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3. USO, a Case study

3. USO, a Case study. The Romanian approach to providing access Jerker Torngren torngren@aon.at. The Romanian telecom market. Fully liberalised 2003 Impressive number of registered fixed network providers but few making any impact. Very low penetration rate in rural areas

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3. USO, a Case study

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  1. 3. USO, a Case study The Romanian approach to providing access Jerker Torngren torngren@aon.at

  2. The Romanian telecom market • Fully liberalised 2003 • Impressive number of registered fixed network providers but few making any impact. • Very low penetration rate in rural areas • High mobile penetration rate but still areas without coverage • Some operators using satellite links

  3. The consumer perspective • In rural areas only around 10 lines per 100 inhabitants • In general low buying power in rural areas. • Many families have relatives in other countries, demand for profitable incoming traffic. • Also high demand for internet services, including email

  4. Our Idea The USAID funded RITI-dot Gov project established a few community centres to test if it would function. EU encourages specific measures for rural and other isolated areas Key ideas: • Telcos to provide connectivity • External financing of equipment • Local commitment for management and operating costs

  5. The Telecentre The Centre should have: • Good connectivity • Phone, fax and copy machine • Answering machine to record incoming calls when centre was not staffed • Computers connected to the internet • Trained staff to help users • Possibilities to measure price of each call

  6. How we did it • Selected a few municipalities with the need and being prepared to contribute. • Signed agreement with the Municipality covering their obligations • Convinced operators to establish connectivity on their own expense for the trial • USAID funded the equipment

  7. Evaluation and continuation The experience showed positive results even beyond our expectations! Based on our very good experiance we submitted a proposal to the Ministry. The Ministry included, with some modifications, our proposal in its USO policy and has now established a large number of centres.

  8. The Romanian Community centres • The regulator selected the municipalities. • For each village a tender was conducted, based on estimated cost for establishing and operating. • “negative auctioning” • The winning bid considered as the “net cost” to be covered out of the Fund.

  9. Partners • The universal service provider; access and equipment • The local administration; management and services to end users • The regulator; monitors the performance and financing

  10. Not entirely in line with the EU Directive • A community approach instead of individual • Not only provision of services but also equipment • Nevertheless financing over the Fund • Engagement by both operators and local institutions. • The EU Commission was informed beforehand

  11. Personal conclusion • The EU Commission understands that transition countries can’t fully meet the USO Directive. • The Commission thus accepts solutions that lead in the right direction • The solutions must not distort competition but encourage new constructive measures • When relevant, keep the Commission informed

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