The ongoing liberalization of Jordan’s ICT sector is set to drive the growth of Jordan’s telecommunications market to a level in excess of a billion dollars annually, according to Jordan’s Telecommunications Regulator. Based on the steps so far taken to open the Jordanian market to fair competition, the projection takes into account the newly competitive and dynamic marketplace that Jordan represents for investors today and foresees the attraction of new investments and new, innovative services to the Kingdom.
“Market liberalization has already proven to be a stimulus to demand for telecommunications services in the Kingdom. Established licensees have prepared for competition by offering improved services and lower prices,” said Muna Nijem, CEO of Telecommunications Regulatory Commission. “However, there are about to be further developments in the next few weeks, as the TRC initiates processes that will set the telecommunications sector on a course that will see it double in size over the next ten years, with revenues ultimately likely to exceed US$1 billion per year.”
Benefits seen by consumers so far will soon be supplemented by greater choice of providers and service options, enhanced customer service and further overall reduction in prices.
Following the ending of the monopoly of Jordan Telecom in the fixed sub-sector of the market on 31st December 2004, the TRC has received a significant number of applications for licenses under the TRC’s new Integrated Regime of Licensing and Regulation. This Integrated Regime is a key mechanism for the establishment of the fair competitive environment that will yield the benefits that have been described. TRC has initiated processes for the transitioning of existing licensees to the Integrated Regime, in accordance with due process as specified under the Telecommunication Law.
“It is natural that existing licensees would have concerns about the future, having enjoyed privileges and market power under the old regime. But the initiatives now to be taken in relation to the transition to the Integrated Regime are designed to allay fears that TRC, in fulfilling its obligations to create a fair and competitive environment, which includes the removal of anomalies and distortions from the market, will act in anything other than a fully transparent and consultative manner and in accordance with the Telecommunications Law,” added Nijem.
Once existing Licensees are brought into the Integrated Regime and a level competitive playing field is established, the ICT sector will accelerate the rate of growth that has already proved impressive under the regulatory supervision of the TRC. In 1995 telecommunications accounted for 4% of the Jordanian GDP, by 2004 this had grown to around 6%, and there is more to come.
With a clear view of its mission and how it intends to proceed, the TRC will continue to issue further updates to the Industry on both its overall intentions moving forward, and the prevailing status of any particular initiative within the continuing evolution to the Integrated Licensing Regime.
“My personal commitment to the liberalization process and the securing of benefits for Jordan is absolute and my door is always open to those who wish to join the TRC in its mission,” stressed Nijem.
Moving forward, the TRC remains committed to assuring citizens that they will continue to reap the benefits of the liberalization process, and also to making certain that businesses and entrepreneurs can effectively capitalize on the economic benefits and prospects afforded by the introduction of competition.
“This announcement is made in response to the high level of interest that has been shown since the TRC announced its intention to introduce competition to the telecommunications fixed sub-sector at the end of last year. There has been some comment that little has been heard from the TRC in the last three months. Silence should not be interpreted as indicating inactivity. The work carried out by the TRC in that period has been crucial to the future stability and effectiveness of the sector. Achievements have been considerable,” said Nijem.
The Commission is committed to transparency and to the provision of new opportunities in the Kingdom to as wide a base of investors as possible, in order to create a vibrant and fast-growing market. Accordingly, the TRC will continue to make announcements, publish relevant material and discuss the opportunities with potential market entrants, whilst dealing with any concerns of existing Licensees as they transition to the Integrated Regime.
