MEMORANDUM ON THE ANNOUNCEMENT REGARDING THE REMOVAL OF THE EXCLUSIVITY GRANTED TO MAURITIUS TELECOM WITH RESPECT TO TELECOMMUNICATIONS

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1. INTRODUCTION

The object of this Memorandum is to submit the views of the Private Sector with respect to the amendments which would need to be made in the existing legislation to give effectiveness to the policy statement regarding the removal of the exclusivity of Mauritius Telecom contained in Section 29 of the Telecommunications Act of 1998 and carried forward in Section 51 of the 2001 ICT Act.

2. COMPETITIVE TELECOMMUNICATIONS ENVIRONMENT

The business community believes that a competitive telecommunications environment will emerge only when :

i. the competitive legal framework is put into place by amending the 2001 ICT Act appropriately ; and

ii. the ICT Authority is strengthened in a significant manner as to be able to enforce the legal framework.

In view of the above, we wish to propose the following amendments in the ICT Act.

3. REMOVAL OF THE MONOPOLY ENVIRONMENT

The following paragraphs should be amended to review the exclusivity of Mauritius Telecom and ascertain transparency in interconnectivity:-

Clauses 51(4) to 51(9) should be deleted.

ii. Clause 31 - 3(a) should be deleted.

iii. Clause 28 - it is proposed to add at paragraph 2, the following items:-

b. Offer interconnection on the same terms and conditions as are offered to their own downstream operations or any other operator; and

c. Interconnection shall be allowed at any technical physical point.

iv. Clause 30 - it is proposed to add at paragraph 2, item(c), as follows:

"The dominant operator shall provide to the Authority the terms, conditions and cost of any information and communication service supplied, including any service provided under paragraph (b) and such terms, conditions, and cost of service will be open to inspection".

In the ICT environment, time is of the essence and we believe that the different time-periods for obtaining licenses, submission of appeals and ICT Awards should be significantly reduced. Accordingly, we would like to make the following proposals:-

Clause 24 - paragraph 6
"The Authority shall within a period 30 days from the date of receipt of the application convey its decision to the applicant".
Clause 28 - paragraph 5
"Where the parties to a proposed interconnection agreement are unable to agree on the terms thereof within 30 days from the date of an application under subsection (2), either party may request the Authority to act as an arbitrator in the matter".
Clause 28 - paragraph 7(a)
"The award by the Authority on the dispute shall be made within 30 days from the date of a request under subsection (5)"
Clause 29 - paragraph 4
"Where the parties to a proposed access agreement are unable to agree on the terms thereof within 30 days from the date of the application under subsection (2) either party may request the Authority to act as an Arbitrator in the matter".
Clause 29 - paragraph 6
"The award of the Authority on the dispute shall be made within 30 days from the date of the application".
Clause 39 - paragraph 7
"Any appeal filed before the Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and the Tribunal shall endeavour to dispose of the appeal within 60 days from the date the appeal was lodged".

4. STRENGTHENING OF THE ICT AUTHORITY

The importance of an effective Information and Communication Technologies Authority (ICTA) during the upcoming transitional phase of telecommunications liberalisation cannot be overemphasised. Successful transformation of monopolistic telecommunications markets into competitive ones requires strong regulatory intervention.

The multiplication of regulatory bodies from a dozen to over 90 around the world during the past decade confirms the need for this fundamental component of the liberalization process and Mauritius is no exception.

In order to be effective in this crucial role, the ICTA requires a set of highly specialised skills in telecommunications, economics, accounting, and law as well as adequate equipment for monitoring purposes.

Over the past years, the regulator has continuously been "l'enfant délaissé" of the telecommunications sector. It is matter of highest national priority that the ICTA be strengthened adequately and without further delay. Without an effective regulator, government's objective of liberalisation will be delayed, the telecommunications landscape will stay at its present status quo, and government's vision of a cyberisland will not emerge due to the absence of innovative, competitive and world class telecommunications services.

5. CONCLUSION

We wish to reiterate our appreciation for the bold decision of the Government to liberalise the telecommunications sector. A competitive telecommunications sector is a key factor in making Mauritius a Cyberisland. The recommendations above have been submitted with a view to establishing a competitive telecommunications environment.

Joint Economic Council
October 2002