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Consumer Protection in the Telecommunication Markets in the Post Liberalization Era – the Case of Tanzania

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Consumer Protection in the Telecommunication Markets in the Post Liberalization Era – the Case of Tanzania CONSUMER PROTECTION IN THE TELECOMMUNICATION MARKETS IN THE POST LIBERALIZATION ERA – THE CASE OF TANZANIA MARCH 2017 HILDA MWAKATUMBULA PhD Thesis 4014S0181 GRADUATE SCHOOL OF ASIA-PACIFIC STUDIES, WASEDA UNIVERSITY DEDICATION This work is dedicated to my darling husband Dr. Goodiel Moshi and my beloved children Jadon and Joan i ACKNOWLEDGEMENT I would like to extend my gratitude to my Chief Supervisor, Professor Hitoshi Mitomo, for offering me the opportunity to study under his leadership. His tireless support and leadership throughout the PhD Program have led this work to fruition. Under his leadership, I have learned to perceive social problems as an opportunity for improvement. Furthermore, I am thankful for every encouraging word from him, especially at times when the road ahead seemed dark. Moreover, I would like to extend my gratitude to my deputy supervisor Professor Yasushi Katsuma and other member of my examination committee, Professor Kato Atsushi and Professor Akihiro Nakamura. Thank you very much for taking the time to read the draft of my thesis, and to offer your recommendations and input. Looking at this thesis, your input has made the difference. This thesis was also shaped during seminar presentations, where most of my colleagues offered their inputs for improvement. A number of my colleagues used their precious time to go through my work and help me shape it accordingly. I would not be able to mention every one of you, but I am appreciative to each one. I would not have been able to write this thesis without the great support of my darling husband and children, and their sacrifices, patience, and understanding. I am thankful to my husband for sacrificing to live far away from his family for almost two years, to give me the chance to finalize my PhD studies. Furthermore, living in a foreign country with two children and studying was sometimes very challenging, but I am indebted to my family supporters Mr and Mrs Tajiri, for taking care of children in my absence. They made me a home in Japan. I am also grateful to my beloved parents Jacob Mwakatumbula and Sekela Mwakatumbula for their continuous support and prayers. Their moral and financial support throughout my academic journey will forever be appreciated. ii This journey would not have been completed without the two-year scholarship the government of Japan extended to me through the Ministry of Education, Culture, Sports, Science, and Technology (MEXT). In the same vein, I am appreciative to the Waseda University for Young Doctoral scholarship. These scholarships have enabled me to live financially relax and offered me supplementary time to concentrate on my studies. Furthermore, I feel indebted to GSAPS office staff for their continuous support and advice throughout my studies. Last, but not least, I would like to extend my heartfelt gratitude to my heavenly Father and Almighty GOD. Through it all, His mighty hand anchored and strengthened me. To Him and Him alone the praise and honor is due now and forevermore. iii TABLE OF CONTENTS DEDICATION ............................................................................................................................................... i ACKNOWLEDGEMENT ............................................................................................................................ ii TABLE OF CONTENTS ............................................................................................................................. iv LIST OF TABLES ..................................................................................................................................... viii LIST OF FIGURES ..................................................................................................................................... ix ABBREVIATIONS ...................................................................................................................................... x EXECUTIVE SUMMARY ....................................................................................................................... xiv CHAPTER 1 : INTRODUCTION ................................................................................................................ 1 1.1 Background ................................................................................................................................... 1 1.2 Problem Statement ........................................................................................................................ 3 1.2.1 Ideal Situation ....................................................................................................................... 3 1.2.2 Background of Consumer Protection .................................................................................... 5 1.2.3 Challenges Facing Consumers in the Markets ...................................................................... 6 1.3 Purpose .......................................................................................................................................... 7 1.4 Research Questions ....................................................................................................................... 9 1.5 Contribution ................................................................................................................................ 11 1.5.1 Academic Contribution ....................................................................................................... 11 1.5.2 Social Contribution ............................................................................................................. 11 1.6 Thesis Overview ......................................................................................................................... 12 1.7 Summary ..................................................................................................................................... 14 CHAPTER 2 THE OVERVIEW OF THE TANZANIA TELECOMMUNICATIONS MARKET .......... 15 2.1 Introduction ................................................................................................................................. 15 2.2 Prior to the Liberalization Era ..................................................................................................... 15 2.2.1 History of Tanzania ............................................................................................................. 15 2.2.2 History of the telecommunication in Tanzania ................................................................... 16 2.2.3 Policies ................................................................................................................................ 16 2.3 The Liberalization-process Era ................................................................................................... 18 2.3.1 Introduction ......................................................................................................................... 18 2.3.2 The Regulator: Tanzania Communication Commission (TCC) .......................................... 18 2.3.3 Policy and regulations ................................................................................................................ 19 iv 2.3.4 Market Structure during the Liberalization Process ............................................................ 23 2.4 Post-liberalization Era ....................................................................................................................... 30 2.4.1 Overview of the era .................................................................................................................... 30 2.4.2 Legislations and regulations ....................................................................................................... 30 2.4.3 Major Operators ......................................................................................................................... 34 2.5 Consumer Protection ......................................................................................................................... 38 2.5.1 Introduction ................................................................................................................................ 38 2.5.2 Consumer Challenges ................................................................................................................ 39 2.6 Conclusion ........................................................................................................................................ 40 CHAPTER 3 CONSUMER PROTECTION LITERATURE AND THE THEORETICAL FRAMEWORK .................................................................................................................................................................... 42 3.1 Introduction to Consumer Protection .......................................................................................... 42 3.1.1 Definition of Consumer Protection ..................................................................................... 42 3.1.2 Organizations responsible for consumer protection ............................................................ 43 3.1.3 Ways to achieve consumer protection................................................................................. 48 3.2 International Organizations and Consumer Protection ............................................................... 51 3.2.1 UNCTAD and Consumer Protection .................................................................................. 51 3.2.2 WTO and Consumer Protection .........................................................................................
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