules issued

by the Authority.

5.2.8. Quality of Service

The licensee shall comply with and abide by the minimum requirements set out under the ICT

Act or any other law, or guidelines published by the Authority or any international standard to

which the licence requires adherence.

5.2.9. Complaint System

The licensee shall establish an efficient and easy to use system to receive, process and respond

to complaints or claims by network users or subscribers related to the network, or any other item

relating to the rights exercised by the licensee pursuant to this licence, as well as a programme

for repair of the network. The system shall be presented to the Authority for recording. The

system shall include, without limitation, a proposal for announcement. Publication of the system

is to be done at the expense of the Licensee.



5.2.10. Confidentiality of Consumer Information

The Licensee shall not disclose any information about any of its consumers to any third party

except to the extent that such information is by Law required including but not limited to the

following reasons:-

i. for the purposes of debt collection by the Licensee from the consumer

concerned;

ii. for statistical or research purpose provided the information is in such a way that it does

not link to a particular consumer;

iii. by the Licensee’s auditors for the purpose of auditing the Licensee’s accounts;

iv. by the Licensee’s attorney(s) in connection with any potential, threatened or actual

litigation between the Licensee and the consumer concerned;

v. by the Authority for the purpose of performing its functions under the ICT Act;

vi. by an order of the court in respect of legal proceedings between the consumer and another

party pending in court.

5.2.11. Service Quality and Obligations

i. The Licensee shall make the provision of its electronic communications Service available

to the general public in its service area without discrimination among subscribers or

among members of the general public who wish to subscribe thereto.

ii. The Licensee shall enter into a service level agreement with all of its network users and

subscribers without discrimination. The terms and conditions of the said service level

agreement shall abide by the minimum standards established in the Code of Conduct

published by the Authority.

iii. The Licensee shall ensure that it meets the minimum terms and conditions of any service

level agreement that it may enter into with any network consumer.

5.2.12. Compliance with the Law

The Licensee shall comply with the provisions of the Information and Communication

Technologies Act No. 15 of 2009 (the “ICT Act”) and other laws of the Republic of Zambia.

5.2.13. Compliance with Regulatory Requirements

The Licensee shall comply with the provisions of the regulations, rules and guidelines issued

under the ICT Act.

5.2.14. Events Initiating Investigations by the Authority

The Authority shall, in accordance with the Laws of Zambia, commence an investigation

concerning the Licensee’s performance when any of the following events occurs:-

i. When five per centum or more of the Licensee’s consumers express in writing that the

service does not conform to quality and performance standards required of the Licensee.



ii. When the Licensee knowingly or negligently violates the confidentiality and secrecy

provisions of the Licence.

iii. When the Licensee provides any electronic communications services without being

authorised to do so by the Authority.

iv. When the Licensee fails to provide information to the Authority as required by the Laws

of Zambia and when the Licensee fails to permit or impedes inspections by the Authority

or any legally constituted search as permitted by the Laws of Zambia.

v. When Licensee fails to maintain proper accounting systems for it service (s), and when

Licensee fails to maintain separate clear records or accounts for its sales in a transparent

manner.

vi. When Licensee by itself or otherwise, inadvertently, violates the Laws of Zambia as they

exist or come into existence from time to time.

vii. When any other violation of the terms of the Licence or the Laws of Zambia is brought

to the attention of the Authority.

5.2.15. Sanctions

In the event that the Authority determines after an investigation, and pursuant to the procedures

of due process established for the administrative and investigative processes of the Authority as

they exist in the Laws of Zambia from time to time, that an infraction has been committed by the

Licensee, or that the Licence has been breached by the Licensee, in addition to remedies existing

in the laws and regulations of Zambia and in accordance with the severity of the infraction, the

Authority may impose one or more of the following sanctions:-

i. Obligation of public apology by the Licensee, at the cost of the Licensee, for its infraction

in a newspaper of general circulation in the area of service to run for five (5) consecutive

days.

ii. Payment of a fine and/or compensation prescribed by the Laws of Zambia to the

Authority, or to other injured parties for injury caused by the Licence as they flow to the

Licensee.

iii. In the event of serious infraction, revocation or cancellation and temporary suspension

of the Licence and or other sanction as may be authorised by the Law in the public

interest.

iv. Any other sanction as may be appropriate in accordance with the Laws and Regulations

for the time being in force in Zambia.

5.2.16. Dispute Resolution

i. The Authority and the Licensee shall make every effort to resolve amicably by direct

informal negotiations any disputes, differences or questions arising out of or relating to

the Licence other than those matters or things about which the decision of the Authority

is deemed to be or shall be final.

ii. In the event that the mode of resolution envisaged above is not possible for any reason,

then all disputes, differences or questions between the Authority and the Licensee with

respect to any matter or thing arising out of or relating to the Licence, other than a matter



or thing as to which the decision of the Authority is to be or deemed to be final and

conclusive and except and in so far as may be otherwise provided in the Licence, shall

be referred to arbitration in accordance with the provisions of the Arbitration Act

Statutory Instrument No. 19 of 2000 of the Laws of Zambia or any statutory modification

thereof for the time being in force.

iii. Arbitration shall take place in Lusaka, Zambia.



5.3 Standard Terms and Conditions for Radio Licences

5.3.1. Licence Duration and renewal

The radio licence shall be valid for a period of twelve months from the date of issue. The

applicant shall apply for renewal at least thirty (30) days before date of expiry.

5.3.2 Licence Revocation

In accordance with the ICT Act, this radio licence may be revoked by the Authority should the

licensee cease to meet the provisions of any of these terms or conditions attached to the radio

licence, or cease to use the licensed equipment and/or spectrum for the purposes set out in the

radio licence.

5.3.3. Withdraw of Radio Licence

The licensee shall within six months from the date of issue of the licence commence operations

in default of which the licence shall lapse. The Authority may, subject to the provisions of the

Section 59, of the ICT Act, amend, suspend or withdraw the licence.

5.3.4 Frequencies

The licensee shall not operate any radio equipment that causes undue interference to other

existing radio services. The licensee shall provide services within the allocated frequency band.

5.3.5. Licence Fee

The licensee shall pay licence fees as provided for in the ICT Act and the regulations issued

there under.

5.3.6. Licence Expiry

The Licensee shall not use any of the frequencies allocated in the radio Licence upon expiry

of the Licence. Any use of the frequencies after expiry is illegal.

5.3.7 Licence Not Transferable

The Licensee shall not transfer, cede, pledge, assign or otherwise dispose of, or encumber a

Licence without the prior approval of the Authority.

5.3.8. Operation of Radio station

The Radio station shall be operated for the sole purpose of receiving and or transmitting

messages and shall only communicate with such stations as authorized by the Authority. The

mode, frequency, transmission power, location and Area of operation shall be as specified by

the Authority.

5.3.9. Interference



The Licensee shall take all reasonable steps to ensure that its station and equipment do not

interfere with the efficient operation of other licensed stations.

5.3.10. Use of Frequencies

The Licensee shall use the frequencies allocated or assigned to the licensee in a rational,

efficient and economic manner.

5.3.12. Exclusivity

The allocation or assignment of the frequency or frequencies shall not be construed as

conferring an exclusive right in respect of such frequency or frequencies.

5.3.13. Approval for Erection of Stations

The erection of radio station(s) shall -

(a) be subject to the approval of the Authority,

(b) be carried out in accordance with the Act and relevant Regulations and

(c) be subject to such further restrictions and conditions as other Laws currently in force in

Zambia may impose.

5.3.14. Sharing of Frequencies

The Authority may require the licensee to share a frequency with another licensee, on

such terms and conditions as may be specified by the Authority.

5.3.15. Inspection

In order to ensure compliance with the provisions of this ACT and the terms and conditions

of any Licence or assignment, the Authority shall carryout inspections and may

appoint such Telecommunications Officers as may be necessary for that purpose.

5.3.16. Special conditions

Subject to the provisions of the ICT Act, the Authority may impose conditions over and

above the conditions herein.





SECTION 6 Licensing Guidelines 2017

The Zambia Information and Communications Technology Authority (ZICTA) is

established in terms of section 4 of the Information and Communication Technologies Act

(ICT) No. 15 of 2009(the Act), Section 6 of the Act empowers ZICTA to regulate the

provision of electronic communication services and products and monitor the performance

of the sector, including the levels of investment and the availability, quality, cost and

standards of the electronic communication services.

Under Parts III, IV and VI of the Act the Authority is empowered to prescribe the manner

of application for electronic communication licences and assignment of scarce resources as

well as prescribing their standard terms and conditions. Under section 7 of the Act, the

Authority is empowered to make guidelines for the better carrying out of its mandate.

Pursuant to the mandate referred to above, the Authority issues these guidelines.

DEFINITIONS

In these guidelines unless the context otherwise requires any word or expressions has the

meaning assigned to it in the Act -

“Act” means the Information and Communication Technologies Act No. 15 of 2009; “Authority”

has the meaning assigned to it under the Act and

“Days” means Calendar days.



PART I

LICENSING OF ELECTRONIC COMMUNICATIONS UNDER

SECTION 10 OF THE ACT

1. CLASSIFICATION OF LICENCES

(1) The Authority shall issue licences in the following broad categories :

(a) Network Licence: This licence category allows the holder of the licence to construct,

own or make available an electronic communications network, or to provide a

network service; and

(b) Service Licence: this licence category allows the holder of the licence to provide one

or more electronic communications services.

(2) The Authority shall, in respect of each of the licences referred to in (1) issue the

following classes of licences:

(a) Individual licence

This is a network or service licence which the Authority has deemed to have significant

economic, and social impact based on scarce resources, coverage and policy

consideration among others. This licence attracts significant regulatory obligations.

(b) Class Licence

This is a type of licence the Authority has deemed not to have significant economic and

social impact.

2. MARKET SEGMENTS

(1) The following shall be the designated market segments:

a) International Market Segment – in this segment, the Licensee shall be

authorized to offer, to the international market, services from one or more of the four

market segments.



b) National Market Segment – in this segment, the licensee shall be

authorized to build a nationwide network or provide a nationwide service.

c) Provincial Market Segment – in this segment, the licensee shall be

authorized to build a network or to provide a service in a province.

d) District Market Segment – in this segment, the licensee shall be

authorized to build a network or provide a service in a district.

(2) A licensee who holds a licence in a higher market segment shall not hold a licence

in a lower Market segment in the same licence category.

(3) For the purposes of these guidelines, the Authority may determine the geographic

extent of the market segments.

3. SCOPE OF LICENCES

The following shall be the general scope of the licences:

(1) Network Licence – Facilities and/ or Services

(a) This licence authorizes ownership and control of electronic communications

facilities. This includes both the active and passive elements of a network.

