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The modern world

ABSTRACT

In the modern world, ICT is considered as the fundamental engine of the global information society. The short and long term development strategies in many countries lay on the development, availability, and affordability of ICT services. The implementation of different state projects and plans is highly facilitated by ICT applications. The communication sector, among other ICT tools, becomes then the main facilitator of economic development in each country.

The most important investment within the communication sector is aimed at encouraging the private sector to contribute to sustainable development of the country. The success of this investment goes with market liberalization where competition, privatization, and regulation are set up and maintained as indicators of economic growth.

Rwanlawi is recommended to relay on liberalization and privatization of communication market during its communication reform. This will enable the President of Rwanlawi to successfully implement country projects and consumers in Rwanlawi will be provided with high quality of communication services at low and affordable costs.

The regulatory institution is needed in Rwanlawi so that the Government makes sure that the public is protected against incompetent or unethical practitioners.

The realization of accessible and affordable modern communication services to all Rwanlawi citizens by introducing "voice, data and media" system will be an important opportunity for the communication end users.

The advisory paper will be developed basing on the following requirements:

INTRODUCTION

Rwanlawi is located in an isolated position 1,000Kilometers from the nearest Advanced Information Society, which is known as Great Afrigeria.

Today, 35,000,000 populations are served by a monopoly fixed line carrier with a tele-density of 1.1%. The fixed lines are focused on the Capital City (Zapitar), which is home to 5,000,000 people and 10% penetration has been already achieved.

A few people in rural areas have access to a telephone. People of Rwanlawi are not enjoying communications services due to the monopoly and unavailability of diversity of communication services namely Mobile communications and Internet network backbones.

The population are not for sure covered by communication network. Consequently, apart from Zapitar people, the great number of Rwanlawi people is not provided with communications facilities.

The low GDP of US390$ per capita classifies Rwanlawi among the Least Developed Countries as there is no other communication means like Mobile telephones, Wireless communication and Internet services that can increase income to the Rwanlawi population.

As we can see, the communication market in Rwanlawi is characterized by a monopolistic environment where ICTs are not sustainably developed. This has a negative impact to the Rwanlawi economy by the fact that communications can be provided at high cost and poor quality of services. Striving to build the economy of his country, the President of Rwanlawi has signed the WTO agreement, which includes communication reform.

Basic voice and Data communications standards are not available throughout Rwanlawi. Competition in Communications sector becomes a remedy to the unavailability of communication services.

This paper illustrates how much Rwanlawi economy needs to be liberalized with the aim of enhancing various services delivery and opening market where new communication operators will be asked to provide consumers with high qualified and diverse services at reasonable price.

COMMUNICATION REFORM IN RWANLAWI

In the contemporary world, communication is an enabling tool to the development of ICT infrastructures, which results into socio-economic development of nations. Consequently, there is the need to empower the communication sector with the aim to contribute to modern economies.

To strengthen the communication sector, an effective communication bill must be put in place. This bill will be prepared and passed to the Parliament to be approved as communication act. The major purpose of this act is to set up Rwanlawi Regulatory Agency which will be mandated to enforce interconnection policy, to monitor tariffs related to ICT, to endorse equipment and standards, to enhance competition, to plan for the future ICT scarce resources use, to issue licenses and monitor the compliance with the pre-determined license conditions, and to manage complaints and settle disputes.

Support to the top

Given the fact that there is willingness of the political agency, communication reform shall succeed for sure. The President of Rwanlawi initiated this project by appointing the Secretary of State for Information and Communications Technology. To safeguard reforms against political changes, the Government of Rwanlawi shall develop the policy guidelines and provide support of major stakeholders.

Set clear policy and procedures

To strengthen the private sector, businesses offered to investors must be defined in a clear way by putting in place laws, regulations, and main transaction documents. The most critical policy issues relate to pricing, competition, and interconnection. In terms of pricing, the Government of Rwanlawi must bite the bullet early and rebalance tariffs. The price that an operator is allowed to charge his/her customers is a determinant factor of profitability and ability to finance growth. Existing tariffs do not often favour costs.

