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The Impact of Regulation on Tanzania's telecommunication sector


In 2005, Tanzania mainland modified its licensing system for electronic communications. Traditional/Vertical licenses, the right to operate a telecom or a broadcasting network and right to provide services on that network) were replaced by Horizontal licenses, the right to operate telecom and broadcasting networks, with a separate license required to provide services on each network. This Converged Licensing Framework (CLF reform was the first of its kind put into practice on the African continent, and allows investors to concentrate on their area of expertise example. network facility, network services, application services, and content services, cross a larger number of previously separate sectors like telecommunications, broadcasting, Internet. This reform should, among other things, facilitate the arrival of telephone services over cable television networks, television services over telecommunications networks, and Internet services over all types of networks.

In order for a Firm or Business to provide Telecommunication services in Tanzania, should make application to Tanzania Communication Regulatory Authority (TCRA) where necessary evaluation will be conducted, the firm will be provided with License. The Licensee (Telecommunication service provider) must comply with the rules and regulations laid down  in  The Electronic and Postal Communications Act, failure to adhere may lead to revoke of license. The Act provisions to Telecommunication services include:

 

Tanzania Communication Regulatory Authority (TCRA), Dar es Salaam


Licensee’s obligation includes;


· Obligation to provide information: Includes Information on Call Detail Record (CDR) of domestic on-net and off-net traffic and International inbound and outbound telecommunications traffic, in TCRA’s format. The licensee shall provide information on statements of tele-traffic terminated in Tanzania or invoices sent to international carriers and licensee plus minutes and revenue from tele-traffic termination. Also any other necessary information related to licensee networks for provision of data, sms, voice services.

  • · Licensee shall permit TCRA or person acting on behalf to Conduct survey and site inspection. Survey and inspection is done in order to facilitate Traffic Monitoring System and compliance according to regulations.

  • · Signaling Data: A licensee shall keep signaling data necessary for tele-traffic management. The signaling shall include origin, destination, service information, time and path of regulations. Licensee is responsible in informing TCRA on signaling system upgrades or changes, with detailed timelines that make TTIM system to function properly

  • · Obligations on charging rates: Licensee should impose higher premium from International inbound traffic without proper CLIP to encourage them to comply CLIP standards. Also a licensee should apply minimum rate for termination of international inbound and transit voice traffic and comply with the rates specified in agreements between licensee and submit to TCRA. Failure to comply with the regulations on minimum charges leads to penalties.

  • · Monitoring process: The Authority is responsible for monitoring licenses as in monthly trend of tele-traffic international, domestic on-net and off-net. Authority monitor parameters relating to quality of service and fraud detection.

  • · Installation of device and their safety: When the device is installed on or under licensee’s network, licensee should exercise safety on such device. When the device is destroyed or damaged the payment will be done as specified in the schedules plus 10% of returns during the period the device remains damaged. In case the device is destroyed by natural calamities TCRA takes full responsibility. If the device interferes with the network, all concerned parties shall take reasonable measures to resolve the problem.

  • · Control of international VoIP: The TCRA shall adopt measures to control international VoIP gateways in Tanzania.

  • · Interference to the Network; International Border Control system and co-location shall not cause any interference in to the network licensees’ equipment, plants, facilities, and equipment of any other licensee including when installation. There should be transmission link between licenses and TCRA. In case interferences occur concerned parties shall take necessary measures to resolve.

  • · Physical access to the co-location space and inspection: TCRA shall determine the procedure regarding physical and inspection of access to co-location space and equipment. In case of damage of co-location plant, network, equipment and facilities rising out of or during the installation, operation, maintenance, replacement or repair shall be reported to TCRA

  • · Operation or maintenance of co-location equipment: TCRA is responsible in for operation and maintenance of co-location. TCRA and licensee should ensure compliance of safety rules and conditions.

  • · Licensee to comply with directives: Every license shall comply with directives and orders from TCRA as issued The Electronic and Postal Communications Act.

The regulations facilitate or inhibit the telecommunications sector. TCRA functions under The Electronic and Postal Communications Act facilitates

  • · Regulation rates and Charges: TCRA set minimum rates and charges that helps to control the prices of the telecom services. Final consumers are able to get communication services at a affordable price rates.

  • · Protecting the interest of consumers in terms of security and standard of service: TCRA regulates standard of services that are provided by the telecommunication companies. TCRA protect consumers by ensuring privacy of information is enhanced.

  • · Promoting efficiency: Regulation authority monitor the performance of the telecom sector by ensuring implementation of ICT applications. This promotes effective competition and economic efficiencies.

In Tanzania the regulations on telecommunications are more advantageous to the final consumers which mostly are people with lower incomes. However, the regulations create bureaucracy and barriers in functioning of telecom companies. TCRA regulates the contents of telecommunication services in Tanzania as a results it hinder freedom of press.

Distinctions between foreign and domestic suppliers of telecommunication services are minimal due to  the presence of regulations. The regulations provide standards on quality and restrict charges by provider. Broadcasting networks to telephone lines prices are nearly the same. With exception of telecommunication services which are owned by the government either partially or by larger percent, tends to be cheaper compared to other private or international suppliers.

  


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