HomeInterviewTunisia: INT Chairman pinpoints bad practices of telephone operators

Tunisia: INT Chairman pinpoints bad practices of telephone operators

The National Telecommunications Authority (INT) is a specialized agency established in January 2008. Its mission is to contribute to developing the telecommunications sector. It provides an environment conducive to investment by creating a healthy and fair competition. It is also “the INT that examines disputes relating to the installation and operation of networks pertaining to interconnection, unbundling of the local loop, physical collocation, the common use of infrastructure and any other telecommunications service. Because of several structural failures, this body has not been able, for some years, to fully play its role as regulator of telecommunications where chaos prevails. These failures are attributed to non-compliance with commitments made, commercial offers not always transparent, prices and rates that do not follow the rules, not to mention the existence of the dual control of the Competition Council. Since his appointment at the head of INT, ten months ago, Kamel Saadaoui tries to bring new discipline and order to this authority. The INT Chairman spoke to AfricanManager, pinpointing the bad practices of this sector.

Interview:

How does the chairman of the Tunisian regulatory authority view the telecommunications sector in Tunisia, especially in terms of quality of service and prices?

Today we see a remarkable difference between the rates of calls “on-net” (calling and called parties in the same operator) compared to a call “off-net” (calling and called parties in two different operators). This phenomenon promotes the “network effect,” and this does not promote competition between “dominant” operators and “new entrants.” On the other hand, the call termination (TA: costs paid by an operator A to operator B relating to the call of its client to network B) is not always consistent with the retail rates. With regard to fixed telephony services (including Internet access xDSL), the historical operator provides to its competitors wholesale rates higher than retail rates. It may be right, since its tariff rebalancing project (upward revision of its tariffs to avoid selling at a loss) has not been completed. Given this situation, the INT has initiated a major project whose purpose is to check the actual costs of wholesale services and interconnection for each operator. Our goal is to bring gradually the necessary corrections to our telecom market. It is clear that monitoring this economic component is an important and crucial factor for regulation.

Regarding the quality of service (QoS), INT has hired two specialized firms to ensure control of the QoS of each operator, according to standard indicators, and this for (2G/3G) mobile networks and xDSL Internet access.

Reports will be published regularly at the site of the INT (http://www.intt.tn/). We believe this approach will put more pressure on operators regarding the quality of service.

Does the INT have now the legal and financial means to play its regulatory role?

The INT has financial means to fully play its regulatory role through the engagement of research and assistance projects, thus participating in the development of skills of its managers and providing reliable tools for decision.

As for legal means, it should be noted that several deficiencies were identified during a critical study on the legal and regulatory framework for telecommunications in Tunisia. As an example we quote the following:

The relationship between INT and the various institutions involved in the sector, including the Council of Competition is not clear.

The Telecommunications Code has not provided procedures for appealing specific decisions of the INT. This has led to the enforcement of general procedures for appeal before ordinary courts, amongst which the suspension of the appealed decisions in conformity to the principle: the appeal suspends the execution of the decision. Thus, the INT found it difficult to enforce several of its decisions challenged by the operators through an appeal before the Court of Appeal of Tunis.

The power of INT in matters of sanction is limited. Indeed, the amount of the fine that may be imposed is not a deterrent (1% as ceiling).

The INT has been so far an authority whose chairman and members are appointed by the Ministry, in particular. Does the INT consider itself independent enough to make a serene and real diagnosis of the state of competition in the sector?

in 2011, the Ministry of Technology has never tried to intervene neither in decisions of the INT, nor in the studies undertaken by the authority under its powers, including the study on the state of competition and the study of wholesale offers in the telecom sector. However, it is important that this independence is confirmed in a definitive manner. This may also involve a new way to choose the chairman and members of the College of INT.

The INT is not the only one to judge the competition in its sector. There is also the Competition Council. Which side should we believe?

Indeed, the INT does not have an exclusive power in matters of competition in the telecom sector. According to the regulations in force, the Competition Council shares the same prerogatives and powers with the INT. This situation was originally a source of conflict of competences (eg, operators can lodge a complaint with the INT and the Council on the same subject matter as well, the Council may examine cases related to the field of telecommunications). In an area regulated as telecommunications, it is not normal to involve the Competition Council, otherwise why create a specialized authority.

We believe it is reasonable to allow operators to have another recourse if they would not agree with the decisions of the INT. The tribunal can play this role, and this must be specified in the Telecoms Code and its implementing regulations in order to avoid this confusion.

A new telecommunications code is reportedly being prepared. What are its priorities?

We launched a tender to select a firm that can offer us a new telecommunications code, taking into account best international practices. But it is up to the Department of Communications to decide whether to change the current Telecom Code and its implementing regulations.

The priorities of the authority are:

Strengthen and further clarify the role of the telecoms regulator.

Simplify procedures and facilitate investment in the sector, including in the field of virtual operators.

Clarify the texts governing the ISP (Internet Service Provider) activity.

Introduce the concept of Internet Exchange Point (IXP).

Redefine the concept of universal service.

Facilitate the deployment of VoIP services

Strengthen the principle of technological neutrality.

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