Mozambique - Telecommunications sector memorandum

a' l -. Report No. 9353-MOZ Republic of Mozambique Telecommunications Sector Memorandum July 22, 1991 Africa Technical Department, lndustra and Energy Southern Africa Department, Industry and Energy Operations Africa Region FOR OFFICIAL USE ONLY ., ~~~3 .) *lOacuimetcof the World Bank This document h'as a restricte,d distribution and may be used by recipients only in the performance of their official duties. Its contents may hiot otherwise be disclosed without World Bank authorization. .. 0m  ABBREVIATIONS AND ACRONYMS CCT Coordinating Commission for Telecommunications cellular Mobile Radio System Large area coverage mobile radio system divided into cells, providing constant access to a traveling mobile subscriber CPRM Compania Portuguese Radio Marconi CTT PTT in Portuguese DEL Direct Exchange Line = subscriber main connected line DOMSAT Domestic Satellite System Exchange fill Ratio of DELs to total installed exchange capacity INTELSAT International Telecom Satellite Organization ISD International Subscriber Dialing ITU International Telecommunication Union Microwave Line of sight radio system working above 1,000 MHz MTC Ministry of Transportation and Communications OMP operational Management Program PABX Private Automatic Branch Exchange STD Subscriber Trunk Dialing TDM Empresa das Telecomunicag6es de Mogambique TDP Telecommunication Development Plan Value added services Services, which are not )nly transported on telecommunications n-_works (their own or leased ones from the service provider), but are also processed by the networks themselves to add distinct value to the basic messages.  CURRENCY EOUIVALENTS,. January 1991 Currency Unit = Metical (Mt) US$1 = Mt 1,070 Mt 1.0 million = US$935 GOVERNMENT OF MOZAMBIOUE FISCAL YEAR January 1 - December 31 TELECOMUNICACOES DE MOCAMBIOUE FISCAL YEAR January I - December 31 WEIGHTS AND MEASURES Metric This study of the Mozambique telecommunications sector is based on the findings of a mission that visited Mozambique in August 1990 and March 1991. The mission consisted of J. Boutan and G. Buttex. The assistance provided by Telecomunicasoes de Mogambique and the Ministry of Transport and Communications for the preparation of this report, particularly in the form of the Mozambique Telecommunications Operational Management Plan (November 1990), and comments and suggestions provided by several reviewers* are gratefully acknowledged. * R. Bonnel, J. Cowie, M. Scoffier.  FOR OFFICIAL USE ONLY 218L1CO?.MUNCATION's SECTO mEmORANDUM Table of contents Page NO Executive Summary ........ . ......... ............. . i-iv I. THE TELECOMMUNICATIONS SECTOR ........ ........................ 1 A. Background and Organization ................ O.. 1 Background ................................................................ 1 Sector Structure and Organization ........................... 2 TDM'o Profile ..................................... ....... ................... 2 TDM'a Status ................................................................. 3 TDM'S Organization . ............. *........................ . . 3 TDM's Management ......... . ..... .. .. .......................... . 3 Staff and Training ..... ... ........... .... . ................... . 4 B. Past and Present Develop ment ............ 4 Status of Performance .... .................... ........ ....... 4 Sector Finance ........................ ............................. 6 Tariffs ..................................................... 7 Accounting and Budgeting .... ... . .. .................... . 7 Auditing ................... ........................................ ..... 7 Billing and Collection . .............. ... . . . .............. ..... 7 Purchases and Stores ...... .................................... 8 C. Development Objectives .. . ........... 8 D. Corrective Actions to be Taken ............... ................ 8 II. SECTOR MANAGEMENT ................ 9 A. Issues .................................................... 9 B. Solutions .............................................. 0 ............. 0.... 1O MTC's and TDM's Medium Term Commitments ...... .... 12 TDM's Corporate Status .......... ................... .. ......... 13 III. SECTOR POLICIES ............ .................................. 14 A. Issues ............................................................ *....... 14 B. Solutions .................. ................................................ 14 Tariff Policy .................. ........................* ...... 14 Monopoly Versus Competition ................. ............... 15 Equipment on Customers' Premises ...... .................... 16 Cellular Mobile Radio ...... , ................................ . 16 Value-added Services ... ..................................... 16 Private Radio Networks ....... . ............ . . . ................ . 16 Private Participation ................ ... . . . . . ...................... . 16 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (cont'd) IV. TDM'