benin country profile alt 1.qxp 2008/10/03 12:54 PM Page 1 2007 Benin Telecommunications Sector Performance Review a supply side analysis of policy outcomes For further information see http://link.wits.ac.za Tel:+27 11 7173913 Fax:+27 11 7173910 LINK Centre Graduate School of Public Development Management AUGUSTIN F CHABOSSOU Witwatersrand University Johannesburg Box 601, Wits, 2050 http://link.wits.ac.za This Policy Research Paper Series is made possible through the support of the International Development Research Centre (IDRC) 02.beninENGLISHquark5 FINAL revised 1808-2.qxd 2008/08/19 10:41 AM Page 1 2007 BENIN TELECOMMUNICATIONS SECTOR PERFORMANCE REVIEW 2007 a supply side analysis of policy outcomes By Augustin F Chabossou1 1 Researcher at The Centre for Development Studies, Training and Research (CEFRED) of the University of Abomey-Calavi (UAC) 02.beninENGLISHquark5 FINAL revised 1808-2.qxd 2008/08/19 10:41 AM Page 2 Benin SERIES EDITOR: Alison Gillwald Other country studies in this series are available on www.researchICTafrica.com. ! Botswana: Sebusang Sebusang, MP Makepe and TD Botlhole ! Burkina Faso: Pam Zahonogo ! Cameroon: Olivier Nana Nzèpa and Robertine Tankeu ! Côte d'Ivoire: Arsene Kouadio ! Ethiopia: Lishan Adam ! Ghana: Godfred Frempong ! Kenya: Tim Waema ! Mozambique: Americo Muchanga and Francisco Mabila ! Namibia: Christoph Stork and Mariama Deen-Swarray ! Nigeria: Ike Mowete ! South Africa: Steve Esselaar and Alison Gillwald ! Tanzania: Ray Mfungayma and Haji Semboja ! Uganda: FF Tusubira, Irene Kaggwa-Sewankambo, Apolo Kyeyune, Ali Ndiwalana, Annrita Ssemboga ! Zambia: Sikaaba Malavu Proof reading: Beki Nkala For further information contact the RIA! coordinator Beki Nkala on [email protected] or go to www.researchICTafrica.net ACKNOWLEDGEMENTS This study has been made possible thanks to the support of the Independent Development Research Centre, (IDRC), Ottawa, Canada. We hereby express our gratitude to them. Senior Programme Manager: Heloise Emdon, [email protected] South Africa The author would like to thank RIA! members Olivier Nana Nzépa and Lishan Adam, whose comments helped in improving the quality of this report. He also thanks the members of The Centre for Development Studies, Training and Research (CEFRED) who contributed to the completion of this report. They include Nicaise Sovidé, Victor Adohinzin, Sosthène Gnassounou, Yves Soglo and Charlemagne Igué. Finally the author expresses thanks to all those who answered the ITC regulatory environment (TRE) assessment questionnaire as well as all those who participated in writing the report. However, he accepts full responsi- bility for any shortcoming. Augustin Chabossou Centre For Development Studies, Training and Research (CEFRED) University of Abomey Calavi 04 PO Box 966 Cotonou Republic of Benin Telephone +229 979 823 22 [email protected] 2 2007 Telecommunications Sector Performance Review 02.beninENGLISHquark5 FINAL revised 1808-2.qxd 2008/08/19 10:41 AM Page 3 Benin RESEARCH ICT AFRICA! (www.researchICTafrica.net) Research ICT Africa! (RIA!) fills a strategic gap gap in the development of a sustainable information society and network economy by building the ICT policy and regulatory research capacity needed to inform effective ICT governance in Africa. The establishment of the Research ICT Africa! network emanates from the growing demand for data and analysis necessary for appropriate but visionary policy required to catapult the continent into the infor- mation age. Through network development RIA! has started to build an African knowledge base in sup- port of ICT policy and regulatory design processes, and to monitoring and review policy and regulatory developments on the continent. The research, arising from a public interest agenda, is made available in the public domain and individ- uals and entities from the public and private sector and civil society are encouraged to use it for teach- ing, further research or to enable them to participate more effectively in national, regional and global ICT policy formulation and governance. RIA! seeks to extend its activities through national, regional, continental and global partnerships. It is part of the research and training collaborative LIRNE (www.lirne.net) and peers with other networks in the South, specifically LIRNEasia (www.lirneasia.net) and DIRSI (www.dirsi.net) in Latin America. The network currently consists of nodal members from 17 African institutions: Bénin – CEFRED, Université d'Abomey Calavi Botswana – University of Botswana Burkina Faso – CEDRES, University of Ouagadougou Cameroon – University of Yaounde II Côte d'Ivoire – CIRES, l'Université Nationale de Côte d'Ivoire Ethiopia – University of Addis Ababa Ghana – STEPRI of CSIR Kenya – University of Nairobi Mozambique – Universidade Eduardo Mondlane Namibia – Namibia Economic and Policy Research Unit Nigeria – University of Lagos Rwanda – KIST (Kigali Institute of Science, Technology and Management Senegal – CRES South Africa – LINK Centre, University of Witwatersrand Tanzania – Tanzania Communications Regulatory Authority Uganda – University of Makerere Zambia – University of Zambia East Africa Regional Manager: Dr Lishan Adam West Africa Regional Manager: Dr Olivier Nana Nzépa 2007 Telecommunications Sector Performance Review 3 02.beninENGLISHquark5 FINAL revised 1808-2.qxd 2008/08/19 10:41 AM Page 4 Benin ABBREVIATIONS AND ACRONYMS ADSL Asymmetric Digital Subscriber Line AGeNTIC New Information and Communication Technologies Management Agency ARPT Post and Telecommunications Regulatory Agency BCEAO Central Bank of the West African States BRL Local Radio Loop CBI Benin Informatics Centre (CEFRED) Centre For Economic Development Studies, Training And Research DPNTIC New Information and Communication Technologies Promotion Department ERT Telecommunications Regulatory Environment DPPT Posts and Telecommunications Policy Department FAI Internet Access Provider GATS General Agreement on Trade and Service GSM Global System for Mobile communications HAAC Audio-visual and Communications High Authority INSAE National Institute of Statistics and Economic Analysis MDCCNT/PR Ministry Delegate at the Presidency of the Republic in charge of New Information and Communication Technologies MDEF Ministry of Development, Economy and Finance NICT New Information and Communication Technologies WTO World Trade Organisation GDP Gross Domestic Product PIPAP Main Public Administrations Interconnection Project UNDP United Nations Development Programme RIA! Research ICT Africa STC Switched Telephone Network CET Common External Tariff ICT New Information and Communication Technologies WAEMU West African Economic and Monetary Union VSAT Very Small Aperture Terminal (micro earth station) 4 2007 Telecommunications Sector Performance Review 02.beninENGLISHquark5 FINAL revised 1808-2.qxd 2008/08/19 10:41 AM Page 5 Benin Table of contents Summary 7 Introduction 8 Policy framework and the ICT regulatory environment 12 Telecommunications market structure 18 Access to Information and Communication Technologies 27 Pricing 31 ICT use within the administration 35 Assessment of the telecommunications regulatory environment 38 Conclusion and recommendations 43 References 45 Appendices 46 2007 Telecommunications Sector Performance Review 5 02.beninENGLISHquark5 FINAL revised 1808-2.qxd 2008/08/19 10:41 AM Page 6 Benin 6 2007 Telecommunications Sector Performance Review 02.beninENGLISHquark5 FINAL revised 1808-2.qxd 2008/08/19 10:41 AM Page 7 Benin Benin Summary The importance of Information and Communication Technologies (ICT) in socio-economic development cannot be overemphasised. In fact, ICTs have proved to be an indispensable factor and the nerve centre of an economy, with a direct multiplier effect on all its other sectors. All development sectors and major actors (public, private and civil society in general) in rural and urban areas in Benin need to share information related to information and communication tech- nologies. In Benin, conventional telephony is still a public monopoly entrusted to the incumbent operator, Benin Telecom SA. This monopoly has not been beneficial to the growth of the sector which is characterised by a low rate of telephone penetration, a slow development of networks and very poor trunk telephone links. The ICT sector reforms undertaken in the ’90s opened some branches of activity (in particular the GSM mobile telephone and the Internet) to competition. The opening of the GSM mobile telephone segment to competition in the year 2000 enabled four operators to move into the business. These included three private operators (Areeba, Moov, Bell Benin Communica- tions) and one public operator (Libercom), a subsidiary of the incumbent operator in the sector (Bénin Télécoms SA). The GSM sector witnessed a tremendous boost as demonstrated by the rapid growth of the number of subscribers to its various networks. This rapid growth of the GSM sector was not matched by appropriate measures to address the problem of geographical coverage and there- fore contribute to universal service. The government intervened through the regulatory authority of the sector, which resides in the Ministry Delegate at the Presidency of the Republic in charge of the New Information and Communication Technologies, to enforce univer- sal service objectives. Following their specifications, operators must deploy their networks in compliance with a coverage plan that would make it possible to guarantee 85% coverage within six years of their existence. Today, the mobile