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Jerker Torngren
3. USO, a Case study
The Romanian approach to providing access
Jerker [email protected]
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Jerker Torngren
The Romanian telecom market
Fully liberalised 2003 Impressive number of registered fixed network
providers but few making any impact. Very low penetration rate in rural areas High mobile penetration rate but still areas
without coverage Some operators using satellite links
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Jerker Torngren
The consumer perspective
In rural areas only around 10 lines per 100 inhabitants
In general low buying power in rural areas. Many families have relatives in other countries,
demand for profitable incoming traffic. Also high demand for internet services,
including email
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Jerker Torngren
Our Idea
The USAID funded RITI-dot Gov project established a few community centres to test if it would function. EU encourages specific measures for rural and other isolated areas
Key ideas: Telcos to provide connectivity External financing of equipment Local commitment for management and operating
costs
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Jerker Torngren
The Telecentre
The Centre should have: Good connectivity Phone, fax and copy machine Answering machine to record incoming calls when
centre was not staffed Computers connected to the internet Trained staff to help users Possibilities to measure price of each call
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Jerker Torngren
How we did it
Selected a few municipalities with the need and being prepared to contribute.
Signed agreement with the Municipality covering their obligations
Convinced operators to establish connectivity on their own expense for the trial
USAID funded the equipment
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Jerker Torngren
Evaluation and continuation
The experience showed positive results even beyond our expectations!
Based on our very good experiance we submitted a proposal to the Ministry.
The Ministry included, with some modifications, our proposal in its USO policy and has now established a large number of centres.
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Jerker Torngren
The Romanian Community centres
The regulator selected the municipalities. For each village a tender was conducted,
based on estimated cost for establishing and operating.
“negative auctioning” The winning bid considered as the “net cost” to
be covered out of the Fund.
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Jerker Torngren
Partners
The universal service provider; access and equipment
The local administration; management and services to end users
The regulator; monitors the performance and financing
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Jerker Torngren
Not entirely in line with the EU Directive
A community approach instead of individual Not only provision of services but also
equipment Nevertheless financing over the Fund Engagement by both operators and local
institutions. The EU Commission was informed beforehand
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Jerker Torngren
Personal conclusion
The EU Commission understands that transition countries can’t fully meet the USO Directive.
The Commission thus accepts solutions that lead in the right direction
The solutions must not distort competition but encourage new constructive measures
When relevant, keep the Commission informed
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