Electronic communications facilities shall include but not be limited to the

following:

i. Wire ;

ii. Cable;

iii. Antenna ;

iv. Mast;

v. Space Station ;

vi. Lease Circuit ;

vii. Cable Landing Station;

viii. International Gateway;

ix. Earth Station ; and

x. Radio Apparatus

(b) The facilities in (a) above can be used in connection with electronic

communications, including where applicable:

i. Colocation space;

ii. Monitoring equipment ;

iii. Space on or within poles, ducts, cable trays, manholes, hand holds and conduits;

and


iv. Associated support systems, sub-systems and services, ancillary to such

electronic communications facilities or otherwise necessary for controlling

connectivity of the various electronic communications facilities for proper

functionality, control, integration and utilization of such electronic

communications facilities.

(c) For purposes of this provision, facilities means an electronic communications

facility or combination of electronic communications or other facilities that is

exclusively or predominantly provided by a single or limited number of licences and

cannot feasibly (whether economically, environmentally or technically) be

substituted or duplicated in order to provide the service.

(2) Service Licence

The Service Licence shall have two (2) categories namely category A and category

B. Category A licence holders shall be in possession of a network licence and shall

be able to provide services. Category B service licence holders shall not be in

possession of a network licence but shall be able to provide services.

4. LICENCE CATEGORIES

The Licence Categories are as shown in the table below-

Table 1: Network Licence- (Facilities and /or Services)

Market

Segment

Type of facility Application

Fee (Fee

Units)

Initial

Licence

fee(Fee

Units)

Annual

Operating

Fee(% of

GAT)

Duration

(Years)

Type of

Licence

International Gateway

facilities

such as Earth

Station,

VSAT/ Hub,

Switching

Centres,

Nodes and

Servers and

others.

55,556 10, 850,

000

1.5 15 Individual

National 55,556 4,000,000 1.5 10 Individual


Provincial Switching,

transmissions

and access

facilities such

as VSAT,

Microwave

links, Fixed

links,

Switching

Centres, Laid

cables; Fibre

Optic,

Exchange,

Nodes,

Servers,

Towers,

Ducts,

Transmitters

and Links

and other

27,778 555,560 1.5 5 Individual

District 5,556 277,780 1.5 5 Class

Table 1 Network Licence Categories

Table 2: Service Licence Category A: With Network Licence

Market

Segment

Type of

Service

Application

Fee( Fee

Units)

Initial

Licence

Fee (fee

Units)

Annual

Operating

Fee ( % of

GAT)

Duration

(Years)

Type of

Licence

National To provide to

the

public voice,

message,

Internet

services,

Internet

Telephony

(VoIP), pay

phone, Value

Added

55,556 1,000,000 3 10 Individual


Services, Data

services,

Tracking

services etc.

Provincial

To provide to

the

Public, voice,

message,

Internet

services,

Internet

Telephony

(VoIP), pay

phone, Value

Added

Services, Data

services,

Tracking

services etc.

5,556 555,560 3 5 Individual

District 277,780 3 5 Class

Table 2 Service Licence Category A

Table 3: Service Licence Category B: Without a Network Licence

Market

Segment

Type of

Service

Application

Fee

Initial

Licence

Fee

Annual

Operating

Fee(% of

GAT)

Duration

(Years)

Type of

Licence

National

To provide to

the

public voice,

message,

Internet

services,

Internet

Telephony

(VoIP), pay

phone, Value

Added

Services,

Data

27,778 1,250,000 3 3 Class

Provincial 694,450 3 3 Class

District 347,225 3 3 Class


services,

Tracking

services etc.

Table 3 Service Licence Category B

5. EXEMPTION OF SPECIFIC PERSONS AND ACTIVITIES

(1) Where the Authority exempts certain persons and activities from the necessity to be

licenced under the provisions of the Act, the Authority shall publish a list of such

persons or activities.

(2) An assignment shall not be required for any activities published by the Authority as

exempt.

(3) A person who intends to make use of those exempt activities in (1) shall register with

the Authority.

6. CLASS LICENCE APPLICATION PROCEDURE

The following procedure shall be used when applying for a class licence:

(1) The applicant shall obtain the prescribed application form at the Authority’s registered

office or online from the Authority’s website (www.zicta.zm).

(2) The applicant shall then submit a duly completed form in duplicate together with

payment of the prescribed application fee.

(3) For avoidance of doubt, the sixty (60) day statutory period within which the Authority

shall issue or reject the application shall only begin to run upon receipt of a duly

completed form and payment of the application fee and an official receipt being issued

by the Authority.

(4) In the event that the Authority requires further information from the applicant, the

Authority shall inform the applicant of the need to furnish that information in the

prescribed form.

(5) Where the applicant fails to provide the information requested within Fourteen (14) days

from the requested date or such other longer period as the Authority may consider

appropriate, the application shall be rejected by the Authority.

(6) The Authority shall, prior to issuance of a licence to an applicant, satisfy itself that the

applicant has the financial and technical capability to construct, own or make available

a network or provide the service associated with the licence.

http://www.zicta.zm/


(7) In the event that the Authority determines during consideration of an application, that

there has been misinformation relating to a material particular or that the applicant has

withheld material information, the Authority may reject the application.

(8) The Authority shall notify the applicant in writing, within Fourteen (14) days on the

outcome of the application. Where an application has been rejected, the Authority shall

inform the applicant of the rejection and the reasons thereof.

(9) Upon payment of the initial licence fee, the Authority shall issue an electronic

communications network or service Licence containing the applicable terms and

conditions related to the network to be established or service to be provided.

(10) The licensee shall within One Hundred and Eighty (180) days from the date of issue of

the licence commence operations in default of which the licence shall lapse.

(11) A licence may be renewed upon the licensee’s written notice to the Authority, which

notice shall be submitted at least Ninety (90) Days prior to the expiration of the licence.

(12) Where a Licensee applies for renewal of a licence, the Authority shall, subject to

provisions of the Act - including those relating to the requirement for the licensee not to

have been in breach of any relevant law, the licence conditions or guidelines issued by

the Authority - renew the Licence . The Authority may, subject to provisions of the Act,

vary terms and conditions of a licence whether upon renewal or otherwise

(13) An applicant for a Network Licence shall submit a Comprehensive Business Plan with

the following minimum Requirements:

(a) Company information on shareholders, relevant company registration

documentation, list of directors, place of domicile and tax clearance;

(b) Technical Plan;

(c) Roll-out plan;

(d) Network diagrams and explanations;

(e) Target customers;

(f) Pricing for the products and services. The prices must be accompanied by the

pricing structure which indicates how the final prices have been arrived at;

(g) Financial projections including the projected Comprehensive Income Statement

and Statement of Financial Position for the next three years;

(h) Anticipated Capital expenditure;

(i) Value Proposition;

(j) Details of Management Team showing technical and business management

capability;

(k) Financial capability supported by legitimate proof of funding; and


(l) Indication of scarce resources that may be required from ZICTA.

(14) Licensing of scarce resources will be done in accordance with part II of these guidelines.

(15) An applicant for a Service Licence shall submit a comprehensive Business Plan with the

following minimum Requirements:

(a) Company information on shareholders, relevant company registration

documentation, list of directors, place of domicile and tax clearance;

(b) Type of services and applications to be offered with roll-out plan;

(c) Network to be used and proof of agreement with Network Facilities Provider;

(d) Target customers;

(e) Pricing for the products and services. The prices must be accompanied by the

pricing structure which indicates how the final prices have been arrived at;

(f) Financial projections including the projected Comprehensive Income Statement

and Statement of Financial Position for the next three years;

(g) Anticipated Capital expenditure;

(h) Value Proposition;

(i) Details of Management Team showing technical and business management

capability;

(j) Financial capability supported by legitimate proof of funding;

(k) Indication of scarce resources that may be required from ZICTA; and

(16) The business plan shall form part of the terms and conditions of the licence.

7. INDIVIDUAL LICENCE APPLICATION PROCEDURE

The Authority shall determine the application procedure depending, among other

considerations, on the availability of resources.

The application for an individual licence shall take the following forms:

(1) Unsolicited Application

(a) The Authority shall consider an unsolicited application where there is no actual

or likely demand for scarce resources as determined by the Authority or where

no scarce resources will be required.


(b) The application procedure for an unsolicited application shall be as contained in

clause 6 (1) - (12) of these Guidelines.

(c) The Authority shall within Sixty (60) days of receipt of an application, grant or

reject the application taking into consideration the technical and financial

capability and the availability of resources.

(2) Competitive process

(a) Where there is actual or likely demand for scarce resources as determined by the

Authority, an application may be determined by a competitive process as

provided for in these guidelines.

(b) The Authority shall invite the public to apply for licences as and when the

Authority deems appropriate to meet the regulatory objectives.

(3) Upgrading of licences

(a) An existing individual licensee intending to upgrade the market segment or

provide additional services shall apply to the Authority in the manner prescribed

in sub clauses 1 or 2.

(b) The applicant shall be subjected to the evaluation criteria in clause 8.

8. EVALUATION CRITERIA FOR INDIVIDUAL LICENCE AND RESOURCE

APPLICATIONS

(1) This criteria shall apply to-

(a) a licensee who intends to upgrade their licences from one market segment to another

and/or obtain additional resources;

(b) a licensee who intends to provide additional services and/or obtain additional

resources; or

(c) a prospective entrant into the ICT sector.


(2) This criterion is aimed at licensing of viable players and efficient allocation of optimal

resources which includes spectrum and numbers.

(3) Requirements for financial evaluation

The applicant shall submit the following information which relates to the Applicant:

(a) A bu s ine ss p r o f i le relating to responsibilities, capital structure and legal

establishment of the business. The level and nature of Zambian participation

must be clearly outlined by the applicant. The applicant must indicate the direct

and indirect shareholdings together with percentages of the ownership.

(b) History and experience of the applicant in the establishment and operation of

electronic communications networks and services including the size of the

network, number and type of clients and countries of o p e r a t io n . The

applicant shall provide information regarding any licences previously and

currently held relating to the provision of electronic communications

networks and services.

(c) Financial history including audit ed financial statements for the last three

years. The Financial statement must contain statement of financial position,

income statement and the cash flow statement. In case of a consortium, members

should submit the said financial history. The applicant shall also submit the

total investments in each country where it has been operating in the last three (3)

years.

(d) A description of potential sources of funding presented in form of a financial

plan with evidence supporting investment forecast. The applicant shall submit

the following as proof of source of investment :

i. Commitment letter from the Shareholders or consortium partner;

ii. Financial statements from the company providing funding, to

ensure that it is capable of fulfilling its commitments;

iii. Letters of intent from financial institutions in the event of a loan,


or from suppliers in the case of supplier credit; and

iv. Adequate working capital to offer the ICT services and

products.

