The TRE methodology is based on the assumption that investment is a necessary condition for good telecom sector performance, and investment decisions are influenced by perceptions of investment risk. Using interviews and a questionnaire administered to a statistically significant cross-section of industry stakeholders and experts, the TRE assessment traverses six dimensions of regulatory risk for both the fixed and mobile sectors.

The new report, the second assessment of Peru’s regulatory environment, reports that the overall influence of the regulatory environment in Peru has improved since the previous assessment (2006-2007) but remains neutral – neither encouraging nor discouraging investment. There is positive movement in the perception of market entry regulation, but also a perception that improvements are required in regulation governing anti-competitive practices.

Read the summary in English and download the full report (Spanish only)

Since 2006 DIRSI and LIRNE.NET have conducted TRE assessment studies in six countries in the Latin America and Caribbean region (Bolivia, Chile, Ecuador, Guyana, Peru and Uruguay).

As neither we nor most of our readers do not have access to the thread it was posted, we like to continue the discussion here.

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Hi people,

I come from one of the ten largest economies in the world, with nearly 200 million people, 8.5 million km2, and 5.564 municipalities, where 94% of the people do *not* have access to any form of broadband – the “B” in the famous BRIC acronym.

I am just coming out of the IGF workshop “Expanding broadband access for a global Internet economy: development dimensions”. I left the workshop a bit shocked with the concepts expressed, not by the AT&T representative (who not surprisingly said AT&T subdsidiaries countries other than the USA should be considered local companies because they employ local people), who as usual is just doing his job in defending the so-called “market”, but by other speeches which seemed to completely ignore that, in most of our contries, there is a de facto monopoly or cartel situation regarding the telco infrastructure, and that public policy ought to centrally take this into account if the aim is to universalize broadband access with quality to all families.

One of the speakers (from LIRNEasia) said that “lower prices require lower costs” and therefore one should just “phase out universal access levies and rationalize taxes”. I retorted that pricing per Mb/s of ADSL broadband in São Paulo might be 65 times higher than the same price charged by the same company in London — and therefore no amount of levies or taxes would justify such scandalous pricing difference, not to speak of the much lower QoS.

I suggested that, instead of eliminating the universal service funds (whose levies are a very small portion of price composition of broadband), we should insist on reforming policy regarding the use of these funds. The reply I heard was that it makes no sense to keep funds that are not used or are squandered (!!). Impact of the fund’s levy in Brazil is just 1% of the price of the fixed line telephone connection — its impact in the price of broadband (a separate bill even if the service is not unbundled) is zero.

There was also a recommendation that we should be “gentle on QoS” to facilitate things regarding universalization of access — fascinating. Again, examples abound in which telcos guarantee only 10% of the nominal contracted rate, and in practice this might be even less. Should we just agree with absurds like this in the name of “it is better to have something than nothing”???

And then there is the crucial question of unbundling, central to the policy debate in the developed countries as it directly impacts universalization through an effective reduction of prices for the final user. It is a major challenge for broadband public policy in developing countries, where regulators are usually in the hands of the telco cartels. The word was not mentioned (not a single time) by anyone in the panel, as if irrelevant to the development dimensions of broadband.

The speaker also mentioned that the “need” to reduce costs for the big telcos would require reduction of international bandwidth costs. One of the two big carriers in Brazil, a Brazilian conglomerate, owns redundant fiber running from Brazil to Miami in rings passing through countries in the Caribbean and Central America. They own their own international link, in summary. So do the other carrier in the de facto duopoly — a major operator from Europe. This does not make any difference in pricing for the final user, although it does contribute to their profits in Brazil being far higher than in Europe for example.

Finally, the fascination with mobile. Of course the AT&T speaker started his talk by waving a fancy iPhone to the audience — mostly natural for a commercial wireless giant. But the infoDev representative and others mentioned mobile as a “solution” for the poor, and not even bothered to separate the discussion in the two main topics here: first, the mobile phone as a connectivity device to enable the user to fully use the Internet through a friendly human-machine interface, be it a common PC or special equipment for people with disabilities; second, the phone itself as *the* alternative to the full user experience that a PC or similar might provide. It seems the agency bureaucrats are satisfied with having two castes of users: a small minority of the ones who can fully use the Internet as it evolves requiring more and more multimedia capabilities on both sides (server and client), and the ones relegated to a small device on which it is barely possible to type small messages.

