January 2001

Jordan Master Report

This is the final Regulatory Developments report on Jordan as the ESIS project ended in January 2001. This Master Report covers the whole period of the ESIS project surveying the Mediterranean area, March 1999 - January 2001 inclusive. 

1. Introduction and Summary

2.1 Historical overview and general legislation

2.1.1 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. 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.

2.1.2 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 labeling 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.

2.2 Umbrella Policies and national IS strategy

is Majesty King Abdallah II is determined to exert all efforts needed to establish an efficient infrastructure in Jordan for successful Information Technology industries in the future. He has also stressed on the need to combine the efforts of the public and private sectors in the Kingdom and provide all the facilities to utilise the Jordanian capacities and establish a framework for a better IT infrastructure.

REACH 2.0 is the Jordanian by information technology leaders to review the software and IT services industry's development strategy. The reviewing process of the IT development strategy started on July 12 200, amid increased concerns as to the adequacy of the existing recommendations infrastructure and laws. After 10 weeks of consultation, the contributors and organisers finalised the recommendations of REACH 2.0.

REACH 2.0 is considered as the second phase of last year's REACH Initiative, a five-year plan for:

• Regulatory framework,

• Estate and infrastructure,

• Advancement programmes,

• Capital and Human resources development.

REACH 2.0 wants to:

• attract $150 million in direct foreign investments over the next three years,

• create some 30,000 directly and indirectly IT-related jobs,

• and generate exports worth $550 million over the next five years.

REACH 2.0 is expected to assess achievements, failures and pending tasks, in addition to addressing some issues not exhaustively explored by its previous version, among which industry sources have cited as an example e-commerce.

According to the recommendations of the leaders of the five committees, which reviewed various industry components (capital and finance, e-regulations and regulatory frameworks, human resources development, telecommunications and infrastructure, and IT industry development issues) many articles of the existing Labour, Companies, Securities, and Investment Promotion laws should be amended.

The government was urged to produce major chunks of draft legislation on areas (so far untouched) such as e-commerce, e-banking, cyber-crime, privacy standards, and an evidence law recognising electronic equivalents to writing, original documents and signatures. The members of the six-month-old Information Technology Association of Jordan, Int@j, also asked for major amendments to the most crucial laws regulating economic life and development.

IT entrepreneurs also asked for Parliament's co-operation, urging the national assembly to swiftly endorse government drafts dealing with the sector's development within the upcoming ordinary session. IT leaders, especially the Internet Service Providers, require more transparent services starting from making available network maps and plans and lower prices for both local calls and high speed data lines.

In his keynote speech, Post and Telecommunications Minister Fawwaz Zu'bi promised full government co-operation and announced an "IT legislation package" to be presented to the Parliament for endorsement within the next few months.

The package will focus on:

• e-commerce and e-signature legislation to set the stage for an e-enabled environment in Jordan

• ratification of the 1996 World Intellectual Property Organisation's Copyright Treaty

• amendments to the Securities, Companies, and Labour laws

• Adoption of updated and improved Telecommunications, Income Tax, Investment Promotion, Bankruptcy, Evidence, Procurement and Leasing legislation.

The Minister Fawwaz Zu'bi stated that it is absolutely essential that legislation should be set in place during the next parliamentary session to ensure that Jordan will be "open for business" in 2001. The Minister announced that Bahrain and Dubai have expressed interest in co-operating with the Amman Stock Exchange to create a regional board for listing IT company stocks.

Deputy Prime Minister Mohammad Halaiqa, member of the capital and finance committee of Reach 2.0, noted that most recommendations call for a major reshuffle of the Companies and Securities laws. Some of these proposals can be easily incorporated while others will require further work.

Other amendments to the current Companies Law proposed by the capital and finance committee of Reach 2.0 envisaged halving the declared capital requirements for public share-holding companies (from JD 500,000 to JD250,000) and entrusting founders, and not a ministerial committee, as it is presently the case, with evaluating companies in-kind shares. Most importantly, companies should be allowed to issue shares directly via the ASE, and not be forced, as it is currently the case according to the Securities Law, to go through banks or financial institutions.

