International Telecommunica tion Union
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7. ICT Infrastructure and Access
- I: Policies & Regulations in I+CT UNESCAP/ITU Regional Training Workshop on Enabling Policies and Regulatory Frameworks for Information and Communication Technology (ICT) Development in the Asia–Pacific Region Asia– May 5, 2004 Bangkok, Thailand
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Dr. Eun-Ju Kim EunITU eun-ju.kim@itu.int eun-
Overall Structure of Training
Agenda
Policies & Regulations of ICT: Policies & Regulations of ICT:
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0830H – 10:00H, Policies & Regulations in ICT: Current Status and Challenges – Development of ICT Infrastructure and Access Evolving Policies and Regulations in ICT driven by Technological Development and Convergence 1030H – 12:00H, Regulatory Frameworks I: Independence of Regulator Competition Safeguard Licensing and its Criteria 1300H – 1430H, Regulatory Frameworks II: Scarce Resources (e.g., Spectrum, Numbering, etc) Interconnection Universal Service and Its Funds Costing & Pricing Others through converged ICT 1500H – 16:30H, Good Practices & Lessons of Countries in Asia and Pacific Region – Analysis of survey
1. Current Status and Challenges: 1. Current Status and Challenges: Development of ICT Infrastructure and Access Development of ICT Infrastructure and Access 2. Evolving Policies and Regulations of ICT 2. Evolving Policies and Regulations of ICT driven by Technological Development driven by Technological Development and Convergence and Convergence
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Telecommunications = ‘ICT’ already ?
Telecommunication: ‘Any transmission, emission or reception of signs, signals, writing, images and sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems’
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ICT* = Converged Technologies ?
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Technologies Telecommunications INTERNET IT=Computer
Legislations
Broadcasting
Extract from Annex to ITU Constitution
i.e., Telecommunication is already broad enough to integrate‘Internet’: Internet is part of evolving technologies of telecommunications.
Regulations Administrations
Policies
Why ICT Is So Important, Today ?
Beauty of ICT is various applications and opportunities for “socioeconomic development”. But, such various ICT applications and opportunities won’t be able to be achieved without reliable and affordable ICT infrastructure – I.e., access to the ICT.
What is ‘access’ ?
Access to ICT means the making available of facilities/and or services, to another undertaking, under defined conditions, on either an exclusive or non-exclusive basis, for the purpose of providing electronic communications services. It covers, inter alia;
• Access to network elements and associated facilities and services, • Access to physical infrastructure, software systems • Access to number translation systems, • Access to mobile networks, for roaming • Access to conditional access systems for digital television services & • Access to Internet
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Basic Indicators
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Nepal Bangladesh Vietnam India Bhutan Sri Lanka China Philippines Kazakhstan Thailand Malaysia Korea (Rep)
242 357 430 474 734 873 942 984 1473 2065 3971 10188
Status of ICT Infrastructure and Access
Main Telephone Lines
Bangladesh Nepal Bhutan
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Telephone - Waiting List
China Korea (Rep.) Philippines Vietnam Malaysia Kazakhstan
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0
2000
4000
6000
8000
10000
12000
GDP per capita (US$) in 2002
{Source: ITU World Telecommunication Indicators, 2003}
0.51 1.41 2.84 3.98 4.17 4.66 4.84 10.50 13.04 16.69 19.04 48.86
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India Philippines Sri Lanka Vietnam Thailand Kazakhstan China Malaysia Korea (Rep.)
65.9 168.3 199.1 257.7 317.3 710.2 1648.8
Bangladesh Sri Lanka Nepal Thailand India
0
10
20
30
40
50
60
0
200
400
600
800
1000
1200
1400
1600
1800
Main telephone lines per 100 inhabitants in 2002
Waiting list for telephone lines in (000s) 2002
{Source: ITU World Telecommunication Indicators, 2003}
{Source: ITU World Telecommunication Indicators, 2003}
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Telephone Tariffs
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Mobile Cellular Subscribers
Nepal Bangladesh India Vietnam 0.09 0.81 1.22 2.34 4.92 6.43 16.09 19.13 26.04 37.68 67.95 0 10 20 30 40 50 60 70 80
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Nepal India Vietnam Bangladesh Korea (Rep.) Malaysia Thailand 0
0.01 0.02 0.02 0.03 0.03 0.03 0.07 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08
Sri Lanka Kazakhstan China Philippines Thailand Malaysia Korea (Rep.)
