1. Introduction L'Association des régulateurs des communications d'Afrique australe (CRASA) est une agence spécialisée de la Communauté de développement de l'Afrique australe (SADC). Elle a été créée en 1997 dans le cadre du Protocole de la SADC sur

# Terms of Reference for the CRASA Study on Economic Regulation of Satellite Communications ## 1. Introduction The Communications Regulators Association of Southern Africa (CRASA) is a specialized agency of the Southern African Development Community (SADC) established in 1997 under the SADC Protocol on Transport, Communications, and Meteorology (TCM). CRASA focuses on harmonizing regulatory frameworks for telecommunications, broadcasting, and postal services across the SADC region. Currently, CRASA has fourteen (14) member states: South Africa, Angola, Botswana, Comoros, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Eswatini, Tanzania, Zambia, and Zimbabwe. CRASA aims to conduct a study on the economic regulation of satellite communications for SADC. ## 2. Background Technological advancements in satellite communications over the last decade have been remarkable, with significant reductions in the costs of building, launching, and maintaining satellites. Consequently, constellations of satellites have proliferated, especially in Low Earth Orbit (LEO). Non-Geostationary Satellite Systems (NGSO) provide numerous services owing to their advantageous orbital positions relative to Earth, global coverage, and high-speed systems. NGSO systems present compelling added value to high-speed users in both upstream and downstream markets. SADC member states have responded to the potential of NGSO systems to bridge the digital divide by granting licenses to operators like Starlink, OneWeb, and AST Mobile. The licensing of satellite systems was a strategic decision aimed at rapidly leveraging the benefits of ICT and accelerating the achievement of national development objectives. However, commercial non-geostationary operators are not subject to certain licensing obligations, such as annual fees for spectrum access and use, which are currently imposed on Mobile Network Operators (MNOs) and Internet Service Providers (ISPs). This regulatory disparity may create unequal competitive conditions, potentially giving an advantage to non-geostationary operators over MNOs and ISPs, in terms of cost structure and market positioning. As a result, the regulatory framework in the region must evolve according to the technological dynamics of the sector. It must now be adapted to account for emerging technologies, promote fair competition, and ensure the accessibility and affordability of telecommunications services for all. Little is known about the economic regulation aspects of satellite infrastructures concerning the long-term sustainability of the telecommunications ecosystem, as well as the cost structure and model of NGSO systems. There is a notable increase in the number of new subscribers transitioning from fixed fiber and mobile broadband to satellite services for high-speed connections. With the advent of direct-to-device (D2D) retail services offered through satellite systems, competitive pressure on existing terrestrial infrastructures is becoming increasingly significant. Given the lack of information on the cost structures of NGSO systems, competitive assessments such as loss-leading offers or incentive captures are challenging to discern. CRASA, through its Economic Regulation Committee (ERC), intends to develop a study to support ongoing discussions among ICT regulators in the region regarding the appropriate level of regulation, if necessary, for NGSO systems to ensure fair and equitable regulatory treatment among service providers. ## 3. Project Objective The primary goal of the technical assistance and consultancy is to develop a comprehensive study including findings on spectrum allocation, service accessibility, economic regulation aspects, and competition in broadband markets within SADC. ## 4. Scope of Work The consultancy will focus on constructing a study on the economic regulation of satellite communications in SADC, which will cover, among other things, the following points: - Cost accounting approaches for telecommunications and satellite services within SADC and their impact on pricing and accessibility of telecommunications services. - Assessing the competitive impact of Non-Terrestrial Networks (NTN) on Terrestrial Networks (TN) in SADC. - Impact of spectrum allocation approaches on the cost of providing telecommunications services between NTN and TN networks. - Examining and proposing regulatory frameworks for the licensing and regulation of NTN. The consultant will work under the general guidance of CRASA and its relevant committees, utilizing an inclusive, consultative, and evidence-based approach to ensure that the study's recommendations are regionally relevant, feasible, and aligned with global best practices. ## 5. Constraints The consultant is required to undertake the project within defined budgetary limits and complete the project within the timeline stipulated in these terms of reference. ## 6. Administrative Arrangements and Reporting Throughout the project, the consultant will work closely with CRASA on a regular basis and as needed. ## 7. Deliverables The submission of a study must be made to the Economic Regulation Committee by December 1, 2025. The consultant's study to achieve the project’s aspirations will include: a) An initial report, including a statement of the problem, detailed methodologies, a work plan, timelines, project risks, and key milestones, to be submitted prior to validation. b) Draft study report. c) Submission of the finalized study. ## 8. Qualifications and Experience The consulting firm should possess: 1. Knowledge and firsthand experience in developing economic studies on ICT in Africa. 2. At least two members should have postgraduate degrees in economics, finance, and/or managerial accounting, electronic engineering, or other telecommunications-related qualifications. 3. Evidence of having conducted competitive economic studies in the ICT sector in the last 5 years. 4. At least 5 years of experience in policy writing or regulatory consultancy. 5. Experience working in multicultural and regional contexts, preferably within SADC. 6. Knowledge of ITU standards on satellite communications and other international best practices.