Open communication market to competition

In the absence of competition, the benefits from increased private participation would not be fully achieved. Rural areas can provide a conducive environment for business under liberal entry and pricing policies.

Perfect competition and monopoly

The Government of Rwanlawi shall put in place a competitive market which no participant is allowed to influence price but it will rather be determined by forces of demand and supply. There are two opposite forms of market structures. There is monopoly and perfect competition.

The monopoly's structure is characterized by a single service provider of a highly differentiated product. This is the case of Rwanlawi where communication market is in the hands of a single fixed telephone provider.

When perfect competition exists in market-based economy, two or more different service providers contend with each other to sell their services to customers. In a competitive environment, service providers or competitive suppliers may offer lower prices, more or better quantities, and packages or quality of service to attract customers.

Perfect competition

Perfect competition is a market environment characterized by a large number of customers and service providers of a similar service. In this type of competition environment, the economy becomes a model in which no service provider or customer has the market power to influence prices.

Competitive strategy in perfectly competitive market

The level of competition in the market environment and the service providers response to that competition is at the core of the business success or failure. The competitive strategy is to seek for the favourable competitive position in a company or line of business. This strategy will highly affect the normal returns of the company.

MIGRATION FROM MONOPOLISTIC TO LIBERALISED MARKET

Rwanlawi is a country which is currently facing the problem of monopolistic market within the communication sector. The penetration rate of communications is still low. The size of Rwanlawi population goes beyond services provided from one communications operator. Rwanlawi will then choose an alternative solution that will produce the maximum of communication services throughout the country.

Responsibility of the Government of Rwanlawi in liberalisation process

While processing for full liberalization in the communications sector, the Government of Rwanlawi shall generally rely on the following mandates:

Optimisation of the Economy in Rwanlawi

The more important goal for Rwanlawi decision makers to achieve is the process of arriving to the best remedy of communication services issues. The process for achieving this will become the process of economic optimization in Rwanlawi by communications liberalisation as a tool.

Liberalisation process in Rwanlawi

Liberalization will come in Rwanlawi to make the previous government restrictions in socio-economic policy and come up with the adoption of the Communications Act of Parliament, the creation of Rwanlawi Communication Regulatory Agency, the harmonization of national policy to international standards, the creation of laws governing communications, and the preparation of favorable climate for investment and business control by establishing measures of opening market from a monopolistic environment to a competitive market.

The last step of the liberalization process in Rwanlawi is based on the elimination of any legal constraint that can jeopardize communications service providers from entering markets, providing competitive services, and building their own communication infrastructures.

The impact of liberalisation and competition in Rwanlawi

Managing one Rwanlawi communications service provider becomes a crucial issue as it cannot enhance sustainable economic development of the country.

The liberalisation will come, as mentioned above, to slow down previous Rwanlawi Government restrictions in socio-economic policies. The process will then be emphasised by the WTO agreement that has been signed by the President of Rwanlawi.

During and after the process of liberalization, it is expected that the following factors will be put in action in order to qualify the perfect competition marketplace. These are:

Impact of liberalization on GDP

There have been contradictory ideas as on the relationship between GDP and tele-density. The optimistic side argues that ICT emerged as a key developmental enabler by:

There is a negative correlation between the GDP of a given country and its tele-density mainly in developing countries due to the following reasons. There is little evidence of direct technology impact on economic growth in developing countries since they poorly exploit ICT and that development may be a higher priority.

Competition and the role of Government

The common role of Government in a competitive environment is to ensure the regulation of activities of the private sector. This regulation consists of rules that restrict the way private companies operate and the type of services they provide to their customers. The Communications Regulatory Agency will then put in place a structure favourable for the competitive environment in Rwanlawi.

Privatization and the Commercial environment

A commercial environment is one in which a company is established with a number of shareholders and a legal apparatus otherwise called the board of Directors.

Privatization is the transfer of assets or service delivery from the Government to the private sector. This transfer can involve the operation, management or actual ownership of publicly owned facilities.

