Tariff & Regul Principles

8/2/2019 Tariff & Regul Principles

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INFORMATION & COMMUNICATIONTECHNOLOGY INSTITUTE (ICTI)

Tariffication & Regulation Principles

Verily, never will Allah (j) change the condition of

people unless they change it themselves (013,011)

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((013011

BUS 201


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Objectives of the Course / Subject

At the end of this course, students will learn:The importance of Tariffication & Regulation Principles

The Vision and Objectives of the MoCIT

Basic Economic Principles of Offer & Demand

Analysis of Demand, Analysis of Income

Analysis of the Economic Factors affecting Liber

International Accounts, International Tariffs

Billing Systems and Customer Care

Effective Tariffication Policy, Impact on Markets

Licensing process, Centralized Systems

Other economic Factors influencing tariffs & more


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Information can be as important as food, water, shelter, ormedicine when responding to a catastrophic event. Without accurate

and timely information the ability of responders to effectively

distribute critical supplies, equipment, and resources is seriously

impaired (unfit).The Telecommunication is the first link in the information chain.

It has the ability to disseminate warnings, call for help, describe the

level of damage, discuss needs, and deliver information requires the

establishment of two-way communications.

Therefore, this requirement places Telecommunications at the top of

the disaster management technology support list.

Information & Communication Technology


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The tsunami relief effort included the deployment of well establishedalong with new telecommunication technologies. Hand-held satellite

phones provided reliable communications for field personnel.

Computers were originally used by scientists for calculating

numbers, and have gradually become useful in offices and industries.The Internet is a global collection of many types of computers and

computer networks that are linked together. It is increasingly

becoming the solution to many information, problems, information

exchange, and marketing.

Tele-fax systems permit the transaction of images (photos, printed

images, maps, drawings) and their reproduction on paper at a

remote receiver. Any document, whether it is handwritten, contains

pictures, diagrams, graphs, charts or typed text can be transmitted.



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Electronic mail (e-mail) is the exchange of text messages and

computer files transmitted via communications networks such as the

Internet , And not only written data, but all sorts of information in

the form of video, audio, or photographs, can be sent via e-mail,

describes e-mail as an increasing popular method of communication,especially in the workplace.

Mobile phoneswere once the tool of rich and busy executives who

could afford the luxury. Mobile phones are now the ICT that is

reshaping and revolutionizing the communications globally. Itsimpact on the economic activities of nations, businesses, and small

entrepreneurs is phenomenal. It is bringing about a profound

restructuring of economic, political, and cultural relations among

states.



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Vision:To enable Afghanistan to benefit further from Informationand Communication Technologies by becoming part of the global

information society while preservingAfghanistans cultural heritage.

Afghanistan has a very small and nascent ICT sector. It needs to

adopt innovative strategies to increase the ICT skills in the private

sector and leverage opportunities by the Government, private sector

and donor agencies.

Afghanistan will use ICTs to improve Government and social

services effectively and foster the rebuilding process, increase

employment, create a vibrant private sector, reduce poverty and

support underprivileged groups.

Afghan.. Tel Comm Law (67 Article, Afghanistan Constitution Article 10, 37),

Telecomm & Internet Policy of Afghanistan.

Ministry of Comms & IT: Vision


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MCIT - vision for the future is focusing on the following scope ofachievements:

Wide coverage of services in all cities, towns and 5000 villages

Improved quality, lower tariffs (halved) in next 4 years competitive

environment with 5 telecom companies providing servicesNational optical fiber project backbone completed providing high

quality low cost ground based national and international

connectivity in next 3 years

Cumulative investments in telecom of over 1.5 billion in next 4 years

5 million phone users in next 4 years (20% of population)

50,000 jobs will be created in the next 4 years

Government revenues from telecom in the next 10 years USD 2 bill

MCIT: Vision for the Future


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ICTI is the educational branch of the Ministry of Telecommunicationand it is responsible for the development of professional human

resources in the areas of ICT. It offers a range of in-service training

courses up to Bachelor Degree in the area of Communications, IT,

Electronics and Science to the national and international students.Telecommunications has become an increasingly important area of

attention by policymakers as new services such as cellular telephone

and Internet services become increasingly important to businesses and

consumers. ICTs describes various technologies that makeinformation and communication services available to a wide range of

users. The term is used broadly to address a range of established and

relatively new technologies, among which are the telephone-

infrastructure, computers, internet and broadcast media.

