Mid-term evaluation process on the USF Strategy, targets, and its pilot projects
According to global studies conducted by ITU and GSMA on USF, not all USFs have been
successful in distributing funds and fulfilling the purposes of the Fund, for various reasons.
One lesson learned from existing USFs is that due to rapid changes in technology in the ICT
sector, an early and regular review process is required to allow Strategy to be modified to
meet emerging needs and opportunities. The intention of ongoing monitoring of projects
(Section 6.2) is therefore welcome. Furthermore, a mid-term review of the five year Strategy
is therefore advisable, particularly as this is Myanmar’s first such Strategy, including a review
of the whether the definition and concept of the “Universal Access” and “basic communication
services” is necessary.
Review of the 2% levy
Currently, it is planned that 2% of the revenue will be collected from the licensed operators for
the Fund. Some or all of this levy will be passed to consumers in the form of increased cost
of services and therefore reducing Affordability which is one of the goal of the USF.
Based on experience in other countries, MCRB is concerned that if the levy accumulates
without being effectively spent, this will represent a pointless charge on customers, and also
risks political pressure to spend the funds being spent for purposes other than universal
service. MCRB therefore suggests the 2% levy should be reviewed after three years of
collection to determine whether it is appropriate, or whether it is impacting Affordability for
consumers.
In particular, it should be noted that the contractual requirement for geographic and/or
population coverage for operators, which is higher than in many other countries, has already
ensured that the market has achieved over 90% population coverage without a requirement
for a USF.
Transparency
MCRB welcomes the intention to publish, ��as a minimum, annual reports that provide details
of funds collected, funds disbursed, to which operator or service provider projects are
awarded, how much funds they have received, key terms and conditions of their service
agreement, status and achievements of project implementation and service provision,
successes and problems encountered’.
MCRB believes that this annual report should be an explicit requirement included in any Law,
Notification or Regulation establishing the Fund, and that the Annual Report should be widely
available, including on the internet, and deposited with Parliament.
MCRB, 12 February 2018
www.mcrb.org.mm