The Liberia Telecommunications Authority (LTA) and the GSM service providers, cell phones, internet and other communication services providers have been going at each other for the past two months over issues that were brought to the public through sound bites, mostly relayed through news articles. We spoke to both Mr. Albert Bropleh, Chairman of the LTA and some of the service providers as well as to other members of the LTA Board of commissioners. Because the comments we received from others were mostly “off-the record” at the speakers request, we have decided to publish in its integrality only our interview with Mr. Bropleh who spoke to us on the record. We asked the questions that we thought addressed the major areas of contention, with the hope that others interested parties would also come up and bring to the public their side of the story.

Since this interview conducted in Monrovia on May 19, 2008, things have somehow progressed, thanks largely to the intervention of Minister of State Morris Saytumah from directives from the President. In a letter to the President - copy of which was given to us - Mr. Saytumah writes that “it is our conclusion that thus far the LTA has acted within its authority and, moreover, has acted reasonably to move forward the standardization process.”

In his communication to the President, Mr. Saytumah writes further that “LTA maintains that it has the power and obligation to submit existing service providers to a standardization process and has attempted to do this through an open and flexible process, as evidence by the LTA’s revisions to the forms. This appears to be the case based on the information presented to me. In light of this information, the service providers’ continued objection and refusal to adhere to the standardization process are baseless. The LTA appears to have made reasonable accommodations to engage the service providers in the standardization process, thus any ongoing refusal is unprofessional and, further, suggests that the service providers are not acting in good faith.”

The service providers we spoke to have accused the Commission of heavy-handedness and arbitrariness and argued that the Commission failed to rationalize the new exorbitant fees it intends to impose on them. They said this could lead to an escalation in calling fees for consumers. They said that one could not compare the markets in the other countries in the sub region to Liberia because every market has its own dynamics. They also added that the projections made by the Commission regarding the possible earnings of the service providers in the years ahead amount to speculation and should not serve as a basis for imposing new fees. According to them, they already pay taxes and should not be subjected to new taxations from LTA, whom they support financially. Finally, they said they possess duly-signed licenses and see no legal basis to apply for new ones.

The coming into the market of Liberia Telecom which will introduce public telephony through wireless connectivity and the possibility of new service providers seem to pose a threat to the current system controlled by four companies. The Sirleaf government has renegotiated every major contract since coming to power, including with Firestone, LAC and Mittal Steel. Sooner or later, the LTA and the service providers will have to reach an understanding. But to do efficiently, they must consult more by using credible and impartial brokers and stay away from personal attacks, disguised threats and blackmail. As it happened with Firestone, Mittal Steel, LAC and the forestry industry, they must work quietly and away from the fanfare in the streets. Solicitor General Tiawan Gongloe said, when asked about the current crisis, that “a contract is always re-negotiable.”

Here is the integrality of the interview of Mr. Albert Bropleh, Chairman of the LTA. The interview was conducted by Dr. Abdoulaye W. Dukulé.

Question: The public has recently witnessed a back-and-forth between the LTA and the service providers. Can you give us an idea of what prompted the disagreements?

Sure. The LTA is under mandate from the Telecommunications Act of 2007 (the Act) - the law that created the Liberia Telecommunications Authority (LTA) - to standardize the telecom sector. The service providers have gotten accustomed to operating in an unregulated environment, and as such, do not want to come under regulations. The back-and-forth you refer to is the direct result of the service providers’ refusal to come under regulations; they misconstrued the intent and the process set up for standardization by the LTA as they misrepresented that the LTA was trying to revoke what they termed as their legitimate license. They are bent on their mindset and resisting this with every fiber of their corporate beings.

Question: What are the standards set by the LTA for newcomers to enter the market?

Last year October the LTA established and published the licensing terms and guidelines under which existing telecom firms as well as new entrants will be licensed. The deciding factors for new entrants can be put into three (3) categories: a) Plan - the engineering, technology deployment, network implementation, commercial, and financial roadmap - the applicant envisages for the country; b) Capacity - the applicant’s ability to perform, can applicant deliver on promises? What relevant experience does applicant bring to the table? What is the performance track record of applicant in the region or elsewhere with similar environment? Where has applicant demonstrated the ability that uniquely qualifies it for Liberia? and (c) Finance - does applicant have the financial wherewith to be a player in this market?

Question: How does the LTA reach decision how to set fees for providers?