An applicant shall submit the following information which relates to the market

penetration strategy:

(a) A description of the current and future (up to three (3) years) key market

characteristics reflecting the applicant’s view of the evolving Zambian ICT

mar ke t ;

(b) a marketing plan which shall demonstrate the applicant’s knowledge of the

current and future market needs and strategies for fulfilling its licence

obligations, stating the applicant’s forecast market share and how it intends to

acquire that market share in the next three (3) years;

(c) a detailed market analysis which shall include among other requirements-

i. Identified key market trends and a description of how the trends may

influence the operations of the applicants electronic communications

networks and services;

ii. The expected competition that the applicant is likely to bring to the market

and how it shall improve service delivery , prices of goods and services and

consumer experience in the ICT Sector;

iii. A detailed SWOT analysis of the market;

iv. A detailed demand analysis based on the applicants service and product

delivery;

v. Market Strategy to cover customer segmentation and product differentiation.

This should also elaborate on the distribution channels of the applicants

products and services taking into account Zambia’s geographical boundaries

with some areas characterized by poor road networks;

vi. Market share projections in relation to competitors over a period of five (5)

years;

vii. Description of a range of products and services to be offered to the public

including the associated price points or proposed tariff plans. The pricing

structure must be cost based, non-discriminatory and transparent in

accordance with tariff approval requirements under the Act;


viii. Commercial launch schedule of the products and services ;

ix. Revenue or sales projection by product and service over a period of five (5)

years;

x. Promotion strategy aimed at penetrating the market during the launch

phase; and

xi. Customer Care strategy including the establishment of call centres and other

mediums of customer information dissemination.

The applicant shall submit a detailed human resource plan highlighting the

following:

(a) Initial management team including consultants who may be incorporated to

assist in start-up;

(b) qualifications and experience of the management team or consultants;

(c) Organizational structure; and

(d) Personnel plan for the respective departments for five years indicating the

percentage .

The applicant shall submit the following information which relates to Financial

Projections:

(a) Evidence of financial capability to successfully accomplish the business

projections and fulfil the licence terms and conditions ;

(b) The information provided, together with assumptions, should cover a minimum

per io d o f five (5) years o f o per at io ns following the grant of the licence, and

shall include investment and expected return on investment. The level of investment

must commensurate with the licence being applied for in the following categories:

i. District Market segment: The level of investment must be able to

support growth in coverage at an incremental rate of at least 15% Per

year;

ii. Provincial Market segment : The level of investment must be able to

support growth in coverage at an incremental rate of at least 15% per

year;


iii. National Market Segment: The level of investment must be able to

cover the entire nation with growth in coverage at an incremental rate of

at least 15% per year; and

iv. International Market Segment: The level of investment must

commensurate with the ability to offer international services.

Additionally, the applicant is must ensure that it meets the coverage

obligations at the national level at an incremental rate of at least 15%;

(c) Investment appraisal indicating the Net Present Value of the expected cash

flows, the Internal Rate of Return (IRR) and the payback period;

(d) Detailed forecast statement of financial position which must indicate the

anticipated capital expenditure to be made in Zambia in the next five (5) years;

(e) Detailed forecast Income statements for at least five (5) years; and

(f) Forecasted cash flow statements for at least five (5) years.

(4) The Authority may select portions of information submitted by the applicant relating to

the financial evaluation to form part of the terms and conditions of the licence.

(5) Requirements for Technical Evaluation

The applicant shall submit the overall system architecture and configuration which shall

include the following:

(a) Core Network

The applicant shall provide the detailed core network architecture and all the elements

thereof. The applicant shall demonstrate that sufficient capacities reflecting the

subscriber projections are provided for together with the type of switching elements and

redundancy capabilities. The applicant shall state the Grade of Service to be achieved

in line with international best practice.

(b) Transmission Network

The applicant shall demonstrate that the backhaul transport links regardless of

transmission media and technology to be employed conform to the following

Carrier Grade minimum requirements:


i. the system must be capable of providing end-to-end operational,

administrative and management (OAM) facilities in compliance with the

Authority’s acceptable standards;

ii. Automatic Protection Switching (APS) mechanisms to provide sub-

50ms protection switching time; and

iii. Highly resilient transport network with route redundancy that achieves

network availability of at least 99.98%.

(c) Access Network

The applicant shall submit a Quality of Service plan that includes a methodology

of measurement of Quality of Experience. The adopted measurement

methodologies must be end-to-end methodologies, in compliance with the

Authority QOS guidelines.

(d) Coverage

An applicant shall submit details of its coverage plans in line with the minimum

technical requirements shown in the table below.

Technology (MHz) CS (kHz) SENS (dBm) FS (dBµV/m)

GSM 900 200 -104 30

GSM 1800 200 -104 36

UMTS 2100 5,000 -80 61

LTE 700/800 -80 53

LTE 1800–2000 5,000 -80 61

LTE 1800–2000 10,000 -77 64

LTE 1800–2000 20,000 -74 67

WiMAX* 5,000 -80 53

WiMAX* 10,000 -77 56

WiMAX* 20,000 -74 59

Table 4 Coverage Field Strength

(e) An applicant shall submit an equipment list to ensure compliance to the

standards set out in the type approval guidelines.

(f) Spectrum Management

An applicant shall demonstrate the ability to efficiently utilize the allocated

spectrum.

(g) Interconnection and Numbers

An applicant for an international individual network licence must demonstrate

the interconnection system capability. The applicant shall be allocated one or


more resources if any as per National Numbering Plan and as shown in the table

6 below:

No. Resource Condition

1 Rec ITU-T E.164: The

international public

telecommunication numbering

plan.

The numbers shall only be issued to applicants of

International Individual Network Licence for the

provision of voice services, and planning to

develop a Public Switched Telephone Network

(PSTN) and some other data networks.


international identification plan

for public land mobile networks

and subscriptions.


International Individual Network Licence as

appropriate

3 Rec ITU-T Q.708: Assignment

procedures for international

signalling point codes


International Individual Network Licence

Table 5 Key Numbering Resource Standards

An applicant requiring number resources for other licence categories shall apply

to the Authority which may assign the number resources in line with the

national numbering plan.

(h) Interoperability

An applicant shall demonstrate the ability of the proposed network facilities to

interconnect with other networks in all market segments. The network interface

shall comply with the Authority’s acceptable standards.

(i) Technical Experience

An applicant shall demonstrate the ability to provide electronic communications

networks and services and where applicable show proof of having provided

similar services. This information shall include the size of the network, the

subscriber base and the type of services provided.

(j) Mobile Virtual Network Operator (MVNO)

i. An MVNO shall demonstrate that the Mobile Network Operator (MNO)

hosting it has the ability to provide sufficient capacity in order to avert

congestion on its network as a result of leasing.

ii. The MVNO shall submit the MNO’S Quality of Service performance

records covering a period of two (2) years preceding the application.

iii. The MVNO shall provide written proof that the MNO is willing to enter

into a commercial capacity leasing agreement.


(k) Quality of Service-Voice over IP (VoIP)

i. An applicant shall demonstrate that the VOIP/VOLTE services it intends

to provide meet the minimum QOS standards as specified by the

Authority in the QOS guidelines.

ii. For VoIP and VoLTE to be regarded as a replacement or equivalent for

standard public switched telephone network (PSTN) telephony services,

subscribers are expected to receive the same quality of voice

transmission as they do with basic telephone services i.e. consistently

high-quality voice transmissions. Therefore, the applicant shall be

required to guarantee sustained bandwidth for the duration of the

VoIP/VoLTE call.

iii. The VoIP/VoLTE network should, therefore, be able to support

concurrent calls without buffering or jittering. The applicant shall be

expected to demonstrate availability of the bandwidth requirements that

the VOIP/VoLTE phone service requires to handle concurrent calls. The

Authority expects minimum sustained bandwidth speeds of 2Mbps up

and down for VoIP/VoLTE calls, as well as recommends speeds of 5-

10Mbps up and down for optimal performance.

iv. An applicant shall ensure that the network codec is designed as per ITU-

T G.729 standard so that packet loss is less than one percent (1%) to

avoid audible errors. It is the obligation of the applicant to ensure there

is no packet loss for VoIP/ VoLTE. The voice-over-internet conversation

must be continuous without drops or losses.

v. (e) An applicant shall adhere to the ITU G.114 specification (among

other standards) which recommends less than 150 millisecond (ms) one-

way end-to-end delay for high-quality real-time traffic such as voice.

(For international calls, one-way delay up to 300 ms is acceptable,

especially for satellite transmission).

(l) Information Security Management System

An applicant shall demonstrate how it shall secure its networks, applications and

customer data and must provide a detailed business continuity program to ensure

reliable services.

(6) The Authority may select portions of information submitted by the applicant relating to

the technical evaluation to form part of the terms and conditions of the licence.

PART II

ASSIGNMENT OF SCARCE RESOURCES UNDER PARTS IV AND VI OF THE ACT


9. SPECTRUM ASSIGNMENT

(1) This Part shall apply to Spectrum and Numbering resources.

(2) Where applicable, the assignment of scarce resources shall be issued at the

same time as an associated electronic communication licence under Part I of

these Guidelines.

(3) Priority to licence scarce resources with actual or likely demand as

designated by the Authority, shall be given to applicants with roll out plans

that commence network deployment in areas deemed by the Authority to be

underserved and/ or rural.

(4) SPECTRUM MARKET SEGMENTS

(a) District Licence- this licence authorizes the holder to use and offer

Radiocommunication services in a district;

(b) Provincial Licence - this licence authorizes the holder to use and offer

Radiocommunication services in a province; or

(c) National Licence- this licence authorizes the holder to use and offer

Radiocommunication services countrywide.

(5) Where there is high demand, spectrum shall be assigned through a

competitive process including where applicable, as prescribed in Clause 7,

of these guidelines.

(6) Where the demand for spectrum is low, spectrum shall be assigned subject

to the technical and financial evaluation on a first come first serve basis.

(7) The spectrum licence types and fees applicable are shown in the table below


CLASS ASSIGNMENT

SERVICE TYPE BAND CATEGORY FEE UNIT

Radio location - Per transmitter

(station)

278

Citizen Band 27MHz Per transmitter

(station)

166

Radio Model Licence - Per transmitter

(station)

222

Aeronautical

Commercial Licence

All

Aeronautical

bands

Per channel per

broadcasting

area

5,556

Aeronautical Non-

commercial Licence

All

Aeronautical

bands

Per channel per

broadcasting

area

2,778

Aircraft Licence All

Aeronautical

bands

Per aircraft

1,389

Amateur Licence All Amateur

bands

Per certificate 347

ISM

2.400 –

2.500GHz

5.725 –

5.875GHz.

