July 1999

Jordan Master Report

I- General Background

1. General telecom policy

The Government of Jordan is committed to modernising and liberalising its telecommunications sector in keeping with the country's vision of becoming the hub of the new Middle East. As part of this process, new laws have been introduced to encourage private sector investment in all sectors, including a Telecommunications law, which establishes a Telecommunications Policy Division & Telecommunications Regulatory Office.

2. Institutional structures in charges of the regulatory issues

2.1 Ministries in charge of the telecommunication issues

The ministry in charge of the telecommunication issues in Jordan is the Ministry of Post and Communication
(http://www.mopc.gov.jo/).

Organisation chart (please click to enlarge the graph)

The mission statement of the Ministry of Post and Communication is:

"To set policies that organise the telecommunications sector & to provide all advanced postal services to all citizens & customers in the Kingdom with optimum security, best quality, fastest ways & minimum cost with continuous enhancement & updating of these services in order to cope with recent technological and dynamic changes in the world".

The Ministry shall undertake the following tasks and duties:

• To prepare the general policy of the telecommunications sector in the Kingdom and to submit the same to the Council of Ministers for approval, and to seek to develop such policy for the purpose of expanding the spread of telecommunications networks in such a way as to meet the requirements of economic and social development.
• To draw up plans that help encourage investment in the telecommunications sector in the Kingdom and create an atmosphere of competition among those who offer such services with a view to guaranteeing the providing of developed telecommunications services at acceptable cost and agreeable rates.
• To follow up the implementation by the involved departments of the Kingdom’s international contractual commitments in the telecommunications sector.
• To look after the Kingdom’s interests in such countries, regional and international organisations, specific unions and commissions as are concerned with telecommunications affairs and to supervise, in co-operation with the Commission and the ministries and departments concerned, the representation of the Kingdom before those parties.
• To prepare the telecommunications regulatory draft laws and regulations and to submit the same to the Council of Ministers.

2.2 National regulatory authorities

The national regulatory authority in Jordan is the Telecommunications Regulatory Commission (TRC).

TRC was established in the Hashemite Kingdom of Jordan according to the Telecommunications Law No. (13) for 1995. The issuance of this law came as a fundamental result of the Telecommunications Sector Reform Program. Since the effective date of this law, TRC, represented by it's Board of Directors, Director General and executive body, became in charge of all aspects in relation to regulating the telecommunications sector, issuing of licenses or permits for the operation of telecommunications networks or the usage of frequencies, and determining the specifications of telecommunications sets as well as issuing approvals for its importing.

Through its mission, TRC seeks to regulate the telecommunications sector and to maintain a successful work relationship between the government, subscribers, service providers and suppliers in order to achieve an effective growth of reliable telecommunication services in Jordan. TRC gives equal opportunities to all those wishing to obtain the licenses and to submit their integrated proposals based on their undertaking to provide the service to all those wishing to obtain it, in addition to their commitment to fair and legal competition with other licenses.

Organization chart of Telecommunications Regulatory Commission (TRC)

By 1 May 1999, most of TRC Technical Standards were reviewed to ensure that they are consistent with the requirements of the International Telecommunications Technical Standards. The process by which the TRC Technical Standards will be made, takes into account the industry self regulation arrangements, ITU standards and international technical specifications.

All TRC Technical Standards are available at: Address: Telecommunication Regulatory Commission (TRC) Technical and Licensing Affairs Dept. P.O.Box 850967 Telephone: +962-6-586 2020 Fax: +962-6-586 3642 E-mail: type.approval@trc.gov.jo Or at the TRC web site: http://www.trc.gov.jo

Steps that are included in the approval process :

• Completed application package is submitted for evaluation.
• Once the application package has been reviewed and determined to be acceptable a testing date will be set.
• Performance testing of the product to ensure compatibility with the network.
• The Test report is assembled and the certificate of compliance is completed and sent to customer.
• Equipment samples will be submitted for Safety, EMC and other telecommunications testing.
• Upon satisfactory completion of all the testing levels the TRC will issue the appropriate approval.
• It usually takes maximum of 14 days from submitting the full application package for approval of products to be granted.
• The information, technical specification and application form can be downloading from TRC's homepage at "www.trc.gov.jo". Hard copy is also available upon written request to TRC.

