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World Bank Group WORLD BANK GROUP Strategy and PPP Options for Supporting the ICT Sector and Broadband Connectivity in Somalia January 2017 WORLD BANK GROUP Strategy and PPP Options for Supporting the ICT Sector and Broadband Connectivity in Somalia (P154836) FINAL REPORT Contents List of Figures .......................................................................................................................................... 6 1 Executive summary ......................................................................................................................... 7 2 Component 1: Developing a medium-term ICT sector connectivity strategy .............................. 10 2.1 Strategic objectives for the sector ........................................................................................ 10 2.2 Current and future bandwidth demand in Somalia .............................................................. 13 2.2.1 International bandwidth ............................................................................................... 13 2.2.2 Transit bandwidth to Ethiopia ...................................................................................... 15 2.2.3 Domestic bandwidth ..................................................................................................... 17 2.3 Regulatory environment and necessary reforms ................................................................. 18 2.3.1 Gaps in Somali legal and regulatory framework ........................................................... 18 2.3.2 Federal Government of Somalia: The draft National Communications Act ................ 19 2.3.3 FGS: Relative roles of Ministry and regulator ............................................................... 19 2.3.4 FGS: Independence of the regulator ............................................................................. 21 2.3.5 Somaliland: Communications Act and Regulator ......................................................... 21 2.3.6 Public consultation ........................................................................................................ 21 2.4 Opportunities and risks for mutualisation of ICT infrastructure in Somalia ......................... 22 2.4.1 Opportunities ................................................................................................................ 22 2.4.2 Risks............................................................................................................................... 22 2.5 Infrastructure development options, coordination with non-ICT infrastructure ................. 23 2.5.1 Major population centres ............................................................................................. 23 2.5.2 Universities.................................................................................................................... 26 2.5.3 Underlying infrastructure.............................................................................................. 26 2.5.4 Coordination with road development .......................................................................... 27 2.5.5 Security ......................................................................................................................... 29 2.5.6 Non-terrestrial and wireless options ............................................................................ 32 2.5.7 Redundancy................................................................................................................... 36 2.6 Medium-term budgetary requirements ............................................................................... 39 2.7 Social and environmental impact of infrastructure development and mitigation strategies .. .............................................................................................................................................. 40 2.7.1 Anticipated impacts of the national backbone project ................................................ 41 2.7.2 Suggested mitigation strategies .................................................................................... 41 2.7.3 Guideline ....................................................................................................................... 42 3 Component 2: Regulatory, commercial and technical issues ....................................................... 43 3.1 Proposed licensing framework for facilities-based telecom operators ................................ 43 3.1.1 Somaliland: Existing monoply license for Somcable in Somaliland .............................. 43 3.1.2 FGS: Analysis of and recommendations for the national licensing framework for communications generally ............................................................................................................ 43 3.1.3 FGS: Application of the licensing framework to deployment of the national backbone . ....................................................................................................................................... 44 3.1.4 FGS: Recommended amendment to legislation prior to passage ............................... 44 3.1.5 FGS: Licenses required under the Bill .......................................................................... 44 3.1.6 FGS: Distinction between individual and class licenses ............................................... 45 3.2 Right of way issues ................................................................................................................ 50 3.2.1 Limited control .............................................................................................................. 50 3.2.2 Management and coordination .................................................................................... 51 3.3 Governance arrangements for cooperation between the private and public sector ........... 51 3.3.1 Reasons for Establishing PPPs ....................................................................................... 51 3.3.2 Role of public sector: .................................................................................................... 52 3.3.3 PPP Units ....................................................................................................................... 52 3.4 International connectivity issues .......................................................................................... 53 3.4.1 Existing international fibre entry points ....................................................................... 53 3.4.2 Ethiopian fibre optic network ....................................................................................... 54 3.4.3 Horn Of Africa Corridors Program (formerly Berbera Corridor) ................................... 54 3.4.4 Satellite ......................................................................................................................... 55 3.4.5 Planned additional international submarine fibre optic cables .................................... 56 3.4.6 Other existing international submarine cables ............................................................. 57 3.4.7 Summary of market conditions ..................................................................................... 57 3.5 Technical connectivity options, including rural areas ........................................................... 58 3.5.1 Metropolitan fibre ........................................................................................................ 58 3.5.2 Microwave .................................................................................................................... 59 3.5.3 Access networks ............................................................................................................ 60 4 Component 3: Capacity-building .................................................................................................. 63 4.1 Resources and skills assessment at the Ministry and future regulator ................................ 63 4.1.1 Method.......................................................................................................................... 63 4.1.2 Ministry of Post and Telecommunication ..................................................................... 63 4.1.3 Federal States & Regions .............................................................................................. 65 4.1.4 Findings ......................................................................................................................... 67 4.1.5 Training plans and coordination ................................................................................... 68 4.2 Training plan for key staff and further capacity building options outside of the scope of this project .............................................................................................................................................. 68 4.3 Summary of training and knowledge transfer delivered during the assignment ................. 69 5 Component 4: PPP options ........................................................................................................... 70 5.1 PPP institutional design and capacity requirements ............................................................ 70 5.1.1 Private sector functions ................................................................................................ 71 5.1.2 Selection of private sector partners.............................................................................. 71 5.1.3 Public sector participation ...........................................................................................
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