African Internet Service Provider s Association AfrISPA AFRICAN REGULATORY INDEX REPORTS. Zambia Report (Region Two) June 2005 Third Draft

Transcription

1 African Internet Service Provider s Association AfrISPA AFRICAN REGULATORY INDEX REPORTS Zambia Report (Region Two) June 2005 Third Draft

2 Table of Contents Preface List of Figures List of Tables Abbreviations 1 Introduction 1 2 Methodology 3 3 Country Profile 4 4 Telecommunications Sector 5 5 The Internet Service Provider Sub-Sector and Market 10 6 Internet Service Provider Association(s), Exchange Point (s) & Arbitrator(s) 12 7 Key Findings 13 8 Concluding Remarks 15 References

3 Preface (The Group Ltd - hereafter TC ) was requested by African Internet Service Provider s Association (hereafter, AfrISPA ) to Study the Telecommunications Regulatory Regimes in Selected African Countries. This report is submitted for exclusive use by AfrISPA and may not be quoted in any document other than by AfrISPA or without prior authorization from AfrISPA. This report is confidential and may not be forwarded to a third party without prior authorization from AfrISPA. This report is based on data from various publications, studies, interviews and articles researched by TC in addition to forecasts and estimates provided to TC by AfrISPA. The ISP market in Africa is very dynamic and though the details provided in this document are based on current market trends both TC and AfrISPA recognize that the market could change radically hence TC may not be held responsible for the validity of these details. This document is a trade secret and its confidentiality will be strictly maintained. Use of the copyright notice does not designate. Copyright 2004/5 by African Internet Service Provider s Association All rights reserved. All intellectual property rights in this work belong to AfrISPA. The information contained in this work must not be reproduced or distributed to others without the prior written permission of AfrISPA, or used except as expressly authorized in writing by AfrISPA. The information contained in this work is subject to change without notice. AfrISPA is neither responsible for nor liable to anyone in connection with this work. Contact Information: General Manager African Internet Service Provider s Association C/o Mauritius Freeport Development Freeport Zone 5, Mer Rouge, Port Louis Mauritius Tel: (230) , Fax: (230) i

4 List of Figures Figure 1: Map of Zambia...4 ii

5 Abbreviations ADSL ASP CA / CAZ CBD CDMA CSP DFID GoZ GPRS GSM ICT ISDN ISP ISPA ITU MCT NFP RSS STD SMS SMSC TC TDMA USD VOIP VSAT WG ZAMPOST ZAMTEL Asymmetric Digital Subscriber Line Application Service Provider Communication Authority / Communication Authority of Zambia Central Business District Code-Division Multiple Access Content Service Provider Department for International Development Government of Zambia General Packet Radio Service Global System for Mobile Phones Information Communications Technology Integrated Services Digital Network Internet Service Provider Internet service provider association International Telecommunications Union Ministry of Communications and Transport Network Facilities Provider Rural Subscribers System Subscriber Trunk Dialling Short Message Service Short Message Service Centre Time Division Multiple Access United States Dollar Voice Over IP Very Small Aperture Terminal Working Groups Zambia Postal Corporation Zambia Telecommunication Company iii

6 1 Introduction AfrISPA is the continental association of African Internet Service Providers, whose objectives are to: Provide industry perspective on policy formulation and regulation as it relates to the Internet industry and to act as an interface with Governmental bodies and the public; Develop policies and positions in the best interest of the Members and to protect and promote these interests in regional and International fora; Promote the development of key Internet Infrastructure on the continent; Promote the development of a free and open telecommunications market; Facilitate the establishment of national ISP Associations in Africa and to provide common services to them; Provide and promote educational opportunities that will enhance and empower technical and policy understanding of the Internet; and Build, maintain, and publish relevant industry data for Members. AfrISPA has retained the TC to undertake various activities, which include: Developing online resources such as: mailing lists, White Papers, FAQs and organizational blueprints; Conducting workshops aimed at empowering ISPs to cooperate/collaborate and establish national ISP Associations; and Conducting advocacy activities to promote the establishment of Internet Service Provider Associations. 1.1 Purpose of Study AfrISPA has specifically engaged the services of TC to study Regulatory Regimes in Selected African Countries, with particular emphasis on how these regulatory regimes impact the operations and growth of the Internet Service Providers (ISP). The reports arising from these studies will be made available to ISPAs in every country on the continent in order to promote strong lobbying for liberalisation, which in turn will result in increased competition, higher quality of service, lower cost of Internet access and an increased reach of the Internet into under-served areas. The desired outcomes of this study include identification of: Regulations that govern operators and service providers of Internet services; Market structure within the communications sector; Legislation relating to the communications sector; Dispute resolution mechanisms available within the sector; Communications Licensing regime; Privileges/Obligations of various licensees; and State of liberalization of the communications sector. 1.2 Scope of Study AfrISPA provided a list of 34 countries within Africa for this study. It prioritised 14 of these and requested TC to cover as many of the others as feasible. TC in consultation with AfrISPA agreed to cover up to 24 countries in all and to start with Priority One countries where possible based on geographical and other logistical considerations. This report covers Zambia as one of the Priority One countries selected for Region Two. 1