TRC's Strategy:

1. To regulate the telecommunications sector in a balanced way, in order to provide services of high quality and competitive prices through the licensing and monitoring of these services.
2. To secure the kingdom's needs of different telecommunications services with the highest levels of performance and acceptable prices, and to continue in the process of privatisation as well as the introduction of competition.
3. To support and safeguard licensees' abilities to achieve their basic objectives on a bases of non-discrimination.
4. To secure the continuation of the services provided to the customers of the licensees.
5. To create the appropriate investment climate for the licensees through safeguarding their interests and the regulation of relations and specialities among them, and protecting them from unlicensed companies.
6. To open the way for competition in the Jordanian telecommunication sector, to serve the customer all over the kingdom.

2.3 Frequencies allocation authorities

The Telecommunications Law of 1995 mandates that private sector users of Satellite-Borne Electro-Magnetic Frequencies of less than 3,000 Giga Hertz must obtain a license for such use. This mandate excludes certain frequencies generated from electrical appliances, T.V./Radio equipment and wireless communications equipment licensed by the TRC.

The Frequency Management Department of TRC is responsible for the regulating and supervision of frequency usage in Jordan in accordance with the international and regional agreements, the Telecommunications Act, and the Board of Directors' decisions, as well as the participation in the Frequencies Management Consultative Committee.

Furthermore, the importation and use of sea or air-borne radio-wave equipment is prohibited unless licensed by the TRC. Military and diplomatic missions are exempted from the license requirement on a reciprocity basis.

2.4 Office for the protection of economic competition

The Telecommunications Regulatory Office is charged with providing a transparent regulatory framework, independent of the operators, thus permitting a fair and effective competitive environment. The Telecommunications Regulatory Office is responsible for licensing companies wishing to provide telecommunications services, enforcing licensing, regulating prices, ensuring interconnection to promote the development of competitive and new services, and setting technical standards.

2.5 Consultative councils

The "Frequency Management Consultative Committee" whose objective is to advise the Council on the licensed use of frequencies inside Jordan. The Frequencies Management Consultative Committee is member of the Frequency Management Department.

The "Planning Committee" member of the Technical & Licensing Affairs Department.

2.6 Public telecommunication operators

Jordan Telecommunications Company (JTC) is currently the sole provider and operator of the basic telephone services within Jordan with a monopoly for both business and residential telephone services offering local, national and international services. JTC is a signatory of the Arabsat and Intelsat satellite consortia and operates three satellite earth stations.

JTC commenced operations as of Jan. 1, 1997 with a J.D 250 Million Capi. The proposed mission statement for JTC was formulated which stipulates the following: " To be the leading network operator in Jordan, providing efficient, cost effective, high quality telecommunications and related services, which meet the needs of all our customers, generate viable returns for the business, secure our competitive position and meet all our license obligations to support the economic and social development of the Kingdom". Consideration is currently being given to the realisation of a second step which will include the introduction of a strategic partnership arrangement for the new company, whereby a substantial minority share holding would be sold to an internationally experienced telecom operator.

3. Regulatory framework

3.1 Historical overview

Jordanian telecommunications commenced during the early 1930 in Trans-Jordan under the supervision of the Post and Telegraph Department. Cable and Wireless Ltd. Assisted in the development of telecommunications services through their involvement in developing international connections. After the founding of the Hashemite Kingdom of Jordan (Jordan) the Ministry of Posts, Telegraph and Telephone was established which further developed telecommunications services. In 1961 the first automatic telephone services were introduced utilising an electro-mechanical switch with a capacity of approximately 5,000 lines. Further exchanges were constructed to supplement the system. In 1966 the association with Cable and Wireless Ltd. was terminated and the Ministry of Posts, Telegraph and Telephony assumed responsibility for the system.

By 1971, which saw the formalisation of the Telecommunications Corporation (TCC) as a Government-controlled entity under the 1971 Law, Jordan was served by various telecommunications services such as telephone, telegraph and telex and was operating a satellite earth station which was using Intelsat facilities.

From 1973 to 1985, the system was expanded significantly under three successive government investment plans in response to increasing demand, which arose, both from the need to develop from a limited base and from general economic development in Jordan.
Between 1987 and 1992 Jordan suffered a recession and this affected the ability of obtaining Government funding to renovate and develop the telecommunications system which was then starting to come under severe pressure as a result of increasing demand. This pressure was exacerbated by the further demand for telephone services following the return of Jordanian expatriates during the Gulf crisis in 1990/91.

A fourth significant development program had already been deferred due to the difficult economic environment preceding the onset of that recession and it was not until 1993 that the Government was able to initiate a further development program which has evolved into the National Telecommunications Program, which is now under implementation and it will increase the penetration ratio from 7.8 to 12 lines per 100 inhabitants.

