Bernadette Deka-Zulu (PhD Researcher-Public Enterprise)
THE Zambia Information and Communications Technology Authority ZICTA was established in 2009 as a statutory body established under the Information and Communication Technologies Act No. 15 of 2009 to regulate the Information and Communication Technology (ICT) sector.
The mission of ZICTA is to promote and regulate the use of ICTs in the country, with a focus on developing the ICT infrastructure and services, protecting users of ICTs, and promoting investment and innovation in the sector.
ZICTA was established to create an enabling environment for the development and use of ICTs in the country and to ensure that the ICT sector is effectively regulated.
Its main areas of focus are licensing, interconnection, spectrum management, universal service and access, consumer protection, and promoting investment and innovation in the sector.
ZICTA’s mandate is further shaped by the 2006 ICT Policy, the 2021 National Postal Policy, and the 2021 Cybersecurity Directive.
The ICT Directive provides a comprehensive policy framework for the development of the ICT sector with, as its main pillars capacity building, a competitive and efficient ICT sector, and an effective legal and regulatory framework. The National Postal Policy underscores the governments’ aspirations for the development of the postal sector.
ICT sector before ZICTA
Before ZICTA was established in 2009, the ICT sector was highly fragmented and disorganised. There were numerous private sector players, but no unified regulatory body.
This led to a lack of competition in the market, high prices for services, and limited access to ICT services. Additionally, high levels of corruption and a lack of government support hindered the growth of the sector.
Moreover, the ICT infrastructure was poor, with limited access to the internet and slow connection speeds.
The establishment of ZICTA in 2009 helped to address some of these issues and has been tasked with creating an environment that fosters competition and innovation in the ICT sector and with creating policies to promote the development of ICTs.
Zambia’s telecom environment was characterised by limited access to communication services and high prices. The telecommunication sector was largely dominated by a single state-owned provider, Zamtel, which had a monopoly on the market.
Policy framework adjustments on MNO (Mobile Network Operators)
ZICTA’s policy framework adjustments on Mobile Network Operators include;
- Increasing competition in the market by allowing more than one operator per geographic area and we see this as it was announced in 2022 that a new MNO will begin its operation in Zambia as early as 2023 (Beeline operating as Zedmobile).
ZICTAs policy framework on increasing competition is based on providing an open and fair market environment includes, creating a level playing field for all players, encouraging innovation and investment, and protecting consumers from anti-competitive behaviour.
The policy framework includes measures such as enacting legislation to prohibit anti-competitive practices, setting up an independent regulator to enforce competition law, and introducing measures to reduce barriers to entry.
- Encouraging investment in infrastructure and services to encourage mobile network operators to invest in infrastructure and services in the Zambian market.
ZICTA has implemented a series of policies and initiatives aimed at creating a more attractive investment environment. These include setting uniform and competitive licensing fees, providing tax incentives and other fiscal incentives to operators, and issuing licences to new operators.
In addition, ZICTA regularly conducts market studies and market analyses to ensure that the market is competitive and conducive to investment.
- ZICTA has established a regulatory framework to ensure fair and transparent business practices by implementing several initiatives to ensure that mobile network operators abide by fair and transparent business practices.
These initiatives include setting up a Code of Practice for Telecommunicationsandor and ICT Service Providers, introducing a Fair Usage Policy, and promoting competition in the industry.
The Code of Practice outlines the responsibilities and obligations of service providers towards their customers, as well as the standards that should be met.
The Fair Usage Policy aims to ensure that customers are not charged unfairly for using services, and that network operators do not engage in anti-competitive practices.
ZICTA is also working to ensure that mobile network operators are compliant with international standards, and is working to create a level playing field for all operators, addressing issues related to spectrum allocation and usage.
Also, continuing to monitor the mobile market and adjust the policy framework as necessary to ensure the best possible outcome for consumers.
Current status of Mobile Network Operators)
Since the establishment of ZICTA, there has been observable progress and sanity not only in the ICT or Telecoms sector but also in various sectors that draw advantage from ICT-related services, like agriculture, education, commerce, etc. thereby driving the campaign for entrepreneurship and innovation as championed by the government.
Nevertheless, according to current statistics as released by ZICTA in the sector performance of 2022, the total mobile subscriptions decreased slightly to 18.7 million subscriptions at the end of June 2022, compared to 19.7 million subscriptions recorded at the end of June 2021, down 5.0 percent year-to-date.
As a result, mobile penetration, calculated as the ratio of the total population to total subscribers, fell from 107.0 percent year-to-date to 98.8 percent.
The overall decline in the number of active mobile subscriptions was largely due to the deactivation of a large number of SIM cards that did not comply with SIM registration guidelines in response to the increasing fight against mobile money fraud.
The market share of mobile subscriptions changed in the second half of 2022, with Airtel holding the largest market share at 44.2 percent, followed by MTN Zambia with a 36.4 percent market share. ZAMTEL maintained the smallest market share at 18.2 percent but improved its market share by just one percentage point.
Despite a reduction in subscriptions, the average revenue per user, computed as a ratio of total revenues and the total number of subscribers, increased over the review period from an average of K81. 26 to K96. 70 per user.
The increase in revenues per user is partly attributed to the increasing usage of ICT services despite the decline in the number of active subscribers.
A benchmark of standard mobile voice rates for 18 countries in the SADC and COMESA regions found rates in Zambia to be relatively competitive. Zambia is ranked seventh in top on-net.
Governments influence on ZICTA’s management
The Zambian government plays a key role in the management of ZICTA. The government is responsible for providing the policy framework and legal framework that ZICTA must operate within.
The government also monitors ZICTA’s performance and provides additional funds for specific projects or initiatives. In addition, the government plays a role in the appointment of ZICTA’s board members and senior management.
As such, the government has significant influence over the management of ZICTA.
Much as government interference is inevitable, it could have negative effects on the organisation. Government influence of an institution could have these effects out of the many;
- Appointments of politically connected personnel to positions of authority, lead to a lack of transparency and accountability, hence, weakening ZICTA’s ability to regulate the industry effectively.
- In addition, the government may impose overly restrictive regulations on the sector which results in hindered development and growth.
This negatively impacts the economy as a whole, as the telecommunications sector is a major contributor to GDP.
- Previously, the government has been accused of using ZICTA to favour certain operators over others, which has caused discontent among customers and led to a lack of competition in the sector. This has ultimately caused prices to remain high, and customer service to remain poor.
Overall, when governments continue to interfere in the management of ZICTA, this would negatively impact the sector, stifling its growth and development. This will have a knock-on effect on the economy, as the sector is a major contributor to GDP.
(bernadettedekazuku@gmail.com)