And all other

ISM bands

Free – subject to approval

by the Authority

SADC HF Cross

Border

Cross-border

channels

Per licence 5,556

INDIVIDUAL ASSIGNMENTS

District Services

FM/SW/MW Sound

Broadcasting

87.5 – 108MHz Per transmitter

(station)

Lusaka, Copperbelt and

Livingstone broadcasting

areas: 16,667

Others: 5,556

TV Broadcasting -

Terrestrial

174 – 238MHz

246 – 254MHz

470 – 806MHz

Per transmitter

(station)

Lusaka, Copperbelt and

Livingstone broadcasting

areas33,333

Others: 13,889

Land Mobile bands 0.009 -30MHz Per channel per Standard HF


broadcasting

area

shared channel:

2,778 per channel.

Standard HF

exclusive channel:

5,556 per channel.

Special channels

(Emergency

channel, common

use channels):

Free.

Land Mobile bands 138 – 174MHz

230 – 235MHz

335.4 –

399MHz

406 – 430MHz

440 – 450MHz

Per channel per

broadcasting

area

Standard

(simplex) channel:

2,778 per channel

per broadcasting

area.

Special channels

(Emergency

channel, common

use farmers’

channels): Free.


Transmission links

Microwave link bands

Satellite

1.350 –

1.400GHz

5.925 –

8.500GHz

10.70 –

12.50GHz

12.75 –

13.25GHz

14.50 –

15.35GHz

17.30 –

19.70GHz

22.00 –

24.00GHz

All Satellite

bands

Per

transmitter

Per transmitter

2,778

Cross Border:

130,000

Domestic Urban:

13,889

Domestic rural:

5,556

Radio

Determination:

Free

Satellite based

devices: 1,389

Satellite News

Gathering: 1,389

Maritime bands All maritime

bands

Per channel per

broadcasting

area

Standard

(simplex) channel:

2,778 per channel

per broadcasting

area.

Special channels

(Emergency

channel, common

use maritime

channel): Free.

Commercial

(Community)

Repeater

- Per licence 13,889


Paging Commercial

Licence

- Per licence 55,556

Paging bands 138 – 174MHz

230 – 235MHz

335.4 –

399MHz

406 – 430MHz

440 – 450MHz

Per channel per

broadcasting

area

Standard

(simplex) channel:

2,778 per channel

per broadcasting

area.

Special channels

(e.g. Emergency

channel): Free.

Provincial Services

3.5GHz band 3400 –

3600MHz

Per 1Mhz per

province

13,889 PER MHz

5.4GHz band 5470 –

5720MHz

Per 1Mhz per

province

13,889 PER MHz

10.5GHz band

10.15-10.3

GHz//10.5-

10.65 GHz

Spectrum Fee

Formula (i.e.

Per 1MHz per

province)

13,889 PER MHz

National Services

Mobile licence initial

spectrum licence fee

1900-2200Mhz Per licence 12,000,000

GSM Bands 880 – 960MHz

1710 –

1880MHz

Per 200KHz 155,556

2.1GHz band

(3G Spectrum)

1900 –

2200MHz

Per 200KHz

155,556

2.3GHz band 2300 –

2400MHz

Per 1Mhz per

province

13,889

2.5GHz band 2500 –

2690MHz

Per 1Mhz per 13,889


province

3.3GHz band 3400 –

3600MHz

Per 1Mhz per

province

13,889

Table 6 Spectrum Assignment Classification (8) Unsolicited Radio Spectrum Assignment Application Procedure

(a) The following procedure shall be used when applying for assignments for class

and non-optimal radio frequency spectrum:

i. The applicant shall obtain the prescribed application form at the

Authority’s registered office or online from the Authority’s website

(www.zicta.zm).

ii. The applicant shall then submit a duly completed form in duplicate

together with payment of the prescribed application fee.

iii. For avoidance of doubt, the sixty (60) day statutory period within which

the Authority shall issue or reject the application shall only begin to run

upon receipt of a duly completed form and payment of the application

fee and an official receipt being issued by the Authority.

iv. In the event that the Authority requires further information from the

applicant, the Authority shall inform the applicant of the need to furnish

that information in the prescribed form.

v. Where the applicant fails to provide the information requested within

Fourteen (14) days from the requested date or such other longer period

as the Authority may consider appropriate, the application shall be

rejected by the Authority.

vi. The Authority shall, prior to issuance of a licence to an applicant, satisfy

itself that the applicant has the financial and technical capability to

construct, own or make available a network or provide the service

associated with the licence.

vii. In the event that the Authority determines during consideration of an

application, that there has been misinformation relating to a material

particular or that the applicant has withheld material information, the

Authority may reject the application.

viii. The Authority shall notify the applicant in writing, within Fourteen (14)

days on the outcome of the application. Where an application has been

rejected, the Authority shall inform the applicant of the rejection and the

reasons thereof.



ix. Upon payment of the initial licence fee, the Authority shall issue a radio

spectrum licence containing the frequency or frequency range and all

applicable conditions relating to the radio station to be established.

x. The licensee shall within One Hundred and Eighty (180) Days from the

date of issue of the licence commence operations in default of which the

licence shall lapse.

xi. A licence may be renewed upon the licensee’s written notice to the

Authority, which notice shall be submitted at least Thirty (30) days prior

to the expiration of the licence. The renewal procedure shall, subject to

necessary variations, be the same as that of a new application.

xii. The Authority shall, subject to provisions of the Act - including those

relating to the requirement for the licensee not to have been in breach of

any relevant law, the licence conditions or guidelines issued by the

Authority - renew the Licence. . The Authority may, subject to

provisions of the Act, vary terms and conditions of a licence whether

upon renewal or otherwise. .

xiii.

xiv. In order to ensure compliance with the provisions of the Act and the

terms and conditions of any licence or assignment, the Authority shall

carryout inspections and may appoint such telecommunications Officers

as may be necessary for that purpose.

(b) Competitive Radio spectrum assignment procedure

The Authority shall assign optimal spectrum as prescribed in clause 7 of these

guidelines.

(9) Consideration of Applications

In considering an application for a radio spectrum licence, the Authority may

take the following factors into account:

(a) The principles of good management of the radio spectrum as a natural

resource and as a public facility;

(b) Existing and possible future frequency allocations at national, Southern

African Development Community (SADC) and international level; and

(c) The nature of the service for which the radio spectrum is sought.

10. Allocation of Numbering Resources

(1) The Authority shall issue number resources in accordance with the National


Numbering Plan and Numbering Guidelines.

(2) Geographical numbers (ITU-T E.164), Mobile Network Codes (ITU-T

E.212) and International Signaling Point Codes (ITU-T Q.708) shall only be

issued to licensees offering services that require such resources.

(3) The number resource categories and their respective fees in fee units are

shown in the table below.


NUMBERING FEES

# CATEGORY FEE MODE

FEE

UNITS

1 Registration Fees

All other categories - 40,000

Carrier Pre-selection - 200,000

2 Annual Fees

Subscriber Number (C)* - 1

Annual Fee (FA) Annual Fee Formula -

Annual Return 223

3 Other Codes

Mobile Network Code (MNC) - 20,000

National Destination Code (NDC) - 20,000

International Signalling Point Codes (ISPCs) - 20,000

National Signalling Point Codes (SPCs) - 20,000

Network Colour Codes - 20,000

SIM Headers - 10,000

Special Service Numbers (Freephones, Premium) - 10,000

Carrier Selection Codes - 100,000

4 Short Codes

Three (3) digit - 100,000

Four (4) digit - 60,000

Table 7 Numbering Fees -Guidelines


11. General Provisions

(1) The Authority may issue special conditions, over and above the standard licence or

assignment terms and conditions. These special terms and conditions may or may not be

unique to a particular licensee.”

(2) Where a licensee or person to whom scarce resources have been assigned intends not to

renew the licence or assignment as the case may be, such licensee or person to whom scarce

resources have been assigned shall notify the Authority of that fact at least Ninety (90) days

prior to the expiration of the licence or assignment.

(2) Where a licensee decides not to continue with any undertaking to which the licence

relates, the licensee shall notify the Authority in writing and shall agree with the Authority

on the terms and conditions of the surrender of the licence, with particular reference to

anything done or any benefit obtained under the licence.

11. Licence migration

1. All the existing licences to be migrated to the new licensing framework shall remain in

force in accordance with the terms and conditions of such licences.

2. As soon as reasonably practicable, but not later than One Hundred and Eighty (180)

Days from the publication of the new Licensing Guidelines, the Authority shall issue

one or more licences and, where applicable, one or more assignments, to any person

who, at commencement of the said guidelines, holds a valid licence issued under the

repealed regulations.

3. The terms and conditions of any licence or assignment issued by the Authority shall-

a. Include, as appropriate and as determined by the Authority, provisions contained

in the Licensing Guidelines published by the Authority;

b. Be of the same duration as the unexpired residue of the previous licence;

c. Contain applicable fee payment obligations;

d. Not derogate from the allocations and rights to radio frequency or numbers

provided for in the previous licence.

4. At the date One Hundred and Eighty (180) Days from the commencement date of new

Licensing Guidelines, licences issued prior to the publication of the Licensing

Guidelines shall cease to be valid and enforceable and the licence holder shall not have

any right of compensation in this regard.


SECTION 7 Policy on Corruption and Fraud

It is the Government’s policy to require that all projects (including beneficiaries), applicants’,

and their agents (whether declared or not), observe the highest standard of ethics during the

selection and execution of the licensee. In pursuance of this policy, the Government:

(a) defines, for the purposes of this provision, the terms set forth below as follows:

(i) “corrupt practice” is the offering, giving, receiving, or soliciting, directly or indirectly,

of anything of value to influence improperly the actions of another party2;

(ii) “fraudulent practice” is any act or omission, including misrepresentation, that

knowingly or recklessly misleads, or attempts to mislead, a party to obtain financial

or other benefit or to avoid an obligation3;

(iii) “collusive practices” is an arrangement between two or more parties designed to

achieve an improper purpose, including to influence improperly the actions of another

party;

(iv) “coercive practices” is impairing or harming, or threatening to impair or harm, directly

or indirectly, any party or the property of the party to influence improperly the actions

of a party;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering, or concealing of evidence material

to the investigation or making false statements to investigators in order to

materially impede a Government investigation into allegations of a corrupt,

fraudulent, coercive, or collusive practice; and/or threatening, harassing, or

intimidating any party to prevent it from disclosing its knowledge of matters

relevant to the investigation or from pursuing the investigation, or

(bb) acts intended to materially impede the exercise of the Government’s inspection

and audit rights;

(b) will reject a proposal for award if it determines that the Applicant recommended for award

or any of its personnel, or its agents and/or their employees, has, directly or indirectly,

engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices in competing

2 For the purpose of this sub-paragraph, “another party” refers to a public official acting in relation to the selection

process or licence execution. In this context “public official” includes ZICTA staff and employees of other organizations taking or reviewing selection decisions.

