View report - NTRC Dominica

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2011
National
Telecommunications
Regulatory
Commission
Annual Report
ACKNOWLEDGEMENTS
The National Telecommunications Regulatory Commission acknowledges the
contribution of the Secretariat for their diligence and dedication towards the
completion of this year’s report.
The Commission would also like to extend its sincere gratitude to the various
government institutions Customs and Excise Division, Central Statistical Office and
the Inland Revenue Division for their assistance.
National
Telecommunications
Regulatory
Commission –Dominica
2011 Annual Report
Page i
TABLE OF CONTENTS
ACKNOWLEDGEMENTS .................................................................................... i
LIST OF FIGURES .......................................................................................... iv
LIST OF TABLES............................................................................................. v
1.0
Chairman’s Report ................................................................................ 6
2.0
About the NTRC: What We Do & Who We Are ........................................... 8
3.0
Vision .................................................................................................. 8
4.0
Mission ................................................................................................ 8
5.0
The Commission ................................................................................... 8
6.0
The Secretariat ................................................................................... 10
7.0
Human Resource Development ............................................................. 11
8.0
Operations Review .............................................................................. 12
8.1
Public Consultations .......................................................................... 12
8.2
Approved Regulations ........................................................................ 15
8.3
Regulatory Functions – Licensing and Technical .................................... 16
8.4
Licensed Telecommunications Service Providers .................................... 17
8.5
Radio Broadcasting............................................................................ 19
8.6
Financial Review ............................................................................... 19
9.0
Impact of Telecommunications on Economic and Social Development ......... 22
9.1
Impact of Telecommunications on Economic Development ...................... 22
9.2
Impact of Telecommunications of Government Revenue ......................... 25
9.3
Employment Creation within the Telecommunications Sector................... 25
10.0 Trends in the Telecommunications Market ............................................... 27
10.1
Revenues and Investments ................................................................ 27
10.2
Fixed Voice Market Data .................................................................... 28
10.3
Internet Market Data ......................................................................... 30
10.4
Market Data ..................................................................................... 32
Appendices 1 - 8 .......................................................................................... 34
Appendix 1: Telecommunications Licenses ...................................................... 34
National
Telecommunications
Regulatory
2011 Annual Report
Page ii
Appendix 2:
Applications for Individual License .............................................. 36
Appendix 3A: Applications for Type A Class Licenses ........................................ 37
Appendix 3B: Applications for Broadcast Systems Class Licenses ....................... 38
Appendix 4:
Applications for Type B Class Licenses ........................................ 39
Appendix 5A: Applications for Type C Class Licenses – Type Approval ................. 40
Appendix 5B: Applications for Type C Class Licenses – Equipment Dealer ............ 43
Appendix 6:
Applications for Frequency Authorization ..................................... 44
Appendix 7:
Fees Collected ......................................................................... 45
Appendix 8:
Auditor’s Report and Financial Statements................................... 46
National
Telecommunications
Regulatory
2011 Annual Report
Page iii
LIST OF FIGURES
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
National
1:
2:
3:
4:
5:
6:
7:
8:
9:
10:
11:
12:
13:
14:
15:
16:
Individual License Holders in Dominica at December 2011 ............... 18
Class License (Type A) Holders in Dominica at December 2011 ........ 18
Distribution of Fees collected ....................................................... 20
Breakdown of Fees collected ........................................................ 21
Top contributors to Gross Domestic Product ................................... 23
Employment in the Telecommunications sector .............................. 26
Payroll of the Telecommunications service providers (XCD millions) .. 26
Revenues generated by telecommunications service type ................ 27
Revenues and Investment in telecommunications sector ................. 28
Fixed Line customers and Fixed Line penetration ............................ 29
Fixed Line penetration in ECTEL States .......................................... 29
Internet Service customers and penetration rate ............................ 30
Prices as a % of GNI ................................................................... 31
Internet penetration rates in ECTEL States..................................... 32
Mobile service customers and penetration rate - Dominica ............... 32
Mobile penetration rates in ECTEL States ....................................... 33
Telecommunications
Regulatory
2011 Annual Report
Page iv
LIST OF TABLES
Table
Table
Table
Table
Table
National
1:
2:
3:
4:
5:
Trainings,Workshops & Meetings Attended by Staff & Commissioners’ .... 11
Summary of 2011 Consultations ........................................................ 14
Distribution of Fees Collected ............................................................ 20
Growth Rate of Gross Value Added by Economic Activity ...................... 24
Government Revenue from the Telecommunications Sector .................. 25
Telecommunications
Regulatory
2011 Annual Report
Page v
PART I: THE NATIONAL TELECOMMUNICATIONS
REGULATORY COMMISSION
1.0 Chairman’s Report
Overview
This report is the 7th report written by the National Telecommunications Regulatory
Commission (NTRC) under section 28 of the Telecommunications Act, 2000. The
report covers the period January 1, 2011 to December 31, 2011, highlighting the
activities carried out by the NTRC, and delineates the impact of the
telecommunications sector on Dominica’s economy and development.
Regulatory Functions
As the chief regulatory body for the telecommunications sector in Dominica, the
administrative functions undertaken by the NTRC included the processing of
telecommunications licenses, frequency authorizations, as well as type approvals.
In 2011, the Commission received a total of seventy-three (73) applications for
licenses and frequency authorizations, however sixty-eight (68) were recommended
and sixty-seven were approved and issued. Twenty-nine (29) of these were Type
Approvals.
In keeping with the promotion of the ECTEL Treaty, the NTRC held six (6) public
consultations in order to collaborate with stakeholders and the wider public on
issues and matters as they relate to decision making within the telecommunications
sector. Further, during this period, three (3) regulations were promulgated, namely,
the Telecommunications (Retail Tariffs) Regulations, the Telecommunications
(Amateur Radio) Regulations, and the Telecommunications (Exemption)
Regulations.
At the end of the review period, there were eleven (11) individual licensed service
providers. These licenses included: four (4) Fixed Public Telecommunications, two
(2) Public Mobile Telecommunications, three (3) Internet Network and Services and
two (2) Submarine Cable Landing Licenses.
National
Telecommunications
Regulatory
2011 Annual Report
Page 6
Economic Impact
In 2011, the telecommunications sector continued to play a significant role in
Dominica’s economy. The Transport, Storage & Communication sector contributed
XCD $147.68 million to Dominica’s GDP. From this, the exclusive contribution of
the telecommunications sector to Dominica’s economy was XCD $64.35 million,
which represented a 0.53 % increase, over the previous year.
In 2011, revenues within the telecommunications sector were estimated to be
approximately XCD $91.7 million. This represented a 4.6 % decrease in revenues
as compared to 2010. However, investments by the telecommunications service
providers totaled XCD $16.7 million, which represented a 1.8 % increase in relation
to 2010.
After four (4) years of decreasing employment within the telecommunications
sector due to mergers, outsourcing and the declining revenues of the service
providers, employment within the telecommunications sector increased by 2.75 %.
Telecommunications Market Trends
In 2011 the national customer base of fixed line subscribers, as well as mobile
subscribers decreased; 45 % and 3.72 % respectively. The sharp decline in fixed
line customers, and therefore the resulting revenues generated from fixed lines was
direct impact of the customers’ transition from fixed line to mobile phones. The
decline in mobile phone customers however was attributed to market saturation,
since for the past eight (8) years mobile service customers, and the penetration
rate had been constantly increasing. In 2011, the Internet customer base increased
by 9.12 %, with one additional service provider offering service. Dominica was well
on its way to achieving the target of fixed broadband prices at 5% of gross national
income by 2015, set by the Broadband Development Commission towards meeting
the Millennium Development Goals.
The NTRC is committed to the people and the Government of Dominica to improve
the quality and access of telecommunication services in Dominica.
Curtiss Winston
Chairman
National Telecommunications Regulatory Commission
Commonwealth of Dominica
National
Telecommunications
Regulatory
2011 Annual Report
Page 7
2.0 About the NTRC: What We Do & Who We Are
The National Telecommunications Regulatory Commission (NTRC) was established
by the Telecommunications Act, 2000 (Act No. 8 of 2000). The Telecommunications
(Commencement Date) Order, 2001 (S.R.O. No. 10 of 2001) brought the Act into
operation on the 1st day of February, 2001.
The Telecommunications Act and the regulations made hereunder established the
Commission, defined its structure, role and functions and empowered it to do all
things necessary or convenient to be done for or in connection with the
performance of its functions. The role of the NTRC is to effectively regulate the
telecommunications sector, to balance the interest of consumers and
telecommunications providers, and to advise on the formulation of national
telecommunications policy, with a view to ensuring the efficient, economic and
harmonized development of telecommunications, broadcasting and radio
communications in the Commonwealth of Dominica.