Local call (US$) in 2002
Mobile cellular subscribers per 100 inhabitants in 2002
{Source: ITU World Telecommunication Indicators, 2003}
{Source: ITU World Telecommunication Indicators, 2003}
Estimated Personal Computers
Bangladesh Nepal India Vietnam Sri Lanka China Philippines Thailand Malaysia Korea (Rep.) 0 10 20 30 40 50 0.34 0.37 0.72 0.98 1.32 2.76 2.77 3.98 14.68 55.58 60
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Internet
Bangladesh Nepal Sri Lanka Kazakhstan India Vietnam Philippines China Thailand Malaysia Korea (Rep.) 0 10 20 30 40 50 0.15
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0.34 1.06 1.57 1.59 1.85 4.40 4.60 7.76 31.97 55.19 60
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Estimated PCs per 100 inhabitants In 2002
Internet users per 100 inhabitants in 2002
{Source: ITU World Telecommunication Indicators, 2003}
{Source: ITU World Telecommunication Indicators, 2003}
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Mobile Internet
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Broadband Subscribers
Bangladesh Kazakhstan Nepal Sri Lanka Thailand Vietnam Malaysia India China Philippines Korea (Rep.) 0 20 40 60 80
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Pay TV - Cable TV Subscribers
Kazakhstan Malaysia Vietnam Sri Lanka Thailand Philippines China Bangladesh Nepal Korea (Rep.) India 0.0 10.0 20.0 30.0 40.0 50.0 60.0
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0.1
0.3 0.7 2.3 4.5 15.6 96.5 100 120
As % of total subscribers in 2002
{Source: ITU World Telecommunication Indicators, 2003}
{Source: ITU World Telecommunication Indicators, 2003}
Pay TV - Home Satellite Antennas
China India Kazakhstan Korea (Rep.)
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0.7 5.2 24.1 31.1 45.9 56.5 62.5 66.0 70.0
Nepal Vietnam Bangladesh Sri Lanka Philippines Thailand Malaysia
0.0 0.0 0.2 2.1 21.9 0 5 10 15 20 25
As % of TV households in 2002
As % of TV households in 2002
{Source: ITU World Telecommunication Indicators, 2003}
{Source: ITU World Telecommunication Indicators, 2003}
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International communications capacity, Gbit/s, ASP
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Digital Divide in Asia & Pacific
Combined density between haves & have-nots in Asia & Pacific, 2001
70 60 50 40 30 20 10 0
65
Internet Telephone
Bangladesh
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Not just service but ‘facilities’ for access
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Lao Nepal Solomon Islands Cambodia Average Korea(Rep.)
Fixed
Mobile
Internet
8 0 1992
9 0 1993
11 0 1994
14
16
18
20
23
30 26
31
Japan Singapore Taiwan,China HK,China
0 50 100 150 200
8 0 1995 0.1 1996 2 1997 3 1998 1999 2000 2001
{Source: Various ITU Publications}
‘Access with quality’ vs. ‘investments’
Telecom expenditure of countries in Asia & the Pacific, (2001-2002)
Australi a Hong Kong India South Korea Malaysia Philippines China Singapore Taiwan
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16 14 per 100 inhabitants, June 2001 12 10 8 6 4 2 0
Fixed Wireless
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Top 6. DS L Broadband Ethernet LANs 1. K orea (Rep.) in Apartment Buildings 2. Hongkong China Cable M odem 3. Canada 4. Taiwan, China DSL 5. Iceland 6. Sweden
Top 6. Cable M odem 1. K orea (Rep.) 2. Canada 3. Netherlands 4. United States 5. Austria 6. Belgium
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o n Can g k ad on a g Ch in a Un Sw it e ed e d Ta S n iw tat an es ,C h in Ne th a er la nd s Au s Sin tr ia ga po Be re lg De iu m nm ar k Ic el a G nd er m an y S w J ap a it z n er lan Es d to nia F in lan d Fr an A ce us t ra P o l ia rtu ga No l rw ay Sp N ew ain Ze ala nd Un it e d Ita ly K in gd om
or ea
K
Thai
H
-60 -50 -40 -30 -20 -10
0
10
20
30
40
50
60
* S.Korea reached its penetration rate of 20% in 2003
{Source: Asia Pacific Development, 2002}
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Paradigm shift To digital economy
Shift from Shift from •• Agricultural Agricultural and/or Industrial and/or Industrial society; society;
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to to
•• Information society with a Information society with a knowledge-driven digital economy; knowledge-driven digital economy; •• Deregulated or privatized Deregulated or privatized telecom; & telecom; & Industry-led self-regulation & Industry-led self-regulation & power of individual consumers; power of individual consumers; •• Micro, small & medium-sized Micro, small & medium-sized entrepreneurs esp. in the era of entrepreneurs esp. in the era of eBusiness or eCommerce;;& eBusiness or eCommerce &
Trends of changing & evolving policies
Telecom Sector: Fixed:
– Regulated – Monopoly – Regulated – Dupoly/Multipl e TO De-Regulated, liberalized, privatized, or re-regulated with more detailed, but ‘soft’ regulatory frameworks Getting regulated with ‘hard’ laws
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Policies & Regulations in ICT: Tools for Improving ICT Infrastructure & Access
•• Centralized control Centralized control or regulation from or regulation from regulators/ regulators/ monopolies in monopolies in telecom; telecom; •• Significant market Significant market powers of powers of incumbent, incumbent, conglomerates & conglomerates & MNCs. MNCs.
