ii)
Data operators
These include all operators licensed to provide public data services
and who are also licensed as public operators
iii)
Internet Service Providers (ISP)
These include all operators who operate a public network that allows
them to provide both internet and data services.
Once the amount of funding has been determined, the operator levy shall be
extracted on the basis of net turnover of the operator as defined by BTA.
The operators currently pay an annual licence fee of 3% of net turnover to
the BTA. In view of this it is recommended that an additional levy be
introduced ranging between 0.5% and 2% to cover for the operations
subsidy of the rural telecommunications. This will result in the operators
paying a total levy of between 3.5% and 5%. The specific amount shall be
agreed between the MCST and the regulator based on the reported
turnover.
10.2
Implementing Agency
The RTDF shall be implemented by an institute that is independent.
International best practise shows that such funds are better implemented by
an independent agency with a specific mandate which would provide more
clarity and legitimacy. The administering of the funds works well when
managed by neutral parties who can be unbiased in the allocation of funds.
This is so justifiably in order to avoid potential conflict of interest and ensure
transparency in fund management. As an interim measure, it is
recommended that the MCST takes up the role of the implementing agency.
The future fund management implementation shall be informed by the
Universal Access and Service Policy.
10.3
Operations Subsidy
The subsidy to support the ongoing operations costs for sustaining services
in rural areas shall be based on a formula that considers the service
provider’s commitment, record of service delivery, and ability to operate and
maintain the network. This subsidy shall be reviewed by the Implementing
Agency as mentioned in 10.2 above on an annual basis to determine the
appropriate amount and if the subsidy is still required. The service provider
shall take appropriate steps in their annual business plan to reduce the
required subsidy as much as possible.
Rural Telecommunications Strategy
26 October 2006
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