The fundamental contributions of Privatization are to lock-in gains achieved earlier in reforming public ownership or in preparing a service provider from the political process.

Privatization of Rwanlawi communications operator will generate a lot of financial benefits as it can be considered as the component of the development.

Privatization and liberalization are two ICT reforms that enhance the public treasury. Since the process of these parameters is seriously taken into consideration by the Rwanlawi government, the communications sector will improve significantly. Privatization and commercial liberalization will fully cut the existence of monopoly in Rwanlawi.

STRUCTURE OF COMMERCIAL ENVIRONMENT

A commercial environment is one in which a company is established with a number of shareholders and a legally responsible board of directors.

In a well structured commercial environment, management becomes a principal of planning, organizing, staffing, directing and controlling any organization which is an entity with people, activities and other things, rules and regulations such that they can attain a common objective suitable for the environment.

The new management structure

In the new structure of management in Rwanlawi, the Chairperson, Chief Executive Officer and the Board of Directors will never be appointed by the Government. The Government also is not advised to make any kind of influence within the management of companies of Rwanlawi.

The management of Rwanlawi shall rely on the following structure:

· Board of Directors

The Board of Directors is the highest governing Agency within the management structure and any publicly traded company. The Board of Directors is made up of the following authorities:

ü Chairperson;

ü Chief Executive Officer;

ü Chief Legal Officer;

ü Four members of majority shareholders.

· Chairperson (non-executive)

A chairperson is selected by a company's board to lead the board of directors, preside over meetings and lead the board to consensus from the disparate points of view of its members.

· Chief Executive Officer

A chief executive officer is the highest-ranking corporate officer or executive officer in charge of entire management of a company.

· Chief Technical Officer

A chief technical officer or chief technology officer is an executive position whose holder is focused on scientific and technical issues within an organization. The CTO will oversee technical staff of the company, particularly those building products or creating services that symbolize industry-specific technologies.

· Chief Legal Officer

A Chief Legal Officer is the highest-ranking corporate officer responsible for all legal affairs of a corporation or agency.

· Chief Financial Officer

The Chief Financial Officer is the corporate officer primarily responsible for managing the financial risks of the business. He/she is also responsible for financial planning and record-keeping, as well as financial reporting to higher management.

· Chief Marketing Officer

The Chief Marketing Officer is a job title for an executive responsible for various marketing-related activities within an organization.

Communications Regulation structure

An independent Communications Regulatory Agency in Rwanlawi shall be created for the purpose of enforcing communication obligations in a liberalized market, and attracting regional and international investors in the ICT sector.

Establishing Rwanlawi Communication Regulatory Agency is also an important milestone for ensuring a successful transition from monopoly to competition market structure in the ICT sector.

The agency structure shall provide a coherent, reliable, and flexible approach to the regulation of communication utilities in competitive market. The regulatory Agency has to ensure that customers are protected and provided with required high quality of services and that those services are delivered at affordable costs.

The needed Rwanlawi Regulatory Agency is one which is separated from the organizational structure of the Ministry which has Information and Communications Technology in its attributions. In this independence, the Rwanlawi Regulatory Agency shall then be established to ensure a successful transition from monopoly to competition market and will be tasked to enforce laws and regulations whereas the Secretary of State for Information and Communications Technology will only make policy and issue individual licenses.

Structural functions of the Communications Regulatory Agency

The rapid technological developments and the convergence of communications systems, media content and electronic devices are currently creating a vibrating environment where frequency spectrum is becoming an even more important scarce resource. However, the regulatory authorities for managing and regulating scarce resources were unable to keep the pace with technological developments.

