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Regulatory Aspects
The concept of Independent Regulatory Entity has a conspicuous historical absence in most of the African states. In the context of ITU and SADCC, the concept was advocated during the nineties and donors financed the institutional development of IRE in e.g. Angola, Malawi, Mozambique, Botswana, Lesotho, Uganda, Ghana and Tanzania (of which none have really independent regulators, though Uganda, Tanzania and Botswana are at least effective).
The models were based on a selective interpretation of north European regulatory institutions. In both Denmark and Sweden the “independence” is based on a division of work with Competition Councils as well as the legal system. In France and Germany special committees are distributing radio frequency licenses. The institutions are manned by capable civil servants and draw on formal and informal networks. The media support may be crucial if the independence is violated.
In contrast the IRI in African countries was equipped with very varying powers regarding formulation of licenses in a context of weak or absent competition bodies and weak institutional traditions of independent regulation. The entity must establish relations with the incumbent operator used to having direct client/patron relations with the patrimonial state. Exceptions to this picture were Botswana and Mauritius, where a competent civil service ensured some protection against neo-patrimonial practices.
At the end of the nineties, 23 countries have established or are in the process of establishing regulatory authorities, and all African countries, except perhaps the smallest countries, are expected to have independent regulators. While the legal creation of these regulators arises from the adoption of new telecommunications legislation, which also includes elements required to deregulate the sector in almost all cases, it was noted in a report from the European Union (BIPE 2000) that the establishment and entry into force of regulators has often dragged along and that the deregulation and privatisation processes have often been undertaken in the absence of a regulator.
On the whole continent a majority in 2001 allows competition in mobile cellular networks. The ITU Update (ITU, 2001) finds that a new breed of pan-African mobile companies has created this huge expansion. These companies – such as Mobile Telephone Networks, Orascom Telecom and MSI - are stringing together regional networks. As of the year 2001, a majority of countries on the continent allow competition in mobile cellular networks covering no less than 100 networks. This is up from 7 per cent of the countries in 1995, which only covered 33 networks.
The countries cannot be compared to cellular networks, given that mobile networks have started up recently and their absence of a homogenous base.
Figure SEQ Figure \* ARABIC 4 – Number of cellular subscribers (BIPE 2000, 36)
The situation of some countries shows that in 2000, the number of mobile subscribers had already exceeded the figure for the number of fixed lines or is very close to this level:
|
Situation in 2000 1000 |
Fixed lines |
Cellular subscribers |
|
Ivory Coast |
264 |
450 |
|
Uganda |
58 |
127 |
|
Nigeria |
92 |
30 |
|
Botswana |
150 |
200 |
|
Guinea |
62 |
42 |
|
Sub-Saharan Africa |
4 558 |
3 244 |
ITU Telecommunication Indicators Update Oct 2001. www.itu.com
For the whole of Africa (the Economist 2002, February) the service provision has virtually exploded to the level of 30 million handsets (also including South African and North Africa). One forecast (ITU Telecommunication Indicators Update Oct 2001) estimates almost 100 million mobile users in Africa by 2005, or three times the number of fixed-line subscribers. Thus, the mobile networks exude a very different kind of dynamic than the fixed networks. Growth has increased from 1997/98 in e.g. Ivory Coast, Uganda and Botswana as well as a number of other African countries.
The ITU update detects three major reasons behind this growth: the general upturn in African economies from the mid-nineties with economic growth averaging 4 per cent a year, the liberalization of service provision involving competition as well as characteristics of this type of service production (e.g. pre-paid cards).
Thus, Africa is experiencing major change in the structure of its telecommunications sector at the turn of a new century. Boosted by the arrival of mobile services and by regulatory development that allows new suppliers, the telecommunications sector is experiencing significant growth which is principally benefiting mobile telephony. The countries that deregulated mobile telephones rapidly are the first to enjoy the fruits of these services.