Ethiopia Digital Foundations Project

REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – FIRMS SELECTION)

Country:   Federal Democratic Republic of Ethiopia

Name of Project: Ethiopian Digital Foundation Project (EDFP)

Credit No.: IDA 68560

Assignment Title: Assisting ECA to issue further class licenses and authorizations in specific market segments, including broadcasting – ECA

Reference No.: MINT/DE/QCBS/C-22/21

The Federal Democratic Republic of Ethiopia has received financing from the World Bank toward the cost of the Ethiopia digital foundation project (EDFP), and intends to apply part of the proceeds for consulting services.

The consulting services (“the Services”) include Assisting ECA to issue further class licenses and authorizations in specific market segments, including broadcasting - ECA

1. Introduction

The telecommunications sector in Ethiopia is currently experiencing a transformative shift, driven by technological advancements and increased competition among service providers. As the market evolves, the Ethiopian Communications Authority (ECA) recognizes the critical need for a clear and comprehensive guidelines for class licensing. This guidelines will serve to streamline licensing processes, enhance regulatory compliance, and ensure robust consumer protection. By establishing comprehensive guidelines, the ECA aims to create an environment that fosters innovation and facilitates the growth of diverse telecommunications services.

1. 1. Purpose of the ToR

The purpose of this Terms of Reference (ToR) is to outline the framework for engaging a consulting firm to develop Class License Guidelines for telecommunications services in Ethiopia. This document aims to provide a clear understanding of the objectives, scope, and expectations for the consultancy assignment. It serves as a guiding framework for the consulting firm and the Ethiopian Communications Authority (ECA) to collaboratively work towards establishing effective class licensing regulations that support market growth and consumer interests.

1. Background

The Ethiopian telecommunications market is undergoing significant changes, characterized by the introduction of new technologies and the entry of multiple operators. Currently, the licensing framework is primarily focused on individual licenses, which has led to inefficiencies that hinder market entry and stifle innovation.

In response to these challenges, the ECA is committed to developing comprehensive Class License Guidelines that will clearly define the requirements, rights, and obligations associated with class licenses. This initiative aims to simplify the licensing process, improve regulatory compliance, and promote a competitive market that fosters investment and technological advancements.

Through the establishment of effective Class License Guidelines, the ECA seeks to empower service providers, enhance operational efficiencies, and ultimately contribute to the overall development of the telecommunications industry in the country.

1. Objectives

The primary objective of this consultancy is to develop comprehensive Class License Guidelines that will simplify and streamline the licensing process for telecommunications services in Ethiopia. These guidelines aim to enhance regulatory clarity, promote a competitive telecommunications environment, and ensure that the Ethiopian Communications Authority (ECA) can effectively manage and oversee the licensing of multiple operators offering similar services. The new framework will reduce administrative complexity while maintaining the necessary regulatory oversight to protect consumers and ensure high standards of service.

1. 1. Specific Objectives:
      1. Streamline the Licensing Process:

One of the key objectives is to create a simplified and efficient licensing process that reduces barriers to entry for new operators while ensuring compliance with regulatory standards. The class license framework will enable operators offering similar services to follow a uniform licensing process, minimizing the need for case-by-case evaluations, which can be time-consuming and complex.

1. 1. 1. Define Services Eligible for Class Licenses:
      2. Establish Regulatory Requirements and Obligations:

1. 1. 1. Promote Fair Competition:

1. 1. 1. Encourage Investment and Innovation:

1. 1. 1. Enhance Regulatory Oversight and Compliance:
          
      2. Facilitate Stakeholder Engagement:

1. 1. 1. Align with International Best Practices:

4. Scope of Work

The consulting firm will be responsible for completing the following tasks to ensure the successful development of comprehensive Class License Guidelines for telecommunications services in Ethiopia.

• 1.  Review of Existing Framework
• Conduct an in-depth analysis of the current telecommunications regulatory and licensing framework in Ethiopia.
• Identify the existing laws, regulations, and directives related to telecommunications licensing, especially focusing on class licenses.
• Review any gaps, challenges, and opportunities for improvement in the existing framework.
• Benchmark the current framework against international best practices for class licensing, particularly in countries with similar market characteristics.
  1.  Define Class License Services and Criteria

• Develop clear definitions for the types of telecommunications services that will fall under class licensing, distinguishing them from services requiring individual licenses.
• Establish criteria for which operators or services will qualify for a class license, ensuring consistency with regulatory goals such as market entry facilitation, competition promotion, and innovation encouragement.
• Propose a classification system for service types, ensuring each category aligns with national objectives for telecommunications development.
  1. Application and Issuance Process Development

• Design streamlined application procedures for obtaining a class license, focusing on transparency, simplicity, and efficiency.
• Develop a step-by-step guide for the issuance process, including application submission, review timelines, required documentation, and evaluation criteria.
• Propose digital/online solutions for application submissions to modernize and simplify the process for applicants.
• Outline clear pathways for the renewal, modification, or transfer of class licenses to ensure operational continuity and flexibility.
  1. Class License Fee Proposal

