Role of Independent Regulator for keeping Internet Open and Secure

or for Strengthening transit capacity of Tajikistan

2nd Central Asia Internet Symposium: Perspectives for Internet Development in Tajikistan

March 02 2016, Dushanbe, Tajikistan

Openness as a founding principle of Internet

The Internet is for Everyone...

…- there is no central authority that designates or permits different classes of Internet activities:

Supports innovation without requiring permission (by anyone): Any person or organization can set up a new service, that abides by the existing standards and best practices, and make it available to the rest of the Internet, without requiring special permission. The best example of this is the World Wide Web – which was created by a researcher in Switzerland, who made his software available for others to run, and the rest, as they say, is history. Or, consider Facebook – if there was a business approval board for new Internet services, would it have correctly assessed Facebook’s potential and given it a green light?

Accessible – it’s possible to connect to it, build new parts of it, and study it overall: Anyone can “get on” the Internet – not just to consume content from others, but also to contribute content on existing services, put up a server (Internet node), and attach new networks.

The Internet requires some basic agreements and...

...social behaviour – between technologies and between humans:

Based on interoperability and mutual agreement: The key to enabling inter-networking is to define the context for interoperation – through open standards for the technologies, and mutual agreements between operators of autonomous pieces of the Internet.

Collaboration: Overall, a spirit of collaboration is required – beyond the initial basis of interoperation and bi-lateral agreements, the best solutions to new issues that arise stem from willing collaboration between stakeholders. These are sometimes competitive business interests, and sometimes different stakeholders altogether (e.g., technology and policy).

Tajikistan as a communication hub

In his 2016 message to Majlisi Oli of Tajikistan (Parliament) from January 20 2016, Mr. President once again stated the importance of three strategic goals in the National Development Strategy 2030:

“Our earlier declared three national objectives remain as priority in this document and we are strongly intended to ensure their achievement in the nearest future. These objectives will qualitatively change in upcoming period in order to ensure transfer (1) from energy security to efficient use of electricity, (2) from eliminating communication deadlock to transforming the country into a transit country, and (3) from ensuring food security to providing public access to quality food.”

Tajikistan as a communication hub

In his 2016 message to Majlisi Oli of Tajikistan (Parliament) from January 20 2016, Mr. President once again stated the importance of three strategic goals in the National Development Strategy 2030:

“Our earlier declared three national objectives remain as priority in this document and we are strongly intended to ensure their achievement in the nearest future. These objectives will qualitatively change in upcoming period in order to ensure transfer (1) from energy security to efficient use of electricity, (2) from eliminating communication deadlock to transforming the country into a transit country, and (3) from ensuring food security to providing public access to quality food.”

Communication = transcommunication + telecommunication

6. Leadership of ministries, state agencies, non-governmental organizations and private companies that are active in implementation of information and communication technologies:

promote collaboration in designing and implementation of initiatives on e-government and learn experience of advanced in this term countries;

in order to contribute in enhancement of civil society in the country, incremental transformation of bureaucratic system and bureaucratic mindset and provision of transparent interaction of the state and citizens and turning the Republic of Tajikistan into an advanced communication transit country of the region.

First session of the ICT Councilunder the President of Tajikistan on February 4 2011

ICT Hub(Digital CASA, the World Bank Group)

Tajikistan

Telecommunication Market Snapshot(Source: Communication Service under the

Government of Tajikistan 2015 press conferences) Market liberalization policy has started since 1997 Licensees – 205 Number of mobile communication customers – 11.3

million Active users – 6.4 million (taxpayers)

Number of fixed telephony customers – 0.4 million Number of Internet users – 3.8 million (taxpayers) Deployed communication technologies:

xDSL,Fiber-optics, GSM, 3G – 2005 4G (WiMAX) – 2008 4G (LTE) - 2012

Some Domestic innovative solutions and/or technological inventions

Services across the Internet NGN (Next Generation Network):

~ 80,000 users (for BT only). Intercom, Eastera, Telecom Technology also provide this VoIP service

WMNT – Concept of 5G, patented in 2008 ICT-enabled Services

Payment systems domestic companies work across the region in:

Afghanistan, China, Kyrgyz Republic

2011

2012

2013

2014

0.00 TJS 1,000.00 TJS 2,000.00 TJS 3,000.00 TJS

1948.828

2282

2640

2673.6

350.78904

410

475.2

481.248

Taxes to the State Budget from the industry (mln Somoni)Revenue of communications industry (mln Somoni)

ICT Market Revenue, 2011 - 2015Adapted from Communication Service Report

The

teleco

mmunica

tions

indust

ry is

in the

top-5

list

of inv

estmen

t-attr

activ

e

sector

s.

However...

These interferences of the regulator in the market contradicts the state policy of Tajikistan to strengthen the telecommunication transit capacity of the country in Central Asia and resulted to an immediate decline of revenues.