3 For the purpose of this sub-paragraph, “party” refers to a public official; the terms “benefit” and “obligation”

relate to the selection process or licence execution; and the “act or omission” is intended to influence the selection

process or licence execution.


for the contract in question;


SECTION 8 Application Forms

8.1 Application Form for a Network Licence

APPLICATION FOR A NETWORK

LICENCE ( ) Individual or ( )

class licence (Tick as

appropriate)

Shaded fields for official use

only

Licence code:

Date/Time:

Information Required Information Provided Check

List (√) 1 Type of network ( )

2 a) Name(s) of

applicant(s)

b) Type of

Applicant

( )

Individual ( ) ( ) Partnership ( ) ( )

Individual ( )

Company ( )

Partnership ( )

3 a) Nationality ( )

b) Identity card

(National

Registration

Card No. or

Passport No.)

Attach

certified copies

( )

4 a) Notification

address

Telephone

: Fax :

E-mail Address:

b) Information of

contact person

authorized to

( ) ( ) ( )

( ) ( ) ( )


represent the

applicant

Tel :

Fax :

E-mail :

5 a) Company name

b) Company address:

c) Company

registratio

n No.

(attach

certified

copies of

certificate

of registration)

( )

d) Shareholders-

Shareholder Shares held Nationality NRC/Passpor

t

No.

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

e) Directors

f) Partners

Director Address Share held Nationality NRC/Passpor

t

No.

( ) ( ) ( ) ( )

Partner Address Share held Nationality NRC/Passpor

t

No.

( ) ( ) ( ) ( ) ( )

6 Previously held licences in

Zambia if any, by

applicant issued under

the Information and

Communication

Technologies Act, 2009

Licence (Type and Licence

No.)

Location a) a) ( )

b) b) ( )

c) c) ( )

d) d) ( )

e) e) ( )

f) f) ( )

7 Currently held licences in

Zambia, if any, by

applicant issued under

the Information

Licence (Type and Licence

No.)

Location a) a) ( )

b) b) ( )

c) c) ( )

d) d) ( )


and

communication


e) e) ( )


f) f) ( ) 8 Currently held licences in

Zambia, if any, by

subsidiary

companies

issued under the

Information and

Communication


Licence

(Type and Licence No.)

Location

a) a) ( ) b) b) ( ) c) c) ( ) d) d) ( ) e) e) ( ) f) f) ( )

9 Have you ever applied for a licence in Zambia?

If yes please give details below

Licence applied for Location Category of

business

Date of

application:

Status of

application

(granted,

rejected or

pending)*

( ) ( ) ( )

10

*If application was rejected give reasons for rejection Project details

a) Location Proposed launch date ( ) District ( )

b) Brief description: 11 Appendices*

Appendix No.1 Network design (including

spectrum

requirements, where applicable), roll-

out plan and implementation

schedule including network coverage

area and intended performance levels

( )

Appendix No.2 Technical Specifications for

interoperability and compatibility

of the network with other systems

including but not limited to those

owned and operated by other licensees

( )

Appendix No.3 Business plan for proposed

services

(should include information on

technical proposal of the services to be

provided, information on previous

experience, curricular vitae, in the

provision of the services and the

profile of the individual, company or

partnership, as the case may be

( )

Appendix No.4 Investment certificate issued by the

Zambia Development Agency,

where

applicable)

( )

Appendix No.5 Certified photocopies of work

permits

and other relevant permits issued by

the Immigration Department

( )


Appendix No. 6 Details of wholesale charges to be

made to other licensees or third parties

( )


(including termination and

interconnection charges))

Appendix No. 7 Evidence that the proposed network

shall provide availability of

emergency services where appropriate

( )

Appendix No. 8 Tax Payers Identification Number

(TPIN)

Appendix No. 9 Any other information which the

Authority may require

*The information required to be included in the various appendices

QUALITY OF SERVICE UNDERTAKING

I/we declare that the quality of service I/we provide shall meet the minimum requirements set out under the

Act or any other law or, guidelines published by the Authority or any international standard to which the

licence requires adherence.

DECLARATION

I/we declare that all the particulars and information provided in the this application are complete correct and

true and I/we agree that in the event that any of the said particulars and information provided is found to

be untrue or fraudulent, the licence will be revoked. I/we agree that in the event of the revocation of the

licence, any fee paid to the Authority for a licence shall be forfeited. I/we declare that in the event that

the nature of my/our business changes, or I/we no longer carry out operations in terms of the licence, I/we

will notify the Authority in which case my/our licence may be revoked or revised. Declared at

this .day of 20 by the following persons who are duly authorized to sign

for and on behalf of the applicant under the authority of the Power of Attorney or Board Resolution which

is hereby by attached.

Applicant’s name Date


Applicants Signature

FOR OFFICIAL USE ONLY

Received by:

Officer RECEIPT No.


Date Received: Amount Received:

Serial No. of application: _

STAMP


8.2 Application Form for a Service Licence

Form II

(Regulation 3)

(To be completed in triplicate)

ZAMBIA INFORMATION AND COMMUNICATION TECHNOLOGY AUTHORITY

The Information and Communication Technologies Act, 2009

(Act No. 15 of 2009)

The Information and Communication Technologies

(Electronic Communications)(Licensing) Regulations, 2010

APPLICATION FOR A SERVICE LICENCE

( ) Individual or ( ) class licence

(Tick as appropriate)

Shaded fields for official use only

Licence code:

Date/Time:

Information Required Information Provided Check List (√)

1 Type of network ( )

2

a) Name(s) of applicant(s)

( )

b) Type of Applicant: (Tick as appropriate)

Individual ( ) Company ( ) Partnership ( ) ( )

3

a) Nationality

b) Identity card (National

Registration Card No. or Passport No.) - Attach certified copies

( )

( )

4

a) Notification address

Telephone: Fax : E-mail Address:

b) Information of contact person authorised to represent the applicant

Telephone #:

( ) ( ) ( )

( )


Fax #: E-mail Address:

( ) ( )

5

a) Company name b) Company

address: c) Company

registration No. (Attach certified copies of certificate of registration)

( )

d) Shareholders-

Shareholder Shares held Nationality NRC/Passport No.

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

e) Directors

f) Partners

Director Address Share held Nationality NRC/Passport No.

( )

( )

( )

( )

Partner Address Share held Nationality NRC/Passport No.

( )

( )

( )

( )

( )

6

Previously held licences in Zambia if any, by applicant issued under the Information and Communication Technologies Act, 2009

Licence (Type and Licence No.)

Location

a) a) ( )

b) b) ( )

c) c) ( )

d) d) ( )

e) e) ( )

f) f) ( )


7

Currently held licences in Zambia, if any, by applicant issued under the Information and communication Technologies Act, 2009


Location

a) a) ( )

b) b) ( )

c) c) ( )

d) d) ( )

e) e) ( )

f) f) ( ) 8

Currently held licences in Zambia, if any, by subsidiary companies issued under the Information and Communication Technologies Act, 2009


Location

a) a) ( ) b) b) ( ) c) c) ( ) d) d) ( ) e) e) ( ) f) f) ( )

9

Have you ever applied for a licence in Zambia? If yes please give details below

Licence applied for Location Category of business

Date of application:

Status of application (granted, rejected or pending)*

( )

( )

( )

10

*If application was rejected give reasons for rejection

Project details

a) Location

Proposed launch date ( ) District ( )

b) Brief description:

11 Appendices*

Appendix No.1 Service portfolio, roll out plan and implementation schedule including service coverage area and intended performance levels

( )

Appendix No.2 Business plan for proposed services (should include information on technical proposal of the services to be provided, information on previous experience in the provision of the services and the profile of the individual company or partnership, as the case may be)

( )

Appendix No.3 Proposed tariff structure, including details of all charges (wholesale and retail)

( )


Appendix No.4 End-user terminal requirements and indicative retail prices (where appropriate)

( )

Appendix No.5 Investment certificate issued by the Zambia Development Agency, where applicable

( )

Appendix No. 6 Tax Payers Identification Number (TPIN)

( )

Appendix No. 7 Information of the contact person authority may require

( )

Appendix No. 8 Tax Payers Identification Number (TPIN)

Appendix No. 9 Any other information which the Authority may require

*The information required to be included in the various appendices

QUALITY OF SERVICE UNDERTAKING

I/we declare that the quality of service I/we provide shall meet the minimum requirements set out under the Act or any other law or, guidelines published by the Authority or any international standard to which the licence requires adherence.

DECLARATION

I/we declare that all the particulars and information provided in the this application are complete correct and true and I/we agree that in the event that any of the said particulars and information provided is found to be untrue or fraudulent, the licence will be revoked. I/we agree that in the event of the revocation of the licence, any fee paid to the Authority for a licence shall be forfeited. I/we declare that in the event that the nature of my/our business changes, or I/we no longer carry out operations in terms of the licence, I/we will notify the Authority in which case my/our licence may be revoked or revised. Declared at this .day of 20 by the following persons who are duly authorized to sign for and on behalf of the applicant under the authority of the Power of Attorney or Board Resolution which is hereby by attached.

___________ _______________ ___________ ________

Applicant’s name Date

______________________________________

Applicants Signature



Received by: __ ____________

Officer RECEIPT No.

Date Received: __ ___________________________

Amount Received: _ _________________________ STAMP

Serial No. of application: __ ___________________


8.3 Application Form for Radio Spectrum Licence

Application Form for Radio Spectrum Licence

(Document Number: RSM/AF/1)

Official Use Only: Application logging

Processing fee:

(mark with X)

ACCEPT

DO NOT ACCEPT

Licence category applied

for:

Licence fee category

applicable:

(mark with X)

FEES + VAT

VAT Exempt

FEE Exempt

Name of Receiving Officer: Date: Sign:

Official Use Only: Application Clearance for Electronic Communications Network licence

This application is hereby dully CLEARED

or NOT CLEARED

or

DOES NOT NEED CLEARANCE for Radio Spectrum licensing.

(mark with X)

This application is categorize as DOMESTIC

or CROSSBORDER

VSAT (or Satellite Earth Station) Licence category.

(mark with X)

Clearing Officer: Date: Sign:

Plot 5032 Great North Road, P.O. Box 36871, Lusaka 10101, ZAMBIA


Telephone: +260 21 1 241236 Fax: +260 21 1 246701 Email: [email protected]

Web: www.zicta.zm


Notes for Applicants

1. This application form sets out the standard information required for application for

Radio Spectrum licence in Zambia for establishment and operation of a

radiocommunication service (system) in accordance with the Information and

Communication Technology Act Number 15 of 2009, and the regulations made thereunder.

