Tag Archives: regulation

Open Season

[This week’s Communications column for the Vanuatu Independent.]

With the recent passage of a new telecommunications Act (awkwardly titled the TELECOMMUNICATIONS AND RADIOCOMMUNICATION REGULATION ACT), Vanuatu has taken another important step in ensuring continued success in building openness and fairness into the business of communications.

Parts of the Act, currently awaiting the President’s signature, validate and give force of law to terms and conditions already included in the licenses issued to our two incumbent telcos. It also provides an overall framework for continued growth, expansion and innovation. Most importantly, it makes permanent the office of the Telecommunications Regulator.

(Before I go on, I should make it clear that the text of the Bill was under discussion until shortly before it was voted on. The version I was able to view was not the official text. That will only become available once the Clerk of Parliament receives the signed Act from the President. That said, I’m pretty confident that those parts of the Act discussed here are unchanged.)

Perhaps the most notable aspect of this new legislation is the delegation of the right to issue telecoms licenses to the Regulator. Until the Act takes effect, this power is retained by the Minister.

John Crook, the Interim Telecommunications Regulator, has made it clear that he wants to see the process of obtaining what’s termed a Telecommunications Operator License to be as simple and direct as possible. All that should be required to start a new Internet Service Provider is to demonstrate that you have the right to operate such a business in Vanuatu, that you have the means to do so and that you’re willing to play by the rules.

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Tit For Tat

[This week’s Communications column for the Vanuatu Independent.]

We’ve seen a lot of griping and moaning recently about – and by – our two telcos. The former is not really news in and of itself. The fact of the matter is that anyone relying on technology in Vanuatu will have ample cause to complain before very long. Human, logistical and environmental factors in Vanuatu conspire against even the best-intentioned, making high-tech businesses here a pale echo indeed of what one might see in Sydney or Auckland.

To see our two telcos descend to a juvenile level of petty and rather vindictive name-calling and insinuation, however, was surprising and not at all welcome.

On top of the all-too-familiar litany of complaints concerning mobile telephone costs and service levels, readers of the Daily Post this week witnessed a public dust-up of playground proportions between TVL and Digicel. If we’re to believe the two providers, a mobile user’s choice of providers is between an incompetent dinosaur and a dishonest fast dealer.

Neither depiction is accurate, useful or informative for people in Vanuatu. It leads one to wonder whether either of them really understands where they live. This undignified public display is an object lesson in how NOT to win friends and influence people in Vanuatu.

One thing is for certain: As far as the public is concerned, the post-liberalisation honeymoon is definitely over.

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Masters of our own Domain

[This week’s Communications column for the Vanuatu Independent.]

Over the last few weeks, I’ve been working on contract to assist the Interim Telecommunications Regulator in conducting a consultation seeking public input on how best to manage Vanuatu’s .vu domain in a pluralistic, healthy commercial ISP market.

A fair amount of technical information necessarily goes into such discussions, and you can read more about that on the Regulator’s website.

The issue of managing Vanuatu’s national domain affects us all. It’s not sufficient for a bunch of geeks to get together and decide everything; we need to make sure everyone in Vanuatu has a clear idea what’s happening.

To that end, I’ve dug through a number of older columns on the subject of what a domain is, how it should work, and what it all means to Internet users in Vanuatu.

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The Numbers Game

[This week’s Communications column for the Vanuatu Independent.]

At a public meeting recently held in Port Vila, Digicel Pacific General Counsel David Dillon estimated that Digicel and TVL combined have about 100,000 active mobile subscriptions in Vanuatu. If that number is correct – and I believe it is – it means that the number of subscriptions has increased by a stunning 400% in less than a year.

100,000. Let’s think about that for a second.

In the big cities of the world, selling 80,000 new subscriptions is a modest achievement. But here in Vanuatu, simply finding that many is a herculean feat. Extrapolating from the 2001 census numbers, we can estimate that there are roughly 55,000 people living in Port Vila and Santo today. Pick any reasonable percentage of people actually using mobile phone services, and it quickly becomes evident that reaching the reported subscription level requires pretty significant penetration into places that had never had mobile services before.

Digicel, TVL and the government of Vanuatu have achieved a truly remarkable thing. This is nothing short of a communications revolution.

Nobody doubts that the effect of opening the telecoms market is a fundamental transformation in the way Vanuatu society interacts. But it’s difficult to characterise the exact nature and scope of the impact.

It would be nice to quote statistical chapter and verse, but we don’t have enough publicly available information to do so.

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Regulating Telecommunications

[This week’s Communications column for the Vanuatu Independent.]

Last Thursday, members of the IT industry, researchers and interested members of the public got together with Ministry of Infrastructure and Public Utilities to discuss proposed new laws governing Vanuatu’s burgeoning telecommunications sector.

At issue was a Bill to define the precise role of the Telecommunications Regulator. Designed to supplement the existing Telecommunications Act of 1989, it outlines in detail the extent of the Regulator’s mandate to influence the newly-liberalised telecoms market.