The regulations that will be used to monitor the communications sector in Rwanlawi must meet the following targets[1]:

Frequency Spectrum Management

The frequency spectrum management, as a unit under Rwanlawi Communications Regulatory Agency, shall be mandated to ensure an efficient, rational, and economic usage of radio frequencies. This attribution is in force by virtue of legal frameworks that govern communications within Rwanlawi Communication Regulatory Agency. To efficiently achieve its tasks, the spectrum management unit will cover the following sections:

i. Frequency Spectrum Planning

This section aims at focusing on the identification of the current frequency band users before forecasting for the future exploitation or usage of the scarce resources for other communication systems.

ii. Frequency Assignment

The frequency assignment section aims at allocating frequencies to users that fulfill the predetermined conditions;

iii. Frequency Spectrum Monitoring

This spectrum supports the frequency assignment spectrum and spectrum planning exercises by supplying them with the necessary information to be used in determining compliance.

In addition, the frequency spectrum management has continuous and regular regional and international coordination efforts on frequency spectrum management.

Licensing communications services

The legal framework shall provide and empower the Rwanlawi Communication Regulatory Agency to receive and process applications for communication licenses and other related issues.

Licenses for new applicants in the communication market are then granted by means of competitive licensing process, which involves the fair selection of one or more service providers from a group of applicants. Differently, general authorisations are issued with a view to authorising any entity that complies with the conditions of authorisation to provide communication services without the need for an individual license. In this case, the issued license is called standard license.

Frequency spectrum policy and planning

In the development of implementation policies and plans related to spectrum utilization, the Rwanlawi Communications Regulatory Agency has to carefully take into account advances in technologies, as well as the socio-economic and socio-political realities of Rwanlawi.

Usually, the national radio-communications policy is habitually associated with the regulations development. It follows then that the primary responsibility of the policy unit is to carry out studies designed to establish the current and future radio-communications needs of Rwanlawi, and thereafter develop policies that adapt the optimum combination of radio and wire-line communications media indicated by the results of the studies.

Frequency spectrum monitoring impact

Radio frequency monitoring is often said to be "the ears and eyes" of the spectrum management process. This section will support and supervise the conditions for the operation of communication networks and stations according to the legislation.

The spectrum monitoring will be implemented across Rwanlawi with the purpose of identifying transmitters, among other communication equipments that are not in compliance with regulations, either because they are not licensed or because the transmission parameters do not meet specified technical specifications.

This aspect of monitoring is particularly important in Rwanlawi since it cannot allow any operation of unlicensed transmitters. This will decrease the loss in revenue to the communication regulator and discourage illegal frequency use.

The frequency monitoring section will also prevent unlicensed or defective transmitters to harmfully interfere with other legally permitted transmissions.

Numbering and IP addresses

Rwanlawi Communications Regulatory Agency:

This goes with the preparation circumstances and manner in which registrations may be registered, renewed, refused or revoked and set policy for the restoration of domain name.

Approval of the Communication equipment

The Rwanlawi Regulatory Agency shall make sure that all communication equipments entering the country comply with national, regional and international standards in order to ensure the quality and safety of end users.

The approval and certification of terminal equipment is of great importance in order to ensure quality of services provided by the operator, safety and interoperability between different users.

Interconnection

Interconnection is when we have two or more networks interconnect to exchange traffic.

Everyone who wishes to install communication infrastructures or provide communication services should have the interconnection between Rwanlawi operators.

The agreement between operators on interconnection shall be submitted to the Regulator and their interconnection tariffs shall be published and available at the website of the Regulator.

The Regulator shall also monitor whether there is sufficient competition and may intervene with motivation. Interconnection should be non-discriminatory that is, an operator cannot enter into agreement with other operators at different interconnection prices than the one published.

Consumer protection

Within the communication licenses, a set of conditions relating to the consumer protection will be consolidated. Such conditions may relate to matters such as regulation of prices, billing practices, consumer complaint mechanisms, dispute resolution, limitations of liability for service defaults, and mandatory services to consumers like directory services and service provider's assistance and other emergency services.

Apart from this initiative, Rwanlawi Communications Regulatory Agency in collaboration with the communication service providers shall prepare and publish the code of conduct for communication service providers focusing on the required behaviours, responsibilities, and actions expected in the ICT sector.

Universal access

Universal services shall be close to each other so that the operator's license obligations and the regulator shall monitor its implementation.