7 1.3 Structure of Report This report is organised as follows: Section 1: Section 2: Section 3: Section 4: Section 5: Section 6: Section 7: Section 8: This section contains a background on AfrISPA, the study and the tasks assigned to TC. This section contains a description of methodology used in the study. This section provides an overview of the country under study. This section describes the wider Telecommunications sector and its regulations in the country under study. This section describes the Internet Service Provider sub-sector in more detail and provides an overview of the players. This section provides details on the Internet Exchange Point(s), Internet Service Provider Association(s) and Arbitrator(s) in the country, where applicable. This section details the Key Findings based on the terms of reference. This section summaries the findings and provides some concluding remarks. 2

8 2 Methodology 2.1 Data Collection TC collected qualitative primary data, as the assignment required the examination of the respondents opinion on the market structure and regulatory environment. The main interviewees were drawn primarily from the ISPs, Government, Arbitrator(s) and the Regulator(s). The secondary interviewees on the other hand were drawn from key resources in the ICT industry. The first step involved desktop research to gather and assess background material that could be relevant to the country under study. Because of the nature of the study, TC used open questions designed for face-to-face interviews with people in senior/strategic positions within the selected organizations, and who would be able to provide a clear and strategic view of the organization s standpoint on the regulatory environment. The questions were purposely left open in order to realize responses that were genuine expression of opinion and to allow follow-up questions for clarity, whenever necessitated. The assignment consisted of four phases as detailed below: Phase 1: Research & Data Collection Literature reviews, interviews, country visits and other research related to the collection of relevant information for each country under study. Phase 2: Preparation of Report Collation of information collected in the phase 1 and further discussion and authentication of information for report writing purposes. Phase 3/4: Review of Report/ Presentation of Report Review and Presentation / Production and Dissemination both covered by AfrISPA. 2.2 Data Sample Sampling for this study was carried out at two levels, utilizing TC s resource contacts in the ICT industry supplemented by those of AfrISPA s database of ISPs, Government, Regulator(s) and related contacts in the various countries under study. The lists of potential interviewees were drawn up and discussed with AfrISPA s representatives before appointments were arranged. The sampling was open to ensure that the Regulator, Government, ISPs and as many other players as possible were interviewed. 2.3 Data Collection and Management The countries to be studied were grouped into six regions. Region Two includes Mauritius, Malawi, Zambia and Egypt. Consultants either visited each country or performed interviews via Phone, Fax or to collect information based on the questionnaires developed by the team. Most interviews took 1-2 hours. The consultants met regularly to discuss these findings with AfrISPA. These findings form the basis of the country specific report. The full team of consultants met weekly for debriefing, refining their findings and troubleshooting. This involved reviewing the interview responses from the various countries, synthesizing and digitizing the information for further analyses. Challenges faced in data collection were also discussed and solutions proposed to enhance the process of the study. Specific questionnaires where developed for each category e.g. Government, Regulator, ISP, Arbitrator, and other players. 3