In certain cases, the Zambia Information and Communications Technology Authority (the

Authority) may seek further information or clarification from the applicant.

2. To submit a complete4 application, it is necessary to:

a) Complete all sections of the form.

b) Attach a certified copy of a valid company registration in Zambia in the case

of companies, or certified copy of either National Registration Card (NRC)

or passport in the case of individuals.

c) Attach a certified copy of a valid VAT registration in Zambia in case of

companies.

d) Attach a certified copy of a valid Aircraft registration certificate(s) in

Zambia in case of applications for Radio Spectrum licence to operate

aircraft radio station(s).

e) Attach a certified copy of a valid Morse code operation certificate(s) and/or

other amateur certificates held in case of applications for Radio Spectrum

licence to operate amateur radio station(s).

f) Attach a certified copy of a valid broadcasting station construction permit

and/or a broadcasting licence held in case of applications for Radio

Spectrum licence to operate television or sound broadcasting radio

station(s).

g) Attach written permission from owner of premises/sites authorizing radio

equipment installation where applicable.

h) Attach letter of support from identified Internet or Data service provider in

the case of applications for Radio Spectrum licence to operate

VSAT/Satellite earth radio station(s).

i) Pay a non-refundable application processing fee of K77.26 5 (VAT Incl).

3. An incomplete application shall NOT be processed.

4An incomplete application is not receivable.

5 Subject to change


3. How to submit the application;

Submit a complete application by post, hand, e-mail to [email protected], or via the

Authority’s web based online application lodgment facility ( www.zicta.zm ) to;

The Director General

Zambia Information and Communications Technology Authority

P.O. Box 36871

Lusaka 10101

ZAMBIA

4. If there is insufficient space on the application form, the applicant may append

additional material in support of the application. In doing so, an appropriate section number

must be quoted.

5. All fields in the application form are MANDATORY unless specified otherwise.

6. If you have queries in relation to radio spectrum licences, please contact the

Authority’s Radio Frequency Management section, Tel: +260 21 1 241236, and Email:

[email protected]

7. In the case of Base Station or Fixed Station or Broadcasting Station or Vehicle

Mounted Station or Aircraft Mounted Station or Ship Mounted Station or Repeater Station

Section 3 of this form must be completed in respect of each transmit site. E.g. If you have

2 proposed transmit sites, then please print and fill in the Sections twice, one set for each

transmit site. Therefore, make necessary number copies of the sections before completing.





Section 1: Key Applicant Details

Full Name of the Company, Firm or

Person in whose name the Licence

is

sought:

Trading Name:

(If different from above)

Business Address: Postal

Address:

Physical

Address:

Current Client Number6 held from

the Authority:

(If applicable)

Contact Person7 Full

Names:

Job

Title:

Office Phone

Number:

6 Client Number is a number allocated to you by the Authority; it is unique for a particular

licensee/client. You generally must have a client number if you have been awarded any type of a radio

spectrum licence before. This number is printed on the Authority correspondence such as invoices, renewal

notices etc.

7 Contact person is the person in your organization the Authority should contact in relation to this

application.


Mobile Phone Number:

Fax

Number:

E-Mail

address:


Section 2: System Details

PART A - General Details

Purpose of the

radiocommunication

system(s) for which

the Radio Spectrum

licence is sought:

Category of a Radio

Spectrum licence

that best suites the

above purpose:

(mark with X)

Aeronautical Radiocommunication Service

Amateur Radiocommunication Service

Broadcasting Radiocommunication Service

Citizenband Radiocommunication Service

SADC HF CrossBorder Radiocommunication Service

Fixed Radiocommunication Service

LandMobile Radiocommunication Service

Maritime Radiocommunication Service

Paging Radiocommunication Service

Satellite (VSAT/Earth) Radiocommunication Service

Nature of service Private

Commercial

Time(s) at which

radiocommunication

will take

Place: (E.g. Business

hours, All day, etc.)


Proposed

commencement of

the system

operation:


PART B - Proposed Frequency Usage Schedule

No. PARAMETER VALUE

1 Radio System Configuration

(mark with X).

Frequency Division Duplex (FDD) [Duplex system]

Time Division Duplex (TDD) [Simplex system]

2.1

Radio frequency spectrum

requirement(s)

Transmit frequency or range:

2.2

Radio frequency spectrum

requirement(s)

Receive frequency or range:

3 Necessary total bandwidth for

the proposed system

4 Emission type

5 Modulation scheme

6 Channeling (channel size)

7 Maximum Effective Isotropic

Radiated Power (Max EIRP):

8 Selectivity

9 Sensitivity

10 Frequency tolerance

11 Spurious radiation

14 Area(s) of operation and

desired coverage area:



Section 3: Station Details

PART A - System Station Summary

System Station Summary

STATION

TYPE

NUMBER OF

STATIONS

TRANSMITTER

EQUIPMENT

MANUFACTURER(s)

TRANSMITTER

EQUIPMENT

MODEL(s)

Base Station or

Fixed Station

or Broadcasting

Station

Vehicle

Mounted

Station or

Aircraft

Mounted

Station or

Ship Mounted

Station

Portable Station

or Pager

Station or

Alarm Station

Repeater

Station


Customer

Premise

Equipment,

CPE (where

applicable)

Note: In the case of Base Station or Fixed Station Vehicle Mounted Station or Aircraft

Mounted Station or Ship Mounted Station or Repeater Station Section 3 of this form must

be completed in respect of each transmit site.


PART B: Station Details

Site Physical Address

Site Location (Plot

Number and Street

name or Vehicle Reg.

Mark or Aircraft Reg.

Mark)

Towns

hip

District

Latitud

e

Deg Min Sec

Longitu

de

Deg Min Sec

Site Altitude (in meters

)

Radio Equipment Details

Preferred Frequency

(ies) [MHz]

Equipment

Make

Equipment

Model

Type

Approval

Number

Effective Radiated Power

Horizontal [dB]

Vertical

[dB]

Feed Type

(mark with

X)

Coaxial

Parrallel-wire

Waveguide

Cable

Type

Feed

Length

[m]

Line

Attenuation

[dB]


Antenna Details

Antenna Make

Antenna Model

Type

Approval

Number

Antenna Height Above Ground Level

[m]

Antenna

Directivity

(mark with X)

Omin-directional

Directional

Main Lobe Azimuth

(if antenna is Directional)

Antenna

Polarization

(mark with X)

Horizontal

Vertical

Circular

Antenna

Diversity Type

(mark with X)

Frequency diversity

Space diversity

Antenna Tilt Angle [Deg]


Section 4: Other Details

Any additional information relevant to this application (if any)


Section 6: Declaration8 Form – Radio Licence

I (full names), __________________________________________________________________,

of ___________________________________________________________________________,

hereby apply to the Zambia Information and Communications Technology Authority for the use of

radio spectrum for the purposes and with the equipment described by me in this form.

I have read and understood the provisions of the Information and Communication Technology Act

Number 15 of 2009, and the regulations made thereunder including the Standard Terms and

Conditions of Radio Spectrum licences as published.

I confirm that the information provided in this application is true and that it gives an accurate and

complete account of the circumstances for which this application is made.

I understand that an incomplete application shall not be processed.

Authorized Signature ………………………… . Date…………………………………..

Full Names….. ………………………………… Job Title..……………………………..

8 The declaration must be witnessed by a Commissioner of Oath.

Commission of Oath

Full Names…..

………………………………

… Signature

………………………………

Stamp………………………

……………………

Date…………………

………………….

Stamp


8.4 Numbering Application Form

(Regulations 5(1), 5(4), 6(2), 9(3), 12 and

16(1))

Form

1 (Regulation 5(1), 9(3) and

16(1)) (To be completed in

triplicate)

The Information and Communication Technologies Act,

2009 (Act No. 15 of 2009)

The Information and Communication

Technologies

(National Numbering Plan) Regulations,

2010

( ) individual or

( ) class licence



A

P

P

L

I

C

ATION FOR NUMBER

ASSIGNMENT/RESERVATION/CARRIER

IDENTIFICATION CODE Shaded fields for official use only

Licence code:

Date/Time:

Information Required Information Provided Check

List (√)

1 Type of Service ( )

2 Application Type

(Tick

Appropriate)

*Reservation

only

[ ]Allocation [ ]De-allocation [ ]Reservation

[ ]Commercially Sensitive [ ]Commercially non-sensitive [ ]Carrier Identification code

3 a) Name(s) of applicant(s) ( )

b) Type of Applicant:


Individual [ ] Company [ ] Partnership [ ] ( )


4 a) Nationality ( )

b) Identity card (National

Registration Card No.

or Passport No.)

Attach certified copies

( )

5 a) Notification address

Telephone

No.: Fax No.:

E-mail Address:

( ) ( ) ( )

b) Information of contact

person authorized to

represent the applicant

Telephone

No.: Fax No.:

E-mail Address:

( ) ( ) ( )

6 a) Company name b) Company address:

c) Company registration

No. (attach certified

copies of certificate of

registration)

( )

d) Shareholders- Shareholder Shares held Nationality NRC/Passport

No.

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

e) Directors Director Addres

s

Share held Nationality NRC/Passpor

t

No.

( ) ( ) ( )


( )


f) Partners Partner Addres

s

Share held Nationality NRC/Passpor

t

No.

( ) ( ) ( ) ( ) ( )

7 Previously held Numbers in

Zambia if any, by applicant

issued under the Information and

Communication Technologies

Act, 2009

Number Type Number(s) or Number Range a) a) ( )

b) b) ( )

c) c) ( )

d) d) ( )

e) e) ( )

f) f) ( )

8 Currently held numbers in

Zambia, if any, by applicant

issued under the Information

and communication


Number Type Number(s) or Number Range

a) a) ( )

b) b) ( )

c) c) ( )

d) d) ( )

e) e) ( )

f) f) ( ) 9 Currently held numbers in

Zambia, if any, by subsidiary

companies issued under the

Information and

Communication Technologies

Act, 2009

Number Type Number(s) or Number Range

a) a) ( )

b) b) ( )

c) c) ( )

d) d) ( )

e) e) ( )

f) f) ( ) 10 Have you ever applied for a number allocation in Zambia? If yes please give details below

Number

Assignment

applied for

(Tick

applicable

)

Geographic Non-geographic Special Premium Other

( ) ( ) ( )

11 Details of number(s) requested

Geographic Non-geographic Special Premium Other


(a) Number

Assignment

( )


applied for

(Tick

applicable

)

( ) ( )

Brief

description

(b) Date

required

(c) Range of

numbers

requested

1st Choice From To Inclusive ( )

2nd Choice From To Inclusive ( )

3rd Choice From To Inclusive ( )

12 Appendices*

Appendix No.1 Details of commercially sensitive information to enable Authority make an assessment on the

merits

( )

Appendix No.2 Detailed of intended use

( ) Appendix No.3 Investment certificate issued by the Zambia Development Agency, where applicable

( )

Appendix No.4 Such other information which the Authority may require

( )

*The information required to be included in various appendices

Note:


- If an allocation or part of an allocation is not brought into service within six months from the date of allocation, it shall be

withdrawn by the Authority.