ICT
As the foundation and tool for the all
Different patch of policies, laws & regulations in ICT Sectors
BROADCASTING Evolution over decades Till 1980s Right to communication POLICIES Broadcasting Policy 1990s onwards LEGISLATIONS Till 1980s Broadcasting Act
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Mobile:
IT Sector:
– Un-regulated – Multiple
COMPUTER/IT TELECOMS Not particular Not particular IT Policy Telecom Policy ICT Policy None or under Commerce Telecommunication Act Laws Regular revision of RA IT Act Revision of TA 1990s onwards Spam Act, Convergence Bill, Communications and Multimedia Act etc. State-owned or monopoly; REGULATIONS Till 1980s Public-oriented; Regulation Market-led competition; (e.g., censor, contents, Regulation 'Hard' & 'Soft' channel etc.) 1990s More towards monitoring to Emerging demands for Public or private owned; onwards protect public interest regulation to ensure De-regulation with more security & confidence detailed regulatory tools
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Why liberal policies ?
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Liberal Policy vs. ICT Growth .
Industries - Operators - HW & SW companies & Consumers
• Telecommunication sector, traditionally both regulated and operated by the government and/or state-owned monopoly, has been transforming towards deregulation, ‘progressive’ liberalization or privatization; • Liberalization with ‘competition’ especially in mobile services led them to outnumber fixed line services in both developed and developing countries (e.g., Cambodia); • Internet capacity, developed at liberal markets, exceeded international telephone circuit capacity in 2000.
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Efficiency Competitiveness & Accessbility Affordability
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FOR
Thus, yes, liberal policy led to growth in the telecom sector …. But !
Liberal policy with more detailed regulatory frameworks !
e.g., • Competition for a choice of services & suppliers as well as for competitive – if not, affordable - prices; • Universal Service Obligation & its funds from the incumbents &/or various operators for access to even rural & underprivileged groups; • Pricing & Rebalancing to reduce/update tariffs for affordability; etc. because of
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Liberal Policy: Leading to Sectoral Reform
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correlation between ‘policy/regulation’ & ‘access’
Most operators have been separated from the ministries.; Many underwent sectoral reforms or restructuring by separating regulators from policy-makers: e.g., over 110 worldwide and 17 in Asia-Pacific (recently Nepal, Bangladesh & Maldives). Influenced by convergence of ICTs, some moved further towards multisectoral or converged ministries (e.g., Korea, China, Australia, India, Thailand, Nepal etc.) and/or regulators (e.g., Singapore, Malaysia, Bhutan, Mongolia etc.).
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Current status of sectoral reengineering
Country Policy Maker Regulator Incumbent Bangladesh MPT BTRC BBTB China MII MII CT India MCIT TRAI BSNL Korea (Rep.) MIC KCC/MIC KT Malaysia MEWC MCMC TM Nepal MOICT NTA NT Philippines DOTC NTC several Sri Lanka MPT TRC ST Thailand MOICT TOT,CAT
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Major Regulatory Frameworks (1)
Fixed Mobile M C C C C C C C P P M P C C P C M C
•
Licensing carriers or service providers for different types of licenses, but ideally on ‘technology-neutral’, subject to availability of scarce resources (e.g., radio spectrum); Pricing services through various mechanisms ranging from price-cap, rate of return, to rebalancing of tariffs in accordance with maturity of markets or industries; Quality of Services through setting its criteria and monitoring them;
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•
•
{Source: ITU (2002), Internet for a Mobile Generation; Trends in Telecommunication Reform; & Global Directory} C=competition; M=monopoly; P=partial C.