The Regulatory Agency of Rwanlawi shall manage the Universal Access Funds and collect revenue from various sources, provide targeted subsidies to implement universal programs. These funds should be independently administered.

Regional/International coordination

The Rwanlawi Regulator shall reconcile ITU regulations on usage of radio frequency with the Rwanlawi radio frequency band plan and liaise with regional communication bodies and regulatory authorities on the issue related to frequency spectrum management.

INTRODUCING WIRELESS SOLUTION IN RWANLAWI

Technological changes have massively revolutionized the communication landscape during last two/three decades and enabled possibilities for creation of new services and created conditions for gaining synergy in the technological development. Those changes have directly influenced the communication markets and the regulation framework, as they are the basis for the IP revolution, the convergence process and emergence of NGN technologies. Wireless technologies innovated the market by introducing new network devices which can exchange information without visible and touchable link between those devices.

Advantages of wireless technologies

The benefits of introducing the wireless in Rwanlawi will:

The wireless systems consideration in Rwanlawi will practically make easy the provision of the following services:

The satellite television allows viewers in almost any location to select from hundreds of channels;

The cordless mouse is a common example; keyboards and printers can also be linked to a computer via wireless;

Wireless technologies for communication services provision

Rwanlawi shall implement different wireless technologies in order provide its population with communication services. The following are the set of wireless technologies which are commonly used throughout the world with a view to overcoming cabling limits in communication services provision. Those are Bluetooth, WiFi, WiMAX, WiBRO, GPRS, DECT, GSM, Ev-DO, CDMA, UMTS, NFC, WLAN, WMAN, etc

Impact of wireless technologies to the economy of Rwanlawi

The wireless technologies shall be initiated in Rwanlawi with the purpose of enhancing the national economy. Apart from this, the synergy of those technologies and services will improve dramatically the socio-economy of Rwanlawi. This will increase in fact the living conditions of Rwanlawi population. Implementation of wireless systems in Rwanlawi will save time with fast easy access and setting up connections.

SECURITY OF INFORMATION AND COMMUNICATION SERVICES

Communication services are becoming more indispensable to modern societies and their continued development leads business, administration, education, and any other sector of activity relying on ICT as a country development tool.

There are so many technologies that need to be interconnected for a better service provision and networks are highly vulnerable. This raises an issue of the security needed for an efficient usage of information and communication services in Rwanlawi.

Security approach for communication services

The information society involving users, applications, computers and communication networks in complex and international environments, leads to vulnerabilities that must be prevented, detected and remedied[2].

Businesses as well as the public sector face rapidly growing and ICT security-related challenges involve technical, managerial, legal and social aspects. Consequently, there will be increased demands in Rwanlawi for technically deeply skilled information security professionals who also can deal with ICT security problems in an interdisciplinary manner.

The issue becomes to educate Rwanlawins who can define, plan, design, apply, manage and evaluate security for information and communication systems. The education to Rwanlawins will provide them with the ability to assess the relevant ethical, societal and scientific aspects.

Consumer Association in Rwanlawi (CAR) shall be created and would be an association for consumers in Rwanlawi which would work towards hearing consumers' concerns, informing them on relevant consumer issues, educating them on their rights and responsibilities and protecting consumers' interest through information and education, and promoting an environment of fair and ethical trade practices in communication sector.

Role of the Government of Rwanlawi

The Government of Rwanlawi shall intervene in developing public policy focusing on the promotion of the security of information and communication systems and networks to engender confidence in their use and better ensure economic growth and overall security.

Role of ICT security Administrator

The national hub for information and communications of Rwanlawi shall be created in order to secure ICT usage throughout the country.

The National ICT Security Administrator shall:

Actually, data, media and voice can use the same channel. The fact of converging data, voice and media using one device is called "Information on Convergence or Digital Convergence". Mobile phones and computers are typical devices in which data, media and voice have been integrated together.

Role of communications convergence

Convergence "all in one" in terms refers to the removal of entry barriers across the IT, communications, electronic industries, creating one large converged industry.

VoIP is a primary application at this stage, and this technology is now gaining ground on the continent following steady improvements in Internet bandwidth, deregulation in several countries and the growing number of VoIP service providers entering the market.