3.2 Present general legislation

Parliament passed in 1995 the new telecommunications law allowing the private sector to build and operate private data, voice and image networks and to invest in telecommunications in Jordan.

The law establishes the Telecommunications Regulatory Commission (TRC). It allows government ministers, departments and public agencies to build and operate their own telecommunications networks (TN's) and allows the private sector to build and operate TN's without a permit or license if the network is intended for in-house use. In addition to issuing all licensing regulations governing private sector operations, the TSRC will issue labelling requirements for all imported telecommunications equipment. The law establishes the Telecommunications Corporation (TCC) as a public shareholding company whose share will be fully owned by the GOJ for the near future.

3.3. Key legislative measures

3.4 Issues

3.4.1 Liberalisation

• Public telecommunication network
  Jordan Telecommunications Company (JTC) is currently the sole provider and operator of the basic telephone services within Jordan with a monopoly for both business and residential telephone services offering local, national and international services. JTC is a signatory of the Arabsat and Intelsat satellite consortia and operates three satellite earth stations.
  
• Mobile Telephone Services
  Jordan Mobile Telephone Services (JMTS) has established a countrywide GSM cellular network, with Motorola Inc. acting as a contracted operator. Under its agreement with JTC, JMTS has a monopoly on mobile services during the first four years for a 15-year license period.
  
• Paging Network
  Jordan Radio Paging/MIRSAL was established in 1986 with the objective of providing online paging services to the widest possible customer base in Jordan. NGC – Jordan Ltd. was established in Amman in 1997, as a sister company to NGC Saudi Arabia.
  NGC – Jordan was awarded a license to operate a paging network in Jordan.
  
• Data Network
  Twelve licenses have been issued for the private sector. The first of which has already started operation.
  
• Public Pay Phones
  Trans Jordan for Communication Services Co. Ltd. is a joint venture established in 1997. Trans Jordan started operations on the 23^rd of October 1997 with 100 payphones; from then on the company has installed an average of 185 new payphones every month. By November 30, 1998 a total of 2584 pay phones have been installed across the kingdom. Jordan Public Payphone Services Co. LLC. is a Jordanian company licensed to install and operate public payphones in Jordan. Services offered by JPP include access to local, national, mobile and international calls. This access is provided through the use of pre-paid smart cards.
  
• Internet Service Providers

• Firstnet is the AT&T Internet Solution Partner in Jordan. It is among the pioneers in offering Internet and data communication services. Since it started its Internet services, Firstnet has acquired a leading position in servicing all economic sectors.
• Global One Communications (Jordan) Ltd. is licensed Jordanian data communications provider. Global One is a world leading telecommunications company formed by the alliance of three of the world’s largest telecommunication companies: Deutche Telekom, France Telecom and Sprint (US).
• National Equipment and Technical Services (NETS) Company, is among Jordan’s largest and leading online providers, and one of the country’s most rapidly growing companies. Its bulletin board service represents one of its strongest assets, coupled with an excellent Internet service.
• Computer Networking Services (CNS) offers a range of on-line and Internet services. CNS operates a bulletin board service called Primus offering e-mail messaging locally and internationally, chat conferences, file libraries and home pages.

For the telecommunications sector the government has decided to introduce a second cellular operator by year 1998, a second paging operator immediately, 3 operators for payphones with permission to utilise the Wireless Local Loop (WLL) and Public Services Telephone Network (PSTN) to cover 3 per 1000 inhabitants by year 1999 & 3 operators to run radio mobile system (dispatch). All those licenses will be granted in accordance to the following conditions:

• Licenses will be granted through open competition.
• Bidders must have the status of Public companies (as defined by the Jordanian Companies Law) or commit themselves to become so after winning the license and before providing the service.
• The Winners should put forward at least 40% of their stock for public offering at Amman Financial Market.

The regulatory office is in the process of preparing the terms & conditions for competition for the above services and it will be floated in due time, which is expected to start with the second paging license within few months. It is clear that the current level of demand and the growing market potential for new telecommunications services indicate that there is a substantial community of potential subscriber that would quickly translate into sizeable revenues. As a result, and based on the experience of the companies that have already established paging and cellular phone services in Jordan, the return on investment is expected to be very attractive.

3.4.2 Licensing

The Telecommunications Law No. (13) for 1995 allows government ministers, departments and public agencies to build and operate their own TN's without a license. The Council of Ministers is empowered to exempt any entity from the licensing requirement. The law allows the private sector to build and operate TN's without obtaining a permit or license if these networks are intended for in-house use. However, the TRC must approve linking such in-house networks to the public network. Also, the TRC must approve in writing any connection between private sector networks. Private sector operators licensed to provide TN services are required to obtain a "Public TN License" from TRC in order to connect private networks to each other.