3.0 Vision
Universal and affordable access to high quality public telecommunications services by
2012 and beyond, whilst optimizing the potential of the sector for contributing to
Dominica’s socio- economic growth.
4.0 Mission
To work within the ECTEL framework to effectively regulate the telecommunications
sector, in harmony with other Member States while balancing the interests of consumers
and telecommunications providers and providing advice to the Minister of
telecommunications matters, with a view to ensuring the efficient, economic and
harmonized development of telecommunications in the Commonwealth of Dominica.
5.0 The Commission
At 31st December 2011, there were five (5) Commissioners serving on the
Commission. On May 1st 2011, Ms. Colleen Felix was appointed to the Commission.
Ms. Felix, has been a member of the Dominica Bar Association for three (3) years,
and has been in private practice since commencing practice at the private Bar.
National
Telecommunications
Regulatory
2011 Annual Report
Page 8
The members of the Commission for the period under review were:
Curtiss Winston: Chairman
Colleen Felix-Grant: Commissioner
Willie Fevrier: Commissioner
Colleen Felix: Commissioner
Careen Prevost: Commissioner
National
Telecommunications
Valentine Joseph: Commissioner
Regulatory
2011 Annual Report
Page 9
6.0 The Secretariat
Section 27 of the Telecommunications Act, 2000 provides for the Commission to
have such staff as is necessary for the performance of its functions.
The staff at the Secretariat at December 2011 included:
Craig Nesty
Executive Director
George James
Telecoms Engineer
Cheryl Tavernier
Administrative Assistant
Vida Williams
Office Attendant
Urania Williams
Universal Service Fund
Administrator
National
Telecommunications
Regulatory
Clementine Josephs
Administrative Officer
Austin Andre
Assistant Telecoms Engineer
2011 Annual Report
Page 10
7.0 Human Resource Development
In 2011, The NTRC staff and Commissioners participated in various training
seminars and workshops as indicated in table 1 below.
Table 1: Trainings, Workshops and Meetings Attended by Staff and Commissioners
Training/Workshops/
Meetings
Electronic Number Mapping
(ENUM) Seminar
ICT Training Workshop
12
th
ECTEL/NTRC Consultative
forum
Venue
Attendee (s)
Organized
by
Port –of Spain
Trinidad & Tobago
Mr. George James
Engineer
TATT, ENUM
LLC & CTU
Date
10.02.11 – 11.02.11
14.03.11 – 17.03.11
Port –of Spain
Trinidad &Tobago
10.05.11– 11.05.11
XVII Meeting of CITEL’s
Permanent Consultative
17.05.11 – 20.05.11
Committee II:
Radiocommunications including
Broadcasting (PCC.II)
Grenada
Santo Domingo,
Dominican Republic
Mr Craig Nesty, Executive
Director
CANTO
Ms Urania Williams
USF Administrator
Mr Curtiss Winston,
Chairman
Mr Craig Nesty
Executive Director
ECTEL
CTU
&
CITEL
Mr Craig Nesty
Executive Director
Mr Curtiss Winston,
Chairman
Dispute Resolution Training
Workshop
25.08.11 – 26.08.11
Dominica
Mr Willie Fevrier
Mr Valentine Joseph
Ms Colleen Felix
Ms Careen Prevost
Commissioners
Mr Craig Nesty
Executive Director
ECTEL
Ms Clementine Josephs,
Administrative Officer
Ms Urania Williams, USF
Administrator
ITU Centre of Excellence
Workshop on “Regulatory Trends 13.12.11 – 15.12.11
in a Converging Environment”
National
Telecommunications
Port –of Spain
Trinidad &Tobago
Regulatory
Craig Nesty
Curtiss Winston
2011 Annual Report
ITU
Page 11
Part II:
Year in Review
8.0 Operations Review
8.1 Public Consultations
Public consultations are an important part of the regulatory process as it provides
the NTRC with an opportunity to collaborate with stakeholders and the wider public
on issues and matters as they relate to decision making within the
telecommunications sector. Six (6) consultations were conducted during the review
period. Table 2 summarizes the consultations for 2011, and provides the status of
the consultations at the end of the review period.
1.
Number Portability (NP)
This consultation was the first phase of ECTEL’s recommendation to transition into
the introduction of Number Portability. As such, the purpose of the consultation was
to introduce the parameters that will guide the implementation of Number
Portability within ECTEL member states.
2.
Draft Policy on Confidential Aspects of Approved Interconnection
Agreements
This consultation was held in order to determine and establish the portions of
currently approved interconnection agreements that will be kept in the confidential
section of the interconnection registrar that is maintained by the National
Telecommunications Regulatory Commissions of the ECTEL Member States. ECTEL
recommended that all currently approved interconnection agreements are made
available via download to the general public.
3.
LIME’s Proposed Reference Interconnection Offer (RIO)
The main objective of the consultation was to obtain the views of interested parties
on LIME’s proposed Reference Interconnection Offer (RIO). Although RIO has to be
approved by the NTRC, it is intended to promote an increased level of predictability
and transparency in interconnection within ECTEL jurisdictions.
National
Telecommunications
Regulatory
2011 Annual Report
Page 12
4.
Guidelines for pricing of Access to Facilities in the ECTEL Member
States
ECTEL’s main purpose for conducting this consultation was to make
recommendations to the National Telecommunications Regulatory Commission on
how pricing access to facilities could be determined for cases in which the
telecommunications providers were unable to reach an agreement on the pricing of
shared infrastructure.
5.
New License Templates and Revised Schedules
This consultation was undertaken in order to determine the views of interested
parties in regard to the proposed scope of several new telecommunications
licenses. The new draft licenses that ECTEL rolled out included: Mobile Virtual
Network Operations (MVNO), Resale of Leased Circuits (RLC) Service, Value Added
Services (VAS), Internet Exchange Point (IXP) Service, and Internet Protocol (IP)
Telephony License. ECTEL recommended the adaptation of the proposed licenses
and the necessary amendments to the fee regulations to reflect the new licences
and other fee proposals in the ECTEL Member States.
6.
Draft Electronic Communications Bill
On 27th September 2010, the NTRC received from ECTEL the draft Electronic
Communications Bill for review by the NTRCs by 31st October 2010. This was to be
followed by a public awareness and consultation campaign on the draft Bill. The
goal of this Bill was to reform telecommunications legislation within the ECTEL
Member States by repealing or replacing the Telecommunications Act with
Legislation that has a broader scope to include the electronic communications
sector.
On February 3, 2011, a national consultation was held to discuss the new draft
Electronic Communications Bill.
National
Telecommunications
Regulatory
2011 Annual Report
Page 13
Table 2: Summary of 2011 Consultations
No.
Consultation Matters
Period of
Consultation
Objective
Status
Pending
Pending
1
Number Portability (NP)
06.22.11 – 09.16.11
Promotion of discussions on
NP provisions laid down by the
new provisions in them
Universal Service Directive
2
Draft Policy on
Confidential Aspects of
Approved Interconnection
Agreements
06.22.11 – 09.16.11
Policy Document
3
LIME’s Proposed
Reference
Interconnection Offer
(RIO)
Adoption of document to
promote transparency in
interconnection
06.22.11 – 10.03.11
Setting the rate for access to
facilities where
providers fail to reach
agreement on rates
4
Guidelines for pricing of
Access to Facilities in the
ECTEL Member States
5
New License Templates
and Revised Schedules
12.01.11 – 02.29.12
Draft Electronic
Communications Bill
09.27.10 – 10.31.10;
National consultation
held
03.02.11
6
National
11.10.11 – 01.06.12
Telecommunications
Regulatory
Pending
Pending
Adoption of proposed licenses
and effect necessary
amendments to the Fees
Regulations
Pending
Reform of legislation relating
to telecommunications in the
ECTEL States
Pending
2011 Annual Report
Page 14
8.2 Approved Regulations
In 2011, three (3) regulations were approved. The approved regulations were the
Telecommunications (Retail Tariff) Regulations, Telecommunications (Amateur
Radio) Regulations and Telecommunications (Exemption) Regulations.
1.
Telecommunications (Retail Tariff) Regulations
The scope of the draft regulations remained essentially the same as the existing
regulations, with a minor exception – the regulations permit the Commission to
consider wholesale prices to the extent that they affect or are related to the retail
pricing conduct of the provider.
On 7th July 2010, ECTEL submitted the draft Regulations to the NTRC for comments
by 30th July. Subsequently, the Regulations were sent out for public consultation
which ran from 5th August to 11th October 2010.
The regulations were approved on September 25, 2011. However, at the end of the
period under review the Regulations were not promulgated.
2.
Telecommunications (Amateur Radio) Regulations
The draft Telecommunications (Amateur radio) Regulations were submitted by
ECTEL on 7th July 2010, for review by the Commission prior to being sent out for
public consultation.