The IT leaders also asked the government to drop the 20 per cent taxation on net profit for foreign branches of Jordanian companies stipulated in the current law. Increasing brokerage fees, removing employment requirements for the brokerage exam, and providing for Arabic and English disclosure to attract foreign investors were also mentioned as urgent steps. In addition, IT leaders asked for local and regional toll-free numbers to be allowed and for the repeal of this summer's Internet Cafes directive. They also asked for a review of JTC prices, for high-speed leased lines and local calls, by the end of the year. In return, the ISP's will co-operate and pass on the lower prices to the market

2.3 IS Application Areas

The main IS application areas that the Jordanian government focus their efforts on are:

• Development of the telecommunications
• Development of the IT sector
• Internet, e-commerce
• Education and research
• Labour

2.4 Government and administration (national, regional, local)

Through the issuance of a royal decree King Abdullah announced the creation of the "Economic Consultative Council" (ECC) a twenty-member task force to issue recommendations to the government and oversee the implementation of the modernization plan. Since its formation last year the ECC has dealt with fiscal and health care reforms, the restructuring of the water and finance sectors, the civil service as well as economic restructuring and the privatisation process. It has also helped the government prepare the necessary legislation to ensure entry into the World Trade Organization. In September of this year it launched an e-government strategy and in October it finalized and submitted a draft on a new Vocational Training Council and a report on the restructuring of the Amman Stock Exchange.

2.4.1 Jordan Investment Board (JIB) launches web site to facilitate investment promotion activities

Local and foreign investors seeking information about investment opportunities in Jordan can soon avoid the hassle of going to the headquarters of the Jordan Investment Board (JIB) to obtain needed facts about the country's business environment. Potential investors can access the domain name www.jordaninvestment.com on the WWW and learn basic facts about the investment climate in Jordan.

Investors often have to undergo a series of bureaucratic procedures that takes them month in order to secure several licences and needed permits. But last year the JIB, in its attempts to facilitate procedures in a bid to attract foreign investments, has formed an ad hoc committee to pool investment resources and to avoid overlapping of licensing procedures. Now investors can fill in an application form on the site, which then will be referred to an investment promotion committee that will look into it. The site was developed in March and it recorded some 50,000 hits in its trial period (June 2000).

The site will provide potential investors with 90 per cent of the information they usually seek and will constantly be updated. It provides investors with information about the government, quality of life, an outlook of the country's economy and the financial and banking sectors. Among other things, the site gives investors reasons on why should they invest in Jordan, the different types of business entities, costs of setting up businesses and site maps and business sectors that enjoy certain exemptions. According to the 1995 Investment Promotion Law, the mining, industry, hotels and hospitals enjoy a 15 per cent exemption on income tax. The insurance and financial institutions are exempted by 35 per cent, and all other companies are exempted by 25 per cent.

2.5 Telecommunications and Internet

2.5.1 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. JTC commenced operations as of Jan. 1, 1997 with a J.D 250 Million Capi.

France Telecom acquired a 40-percent stake in Jordanian Telecom Company in a deal valued at $508 million (January 23rd 2000). The transaction is part of a privatisation process initiated by Jordan's government in 1997. France Telecom will be responsible for management and operations of JTC and its wireless unit MobilCom and will contribute expertise in the development, management and operation of telecom networks.

2.5.2 Mobile Telephone Services - Jordan Mobile Services Co. (Fastlink)

Jordan Mobile Telephone Services (JMTS) has established a countrywide GSM cellular network, with Motorola Inc. acting as a contracted operator. The Jordan Mobile Services Co. (Fastlink) is working on a JD 30 million-project to expand its operation network to include more than 500,000 customers by the end of this year. Currently, the company has more than 150,000 customers. Meanwhile, Fastlink expanded its range of services from June 2000. It started providing a "Short Messages Service," and an Internet-linked service.

2.5.3 Mobile Telephone Services - MobileCom

MobileCom is the new Jordanian public mobile telephone network operator, and is the operator of the mobile communications license granted to Jordan Telecom. The company combines local Jordanian capability with the technological advantages and network management / operation experience of one of the world's leading telecommunications operators, France Telecom.

