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Universal Service - Policy Framework

Universal Service - Policy Framework. Access to Broadband Workshop Sharm El-Shiek 4-6 March 2005. Agenda. Introduction Current Situation Universal Service Axis Policy and Implementation. Introduction. Egypt adopts set of development policies in all aspects Telecom Sector’s role:

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Universal Service - Policy Framework

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  1. Universal Service - Policy Framework Access to Broadband Workshop Sharm El-Shiek 4-6 March 2005

  2. Agenda • Introduction • Current Situation • Universal Service Axis • Policy and Implementation

  3. Introduction • Egypt adopts set of development policies in all aspects • Telecom Sector’s role: • Support Social Development • Support Economic Development • Release Differences between urban and rural areas • Make all citizens participate in Information society

  4. ` Introduction – Contd. • NTRA aims to regulate the Telecom Sector, through applying the policies determined to enhance and deploy different kinds of Telecom Services in compliance with the most advanced technologies and guarantees satisfying the Users’ needs at the most appropriate prices and encourages national and international investments

  5. Introduction • Law No. 10: • Article 5 • (US Criteria • Operators’ Commitment • Article 9 • Fund Sources and Uses

  6. Current Situation

  7. Current Situation • Governorates: 26 + Luxor • Localities: 200 • Villages: 4522 • Population: 69.8 M • Households: 14.8 M • Population Growth Rate:2.06%

  8. Current Situation –Contd. • Fixed Lines: 9.5 M • Cities Sub.:7.3 M (76%): • Villages Sub.:2.2 M (24%) • Waiting List: 66 K Source: TE’s Report Jan 2005

  9. Current Situation –Contd. Mobile Payphone ا8.0 M Subscribers 52.7 K Active Booths المصدر :شركتي المحمول و الشركة المصرية للإتصالات يناير 2005

  10. Average 13.6% Teledensity for Egyptian Governorates Current Situation –Contd.

  11. Current Situation –Contd. • Egypt’s Teledensity: 13.6% * • Egypt’s Teleaccessibility : 64.1%* *Ratios have been calculated on simple average basis for all governorates

  12. Universal Service Objective The main objective of the Universal Service Projects is deploying and developing Telecom Services with the most appropriate prices to the consumers and advanced technologies in rural areas and where providing Telecom service is uneconomic to operators

  13. Universal Service Axis

  14. Universal Service Axis The main objective of the Universal Service Projects is deploying and developing Telecom Services with the most appropriate prices to the consumers and advanced technologies in rural areas and where providing Telecom service is uneconomic to operators Objective

  15. Universal Service Axis • Clear Definition • Eligibility • Commitments • Universal Service Providers • The Mechanism of Financing the U.S. Fund

  16. Universal Service Axis – Contd. 1. Universal Service Definition* APublic Basic Service provided to all society members especially where accessing Telecom Networks is uneconomically feasible and in a technology neutral and competitive free framework *To be reviewed periodically

  17. Universal Service Axis – Contd. What is the Public Basic Service? • Transmitting or receiving calls supporting voice, data and fax through phones or public phones • Availability of Assigning number to subscriber • Providing Directory Service • Providing Emergency Service • Availability of Customer Complain System • Selective Calls Barring • Quality of Service

  18. Universal Service Axis • Clear Definition • Eligibility • Commitments • Universal Service Providers • The Mechanism of Financing the U.S. Fund

  19. Universal Service Axis – Contd. 2.Eligibility a. Eligible Users: • In rural areas (high cost – low income) • Low income users who are unable to afford the services prices • Schools, Libraries and Hospitals • Special needs

  20. Universal Service Axis – Contd. 2.Eligibility b. Eligible Areas: • List of areas is being determined • Selecting areas: • Economic Measure • Economic Models for Different technologies • Economically unviable areas • Social Measure • The area need for service • Social Value (population – Development)

  21. Universal Service Axis • Clear Definition • Eligibility • Commitments • Universal Service Providers • The Mechanism of Financing the U.S. Fund

  22. Universal Service Axis – Contd. 3.Committments • Determine the scope of providing service with no additional cost • Pre announcement of disconnecting or the replacement of service (if any) • Contribution to the fund

  23. Universal Service Axis • Clear Definition • Eligibility • Commitments • Universal Service Providers • The Mechanism of Financing the U.S. Fund

  24. Universal Service Axis – Contd. 4.Universal Service Providers • Partners • Other benefits expected • Transparency and nondiscrimination guaranteed through the selection process

  25. Universal Service Axis • Clear Definition • Eligibility • Commitments • Universal Service Providers • The Mechanism of Financing the U.S. Fund

  26. Universal Service Axis – Contd. 5. The Mechanism of Financing the U.S. Fund • Sources are from NTRA and Operators • The subsidy is assigned only to the uneconomic part • Contribution: Objectives, balancing and equitable treatment

  27. Universal Service Phases

  28. Universal Service Phases • Phase 1: Unserved areas – Less Income • Phase 2: Teledensity to 20% • Phase 3: Reduce the Digital-divide • Phase 4: Teleaccessibility

  29. Universal Service Policy and Implementation

  30. Universal Service Implementation • All Licensed Operators shall Contribute • Contribution is through fixed percentage of the annual revenues • Universal Service is offered to current operators or through competitive biddings • Transparency and nondiscrimination is guaranteed • Technology neutrality should be addressed in the bid • The Competitive Bid shall determine: • Max. Tariff • Interconnection

  31. Universal Service Implementation • The Selection Criteria are: • Technical • Financial • Prequalification • Lowest subsidy • Periodic revision to the Universal Service Objectives and Activities shall be done: • Consultation • Annual Report • Financial Reports • Projects Report • Executive Plan and Budget

  32. Universal Service Implementation Success Factors • Accurate Data • Cooperation: • Operators • Vendors • Ministries and Authorities • Governorates • Proper Follow up

  33. Universal Service Implementation Expected Return • High penetration for Telecom Service through balanced tariff • New Societies enjoys advanced technologies • Developed Telecom Infrastructure

  34. Thanks For Your Attention

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