9 3 Country Profile 1 Zambia is located in the Southern Africa region. It borders Angola, Democratic Republic of the Congo, Malawi, Mozambique, Namibia, Tanzania and Zimbabwe. It is a landlocked and sparsely populated country with more than 70 ethnic groups, many of them Bantu-speaking. As of 2004, Zambia population was estimated to be 10.5 million people (CIA, 2004). Zambia is known for its spectacular scenery in places such as the Victoria Falls along the Zambezi River, the Bangweulu Swamps and the Luangwa River valley. Figure 1: 2 Map of Zambia 3 In the late 1960s, Zambia was the world s third largest copper producer, after the United States and the Soviet Union. A collapse in copper prices, oil price shocks, and misguided economic policies in the 1970s had an extremely negative effect on the economy. This was compounded by the contraction of food production. The resulting economic decline was catastrophic, with per capita income falling almost 5% annually between 1974 and Even so, Zambia still receives most of its foreign earnings from copper, and there is some optimism about the future of the industry, following its privatisation in the 1990s and the increased demand occasioned by electronics manufacturers. Economic decline and debt have had a particularly serious impact on poor. Structural adjustment programs, designed by the World Bank and IMF to enable debt repayment, have forced drastic cuts in government spending on social services. As a result, people now have to pay for basic health-care and education. AIDS has also had a disastrous impact on the country. At the end of 2001, more than 1.2 million people in Zambia were living with HIV/AIDS

10 4 Telecommunications Sector This section examines the telecommunication sector in Zambia. 4.1 History of Telecommunications Sector The first form of telecommunication in Zambia, then Northern Rhodesia, was a manual telephone exchange installed in Livingstone in In 1931, the first wireless stations were installed at Mpika and Kabwe and a second telephone exchange installed in Ndola in the same year. Trunk services between Zambia and South Africa were introduced in In 1957, Subscriber Trunk Dialing (STD) and telex Services were introduced in the main urban centres. Manual exchanges were replaced by Strogger step-by-step automatic system in A 960 Channel microwave link between Livingstone and kabwe was commissioned in 1967, followed by Lusaka livingstone link in The same year saw the commissioning of the first satellite earth station. The next 10 years saw the spread of these links to other major towns, including Nakonde and Dhipata. IN 1985, under Zamtel, a Rural Subscribers System (RSS) was introduced as well as the first digital exchange serving as International Gateway. More digital exchanges, a second earth station and second fully digital international exchange were commissioned by The telecommunications industry has traditionally been state-owned, enjoying full monopoly status for most telephony services. Like most other countries, Zambia is currently restructuring its telecommunications sector, through various initiatives, including, privatization and introducing competition in order to enhance service delivery. Zambia telecommunication Company (ZAMTEL) remains the sole provider of the fixed line services in the country, due to prohibitive market entry costs. There has been talk of the introduction of a second and third operator coming on the market, but this has not yet taken place. The liberalization policy of 1992, followed by the telecommunications act of 1994, saw the entry of Mobile Operators in the country. Telecel was the first to market, quickly follow by Zamcell. Zamcell has since changed its name to Celtel. State owned Zambia telecommunication also entered this market a while later. Due to the poor fixed line infrastructure, mobiles services growth has been very rapid. There are now more mobile subscribers than fixed line. The market share for these players is Celtel 48 %, Telecel 31%, and Cell Z 21%. Internet Service Providers (ISPs) are only required to pay a license fee to operate in this market. The national regulator, the Communications Authority of Zambia (CAZ) is a statutory body established by Act of Parliament, Telecommunications Act No. 23 of It regulates the provisions of all telecommunication services, including products and supervises the radio frequency spectrum. 4.2 Current Telecommunications Sector Ministry The Ministry of Communications and Transport (MCT) is responsible for all activities in Zambia s telecommunications industry. It also oversees the functions of the Communications Authority, ZAMTEL and Zambia Postal Company (ZAMPOST) Regulator