First, the Law gives the LTA the right to do so. Secondly, within the Law the LTA Board of Commissioners’ decision-making process is rather deliberative and pensive. An idea originating from a Commissioner is usually socialized with or circulated to other Commissioners and placed on the agenda for discussion at a Board Meeting. Fees are rationalized and compared with international standards. The fee structure as well as Board level issues are discussed and argued until a consensus is reached or a vote is taken. This is the only way the Board takes decision.

Question: The public does not understand what standardization is. What are the implications on the cost of making calls?

There should be no increase in the cost of making a call as the result of the new fees regime the LTA is implementing in light of the new GoL policy.

Standardization as required by the Act is to bring into conformity and uniformity all licenses that were held by existing GSM companies as well as new entrants. As it is today, no two (2) GSM companies have the same license; LiberCell’s license is different from that of Lonestar’s, Lonestar’s is different from Cellcom’s, Cellcom’s is different from Comium, etc., etc. In the process of standardizing their licenses, the LTA has no choice but to take away whatever license instrument they possess, and replace them with a uniformed standardized license all of which will look the same with identical terms and conditions.

Question: How do you compare fees in Liberia and in other Mano River Countries?

There is absolutely no dispute that the fees assessed on the GSM companies in Liberia are ridiculously the lowest, and dropping off the end of the fees chart. Guinea charged Cellcom US $36M, they have paid half of that; Sierra Leone charges US $500K per year in addition to 4% of gross turnover (Sierra Leone will be changing over to the fixed fee per term next year); Comium paid US $25M in Ivory Coast to obtain a GSM license; in Liberia, the GSM firms pay $50K per annum, but they have not paid for at least two (2) years now based on the information I was given upon taking office. By comparison fees assessed on GSM firms, which seem to be the only means of communication through out Liberia, is yet by far lower than that of other countries that have land lines in addition to their mobile (GSM) services.

Question: Rumors have it that you promised to provide US $5M to the government budget … where were you planning to get that money from?

My administration inherited a budget line item of US $5.8M as the LTA’s contribution to the 2007/2008 Fiscal Budget. The LTA expect to get the funds from license fees the GSM companies are slated to pay into government coffers. We believe this amount can be realized once the service providers come into compliance. We anticipate generating additional revenues for the GoL for its 2008/2009 Fiscal Budget from license fees the LTA will be assessing all service providers participating in the telecom sector in Liberia.

Question: The President has appointed Saytumah to work between you and the LTA. Is that good or bad for you as the regulator? I cannot imagine the FAA or FDA in a conflict situation with the industries they regulate.

You mean between the LTA and the service providers? If so, I do not see the President’s intervention as a bad thing. I asked the President to get involved, so it should not be seen as though she’s melding into our business. Well, while in the United States, I saw the Executive branch of the US Government immersed itself into the affairs of the regulator when issues of national security were at stake. Recent examples of these kinds of executive interventions are the Deutsche Telecom’s proposed acquisition of Sprint, my former employer, the awarding of the management of US seaports to the Dubai Port World and the Sino-American oil deal. In each of these cases, the foreign entity was slated to acquire more than 50% of the US firm which is a no-no policy for any security sensitive US firm.

Mobile telephony is the only means by which the public communicates, so a situation that is a deadlock becomes a high security issue for the country, and as such, it will be irresponsible of me if I do not adequately inform my boss, who is also President of the nation, of the serious implications the standoff will have on the nation and its economy.

Question: What is the future of telecommunications in the Mano River Union?

I don’t know. We have not had the opportunity to engage our neighbors since taking office 8 months ago. We will, but not before we take care of some house-keeping issues. But what I do know is that Liberia is making plans for major infrastructure developments in the telecom sector. At the end of our term, we expect to have initiated a major infrastructure deployment project that will deliver distance learning, telemedicine and digital library to homes and institutions all on the same platform. My office is working on a national fiber backbone plan for the nation as well as looking at connecting to the submarine cable (SAT-3) that strings along our coast from Portugal to South Africa. This will significantly reduce the cost of telecommunications whether the wholesale or retail level.

Question: Do you expect more people to come into the market and how would that affect the fees you are now requesting others to pay?

We expect more players in every segment of the market for which the LTA licenses. This should have no impact on fixed fees the LTA charges; however, it may affect new entrants whose service area(s) of interest may be up for auction. In this case the LTA can only set the lower limit of the fees; the market will determine the price and the highest bidder determines the ceiling.

Thank you for the opportunity.

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