Public consultation on the draft Regulations ran from 5th August to 11th October
2010. The regulations were approved on September 25, 2011. However, at the end
of the period under review the Regulations were not promulgated.
3.
Telecommunications (Exemption) Regulations
The
Telecommunications
(Exemption)
Regulations
exempt
certain
telecommunications stations and apparatus from the requirements to be licensed
under the Telecommunications Act. Provision was also made for the use of certain
devices that use electromagnetic spectrum so as to minimize any probable harmful
interference.
The Draft Exemption Regulations were consulted upon between November 2006
and February 2007. They were approved at the 15th Council of Ministers on May 18,
2007. ECTEL submitted the approved Regulations to the Ministry of
National
Telecommunications
Regulatory
2011 Annual Report
Page 15
Telecommunications on July 4, 2007 for processing
Regulations were promulgated on November 10, 2011.
and
publication.
The
8.3 Regulatory Functions – Licensing and Technical
The NTRC engaged in a number of matters related to licensing and other technical
matters. During the reporting period the Commission received a total of seventythree (73) applications for Licenses and Frequency Authorizations. Sixty -eight (68)
applications were recommended, while sixty-seven (67) were approved and also
issued (Appendix 1).
Individual Licenses
In 2011, only one (1) individual license application – Internet Networks/Services,
was received during the period under review (Appendix 2). This application was
received from Wikibuli Communications Inc.
Class Licenses
Class licenses are subdivided into a number of categories, which include Type A,
Type B and Type C Licenses (Figure 1).
Type A
Private
Networks/Services
Value-Added
Services
Internet Service
Provision
Type B
Radio Licenses
•Land Mobile
•Maritime mobile
•Aeronautical
mobile
•Amateur radio
•Familly radio
•Citizen band radio
•Community Radio
Type C
Customer
Premises Wireman
Cerification
Type Approval
Certification
Customer Premises
Installation &
Repair Certification
Telecommunications
Equipment Dealer
International
Simple Voice Resale
Figure 1: Subcategories of Class Licences
National
Telecommunications
Regulatory
2011 Annual Report
Page 16
Five (5) applications for Type A class licenses were received and, six (6) licenses
were approved and issued, which included a licenses application from the previous
reporting period (Appendices 3A-3B).
Within the Type B sub-category, twenty-six (26) applications were received and
issued (Appendix 4). While in the Type-C category, six (6) applications for
Telecommunications Equipment Dealer were received however, none were
approved or issued (Appendix 5B).
Type Approval
Type approval, which falls under the Type C subcategory of Class Licenses, is
required to ensure that equipment used and offered for sale on the local market is
not a potential source of harmful interference, and this equipment conforms to
required telecommunications standards. Twenty-nine (29) applications were type
approved (Appendix 5A).
Special Licenses
No Special licenses were issued by the Minister of Telecommunications during this
reporting period.
Frequency Authorizations
During the period under review, the NTRC received six (6) applications for
frequency authorization. However, seven (7) applications were recommended and
six (6) were approved and issued. (Appendix 6)
8.4 Licensed Telecommunications Service Providers
Individual Licensed Service Providers
At the end of the review period, there were eleven (11) individual licenses holders.
These licenses included: four (4) Fixed Public Telecommunications, two (2) Public
Mobile Telecommunications, three (3) Internet Network and Services and two (2)
Submarine Cable Landing Licenses
Figure 1).
National
Telecommunications
Regulatory
2011 Annual Report
Page 17
Individual Licensed Service Providers
Fixed Public
Telecommunications
Public Mobile
Telecommunications
Internet and
Network Services
Submarine Cable
Landing
•Cable & Wireless
Dominica Ltd/ LIME
•Cable & Wireless
Dominica Ltd/ LIME
•Cable & Wireless
Dominica Ltd/ LIME
•Middle Caribbean
Network
•Marpin 2K4 Limited
•Digicel (Dominica)
Limited
•Marpin 2K4 Limited
•Cable & Wireless
Dominica Ltd/ LIME
•Iristel (DA) Inc *
•SAT
Telecommunications
Ltd*
Figure 1:
•SAT
Telecommunications
Ltd*
Individual License Holders in Dominica at December 2011
Source: ECTEL/NTRC Dominica
1.1.1.1
Class Licensed Service Providers
* Service provider has not started offering the service to the public as of December 2011
Class Licensed Service Providers
As of December 2011, there were six (6) Class License (Type A) holders, however,
none of the holders provided any significant level of telecommunications services to
the general public (Figure 2).
International
Simple Voice
Resale (ISVR)
Private
Networks/Services
Dominica
Electricity Services
(DOMLEC)
GlobeCast UK Ltd
National
NS Optimum
(Caribbean)
Grace Internet &
Rental Services
Voicetel Inc
Figure 2:
Internet Services
Provision
Computer &
Trading Solutions
(CATS) Ltd
Class License (Type A) Holders in Dominica at December 2011
Telecommunications
Regulatory
2011 Annual Report
Page 18
8.5 Radio Broadcasting
There were three (3) reports of Q95, on the assigned frequency of 97.5 MHz in
Marigot, which caused interference to Kairi FM’s 88.7 MHz in the Marigot area. Both
stations had been co-located on the same antenna tower owned by LIME.
The first complaint was officially submitted on March 11, 2011. It was observed that
because of the deteriorating conditions of the Kairi FM’s Receiving antenna system
at Marigot, the signal received from Portsmouth for rebroadcast in the Marigot area
was susceptible to interference. The NTRC recommended and ensured that Q95
moved their transmission antenna furthest away from Kairi’s receiving antenna and
that Q95 reduce their output power to about half, in order to cease the interference
problem.
The second complaint was submitted on June 1, 2011 and the third complaint was
made on November 24, 2011. In both cases, it was observed that the cause of the
problem was the further deterioration of Kairi’s receiving antenna and cabling for
the reception of Kairi’s signal from Portsmouth. Furthermore, there was a slight
suspicion that the vulnerability of Kairi’s signal was also affected by intermodulation
caused by FM signal(s), supposedly, from the French Territories. Kairi FM was
advised to optimize their receiving system to resolve the matter. Since then, it
appeared that some work had been done to optimize Kairi’s receiving system at
Marigot.
8.6 Financial Review
Revenue Collected
The revenues generated by the NTRC are based on license fees (individual and class
licenses), frequency authorizations (Spectrum Fees), as well as numbering fees. For
the 2011 review period the combined total amount of revenue collected by the
NTRC was $4,718,632.99 XCD (Table 3).
National
Telecommunications
Regulatory
2011 Annual Report
Page 19
Table 3: Distribution of Fees Collected
Category of Fees
NTRC's
Revenue
Fees Collected
License Fees
2,603,432.99
Spectrum Fees
2,053,250.00
752,960.00
61,950.00
61,950.00
4,718,632.99
100%
Numbering Fees
Total
%age of Total Fees
Collected
Remitted to
ECTEL
Remitted to
Government
2,603,432.99
1,297,090.00
3,200.00
814,910.00
1,297,090.00
2,606,632.99
17.3%
27.5%
55.2%
It is important to note that not all the revenues collected by the NTRC are actually
retained by the Commission. The fees obtained for frequency authorizations are
submitted to the Eastern Caribbean Telecommunications Authority (ECTEL),
however, ECTEL appropriates a portion of the frequency authorizations to the
NTRC’s operational budget. All license fees are remitted to the Government of
Dominica, and Numbering Fees are retained by the NTRC. Table 3 gives a summary
of the total amount and the distribution of all the license fees, frequency
authorization fees and numbering fees that were collected in 2011.
NTRC's Allocation,
17.3%
Government
Revenue, 55.2%
Remitted to
ECTEL, 27.5%
Figure 3:
National
Distribution of Fees collected
Telecommunications
Regulatory
2011 Annual Report
Page 20
In 2011, there was a 22.7 % decrease in the license fees collected by the NTRC, as
well as a 20.41 % decrease in the fees collected for frequency authorizations. These
decreases were as a result of (1) late payments made outside the relevant due
period
and
(2)
also,
in
the
case
frequency
authorisation
fees,
surrender/relinquishment of frequencies resulted in a reduction of fees collected.
However, there was a 3.7 % increase in the numbering fees collected by the NTRC,
over the previous (2010) reporting period.
$0.06
2011
$2.05
$2.60
$0.06
2010
$2.59
$3.37
$0.12
2009
$2.98
$3.68
2008
$2.81
2007
$2.82
2006
$1.90
$1.58
$0.93
$3.47
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Figure 4:
Spectum fees
$8.00
Millions
Total Fees Collected
License Fees
$7.00
Numbering Fees
Breakdown of Fees collected
NTRC Budget
NTRC’s financial year extends from October to September, as such, this report
address the financial period October 1, 2010 to September 30, 2011.