In 2007 the liberal policies of telecom sector came to an end Re-inventing of the state-owned telecom operator OJSC

«Tojiktelecom», with about 6% of share in the market, as a monopolist to control 94% of the market

OJSC Tojiktelecom

SEU Pochtai Tojik

SEU Electro-magnethic compatability and radiomonitoring

Other subordinated to CS enterprises

Mobile and Internet providers

0200

400600

8001000

12001400

16001800

2000

97.4

6.2

6.3

1.4

1879.9

19.6

2.8

873.6

Revenue of the ICT market in 2012

Revenue from service provision to publicRevenue in TJ Somoni, mln

6%

94%

Revenue of CS en-terprisesRevenue of Mobile and In-ternet providers

Revenue of CS enterprises

Revenue of Mobile and Internet providers

0 200 400 600 800 1000 1200 1400 1600 1800 2000

111.3

1879.9

20.034

338.382

Contribution to State Budget, mln TJS Revenue, mln TJS

2012 2013 2014 2015-5%

0%

5%

10%

15%

20%

-5%

0%

5%

10%

15%

20%

Revenue in %

Compa

red w

ith a

growth

of 15

% in

2013

, the

reven

ues

in the

ICT

market

decre

ased

in 20

15 by

15.9%

.

Decline in Market Revenue

Status quo of Telecom Regulation in Tajikistan

Sector-specific regulation Not independent (running state-owned operator,

funded by the state budget) Policymaking + Implementation of Policy

(regulation) + Operating in the market

The incumbent telecommunications regulator combines policy, regulatory and operational functions managing state owned enterprises.

Why Independent Regulator is important?

The role of Independent Regulator

Development of a viable domestic ICT industry and attraction of foreign investment.

This is why the World Trade Organization in its regulatory framework for basic telecommunications services (“Reference Paper”) requires the establishment of a regulator who is independent not only from commercial operators but also from interferences by state authorities.

By joining the WTO in March 2013, Tajikistan committed itself to comply with the obligations set out in the Reference Paper, including establishment of an indepdent regulator

The speedy establishment of a truly independent and competent regulator is of crucial importance not only for the ICT industry but also for the entire Tajik economy.

Decision No.691 from October 31 2014

The main objective of the Program is creating a favorable environment for the development of small and medium enterprises, attracting foreign investment, strengthening bilateral and multilateral cooperation with the WTO members and providing the advantages of the WTO membership for the business community, by taking the necessary measures to accelerate reforms in various sectors.

Decision No.691: Table V, Action 3

Advantages of Independent Regulator

Predictable regulatory processes attract investors Regulator adheres to the rule of law Reduced regulatory risk Enhanced confidence in and credibility of the

regulators It is important to Tajikistan to achieve its 3 strategic

goals, in particular overcoming the communication isolation through introducing the country as a telecommunication hub of the region

Indepedent Regulator...

«It does not imply independence from government policy, or the power to make policy, but rather independence to implement policy without undue interference from politicians or industry lobbyists. It implies independence to acquire specialized skills, to manage without interference and to be accountable for results according to specified performance criteria. In principle, it is no different than a delegation of specific responsibilities, authority and accountability for the performance of specific activities, as takes place in any large organisation.» (Melody 1997: 19-20)

Indepedent Regulator...

«It does not imply independence from government policy, or the power to make policy, but rather independence to implement policy without undue interference from politicians or industry lobbyists. It implies independence to acquire specialized skills, to manage without interference and to be accountable for results according to specified performance criteria. In principle, it is no different than a delegation of specific responsibilities, authority and accountability for the performance of specific activities, as takes place in any large organisation.» (Melody 1997: 19-20)

Indepedent Regulator...

«It does not imply independence from government policy, or the power to make policy, but rather independence to implement policy without undue interference from politicians or industry lobbyists. It implies independence to acquire specialized skills, to manage without interference and to be accountable for results according to specified performance criteria. In principle, it is no different than a delegation of specific responsibilities, authority and accountability for the performance of specific activities, as takes place in any large organisation.» (Melody 1997: 19-20)

Indepedent Regulator...

«It does not imply independence from government policy, or the power to make policy, but rather independence to implement policy without undue interference from politicians or industry lobbyists. It implies independence to acquire specialized skills, to manage without interference and to be accountable for results according to specified performance criteria. In principle, it is no different than a delegation of specific responsibilities, authority and accountability for the performance of specific activities, as takes place in any large organisation.» (Melody 1997: 19-20)

Indepedent Regulator...

«It does not imply independence from government policy, or the power to make policy, but rather independence to implement policy without undue interference from politicians or industry lobbyists. It implies independence to acquire specialized skills, to manage without interference and to be accountable for results according to specified performance criteria. In principle, it is no different than a delegation of specific responsibilities, authority and accountability for the performance of specific activities, as takes place in any large organisation.» (Melody 1997: 19-20)

Two roads

From landlocked developing country to a cyberdeveloped country

From landlocked developing country to a cyberlocked developing country

Two roads

From landlocked developing country to a cyberdeveloped country – incumbent regulator

From landlocked developing country to a cyberlocked developing country – independent regulator

Thank You for attention!

Asomuddin AtoevExpert on ICT for Development

MSc Computer ScienceMSc ICT for Development

asomiddin@gmail.com