- Reservation will lapse after six months unless covered by an application for an allocation or further period of reservation.


DECLARATION

I/we declare that all the particulars and information provided in this application are complete, correct and true and

I/we agree that in the event that any of the said particulars and information provided is found to be untrue or

fraudulent, the assignment/reservation will be revoked.

I/we agree that in the event that of the revocation of the assignment/reservation, any fees paid to the Authority in

respect of the same shall be forfeited. I/we declare that in the event that the nature of my/our business changes, or

I/we no longer carry out operations in terms of the assignment/reservation, I/we will notify the Authority in which

case my/our assignment/reservation may be revoked or revised.

Declared at this day of 20 by the following persons who are duly

authorized to sign for and on behalf of the applicant under the authority of the Power of Attorney or Board Resolution

which are hereby attached.

Applicant’s Name Date

Applicant’s Signature


Received by: Receipt No.: Officer

Date Received:

Amount Received:


Serial No. of Applicant: STAMP


SECTION 9 Technical and Financial Requirements

REQUEST FOR PROPOSALS FOR AN INTERNATIONAL NETWORK AND NATIONAL

SERVICE LICENCES

9.1. Purpose

The main purpose of the RFP is to select an applicant for issuance of network and service licences with

associated resources under the international and national market segments respectively.

9.2 Background

This invitation for application for Network and Service Licences has been issued by the Authority to the

public with a view of enhancing access to Information and Communications Technologies (ICTs) and

further develop the sector in Zambia. The call for proposals has been necessitated by heightened demand

for scarce resources needed to provide services under the international market segment as well as a desire

by the Authority to enhance effective competition in the sector.

The country has recorded notable progress in access to ICT services over the last decade. Specifically, the

number of active mobile phone subscribers increased from 2.6 million in 2007 to 12.4 million in 2017.

This represents an improvement in penetration rates from 22.5 percent to 75.8 percent between 2007 and

2017. Access to Internet services in the country increased to 5.9 million users reported at the end of June,

2017 reflecting an internet penetration rate of 36.1 percent. However, over 98 percent of the internet users

are mobile internet users consistent with the global trend of mobile internet services driving increased

internet penetration.

The above notwithstanding, the country has lagged behind in its progression in the uptake of mobile phone

subscription relative to a number of countries in the region. An assessment of the mobile telephone

penetration rates in other countries in the region reveals that Zambia is among the least penetrated markets.

The 2015 survey on access and usage of ICTs revealed that only 51 percent of people aged above 10 years

in Zambia are active users of mobile phones. Further, growth in mobile phone subscription in the country

has slowed down over the last five years to growth rates averaging less than 5 percent. The relatively slow

growth in penetration rates as well as the relatively low penetration rates could partly be explained by the

relatively high cost of mobile communication.

By the end of June, 2017, there were a total of 5,656 telecommunication sites operational in the country.

The largest proportion of the sites were 2G accounting for 52.9 percent of the total followed by 3G sites

that accounted for 37.6 percent of the total number of sites. Only 9.5 percent of the telecommunication

sites were 4G/LTE sites. An assessment of the financial statements of the three mobile network operators

reveals that the pace of new investment has stagnated over the last five years. Total investment on the


market have averaged less than $90 million dollars per annum over the last five years.

Additionally, the inadequate investment in the sector was confirmed by the 2017 Spectrum Audit prepared

by an independent consultant. The report showed that the existing major operators needed to deploy more

than 7400 base stations in order to meet the desired QoS. This means there has been clear underutilization

of optimal spectrum especially in the key bands below 1GHz. Not surprisingly, existing service providers

have consistently failed to meet the Quality of Service/Quality of Experience (QoS/QoE) standards

countrywide as stipulated in the QoS Guidelines of 2010 since 2013. The existing price wars and apparent

lack of network capacity to match the numerous promotions has not helped the poor QoS situation. The

Authority is aware of rapid pace of technological advancement in the ICT sector and wishes to encourage

more innovative business models and the deployment cost effective technologies in order to further drive

down the tariffs and improve quality of service. Voice Over the Internet Protocol (VOIP) has been in

existence for over a decade albeit mainly on the international side but we believe wireless broadband

technologies now exist to offer competitive and quality retail VOIP services as long as the network meet

the jitter and latency requirements as prescribed in the QoS Guidelines.

The market has experienced minimal variations in the competition landscape among the three mobile

network operators as evident from the trends in the Herfindahl-Hirschman Index9 (HHI) which has

stagnated around 0.4 in the last five years. There is scope to further deepen the competition landscape and

reduce concentration in both subscription and revenue among few players through more effective

participation by other players on the market.

The ICT sector’s contribution to the Gross Domestic Product has consistently been below 3 percent over

the last five years. In 2016, the sector is estimated to have contributed about 2.7 percent to GDP. This

performance is below the regional average growth rates which are above 5 percent.

ZICTA issued its strategic plan for the period 2017-2021 where it outlines its vision for the ICT sector over

the next five years. Among the key outcomes of its various interventions contained in the strategic

document are the following:

INDICATORS BASELINE TARGET

Contribution of ICT sector to GDP 2.6% 5%

Mobile cellular penetration 74% 100%

Mobile Internet Penetration 39% 80%

Fixed Internet Penetration 0.25% 5%

Internet Penetration 39.3% 70%

9 The Herfindahl-Hirschman Index is a composite measure of concentration computed as the sum of squared shares firm in total subscription. Its value lies between 0 and 1 with magnitude signaling a decrease in competition or concentration of market power in a few firms.

http://www.investopedia.com/terms/h/hhi.asp


Internet penetration household 12.7% 50%

Mobile cellular coverage (population) 84% 100%

Broadband speed 2Mbps

Complaint Resolution 60% 90%

Enforcement of Quality of Service 65% 90%

Cyber security readiness 80%

9.3 Resources on offer

a. National Destination Code(NDC)-098

b. Mobile Network Code (MNC)- 645-04

c. SIM Header 89 260 04

d. Short codes for common services and emergency services as declared by the Authority as follows:

i. 111 for customer care,

ii. 113 for credit recharge,

iii. 114 for checking credit,

iv. 911 for general emergency,

v. 991 for Police

vi. 992 for Hospital

vii. 993 for fire related emergency

viii. 999 for General Emergency







o 5GHz;

o Lower 6GHz;

o 11GHz; and

o 18GHz;

The successful applicant will pay for the above resources as prescribed in Numbering and Fees Regulations


9.4 Eligibility criteria

This invitation is open to both local and international applicants. Applicants holding licences issued

by the Authority should not have outstanding regulatory fees or compliance issues.

9.5 Financial Requirements

The applicant must provide the financial proposal which should include but must not be limited to the

following:

(a) A bus ine s s p r o f i le relating to responsibilities, capital structure and legal establishment

of the business. The level and nature of Zambian participation must be clearly outlined by

the applicant. The applicant must indicate the direct and indirect shareholdings together with

percentages of the ownership.

(b) History and experience of the applicant in the establishment and operation of electronic

communications networks and services including the size of the network, number and

type of clients and countries of o p e r a t io n . The applicant shall provide information

regarding any licences previously and currently held relating to the provision of electronic

communications networks and services.

(c) Financial history including aud it ed financial statements for the last three years. The

Financial statement must contain statement of financial position, income statement and the

cash flow statement. In case of a consortium, members should submit the said financial

history. The applicant shall also submit the total investments in each country where it has

been operating in the last three (3) years.

(d) A description of potential sources of funding presented in form of a financial plan with

evidence supporting investment forecast. The applicant shall submit the following as proof

of source of investment :

i. Commitment letter from the Shareholders or consortium partner;

ii. Financial statements from the company providing funding, to ensure that it is

capable of fulfilling its commitments;

iii. Letters of intent from financial institutions in the event of a loan, or from

suppliers in the case of supplier credit; and

iv. Adequate working capital to offer the ICT services and products.

9.5.1 Market penetration

An applicant shall submit the following information which relates to the market penetration strategy:

(a) A description of the current and future (up to three (3) years) key market characteristics

reflecting the applicant’s view of the evolving Zambian ICT mar ke t ;


(b) a marketing plan which shall demonstrate the applicant’s knowledge of the current and

future market needs and strategies for fulfilling its licence obligations, stating the

applicant’s forecast market share and how it intends to acquire that market share in the next

three (3) years;

(c) a detailed market analysis which shall include among other requirements-

i. Identified key market trends and a description of how the trends may influence the

operations of the applicants electronic communications networks and services;

ii. The expected competition that the applicant is likely to bring to the market and how it

shall improve service delivery , prices of goods and services and consumer experience

in the ICT Sector;

iii. A detailed SWOT analysis of the market;

iv. A detailed demand analysis based on the applicants service and product delivery;

v. Market Strategy to cover customer segmentation and product differentiation. This

should also elaborate on the distribution channels of the applicants products and services

taking into account Zambia’s geographical boundaries with some areas characterized by

poor road networks;

vi. Market share projections in relation to competitors over a period of five (5) years;

vii. Description of a range of products and services to be offered to the public including the

associated price points or proposed tariff plans. The pricing structure must be cost

based, non-discriminatory and transparent in accordance with tariff approval

requirements under the Act;

viii. Commercial launch schedule of the products and services ;

ix. Revenue or sales projection by product and service over a period of five (5) years;

x. Promotion strategy aimed at penetrating the market during the launch phase; and

xi. Customer Care strategy including the establishment of call centres and other mediums

of customer information dissemination.

9.6 Human Resource Plan

The applicant shall submit a detailed human resource plan highlighting the following:

(a) Initial management team including consultants who may be incorporated to assist in start-up;

(b) qualifications and experience of the management team or consultants;


(c) Organizational structure; and

(d) Personnel plan for the respective departments for five years indicating the percentage .

