Eurostrategies
Assistance to the Establishment of the Telecommunications Regulatory Authority in Lebanon
SCR-E/111668/D/SV/LB
The Telecommunications Regulatory
Authority (TRA)
www.tra.gov.lb
G Alan Horne
Presentation at Termium
22nd Sept 2004
Eurostrategies
Third Floor, Ministry of Telecommunications
Riad El-Solh Street, Beirut, Lebanon
Fixed line: +961 (0) 1 981 490
Lebanon Mobile: +961 3088660
Introduction
• Objective over the next 30 minutes to present:
– Mission of TRA
– Legal basis
– Powers
– Budget & Funding
– Organisation
– TRA Strategy
– Establishment of Regulations
– Sector Development
– Conclusions
Eurostrategies
2
TRA Mission
To regulate the telecommunications sector so as to achieve a
competitive environment delivering a wide range of high quality
services at competitive prices, in order to assist in the overall
development of the Lebanese economy for the benefit of
businesses as well as all the citizens of Lebanon.
Eurostrategies
3
Legal Basis
• Telecommunications Law - 2002
–
–
–
–
Creation of Telecommunications regulatory Authority (TRA);
Corportatisation - Creation of Liban Telecom;
Privatisation;
Restructuring Ministry of Telecommunications to focus on: Policy, International
Relations and TRA supervision;
• Enabling Decrees
– Administrative Decree and financial Regulation of the TRA (Art 4);
– Appointing the TRA Board (Art 6.1, Art 7, Art 8);
– Remuneration of Board Members (Art 9);
• The Authority shall not be subject to rules governing public
institutions but shall be subject to post Audit by Public Audit
Court;
Eurostrategies
4
TRA Powers
• The Law gives TRA power to manage all aspects related to:
–
–
–
–
–
–
–
Promotion of competition and stop anti competitive actions;
Licensing, Spectrum, Numbering, Interconnection;
Technical standards;
Tariffs;
Enforcement and imposition of penalties;
Mediation and arbitration;
Supporting educational and health institutions and facilitate the
physically disadvantaged through telecommunications
– Draft Decrees to detail specific areas of regulation:……
Eurostrategies
5
Eurostrategies
Acts of Parliament
Decrees
TRA
GoL Policy Documents
(Art.11.2.2)
Competition
Data
Protection
Telecom
E
Commerce
Telecoms
Sector
Primary Legislation
Public Budget
Licences
Licenses (Art. 19)
TRA structure
Class
Guidelines & Decisions
MIC 2
TRA Strategy, Policies,
Procedures
MIC 1
Liban Telecom
?
Numbering
Spectrum
Certification
Licensing
Interconnection
Policies
Secondary Legislation
6
Budget & Funding (Art 11 & 12)
• Financial independence – own fund;
• Independent audit - Post Audit by Public Audit Court;
• Publish financial statement;
• Sources of fund…
Eurostrategies
7
Sources of fund
Admin
Licence
fees
Radio
Spectrum
Licence
Fees (usage)
Funds from
competitive bidding
Art. 17
process and usage
$x
TRA Surplus
Art. 11-funding 1(a)
Art. 17
Radio
Spectrum
Administration
fees
Art. 11-funding 1(b)
< 10% of $x
Art. 11
funding 2)
TRA
Central Bank
of
Lebanon
Eurostrategies
Ministry
of
finance
Full TRA
budget for
2 years
8
TRA Organisation
TRA Board
Chairman
Legal Affairs
& Licensing
Manager
Legal Dept.
Manager
Licensing
Dept.
Lawyers,
licensing
officers
Telecommunicat
ions Technology
Manager
Spectrum
Dept.
Manager
Technical
Dept.
Information &
Consumer Affairs
Manager
Standards/
QoS Dept.
Interconnection,
numbering, type
approval spectrum
Manager
Public
Relations
Dept.
Manager
Consumer
Protection
Dept.
Public
relations,
dispute
resolution,
contract
managers
Marketing &
Competition
Mangr
Tariffs
Dept.
Mangr
Market
Anal
Dept.
Wholesale and
retail tariffs,
market
analysis,
universal
service
Head
Head
Head
Financial.
Admin
Int. Audit
Eurostrategies
Mangr
Policy/US
Dept.
9
The Board
• Appointed and terminated by Decree (Art 6)
– Chairman and four members for non-renewable or non-extendable
period of five years – proposed by the Minister and adopted by the
Council of Ministers;
– No direct or indirect interest with any person that provides
telecommunications services and equipment;
– University degree and experience related to position being taken;
(telecommunications, economics, business administration, law, finance,
engineering, computer science)
• Remuneration set by Decree;
• Meetings majority votes on all legal matters;
Eurostrategies
10
TRA Operational Objectives
• Make the right decisions through consultations and must:
– Be accessible to all via telephone, internet and when appropriate face to
face meetings
– Communicate objectives, policy, decisions via web site, media relations,
conferences and workshops
• Must
–
–
–
–
be efficient in its operations
create an efficient competitive environment;
be responsive to the consumer;
be responsive to the Licensees;
• Efficiency depends upon:
– Well educated and well trained staff;
– Effective systems (Use of CRM and IMS);
– A core set of clear policies, guidelines and procedures;
Eurostrategies
11
TRA Strategic Plan
• Goals for the TRA will be set to achieve the Authority’s
Mission and must be defined in line with the needs of the
Lebanese telecommunications sector;
• A Draft TRA five year Strategic Plan has been prepared for
consideration by the Board when formed;
• The priorities were arrived at after informal interviews with
key stakeholders, including users, operators, politicians, the
Ministry of Telecommunications (MOT) and investors
• Three Key Goals are proposed dealing with:
– Competition
– Regulation
– Broadband
Eurostrategies
12
Competition
• Support the economy of Lebanon by ensuring that there is a
comprehensive and sound competitive framework for
communications services matching international best practices;
• Foster innovation and offer consumers real choice ensuring
that the widest number of customers obtain the widest range of
high quality services, meeting users’ needs at affordable prices;
• The pro-competitive framework
domestically and overseas.