In September 2011, the NTRC received its annual expenditure budget from ECTEL,
which was a total of $752,960.00 XCD. This represented a 3.7 % increase in the
budget received during the 2010 period, XCD $726,050.00; namely due to
increased staff costs. See Appendix 8 for the audited financial statements, October
1, 2010 to September 30, 2011.
National
Telecommunications
Regulatory
2011 Annual Report
Page 21
Part III: The Scope & Development of the
Telecommunication’s Sector within Dominica’s
Economy
9.0 Impact of Telecommunications on Economic and Social
Development
9.1 Impact of Telecommunications on Economic Development
Dominica’s economy continued to grow in 2011 as economic performance was
represented by a 1.71 % increase in Gross Domestic Product (GDP). This increase
in performance is mainly attributed to trends in Transport, Storage &
Communication, Wholesale & Retail, and Education sectors. These sectors
contributed XCD $147.68M, XCD $148.65M, and XCD $125.58M, respectively to
Dominica’s economy. Within this same period, 2011, the exclusive contribution of
the telecommunications sector to GDP was XCD $64.35M; this denotes a 0.53 %
increase in the contributions of the Telecommunications sector to Dominica’s GDP.
Among the sectors that contributed the most to Dominica’s GDP, the Transport,
Storage & Communications sector sustained the position as an eminent contributor
to Dominica’s economy since 2005. The contribution of the telecommunications
sector accounted for approximately 43.6 % of GDP as it relates to the Transport,
Storage & Communications sector; XCD $64.35M. In 2011, the telecommunications
sector’s contribution to Dominica’s economy was more than that of the Electricity &
Water Supply sector (XCD $53.45M), as well as the Mining & Quarrying,
Manufacturing, and Hotel & Restaurant sectors combined (XCD $62.7M).
Figure 5 illustrates the top 8 contributors to GDP relative to the contributions of the
telecommunications sector.
National
Telecommunications
Regulatory
2011 Annual Report
Page 22
Top Eight (8) Contributors to GDP Relative to
Telecommunications
180.00
160.00
Wholesale & Retail
Trade
Income ($ Million)
140.00
Transport, Storage and
Communication
120.00
Education
100.00
Agriculture, Livestock &
Forestry
80.00
Real Estate, Renting &
Business Activities
60.00
Public Administration &
Defense; Compulsary
Social Security
Financial
Intermediation
40.00
20.00
Construction
0.00
2003
2004
2005
2006
2007
2008
2009
2010
2011
Telecommunications
Year
Figure 5:
Top contributors to Gross Domestic Product
Based on Gross Value Added (GVA), growth in the telecommunications sector was
lower than that of Dominica’s economy. The island’s economy grew by 1.71%,
while the telecommunications sector grew by 0.52%. It is also important to note
that the telecommunications sector grew more than the aggregate Transport,
Storage & Communication sector, which grew by 0.40 % (Table 4).
National
Telecommunications
Regulatory
2011 Annual Report
Page 23
Table 4: Growth Rate of Gross Value Added by Economic Activity in Constant (2006) Prices
Economic Activity
2005
2006
2007
2008
2009
2010
2011
-0.48
0.55
-9.18
14.99
1.65
-7.92
7.51
3.64
23.90
25.83
-14.90
3.88
-17.51
11.78
-13.37
11.28
27.64
25.22
-47.17
-5.00
10.00
-2.56
5.36
-4.02
-12.23
-2.62
-1.46
-5.95
Electricity & Water Supply
8.93
1.40
1.85
2.08
6.83
5.77
-0.81
Construction
7.13
9.06
30.10
32.60
-7.27
8.70
4.45
Wholesale & Retail Trade
-4.34
-4.91
16.97
15.27
4.72
0.04
7.19
Hotels & Restaurants
-2.43
9.06
0.05
1.60
-4.05
0.52
8.28
Transport, Storage and
Communication
10.21
7.97
8.34
7.72
-6.14
-0.89
0.40
Financial Intermediation
4.78
6.44
13.32
3.39
0.45
3.18
1.18
Real Estate, Renting &
Business Activities
0.89
-1.06
1.32
1.89
2.56
0.29
0.38
Public Administration &
Defense; Compulsory
Social Security
-5.45
2.07
1.81
-2.56
5.70
2.31
6.06
-15.53
13.69
-6.25
6.86
0.23
5.26
-8.09
Health & Social Work
-3.58
-0.70
2.55
2.52
3.63
6.06
-0.75
Other Community, Social
and Personal Services
-1.33
4.35
2.68
-2.85
0.26
0.52
2.18
Private Households with
Employed Persons
17.45
14.86
2.10
2.74
-1.33
6.08
7.01
Less FISIM
3.71
10.97
6.03
-0.12
5.14
5.14
0.78
Growth rate
-1.74
3.67
3.94
7.77
-0.76
0.73
1.71
Telecommunications
(%)
7.81
6.90
4.46
7.66
-5.04
-1.01
0.52
Agriculture, Livestock &
Forestry
Fishing
Mining and Quarrying
Manufacturing
Education
Source: Ministry of Finance – Central Statistical Office
National
Telecommunications
Regulatory
2011 Annual Report
Page 24
9.2 Impact of Telecommunications of Government Revenue
In 2011, the Government of Dominica raised an excess of XCD $15.7 million in
revenues from the telecommunications sector. These revenues were generated
from import duties, value added tax (VAT), corporate income tax, and pay-as-youearn (PAYE). (Table 5).
Table 5: Government Revenue from the Telecommunications Sector
2010
Telecommunications Receipts ($)
2011
Import Duties 1
$
532,142.52 2
$ 1,062,990.04
License Fees
$
3,368,268.88
$ 2,603,432.99
Value Added Tax
$
9,559,377.72
$ 7,164,726.54
Corporate Income Tax
$
1,442,902.90
$ 3,013,820.48
Pay-as-You-Earn (PAYE)
Total Telecommunications
Receipts
$
1,578,941.92
$ 1,874,812.71
$ 15,949,491.42
$ 15,719,782.76
Source: Customs and Excise Division and Inland Revenue Division
The Government revenues obtained from import duties in 2011 totaled XCD
$1,062,990.04. The earnings from license fees and value added tax decreased by
22.7 % and 25.1 % respectively. From 2010 to 2011, there was an 18.7 %
increase in the Government revenue generated from PAYE. However, the most
significant increase in the revenues generated by the Government came from
corporate income tax, where there was a 108.9 % increase in the revenue obtained
by Government (Table 5).
9.3 Employment Creation within the Telecommunications Sector
Data provided by the Inland Revenue Division indicated that employment within the
telecommunications sector peaked in 2006, with a total of 338 employees.
However, between 2007 and 2010, the number of persons employed within the
sector declined due to increased competition and decrease in the revenues of
service providers, the merger of licensed service providers, and service providers
outsourcing business functions. In 2011 however, employment in the
telecommunications sector increased by 2.75 %, to 261 employees (Figure 6).
1
2
Import Duties do not include environmental or any other taxes
Import Duties for July – December 2010
National
Telecommunications
Regulatory
2011 Annual Report
Page 25
Employment in the Telecommunications Sector
2011
261
2010
255
2009
270
Year
2008
292
2007
329
2006
338
2005
311
2004
328
2003
298
0
Figure 6:
50
100
150
200
250
Number of Persons Employed
300
350
400
Employment in the Telecommunications sector
Source: Inland Revenue Division
According to data provided by the Inland Revenue Division, in 2011 the total payroll
of the five (5) active telecommunications service providers was XCD $11.8M. This
represented an increase of approximately 4.3 % in the total payroll, as compared to
the 2010 payroll figure of XCD $11.4M. The increase in the total payroll is a direct
consequence of the increase in the total number of employees directly employed by
the active service providers (Figure 7).
Millions
Payroll in the Telecommunications Sector
$13.32
$13.50
$13.16
$13.22
$13.00
$12.50
$12.10
$12.20
$11.50
$11.89
$11.64
$12.00
$11.40
$11.12
$11.00
$10.50
$10.00
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
Figure 7:
Payroll of the Telecommunications service providers (XCD millions)
Source: Inland Revenue Division
National
Telecommunications
Regulatory
2011 Annual Report
Page 26
10.0 Trends in the Telecommunications Market
10.1 Revenues and Investments
Revenues
In 2011, revenues within the telecommunications sector were estimated to be
approximately XCD $91.7 million. This represented a 4.6 % decrease in revenues
as compared to 2010, XCD $96.1 million (Figure 9). The mobile sector continued to
contribute the most to revenues, accounting for 54 % of total revenues, while
broadband contributed 12%, and fixed line contributed 33% to total revenues
obtained by licensed service providers (Figure 8Error! Reference source not
found.).