The applicant shall submit the following information which relates to Financial Projections:

(a) Evidence of financial capability to successfully accomplish the business projections and

fulfil the licence terms and conditions ;

(b) The information provided, together with assumptions, should cover a minimum per io d o f

five (5) years o f o per at io ns following the grant of the licence, and shall include investment

and expected return on investment. The level of investment must commensurate with the licence

being applied for in the following categories:

i. District Market segment: The level of investment must be able to support

growth in coverage at an incremental rate of at least 15% Per year;

ii. Provincial Market segment : The level of investment must be

able to support growth in coverage at an incremental rate of at least 15% per year;

iii. National Market Segment: The level of investment must be able to cover the entire

nation with growth in coverage at an incremental rate of at least 15% per year; and

iv. International Market Segment: The level of investment must commensurate with

the ability to offer international services. Additionally, the applicant is must ensure

that it meets the coverage obligations at the national level at an incremental rate of

at least 15%;

(g) Investment appraisal indicating the Net Present Value of the expected cash flows, the

Internal Rate of Return (IRR) and the payback period;

(h) Detailed forecast statement of financial position which must indicate the anticipated capital

expenditure to be made in Zambia in the next five (5) years;

(i) Detailed forecast Income statements for at least five (5) years; and

(j) Forecasted cash flow statements for at least five (5) years.

(7) The Authority may select portions of information submitted by the applicant relating to the financial

evaluation to form part of the terms and conditions of the licence.

9.7 Technical Requirements

The applicant shall submit the overall system architecture and configuration which shall include the

following:

9.7.1 Core Network


The applicant shall provide the detailed core network architecture and all the elements thereof. The

applicant shall demonstrate that sufficient capacities reflecting the subscriber projections are provided for

together with the type of switching elements and redundancy capabilities. The applicant shall state the

Grade of Service to be achieved in line with international best practice.

9.7.2 Transmission Network

The applicant shall demonstrate that the backhaul transport links regardless of transmission media and

technology to be employed conform to the following Carrier Grade minimum requirements:

i. the system must be capable of providing end-to-end operational, administrative and

management (OAM) facilities in compliance with the Authority’s acceptable standards;

ii. Automatic Protection Switching (APS) mechanisms to provide sub-50ms protection

switching time; and

iii. Highly resilient transport network with route redundancy that achieves network availability

of at least 99.98%.

9.7.3 Access Network

The applicant shall submit a Quality of Service plan that includes a methodology of measurement of

Quality of Experience. The adopted measurement methodologies must be end-to-end methodologies, in

compliance with the Authority QOS guidelines.

9.7.4 Coverage

An applicant shall submit details of its coverage plans in line with the minimum technical requirements

shown in the table below.

Technology (MHz) CS (kHz) SENS (dBm) FS (dBµV/m)

GSM 900 200 -104 30

GSM 1800 200 -104 36

UMTS 2100 5,000 -80 61

LTE 700/800 -80 53

LTE 1800–2000 5,000 -80 61

LTE 1800–2000 10,000 -77 64

LTE 1800–2000 20,000 -74 67

WiMAX* 5,000 -80 53

WiMAX* 10,000 -77 56

WiMAX* 20,000 -74 59

An applicant shall submit an equipment list to ensure compliance to the standards set out in the type

approval guidelines.

9.7.5 Spectrum Management

An applicant shall demonstrate the ability to efficiently utilize the allocated spectrum.


9.7.6 Interconnection and Numbers.

An applicant for an international individual network licence must demonstrate the interconnection system

capability. The applicant shall be allocated one or more resources if any as per National Numbering Plan

and as shown in the table below :

No. Resource Condition


international public

telecommunication numbering

plan.


International Individual Network Licence for the

provision of voice services, and planning to

develop a Public Switched Telephone Network

(PSTN) and some other data networks.


international identification plan

for public land mobile networks

and subscriptions.


International Individual Network Licence as

appropriate

3 Rec ITU-T Q.708: Assignment

procedures for international

signalling point codes


International Individual Network Licence

An applicant requiring number resources for other licence categories shall apply to the Authority which

may assign the number resources in line with the national numbering plan.

9.7.8 Interoperability

An applicant shall demonstrate the ability of the proposed network facilities to interconnect with other

networks in all market segments. The network interface shall comply with the Authority’s acceptable

standards.

9.7.9 Technical Experience

An applicant shall demonstrate the ability to provide electronic communications networks and services and

where applicable show proof of having provided similar services. This information shall include the size

of the network, the subscriber base and the type of services provided.

9.7.10 Mobile Virtual Network Operator (MVNO).

(a) An MVNO shall demonstrate that the Mobile Network Operator (MNO) hosting it has the ability

to provide sufficient capacity in order to avert congestion on its network as a result of leasing.

(b) The MVNO shall submit the MNO’S Quality of Service performance records covering a period of

two (2) years preceding the application.

(c) The MVNO shall provide written proof that the MNO is willing to enter into a commercial capacity

leasing agreement.


9.7.11 Quality of Service-Voice over IP (VoIP)

(a) An applicant shall demonstrate that the VOIP/VOLTE services it intends to provide meet the

minimum QOS standards as specified by the Authority in the QOS guidelines.

(b) For VoIP and VoLTE to be regarded as a replacement or equivalent for standard public switched

telephone network (PSTN) telephony services, subscribers are expected to receive the same

quality of voice transmission as they do with basic telephone services i.e. consistently high-

quality voice transmissions. Therefore, the applicant shall be required to guarantee sustained

bandwidth for the duration of the VoIP/VoLTE call.

(c) The VoIP/VoLTE network should, therefore, be able to support concurrent calls without

buffering or jittering. The applicant shall be expected to demonstrate availability of the

bandwidth requirements that the VOIP/VoLTE phone service requires to handle concurrent

calls. The Authority expects minimum sustained bandwidth speeds of 2Mbps up and down for

VoIP/VoLTE calls, as well as recommends speeds of 5-10Mbps up and down for optimal

performance.

(d) An applicant shall ensure that the network codec is designed as per ITU-T G.729 standard so

that packet loss is less than one percent (1%) to avoid audible errors. It is the obligation of the

applicant to ensure there is no packet loss for VoIP/ VoLTE. The voice-over-internet

conversation must be continuous without drops or losses.

(e) An applicant shall adhere to the ITU G.114 specification (among other standards) which

recommends less than 150 millisecond (ms) one-way end-to-end delay for high-quality real-

time traffic such as voice. (For international calls, one-way delay up to 300 ms is acceptable,

especially for satellite transmission).

9.7.12 Information Security Management System

An applicant shall demonstrate how it shall secure its networks, applications and customer data and must

provide a detailed business continuity program to ensure reliable services.

NB

The Authority may select portions of information submitted by the applicant relating to the technical

evaluation to form part of the terms and conditions of the licence.


SECTION 10 Schedule of Fees

10.1 Schedule 1: Network and Service Licence Fees

Table 8 Network and Service Licence Fees

10.2 Schedule 2: Numbering Fees

NUMBERING FEES

No CATEGORY FEE UNITS FEES (K)

Registration Fees

1 All other categories 40,000 12,000 12000

2 Carrier Pre-selection 200,000 60,000

Fixed and Mobile Operators

1 Subscriber Numbers 1 0.3

Other Codes

1 Mobile Network Code (MNC) 20,000 6,000

2 National Destination Code (NDC) 20,000 6,000

3 International Signalling Point Codes (ISPCs) 20,000 6,000

4 National Signalling Point Codes (SPCs) 20,000 6,000

5 Network Colour Codes 20,000 6,000

6 SIM Headers 10,000 3,000

7 Special Service Numbers (Freephones, Premium) 10,000 3,000

Duration Application Fee Initial FeeAnnual

Operating FeeApplication Fee Initial Fee

Annual

Operating FeeDuration Application Fee Initial Fee

Annual

Operating

Fee

1 International 15 years 16,666.80ZMW 3,255,000.00ZMW 1.5%

(Fee Units) 55,556 10,850,000

2 National 10 years 16,666.80ZMW 1,200,000.00ZMW 1.5% 16,666.80ZMW 300,000.00ZMW 3% 3 years 8,333.40ZMW 375,000.00ZMW 3%

(Fee Units) 55,556 4,000,000 55,556 1,000,000 27,778 1,250,000

3 Provincial 5 years 8,333.40ZMW 166,668.00ZMW 1.5% 1,666.80ZMW 166,668.00ZMW 3% 3years 8,333.40ZMW 208,335.00ZMW 3%

(Fee Units) 27,778 555,560 5,556 555,560 27,778 694,450

4 District 5 years 1,666.80ZMW 83,334.00ZMW 1.5% 1,666.80ZMW 83,334.00ZMW 3% 3 years 8,333.40ZMW 104,167.50ZMW 3%

(Fee Units) 5,556 277,780 5,556 277,780 27,778 347,225

National Provincial District National Provincial District

LICENSING FEE SCHEDULE-2017

Network License Service (With Network) License Service (Without Network) License

To provide to the public voice, message, Internet

services, Internet Telephony (VoIP), pay phone,

Value Added Services, Data services, Tracking

services etc.

SERVICES

NETWORKS

Gateway facilities, such as Earth Station, VSAT/ Hub,

Switching Centres, Nodes and Servers and others.

Switching, transmissions and access facilities such as VSAT/

Hub; Microwave links; Fixed links, Switching Centres, Laid

cables; Fibre Optic, Exchange, Nodes, Servers, Towers,

Ducts, Transmitters and Links and others

International


8 Carrier Selection Codes 100,000 30,000

Short Codes

1 Three (3) digit Short Codes 100,000 30,000

2 Four (4) digit Short Codes 60,000 18,000

Table 9 Numbering Fees

10.3 Schedule 3: Spectrum Licence Fees

Spectrum band Band limits Fee Structure

Fee mode Fee

Miscellaneous

Application

Processing Fee

- Per Application K66.60

National Cellular

900 MHz Bands 880 – 960MHz Per 200KHz K46,666.80

1800 MHz Bands 1710 – 1880MHz Per 200KHz K46,666.80

2.3GHz band 2300 – 2400MHz Spectrum Fee Formula (i.e. Per

1MHz per province)

K4,166.70


1MHz per province)

K4,166.70


1MHz per province)

K4,166.70


1MHz per province)

K4,166.70

10.5GHz band

10.15-10.3

GHz//10.5-10.65

GHz

Spectrum Fee Formula (i.e. Per

1MHz per province)

K4,166.70

Transmission links

Microwave link

bands

4.400 – 8.500GHz

10.70 – 12.50GHz

12.75 – 13.25GHz

14.50 – 15.35GHz

17.30 – 19.70GHz

22.00 – 24.00GHz

Per transmitter K833.40


ISM bands

Common bands

(mainly for Wireless

networks)

2.400 – 2.500GHz

5.725 – 5.875GHz

Per transmitter Free

Satellite (VSAT)

All Satellite bands

Per transmitter

(dependent on the station type)

Domestic

Urban:

K4,166.70

Domestic rural:

K1, 666.80

Table 10 Spectrum Licence Fees

Date post:	17-Mar-2018
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