11 The Communications Authority (CA) is a statutory body established by an Act of Parliament through Telecommunications Act No. 23 of The Authority was established in July Its jurisdiction covers the telecommunications industry, including licensing and use of the radio frequency spectrum in the broadcasting industry for both radio and TV transmission. The CA is responsible for regulating the provision of telecommunications services and products. Its specific functions include: Issuing licences and promoting competition amongst providers of Telecommunications services and products; Promoting the interests of consumers and other users of ICT services and products; Ensuring that Zambia benefits from investment made in this sector. The Radio Communications Act of 1994 also gives the CA responsibility for administering the utilisation of the Radio Frequency Spectrum for broadcasting, communications and transmission purposes, including but not limited to: Approving sites; Issuing of licences and certificates; and Preventing unauthorized disclosures and obstruction of radio transmissions. The Controller is the Chief Executive Officer of the Authority and is answerable to the Board. The board is appointed by the Minister of Communications & Transport and approved by Parliament. The Communications Authority is currently divided into five Departments as follows: Engineering & Information Technology; Radio Frequency Management; Licensing & Consumer Affairs; Legal; and Finance & Administration. 4.3 History of Telecommunications Regulation In 1994, Parliament passed the Telecommunications Act, which resulted in the restructuring of the telecommunications sector and the separation of the posts and telecommunications functions. This gave rise to two commercial entities: ZAMTEL and the ZAMPOST. This Act also removed regulatory function from PTC and established an autonomous regulatory agency, CAZ. Prior to CA s establishment, the telecommunication company ZAMTEL was also the regulator. However, most operators were not bound to any regulatory conditions and could provide services at their discretion. This resulted in inefficient use of scarce resources like frequency spectrum. The CAZ falls under the Ministry of Transport and Communication. The powers and functions of the Authority are exercised and performed by a Board of Regulators appointed by the Minister. This has led to the general belief by the private sector that the CAZ is an extension of the Ministry and carries out Government orders. Because of this its independence is suspect and it is thought to be biased towards the Government, especially, when it comes to making decisions that affect ZAMTEL. The regulator has come up with proposed guidelines to regulate the industry but this has not been fully affected. 4.4 Current Telecommunication Framework Regulatory Documents Below is a description of some of the regulatory documents governing the telecommunications sector in Zambia. 6

12 The Telecommunications Act of 1994 The only white paper that is now in existence is the telecommunication Act of The Broadcasting Act of 1994 This ACT opened up the market for both radio and television broadcasting in the country. The Broadcasting Act was revised in 2002 and the Independent Broadcasting Authority (IBA) was formed to regulate broadcasting. 7

13 License Categories & Fees The Licenses fall into 3 categories as follows: TYPE A Licenses that require Service Providers to install own and operate public switched telecom network (PSTN) infrastructure facilities. These are categorized as follows: Type A1 - Network Facilities of basic local services; Type A2 - Network Facilities for basic national long distance service; Type A3 - Network Facilities for basic international service; Type A4 - Network facilities for basic rural and urban services to sub-economic areas. TYPE B Licenses that do not require ownership of public telecom network facilities. These are categorized as follows: Type B1 - Basic Voice Services; Type B2 - Data Transport Services; Type B3 - All other services (e.g. Internet service providers, Shopping services etc.); Type B4 - Network facilities for private use. TYPE C Licenses requiring ownership of infrastructure facilities for cellular mobile and paging services. These are categorized as follows: TYPE C1 - Local mobile cellular services; TYPE C2 - National mobile cellular services; TYPE C3 - Low Earth Orbiting (LEO) Satellite based national mobile cellular service; TYPE C4 - Paging services. Service providers with Type B licenses are allowed to either offer telecom services using facilities provided by one or more of the Type A1-A4 licenses, or own and operate facilities for their private use (Type B4 licenses). For Type A and C licenses, Service Providers are licensed through a tender process, with the highest bidder winning the license award. Bidders are required to post the Bid Bonds to enter the competitive tenders, for the following licenses: A1 License (local service) A2 License (long distance) A3 License (international) A4 License (rural/poor urban) C2 License (mobile) Type B license is granted through an open applications process. Qualifying criteria for bidders and approval guidelines for all licenses are published in advance of license award for each process. Radio communications License The regulated spectrum ranges from 9 KHz to 400 GHz. The Communications Authority allocates frequencies to ensure equitable access on non-discriminatory basis. However, an assignment/license of frequencies to a radio station does not provide for exclusive use of the frequencies. Applications for broadcasting licences are channelled through the Permanent Secretary, Ministry of Information and Broadcasting for initial consideration

14 Annual Fees All licensees are also required to pay operating fees based on a percentage of their net revenues. For this purpose revenue is defined as gross revenues less VAT. Specific fee percentages are attached to each license category, as follows: 5% for most telecommunication services, and 0% for basic services to rural areas. Appendix E provides details of the complete licensing fee schedule and Tele-centre operating Fees Operators Fixed Line Operator Provision of PSTN services has been liberalized, but entry to the market is expensive and prohibitive. Currently the entry requirement is set at 50m USD and is subject to Government tender regulations through the Ministry of Communication and Transport. This has resulted in the state owned telecommunication Company, ZAMTEL, being the sole provider of the Public Switched Telephony Network (PSTN). No potential operators have sought to enter the PSTN market. The Communication Authority is now reviewing this entry requirement and the minimum investment requirement will be reduced to attract more players on the market, especially those who are willing to offer their services in the rural and underserved areas. Mobile Operator The Cellular Mobile service sector consists of three operators. The first company to offer mobile services in Zambia was the state owned ZAMTEL, which started services in 1995 servicing the capital city Lusaka and the Copper belt provinces. The other companies are Telecel and Zamcell, now Celtel, which began operations in 1997 and 1998 respectively. Telecel and Celtel are primarily foreign owned with the Zambian partners having minority shares. The current requirement specifies that Zambian shareholders hold a minimum of 30% of the shares. Internet Service Providers Zambia currently has 9 licensed Internet Service Providers. However, only 5 of these are operational. They are ZAMNET, CopperNet, ZAMTEL Online, UUNet Zambia and Microlink. Details of the ISP operations are provided in the next section. 6 Performance of the Country ICT Sector, John Slaighter Munsaka, University of Zambia 9