• Review Existing Fee Structures:
  • Analyze current regulatory fees in Ethiopia’s telecommunications sector and compare them with other countries to establish benchmarks.
  • Evaluate the effectiveness of existing fees in covering regulatory costs and promoting competition
• Propose Class License Fee Structure: Develop a fee structure for class licenses based on a thorough analysis of market conditions, operational costs, and international benchmarks.
• Justification of Fees: Provide a detailed rationale for the proposed fees, considering factors such as the expected impact on market entry, operator capacity, and regulatory sustainability.
  1.  Compliance, Reporting, and Monitoring Framework

• Define the regulatory obligations and compliance requirements for class license holders, ensuring they meet technical, financial, and operational standards.
• Develop a reporting framework for class licensees, including mandatory reporting periods, key performance indicators (KPIs), and service quality metrics.
• Propose a system for monitoring compliance, ensuring that class licensees adhere to national and international telecommunications standards.
• Create methods for periodic audits and inspections to ensure ongoing compliance without burdening the operators.
  1.  Enforcement Mechanisms and Dispute Resolution

• Propose a fair and transparent system for enforcing compliance, outlining specific sanctions, penalties, and corrective actions for license violations.
• Develop a dispute resolution mechanism for handling grievances from licensees, consumers, or other stakeholders, ensuring due process and fair outcomes.
• Establish protocols for the suspension, revocation, or modification of licenses in cases of non-compliance or regulatory breaches, including clear appeals procedures.
  1. Stakeholder Consultation and Engagement

• Conduct a series of consultations with key stakeholders, including telecommunications operators, regulatory authorities, consumer associations, and industry experts.
• Organize workshops, interviews, and focus group discussions to gather input on the draft guidelines and licensing criteria.
• Ensure stakeholder concerns are integrated into the guideline development process, promoting transparency, inclusiveness, and collaboration.
  1. Drafting of Guidelines

• Develop a comprehensive draft of the Class License Guidelines that details all aspects of the licensing process, including application, issuance, compliance, and enforcement.
• Ensure the draft guidelines reflect both international best practices and the unique needs of the Ethiopian telecommunications market.
• Create clear and precise documentation that is legally sound and accessible to both operators and regulatory staff.
  1. Validation Workshops

• Organize validation workshops with key stakeholders, including the Ethiopian Communications Authority (ECA), operators, and industry representatives.
• Present the draft guidelines for review, soliciting feedback and suggestions to refine the document.
• Incorporate feedback from the validation workshops into the final version of the Class License Guidelines.
  1. Finalization of Guidelines

• Submit the finalized version of the Class License Guidelines to the ECA after incorporating all stakeholder feedback and validation workshop results.
• Ensure that the final guidelines include clear implementation procedures, roles, and responsibilities for both licensees and the ECA.
• Provide supporting documents such as an implementation roadmap and a monitoring and evaluation framework.
  1. Training and Capacity Building for ECA

• Design and deliver training sessions for ECA staff on the new Class License Guidelines, covering all aspects of licensing, compliance, and enforcement.
• Provide training materials, manuals, and other supporting documents to help ECA personnel effectively manage the new framework.
• Develop a capacity-building plan to ensure ECA staff are well-prepared to implement and monitor the class licensing regime in the long term.

The detailed Terms of Reference (TOR) for the assignment can be found at the following website: www.dfp.gov.et or can be obtained at the address given below

Ministry of Innovation and Technology- EDFP now invites eligible Consulting firms to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the services. The shortlisting criteria are: core business and years in business, relevant experience, technical and managerial capability of the firm.

The attention of interested Consultants is drawn to paragraph 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers dated September 2023 (“Procurement Regulation”), setting forth the World Bank’s policy on conflict of interest. 

Consultants may associate with other firms to enhance their qualifications, but should indicate clearly whether the association is in the form of a joint venture and/or a sub-consultancy. In the case of a joint venture, all the partners in the joint venture shall be jointly and severally liable for the entire contract, if selected.

A Consultant will be selected in accordance with the QCBS (Quality and Cost Based Selection) method set out in the Procurement Regulations.

Interested and qualified consultants may obtain further information at the address below during office hours 08:30 to 12:00 & 14:30 to 17:00, Mondays to Thursdays; and 08:30 to 11:00 & 14:30 to 17:00 on Fridays.

Expressions of interest must be delivered in a written form to the address below (in person, or by mail, or by e-mail) on or before January  31th , 2025. 

Federal Democratic Republic of Ethiopia,

Ministry of Innovation and Technology (MInT)

ETHIOPIA DIGITAL FOUNDATIONS PROJECT

Attn: Focal Person, Project Implementation Unit (PIU)

Address: Arada Sub-city, Tracon Building 6th floor, in front of Tikur Anbesa Secondary School,

Ato Woldamlak Bitew , Tel No. +251-0911870477, Email address: bbww.2001@gmail.com

Addis Ababa, Ethiopia.