Major Regulatory Frameworks (2)
• Ensuring interconnection among different fixed & mobile carriers’ networks on a fair, open, transparent, and non-discriminatory base through setting the financial, administrative and technical terms; • Managing radio spectrum for maximizing its limited resources with coordination with neighboring countries and regions to avoid any harmful interference; • Ensuring competition to provide various operators with level playing grounds or nondiscriminatory bases through removing entry barriers to new entrants inter alia; • Universal Service or Access to ensure that, as far as possible, no geographic area or social group (including people with disabilities and in needs) is deprived of access to telecoms service on reasonable terms; and so on ….
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Regulatory Principles in The Reference Paper*
1. 2.
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WTO
The RPs are not just limited to Telecom sector but applicable to IT, now ICT sectors
3. 4.
5.
Competition safeguards or prevention of anti-competitive behavior; Interconnection guarantee and charges transparent or public availability of licensing criteria; Independence of regulators from operators; Fair allocation and use of scarce resources (e.g., frequencies, numbers, rights of way etc.); and Universal service
*RP ….. now adopted by 72 governments
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Streamlined regulatory Processes: Public availability, transparency, & efficiencyStreamlined regulatory processes – esp. licensing –
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with certain deadline (e.g., 30 days after application), if not one-stop licensing; Public Consultative Documents to resolve problems, issues and complaints; Public Hearings to hear various voices; Structured Consultative Proceedings based on the submission of written comments by interest groups; Use of Analytic Findings by interested/consumer groups; Reply Comments by interest/consumer groups; Advice from various forums or advisory committees; Analytical researches by regulator’s own staff or contractors on specific issues; and so forth
Why Public Availability ? -------- For TRANSPARENCY !!!
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It will benefit for any parties, should regulators’ activities be publicly available and transparent through announcing and updating their ordinances, orders, directions, determinations, licensing conditions and criteria, the list of licensees, performance pledge and so forth in their annual reports, newsletters, or even Internet Homepages.
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Having ICT Policy itself is no use , unless ensuring & implementing: e.g.,
• GOVERNANCE: Policy-makers & Regulators – Policy & regulatory tools with political wills at national levels • MANAGEMENT: Industries – Operators/suppliers with their own interests or as an obligation of universal service – Various SMEs with more creative entrepreneurship • SOCIAL ACTION: Communities + Civil society – Various initiatives like telecenters • Users/Consumers protected – To demand & monitor for ICTs at affordable prices with choices and quality of services • International & Regional Rules harmonized – To deal with trans-border issues esp.
Other Prerequisites for improving ICT
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borderless ICT era.
Mechanisms to raise capital or funds (e.g., USO Funds), Development of infrastructure (e.g., electricity, road, transportation), Payment mechanisms (e.g., banking, exchange with goods etc.), Education and training for human resources Socio-cultural awareness (e.g. for poverty eradication, equality of genders, access from the underprivileged groups including the disabled), Economic empowerment (e.g., for new business and employment opportunities), Local languages and contents (e.g., multi-lingual software, local contents), Technical and legal measures for security and confidence (e.g., standards, cyber laws), Research, development, transfer, and implementation of new technologies Political wills with transparency and commitment, & Stable social, economic and political environment.
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Conclusion
• Policies can be a critical facilitator – I.e., ‘means’ or ‘safeguard’ - rather than ‘goal’ or ‘burden’ for healthy development of ICT infrastructure and access; • Regulatory Frameworks can be critical means of not only market entries in liberalized markets but also developing ICT infrastructure & applications
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.
How to use the means successfully is subject to each country’s circumstances: esp., political will and stability And skills with expertise.
Dr. Eun-Ju Kim ITU Regional Office 89/2 Chaengwattana Road Laksi, Bangkok 10210 Thailand Tel: +66 2574 8565 Fax: +66 2 574 9328 E-mail: eun-ju.kim@itu.int
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