MobileCom launched its GSM services on the 15^th of September 2000 and targets at 50 percent market share within the next few years. MobileCom is planning to invest more than JD 180 million in the Kingdom over the next four years and has already spent JD 38 million in establishing mobile networking and supply sites. The services covered 94 percent of the country from the first day of the launch. The firm targets at around 50,000 subscribers by the end of the year. The firm offers a whole range of cellular services, including the widely popular pre-paid card, data and voice mail services.

2.5.4 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.

2.5.5 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. 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.

2.5.6 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.

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. On November 18, 2000 Gulf Giant Bahrain Telecommunications Company (Batelco) signed an agreement for the acquisition of a "strategic stake" in Firstnet and NETS. The product of this Internet venture will be called Batelco Jordan and aims to become the biggest ISP in Jordan.

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).

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.

2.6 Electronic Commerce

On the 1^st of October 2000, the Amman Chamber of Industry (ACI) and the European Commission signed three e-commerce contracts whereby the EC will offer 200,000 euro to help finance projects under the Euro-Jordanian Business Service Team (BST).

The three agreements were signed by ACI Chairman, Othman Bedeir, head of the European delegation in Amman, James Moran, chairman of Information Technology Association of Jordan (INTAJ), and Paul Gaderaard, Euro-Jordanian Business Service Team Project Manager. The agreements aim to develop e-commerce sector in Jordan. They will also support the establishment of an ACI e-commerce center serving as a nucleus for e-commerce centers in business associations in the Kingdom.

The first agreement is related to BST e-commerce Business Training Program. It aims at training 30 persons from ACI and other business associations from the Jordanian business community in implementing e-commerce and e-business application.

The second agreement is related to the e-commerce awareness campaign and roll-out training project. The objective of the project is to take-up e-commerce and e-business to build new strategies suited to the type of goods and services they want to provide and be aware of. The project includes training 4,500 managers from the business community.

The third agreement deals with holding an e-commerce conference to take place in early 2001. The conference will discuss and tackle issues related to e-commerce and e-business.

2.6.1 E-government

Telecommunications Minister Fawaz Zu’bi is overseeing the implementation of a national e-government strategy endorsed by the Economic Consultative Council (ECC). In September the ECC launched its first action plan for e-government, envisaging its completion between the next three-five years and the implementation of a few fast track projects within the next 12-18 months. The seven fast-track projects will involve services in government-to-business (G2B), government-to-citizens (G2C), and government-to-government (G2G) transactions. Citizens will not need to have a home PC to benefit from the government’s future online services since special kiosks will be set up in schools and post offices across Jordan.

2.6.2 E-banking

One of the essential sectors for e-commerce is the banking sector. While many banks and financial institutions in the world conduct business and monetary transactions through the web, Jordanian financial institutions like the Arab Bank, the Housing Bank and the Jordan-Kuwait Bank (JKB) seem to be moving ahead in creating an e-commerce culture. However, the Internet is principally used for promotional purposes. JKB launched its e-banking system on 2 July in a step to enter the world of e-commerce. The decision aims at saving time and effort and scaling down the voluminous routine paperwork involved in banking services and helping the clients.

2.6.3 E-business

The Specialised Technical Services (STS) Group, one of the leading IT professional services providers in Jordan, organised a seminar on e-business at the Jordan Intercontinental Hotel. Speakers from six leading international companies in the e-business arena gave presentations on the significance of e-business.

Humam Mufti, GM of STS Group, introduced the speakers to the audience and stressed on the importance of introducing e-business in the country and the region. Mufti said that with the world rapidly moving into globalisation, open markets and free trade we in Jordan and the region need to be ready and well equipped with e-business tools to compete with others in the world. He said that STS would be able to provide total solutions to the Jordanian and Arab market for their e-requirements through the companies present at the event.

2.7 Education and research

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 organisations 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 centers 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 computerising the Ministry has been prepared. It includes the establishment of an administrative educational information network, for the purpose of linking the Ministry (centre) to the general directorates and field directorates of education, utilising computer as a teaching aid, as well as activating the role of learning resource centres and pioneer centres.

Also, the Ministry of Education is allocating JD 28 million to install computer networks in public schools around the Kingdom started September 2000. The project encompasses more than 1600 schools. Sources in the Ministry said that the government would soon establish a national network linking all public and private schools in Jordan with the Internet. The Ministry is also planning to teach students English through computer applications. The Ministry will spend another JD 1 million to purchase required books and computer tools for English language education.

