UA 201 Telecoms policy and regulatory environment vis a vis REN activities in the UbuntuNet region

Overview of Telecommunications Policy, Regulatory and Infrastructure Environment vis a vis REN Activities in the UbuntuNet Region1

1. BACKGROUND

As part of the Master Plan and Strategy development process, UbuntuNet Alliance carried out a situational survey of the telecommunications sector policy and regulatory environments covering 22 countries in its membership region, with specific focus on impact on research and education networking activities. The output informs the Backbone Vision and its implementation strategy in the Policy and Master Plan, and our strategy for planning, along with the NRENs, approaches for working with policy makers and regulators towards more conducive environments and, like sailing against the wind, creating success despite the challenges.

2. BARRIERS TO BROADBAND ACCESS

We found the following to be the key environmental barriers to access to broadband communication:

• Slow reforms in the communication sector • Inadequate access to backbone infrastructure at affordable prices • Inadequate policies and regulation with regards to ownership and access to essential infrastructure by universities and research institutions

Slow sector reform

Policies and regulation that govern: access to spectrum; ownership of fiber infrastructure such as dark fiber; and interconnection and tariffs are often unfavourable, and also vary widely. Some governments in the region such as Kenya, , Tanzania and Uganda have made progress in reforming their telecommunications sector policy, legal and regulatory environments; and have also adopted technology neutral converged regulatory frameworks that promote access to broadband infrastructure. Others like Djibouti, Eritrea, Ethiopia and Swaziland still favour monopoly and restrictive regimes that hamper academic institutions’ ownership and operation of broadband fibre and wireless networks.

Access to broadband Infrastructure

A critical aspect of high speed connectivity is ensuring that national and international fiber access is available and affordable. Bandwidth to sub-Saharan Africa still comes through a single submarine cable—the South Atlantic Telephony-3/West African Submarine Cable (SAT-3/WASC, or SAFE) or via satellite connection – inherently poor quality and expensive.

1 This paper was prepared for the UbuntuNet Alliance by Dr Lishan Adam and Dr F F Tusubira during the second half of 2008.

UA 201Ver December 2008 Page 1 of 7 UA 201 Telecoms policy and regulatory environment vis a vis REN activities in the UbuntuNet region

The price of SAT3 has been kept artificially high because the connection was, until recent limited relaxation, shared by a closed consortium of dominant telephone companies and state monopolies.

The existing backbone infrastructure in the UbuntuNet region is mainly low capacity, wireless-based links designed to carry voice traffic. Submarine cable projects including SEACOM and The East African Marine Systems (TEAMS) that are expected to be in service in 2009 and the East African Submarine cable System (EASSy) that is expected to be launched in 2010 should, provided they maintain the agreed open access principles, address the international connectivity gaps. Additional backbone is however required to connect the inland regions and landlocked countries to the landing points: there is a current real likelihood that international fiber with the potential for much cheaper bandwidth will be neutralised to a large extent by the bottlenecks created by the absence of sufficient backhaul and national backbone capacities.

Countries in the region like Burundi, Rwanda, Kenya, Tanzania and Uganda have initiated studies and rollout programs for national backbones in recent years supported by development agencies and the private sector. Others such as Botswana, Ethiopia, Mozambique, South Africa, Sudan and Zambia are rolling out their national backbone networks through existing operators. Djibouti, Democratic Republic of Congo, Lesotho and Somalia have yet to initiate national backbone projects.

Ownership and access to essential facilities by academic and research institutions

The restriction on academic ownership and operation of network infrastructure is often due to the monopoly of networks by traditional incumbent operators that are regarded as sole owners of the network, including national gateways. In most countries, only the licensed operators and other public utility companies have the Rights of Way, and NRENs would have problems trying to establish their own networks if they so wished. In countries like Eritrea and Ethiopia the restrictions are extreme, with even the use of VSAT and its operation by academic institutions prohibited. In most of the countries NRENs can only purchase fiber capacity from existing licensed providers. This denies them the option to consider ownership models that might be more cost effective or to build networks for special research purposes.

Policies and regulations concerning broadband fiber networks are at early stages in most of the countries, and there are therefore no provisions for NRENs to be operators of networks with equal access to essential facilities. In some countries like Kenya, and more recently South Africa, NRENs have formal licenses.