In the first regional LA&C preparatory meeting for the IGF, in 2008, a representative of a major telco said we should not worry about bringing the next billion to the Internet — they have cell phones, so they are connected already, problem solved. I wonder if this executive would take the place of a carpenter looking for a job, who has to compose and send by email his CV together with images of letters of recommendation to his would-be employer, and had nothing but a cell phone (smart or not) to do it. Not to speak of comparing the executive’s thin-fingered hands of a pianist with the big callous hands of the carpenter.

fraternal regards

–c.a.

Two sessions will be based on the LIRNEasia‘s study on Teleuse at the Bottom of the Pyramid (BOP), which is to presented in the form of an interactive quiz show. The background paper is available here.

A session titled ‘Making Communities Disaster Resilient’, hopes to highlight issues related to developing a robust solution for strengthening community resilience in the face of natural disasters. The background paper is available here.

LIRNE researchers will also be among panelists at a session on regulatory transparency and effectiveness. The session, entitled ‘Hello Regulator’, hopes to explore how having easy access to regulatory information and processes can support community and public agendas, access to ICT and so forth.

Click here for further information available on the GKP website.

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PDF versions of related background papers from other regions can be accessed here:

Genderstanding Mobile Telephony: Women, Men and their Use of Cellular Phones in Jamaica. (DIRSI)

Mobile Opportunities: Poverty and Telephony Access in Latin America and the Caribbean. (DIRSI)

Towards an African ICT e-Index: Towards evidence based ICT policy in Africa (Research ICT Africa)

Title: Diversifying Participation in Network Development: Case studies and research from WDR Research Cycle 3
Editors: Amy Mahan and William H. Melody
Document date: September 2007
Pages: 230

The book is divided into three sections. The first, entitled Affordability and Use, opens with a study on affordability – definitions, analysis and issues. This is followed by two demand side studies, the first focusing on mobile use by the poor; and the second assessing communication expenditures across four developing countries. The final chapter in this section reports on a survey of ICT use by SMEs in eight African countries.

Section 2, Models to Extend Participation in Network Development considers microfinance, smart subsidies, community owned microtelcos and the extension of research networks. The countries used to highlight these alternative approaches include Bangladesh, Nepal, Argentina, Brazil, Colombia, Peru and Ghana.

Section 3, Regulatory and Information Practices, begins with two chapters dedicated to the information provision and communication practices of regulators – which are important for cultivating informed participation in regulatory processes. Next regional regulation in support of national regulators and to ensure competitive markets is examined using the Organisation of Eastern Caribbean States as a case study. Further perspective on this is provided by a chapter on multinational operators in African mobile markets. The section concludes with a case study on the regulatory environment in Guyana.

This report is the third in a series of research cycles that WDR is undertaking to assess different approaches to regulation in a rapidly changing telecom environment. With the advent of privatisation, competition, and converging infrastructure sectors, the role of the regulator is in a transitional phase. The first World Dialogue on Regulation research cycle assessed two emerging regulatory trends and the report, The Next Step in Telecom Reform: ICT Convergence Regulation or Multisector Utility Regulation; and the second cycle, Stimulating Investment in Network Development: Roles for Regulators – are both available for download and hardcopies of the second can be ordered from WDR.

Diversifying Participation in Network Development, A.K. Mahan and W.H. Melody (eds), Uruguay, 2007. ISBN (printed version): 978-9974-8067-0-2

Table of Contents:
Chapter 1. Introduction | William H. Melody
Section 1 – Affordability and Use
Chapter 2. Improving Affordability of Telecommunications: Cross-fertilisation between the developed and the developing world | Claire Milne
Chapter 3. Telecom Use on a Shoestring: Expenditure and perceptions of affordability amongst the financially constrained | Avanti Moonesinghe, Harsha de Silva, Neluka Silva & Ayoma Abeysuriya
Chapter 4. Variations in Expenditure on Communications in Developing Countries: A synthesis of the evidence from Albania, Mexico, Nepal and South Africa (2000-2003) | Sebastian Ureta
Chapter 5. ICT Usage and its Impact on Profitability of SMEs: A case of eight African countries | Steve Esselaar, Christoph Stork, Ali Ndiwalana & Mariama Deen-Swarray
Section 2 – Models to Extend Participation in Network Development
Chapter 6. An Investigation of the Replicability of a Microfinance Approach for Extending Telecom Access to Marginal Customers | Malathy Knight-John, Ayesha Zainudeen & Abu-Saeed Khan
Chapter 7. Smart Subsidies – Getting the Conditions Right: The experience of expanding rural telecoms in Nepal | Harsha de Silva & Ratna Kaji Tuladhar
Chapter 8. Microtelcos in Latin America and the Caribbean | Hernan Galperin & Bruce Girard
Chapter 9. Research and Education Network in Ghana: Promoting ICT in developing countries through research cooperation | Reza Tadayoni & Knud Erik Skouby
Section 3 – Regulatory and Information Practices
Chapter 10. Benchmarking National Telecom Regulatory Authority Websites of the Asia-Pacific Region | Chanuka Wattegama
Chapter 11. An Institutional and Practical Evaluation of URSEC – Uruguay’s Communication Regulator – and its Relationship with Citizens | Gustavo Gómez & Amy Mahan
Chapter 12. Regional Regulation of Telecom Markets in the Organisation of Eastern Caribbean States | Andrew Barendse
Chapter 13. Multinational Operators in African Mobile Markets | Ewan Sutherland
Chapter 14. Privatisation, Regulation and Investment: A case study of the telecom regulatory environment (TRE) and investment in Guyana | Samuel Braithwaite