The draft Bill describes an environment wherein the Regulator has wide latitude to impose his will on telecoms operators if they misbehave. Among other things, he can enforce fair and equitable access to rare or unique infrastructure (known as bottleneck resources), he can intervene if telecoms operators are deemed to be offering preferential or prejudicial prices to others and if necessary he can enforce tariff or pricing regimes on carriers if they don’t play fair.

Viewed in the light of their exemplary track record, the draft Bill reflects well on both the Ministry and the Regulator. To date, their attitude has been to let market forces work with little if any intervention. They have nonetheless made sure that the regulatory stick they hold in reserve holds real clout. The proposed Bill gives this all the force of law. Rather than relying in the language of various negotiated agreements, they’ve outlined a set of rules that applies to anyone and everyone operating in the telecoms sector.

Others aren’t so sure that a big regulatory stick is such a good thing….

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License to Bill

[This week’s Communications column for the Vanuatu Independent.]

The next phase of the government’s telecommunications strategy is under way.

A little over a week ago, the Ministry of Infrastructure and Public Utilities began a public consultation process designed to gather feedback on the next set of telecommunications licenses, which should be available in the coming months.

Copies of the draft licensing policy are available at the Ministry offices, or you can get them courtesy of the Vanuatu IT Users Society at vitus.org.vu.

This kind of thing is tedious, detailed and boring for virtually everyone concerned. It’s also a critical step in Vanuatu’s development. Hidden inside the legalese are important questions concerning Internet access in the islands and the need to ensure that the fundamental rights of freedom of speech and access to information are protected.

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Then and Now

[This week’s Communications column for the Vanuatu Independent.]

In July 2004, the World Bank presented a report on the state of Vanuatu’s public utilities to the public.

This was a watershed moment. From that moment, the government of Vanuatu formally committed itself to a process that ultimately led to the break-up of the telecommunications monopoly and the creation of the Utilities Regulatory Authority.

The transformation since then has been nothing short of remarkable. Nobody seems to have anticipated just how widespread and immediate the effects of telecoms liberalisation would be. Some of the expectations outlined in the Infrastructure Regulatory Review appear now to be quite conservative, in some cases landing nearly outside the ballpark.

Perhaps most telling is the report’s contention that ‘low income, low population base, low urbanization and low literacy rate are characteristics which suggest that demand for telecommunications services in Vanuatu is likely to be constrained.’

Experience seems to indicate quite the opposite.
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Universal Access

On Wednesday of this week, Minister Edward Nipake Natapei and Australian High Commissioner John Pilbeam jointly announced the creation of a telecommunications Universal Access Fund. Designed to ensure that communications services reach all parts of Vanuatu, the fund was rolled out with an initial contribution from AusAID of 215 million vatu.

The idea is to allow market forces to work in the vast majority of the country, providing mobile telephone services on a for-profit basis. Digicel’s license terms state that it must make its service available to 85% of the population.

Mobile telephone service costs are tiny compared to traditional land lines. Infrastructure is minimal, and it’s not as susceptible to damage by the elements. Digicel is confident that it can profitably provide services over such a wide area. They’re so confident that they’ve ponied up a significant chunk of cash as a performance bond.

In time we’ll see TVL and smaller, ‘boutique’ operators entering these once marginal markets as well. But there will always be areas in Vanuatu that simply can’t be serviced profitably. This is where government enters the scene. They’ve designated a basket of money that will ensure that everyone from Aneityum to the Torres islands has access to mobile phone services.

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Uncommon Sense

Throughout history, the distance between technology and society has been a defining characteristic of nations, empires and peoples. While it’s tempting to say that the most technologically sophisticated societies represent the pinnacle of human achievement, that’s not necessarily true. Some would argue that keeping social values paramount and learning how to adapt technology to human needs is a more effective means to ensure the health of a society.

Unfortunately, health, happiness and social justice can’t always be judged using objective economic measures. How does one measure crimes that don’t happen, meals that don’t get missed, sick days not taken?

Economic indicators do serve a number of useful purposes, of course. The Pacific Economic Survey – I wrote about it here – includes some extremely useful and instructive data concerning the effects of market liberalisation on communications. It also pointed out some inherent weaknesses in Vanuatu and elsewhere in the region, particularly with regards to technical know-how.

People in Vanuatu could teach many an economist a thing or two about what makes for a meaningful and contented life. But isolation is part of what has made life in Vanuatu simpler and more relaxed, and as that isolation erodes, we find ourselves facing significant technical challenges, some of which have a steep learning curve.

The small group of individuals who have taken leadership in opening the telecommunications market in Vanuatu have been remarkably successful thus far. People close to the process agree that the settlement agreement and the new licenses are extremely well framed. They have learned by the example of those countries who went before, and have created a comprehensive and detailed framework with very little ambiguity. This allows Digicel, Telecom Vanuatu and future entrants to focus on doing business rather than bogging themselves down in legalese, negotiation and other distractions.

But there remains much to be decided, and much to be done:

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