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Thuraya Coverage Area Session III: Case Studies of Telecommunication Market Liberalisation Tuesday 22, January 2002 By: Mohammad Omran Chairman Thuraya Satellite Telecommunications Company Abu Dhabi, UAE 22-01-2002 THURAYA Proprietary Information 1 Our vision is to be the market leader in our coverage area, providing valuable and affordable telecom solutions to our customers. Our strength comes from our experience in Telecom technology and our customer focused strategy. Our plan is to achieve this through product excellence, continuous innovation and quality customer service. 22-01-2002 THURAYA Proprietary Information 2 Thuraya Coverage Area n e y d Finland Iceland a e r w w o S N Estonia L a tv ia Denmark Lithuania United Kingdom Belarus Ireland Netherlands n y m a Poland B e lg iu m e r G C z e R e c h Luxembourg p u b li k ia Ukraine c lo va Kazakhstan d s t ria S M la n A u a ry o tz e r n g ld France w i H u a Russian S v Sloven iaC ro a tia Romania ia Federation It a C B o o f ia ro H e sn i v l rz a & F R la y a t eg . os ia u g G Y a B u lga ria e U o n i o rg zb France c e d ia e Kyrgyzstan M a Turkey kis Albania Armenia Azerbaijan ta Spain Ita ly T u n Spain r k m Greece Turkey e n i Ta jik is t a n Portugal s Ita ly tan China G r e e c e Syrian Arab Rep. Cyprus Lebanon Ir aq Afghanistan Tunisia Iran n Jord an a o t c is c k o Algeria Kuwait a N Bhutan r P e p a o Libyan Arab Jamahiriya l M Egypt Bahrain India Qatar ite d Saudi Arabia U n b Bangladesh r a e s A ira t E m India n a m M auritania O Mali Niger Chad Er n S it m e e n e re Y e g a l Sudan a Burkina Faso D jib ou ti Guinea Gambia a Somalia o Nigeria n Benin Cote g a n Ethiopia S ri Lanka a c o n fri T A L h l i o ra Guinea b d’Ivoire o n t c e G e li ri r C u b Bissau a e R e p m a S i e r r a C L e o n e 22-01-2002 THURAYA Proprietary Information 3 GSM Coverage: Middle East & Africa 22-01-2002 THURAYA Proprietary Information 4 GSM Coverage: Europe 22-01-2002 THURAYA Proprietary Information 5 Thuraya Integrates Terrestrial (GSM) & Satellite Services Thuraya handheld terminal features Value Added Services Dual mode (Satellite / GSM) handheld terminals Short Message Service (SMS) Similar in size, weight and features to GSM phone Voice mail Location determination capability using GPS Operator assisted services Voice quality comparable to GSM Interactive Voice Response (IVR) Services Prepaid Services Teleservices Hot billing Voice telephony Emergency services Supplementary Services Group 3 fax Call forwarding, barring, waiting, hold SMS beam broadcast Calling Line Identification Presentation (CLIP) Conference calling Bearer Services Asynchronous Data Services (2.4 – 9.6 kbps) 22-01-2002 THURAYA Proprietary Information 6 ITU Filing Process-1995 Modifying ITU Radio Regulations-1997 Establishment of Multilateral Coordination Process-1997 Grant of L-band Spectrum-1999 Start Licensing Process-1999 Handsets Type Approval-2000 ITU GMPCS Arrangements-2000 2001 July 15 Start ofService Common Air Interface Standardization-2000 United Nation Registration-2001 22-01-2002 THURAYA Proprietary Information 7 Classification of Regulations Self-regulation by the state-owned monopoly operator Ministry of the government which is responsible for policy, and in some cases retains overall responsibility for the dominant operator An independent regulatory function which either reports to a government Ministry, such as that in UK, or an independent commission, such as in Jordan and Egypt 22-01-2002 THURAYA Proprietary Information 8 Example 1: Liberal Market-Europe Thuraya obtained 3 important decisions in Europe on Free Circulation and Use of Thuraya Mobile User Terminals in CEPT member countries. Exemption from Individual Licensing of Thuraya Mobile User Terminals in CEPT Member countries. In addition to the milestone compliance. Examples for liberal markets are UK, Denmark, Netherland, Ireland, Germany, etc. In many cases no license fees in many European countries. 22-01-2002 THURAYA Proprietary Information 9 Example 2: Partially Liberal Market-India Subcontinent Stringent requirements to access the market: -Establishment of a gateway -High revenue sharing -High entry fees 22-01-2002 THURAYA Proprietary Information 10 Example 3: Market With Regulatory Commissions- North African Countries Clear regulatory process with reasonable fees 22-01-2002 THURAYA Proprietary Information 11 The Need For Liberal Market (Regulation) To protect public interest To allow open and fair To license service providers competition To regulate service providers To control and use frequencies To set technical standards To monitor quality of service and initiate corrective action To set financial, administrative and technical terms for interconnection To control the type approval of customers premise equipment and its connection to the public network To consider complaints from users and take corrective action if necessary 22-01-2002 THURAYA Proprietary Information 12 Thuraya Service Providers Relation Examination of Thuraya market (Monopoly, Ministry, Commission, etc) Selecting competent service provider that can obtain the license, financially strong and have strong distribution channels We train and support the service providers in marketing Thuraya services and monitor competition 22-01-2002 THURAYA Proprietary Information 13 Impact on Telecom business due to Change in Policies A majority of ITU Member countries have initiated telecom sector reforms that have established telecom regulatory bodies, opened up huge untapped markets, introduced simplified regulatory / licensing framework, etc The WTO regime has introduced new opportunities for foreign companies 22-01-2002 THURAYA Proprietary Information 14 Changes in Polices that will ensure better Market Access Lighter access regulatory procedures(General license, blanket approval) Regional Regulatory Authorization (One Stop Shopping, Common Application Form, etc) as against National Regulatory Authorization Mutual recognition arrangements and Free circulation of terminals (GMPCS MoU, ERC Decisions, WTO, CITEL and APT MRA’s, etc) Different treatment for satellite operators that have regional or global coverage as against terrestrial networks that have limited national coverage Mutual recognition of Licenses License fee to recover only Administrative costs associated with grant of License Public availability of licensing criteria and procedures Effective implementation of fair and transparent regulatory framework 22-01-2002 THURAYA Proprietary Information 15 Thuraya’s perspective on competition as a satellite operator Focus on regional market that lacks basic telecom infra-structure as against global market Closer relationship with local service providers for marketing, billing and customer care More user friendly terminals (smaller and compact in size, multi mode options, multi functional (GPS, Higher data rates, etc)) Reduction in end-user tariff as compared to earlier operators in view of economic situation and affordability of the target market Customized solutions for different market segments (payphones, fleet management, maritime applications, etc) Increased cooperation with national PTT’s for implementation of Universal Access and Rural Development 22-01-2002 THURAYA Proprietary Information 16 Conclusion We help in developing telecommunication polices in ITU We encourage the regulators to translate these polices into legislation/decrees We encourage the construction of regulatory organisations to establish regulatory procedures to protect both the public and governments and to allow competition 22-01-2002 THURAYA Proprietary Information 17 Thank You… www.thuraya.com 22-01-2002 THURAYA Proprietary Information 18.
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