2.7.1 Universities work on $30 million IT project

A $30 million project to enhance IT at Jordan's state-run universities and community colleges is in the works. The project is part of the higher education development project currently being carried out by the Ministry of Planning. The ultimate aim of the project is to supply students, pursuing higher education, with skills and know-how in state-of-the-art technology.

The overall cost of the higher education development project is $74 million, $35 million of which is supplied by a loan from the World Bank. The IT component of the project, which costs $30 million, has five sub-projects. The first is the financing and installation of a standard-based information technology infrastructure including hardware, software and applications. It will provide inter- and intra-university connectivity and global connectivity via the Internet to provide students and faculty with access to national and global research data and information and the ability to correspond electronically with educators on national and international levels.

The second sub-project supports the design and use of modern management information systems (MIS) in decision-making by the Higher Education Council that supervises higher education in Jordan. The scheme will finance the computer equipment and training of the council's secretariat and university staff. The third project will finance the development of an inter-university library system with the hope of increasing the overall efficiency of libraries in the public education system and facilitate access and exchange of information between public universities. The scheme's fourth component will also support training for individuals who will be assigned as faculty developers in each institution.

Finally, upon establishing the IT network, the project will finance student and faculty computers and network, professional and end user training, educational technologies and human resources necessary to operate the new investment in IT. The project will be finished in late 2004.

2.7.2 Distance-learning program

The University of Jordan (UJ) is to launch a distance-learning program next year. Walid Al Ma'ani, UJ's president, said the program will be inaugurated on the Internet starting from October 2001. Al Ma'ani said the university is currently training a group of its professors and staff in the new program.

2.8 Health care

In Jordan, an international telemedicine link has been established between Jordan and the United States' Mayo Clinic's locations in Minnesota, Florida and Arizona. Through the INTELSAT satellite at 338.5 o E, the link brings together physicians and patients nearly 7,000 miles apart, facilitating the exchange of high quality medical care and medical education in Jordan. King Hussein Medical Center and the Amman Surgical Hospital, located several kilometers apart are now linked to the Mayo Clinic. Both centers are equipped with videoconferencing capabilities for telemedical diagnosis and treatment as well as tele-education programs. In addition to the expanded diagnostic and treatment services, telemedicine often serves as a first-step in determining whether travel is necessary for specialized care.

The facilities allow physicians at each location to consult with one another and obtain second opinions for Jordanian patients. Interactive medical education programs are broadcast from the Mayo Clinic and received at the King Hussein Medical Center auditorium. These programs, designed specifically to meet the needs of Jordanian physicians, include live lectures by Mayo staff and question and answer sessions. The advanced equipment located in the Jordanian telemedicine rooms includes television monitors, a video camera mounted above the patient examination table, and special equipment that allows Mayo physicians to conduct long-distance patient evaluations.

2.9 Labour

2.9.1 Database of Jordanian workforce in the IT field

An initiative that aims to collect information about Jordan's most important IT resources was launched on the 22 of July 2000. Jordan's IT initiative is based on people's IT skills and expertise. The government and the Economic Consultative Council have launched a joint project that intends to build a comprehensive and accurate database of Jordanian talent and expertise in the IT field. The site address is www.it.jo, which is a "specially prepared" URL provided for this initiative.

The site states that its aim is "to bring together IT professionals and businesses working in the field". Accordingly, it is structured in two sections, one for applicants and the other for employers. As for the applicant section, it is where people post information about themselves to be added to the databank. The applicant is required to provide information in five main categories: Personal information, education, work experience, certificates and language proficiency. People who register can always come back to update or adjust their information. This is done by the use of a password received upon registration. As for the employer section, it offers a search facility for evaluation and recruitment. Employers can conduct a search on the basis of education, experience and certificates. The database will seek a match with the corresponding registered users. To browse talents without a specific requirement in mind, the site can provide a list of all applicants available.

2.10 Competition

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.