Revenue by Service Type
Other
1%
Fixedline
33%
Mobile
54%
Broadband
12%
Figure 8:
National
Revenues generated by telecommunications service type
Telecommunications
Regulatory
2011 Annual Report
Page 27
Investments
$120
$50
$45
$100
Millions
$40
$35
$80
Revenues
$30
$60
$25
$20
$40
$15
$10
$20
$5
$-
$2002
2003
2004
2005
2006
Revenues
Figure 9:
2007
2008
2009
2010
2011
Investments
Revenues and Investment in telecommunications sector
10.2 Fixed Voice Market Data
National Customer Base and Penetration Rate
In 2011, the number of fixed line customers continued to decline. The total
number of fixed line customers declined by 4.5 % in comparison to the previous
period (Figure 10).
It is important to note that fixed lines continued to act as a channel for broadband
internet. As such, this may have delayed the rate of decline of fixed lines. The
transition from fixed line to mobile was another factor that contributed to the
decline in revenues from fixed lines, as consumers were embracing the flexibility
and convenience of mobile calling.
National
Telecommunications
Regulatory
2011 Annual Report
Page 28
Investments
Millions
In 2011, investments by the telecommunications service providers totaled XCD
$16.7 million. This represented a slight increase of 1.8 % from the previous year,
2010, XCD $16.4 million (Figure 9).
Fixed Lines in Service & Fixed Line Penetration
Customers
Penetration Rate
40%
25,000
Customers
30%
25%
15,000
20%
10,000
15%
10%
5,000
Penetration Rate
35%
20,000
5%
0%
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
Figure 10:
Fixed Line customers and Fixed Line penetration
Fixed line penetration has been declining throughout all ECTEL Member States.
However, Dominica and St. Lucia continued to show the lowest penetration rates of
21 % (Figure 11).
45%
Penetration Rate
40%
35%
30%
25%
20%
15%
10%
5%
0%
2005
2006
2007
2008
2009
2010
2011
Year
Figure 11:
Dominica
Grenada
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
ECTEL States Average
Fixed Line penetration in ECTEL States
Source: Eastern Caribbean Telecommunications Authority
National
Telecommunications
Regulatory
2011 Annual Report
Page 29
10.3 Internet Market Data
The growth of broadband internet is essential to the development of an ICT
economy. In 2011, the internet customer base totaled 9,025. This represented a
9.12 % increase in the customer base, as compared to the previous year’s total of
8,271 customers (Figure 12).
Internet (Broadband & Dial up) In Service and
Penetration
14.0%
10,000
9,000
Customers
7,000
10.0%
6,000
8.0%
5,000
6.0%
4,000
3,000
4.0%
2,000
2.0%
1,000
0
Penetration Rate
12.0%
8,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
0.0%
Year
Figure 12:
Customers
Penetration Rate
Internet Service customers and penetration rate
The Broadband Commission for Digital Development, a partnership between the
International Telecommunications Union (ITU) and UNESCO was established in May
2010 with the aim to boost the importance of broadband on the international policy
agenda and believes that expanding broadband access in every country was key to
accelerating progress towards the Millennium Development Goals (MDGs) by the target date
of 2015. One of the key targets of the Commission is to make Broadband affordable.
By 2015, entry-level broadband services should be made affordable in developing countries
through adequate regulation and market forces (amounting to less than 5% of average
monthly income).
National
Telecommunications
Regulatory
2011 Annual Report
Page 30
Despite the presence of three (3) service providers in the market, namely:- LIME,
Marpin 2K4 and SAT Telecommunications, the prices for 1 mbps, by the provider
with the most market share, was $89. The affordability rate for fixed broadband in
Dominica in 2011 was 5.9% of Gross National Income (GNI).
Fixed Broadband Prices as a % of GNI
St Vincent & Grenadines
St Lucia
St Kitts & Nevis
Grenada
Dominica
0%
2%
2011
Figure 13:
4%
2010
6%
8%
10%
Target
Prices as a % of GNI
Source: ITU - Measuring Information Society Publication
This was a percentage reduction of 31% from the previous year (2010), a value
change of 2.6%. The change experienced in Dominica was not a result of price
reduction but as a result of an increase in the GNI.
It is important to note however, that 2011 was the first year that SAT
Telecommunications offered Internet service to the public.
Another key target of the Broadband Commission for Development was getting
people online. By 2015, Internet user penetration should reach 60% worldwide, 50% in
developing countries and 15% in less developed countries.
The broadband penetration rate in Dominica for 2011 was 12.2 %. While this rate
was lower than the average penetration rate of all ECTEL Member States,
Dominica’s penetration rate was consistent with the penetration rate of the majority
of ECTEL Member States (Figure 14). St Kitts & Nevis is the only island in the
ECTEL States that enjoys a penetration rate in excess of 15%. It is important to
note that this penetration figure only took into account the fixed broadband
connection. With the proliferation of smartphones and tablets, more persons were
using these handheld devices to connect to the Internet.
National
Telecommunications
Regulatory
2011 Annual Report
Page 31
Internet Penetration Rate in ECTEL States
Penetration Rate
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
Dominica
St. Kitts and Nevis
Figure 14:
10.4
Grenada
St. Lucia
Internet penetration rates in ECTEL States
Mobile Market Data
Mobile in Service and Mobile Penetration
160%
140%
Customers
100,000
120%
80,000
100%
60,000
80%
60%
40,000
40%
20,000
20%
0
Penetration Rate
120,000
0%
2004
2005
2006
2007
2008
2009
2010
2011
Year
Customers
Figure 15:
Penetration
Mobile service customers and penetration rate - Dominica
National
Telecommunications
Regulatory
2011 Annual Report
Page 32
In 2011, while there were only two (2) licensed service providers, LIME and Digicel,
Dominica’s mobile market began experiencing the effects of saturation. This was
evident as the mobile market customer base decreased by 3.72%, and the
penetration rate also decreased by 2.6% (Figure 15).
Within ECTEL Member States, Dominica’s mobile penetration rate, 140%, was the
second highest, as St. Kitts had the highest penetration rate of 146% (Figure 16).
Penetration Rate
Mobile Penetration Rate in ECTEL States
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
Figure 16:
Dominica
Grenada
St. Kitts and Nevis
St. Lucia
Mobile penetration rates in ECTEL States
National
Telecommunications
Regulatory
2011 Annual Report
Page 33
Appendices 1 - 8
Appendix 1:
Telecommunications Licenses
January – December 2011
Number of
Applications
Recommended by
ECTEL/NTRC
Approved
Issued
Individual and Submarine Cable
0
0
0
0
Fixed Telecommunications
0
0
0
0
Public Mobile/Cellular Telecommunications
0
0
0
0
Internet Networks Service
1
0
0
0
Submarine Cable Landing
0
0
0
0
Sub-total
1
0
0
0
Private Networks/Services
1
1
1
1
Value Added Services
0
0
0
0
Internet Services Provision
2
3
3
3
International Simple Voice Resale
0
0
0
0
Broadcasting Radio/TV
2
2
2
2
Sub-total
5
6
6
6
0
0
0
0
Category Licenses
Class (Type A)
Class (Type B)
Land Mobile
National
Telecommunications
Regulatory
2011 Annual Report
Page 34
Number of
Applications
Recommended by
ECTEL/NTRC
Approved
Issued
Maritime Mobile
0
0
0
0
Aeronautical Mobile
0
0
0
0
25
25
25
25
Citizen Band Radio
0
0
0
0
Family Radio
1
1
1
1
26
26
26
26
0
0
0
0
29
29
29
29
Premises Installation
0
0
0
0
Telecommunications Equipment Dealer
6
0
0
0
35
29
29
29
Radio /TV Broadcasts
2
2
2
2
Private Networks, Mobile, Fixed & Internet Transmissions
4
5
4
4
Sub-total
6
7
6
6
0
0
0
0
73
68
67
67
Category Licenses
Amateur Radio
Sub-total
Class (Type C)
Customer Premises Wireman certification
Type Approval certification Customer
Sub-total
Frequency Authorization
Special
Radio Broadcast (Temporary)
Total
National
Telecommunications
Regulatory
2011 Annual Report
Page 35
Appendix 2: Applications for Individual License
Individual Licenses – Applications
Application Status
Category of License
Organization
Fixed
Public
Public
Mobile
Internet
Network/Services
Wikibuli
Communications
Inc
National
√
Telecommunications
Regulatory
Submarine
Cable
Landing
Date
Received
26.11.2011
Date
12.12.2011
2011 Annual Report
Remarks
Not recommended by
ECTEL – did not meet
financial evaluation
criterion
Page 36
Appendix 3A: Applications for Type A Class Licenses
Type A Class Licenses
Category of License
Organization
Private
Networks/Services
Value-Added
Services
NS Optimum
(Caribbean) Ltd
GlobeCast UK Ltd
Application Status
Internet
Services
Provision
√
√
International
Simple Voice
Resale
Date
Received
08.04.2011
20.04.2011
Grace Internet
Café
√
28.04.2011
NS Optimum
(Caribbean) Ltd
√
06.12.2011
Computer and
Trading Solutions
(CATS) 3
√
30.08.2010
Date
08.07.2011
Recommended
20.07.2011
21.06.2011
Issued
Recommended
24.06.2011
11.07.2011
Issued
Recommended
20.07.2011
Issued
Request for
termination of license
issued on 07.20.2011
20.01.2011
Recommendations
Pending
Recommended
20.07.2011
Issued
3
Application received prior to 2011
National
Telecommunications
Regulatory
2011 Annual Report
Remarks
Page 37
Appendix 3B: Applications for Broadcast Systems Class Licenses
Broadcast Systems - Radio
Application Status
Organization
Date Received
Portsmouth Community Watch Foundation Inc.