Table 1 summarizes the state of ICT policy and regulatory environment in the UbuntuNet membership region.

3. CONCLUSION

It is evident that within the next two to three years, there will be sufficient infrastructure opportunities to satisfy the full integration of African research and education institutions into the global research and education community. The key barrier will be policy and regulation that permit this to happen at the lowest cost, underscoring the urgency of addressing environmental change now.

UA 201Ver December 2008 Page 2 of 7 UA 201 Telecoms policy and regulatory environment vis a vis REN activities in the UbuntuNet region

Table 1: The Policy, Regulatory, and Infrastructure Environment in the UbuntuNet Region Countries with Respect to Research and Education Networking COUNTRY EXTENT OF EXISTING FIBRE NATIONAL FIBRE ABILITY TO OWN ABILITY TO OPERATE ABILITY TO OUT LIBERALISATION OPPORTUNITIES BACKBONE INFRASTRUCTURE INFRASTRUCTURE AN INTERNATIONAL GATEWAY 1 ANGOLA Liberalized market Fiber from Angola Angola Telecom has No regulatory No regulatory provisions Angola Telecom with Angola Telecom been deploying national provisions for for NREN’ ownership and retains monopoly Telecom in backbone in various NREN’ ownership of operation of fiber on international dominant position phases fiber infrastructure , infrastructure gateway with regards to fixed line and fiber NRENs can own and NRENs can own and networks operate VSAT operate VSAT

2 BOTSWANA Liberalized with BTC fiber ring and Government’ national Universities are NRENs are free to operate NRENs can in BTC the dominant connectivity to fiber ring has been expected to lease their own infrastructure principle get a player in fixed and neighbouring countries completed fiber from the BTC, gateway license broadband segment free to use VSAT 3 BURUNDI Partially liberalized Optical Fiber network No national backbone No regulatory No regulatory provisions ONATEL retains with incumbent does not exist in exists, provisions for for NRENs to own fiber monopoly over operator ONATEL Burundi Plans for Burundi NREN’ ownership of infrastructure national gateway the main player in Backbone (BB) is fiber infrastructure fixed line segment underway through exists, NRENs can own and funding from the World operate VSAT Bank – study by the NRENs can own and World Bank and operate VSAT SWEDTEL

4 Djibouti Public monopoly Djibouti has access to National fiber backbone No policy and No policy and regulatory Monopoly of of SEA-ME-WE cable and does not exist regulatory provision provision for operation of international telecommunication potential for landing of for ownership of fiber fiber infrastructure by gateway by Djibouti EASSy and SEACOM infrastructure by academic institutions Telecom academic institutions 5 DRC Partially liberalized Limited fiber links exist No national backbone No regulatory No regulatory provisions Monopoly of with fixed line from alterative exists provisions for for NRENs to operate fiber gateway by monopoly of the operators such as Study completed by NRENs to own fiber infrastructure Congolese Post and Congolese Post and railway and power IDRC. World Bank is infrastructure, Telecommunicatio

UA 201Ver December 2008 Page 3 of 7 UA 201 Telecoms policy and regulatory environment vis a vis REN activities in the UbuntuNet region

COUNTRY EXTENT OF EXISTING FIBRE NATIONAL FIBRE ABILITY TO OWN ABILITY TO OPERATE ABILITY TO OUT LIBERALISATION OPPORTUNITIES BACKBONE INFRASTRUCTURE INFRASTRUCTURE AN INTERNATIONAL GATEWAY Telecommunicatio companies also funding a national NRENs can own and NRENs can own and ns Office ns Office backbone operate VSAT operate VSAT