Information & CommunicationTechnology Institute (ICTI)


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Many people think that economics is about money. Well, to someextent this is true. Economic has a lot to do with money, but lets say

economic is more than just the study of money.

Actually Economics is concerned with Production & Consumption.

The production of goods and services: How much the economyproduces; what particular combination of goods and services; how

much each firm produces and many more.

The consumption of goods and services: how much the population as a

whole spends (and how much it saves); what the pattern ofconsumption is in the economy; how much people buy of particular

items; how peoples consumption is affected by prices, advertising ,

fashion and other factors.

Economic Terms and Concepts


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Scarcity is the excess of human wants over what can actually be

produced to fulfill these wants. Human wants are virtually unlimited,

whereas the resources available to satisfy these wants are limited.

Factors of Productions are the transformation of inputs into the

goods and services: labor (all forms of human inputs, both physical and

mental), land and raw material (natural land and mineral deposits in the

ground), and capital (all inputs into production that have themselves

been produced; factories, machines and tools).

Since things are scarce, choices have to be made.

What goods and services are going to be produced and in what quantities.

Howare things going to be produced, there are more ways of producing

goods.

For whom are things going to be produced?



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Macroeconomicsis concerned with the economy as a whole. It is thus

concerned with aggregate demand and aggregate supply. By aggregate

demand we mean the total amount of spending in the economy, whether

by consumers, by customers outside the country for our exports, by the

government, or by firms when they buy capital equipment or stock up on

raw materials. It studies the determination of national output and its

growth over time.

Microeconomics is concerned with the individual parts of the

economy. It is concerned with the demand and supply of particular goods

and services and resources: it studies the interrelationships b/w these

units in determining the pattern of production and distribution of goods

and services: households, firms, industries, clothes and haircuts,

electricians, secretaries, computers and oil.



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Since things are scarce, societies are concerned that their resources

should be used as fully as possible, and that over time their national

output should grow. Macroeconomics studies the determination of

national output and its growth over time. It also studies the problems of

recession, unemployment, inflation, the balance of international

payments and cyclical instability.

Aggregate Demandis the total level of spending in the economy.

Aggregate Supplyis the total amount of output in the economy.

Inflation refers to a general rise in the level of prices throughout the

economy. If aggregate demand rises substantially, firms are likely to

respond by raising their prices. After all, if demand is high they can

probably still sell as much as before even the higher prices, and thus

make more profits.



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Current Account (Balance of Payments) is the exports of goods and

services minus imports of goods and services. If exports exceed imports,

there is a current account surplus (a positive figure). If imports exceed

exports, there is a current account deficit (a negative figure).

Recession is a period where national output falls for a few months or

more. Output in the economy declines, in other words growth becomes

negative. Recession is associated with a low level of consumer spending.

Unemployment is the number of people who are actively looking for

works but are currently without a job. (note that there is much debate as

to who should officially be counted as unemployed).

Demand side policy and supply side policy.



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We said that economics is concerned with consumption & production

which is equal to Demand & Supply.

Demand is related to wants. If goods and services were free, people

would simply demand whatever they wanted. Such wants are virtually

boundless.

Supply is related to resources such as goods and services. It is limited.

The amount firms can supply depends on the resources and technology

available. Free economy = individual decision, no gov involvement.

Relationship between price and demand(consumption): when the

price of a good rises, the quantity demanded will fall. This relationship is

known as the law of demand. Quantity demanded refer to the amount

consumers are willing and able to purchase at a given price over a given

time period (eg. A week, moth or a year).