Following are some of the major achievements, of TRC, for 1998:

• Licensing of one new data communication service operator, namely, JCNS.
• Setting the draft of trunking license agreement as a step in the licensing process of two trunking service operators whom will win the tender to be issued in this regard.
• Finalising the new license agreement of data communication service, which shall replace the old license agreement.
• Preparing several drafts of JTC license agreement in order to reach a final draft to be signed between TRC and JTC.
• Holding special workshops to discuss various aspects in relation to the different telecommunication services such as pay phone, data and trunking.
• Setting the final draft of the numbering plan. In addition to, assigning new numbering capacities for some companies, namely, NGC, JRP and Fastlink
• Setting the procedures of receiving, inspecting and issuing type-approvals for imported sets. In addition to, determining the technical specifications for Caller ID sets.
• Co-ordinating with the concerned administrations to protect the Kingdom's right against any effects on its earth or satellite networks.
• Following up and studying ITU publications such as: Notifications, Operational Bulletins, Notices, as well as the Radio Communications Study Groups.
• Issuing and renewing frequency licenses and conducting several field inspections on governmental and private radio stations.
• Inspecting unlicensed long-rang cordless phones, and confiscating PC's, as well as electronic cards owned by three unlicensed companies that deal with exchange-rate services.
• Issuing several type-approval permits for the purpose of importing terminal telecommunications sets. (see Annexes Licences issued from TRC)

3.4.3 Tariffs policies

Specific tariff changes (JTC) have been examined with the underlying principle being to rebalance the tariff structure in accordance with service cost factors.

The new tariff structure will result in a significant reduction in call charges for most customers. In particular, international charges and short duration local & national call charges will be significantly reduced. Some increases will, however, be inevitable if charges are to be brought in line with costs. This will be reflected mainly in the long duration local and national calls.

During this same period, JTC's tariffs will be re-balanced and/or restructured to ensure that prices to end users, and interconnection charges to other service providers, are fair and reflect economic costs and efficiencies.

3.4.4 Quality of Service

A comprehensive change programme to be implemented within the next two years will largely achieve the improvements in productivity and customer service. This will involve a complete overhaul of systems and processes. In turn this will require investment in new systems - notably customer service and billing - and the re-engineering of key processes to eliminate non-value added activities. The organisation will be refocused and restructured to be customer facing and to minimise hand-offs. Field teams will be trained to develop multiskills and re-equipped to enable them to do the job efficiently and effectively. In all, 77 projects have been identified covering human resources and training, field and centre operations, quality, systems, finance and organisation.

Improvements in service quality will contribute to higher customer satisfaction and to the achievement of incremental sales. It is also proposed to boost the sales and marketing efforts with more aggressive sales forces and campaigns built around a fuller understanding of customer needs. Key customer segments will be targeted and will include some 30,000 business and wealthier households, which currently account for some two thirds of collection revenue. New services will be added, with the immediate priority of developing modern data services. In the medium and longer term JTC will look to other areas, such as mobile telephony and customer premises equipment, to further enhance service and revenue streams.

The second phase of the National Telecommunications Program (NTP), scheduled for the period 1999 to 2010, will continue with the development and expansion of the telecommunications services. This phase is composed of the following major projects:

• Replacement of existing analogue exchanges with digital ones.
• Replacement of existing digital exchanges at the end of their economic life.
• Expansion of the basic telecommunications network to reach a capacity of more than 1.350 million lines through the provision of new network exchanges.
• Installation of a regional optical fiber transmission links to connect Jordan with the neighbouring countries Saudi Arabia, Egypt, Syria, Lebanon, Iraq, Palestinian Authority and Israel.

3.4.5 Interconnection

By the beginning of 1998 Jordan will be connected with Saudi Arabia through fiber optics and with Egypt through microwave links using SDH technology. In addition to that Jordan links with Syria and Israel will be upgraded.

Jordan is studying the possibility of connecting its networks with the sub-marine cable in the Red Sea. As a result of all these connections and upgrading Jordan networks with it’s neighbours, Jordan will be the international hub of the Middle East.

