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The correlation between the performance of the national economy and the order of privatization versus liberalization goes a long way in explaining why most of Latin America pursued privatization first, while most countries in the Asia-Pacific region have liberalized segments of their markets while maintaining the incumbent carrier as a state-owned entity.
This meant that the relevant ministry was in charge of macro-regulation for the sector (maintaining a monopoly market structure through which it could implement policy) with the monopoly operator responsible for micro-regulation (monitoring quality of service, dealing with consumer complaints, tariff issues, and so on).
Among the regulatory agencies that have been separated from the incumbent carrier, it is possible to identify two main types: the agency with no (or strictly limited) policy oversight from the relevant ministry; and the agency, with a given mandate to regulate the sector, but with oversight by the relevant ministry which retains the authority to issue general directives and/or control funding.
In Uganda, for instance, the ministry remains responsible for tariff approval and the establishment of licence fees; in Namibia, the operator remains responsible for numbering, tariff proposal and approval, and for interconnection rates.
Each of the councillors is appointed by the South African President on the advice of the Parliamentary committees on communications, with the law requiring that each commissioner possess certain qualifications, thus acting to insulate the process from political interference.
Public debate concerning convergence tends to suggest that creation of a single regulator for all communication and information services would be beneficial, but such a move is being contemplated in only a few countries.
However, the emphasis placed on each of these areas depends upon the national situation of reform and the policy guidelines set by the respective policy making body.
New directives in the lead up to the 1998 liberalization date, required all operators which have more than 25 per cent market share to: interconnect with other operators on a non-discriminatory basis; publish interconnect price lists; and set cost-oriented interconnection prices.
One noteworthy development is that, while it is the developed countries that have focused in a substantially greater fashion upon the provision of broadband services, the definition of universal service remains focused upon traditional basic telephony.
5 Spectrum management
Spectrum management has become an increasingly important regulatory function for two main reasons: radio frequencies remain a limited resource; and mobile roaming and new technologies (such as Wireless Local Loop [WLL]) benefit from regional, or standardized, frequency allocation.
Just as there are many diverse paths towards telecommunication development, so too there are many paths towards the establishment of an appropriate regulatory framework.
recommends further
that governments and administrations take into account the guidelines set out in the attached annexes 1, 2, 3 and 4 on general considerations, telecommunication sector reform, the regulatory body and regulating spectrum management, when establishing, implementing and reviewing their national telecommunication policies and regulations.
There are different approaches to financing universal service obligations, some of which are:
• the telecommunication operator must provide service to rural and remote areas as a condition of the licence;
• new competitors may be required to pay certain charges to interconnect with the dominant telecommunication operator, with some or all of the charges being used to provide service to rural areas;
• a telecommunication operator may have the choice of paying certain charges into a universal service fund or providing the service directly itself;
• when the incumbent telecommunication operator cannot or does not want to provide service to rural or underserved areas, the opportunity will be given to other service providers to attain universal access/service goals;
• a transparent government subsidy financed from its tax revenues that helps pay for service to underserved and high-cost areas, including rural and remote areas.
This strategic planning exercise, which should be the result of a public debate, should address issues such as:
1) a set of policy objectives and plans related to greater commercialization of national and international telecommunication services, to form an integral part of a policy for liberalization of the sector, with specific objectives;
2) a set of policies, objectives, and related plans to divide regulatory responsibility between the prime minister/minister/ministry/government and the regulatory body for functions such as rule-making and enforcement, licensing and management of scarce resources, and for areas of jurisdiction such as application and oversight of rules governing interconnection and tariff approval;
3) publicize the government telecommunication policy paper which incorporates some of the above plans and objectives, and includes a description of the relationship between the government and the regulator.
Structural reforms

Despite the fact that service providers can choose from a broad range of approaches to ensure that they are adequately financed as they move into the 21st century,
To encourage new service providers, with new sources of capital, to enter the telecommunication market, there are a number of different actions that may be taken to restructure the sector, such as:
a) dividing an existing nationwide monopoly into separate entities designated by geographic service regions or offering different services;
b) providing by law that new services (or new technologies) will be outside the scope of the existing monopoly, enabling new operators to provide these services on a competitive basis;
c) authorizing the existing network operator to subcontract certain areas or services to third-party service providers; and
d) entering into build-operate-transfer (BOT) arrangements (or an equivalent) with an experienced third-party operator, ensuring that that expert support is available to train personnel and to supervise the start-up operations.
restructuring telecommunication operations as an independent state enterprise that is administratively and financially autonomous from the central government;
• internally reorganizing the enterprise in ways that are suited for running it as a business;
• reorganizing the telecommunication enterprise under private company law;
• devising a strategy for privatization or sale of shares including decisions on controlling interest, employee stock ownership, tranching of stock sales, and residual state ownership, as well as changing the company's capital structure to enable implementation of this strategy;
• executing the sale.
The regulatory body may take a variety of forms, ranging from an office within a larger executive branch entity (or ministry) to a separate agency whose actions are reviewable only by the judicial system:

a) a regulatory department within the ministry separate from the policy-making and the ownership functions;
b) a separate regulatory body reporting to the ministry or prime minister's office;
c) an independent commission or regulatory body, where the term "independent" refers to its reporting procedure and its funding;
d) no telecommunication regulatory body - telecommunications are regulated generally under anti-trust, competition and consumer rules and regulations, etc.
Most natural resources should be distributed among countries by consensus based on existing and expected future usage;
• contemporary scarce resources, like calling numbers and broadcasting sites, require national, regional and global coordination;
• technology dependent bottlenecks, like shortage of conduits and cable capacity, should be handled under the principle of open network obligation.
In general, there are six approaches that a regulator can take to translate its vision of universal access/service into practical regulatory policy:
1) broad regulatory oversight;
2) detailed direction by the regulator of universal access/service activities;
3) broad regulatory oversight without payment of cross-subsidy by new operators;
4) broad regulatory oversight with bundled cross-subsidy mechanisms;
5) detailed direction by the regulator of universal access/service activities, with explicit but bundled funding mechanisms;
6) broad regulatory oversight with unbundled funding mechanisms.
Regulation regarding the use of the spectrum should be targeted at:
• giving effect to international obligations;
• defining and implementing overall spectrum strategy;
• promoting competition and innovation; and
• ensuring fair and open access to spectrum for a diversity of users, including small businesses, essential services, and cultural, scientific and social uses.
Competitive safeguards

Competitive safeguards are necessary to ensure that dominant or major suppliers do not engage in anti-competitive cross-subsidization, do not use information in an anti-competitive manner, and do not withhold essential technical and commercial information.
3) National coordination of frequency allocations

A table of national frequency allocations should be established, in accordance with national priorities, to contain the detailed subdivision of frequency bands for particular categories of services, for example, emergency, government, public and private-sector services.
2) Identify the most common approaches for interconnection pricing, cost accounting, unbundling, describing the advantages and disadvantages of each approach thereby taking into account the guiding principles for interconnection pricing, such as cost-orientation[, long-run incremental costing] and transparency.
7 Target Audience for the Output
a) Indicate expected types of target audience, by noting all relevant points on the matrix which follows

Developed Countries Developing Countries LDC's Telecom Policy Makers Interested
Highly interested because of lack of experience Highly interested because of lack of experience Telecom Regulators Interested and experienced with different models Highly interested and some countries have immediate need for information High interest but may need specific models Service Providers(Operators) New entrants, regardless of size, extremely interested.
Whether the specific goal is to provide telecommunication access to a particular portion of the population, to achieve certain levels of telecommunication penetration, or to ensure that specific services are provided to a particular group, all telecommunication policy makers must address the universal access/service needs of their countries.
4 Required Timing of Expected Output

Because the information gathered for the study question will be useful for countries introducing or reassessing their universal access/service programmes, it should be disseminated as early as possible and without waiting for a final work product of the question.
9 Coordination Requirements of the Study

Because the issue of universal access/service is closely related to other issues being studied by the ITU, a great amount of coordination will be required within the ITU-D Study Groups as well as the Study Groups from other ITU sectors.
4) Describe key regulatory issues that a regulatory body may address, such as the provision of service, interconnection, universal access/service, tariffing, quality of service, standardization/type approval, numbering, and competitive safeguards (this may include frequency allocation and assignment as well as broadcasting, however some countries create different bodies for the later issues).
by noting all relevant points on the matrix which follows

Developed Countries Developing Countries LDC's Telecom Policy Makers Interested Highly interested Highly interested Telecom Regulators Interested and experienced with different models Highly interested and some countries have implemented innovative approaches Highly interested Service Providers(Operators) Small operators interestedLarge operators cautious and usually beneficiary of status quo Private sector, particularly new technologies, highly interested but government monopolies less so Government monopolies cautious and usually beneficiary of status quo Manufacturers Moderate interest Moderate interest Moderate interest
b) Target Audience - Who specifically will use the output

Based on the foregoing evaluation matrix, a broad range of telecom policy makers, regulators, and service providers from LDC's and developing countries will all be highly interested in the results of this question.
Please indicate any changes:

Policy Maker:____________________________
Address:_________________________________
City:____________________________________
Tel:_____________________________________
Fax:_____________________________________
Email:___________________________________
Web site:_________________________________
Regulator:_______________________________
Address:_________________________________
City:____________________________________
Tel:_____________________________________
Fax:_____________________________________
Email:___________________________________
Web site:_________________________________

If there is more than one policy-maker and/or regulator, please indicate name and address below:

Policy Maker:____________________________
Address:_________________________________
City:____________________________________
Tel:_____________________________________
Fax:_____________________________________
Email:___________________________________
Web site:_________________________________
Regulator:_______________________________
Address:_________________________________
City:____________________________________
Tel:_____________________________________
Fax:_____________________________________
Email:___________________________________
Web site:_________________________________