15 5 The Internet Service Provider Sub-Sector and Market 5.1 History of Internet Service Provider Sub-Sector Zambia was one of the first countries in Africa to adopt Internet communications through ZAMNET in However, the growth and penetration of Internet has been very slow compared to other countries in Africa. The growth was limited to areas long the rail routes with little or no penetration in the rural markets and underserved urban markets. The high cost of equipment and poor telecommunication infrastructure is largely to blame for this trend. Various service providers have been licensed to operate Internet services but only five companies are operational. State owned ZAMTEL operates the country s main satellite gateway, but has experienced service quality issues. ISPs have been forced to setup independent gateway connections because of ZAMTEL s high costs and low quality international bandwidth service. The regulator charges ISPs 1000 USD per VSAT node per year excluding bandwidth costs. There are no legal restrictions to market entry for new ISPs and the $40,000 entry fee previously charged for an ISP license has been revised downwards to US$ There is no statutory requirements set by the Communications Authority, except the arbitrarily limit of 75% foreign ownership for ISPs and similar value-added service licensees. Other regulatory barriers include delays in spectrum allocation and licensing requirements for wireless Internet provision. 5.2 Current Internet Service Providers Below is a description of the 5 operational ISPs in Zambia: ZAMNET Communications Systems This was the first ISP in Zambia and is wholly owned by the University of Zambia. ZAMNET is the market leader with approximately 40% of the dial-up subscriber market. It operates three VSAT-enabled Points of Presence (POPs) in Lusaka, Kitwe and Livingstone. ZAMTEL Online ZAMTEL Online is a division of ZAMTEL. It was Zambia s second ISP. It provides dial-up, leased line and wireless Internet access and is the only ISP in Zambia that provides local calls access to its clients through virtual POPs in all major towns and exchanges. All Internet access calls to ZAMTEL Online are metered as local calls regardless of origin. This has significantly reduced internet related access charges. However, some cross-subsidization, lockout and over-change issues have been brought forward against ZAMTEL by some ISPs. CopperNet Solutions CopperNet Solutions has the second largest (ISP) market share in Zambia. Formerly ZCCM Internet services, CopperNet is currently a joint venture between Caveman Securities (Cavemont merchant Bank) and a team from ZCCM. CopperNet operates two VSAT-enable POPs in Lusaka and Kitwe. Its main focus is on the provision of Internet access, voice and data communications lines including virtual private networks (VPNs.) 10

16 UUNET Zambia UUNET Zambia began operation less than two years ago and is relatively new in the Internet market in Zambia. UUNET Zambia principal shareholders are UUNET Africa, a joint venture between UUNET South Africa, a subsidiary of MCI (USA) and Africa Lakes Corporation (ALC). UUNET Zambia s principal business focus is on the provision of network connectivity solutions for corporate companies and other organizations. Starting from a low but rapidly growing blue chip customer base, and with deep financial and management support from a strong international corporation, UUNET is poised to become a major player in the ISP space in Africa. Microlink Zambia Microlink Zambia, like UUNET began its operations recently and is part foreign owned. It has been in service for less than three years. Its main focus has been on the VPNs as well as the dial up customers. Being a new entity, Microlink has yet to beak through into the corporate market. 11

