Friday, November 5, 2010

Telecommunication operators to have unified license

BY WATIPASO MZUNGU JNR

Malawi Communications Regulatory Authority (Macra) plans to harmonise the country’s telecommunication licenses, a process which will see Malawi Telecommunication Limited (MTL) and Accesss Communications Limited (ACL) joining Zain and TNM in the mobile phone operators.

The new arrangement is called Converged Licensing Framework (CLF) and aims at removing the technology service specifications (barriers) so that only technology and service neutral (unified) licenses can be issued.
CLF was first introduced in Tanzania in 2005 and features four main categories of authorizations: Network Facility Licence (NF); Network Service Licence (NS); Application Service Licence (AS); and Content Service Licence (CS). 

The four authorization categories in the CLF are further divided into four geographic market segments.  These four geographic market segments are: international, national, regional, and district market segments, according to International Communication Union (ITU) website. 

While confirming the development on Friday, Macra Communications Manager Zadziko Alex Mankhambo said Malawi was just responding to the development that is taking place in the information, communication and technology (ICT) sector worldwide.

Mankhambo stated that the new licensing system was designed to encompass technology and achieve service neutrality among players.

“CLF was crafted to match with the dynamism of the communications sector. In addition, the CLF not only ensures regulatory flexibility, addressing market and technology developments, but also ensures efficient utilization of network resources and encourages market entry of small scale operators.,” Mankhambo said.

He explained that in a unified authorization regime, all categories of authorizations have been consolidated into a single service- and technology-neutral authorization.  Thus, a single authorization authorises service providers and operators to provide all services whether at the core or access level, using any technology available. 

The Macra publicist expressed hope that apart from enabling operators to work more effectively, the new system has potential of economically relieving consumers who have long complained of “over-priced telecommunications services”. 

“We are trying to encourage competition so that services become more affordable to consumers which will result in high penetration rate and growth domestic products (GDP),” he disclosed.

In other countries such as Tanzania and Argentina, regulators and policy makers already integrated neutrality, consolidation, and flexibility into authorization regimes by introducing unified authorizations and multi-service authorizations (sometimes also referred to as global licenses). 

These forms of authorizations allow licensees to provide any of a range of services using any infrastructure and technology capable of delivering the desired services, under the umbrella of a single, consolidated authorization, the ITU site explains.

In Malawi, however, the process is reviewing the licenses started this year and is expected to end early next year, according to Mankhambo. 

But the PRO was reluctant to divulge information regarding the cost of the whole project, saying the regulator was still considering various aspects of the project and, therefore, it was hard to value the cost of the project at this stage.

Malawi has a combined subscriber base of 3 million people with a tele-density penetration rate 17.5 percent for mobile phone lines. Only 1.2 percent makes up for fixed lines.

Although telecommunication sector continues to grow in the country, consumers remain unsatisfied with the operators’ services. The cost of making calls remains “prohibitive” to most low earners. This results from lack of competition among players.

Network interruption is another challenge customers are grappling with as they try to make important calls.
END