6 ERITREA Public monopoly National fiber link No national backbone Academic institutions Academic institutions are Academic of planned exists are not allowed to not allowed to operate their institutions are not telecommunication own infrastructure. own network. The allowed to hold s by Eritel The incumbent incumbent operator Eritel gateway license or operator Eritel is the is the only entity that owns gateway through single entity that and operates owns communication communication infrastructure infrastructure in Eritrea 7 ETHIOPIA Public Monopoly National fiber backbone A complete fiber Academic institutions Academic institutions are No gateway of of which over 4000Km backbone over 10,000 are not allowed to not allowed to operate their licenses can be telecommunication is completed, KM is being built own infrastructure. own network. The issued to NREN s infrastructure by connection to Sudan via through vendor The incumbent incumbent operator ETC is under the current the Ethiopian fiber exists financing scheme ZTE- operator ETC is the the only entity to own and regulation Telecommunicatio China single entity to own operate infrastructure ns Corporation infrastructure (ETC) 8 KENYA Liberalized with Fiber available from Fiber backbone is being NREN is allowed to NREN is allowed to The new licensing Kenya Telkom Kenya, KDN built by Telkom Kenya, own infrastructure operate their own regime allows for having dominant and Kenya Power and KDN, and mobile infrastructure Internet backbone position in fixed Lighting Co, Ltd. operators but a and gateway line segment comprehensive plan license does not exist 9 LESOTHO Partially liberalized Limited amount of National backbone does No regulatory No regulatory provisions Gateway license is with Telecom Fiber is available from not exist provision exist to for NRENs to operate their not possible under Lesotho the the Telecom Lesotho allow NREN to own own network, except for the current monopoly fixed their own fiber VSATs regulatory regime, line operator network, NREN can LTA is studying own VSATs the possibility of gateway license for NREN and ISPs 10 MADAGASCA Partially liberalized Limited fiber capacity National backbone does NREN can ideally NREN can ideally own and The World Bank R with TELMA a exists from current not exist, the own and operate fiber operate fiber infrastructure Regional

UA 201Ver December 2008 Page 4 of 7 UA 201 Telecoms policy and regulatory environment vis a vis REN activities in the UbuntuNet region

COUNTRY EXTENT OF EXISTING FIBRE NATIONAL FIBRE ABILITY TO OWN ABILITY TO OPERATE ABILITY TO OUT LIBERALISATION OPPORTUNITIES BACKBONE INFRASTRUCTURE INFRASTRUCTURE AN INTERNATIONAL GATEWAY dominant fixed line operators –TELMA government has infrastructure when it when it is available Infrastructure operator (fixed operator), Celtel received financing from is available Programme and Organge (mobile World Bank to support promotes open operators) rollout a national access to the backbone through network. hybrid ppp arrangement 11 MALAWI Partially liberalized Fiber from Malawi Planned national NRENs can own their NRENs can operate their NREN has a with Malawi Telecommunications backbone by Malawi own network own network gateway license Telecom Limited Ltd. Telecommunications the dominant fixed Ltd. line operator

12 MOZAMBIQUE Partially liberalized TDM submarine cable Backbone is being built Policy and regulation Policy and regulation NREN has a with TDM having connecting Maputo and gradually by TDM and allow any entity to allow any entity to own gateway license dominant position Beira, EDM fiber in EDM, no full fledged own and operate a and operate a network, in fixed line and southern Mozambique national backbone plan network, including including fiber segment exists an international an international gateway, gateway, for data for data communication communication purposes purposes 13 NAMIBIA Partially liberalized Fiber is available Telecom Namibia is NRENs are not NRENs are not allowed to No provision for with Telecom through Telecom building a national allowed to own fiber self provide and operate gateway license Namibia the Namibia national backbone infrastructure except fiber networks exist under the monopoly fixed backbone for VSAT, but there current licensing line operator are opportunities with Opportunities exist with regime “next generation “next generation regulation” proposed regulation” proposed by by Namibian Namibian Communications Communications Commission) Commission) for NREN to own fiber network 14 RWANDA Partial Fiber available from National Backbone Rregulatory Regulatory framework Regulatory liberalization with Terracom Rwanda study is being finalized framework allows allows for NREN to framework allows RwandaTel the stretching 300Km, – sponsored by USTDA for NREN to lease operate a private for connection to

UA 201Ver December 2008 Page 5 of 7 UA 201 Telecoms policy and regulatory environment vis a vis REN activities in the UbuntuNet region

