Regulatory Approach to Cost-Oriented Retail Pricing, Bundling of Services, and Promotional Pricing for Telecommunications Services and Products

REQUEST FOR EXPRESSIONS OF INTEREST (CONSULTING SERVICES – FIRMS SELECTION)

Country: Federal Democratic Republic of Ethiopia

Name of Project: Eastern Africa Regional Digital Integration Project (EARDIP)

Project ID: P180931

Assignment Title: Selecting a consulting firm for Regulatory Approach to Cost-Oriented Retail Pricing, Bundling of Services, and Promotional Pricing for Telecommunications Services and Products.

Reference No .: ET-MINT-556595-CS-QCBS

The Federal Democratic Republic of Ethiopia has received financing from the World Bank toward the cost of the Eastern Africa Regional Digital Integration Project (EARDIP) and intends to apply part of the proceeds for consulting services. The consulting services (“the Services”) include Selecting a consulting firm for Regulatory Approach to Cost-Oriented Retail Pricing, Bundling of Services, and Promotional Pricing for Telecommunications Services and Products.

Introduction

The importance of Establishing a clear regulatory foundation is critical to guide the market towards fair competition, innovation, and long-term viability. A fundamental pillar of this foundation is a cost-based retail pricing model. Such a model provides the regulator with a transparent, objective methodology for determining the true cost of providing telecom services. The aim is to assist the Ethiopian Communications Authority (ECA) to evaluate retail tariffs effectively, protect consumers from excessive charges while preventing destructive price wars.

2. Objectives

The primary objectives of this assignment are to: 2.1 Determine fair and reasonable cost-oriented retail prices for a set of telecommunications services through the development and application of a robust cost model. The model may utilize an Activity-Based Costing (ABC) methodology, or an equivalent, to ensure analytical rigor and consistency with international standards (e.g., ITU-T D.140, BEREC). The model should also consider the determination of SMP is specific market segments, 2.2 Develop a regulatory guideline for bundled services that promotes fair competition and protects consumer interests. This includes developing quantitative tools and methodologies to assess margin squeeze, ensuring bundle prices are sustainable relative to standalone cost-based services. 2.3 Develop a directive for marketing and promotional activities that promotes ethical behavior, prohibits deceptive practices, such as purposeful price confusion, foster a healthy and competitive market and protect consumer rights, and ensure truthful advertising.

3. SCOPE OF WORK

The scope of work shall encompass, but is not limited to, the following areas: Develop a Granular Costing Methodology: Develop a model for operators to calculate retail costs of relevant services (mobile voice, SMS, data, fixed broadband). The methodology must identify and quantify key cost drivers at each activity level (network operation, spectrum, customer acquisition, etc.) and allocate them to services using an Activity-Based Costing (ABC) approach, or an equivalent, such as Long-Run Incremental Cost (LRIC). Define Regulatory Review Mechanisms: Propose a practical and efficient process for the ECA to review, approve, and monitor retail prices, with timescale and thresholds for action. This includes defining the specific data submission requirements for operators. Develop Bundling & Margin Squeeze Frameworks: Create guidelines to address price discrimination and predatory pricing in bundles. This must include mechanisms for assessing margin squeeze, requiring the reconciliation of bundle costs with the underlying unit costs of individual components. Develop Marketing & Promotion Directives: Establish a framework governing all marketing and promotional activities, ensuring transparency and preventing anti-competitive behavior. This includes linking promotional pricing limits to cost-based floors. Conduct Sensitivity Analysis: The cost model must incorporate sensitivity analysis to simulate competitive price thresholds, revenue-cost gaps, and elasticity of demand to model affordability scenarios and consumer welfare impacts. The detailed Terms of Reference (TOR) for the assignment can be found on the following

website: www.dfp.gov.et or can be obtained at the email address given below.

Ministry of Innovation and Technology- Eastern Africa Regional Digital Integration Project now invites eligible Consulting firms to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the services. The shortlisting criteria are core business and years in business, relevant experience in the field of assignment, technical and managerial capability of the firm. The attention of interested Consultants is drawn to paragraph 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers dated September 2023 (“Procurement Regulation”), setting forth the World Bank’s policy on conflict of interest. Consultants may associate with other firms to enhance their qualifications but should indicate clearly whether the association is in the form of a joint venture and/or a sub-consultancy. In the case of a joint venture, all the partners in the joint venture shall be jointly and severally liable for the entire contract, if selected. A Consultant will be selected in accordance with the QCBS (Quality and Cost Based Selection) method set out in the Procurement Regulations. Interested and qualified consultants may obtain further information at the address below during office hours 08:30 to 12:00 & 14:30 to 17:00, Mondays to Thursdays; and 08:30 to 11:00 & 14:30 to 17:00 on Fridays. Expressions of interest must be delivered in a written form to the address below (in person, or by e-mail) on or before November 10th, 2026. Ministry of Innovation and Technology (MInT) Eastern Africa Regional Digital Integration Project

Attn: [contact details removed]