INTERNET LAW - MALAWI INTERNET SERVICE PROVIDER LICENSING

At one time known as the British protectorate of Nyasaland, this landlocked southeastern African colony became the independent nation of Malawi in 1964. Being one of the world’s most undeveloped countries, with a per capita annual income of $600 for 13 million residents, the country is slowly starting to work its way out of poverty symbolized by the subsistence farming that has sustained the people for millennia. One pillar in reformation plans for Malawi is a legal reformation movement meant to establish an ironclad constitution and an education in the benefits of the rule of law in the populace.

To better understand the Malawi law for Internet Service Provider (ISP) licensing, these questions will be answered: What Law Covers Internet Service Provider Licensing in Malawi? What Law Covers the Requirements to Obtain a Malawi ISP License? What Requirements are Necessary for an ISP License? What Other Information Does the Application Require? What is the Fee for an Internet Operating License?

Problems in Malawi include widespread corruption, population growth, over-fatigue of agricultural lands, and the grim specter shadowing much of the rest of Africa, the spread of HIV/AIDS. Almost 90% of the Malawi populace is rural in a country about the size of Pennsylvania, USA, and for the agrarian economy tobacco farming plays an outsize role. The economy absorbs much sustenance from the IMF, the World Bank, and individual donor nations. Malawi was also approved for relief under the Heavily Indebted Poor Countries (HIPC) program in 2006.

While the Government is trying to evolve the economy in a cash-flow poor environment, and develop a market economy as it improves educational facilities, probably no stronger single economic growth factor could be implemented than a durable technical infrastructure to sustain a countrywide Internet. Currently ten Internet Service Providers (ISPs) are licensed in the country.

What Law Covers Internet Service Provider Licensing in Malawi?
The Malawi Communications Act No. 41 was passed in 1998, and generally covers the communications sector, and although it did not directly address the subject of the Internet, it does lay down general provisions covering the licensing of such. The Malawi Communications Regulatory Authority (MACRA) was created according to Section 3 of the Communications Act to provide regulation for the communications sector.

What Law Covers the Requirements to Obtain a Malawi ISP License?
Section 19 of the Communications Act is issued by the Malawi Communications Regulatory Authority (MACRA), and describes the procedure for registration for a Data and Internet Access General license. Sections 18, 36, 47 and 61 of the Communications Act all confer upon MACRA the mandate to issue licenses, and therefore any person may apply to MACRA for a communications sector license under the Act.

What Requirements are Necessary for an ISP License?
First, an “Invitation to Apply (ITA) for a license to provide Fixed Public Telecommunications Services in Malawi as a Second Network Operator (SNO)” must be filled out for MACRA.”

General Requirements:

The applicant must be a corporate entity duly incorporated under the laws of the Republic of Malawi.

A non refundable Application fee of MK 50,000.00 shall be paid by the Applicant at time of filing their Application with the Authority, the fee in the form of cash or Bank certified check.

Only “legal persons and /or consortia of legal persons” can submit an application and the certificate of incorporation and a certified copy of the consortium agreement must both be submitted, if applicable.

A licensee agrees to construct and keep in repair the “fixed public telecommunications network, capable of providing a telecommunications service,” if approved.

The applicants will establish a company incorporated under the laws of Malawi that shall independently own the license, if approved.

What Other Information Does the Application Require?

For any individual applicant, the paperwork should include a copy of your driver’s license; a copy of your passport, including visa page.

This application MUST also include this information:

1. For public entities and public corporations, this must be provided:

The group’s complete establishing document and the authority of the applicant vis-a-vis the group. Also, the group’s main objectives in filing an application must be provided.

2. For Companies this must be provided:

The applicant’s name, address, and registration number are required, and also names and addresses of the corporation’s directors, principal executives and shareholders. Also, the company’s main objectives and overall company profile.

3. For Individuals and Partnerships this must be provided:

The identification number, full names and permanent residential and business addresses of the individuals or partners must be submitted.

Business Design: Description of the service, coverage and business plan.

In terms of the business model and strategies for success, this information must be provided: A description of the proposed service; geographical area where the service is planned; If and how under-serviced areas will be aided by the proposed delivery; A projection of market size and target groups for the proposed service

Business Plan, Technical Information:

A nuts and bolts description of technical designs and parts of the proposed service, including: Configuration of the network; Description of interfaces; Equipment to be used by the applicant, as contrasted by the existent public infrastructure; A statement of compliance from a reputable Internet or technology analyst.

What is the Fee for an Internet Operating License?
According to Section 109, the Authority shall create these, ad hoc. The supplemental literature found on the MACRA site, in Q7, says, “the licences fee for Internet Service providers is $1,000 per annum plus 5% of net operating profit.” There is also an annual license renewal fee that will be set on or before the renewal date. The license fee shall be payable in USD or Malawi Kwacha Equivalent.