COUNTRY EXTENT OF EXISTING FIBRE NATIONAL FIBRE ABILITY TO OWN ABILITY TO OPERATE ABILITY TO OUT LIBERALISATION OPPORTUNITIES BACKBONE INFRASTRUCTURE INFRASTRUCTURE AN INTERNATIONAL GATEWAY main fixed line others Kisirimbi and dark fibre to build a network international operator ElectroGaz have dark private gateways fiber network and connect to international gateways 15 SWAZILAND Monopoly by Fiber cable exist Fiber cable exists NERN cannot own NERN cannot own and International Swazi Post and between Swaziland and between Swaziland and and operate their own operate their own gateway is a Telecommunicatio South Africa from South Africa, no infrastructure under infrastructure under the monopoly of SPTC ns Corporation Swazi Telecom comprehensive national the current regulatory current regulatory regime backbone plan regime 16 SOMALIA Competitive Fiber network does not No national fiber NREN can own and NRENs can operate their No international telecommunication exist backbone operate their own own infrastructure, but the gateway license is s infrastructure but infrastructure, but the fiber network does not required absence of any fiber network does exist fiber network not exist 17 SOUTH Liberalized with Fiber available from Telkom has a national NRENs cannot self NRENs can operate their No gateway AFRICA dominant player Telkom, Backbone provide and own own fiber infrastructure through provision Telkom South fiber infrastructure Network after leasing from exists under the Africa in Neotel building its own Neotel bthe SNO is the Telkom current licensing broadband and backbone building a national regime fixed lie segment backbone

18 SUDAN Partially liberalized Fiber network from Extended fiber link NRENs can not own NRENs cannot operate NRENs are not with Sudatel the Sudatel exists but not the whole fiber infrastructure their own infrastructure allowed to operate largest operator country is covered their own gateway, need to pass Sudatel 19 TANZANIA Fully liberalized There are a few Optical Tanzania national Academic institutions Academic institutions in NREN can apply Fiber Cable Optical Backbone study in principle can own principle can operate their for a gateway Infrastructure from of 2005 with advanced fiber infrastructure own infrastructure under through license TZARA, TRC, negotiation for and lease dark fiber the converged licensing TANESCO, TTCL implementation under the converged framework scattered throughout the regulatory framework country (3535 Km 1*24 core, 815 Km 1*12

UA 201Ver December 2008 Page 6 of 7 UA 201 Telecoms policy and regulatory environment vis a vis REN activities in the UbuntuNet region

COUNTRY EXTENT OF EXISTING FIBRE NATIONAL FIBRE ABILITY TO OWN ABILITY TO OPERATE ABILITY TO OUT LIBERALISATION OPPORTUNITIES BACKBONE INFRASTRUCTURE INFRASTRUCTURE AN INTERNATIONAL GATEWAY core, 202 Km 1*6, 254km 1*8) 20 UGANDA Fully liberalised Fiber is available from National backbone Network ownership NREN is permitted to Gateway through telecom operators being implemented by is permitted under the operate their own network and gateway (Uganda Telecom, government; offer of new policy and under new policy and license is permitted MTN) and power dark fibre pair made to regulatory regime regulatory regime under the new company (Uganda NREN by government, provided that there is policy and Electric Transmission but not formalised no switching of regulatory regime Company Limited - traffic for any other UETCL) group 21 ZAMBIA Partially liberalized Fiber is available from Zamtel Backbone Regulations are not NREN can own and International with Zamtel in Zamtel connects nationwide clear with regards operate VSAT with ISP gateway license is dominant position and neighbouring NREN ownership of license quite expensive Dark Fiber is owned by countries fiber infrastructure- (US$12,000,000). Zambia Electric Supply An ISP license will not Direct satellite Company (ZESCO) – ZESCO has plans to NREN can own and entitle academic access is allowed 200 Km fiber expand its network operate VSAT institutions to own and although this has & locally and to operate their fiber not been the Copperbelt Energy neighbouring countries NREN require networks, however the optimal solution Company (CEC), 24- in three phases infrastructure and ISP regulator is open to Core 520 Km fiber license to operate possibilities for leasing their own network dark fiber from ZESCO and CEC by academic institutions

22 ZIMBABWE Partially liberalized Fiber available from Partial connection, The regulation does The regulation does not Monopoly over with one fixed line powertel and fixed line Comprehensive not permit for permit for ownership and national gateway. operator (TelOne) operator national backbone does network ownership operation of fiber network NREN is not not exist by NREN by academic institutions allowed to gateway through or to have a gateway license

UA 201Ver December 2008 Page 7 of 7