Foundation Partners | About the Authors
Diversifying Participation in Network Development

Telecoms in the Caribbean | The Irish are coming | Economist.com

Digicel has prospered by introducing modern technology and innovative services into stodgy, uncompetitive markets. Its entry into Jamaica led to drastic reductions in prices and showed the region just how much it stood to gain from liberalisation. Digicel used a similar recipe in Haiti. “We floored prices and gave people a better service,” says Mr O’Brien. Pre-paid billing, based on top-up cards, makes phones more affordable to those outside the business and political elites. Digicel has also introduced novel twists of its own, such as the ability to send free “call me” text messages to other people.

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The 2007 course is designed to enhance the strategic thinking of a select group of senior decision makers in the telecom and related sectors in the Asia Pacific and elsewhere. The focus will be on the most current strategic issues.

The faculty includes:
Prof. William Melody (course convener; designed and led the previous Telecom Reform courses); Prof. Rohan Samarajiva (course convener;designed and led the previous Telecom Reform courses); Dr. Tim Kelly, Head of the Strategy and Policy Unit of the International Telecommunication Union; Mr. Rajendra Singh, of the World Bank, also Former Secretary, TRAI; and Dr. Harsha de Silva, Lead Economist at LIRNEasia.

Mr. Yusuf Annuar Yaacob (Chief Executive Officer of TM International Sdn Bhd. [Telekom Malaysia], a leading investor in the South and South East Asian region) will deliver the keynote at the opening session.

M.H Au (Director General of Telecom, Hong Kong China) will deliver the keynote speech at the course banquet on 1 March.

A day and a half will be set apart for discussing cutting-edge research on sector and regulatory performance commissioned as part of the 2006-07 World Dialogue on Regulation at the Expert Forum on March 2nd and 3rd.

This will be the 11th LIRNE.NET executive training course on telecom regulation, and the second to be offered in the Asia Pacific by LIRNEasia and CONNECTasia Forum Pte. Ltd. Previous LIRNE.NET courses have been offered in Africa, Europe, Latin America and the Caribbean. This course builds on the successful course held in Singapore in September 2005, with attendees from 18 countries.

Registration ends: January 10th, 2007 (early bird) or February 9th, 2007 (regular; extended due to some seats coming open at the last minute)

More information…

The focus will be more on the most current strategic issues than on nuts and bolts knowledge. A day will be set apart for discussion of cutting-edge research on diverse approaches to network extension commissioned as part of the 2005-06 World Dialogue on Regulation. An opportunity will also be provided to visit the InfoComm Development Authority of Singapore, a leading regulatory agency that has been recognized for its efficacy internationally.

Attendance at Telecom Reform courses is capped at 40. Attendees will include regulators and senior officials of regulatory agencies; senior regulatory staff at operators; and leaders of consumer and other organizations participating in reform processes. In addition to Professors William Melody and Rohan Samarajiva who designed and led the previous Telecom Reform courses, Professor Jens Arnbak ( Chair of OPTA, the telecom and posts regulatory body in the Netherlands and Delft University of Technology), Dr Harsha Vardhana Singh, Secretary of the Telecom Regulatory Authority of India (on leave), Dr Ewan Sutherland (Executive Director of INTUG, the international telecom user?s organization), and Ms Malathy Knight John (Head of the Public Enterprise Reform, Competition and Regulatory Policy Unit of the Institute of Policy Studies in Sri Lanka) are expected to lecture.

The following documents provide more information on the course:

• Draft agenda [WORD] [PDF]
• Logistical information and course fees [WORD] [PDF]
• Course registration & hotel reservation [WORD] [PDF]
• Invitation letter [WORD] [PDF]