![Page 1: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/1.jpg)
ITU Arab Regional Workshop on Mobile Roaming: National & International Practices
27 to 29 of Oct, 2015 in Sudan - Khartoum
The Role of the RegulatorPresentation by: Lukas Musembi
![Page 2: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/2.jpg)
IMR not prioritized by regulators
The focus was to open mobile market, creating competition, consumer
protection, interconnection issues…)
Belief that sufficient competition in national mobile market would
spill over to IMR Market
Increase of “Bill Shock” due to rapid diffusion of
smart phones and mobile data applications
Prompting media and political pressure to
tackle the problem of high IMR Prices
Growing Regulatory concern
![Page 3: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/3.jpg)
Consumer empowerment
No advertisement of IMR Charges
When users are informed they don’t
pay attention and they become aware
when travelling internationally
When travelling, a mobile user cannot
usually choose his/her Int’l Roaming
SP
Growing regulatory concern: Lack of
consumer empowerment
![Page 4: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/4.jpg)
Increased use/dependability of mobile services reflected by the growth in mobile services by subscribers when visiting other countries
Growth in International travel (due to opening of economies FDI that stimulated the dvlp of tourism, growth of GDP par capita)
Development of Mobile application for business, tourism and payments
Slow decrease of IMR prices over several past years
IMR prices set by mobile industry
Increase of Machine to Machine (M2M) traffic
Growing regulatory concern…Cont.
![Page 5: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/5.jpg)
Why regulate?
• The market is the best regulator –regulation should only do what markets cannot do, or facilitate the effective introduction of markets
• Regulation is necessary to protect vulnerable consumers
![Page 6: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/6.jpg)
Possible market failure?
Market Failure?
Market forces are weak
When freely functioning markets operating without government intervention fail to deliver an efficient or optimal allocation of resources
Economic and social welfare may not be maximized and there will be a loss of economic efficiency
Main cause: Absent or asymmetric available information
![Page 7: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/7.jpg)
Unilateral regulatory action?
The Regulator from A can:
• Reduce Retail Prices charged by MNO for call made from B
• Reduce the termination charges
This will NOT benefit resident of Country A when travelling but it will benefit other countries visiting A
No Incentive for country A if there is no reciprocity of
such action
![Page 8: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/8.jpg)
Multi-country issue by nature
• No guarantee that unilateral action by one national regulatory authority in its country will on its own lead to reciprocal action in other countries
• Cooperation between regulators and policy makers either bilaterally or within a region is more likely to be more effective than unilateral action by one national regulatory authority.
![Page 9: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/9.jpg)
Regulatory decision making processCollection
of data from
operator e.g using
questionnaires
Analysis of data
Consideration or available regulatory
options
Stakeholders consultations
Decision
?
Post implementation analysis
![Page 10: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/10.jpg)
Optimum tariff setting
Optimum roaming
tariffs
Reflect costs
Encourage appropriate levels
of investment
Appropriate level of
consumption-affordability to consumers
Maximiseprofit
![Page 11: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/11.jpg)
Regulatory options
Remove barriers which may cause high input costs of IMR e.g. remove SIIT, monopolies on international gatewaysRemove barriers which may cause high input costs of IMR e.g. remove SIIT, monopolies on international gateways
Swift complaint resolution frameworkSwift complaint resolution framework
Sharing of information with other regulatorsSharing of information with other regulators
Encourage introduction of various types of roaming alternatives/substitutes e.g MVNO’sEncourage introduction of various types of roaming alternatives/substitutes e.g MVNO’s
Access to free local emergency servicesAccess to free local emergency services
![Page 12: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/12.jpg)
Regulatory options: Consumer empowerment
Protect and empower subscribers to help them to manage their usage of mobile services when abroad
Warning – “applications on Smartphones may incur charges when roaming”
Obligating operators to publish roaming prices (voice, SMS and data) available on mobile operator's web sites.
Information of a technical nature available on web sites –e.g how to de-activate data roaming services while roaming
Information on partner network preferred in a visited country;
Process to follow if subscriber has been inadvertent roaming;
![Page 13: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/13.jpg)
Regulatory options…Cont.
Ensure that there are no obstacles in the market so that any opportunities to create competition are maximised
Initiate and engage in bilateral/ multilateral actions in order to develop an competitive international mobile roaming service market.
![Page 14: The Role of the Regulator - ITU · 2015-11-05 · The Role of the Regulator Presentation by: Lukas Musembi. IMR not prioritized by regulators ... SMS and data) available on mobile](https://reader034.vdocument.in/reader034/viewer/2022042206/5ea8ac614c19544fc17a1ac7/html5/thumbnails/14.jpg)
Conclusion
“Long term solution is the creation of sustainable competition in the IMR market”