Jordan Times
Thursday, October 21, 2004
Cabinet endorses TRC
program to issue new licenses for fixed services
New programme will end Jordan Telecom's monopoly and fully open the
market to competition
AMMAN (JT) — The Council of Ministers, during its meeting on Monday, approved
the TRC's proposed licensing programme, which will fully open the fixed
telecommunications subsector to competition as of Jan. 1, 2005.
The new licensing programme introduces a simple integrated licence that permits
the licensee to offer any service, and within the context of application
procedures and initial fees, places no limit on the number of licences that will
be issued, or upon the type and range of non-public mobile wireless services
that may be provided, or on the types of associated networks used (except as
required by considerations relating to normal network safeguards, security, use
of scarce resources and technical limitations).
This new licensing framework, according to TRC Chairperson and CEO Muna Nijem,
will enhance competition and bring better and more affordable services to the
customer.
The proposal was submitted to the Cabinet for deliberation following an open
consultation with public and private sector stakeholders, according to a
statement released by the TRC yesterday.
The programme is based on best international regulatory practice, the input
received from the telecommunications sector and the needs of the Kingdom's
telecommunications consumers.
The new licensing programme is required by the government's Policy Statement on
the ICT Sectors and the Postal Sector, published in 2003, in which it reaffirmed
that the monopoly status enjoyed by Jordan Telecom would cease on Dec. 31, 2004,
and that the fixed subsector would be fully opened to competition at, or, as
soon as is practically possible after Jan. 1, 2005.
The new programme, according to Nijem, is better suited for new realities in the
sector, where technological convergence has produced considerable overlap,
making many divisions insignificant.
The new regime will reduce progressively the need for regulatory intervention
and permit licencees to enter the market when they see an opportunity to improve
service or to offer lower prices, the statement said.
If any licencees are inefficient or overpriced they will be forced by the market
to amend their ways or they will be driven out of business. It should,
therefore, deliver clear benefits to customers.
“This,” Nijem said, “is at the heart of the TRC's mission, to ensure the best
high quality service for customers at just, affordable and reasonable prices.”
According to Nijem, the approval of the licensing proposals will not produce
changes overnight, but, as new entrants join the market, the benefits of
competition will show their effects, both from what the new players offer, and
from the incumbents who see that they need to improve their services and hold
prices in check if they are to retain customer loyalty.