Eurostrategies
should
be
promoted
13
Regulation
• Establish an effective and independently regulated
environment.
• Emphasise performance and results through excellent
management.
• Develop and retain independent mission-critical expertise and
align the TRA with the dynamic communications markets so as
to achieve a liberalised and competitive regime in
telecommunications.
• Promote an environment which will encourage investment in
the telecommunications sector as the basis for the attraction
and development of the information economy.
Eurostrategies
14
Broadband
• Establish regulatory policies that promote competition,
innovation, and investment in broadband services and
facilities;
• Monitor progress toward the deployment of broadband services
in the Lebanon;
Eurostrategies
15
To implement the Strategy
• To implement the Strategic Plan we need to create:
–
–
–
–
Policies
Decrees
Guidelines
Procedures
• All will be developed using the Consultation Process;
• Policies, Guidelines and Procedures are being prepared
covering such areas as:
–
–
–
–
–
Licensing
Numbering
Spectrum
Certification
Tariffs
Eurostrategies
16
Sector Development - today
GSM
Ownership
Polic
y
Int.
Relations
MoT
Admin
Fixed
operations
Regulation
Radio spectrum
Mobile 1
Mobile 2
TV Regulation
OGERO
Telecommunications
Industry
ISPs
TV dist
mmds/cable
Private n/w
Eurostrategies
Data n/w
providers
17
By the end of 2005
MoT
TRA
supervision
Int.
Relations
Sector
Policy
Ministry/
Governmental
organisation
100%
Ownership
TRA
LALU
TTU
Admin
ICAU
MCU
Telecommunications
Industry
Liban Telecom
Mobile 3 ?
ISPs
TV dist
mmds/cable
Mobile 1
Mobile 2
Eurostrategies
Admin
Data n/w
providers
18
By the end of 2010
GoL
Policy
Maker
Regulator
Policy
< 50%
Ownership
Law
Individual
Services
Licence
Interconnection
Regulation
Decrees
Class
Licences
Retail tariff Regulations
Competition Regulations
Number
Management
NeCo
NewCo
Interconnection Clearing House
Operator 1 Operator 2 Operator n
Voice, Data
Fixed & Mobile
Voice, Data
Fixed & Mobile
Voice, Data
Fixed & Mobile
Number Portability Clearing House
ISPs
ISPs
ISPs
Hosts
ISPs
ISPs
ISPs
ISPs
ISPs
Equip
Suppliers
Frequency
Management
Radio
TV
Mobile, fixed wire, fixed wireless, WiFi, cable, broadcast
customers
Eurostrategies
19
By the end of 2010
• Class Licences for most types of operations which do not need
to be applied for;
• Particular licences only for infrastructure development;
• Three national infrastructure providers, each competing on
equal terms and with a significant non government share
holding?;
• Operators able to sell any type of service and use any type of
technology;
• Other service providers offering indirect access;
• Customer able to change service provider and keeping number;
• Voice and data services and prices matching international best
practice and cost orientated
• Universal service fund set up to support service provision to
uneconomic areas;
Eurostrategies
20
Operator Structure
Retail Services
Fixed Line Mobile
Services Services
ISP
Leased
Services Services
Account
Separation
Non
discrimination
Transparency
Carrier Services
Department
Mobile
Operator
Fixed Line
Operator
Data
Operator
Operating Network
Licensed Operator
Eurostrategies
ISP
21
Strong Regulation in definitive areas
• Regulator controls:
– Numbers;
– Spectrum;
• Regulator sets regulations for:
– All wholesale services of operators with SMP in such services;
– Basic retails services of operators with SMP (e.g voice, internet access,
leased lines)
• Creation of Fair Competition is essential to success.
Eurostrategies
22
Resulting benefits to all stakeholders
• Consumer
–
–
–
–
Choice of supplier
Lower prices
Improved services
Easier access to new systems and services
• Government
–
–
–
–
Increased value of assets
Increased volume of usage
Increased direct fees from sector
Increased indirect fees from improved business performance
• Operators
– Improved economy of scope and scale;
– Regulated interconnection and wholesale prices
• ISPs and Value Added Resellers
– Ease of market entry
– Wholesale interconnection prices
Eurostrategies
23
Conclusion
• The latent demand for telecommunications services at
affordable prices creates a significant opportunity for Lebanon;
• The Government in implementing its Telecommunications Law
and Policy will unlock this latent demand and bring benefit of
all stakeholders;
• The creation of the TRA is the next step in the implementation
of the reform.
Eurostrategies
24
A TRA working in an open, transparent and consultative
manner, staffed with experienced people and learning from
international best practice will, within 5 years, have a
positive impact on employment, trade, GDP and make a
significant contribution to reducing the nation’s balance of
payments and debt
Eurostrategies
25