SECTION I - LEGISLATIVE FRAMEWORK

1) What laws, decrees, legal instruments, or regulations govern the telecommunication sector in your country?
□ Yes □ No
If Yes,
Indicate total number of members________
(Number of female members ________)
The Members are employed: □ full time □ part time
If No,
Identify the position of the head of the Regulatory Authority (i.
□ Accounting rates, frequency _________________, date last submitted (month/year)___________
□ Interconnection rates, frequency _____________, date last submitted (month/year)____________
Indicate most recent decisions________________________________________________
□ Financial Reports and Accounts, frequency ________, date last submitted (month/year)________
□ Tariff tables, frequency ______________________, date last submitted (month/year) _________
Indicate most recent decisions________________________________________________
□ Service performance indicators (e.
(Please attach copies of any such document(s))
□ legislation
□ licenses
□ regulatory statements
□ directives
□ other_______________________________________________

Interconnection regime generally

13) Does the regulatory framework for interconnection apply to:
□ fixed local interconnection,
□ fixed long distance interconnection,
□ fixed international service interconnection
□ mobile service interconnection
□ other, please explain any variations ______________________________________________

14) Has your country established specific criteria which fixed telecommunication operators must meet in order to receive authorization?
□ local loop (local access)
□ local and tandem switching capability
□ operator services
□ trunk lines/transmission

20) Does the interconnection regime require that operators offer telecommunication services at wholesale prices for resale by new entrants?

□ Yes □ No
If Yes,
Please describe your country's experience________________________________________

30) If access deficits are funded through above-cost long distance and/or international calling charges, is there any mechanism to require competitive carriers providing long distance or international service to share the cost of providing local exchange service?
License duration
(in years) Yes No M TRA PTO O (please specify) Yes No Local services
Domestic long distance International long distance Data
Telex
Leased lines
Mobile (cellular) Paging
Cable Television Fixed satellite (FSS) Mobile satellite (MSS) GMPCS (FSS/MSS) Internet Service providers * Note: M= Ministry, TRA= Telecommunication Regulatory Authority, PTO= Operator, O= other

38) Briefly outline the procedures used by your country to license telecommunications operators.
□ Ombudsman
□ Telecommunication Consumers Association
□ Other, specify___________________________________________________________

Section IV - SECTOR STRUCTURE

Status of the incumbent operator

51) Have the postal and telecommunication operations been separated?
The anti-competitive practices referred include in particular: engaging in anti-competitive cross-subsidization;
using information obtained from competitors with anti-competitive results; and not making available to other services suppliers on a timely basis technical information about essential facilities and commercially relevant information which are necessary for them to provide services.
□ Yes □ No
If Yes,
Please indicate which one(s):
□ G7 Global Inventory Project
□ African Information Society Initiative (AISI)
□ Asia-Pacific Information Infrastructure (APII)
□ American National Information Infrastructure initiative (NII)
□ European Community Information Society Initiative (ISI)
□ Regional Arab Information Technology Network (RAITNET)
□ Other, specify___________________________________________________

Internet

81) What year was Internet available in your country?
□ Yes □ No □ Under preparation
If Yes,
Please specify_______________________________________________________________
__________________________________________________________________________

93) Name GMPCS system operators that are or will be providing these services
_________________________________________________________________________________

94) Does your country have due diligence requirements for licensing GMPCS service (for example, does a GMPCS system operator need to demonstrate that it has the financial or technical capabilities to provide an appropriate level of service, and does it have the appropriate contractual relationships in place to ensure provision of that service)?
int
Annex A: Privatization tranches (continued)

Second tranche:
Date of privatization (month/year)_________________
Total shares sold _______%
Mode used:
□ Public offering, total _____% , (International _____%, domestic _____%),
amount raised (currency)________________________
□ Sale to a strategic equity partner or consortium, ____%, amount raised (currency)_____________
name of partner____________________________________________________________________
□ Sale to employees, ____%, amount raised (currency)_______________________
□ Other, _____%, amount raised (currency)__________________, specify____________________

Third tranche:
Date of privatization (month/year)_________________
Total shares sold _______%
Mode used:
□ Public offering, total _____% , (International _____%, domestic _____%),
amount raised (currency)___________________________
□ Sale to a strategic equity partner or consortium, ____%, amount raised (currency)_____________
name of partner____________________________________________________________________
□ Sale to employees, ____%, amount raised (currency)_______________________
□ Other, _____%, amount raised (currency)________________, specify______________________

Fourth tranche:
Date of privatization (month/year)_________________
Total shares sold _______%
Mode used:
□ Public offering, total _____% , (International _____%, domestic _____%),
amount raised (currency)___________________________
□ Sale to a strategic equity partner or consortium, ____%, amount raised (currency)_____________
name of partner____________________________________________________________________
□ Sale to employees, ____%, amount raised (currency)_______________________
□ Other, _____%, amount raised (currency)________________, specify______________________

Fifth tranche:
Date of privatization (month/year)_________________
Total shares sold _______%
Mode used:
□ Public offering, total _____% , (International _____%, domestic _____%),
amount raised (currency)___________________________
□ Sale to a strategic equity partner or consortium, name ___________________________________
amount raised (currency)___________________________
□ Sale to employees, ____%, amount raised (currency)_______________________
□ Other, _____%, amount raised (currency)________________, specify______________________

__________

S/C/W/110/Add.