A new $150 million investment fund is expected to be launched in Jordan. Most of the fund will be allocated from privatization revenues. The fund will support projects launched in the IT sector and the Aqaba Special Economic Zone. Local and international banks will take part in the fund

The development of the IT sector in Jordan reflects the broad interest. The REACH 2.0 forum among leaders of the IT sector in Jordan and the Jordanian government resulted in a series of requests for new legislation and amendments to laws regulating economic life in the Kingdom. The recommendations are already submitted to the government and the Economic Consultative Council, which was set up by the King to invigorate the country's economy. Participants in the forum specifically called for an overhaul of the Companies Law to encourage investments, with some suggesting that declared capital requirements be reduced and others calling for greater tax incentives.

Calls were also made for tariff reductions on local-call phone rates to make the use of the Internet more accessible and competitive, as well as the establishment of toll-free numbers.

Jordan, with royal encouragement from King Abdallah, is trying to attract $150 million in foreign investments by 2004, create 30,000 jobs and provide cash-strapped Jordan with $550 million from IT-related exports.

2.11 Access for all

The Jordan Telecom (JTC) is moving ahead to develop the telecommunications sector in the Kingdom. The company spent JD 60 million in various investments to develop the telecommunications sector in Jordan, having six priorities. These included: building a data transmission network, becoming a data and Internet Service Provider, giving satisfaction to its customers, decreasing tariffs, building an international hub in Jordan and developing the quality of voice-network for subscribers.

JTC will improve its performance by offering an efficient cost-effective, high quality telecommunications service and related value-added services to meet market requirements and anticipate future evolution. JTC aims to be the biggest Internet Service Provider (ISP) and provide the service in both Arabic and English. The launch of the English version of the Internet portal took place in October 2000, while the Arabic version will be available in early 2001.

In December 2000, the company intends to provide the ISDN service for customers in main cities around the Kingdom, while the data network will be dedicated only for those living in Amman. As for 2001, JTC plans to expand its voice network coverage in the first quarter of the year along with providing the data network service for other major cities in the Kingdom.

2.11.1 New tariffs package for Internet users

The board of the Telecommunications Regulatory Commission approved the proposal by Jordan Telecommunications Co. (JTC) to reduce its tariffs. The reduction in JTC tariffs became effective from the 1st of August 2000, and will help Internet Service Providers (ISP) and end-users to enhance affordability of telecommunications and support social development. JTC has proposed the new tariff package to the Regulatory Commission. The package aims at making telecommunications services more accessible and affordable to the public. It focuses on services closely related to Internet and Data Communications.

Back in 1997, JTC adopted a long-term tariff-restructuring program. After privatisation, the company has accelerated implementation of the program in order to align tariffs more closely with actual costs and to comply with license obligations and price regulations. In determining tariffs for various telecommunications services, commercial objectives of the company have been taken into account, as well as political, economic and social needs and the ability of customers to pay.

2.12 Copyright, intellectual property rights

2.12.1 Copyright law

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.

2.12.2 Intellectual property rights

Jordan enforced intellectual property rights which paved the way for its accession into the WTO. Jordanians are becoming more aware of intellectual property rights. In a seminar held in February 2000, officials from the World Intellectual Property Organisation (WIPO) said that the main objective behind implementing the property laws in Jordan is to protect the rights of producers and help people to attain best quality products. The seminar was held at the University of Jordan (UJ), in co-operation with WIPO and the National Library. Experts and academics from Jordan and abroad took part in the event.

Sharif Sa'adallah, Director of the Arab Bureau for Development and WIPO's representative to the seminar, told participants that intellectual property laws help to assert economic creativity in the Arab world. He said that such laws would assist Arab governments to promote lawful commercial exchange in line with principles of protecting intellectual property in fields such as economic, cultural and social development.

UJ's President Walid Maani said that Jordan has achieved progress in the field of intellectual property rights when it was admitted to the World Trade Organisation (WTO) last December. Al Maani pointed out that the University of Jordan plans to introduce next year a new Master of Arts degree program in the field of intellectual property at the Faculty of Law. Sources at the Ministry of Trade and Industry said that Jordan would implement the new Patents and Inventions in April soon after Parliament ratifies the WTO agreement.

