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July 22, 2010
Jordan: Tax Incentives for ICT Sector
According to a report from The
Jordan Times, new tax incentives for the ICT sector are intended to make
Jordan a regional ICT centre.
The government has implemented numerous tax
incentives for Internet and communications services providers. The measures,
effective August 1, include a reduced sales tax on Internet services that is unified
at 8% regardless of the technology used or the beneficiary. The existing sales
tax on Internet connections was 8% for households, 16% for businesses and 16%
for wireless Internet. Under the new regime, the tax will be 8% for all three
services.
The new rules exempt exported ICT services
from income tax. This exemption includes items such as computer services,
economic feasibility studies and services related to legal, engineering and
audits. Jordan's Minister of Information and Communications Technology, Marwan
Juma, said that increased incentives for the ICT sector, whose exports reached USD
209 million in 2009, will make the country more competitive in attracting
investors. Juma noted that the number of workers in the sector reached around
70,000 people as of the end of 2009.
According to Juma, broadband providers will
be exempt from annual fees of USD 910,000 if they expand their services outside
Amman and pass the tax breaks on to customers in the form of price reductions.
July 20, 2010
Uganda sets interconnection
charges
According to an IDG report from Edris Kisambira
and Olusegun Abolaji Ogundeji, the Uganda Communications Commission (UCC) has reduced
mobile interconnection rates as part of an attempt to reduce end-user charges.
Former UCC executive director, Patrick Masambu, wanted to leave
office at the end of 2009 with mobile interconnection issues resolved, but MTN
Uganda took the UCC to court, seeking a permanent injunction restraining the UCC
from fixing interconnection rates. MTN later withdrew its suit and agreed to
negotiations that involved UCC, the Ministry of ICT and the other operators.
Last week, the UCC reduced termination rates to Ush131 (USD 0.057)
per minute from a high of Ush181 (USD 0.079) (charged by MTN) for both fixed
and mobile connections. SMS termination rates are now Ush30 (USD 0.013). Basic
transit charges for calls are not expected to exceed Ush25 per minute (USD
0.011).
"Following the conclusion of consultations, the Commission
hereby notifies the public that the above interconnection rates shall be
applied as default interconnection rates," according to Patrick Mwesigwa, acting
executive director of UCC.
Until now, each of the players in the Uganda telecommunications market
charged other operators an interconnection rate designed to maximize profit.
MTN had been charging Ush181 (USD 0.079) per minute to connect calls from other
networks - Ush81 (USD 0.035) more than Uganda Telecom charged.
New operators have been critical of the policy of allowing operators
to determine their own interconnection charges. The argument is that if
interconnectivity is not regulated, the charges can stifle competition and
innovation, and reduce penetration.
July 16, 2010
South Africa: Government establishes broadband targets for 2019
Timeslive.co.za
reports that South Africa's Minister of Communications, Siphiwe Nyanda, has
released the "Broadband Policy for South Africa".
All South Africans are to have a public
internet access point offering at least 256kb/s download speeds within two
kilometres of their homes by 2019. The policy defines broadband as, "an
always available, multimedia capable connection with a download speed of at
least 256 kb/s". Nyanda acknowledges that South Africa's broadband
definition is far below the developed country level, which is typically at
least 1mb/s, but believes that it is a realistic target for South Africa.
"Government's objectives include
social upliftment and economic growth. One of the methods to achieve these
goals is to increase the access to and availability of broadband services,"
Nyanda said.
The universal access target for 2019
requires public access available to everyone within two kilometres of their
homes. The policy also requires that at least 15% of households, compared to
only 2% today, should have individual broadband access. All municipalities
should have electronic communication network connectivity by 2019.
The policy defines the roles of the regulator,
ICASA, and the universal service agency, USAASA. It makes the Minister of Communications
the sole "custodian of all issues on broadband and related matters". The
policy also provides for a "Broadband Inter-governmental Committee"
reporting to the minister to manage the policy. The committee's first task is to
assess the current broadband status and to list the market players.
July 14, 2010
Gambia: Globacom Awarded License
According to This Day,
four months after it was awarded a license in Senegal, Globacom has received
another license that will enable it to operate in Gambia.
Globacom said that the latest license
approval was presented to the company in Banjul. It now has operating licenses
in Nigeria, Ghana, Benin Republic and Cote d'Ivoire, in addition to Senegal and
Gambia. The company started operations in Nigeria in August, 2003, and in Benin
in June 2008. It has also concluded plans to roll out services in Ghana.
