CoE/ARB WorkshopOn

Development ICT Competition Policies Rabat – Morocco, 9 – 11 May 2012

Competition and consumer

Agenda

I- Competition versus consumer protectionII- Consumer protection policyIII Consumer protection mechanisms :

▪ Regulation enforcement ▪ Universal service, number portability and quality of service

▪ Information and transparency▪ Good governance ▪ Consumer empowerment▪ Investigating complaints

VII- Moroccan experience

Competition versus consumer protection

In theory the introdution of competition is designed to provide a good service with lower price and a high level of quality of service, but competition could lead to exclusion of consumers if they are not protected from unfair terms and practices.→ a need for consumer protection policy : enhancing consumer welfare

A consumer protection policy

A clair framework and a certain number of mechanisms to further the interest of users and customers and ensure consumer protection.

• It means those actions and mechanisms taken by regulaors or governments to acheive consumer welfare and protect consumers from unfair practices.

• It includes the general framework of consumer protection but also a specific regulation from regulators of telecoms industry

Consumer protection mechanisms : Regulation enforcement

Is self-regulation enough ?• Approaches of consumer protection : a general frame work but also a

specific legal framework or codes of conducts ;• Set up of codes of conducts and guidelines to regulate the relationships

between service providers and consumers , Obligations in licenses.

Mechanisms to protect consumerEmpowerment of consumers

• Transparent information to facilitate making decision an informed choices (contracts, general conditions, etc….) ;

• An easy, acceptable cost and shortest possible time to complete number portability (a clair number portability process) ;

• Exchange of information using a direct dialogue : (forums, workshops, associations, etc….) to exercice their rights;

• Transparency on tariffs ( ex : ofcom runs a scheme that invites price comparison websites to have their systems approved by ofcom’s auditor to ensure that consumers have confidence that the tariff infromation the publish are reliable, accurate and accessible) ;

• Enable consumer to make effective decision and to defend their rights.

Mechanisms to protect consumerGood governance

• Enhancing interaction with consumers to understand problems ;• Concertation with consumers in decision making within associations,

organisations and consumer groups ;• Right to participate to consultations to give their point of view

concerning consumer’s issues.Examples : Consumer Forum Communications in UK ,

France.

Mechanisms to protect consumerInformation and transparency

• Tariffs transparency : Price comparison ; • Clair infromation (contracts, prices, Billing,etc….) ;• Access to comparable information on services and Qos ;• Mis leading advertising : advertisements must be legal, decent, honest

and truthful in the way providers sell their products and services.

Mechanisms to protect consumerAccess to the universal service

• A large definition and content of universal service; • Implementing universal service obligation for disabled users ;• Access to telecommuniactions in rural areas ( 9200 lacal areas in

Morocco 2009-2011).

Mechanisms to protect consumerQuality of service

• QoS measurements on all services (fixed internet wireless lines);• Market survey on telecoms users satisfaction ( it includes line quality,

geographical coverage of mobile networks, time taken to resolve problems and repair faults, etc…);

Mechanisms to protect consumerDealing with and handling complaints

• A procedure to handle consumer complaints (hot number, complaints service)• Mediation between consumer and operators (french experience with the

Mediateur and Uk experience with Alternative Dispute Resolution (ADR) schemes : (CISAS) the Communications and Internet Services Adjudication Scheme and Ombudsman services who are approved by Ofcom : customers of communications companies have the right to take certain complaints to these services ombudsman if the company fails to resolve the problem.

• A chart in which providers, regulators and users are adhering ;• Araise awarness of consumers ;• A chart in which providers, regulators and users are adhering ;• Araise awarness of consumers.

The Moroccan experience

Consumer protection policy in Morocco

• In addition to those mechanisms listed herein before ;• Consumers' right to referral to the ANRT for anticompetitive practices ;• Individualized monitoring of consumer complaints plus consumer

barometer ;• Information of the public through its website on telecommunications

regulation and decisions taken by the ANRT ;• Auditing of the billing system of operators in case of problems with

invoices and respond to consumer complaints (2008 and 2010) ;• Regulation of advertising ;• Revising contracts.

Barometer of consumers : Figures 2009 and 2010

• This barometer is to achieve the following objectives : Make a finding of actual complaints and measures the use

of ANRT for solving problems faced by consumers ; Analyze consumer complaints and establish a topology of

complaints following specific criteria ; Propose areas of improvement for a better guarantee of

the interests of consumers of telecommunications services. Regulation on the advertising of telecommunications

services

Analysis of Consumer Complaints

by source of complaints

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By subject of complaints

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By reasons for complaints

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Regulation on the advertising of telecommunications services

• Decision taken by on the ANRT on 2007 related to conditions of advertising of telecommunications services :

• This decision is intended to :- Preventive measure to avoid litigation;- Harmonization of the method of advertising between

operators and suppliers in terms of the content of ads ;- Establishing a clear baseline for both ERPT the FSVA,

consumers and ANRT in case of referral for advertising.

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• Transparency ;• clarify information on the essential characteristics of the offer, which

may vary depending on the product or service :- exact description of the proposed offer - price of supply with all taxes (VAT)- the minimum length of commitment related to the offer ;- access conditions to the offer including customer equipment necessary to access

• Loyalty : ensure the loyalty of the advertisement ;

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• the accuracy of information relating to the offer;• the absence of any mention which could mislead the consumer into error;• the exact identification of the origin of the advertisement when it is

transmitted via SMS or electronically;• legibility should be ensured at all components of the advertisement

clearly and explicitly display the main message of the advertising that may be the price Taxes or other essential feature of the offer ;

• The operators and VAS providers are required to inform the public about pricess and generaland specific conditions to their offers.

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The upgrade of comercial contracts for telecommunications services

• Following the review of contracts offered by operators to subscribers customers and in order to preserve fair competition and prevent anti-competitive practices such as abusive customer loyalty, ANRT noted some unfair and notice a significant imbalance between operators and consumers.

• Revising contracts.

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Thank you

Abdelali MADANI

Head of Analysis and Dispute inquiry

madani@anrt.ma