4. Freedom and protection

4.1 Copyright and intellectual property rights

• The Copyright Law No.22 of 1992 affords protection to original works in literature, arts and science irrespective of the type, importance or purpose of such work.
• Works encompassed by such protection include, inter alia, books and booklets, oral works, musical compositions, audio and visual works, sculptures, maps, three-dimensional works and software programs.
• The author is the person in whose name the work is published as well as the translator of any work, the performer and authors of encyclopedias and anthologies.
• The pecuniary rights afforded to an author consist of the right of publication of the work, its reproduction, translation and public broadcasting. However, any such rights are afforded after the deposit of two copies of the work to be protected with the National Library.

4.2 Privacy, data protection, consumer protection

The Telecommunications Law of 1995, Chapter XII – Concluding Provisions provides privacy, data protection, consumer protection.

The Consumer Affairs Department of TRC is responsible for safeguarding the interests of those who make use of telecommunications services through receiving and following-up complaints and analysing annual reports of the licensees, monitoring prices of services, and promoting public awareness to the importance of telecommunications facilities.

5. Information Society Policies

Education

Jordan adopts a long-standing policy of human resources development through its social sectors, at the top of which is the Ministry of Education which is responsible for achieving the general objectives of education, and supervising the educational organizations in Jordan. The Education Act. No. (3), 1994, included several developmental aspects, the most significant of which are: the philosophy, bases and general objectives of education, educational policy principles, the Ministry tasks, as well as educational cycles and their objectives.

The Ministry of Education makes efforts to encourage the private sector to invest in education through the establishment of different educational institutions and organizations. A number of community colleges were established by the private sector based on general and special accreditation criteria set down by the Ministry of Higher Education according to the Higher Education Act No. 28 of 1985. The Ministry approves the curricula, study plans, holidays, fees and admission conditions set down by the Council of Higher Education. In the school year 1997-1998 , the number of community colleges (public & private) amounted to (45). Currently, Al-Balqa Applied University is responsible for supervising them. The number of private universities in Jordan for the academic year 1997/1998, amounted to nine, and three university colleges, in which (32.285)students are enrolled.

In light of the Ministry’s efforts to utilize educational technologies efficiently as an element of the Curriculum , the Ministry developed the facilities related to them in an attempt to cope with technological development. During the implementation of the educational development plan up to the school year 1997/1998, the following accomplishments in the field of educational technologies have been achieved:

• Provision of (68%) of the targeted schools with educational computer labs.
• Provision of (52%) of the schools with specialized scientific labs.
• Provision of the Ministry schools with (17064) instructional equipment (audio & video), and (6400) computers.
• Production of (125),(400), and (24) T.V, broadcast and computer programs respectively.
• Production of (52500) lab equipment and (15) teaching kits.
• Provision of special halls to about (40%) of school libraries.
• Introduction of ten learning resource centres distributed all over the governorates , which offer services to teachers , students and community, through utilizing new educational technologies into the educational process.
• A project for computerizing the Ministry has been prepared, which includes the establishment of an administrative educational information network, for the purpose of linking the Ministry (center) to the general directorates and field directorates of education, utilizing computer as a teaching aid, as well as activating the role of learning resource centers and pioneer centers.
• The MOE has prepared a plan which is expected to be achieved within the next five years, if the financing obstacles are overcome. This plan aims at linking the computer center, three field directorates of education , (100) schools, and learning resource centers in the field, with the Internet.

II. On-going developments

A new licence for data transmission was issued to Maxxnet in May 1999.

Appendix

 

Departments of TRC:

• Technical & Licensing Affairs Department

This Department is responsible for providing advice and technical support for TRC, receiving permits and type-approvals, setting up technical specifications and monitoring licensees as they fulfil their commitments against terms and conditions of licensing.

• Frequency Management Department

This Department is responsible for the regulating and supervision of frequency usage in Jordan in accordance with the international and regional agreements, the Telecommunications Act, and the Board of Directors' decisions, as well as the participation in the Frequencies Management Consultative Committee.

• Consumer Affairs Department

This Department is responsible for safeguarding the interests of those who make use of telecommunications services through receiving and following-up complaints and analysing annual reports of the licensees, monitoring prices of services, and promoting public awareness to the importance of telecommunications facilities.

• Legal Affairs Department

This Department is responsible for proposing and executing the legal policy of TRC, participating in the preparation of contracts and agreements, and representing TRC in front of courts and arbitration committees.

• Finance & Administration Department

This Department is responsible for the supervision and implementation of regulations regarding personnel affairs, the determination of human and material resources as well as other requirements necessary to carry out TRC's tasks, and the participation in setting out financial conditions for licensing agreements.

Licenses issued from TRC

(Source TRC http://www.trc.gov.jo/category.htm )