02.02.2011
Cable & Wireless Dominica Ltd (LIME)
01.06.2011
Radio En Ba Mango 4
24.02.2011
4
Date
Remarks
25.03.2011
Recommend
08.06.2011
Issued
08.07.2011
Recommended
20.09.2011
Issued
Recommendation & Issuance pending
National
Telecommunications
Regulatory
2011 Annual Report
Page 38
Appendix 4: Applications for Type B Class Licenses
Type B Class Licenses
January - December 2011
Number of
Applications
Recommended by
NTRC
Approved
Issued
Land Mobile Radio
-
-
-
-
Maritime Mobile Radio
-
-
-
-
Aeronautical Mobile Radio
-
-
-
-
25
25
25
25
Family Radio
1
1
1
1
Citizen Band Radio
-
-
-
-
26
26
26
26
Category of License
Amateur Radio
Total
National
Telecommunications
Regulatory
2011 Annual Report
Page 39
Appendix 5A: Applications for Type C Class Licenses – Type Approval
Type C Class Licenses – Type Approval
Certificate No.
Manufacturer / Granted to
Product
Equipment Type
Model
Identifier
Date Granted
DMA – 0311 – 0066e
Hyundai Mobis Co., Ltd.
Digital Car Audio
System
Bluetooth BDR/EDR
PA710VGGB_MY
18.03.2011
DMA – 0311 – 0067e
Hyundai Mobis Co., Ltd.
Digital Car Audio
System
Bluetooth BDR/EDR
PA760VGGB_MY
18.03.2011
DMA – 0311 – 0068a
Continental Automotive
Systems US Inc.
Continental
Electronic Control
Unit (ECU)
Transmitter
Passive Entry
Passive Start
System
M3N5WY8434
25.03.2011
DMA – 0311 – 0069a
Systems US Inc.
Passive Key
Transmitter
Passive Entry
Passive Start
System
M3N5WY8609
25.03.2011
DMA – 0311 – 0070a
Systems US Inc.
Easy Key Active
Antenna
Passive Entry
Passive Start
System
M3N-65981421
25.03.2011
DMA – 0311 – 0071a
Systems US Inc.
Innovative RF
Receiver (IRX)
Module
5WK49097
31.03.2011
DMA – 0311 – 0072a
Systems US Inc.
5WY7909
31.03.2011
DMA – 0311 – 0073a
Systems US Inc.
National
Telecommunications
Passive Keyless
Entry and Start
System
Electronic Control
Unit (ECU)
Transmitter
Passive Keyless
Entry and Start
System
Passive Key
Transmitter
Passive Entry
Passive Start
System
Regulatory
2011 Annual Report
5YW8406
Page 40
31.03.2011
Certificate No.
Product
Equipment Type
Model
Identifier
Date Granted
DMA – 0311 – 0075e
Nintendo of America, Inc.
Nintendo of
America, Inc.
Nintendo 3DS
CTR-001
31.03.2011
DMA – 0411 – 0076p
Panasonic
Personal Computer
Personal Computer
CF-19
05.04.2011
DMA–0411-0078p
AVAYA
Communication
Server
Telecommunications
CS1000
15.04.2011
DMA – 0611 – 0079p
US Robotics
Courier 56K V.92
Business Modem
Telecommunications
USR3453C
10.06.2011
DMA – 0611 – 0080t
Apple Inc.
Apple iPhone 3GS
Telecommunications
A1303
10.06.2011
DMA – 0611 – 0081t
Apple Inc.
Apple iPhone 4
Telecommunications
A1332
10.06.2011
DMA – 0911 – 0082a
OMRON Automotive
Electronics, Inc.
OMRON Passive
Anti-Theft System
(PATS) transceiver
Anti-Theft System
(PATS)
D7520013
26.09.2011
DMA – 0911 – 0083a
Lear Automotive Services
(Netherlands) B.V.
Philippines Branch
Lear T6 Body
Control Module RF
Receiver
Remote Keyless
Entry Receiver
ZAFT6BCM
26.09.2011
DMA – 0611 – 0084a
Visteon Corporation
Nissan Bluetooth
Car Kit
Bluetooth
Transceiver
Bluetooth
Transceiver
28.09.2011
DMA – 0611 – 0085a
Mitsubishi Electric Corporation,
Himeji Works
Keyless /
Immobilizer System
Smart Start Unit
(SSU)
Keyless /
Immobilizer System
SSU
SKE133-02
25.10.2011
National
Telecommunications
Regulatory
2011 Annual Report
Page 41
Product
Equipment Type
Model
Identifier
Date Granted
DMA – 0611 – 0086a
Himeji Works
Keyless System
Receiver
Keyless System LFU
SKE134-01
25.10.2011
DMA – 0611 – 0087a
Himeji Works
Keyless System
Receiver
Keyless System
Receiver
SKE135-01
25.10.2011
DMA – 0611 – 0088a
Himeji Works
Keyless System
Hand Unit
Keyless System
Hand Unit
SKE13D-01
25.10.2011
DMA – 1111 – 0090t
Apple Inc.
Apple iPhone
Mobile Phone /
Digital Trans
Mobile Phone /
Digital Trans
25.11.2011
DMA – 0911 – 0091i
25th November 2011
RFID Reader
System
Radio Frequency
Identification
(RFID) System
DMA–0911–0092t
Multitech Systems Inc.
Multitech Modem
V.92 Portable
Data/Fax USB
Modem
DMA – 1111 – 093e
Samsung Electronics Co., Ltd.
Samsung 3D Active
Glasses
Samsung 3D Active
Glasses
DMA – 1211 – 0094a
Alpine Electronics, Inc.
ALPINE Bluetooth
Module
Bluetooth Module
Certificate No.
National
Telecommunications
Regulatory
2011 Annual Report
RWF1
V.92 Portable
Data/Fax USB
Modem
SSG-3050
IAM2.1 BT PWB
EU3
Page 42
25.11.2011
30.11.2011
30.11.2011
22.12.2011
Appendix 5B:
Applications for Type C Class
Telecommunications Equipment Dealer
Licenses
–
Type C Class Licenses – Telecommunication Equipment Dealer
Organization
Date Received
Application Status
Date
Remarks
James Electronics
06.04.2011
Issuance pending
CIS Enterprises Ltd.
07.04.2011
Issuance pending
Premier Computing Services Ltd.
12.04.2011
Issuance pending
Shine Union Trading Co. Ltd.
12.04.2011
Issuance pending
J. Astaphan & Co. Ltd.
03.05.2011
Issuance pending
Courts Dominica Ltd.
