The Ethiopian telecommunications industry has been advised to take cue and learn from Nigeria’s mistakes in Right of Way (RoW), spectrum sales, tax holiday and other industry issues, in its efforts to restructure and open its telecoms market for foreign participation.
Bashir Gwandu, Non-Executive Chair of the Commonwealth ITU Group (CIG) and the former Commissioner of the Nigerian Communications Commission (NCC), who spoke at the Innovation Africa Digital Summit (IAD) 2019 dissected the telecoms market privatisation and liberalisation processes breaking the issues logically from the point of producing succinct legal frameworks for both the privatisation, and that of the telecoms regulation, right down to the market design and to the choices available to the government when it comes to competition planning up to the spectrum management and eventually service providers’ regulation.
He stated the need for strong and good regulatory framework, encompassing sensible set of rules that encourages investment and protects the consumer and requiring effective, professionally competent and sufficiently empowered as well as sufficiently financed regulatory institution.
According to Reuters, Ethiopia’s telecoms market is considered to be ‘the big price’ and the last greenfield site in a push to liberalise, and end a state monopoly as well as open-up one of the world’s last major closed telecoms markets.
The telecoms industry expert opined that government role should be restricted to policy formulation whilst a strong, independent regulatory authority should provide stable, transparent, fair, and non-discriminatory access to telecommunications resources in a timely manner.
Gwandu said the legal framework apart from guaranteeing independence of the regulator, must enable flexibility of the regulator whist remaining predictable, efficient, effective and accountable. “It should be the role of the regulator to ensure the existence of competition in all segments of the market devoid of market abuse or the exercise of significant market power by the participants,” he said.
Emphasizing that, “Liberalization of telecom market is essential for rapid network growth as experienced by other countries and private sector participation is essential for attracting investment. Innovation and new technologies in the telecoms sector is fast moving, it cannot wait for slow government bureaucracy to be approving investment funding and yet compete effectively.”
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Gwandu stated that in looking holistically at the telecoms market, international segment should be examined where the complimentary options of international optical fibre and satellite links can be made available in a competitive manner.
According to him, international gateway liberalisation and national backbone planning should ensure ubiquitous availability, open access, and finally on the last mile the spectrum remains key in view of the lack of sufficient last-mile fixed infrastructure.
He further stated that “Mobile is the largest technology platform in human history and mobile broadband is the most dynamic segment of the last mile market. Spectrum is a critical resource for mobile broadband but is only valuable if it is effectively deployed to enable appropriate networks and services for socio-economic benefits to citizens.”
Gwandu emphasised further that as wired infrastructure is limited in Africa except perhaps in South Africa, it is expensive to install. Wireless technology on the other hand is easier and faster to deploy and remains critical to expanding broadband access, and spectrum access is critical for wireless broadband deployment, and capacity.
“Robust wireless broadband requires various bands and appropriate slots size for assignment, the slot size determines how many towers an operator will need to cover the area, or re-use pattern or indeed how soon break-even will happen, how sustainable or profitable the telco will be etc” he said. He cited the mistake made by Nigeria in providing just over three megahertz (MHz) to Code Division Mobile Access (CDMA) operators and expected them to perform.
Ethiopia is being encouraged to participate actively in the International Telecommunications Union (ITU) and African Telecommunications Union (ATU) activities to enhance regulatory harmonisation, thereby promoting economies of scale and enhancing cooperation on roaming, interoperability, Internet exchange points, and development of backhaul infrastructure.