2.12.3 Software piracy

Software piracy in Jordan costs the economy more than $3 million annually. Jordan's level of software piracy has decreased from 80 percent in 1998 to 75 percent in 1999, a change that has been attributed to new copyright laws and law enforcement activities by the Business Software Alliance (BSA). According to a recent study by the International Planning and Research Corp. (IPR), piracy was reduced by 12 percent over the past five years, but 75 percent of software used in the country is still pirated.

2.12.4 U.S. removes Jordan from Special 301 Watchlist

United States Trade Representative, Charlene Barshefsky confirmed that both the United Arab Emirates (UAE) and Jordan have been removed from the USTR's Special 301 Watchlist. The news was announced with the release of the results of the USTR's 2000 "Special 301" annual review, a report that examines the adequacy and effectiveness of intellectual property protection in over 70 countries, according to a press release from Spot on Public Relations.

2.13 Privacy, data protection, consumer protection

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

3.1 Ministries

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

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

"To set policies that organize 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".

3.2 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.

3.3. 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.

3.4 Consultative councils

Through the issuance of a royal decree on December 13, 1999, King Abdullah announced the creation of the "Economic Consultative Council" (ECC) a twenty-member task force to issue recommendations to the government and oversee the implementation of the modernization plan. Since its formation last year the ECC has dealt with fiscal and health care reforms, the restructuring of the water and finance sectors, the civil service as well as economic restructuring and the privatisation process. It has also helped the government prepare the necessary legislation to ensure entry into the World Trade Organization. In September of this year it launched an e-government strategy and in October it finalized and submitted a draft on a new Vocational Training Council and a report on the restructuring of the Amman Stock Exchange. In the upcoming year the ECC will be busy with crucial amendments to the Securities, Investment, Promotion, Labour and Companies Law. Other upcoming tasks include preparing the ground for enactment of e-commerce and e-government legislation, as well as submitting some WTO related drafts that were not included in the agenda of last year’s and this summer’s parliamentary sessions.

3.5 Bodies in charge of RTD policy

The Higher Council for Science and Technology (www.hsct.gov.jo) aims to build and evolve a national scientific and technological base in support of economic, social and cultural development in Jordan. The prime objective of the HCST is to make science and technology a major element in the overall development of the country. The HCST forms the base for science and technology research in Jordan. Its is a policy-making body that coordinates strategy and funds scientific and technological research, aid, planning and development. Its members are: The Minister of Planning, the Minister of Industry and Trade, the Minister of Finance, The Minister of Higher Education, the Minister of Energy and Mineral Resources, the Minister of Agriculture, the Chairman of the Jordanian Armed Forces Joint Chiefs of Staff, the President of the Royal Scientific Society, the President of the Amman Chamber of Industry and the Secretary General of the HCST.

4. International relationships and agreements

4.1 Jordan joins WTO as 136th member

On April 11 2000, Jordan became the 136th member of the World Trade Organisation (WTO), leaving only six of the 12 Arab states of the Middle East region outside the Geneva-based body. Jordan's entry came just over six years after the Kingdom began negotiations to join the organisation's predecessor, the GATT. Jordan's accession was originally set to be approved by existing member countries in Seattle, but was finally agreed at a meeting of the WTO's ruling General Council on Dec. 17.It went into effect after final formalities, including ratification of the entry agreement by Parliament in Amman, had been completed.

Jordanian officials hailed the entry agreement as a turning point for development of the nation's economy, which over recent years has moved towards domestic liberalisation and freer trading with the outside world. Envoys from existing WTO member states welcomed Jordan's agreement to implement all its pledges on opening markets for goods and services without the phase-in period sought by many other developing countries applicants.

Jordan has also signed on (two so-called plurilateral WTO accords) agreements between some but not all member countries on government procurement and trade in civil aircraft. Other Middle Eastern states, apart from Israel, already in the body are Bahrain, Egypt, Kuwait, Qatar and the United Arab Emirates. Four more — Lebanon, Oman, Saudi Arabia and Yemen — are currently negotiating entry.

(Source: Reuters)

4.2 Information Technology Forum

More than 400 businessmen and senior officials took part in the forum, at the Dead Sea MÖVENPICK Resort (24-25 March 2000), representing 150 local and international computer companies. The meeting focused on the current situation of the computer industry in Jordan and possible ways of improving it. Responding to the King's call, five international computer companies decided to launch investment and training programs in Jordan to promote IT infrastructure. These are Sun Microsystems, Oracle, Cisco, Intel and Boscan Group.

