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