The license will allow Globacom to land its
trans-Atlantic submarine cable, Glo 1, in Gambia, with opportunities to extend
the network to neighbouring countries. It also gives the company the right to
carry traffic for other operators, the government and wholesale customers in
Gambia.
July 5, 2010
Chile: Government Launches Major Telecommunications Sector Reforms
Chile's Minister of Transport
and Telecommunications, Felipe Morande, in an interview with El Mercurio,
announced significant changes to the country's telecommunications industry.
The government's goal is to implement regulations
that enable cross-platform competition, whether fixed, mobile or internet. In
order to achieve their objectives, the first step will be to implement uniform
telephone numbering so that all devices that exist today use nine digit
dialling. This will take effect in 2011. The second step is to implement number
portability. The aim is that if a fixed or mobile subscriber wants to switch to
any other fixed or mobile provider, they can do so with the same number. The
Minister says the goal is to have number portability in place by mid-2011.
The last major step is to phase out the
current national long distance calling structure. The government is considering
a draft regulation creating four macro-areas for the charging of domestic
calls. The changes are expected to facilitate connectivity between adjacent
regions. The long-term objective is to totally eliminate national long distance
calling. However, the government says that this will not occur before 2014.
Another major development announced by Morande
is the government's decision to subsidize consumer demand for Internet access. To
date, the government has only subsidized operators who bid to provide service in
underserved areas.
"We'll have to implement a demand
subsidy for Internet adoption increases, particularly in lower income urban
areas," said Morande. He added that this will cost between USD 200 million
and USD 300 million per year in 2013 and 2014.
The objective is to reach 70% household
broadband access by 2014. Today, the average penetration of OECD countries is
65%, in Chile it is 33%.
The government is also pushing a multilateral
effort to lower international bandwidth costs. The proposed strategy is that
each ECLAC country (Chile, Argentina, Brazil, Uruguay and Peru) combine their global
bandwidth demand to generate economies of scale to bring down the cost and pass
on the savings to end-users.
Finally, on July 1, the government sent
Congress a bill which would allow the entry of infrastructure operators. These
operators will have the ability to lease their infrastructure to more than one
telecommunications provider. Today, infrastructure operators such as those
proposed in the new bill cannot operate in Chile.
July 2, 2010
Ghana: SIM Registration Began July 1
Myjoyonline.com
reports that the National Communications Authority's (NCA's) new SIM card registration
policy took effect on July 1.
New mobile customers in Ghana must provide
personal details, backed by an official national identity document to their
service provider before a new SIM card is activated. However, existing
customers have up to one year to register their SIM cards.
According to the NCA, SIM card registration
will help curb crime. Director General of NCA, Paarock Van Percy says this will
also help control the increase in unsolicited text messages that spread fear
and panic among the populace.
"It helps in this situation of curtailing
or to some extent, minimizing threats and all the mischievous calls and text
messages that come with it," Van Percy said.
Van Percy added that, "obviously if
the operators don't comply then the whole exercise falls flat on its face from
day one. Thankfully the operators have all been extremely cooperative".
MTN representative Haruna Shaibu said that
most of its service centres have been equipped to register both new and old
customers. Ike Cudjoe, of Vodafone, says they will use both manual and
electronic means to register customers at its retail centres. Tigo manager
Enoch Vanderpuye says the operator has deployed agents across the country to
get people registered.
Earlier in 2010, when SIM card registration
became a national issue, the IMANI Centre for Policy and Education expressed
their reservations about SIM card registration. Among their concerns were
issues of privacy, potential abuse of personal data and the costs of SIM card
registration being passed on to the consumer.
Franklin Cudjoe, a fellow at the policy
think tank said that the centre still has problems with the time period within
which the companies are supposed to gather information from consumers.
Describing the policy as over-ambitious, Cudjoe
said it would create a false sense of security. "It is as if as soon as mobile
phones [SIM cards] are registered crimes would not be committed and that you
will have your peace of mind."
From all indications it appears that
operators are ready to implement the SIM card registration policy. What is
uncertain is whether street vendors who are the primary points of contact for
most customers are also ready.
June 28, 2010
G20 Summit Document: Principles for Innovative Financial Inclusion
The recently-concluded G20
summit in Toronto produced a final summit document on the "principles of
innovative financial inclusion".
