[kictanet] FW: CONSUMER PROJECT FINAL REPORT & RECOMMENDATIONS

[eadera at idrc.or.ke]

Interesting discussions.

I would like to enrich the discussions by sharing the results of an
IDRC Research study aimed at understanding consumer issues in the ICT
sector and practical ways in which they could be addressed. It's
entitled "holding companies to account" - report attached,
recommendations here below for quick reference. Anyone interested in
the published hardcopy report or CD Rom, please let me know and we
will be glad to share these with you (we have several copies).

Kenya is one of the case studies with an African overview included.
Kenyan operators participated in the interim results sharing session.
It was also shared with ARICEA regulators and very well received.

However one of the greatest challenges was getting complaint data
from the operators for open analysis - key question - how can
complaint data be declared public domain information? This would open
a wide range of opportunities for accountability and redress.

Beyond making information available (even if you provide it directly
to mobile phones), what practical avenues exist to redress
complaints? Effective ways? What mechanisms would provide greater
bargaining power for consumers?

IDRC is currently considering a follow-up action-oriented initiative
that will engage with regulators and consumer bodies, where they
exist, to explore some practical solutions to these issues. The
demand has come from regulators in 5 countries following the ARICEA
presentation.

It would be nice to hear contributions from operators and the
regulator, they are missing in the discussions

Edith Adera
 
******
Recommendations:

Key issues from a consumer perspective: From all the evidence
gathered for 
this study it is clear that three broad issues affect consumers
adversely: 
price of service, quality of service and access to service.
As operators become more established, regulators need to shift their 
emphasis from the industry part of their mandate to addressing the
consumer 
interest more directly under each of these three headings. A
key area for concern affecting large numbers of consumers is the lack
of 
price competition in most African
mobile markets.

A consumer framework  law, regulation and codes of conduct: Where
consumer 
and competition law exists, it is important to encourage the
undertaking of 
test cases to demonstrate that these laws can operate and that the 
successful conclusion of test cases will help regulators support the 
consumer interest in their discussions with industry. Where it has
not 
already occurred, regulators need to encourage competition
(particularly in 
the services layer) to help address the issues of price and quality
of service.

Complaint resolution: Where it does not already occur, regulators
need to 
ensure that a Code of Conduct (covering the rights and
responsibilities of 
consumers) is a condition of licence for operators, along with the 
obligation to publicise the existence of the Code of Conduct.

Regulators need to publicise their own complaints procedures
effectively 
and gather data from complaints made that can influence policy and 
regulation. Where it does not already occur, the Consumer function
within the regulator needs to be: properly resourced, managed at a
senior 
level and have direct access to senior management.

The informed consumer  the need for information to help choice:
Serious consideration should be given regulatory enforcement of
compulsory 
disclosure by the operators
of accurate, comparable statistical information relating to the
numbers and 
breakdown of customer complaints. While this is likely to be resisted
by 
the companies concerned, and although careful formulation
is necessary to ensure comparability and comprehensiveness, it would 
greatly incentivise customer responsiveness on the part of the
companies. 
It would act as a powerful tool to promote consumer empowerment and
freedom 
of choice.

If compulsory disclosure proves impossible to implement then
regulators 
should themselves initiate independent surveys that identify levels
of 
consumer satisfaction.

As with the example from India given in Box 4, regulators need to set
a 
simple "basket" of performance indicators on which operators can be
judged 
and the results from these studies should be published at least
on an annual basis. On a slightly broader front, regulators need to
be more 
proactive in educating consumers about market issues like underlying
mobile 
prices and consumer broadband and contention ratios.

If information is central to making informed choices, regulators need
to 
develop effective communications strategies to talk directly to
consumers 
and (as is already happening in some countries) these need to take
account of the levels of education and literacy amongst consumers.

The role of the regulator: Regulators need involve consumers in their
work 
and ensure that their perspective is fed into their work. A number of 
different approaches are available to help bring this about.
Regulators ought to seek to work closely with consumer bodies as a
way of 
strengthening the consumer aspects of their mandates. Depending on
the 
constitutional framework of the regulator, it may be possible
to provide direct support for this kind of work. Particular emphasis
might 
be given to supporting those complainants that lack the wealth and 
education to negotiate existing complaints processes.

An independent consumer movement  what role in the telecoms and
internet 
sector?:
Consumer organisations should be encouraged to respond to consumer 
complaints in the telecoms and Internet sector and asked to make
input into 
policy processes.
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