In addition, the forum witnessed the signing of co-operation agreements between local and international companies. One of these was between the Bahraini Batelco company and the two Jordanian Internet companies, FirstNet and Nets. While the other is between Maktoub and the Egyptian Hermes for e-mail services, in which the two companies agreed to form a $20 million fund to support the IT educational programs in the Kingdom. Experts believe that the two agreements are expected to attract more investment in Jordan, something that will certainly open new markets for local computer companies.

4.3 Jordan Telecom agreement with Fibre Optic Link Around the Globe (FLAG)

Jordan will be linked to the US through a super highway of fibre optic cables thanks to a $6.5 million agreement signed between Jordan Telecom and Fibre Optic Link Around the Globe (FLAG). The new link will boost Jordan's telephone and Internet capacity to the United States eight-fold as it is now with the European, Middle Eastern and Asian countries. The link to the US will be established through a FLAG cable circuit from Aqaba to New York via Britain. With this agreement Jordan will be completely linked to the whole world, from East to West.

The agreement will provide end users in Jordan with high quality and affordable Internet access service. The arrangement will facilitate end-to-end reliable and diversified conductivity from the Internet service provider sites in Jordan to the global Internet network and submarine capacity of 45 megabytes per second and satellite capacity of 16mbps which will be available with interchangeable back up. It will also ensure adequate capacity to satisfy current and future needs of the ISPs and other broad band service providers. The circuit will be ready for commercial use by the end of July but additional work is needed with regard to the conductivity level. For this purpose Jordan Telecom has floated a request for peering and international connectivity with the global Internet, and the project will be completed in September this year.

The undersea cable is owned by FLAG telecommunications. Regional countries such as the Palestinian National Authority, Syria and Iraq are expected to tap into the cable's services via Jordan's $18 million bandwidth. FLAG comprises three sections: FLAG Euro-Asia which links Western Europe to the Middle East and Asia, FLAG Atlantic connecting New York to London and Paris and FLAG Pacific which stretches from Japan to the US and Canada. In 1998, Jordan became a landing party of the FLAG Europe-Asia cable system with a landing point to Aqaba from Asia.

4.4 IT training agreement between IBM and the Jordanian government

The Jordanian government and IBM have reached an agreement to develop an IT training programme for graduates in Jordan. The parties have agreed to set up a joint task force immediately to put in place a detailed program, that will focus on helping graduates to develop a complete set of IT capabilities, from basic IT skills to application and advanced web development. The agreement was made in Amman in a meeting between Prime Minister Abdel Al Raouf Al Rawabdeh and J. Michael Lawrie, general manager, IBM Europe, Middle East and Africa.

The program will include the agreement of criteria for selecting candidate graduates, the selection of up-to-date training curricula and details on how the training will be conducted. This follows an announcement by IBM recently of an agreement signed with the Egyptian government to train 15,000 graduates over five years. There, IBM has committed to offer an additional six months' training for the top 300 performers each year in its software labs in the UK and the US.

4.5 Jordan and Israel co-operation on cable link

The construction already started at the end of 1999, of two 10-kilometer fiber optic cables linking Israel and Jordan mark the first regional telecommunications project between Israel and any of its Arab neighbours. The resumption of peace talks between Israel and the Palestinian Authority following the May election of Israeli Prime Minister Ehud Barak has led to a warming up of economic ties between the two countries. The agreement between Tel Aviv-based Bezeq International Ltd. (a wholly owned subsidiary of Bezeq Telecom) and Amman-based Jordan Telecommunications Company (JTC), was announced on September 1999 in Amman during a visit by Israeli communications minister Benjamin Ben-Eliezer. The links, which cost a total of $3.5 million and they are operational from February 2000, are expected to result in greater competition in both countries.