According to the document, "innovative
financial inclusion" is about improving access to financial services for
poor people through the spread of new approaches. The document outlines nine principles
that would aid in the creation of an enabling policy and regulatory environment
for innovative financial inclusion. The principles are based on lessons learned
from policymakers around the world, especially developing country leaders. The
principles seek to create conditions conducive to spurring financial inclusion
while protecting financial stability and consumers. They are not rigid requirements
but are intended to be a guide for policymakers.
1. Leadership: Cultivate a broad-based
government commitment to financial inclusion to help alleviate poverty.
2. Diversity: Implement policy approaches
that promote competition and provide market-based incentives for delivery of
sustainable financial access and usage of a broad range of affordable services
(savings, credit, payments and transfers, insurance) as well as a diversity of
service providers.
3. Innovation: Promote technological and
institutional innovation as a means to expand financial system access and
usage, including by addressing infrastructure weaknesses.
4. Protection: Encourage a comprehensive
approach to consumer protection that recognises the roles of government,
providers and consumers.
5. Empowerment: Develop financial literacy
and financial capability.
6. Cooperation: Create an institutional
environment with clear lines of accountability and co-ordination within
government; and also encourage partnerships and direct consultation across
government, business and other stakeholders.
7. Knowledge: Utilize improved data to make
evidence based policy, measure progress, and consider an incremental "test and
learn" approach acceptable to both regulator and service provider.
8. Proportionality: Build a policy and
regulatory framework that is proportionate with the risks and benefits involved
in such innovative products and services and is based on an understanding of
the gaps and barriers in existing regulation.
9. Framework: Consider the following in the
regulatory framework, reflecting international standards, national
circumstances and support for a competitive landscape: an appropriate,
flexible, risk-based Anti-Money Laundering and Combating the Financing of
Terrorism (AML/CFT) regime; conditions for the use of agents as a customer
interface; a clear regulatory regime for electronically stored value; and
market-based incentives to achieve the long-term goal of broad interoperability
and interconnection.
June 25, 2010
Lebanon: Ministry of Telecommunications and VoIP
Matt Nash writes in a Now
Lebanon article that in an effort to stop illegal voice over IP (VoIP)
operations, Lebanon's Ministry of Telecommunications (MoT) is enforcing parts
of a 2002 law that banned VoIP technology.
According to a June 9 ministry press
release, illegal VoIP call centres cost the state USD 150 million per year in lost
revenues. With a monopoly in the country's fixed-line sector, long-distance tariffs
remain high. It is unclear how the MoT is enforcing the VoIP ban from a
technical standpoint, but it is upsetting business people and users.
Phillippa Biggs, an economist with the
International Telecommunications Union, said that commercial VoIP bans are
still common around the world. However, countries in North Africa, the Middle
East and South Asia are beginning to lift their bans, said Riad Bahsoun, CEO of
a Lebanese IT company and the vice chairman of the industry group SAMENA
Telecommunications Council.
The ban has not completely halted the use
of popular VoIP application Skype. Many users otherwise affected by the ban
report they can still use Skype to call from computer to computer, but not from
computer to telephone. Enforcement of the ban is complicated by the fact that a
significant number of internet users in Lebanon pay illegal operators for
access.
June 23, 2010
South Africa: ICASA Act Amendments in the Works
According to an ITWeb
article, South Africa's Cabinet has approved potential amendments to the ICASA
Act that could improve the efficiency and effectiveness of the telecommunications
and broadcasting regulator, the Independent Communications Authority of SA
(ICASA).
"The essence of the proposed amendments is
to strengthen the regulator's capacity to help it carry out its mandate with
efficiency," said Department of Communications (DOC) spokesperson Tiyani
Rikhotso.
ICASA has struggled with extensive lead
times in the creation of regulations, only to have a number of their efforts
halted by legal action from telecommunications operators. In 2009, ICASA
chairman Paris Mashile called for the Electronic Communications Act to be
rewritten, saying the legislation is a labyrinth. Soon after Mashile's call, the
DOC said it would change the laws in order to make ICASA more effective. Cabinet's
approval of amendments to the ICASA Act was the final hurdle in the DOC's
efforts.
Rikhotso says the proposed legislation will
address operational and structural issues that have hindered ICASA, and will
offer increased clarity regarding the responsibilities of ICASA's executive and
council. The changes are also intended to speed up turnaround times on
regulatory matters, and the general efficiency of the organisation.
Rikhotso says that any changes must support
the requirement that the regulator be independent. He says the modifications will
be published soon and made available for public comment.
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