17.05.2011
Issuance pending
National
Telecommunications
Regulatory
2011 Annual Report
Page 43
Appendix 6: Applications for Frequency Authorization
Frequency Authorizations –
Application Status
`
Date
Received
Organization
Portsmouth Community Watch
Foundation Inc
02.02.2011
GlobeCast UK Ltd
20.06.2011
Cornell University
02.08.2011
Digicel (Dominica) Ltd
15.08.2011
15.08.2011
Radio En Ba Mango
27.07.2011
Cable & Wireless Dominica Ltd (LIME) 5
29.05.2008
10.09.2009
Revised
03.10.2008
10.09.2008
Revised
03.10.2008
5
5
West Indies Communications Enterprise
5
Ltd (Q95 FM)
5
Cable & Wireless Dominica Ltd (LIME)
5
27.07.2010
29.04.2010
Date
06.06.2011
Remarks
Recommended
24.06.2011
20.06.2011
Issued
Recommended
24.06.2011
Issued
Recommendation and
Issuance Pending
05.12.2011
Recommended
Recommendation Pending
10.02.2009
Recommendation and
Issuance Pending
Recommendations pending
(re 700MHz band – ongoing
consultation)
Recommended
01.07.2011
16.03.2009
Issued
Recommended
01.07.2011
17.01.2011
Issued
Recommended
15.04.2011
08.07.2011
Issued
Recommended
20.09.2011
Issued
National
Telecommunications
Regulatory
2011 Annual Report
Page 44
Appendix 7: Fees Collected
Fees Collected ($ XCD)
Category
Application
Individual
Class
Frequency Authorization
National
Total
Annual
1,000.00
0
2,564,289.77
2,565,289.77
18,627.99
7,675.23
11,840.00
38,143.22
3,200.00
0
2,050,050.00
2,053,250.00
0
0
61,950.00
61950
22,827.99
7,675.23
4,688,129.77
4,718,632.99
Numbering
Grand Total
Initial
Telecommunications
Regulatory
2011 Annual Report
Page 45
Appendix 8: Auditor’s Report and Financial Statements
WINSTON & CO
-CHARTERED CERTIFIED ACCOUNTANTSP.O.BOX 411 32 BATH ROAD ROSEAU COMMONWEALTH
OF DOMINICA
TEL/FAX (767) 448-8800
INDEPENDENT AUDITOR'S REPORT
To The Commissioners
42-2 Kennedy Avenue
Roseau
Report on the financial statements
We have audited the accompanying financial statements of National
Telecommunications Regulatory Commission, which comprise of the Balance
Sheet as at September 30, 2011, the Statement of Income and Expenditure,
Statement of Changes in Accumulated Fund and Statement of Cash Flows for the
year then ended, and a summary of significant accounting policies and other
explanatory notes set out on pages 7 to 13.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these
financial statements in accordance with International Financial Reporting Standards.
This responsibility includes: designing, implementing and maintaining internal
control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit in accordance with International Standards on
Auditing. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected
depend on the auditor’s judgments, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers internal control relevant to
the Commission’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Commission’s
internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
In our opinion, the financial statements give a true and fair view of the financial
position of National Telecommunications Regulatory Commission, as at
September 30, 2011 and its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRS)
and the Telecommunications Act No. 8 of 2000 of the Laws of the Commonwealth of
Dominica.
Austin Winston, (FCCA)
NATIONAL TELECOMMUNICATIONS REGULATORY COMMISSION
Balance Sheet
As At September 30, 2011
(expressed in Eastern Caribbean Dollars )
Notes
2011
$
2010
$
585,749
1,493,458
ASSETS
Current Assets
Cash and bank balances
-
4
Accounts Receivable
Prepayments
6,601
6,000
6,000
591,749
1,506,059
160,761
168,283
TOTAL ASSETS
LIABILITIES
Current Liabilities
752,510
1,674,342
Accounts payable and accrued liabilities
Due to related party
151,829
-
113,459
-
36,117
54,470
Total Current Assets
3(c) & 7
Plant and equipment
6
Due to the Government of the Commonwealth of Dominica
Due to the Eastern Caribbean Telecommunications Authority (ECTEL)
9
11
Due to Universal Fund
-
10
14,225
965,866
-
Total Current Liabilities
ACCUMULATED FUND
202,171
1,133,795
Accumulated surplus
367,788
356,664
182,550
179,850
15
Numbering Fees Reserve Fund
1
8
Capital Grants
4,033
Total accumulated fund
550,339
540,547
TOTAL LIABILITIES AND ACCUMULATED FUND
752,510
1,674,342
The accompanying notes form an integral part of these financial statements.
Approved on Behalf of the Board this
day March, 2012.
Executive Director
NATIONAL TELECOMMUNICATION REGULATORY COMMISSION
Statement of Income and Expenditure
Year Ended September 30, 2011
Notes
2011
$
2010
$
INCOME
ECTEL subvention
Interest Income
Other Income
Amortisation of Capital Grants
OPERATING INCOME
General and administrative expenses
Surplus/(Deficit) for the year
6
8
752,960
752,960
8,193
50
4,032
765,235
(754,111)
11,124
726,050
726,050
5,432
216
23,356
755,054
(698,248)
56,806
Statement of Changes in Accumulated fund
Notes
Balance as of September 30, 2003
Universal service fund received
Prior Year Adjustment - Prepaid rent 2005/2006
Transfer of surplus
Transfer of surplus
Prior Year Adjustment
Transfer of surplus
Prior Year Adjustment
Accum Surplus
$
14
110,179
60,215
170,394
175,299
345,693
100,107
445,800
(44,027)
(3,000)
398,773
52,507
451,280
38,299
(189,721)
299,858
56,806
356,664
11,124
367,788
Total
$
110,179
60,215
170,394
175,299
345,693
100,107
445,800
(44,027)
(3,000)
398,773
52,507
451,280
38,299
(189,721)
299,858
56,806
356,664
11,124
367,788
Statement of Cash Flows
Notes
Cash Flows from Operating Activities
Surplus for the year
Adjustment for:
Depreciation expense
Capital Grants
2011
$
2010
$
11,124
56,806
7
36,356
46,237
3 (b) & 8
(4,032)
43,448
(23,356)
79,687
Operating Profit before working capital changes
6,601
(Increase) Decrease in accounts receivable
(Increase) Decrease in prepayments
Increase (Decrease) in accounts payable and accrued liabilities
Cash (used in) generated from Operations
Net Cash (used in) generated from Operating Activities
Cash flows from Investing Activity
38,370
88,419
88,419
(6,473)
3,910
86,494
163,618
163,618
Purchase of plant and equipment
Disposal of equipment
Net Cash used in Investing Activity
Cash flows from financing Activities
Increase (Decrease) in due to related party
Adjustment to surplus
7
(30,713)
1,879
59,585
(78,605)
1,037
86,050
6
-
-
Increase (Decrease) in due to ECTEL
Increase (Decrease) in due to Universal Service Fund
Increase (Decrease) in Capital Grants
10
11
15
8
(965,866)
14,225
2,700
-
Increase (Decrease) in due to the Government of Dominica
(18,353)
Net Cash generated from Financing Activities
(967,294)
Net change in cash equivalents
Cash and Equivalents- beginning of year
(907,709)
1,493,458
Cash and Cash Equivalents- end of year
3(h)
585,749
950,866
162,690
52,720
1,166,276
1,252,326
241,132
1,493,458
NATIONALTELECOMMUNICATIONS REGULATORY
Statement of General and Administrative Expenses
Notes
2011
$
1,272
2010
$
4,038
4,254
4,150
603
1,106
Consultancies
Commissioners' allowances
42,046
9,875
72,000
67,000
Depreciation expense
36,356
46,237
Electricity expense
25,086
21,822
Miscellaneous expense
15,117
16,056
2,190
1,430
18,874
29,513
755
237
-
1,618
Insurance office contents
766
40,800
1,396
455
40,800
1,057
Repairs and maintenance
9,210
15,421
420,043
380,902
Meetings & Conference Local &Overseas
17,025
9,364
Stationery and office supplies
10,026
11,557
Telephone and fax
Training
10,198
22,771
635
9,862
16,150
4,315
Loss on foreign exchange
110
-
Vehicle Maintenance
728
2,960
1,850
2,323
754,111
698,248
Advertising and Promotion
Audit and accounting fees
Bank charges
Subscriptions & donations
VAT
Postage and delivery
Publications
Fuel expenses
Rent
Salaries and wages
13
Travel & Accommodation & Entertainment
Water and sewage
Notes to the Financial Statements
(expressed in Eastern Caribbean Dollars)
1.
Legal Status
The National Telecommunications Regulatory Commission was established by the
Commonwealth of Dominica Telecommunications Act No. 8 of 2000, which was
assented to on September 5, 2000. The Commissioners were appointed with effect
from April 1, 2001.
2.
Principal Activities
Its principal activities are to collect all fees and tariffs levied under the Act and to
ensure compliance with the Government’s international obligations on
telecommunications.
3.
Significant Accounting policies
(a)
Basis of Accounting
These financial statements are stated in Eastern Caribbean dollars and have
been prepared in accordance with International Financial Reporting
Standards (IFRS) adopted by the International Accounting Standards Board
(IASB).
The preparation of financial statements in conformity with IFRS requires
management to make estimates and assumptions that could affect the
reported amount of assets and liabilities and disclosures of contingent assets
and liabilities at the date of the financial statements and the reported amount
of revenues and expenditure during the year. Actual result could differ
significantly from those reported. The significant accounting policies adopted
in the preparation of these statements by the Commission are as follows:
(b)
Basis of preparation
The measurement basis used is the historical cost, except for Note (8) where
the value of Capital Grants has been estimated.