Demand & Supply


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The demand schedule can be represented graphically as a demand curve.

Demand & Supply


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Table 1.1 The demand for potatoes (monthly)

Demand & Supply

Demand Point Price / Kg ABC Demand ADE Demand Market Demand

A 4 28 16 700

B 8 15 11 500

C 12 5 9 350

D 16 1 7 200

E 20 0 6 100


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Table 1.1 The Supply for potatoes (monthly)

Demand & Supply

Demand Point Price / Kg ADE Demand Market Demand

a 4 50 100

b 8 70 200

c 12 100 350

d 16 120 530

e 20 130 700

100 200 300 400 500 600 700

20

16

12

8

4


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A good place to begin the supply and demand analysis is to think as

broadly as possible about the kinds of information you will need for

your planning efforts. Actually, before thinking about the future, it is

important to know where your are starting from, think about your

current workforce.

The purpose of doing the Competency Assessment is to determine

whether your current workforce includes the kind of employees

needed both now and in the future.

We define competencies as: the knowledge, skills, behaviors,

personal attributes, or other characteristics that are associated with

or predictive of superior job performance.

Demand & Supply Analysis


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Does your Supply reallySupply your Need?

Supply Analysis is how you define your supply. Is it the number of

bodies, or is it whats in the hearts, hands and minds of those

bodies?

If you have 100 Juvenile Probation Officers, but only 80 of them havethe competencies required to do the job effectively, is your supply of

JPOs 80 or 100? Actually, its both. And that goes to the heart of why

your Supply Analysis has to look at both the numbers and the

competencies of your workforce. You must look beyond the numbersand assess the kind of competencies possessed by your current

workforce.

The Supply Analysis identifies your agencys available staffing

resources both now and in the future.

Supply Analysis


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Rules and regulations that human beings need to follow and align

their practices with those codes of conducts (jurisdictions and

charters). They provide frameworks or guidelines to organizations

that offer a degree of flexibility and allow them to be transferable

across organization types. In other words, to accept such a practiceimplies a degree of control and commitment against which the

complying organization will be measured or evaluated.

Not all issues are solved solely by government action. Before decidingwhether to intervene in relation to a specific problem, it makes good

sense to look at the situation from a broad perspective.

Regulatory Practices


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Best practice in the sphere of government intervention suggests that

before any intervention is considered, there should be:

clear evidence that a problem exists, taking into account the views of

those who are affected; an analysis of the likely benefits and costs of

action and non-action; and consideration of alternative approaches for addressing the problem.

Experience has shown that "today's problem" may be a result of

"yesterdays intervention." In this case, re-evaluating the need for

intervention may be justified. Reducing involvement, rather thanincreasing it, may be a better practice.



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Lammiman (1997) suggest that such practices are aimed at

facilitating the effectiveness of the organisation through lower costs,

increased efficiency and promotion of growth and innovation.


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Benefits of the regulation practices. It is obvious that we cant live

without law and regulation, meanwhile we need to follow the

regulations which have been set by the gov or by the organization.


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Economic Factors affecting Liberalization of Tel

The information and communication technology (ICT) sectors are

technologically converging rapidly for past few years. Majordeterminants of this process are technological innovations coupledwith the liberalization of the telecommunications market. Both ofthese factors lead to a further process of mergers and alliances byfirms in order to attain advantageous positions in the newlyemerging markets or to retain existing ones. Since technologyconvergence is a wholly new phenomenon seen from an economicperspective, high risk and uncertainties are invariably associatedwith it.Technology convergence can be defined as a process by which thetelecommunications, broadcasting, information technologies andentertainment sectors converge towards platform independenceresulting in a unified market structure. This effectively means that aterminal (e.g. a television, computer, mobile phone or other suchdevices) is able to access data independent of type or size, e.g. anytextual or multimedia content. The medium of transmission, thus,becomes irrelevant.


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Tariff & Regul Principles