Adoption Of Kenyan Nigerian And Tanzanian Best Practices In Communication Services Provision To Liberalize Telecommunication Sector In Ethiopia

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Globally, the telecommunication sector is under a regular reform process in the form of privatization andrnliberalization of the market as well as establishing an independent regulatory authority to fosterrncompetition and protect the interests of customers from unjust practices of operators. As part of thernglobe, the policy and regulatory framework of the sector in many African countries also encouraging therninvolvement of private operators within the sector provided that they fulfill the necessary requirements tornprovide the service to people. For example, the mobile, fixed-line and internet segments in Kenya, Nigeriarnand Tanzania had multiple operators that provide the services in a competitive way. The respectivernregulatory authority are easing the market entry through introducing convergence licensing framework inrnwhich operators can provide any types of services using any kind of technology if they can do so.rnHowever, privatization, liberalization and other elements of telecommunication reform has not takenrnplace in Ethiopian telecommunication sector even if private sectors are participating in resale servicesrnsuch as cyber café, tele-cente, cable work, etc. The country’s policy and regulatory framework restrictsrnthe privatization of the incumbent and the involvement of private operators to provide mobile, fixed-line,rninternet and other telecommunication services. Instead, it allows the national monopoly of the sector andrna single government-owned operator (Ethio-telecom) solely provides all these services to more than 80rnmillion Ethiopian population. The volatile of the region, the lion share of the sector for financing otherrnprojects as well as unwillingness of private sectors to expand universal services to costly areas are thernmajor reasons for over-handed of the sector by the government.rnThe general objective of this study, therefore, was to assess the experiences and best practices of Kenya,rnNigeria and Tanzania in telecommunication service provision with the intention that Ethiopia can derivernlessons to introduce reform elements in its telecommunication sector. The researcher employed bothrnqualitative and quantitative approaches. The data gathered mainly from secondary sources and interviewrnof the senior officials in Ethio-telecom and MoCIT.rnThe study found that Kenya, Nigeria and Tanzania had improved the accessibility and affordability ofrntelecommunication services as a result of continuous reform of the sector. For example, the Kenyanrnmobile penetration reached 77.3 % in 2013. The regulatory environment protects the customers’rninterests since regulators are fully autonomous. In contrast, the monopoly market structure in Ethiopianrntelecommunication sector had negatively affected the penetration of services particularly, in mobile andrninternet services. The mobile penetration, for example in 2012, was as low as 20.42%. Moreover, variousrnregulatory functions such as customer protection (e.g. through quality service monitoring as well asrncompliant management and resolution) are not properly implemented due to absence of independentrnregulatory authority for the sector and limited capacity of the incumbent. In addition, therntelecommunication voice tariffs had not downwardly revised in recent years due to absence ofrncompetition within the market.rnBased on these findings, the researcher has recommended (if government is willing) that, as part of thernglobe, the Ethiopian government and/or policy makers should consider the reality of the world andrngradually introduce privatization and competition to the sector with establishment of an independentrnregulatory authority. The government should have separate entities for regulation and policy-makingrnfunctions. Moreover, the regulatory environment should protect the customers’ interest throughrnimplementing customers’ charter and service level agreement to specified quality standards so that thernincumbent is accountable when it failed to achieve

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Adoption Of Kenyan Nigerian And Tanzanian Best Practices In Communication Services Provision To Liberalize Telecommunication Sector In Ethiopia

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