Telecommunication Liberalization- A Must In The New Gambia

Gambians have been anxiously waiting to see the liberalization of the telecommunication sector since the advent of the third republic. Telecommunication is a vital component of our economy as it not only facilitates trade but also link service providers and markets thereby reducing the information asymmetries that were prevalent before the introduction of mass communication platforms like GSM networks. The people of the Gambia have been short changed and overpriced due to prohibitive government policies that breeds inefficient service delivery mechanisms, corruption and the inaccessibility of destination Gambia from the rest of the world. The current Gateway arrangement with MGI needs an immediate cessation and should be replaced by the introduction of a viable liberal market that ensures Gambian telecom subscribers with an equitable service, priced at a reasonable tariff and of good quality. Liberalization of the telecom sector must be process driven to ensure that all stakeholder needs (Government, operators, subscribers and Public regulator) are all addressed adequately to foster an environment of high standards of service delivery and efficient pricing. The government must facilitate a transitional arrangement whereby the incumbent operator in this case GAMTEL assume the responsibility of managing the gateway on a temporal basis until the operators sort out their state of preparedness to handle their own carrier relationships internationally. This transitional period must not EXCEED 6 MONTHS. The following prerequisites must be adopted before the liberalization of the sector in order to avoid market chaos and unfair market positioning or the abuse of dominant market power.

1. Telecom Operators (GSM Companies) must first and foremost approach the sector in a holistic manner and not focus on the competitive nature of the business.
a. They need to work closely to usher guidelines and rules of engagement that will enhance the value proposition of the market and also promote price stability in order not to destroy value through tariff wars. Tariff wars will only give an edge to the subscribers in the short term but the loss in margin will make reinvestment of capital expenditure in the sector difficult thereby compromising service delivery mechanisms in the medium term difficult.
b. The Operators must have a preexisting arrangement with the Public Regulator (PURA) for the issuance of their licenses once the transitional period with Gamtel expires. This will allow a seamless transition from the interim arrange to a full fledge liberalized market. The licensing regime must not be an undue burden to the operators and ideally, the regulator can augment the existing GSM license to a unified license thereby covering all aspects of the telecommunication business process.
c. The sector must agree on the imposition of a price floor for all outbound and inbound international calls. This will reduce the incidence of price wars and heavy handed market positioning by operators.
d. The operators must individually calculate the economic loss incurred by the operators by way of the MGI contract with government. A demand note must be presented to government to recover all losses associated with the MGI contract
2. The Government of the Gambia must be committed to the liberalization track by supporting the process in good faith. It is the responsibility of the state to protect the interest of the greater good at all times and this includes the termination of the MGI contract because it goes against the grain of our strategic national interest. The government of the Gambia being the custodian/party to the MGI contract must endeavor to do the following;
a. Terminate the arrangement with MGI forthwith
b. Facilitate the recoveries of all financial losses due to the operators
c. Task Gamtel to operate and manage a national gateway for a period of six months
d. Work with PURA and Operators to institute a competitive tariff for destination Gambia including a price floor to avert price war amongst operators
e. Pursue legal action against MGI and government officials who are found culpable in the MGI arrangement
f. Establish a gatekeeper arrangement through a clearinghouse model to ensure revenue assurance for government and illegal sim box connections and by passes
3. The Regulator PURA is vital in the transition and final liberalization process of the telecommunication sector. The erosion of confidence by the operators and the general public on the efficacy of PURA as an effective regulator must be rebuild. Therefore, the following actions must be undertaken by the regulator to not only sanitize the sector but protect the esteem Gambian subscribers from poor service quality and excessive pricing models.
a Facilitate the acquisition of gateway licenses to all operators without undue bureaucratic hurdles
b Enforce a price floor mechanism for international call tariffs
c Monitor and ensure quality of service delivery and promote fair play and competition amongst operators
It is to the national interest to not only sanitize the sector but accord Gambians with international best practices for services delivered to the general public. I do hope that the vested parties adhere to these stringent guidelines in furtherance of a buoyant telecommunication sector.