(c)
Plant and Equipment
Plant and equipment are recorded at cost less accumulated depreciation and
impairment losses. Depreciation is charged to the income statement on the
straight-line method at rates, which are expected to write off the costs of the
fixed assets over their estimated useful lives. The following annual rates are
used:
Furniture and Equipment
Computer Software
Computers
Building
-
15%
33.33%
20%
2.5%
3.
Significant Accounting Policies (Cont’d)
(d)
Foreign Currencies
Foreign currencies are translated to Eastern Caribbean dollars at the foreign
exchange rate ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the balance sheet date are
translated to Eastern Caribbean dollars at the exchange rate ruling at the
date. Foreign exchange differences arising on translation are recognized in
the income statement. Non- monetary assets and liabilities denominated in
foreign currencies, which are stated at historical costs are translated to
Eastern Caribbean dollars at the foreign exchange rate ruling at the date of
transaction.
(e)
Income tax
No provision has been made in the regulations, Telecommunications Act
and/or Income Tax Act for the imposition of income tax, if any.
(f)
Impairment
The carrying amounts of the Commission’s assets are reviewed at each date
to determine whether there is indication of impairment. If any such indication
exists, the assets recoverable amount is estimated. For intangible assets that
are not yet available for use, the recoverable amount is estimated at each
balance sheet date. An impairment loss is recognized whenever the carrying
amount of an asset or its cash-generating unit exceeds its recoverable
amount. An impairment loss in respect of investment property is recognized
in the same way as a revaluation decrease. All other impairment losses are
recognised in the income statement.
(g)
Revenue Recognition
Revenue earned by the Commission is recognised on a receipt basis, except
interest income, which is recognised on an effective yield basis.
(h)
Cash and Bank balances.
For purposes of the cash flow, cash and bank balances represent balances at
Banks and Petty Cash balances at year-end.
4. Accounts Receivable
2011
2010
$
$
-J & R Sound U.S.A.
-
-
-SAT Telecommunications Ltd
-
6,601
-
6,601
License fees
Initial and Annual fees
Accounts receivable, with respect to annual fees, is difficult to determine for a
particular period, unless the telecommunications providers submit their “gross
annual revenue reports” for that period. This is because annual fees are calculated
as a %age of gross annual revenue.
5.
Annual Fees
These are to be based on the licensees’ gross revenue of the previous/current years
of operations (See Note 4).
6.
Due to/from related party
The amounts due to related party represent annual license fees payable to
Government by telecommunications providers. The amounts due from related party
represent budgeted income (obtained from frequency fees paid by licensees to
ECTEL) receivable from the Eastern Caribbean Telecommunications Authority
(ECTEL). The amounts are unsecured, non- interest bearing and have no stated
repayment terms.
7. Property, Plant and Equipment
BUILDING FURNITURE & COMPUTER COMPUTERS TOTAL
(MMS Garage) EQUIPMENT
SOFTWARE
$
$
$
$
$
COST
Balance- beginning of year 2010
Accumulated depreciation
46,901
(2,932)
282,297
(218,358)
15,440
(3,999)
161,728
506,366
(112,794) (338,083)
Balance- end of year 2010
43,969
63,939
11,441
48,934
168,283
Balance- beginning of year
Additions during the year
Adjustments for disposal on cost
Adjustments for disposal on accumulated depreciation
Charge for the year
43,969
(1,173)
63,939
20,587
(3,029)
1,150
(16,051)
11,441
4,801
(5,486)
48,934
5,326
(13,646)
168,283
30,713
(3,029)
1,150
(36,356)
Closing net book values
42,796
66,596
10,755
40,614
160,761
At Year End September 30, 2011
Cost
Accumulated deprecation
46,901
(4,105)
299,855
(233,259)
20,241
(9,485)
End of Year
42,796
66,596
10,755
167,054
534,050
(126,440) (373,289)
40,614
160,761
8. Capital Grants
These are amounts given by the Government of Dominica and the Eastern Caribbean Telecommunications Authority (ECTEL). This is the
regional advisory organization, which was established by the Organization of Eastern Caribbean States (OECS) governments to provide
certain services to the National Telecommunications Regulatory Commission as outlined in the Eastern Caribbean Telecommunications
Authority Treaty and the Telecommunications Act of 2000. The amounts are amortized at equivalent depreciation rates over the
estimated life of the assets.
2011
$
Balance at begin
Additions during year
Amortized during year
Balance end of year
4,033
(4,032)
1
2010
$
27,389
(23,356)
4,033
2009
$
57,494
(30,105)
27,389
2008
$
95,237
(37,743)
57,494
9.
Due to the Government of the Commonwealth of Dominica
The amount due to the government of the Commonwealth of Dominica represents license fees collected
on behalf of the Government of the Commonwealth of Dominica. This amount is non-interest bearing and
has no stated repayment terms (See note 4).
2011
2010
$
Receipts during year
Payments during year
Balance due
10.
$
3,051,120
2,859,004
(3,015,003)
(2,804,534)
36,117
54,470
Due to Eastern Caribbean Telecommunications Authority (ECTEL)
These amounts are frequency (spectrum) fees, due to the Eastern Caribbean Telecommunications
Authority (ECTEL), collected on behalf of ECTEL.
11.
Due to Universal Service Fund
Amounts withdrawn from the Universal Service Fund account in error.
12.
Lease Commitments
The Commission has the following operational lease commitments that provides for a security deposit of
two months rental to be held in an interest bearing account, which if not utilized shall be reimbursed to the
tenant at the determination of his tenancy. The amount also includes a one-month advance payment of
st
$3,400 in the three-year lease term from April 1 2009. This lease expires on the March 31, 2012. VAT
became effective in 2006.
Expiring within seven months
20,400
Expiring in more than1 to 2 years
23,800
81,600
20,400
105,400
13.
Personnel Expenses
Administrative salaries wages and DSS contributions
14.
420,043
380,902
Universal Service Fund
Under section 44 (1) of the Telecommunications Act 8 of 2000 there is provision for establishment of the
Universal Service Fund, which is to be managed by the Commission in accordance with regulations by
the Minister for telecommunications on the recommendation of ECTEL.
The fund shall be used by the Commission on the recommendation of ECTEL to compensate any
telecommunications provider who is required to provide universal service by virtue of section 44 (4) or 45
(1) of the Act or otherwise promote universal service.
In accordance with the Telecommunications (Universal Service Fund) Regulations, 2009, S.R.O 34 of
2009: “Any monies accruing to the Fund shall be kept in one or more accounts, separate and
independent from the other operating accounts of the Commission.” The accounts of the Fund shall be
audited by an independent auditor appointed by the Commission.
At 30th September, 2011, the balances in the Fund at the National Bank of Dominica were: Savings
account $1,758,225.29 and Current account $2,890.36.
15.
Statutory Rules and Orders (S.R.O) No. 32 of 2008 – Telecommunications (Numbering) Regulations –
“The Commission shall maintain control of all telecommunications numbers to ensure fair and efficient
use of them by maintaining the National Telecommunications Numbering System Register of all providers
in respect of the numbers assigned to them”.
Numbering fees are payable in accordance with the provisions set out in the schedule. The numbering
fees payments are payable to the Commission.
16.
Financial Instruments
(a)
Fair Value
Due to the short-term nature of certain financial instruments, the Commission is of the opinion
that their carrying value approximate fair value. These financial instruments include cash and
bank, accounts payable and accrued liabilities, and amounts due to related party and the
government of the Commonwealth of Dominica.
The estimates of fair values presented herein are subjective in nature and do not necessarily
indicate the amount the Commission could realise in current market exchange. Assets such as
prepayment expense are excluded from fair value. Thus, the total fair value amount cannot be
aggregate to determine the underlying economic value of the Commission.
(b)
Credit Risk
Credit risk represents the accounting loss that would be recognised at the reporting date if
counterparties failed completely to perform as contracted.
To reduce exposure to credit risk, the Commission performs ongoing credit evaluations of the
financial condition of its customers, in some case requiring collateral. The Commission invests its
available cash with various financial institutions. Although, the Commission is exposed to creditrelated losses in the event of non-performance by counterparties to financial instruments, it does
not expect any counterparties to fail to meet their obligations given their credit ratings.
Secretariat Information
P.O. Box 649
26 King George V Street
Roseau
Commonwealth of Dominica
Telephone: + 1767 440 0627
Facsimile: + 1767 440 0835
Email: secretariat@ntrcdom.org
Website: www.ntrcdom.org
Eastern Caribbean Telecommunications Authority
P.O. Box 1886
Vide Bouteille
Castries
St. Lucia
Telephone: + 1758 458 1701
Facsimile: + 1758 458 1698
Email: ectel@ectel.int
Website: www.ectel.int

View report - NTRC Dominica

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