17 6 Internet Service Provider Association(s), Exchange Point (s) & Arbitrator(s) 6.1 Internet Service Provider Association There is no statutory body or association for Internet Service Providers. However, plans are currently underway to establish one, which is currently driven by some of the ISPs. 6.2 Exchange Point The telecommunications (interconnection) regulations CAP 469, section 8 requires all network operators to interconnect with other licensed operators on commencement of service. However, the Internet service providers have not done so as exchange points do not exist. Again, initiatives are currently underway to establish one. 6.3 Arbitrator Prior to formation of the regulator, the government played the role of arbitrator through the Ministry of Infrastructure. Currently, disputes are handled by the Regulatory Board. In the event that resolution is not reached, such cases may be referred to the court. 12

18 7 Key Findings 7.1 Regulation & Awarding of licenses Even though the fixed line service provision is liberalized, the incumbent ZAMTEL remains sole player due to prohibitive market entry conditions. Anyone can apply to provide telecommunications services in Zambia as long as they meet the basic entry requirements. Foreign ownerships issues are not totally clear and ISPs currently believe a 25% local shareholder requirement exists. 7.2 Licensing & Fees The Licenses fall into 3 categories, Type A, Type B and type C (details in Appendix D). There are no legal market entry restrictions for new ISPs and the $40,000 entry fee previously charged for an ISP license has been revised downwards to US$ Though there are no specific statutory requirements, the Communications Authority has arbitrarily set a limit of 75% foreign ownership for ISPs and similar value-added licenses. All licensees are also required to pay operating fees as a percentage of net revenues, defined as gross revenues less VAT. Specific percentages differ for license categories. 7.3 Frequency Allocation & Gateways Communication Authority Zambia administers the radio spectrum on behalf the government. The frequency spectrum had formally been abused when in the hands of the ministry as players tended to disregard the allocations. The regulated frequency spectrum is wide and ranges from 9 KHz to 400 GHz. Frequency allocations do not mean frequency dedication. This means the regulator does not guarantee exclusive rights over any spectrum and any other user may be allocated the same frequency. Though there have not been any reported cases of double allocation, the current users are prone to signal interference even Applications for broadcasting licences are channelled through the Permanent Secretary, Ministry of Information and Broadcasting for initial consideration. This requirement opens an avenue to political considerations particularly since the regulator cannot overrule the Ministries decisions. ISPs are generally forced to implement independent VSAT systems, as the current international bandwidth tariffs available through the state owned ZAMTEL are prohibitive. 7.4 Interconnection & Infrastructure The telecommunications (interconnection) regulations CAP 469, section 8 requires all network operators to interconnect with other licensed network interconnect operators on commencement of service. However, no internet exchange points exist hence such regulations cannot be enforced. As the only PSTN provider in the country ZAMTEL has monopoly access to PSTN clients and therefore charges differential pricing between its own ISP and other ISPs. This does not provide an even playing field for all the players. 7.5 Settlement of disputes Prior to formation of the regulator, the government played the role of arbitrator through the Ministry of Infrastructure. Currently, disputes handled by the Regulatory Board. In the event that it fails to do so, such case may be handled by the court. 13

19 However, this scenario does not provide for complaints against the regulator itself or the government. Furthermore, the courts may not be conversant with the issues and technologies involved in this sector. 7.6 Public (ISP) Consultation and ISPA There is no statutory body or association for Internet Service Providers. However, plans are currently underway driven by some of the ISPs to establish one. ISPs are therefore at the mercy of the regulator and the incumbent, as an ISPA to handle their issues does not exist. 7.7 IXP ISPs in Zambia are interested to and are required to connect, however, as an exchange point does not exist this has not been possible. Discussions are currently underway to establish one. The only interconnect agreement are those between independent ISPs and the Incumbent for either PSTN or international gateway services. 14

20 8 Concluding Remarks Zambia has changed from being a fairly promising market in the 70s to regressing one in the late 90s, primarily due to the drop in price of its main export - Copper. Over the same period the country has changed from being a closed Telecommunications sector with all services provided and controlled by the government, to one with a few private sector players providing services across the country. However, the telecommunications restructuring programme has not been moved to its logical conclusion. The Incumbent was restructured into two different bodies, and the creation of a regulator. However, the arbitrator and regulator function are still provided by one body with little recourse in case of dispute. The incumbent Telco is also a competitor and also provides services to the ISPs. This does not provide for a fair playing field for all players. The regulator in effect reports to the parent ministry and can therefore not be seen as fully independent. An independent ISPA does not exit and the ISPs do not have a single or strong front to address the government, regulator or incumbent. The private sector players are also fairly new and do not have the clout or financial independence to strategically be involved in the development of issues and policy with the government. 15