IPTV and VoIP services will extremely contribute to the expansion of communications services in Rwanlawi.

Impact of convergence on the communication marketplace

During the last century, telecommunications, information technology and broadcasting operated separately. The technologies, content and information transmitted and networks employed by them were distinct and independent. Even these sectors were further divided in terms of services provided and technology used different regulators regulated these services under separate laws.

However, technological developments, particularly those relating to IP technology and increasing use of packet-switched digital communications, will introduce cross-license services to Rwanlawi market.

Communication networks Rwanlawi will provide access to Internet and broadcast content and, similarly, cable television networks will also provide Internet access as well as telephone services.

Impact of convergence on customers in communication sector

Convergence will lead to the accelerated competition in Rwanlawi marketplace where the same service will be delivered through different technologies and network infrastructure. Cable television companies will offer Internet access and VoIP, whereas the existing telecom operator will offer video services in order to increase uptake of its broadband services, as well as to improve Average Revenue Per User (ARPU). This in turn will lead to enhanced competition in the Rwanlawi marketplace.

Converged Regulator of communications

The convergence in communication marketplace and technological developments are indicators that Rwanlawi will introduce a converged licensing and regulatory regime. This will eliminate the possibility of litigation due to some service providers offering services beyond the scope of their licenses.

GDP AND OF SOCIO-ECONOMY TRANSFORMATION

The purpose of this reform of communications in Rwanlawi is the socio-economic development. There will be then a large relationship between national telephone penetration rate and a nation per head of population GDP.

New communication services for socio-economy transformation

The strong relationship between teledensity and GDP per capita will provide some explanation as to the major differences in teledensity in different regions of Rwanlawi. In brief, all the new services in Rwanlawi will assist the socio-economic development and confidence on international level. Surely, the new services will contribute highly to the reform of communications implementation.

The services that will be focused on are grouped into the Acquisitions of Internet Domains and Sites, Technology Development and ICT Research, Semiconductor Design and Development, Telemedicine, E-Government, E-Procurement, E-Democracy, E-Commerce, Video Conferencing, and E-learning for distance learning.

Communications services contribution to the GDP growth

ICTs contribute, without any doubt, to the growth of GDP as they have the ability:

- to increase efficiency;

- to increase productivity ;

- to lower costs in the economy;

- to open access to new markets.

The liberalization of communications will be in Rwanlawi the enabler of business undertaking. When a communication company comes to invest in Rwanlawi, it will absolutely generate employments for the local population within both the local illiteracy and local literacy. Then, the money from outside will come inside the country to reduce an unemployment and to increase the national income.

These communication companies will pay taxes in the country and this surely will increase by the near future the salary of public sector employees.

Increasing the number of profitable companies will be the basis of increasing the GDP in Rwanlawi marketplace.

CONCLUSION AND RECOMMENDATIONS

It is by and large true to assert that Liberalization of the Market in Rwanlawi will attract foreign direct investment within the domain of communication. This will increase their competitiveness and thus their ability to explore the vitality of international trade in information-intensive, products and services. Competition will improve the price-quality mix of the communications services available to consumers.

Investment in Rwanlawi communications tends to enhance an economy which will positively affect other sectors of the economy of the country either directly or indirectly.

According to the gap in the communications provision throughout the country, Rwanlawi is advised to introduce not only mobile tele-communication like GSM, CDMA, IPTV, DVB, DRM, WiBRO, but also UMTS as a 3G packet based transmission of text, digitized voice, video, and multimedia.

For Rwanlawi to set up a Converged Communications Regulatory and institutional policy, it would be better to support the development and exploitation of communications in the socio-economic environment. Once the regulator is created, it will be an opportunity for Rwanlawi to overcome the problem of communications services synergy. It will enable the country to address the problem of the poor quality high priced communications services provision. At this point in time, the consumer will enjoy communication services as he/she will be provided with those services not only in liberalized and privatized market, but also in a competitive environment.

BIBLIOGRAPHY

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