The fiber optic cables, with a total capacity of 10 gigabits, will link the countries at two locations: at either the Allenby or Sheikh Hussein bridge border crossings; and at the southern border between the two countries at the towns of Aqaba, Jordan and Eilat, Israel. At present all communications between Israel and Jordan are through microwave links. Initially, the two cables will handle the traffic between Israel and the Palestinian Authority to Jordan. Voice traffic between Israel and the Palestinian Authority and Jordan ranks fourth in terms of the number of call minutes for both Bezeq International and JTC.

Data traffic is currently insignificant, but this is likely to change according to the two operators. The new fiber optic links between Israel and Jordan are expected to handle voice primarily, but Bezeq International hopes that JTC will opt to use the cables for Internet services, creating additional traffic, because Israel has a better connection to the IP backbone than Jordan.

4.6 MobileCom signs $35 million deal with Ericsson

MobileCom signed a memorandum of understanding worth $35 million with leading GSM infrastructure manufacturer and supplier Ericsson, earlier this month. MobileCom is the new Jordanian mobile telephone network operator, and is the operator of the mobile communications licence granted to Jordan Telecom. The company, formerly known as PetraCell, combines Jordan Telecom's capability with the technological advantages and network management/operation experience of one of the world's leading telecommunications operators, France Telecom.

Under the agreement, Ericsson will supply MobileCom with a full GSM infrastructure and service portfolio, enabling MobileCom to offer its customer the latest features in advanced GSM mobile communication services over a high quality network. The service itself will launch in the final quarter of the year 2000 and there are plans to expand the network to 300,000 subscribers in the very near future.

4.7 Service deal between Jordan and Thuraya Satellite Telecommunications Co.

Abu Dhabi-based Thuraya Satellite Telecommunications Co. has signed a service provider agreement for Jordan with a company owned by the Saudi-based Silki La Silki Telecommunications Co. Under the agreement, ZAJEL would distribute and market Thuraya services and products in Jordan. The agreement, signed on the 8^th of February 2000, in Abu Dhabi in the United Arab Emirates, includes distributing user terminals, subscriber identity module (SIM) cards, billing and customer-care management.

4.8 Government signs deal with Microsoft

The King held meetings with senior Microsoft officials and Microsoft Chief Software Architect Bill Gates at the World Economic Forum in Davos, Switzerland in January where they discussed ways in which Microsoft could help to achieve his vision. Follow-up meetings were then held when Microsoft President for Europe, Middle East and Africa, (EMEA) Michel Lacombe visited Jordan and held discussions with the King and the government.

The Jordanian government has signed a landmark deal with Microsoft Corp. aimed at bringing the IT vision of His Majesty King Abdullah II to Jordan and its people. The enterprise agreement, which will cover all the government's software requirements, is a first step in Jordan's attempt to transform the country into a technology research and development hub of the region. Microsoft recently announced their entry into Jordan by opening up a local office in Amman in February 2001.

4.9 JTC deal with Sofrecom

Jordan's communication provider, Jordan Telecom Co. (JTC), announced that it has signed a JD 9.4 million deal with the French company Sofrecom to provide a new Customer and Care Billing System (CCBS). The system aims to supporting all current and planned products and services including basic voice services, the ISDN (Integrated Services Digital Network) service and other value-added services. The modern billing service, which is expected to be fully operational by July 2001, will allow JTC to increase its revenues and market share, prepare for near future competition and minimise product/service cost.

4.10 Fastlink aims to increase its subscribers

The Jordan Mobile Telephone Services Co. (Fastlink) aims to increase its subscribers in Jordan to one million by 2004. Motorola announced the award of a contract worth $23 million for the expansion of the Fastlink GSM mobile network. The Fastlink network has been in commercial service for five years and 100 per cent of the network infrastructure is supplied by Motorola's Global Telecom Solutions Sector (GTSS). This latest contract is for multilayer GSM network expansion, utilising Motorola's Horizonsystems GSM network solutions for high quality wide area and high capacity coverage.

Once the expansion is completed the Fastlink network will have the capacity to handle over a quarter of a million subscribers, providing enhanced coverage in advance of the expected demand for the new mobile data services. Fastlink has spent more than $500 million on expanding its network to meet the demand. About 200,000 people are currently using Fastlink's mobile services in Jordan.

6. Standards

6.1 Standardisation bodies dealing with IS issues

Telecommunication

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.

Appendix