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# " & "$ ' ( &! ) %" # '* ( + # & , ' & - /0 1 . ! " Note by the Director of the BDT EVOLUTION OF THE ITU-D SECTOR MEMBERSHIP TRENDS AND PERSPECTIVES 1. Overall evolution in 2007 and during the 2003-2007 period For the first time since the ITU-D Sector was created and welcomed Sector Members in 1992, the Telecommunication Development Sector has taken the lead in terms of number of Sector Members, in the friendly competition with the ITU-R and ITU-T Sectors. By the end of November 2007, the ITU-D Sector has 328 Members out of 609 for the whole of the ITU. Nevertheless, it has to be noted that the Development Sector profits from the possibility given to companies and organizations to pay a minimum modest annual fee of 1/8 unit (7’950 chf) for companies and organizations based in developed countries and 1/16 unit (3’975 chf) in developing countries, compared with the minimum ½ unit (31’800 chf) for the other two ITU Sectors. Another important factor to take into account in the “vitality” of the T & R Sectors is the participation in the Study Groups. ITU-T and ITU-R have many Study Groups. Numerous companies and organizations have been attracted to become “ITU Associates” which allows them to participate in the activities of only one targeted Study Group at a lower cost. They have respectively 116 (ITU-T) and 27 (ITU-R) ITU Associates when the ITU-D has only a few (6). The development of new ITU-D Sector Members was very active since WTDC-06 in Doha, with 169 companies and organizations who joined ITU-D between 2003 and 2007, 29 during the sole year 2007. The significant decrease of denunciations had also an important impact on the net result of ITU-D Sector membership during the period, the lowest number (12) equally being reached in 2006 and 2007. The Council decision to delete Sector Members with arrears from the ITU list extremely affected the year 2007. The first consequence to this decision was experienced in January 2007 with 23 ITU-D Sector Members removed from the list of ITU Sector Members. The 29 new ITU-D Sector Members who joined the activities of the Development Sector -2WGPS-08-6/3-E compensated this decrease as well as the small amount of denunciations (12) during the whole year 2007. The private sector contributed to 86% of the new Members of ITU-D Sector with a vast majority of operators and service providers from developing countries. Sector Members from the private sector represent 84% of the overall ITU-D sector membership at the end of November 2007, a 2 point increase compared to 2006. In terms of financial contributions, the overall ITU-D Sector Membership represented 29.3 contributory units in 2007 ( # 1’864’275 CHF), a 1% decrease compared to the previous year as the increasing number of Sector Members was negatively impacted by the decreasing average value of the contributions, most Sector Members choosing the minimum sector membership fee. 1.1 New ITU-D Sector Members ITU-D welcomed 29 new companies and organizations in 2007, close to the figure corresponding to 2004 and 2006 (28) and quite lower than in 2003 and in 2005 (43 & 41 respectively). From a geographical standpoint, the performance achieved by the Europe & CIS region was noted; they represented 31% of the overall new ITU-D Sector Members in 2007. The rest of the regions increased their membership equally except for the Africa region which evolution was quite small. Total New ITU-D Sector Members in 2004, 2005, 2006 & 2007 (Gross) 41 29 28 Total New ITU-D Sector Members in 2004 Total New ITU-D Sector Members in 2005 Total ITU-D Sector Members in 2006 New ITU-D Sector Members in 2007 2007 N E W M e m b e rs s in c e 1 Jan u a ry 200 7 AFR AM ARB ASP EUR Jan 4 0 2 1 0 1 Feb 6 2 2 1 0 1 M ar 0 Apr 3 M ay 2 0 0 0 1 1 Jun 0 0 0 0 0 0 Jul 1 0 0 0 0 1 Aug 1 0 0 0 0 1 Sep 5 0 2 0 1 2 O ct 3 Nov 4 D ec Y e a r to d a te 29 2 6 6 6 9 1 s t . h a lf : 1 5 0 0 0 0 0 1 0 2 0 0 2 n d . H a lf : 1 4 0 0 0 0 2 1 0 2 1 1 -3WGPS-08-6/3-E ! " % ' $ # /! 0 #$ % , " % " *" % ' %% % $ &' % ( " #$ ( % %. #$ 2 ) * +$ % % #%. % " % # %3 + $ ( " ' . /! 0 1 $ % % $ 4 15 12 10 # /! 0 1 " % $ % 5 2 0 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 3 3 3 3 4 3 4 2 Q1 2006 Q2 2006 1 Q3 2006 5 4 1 3 4 Q3 2005 Q4 2005 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 1.2 Suspensions Resolution 152 (Antalya 2006) resolves, amongst others, that in the event of late payment of ITU Sector Members and Associates, suspension of participation in ITU shall be imposed three months (90 days) after the date on which payment of the annual contribution was due, and, in the absence of a negotiated and agreed repayment schedule, exclusion of a Sector Member or an Associate on grounds of non-payment shall occur six months (180 days) after the date of receipt of the notification of suspension. As a consequence, 64 ITU-D Sector Members were suspended on 1 July 2007 and 4 others on 1 October 2007 due to non payment of their financial contributions. Since then and thanks to the close follow up of these companies done by the ITU Regional Offices and the Partnership, Promotion and Membership division of the BDT (PPM), 26 companies either paid their arrears or signed a repayment agreement. 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 64 51 45 46 42 01-Jul-07 31-Aug-07 30-Sep-07 31-Oct-07 30-Nov-07 -4WGPS-08-6/3-E Out of the 42 suspended ITU-D Sector Members, 39 could be deleted from the ITU Global Directory on 1 January 2008 and 3 on 1 March 2008 % 6 7 # % # 5 % 6 5 7 # " % % 85 4 6 5 9/ " 5 % 4 6 9/ # 1.3 Special targeted actions meant to increase the number of ITU-D Sector Members Suspensions: BDT accomplished numerous targeted actions throughout 2007 with the objective of encouraging these companies and organizations to either pay or sign a repayment agreement with ITU in order to keep their ITU-D Sector Membership status. BDT Prospects: In parallel, BDT has created a roster of “prospects” which is the result of the various contacts we have with companies and organizations who demonstrate interest in the activities and programs of ITU either at the occasion of external events or when they participate in ITU seminars / workshops /meetings. This generic file can be updated and shared by ITU staff in Headquarters and in the Regions. An active role of all BDT units is essential to that regard to expand overall ITU-D Sector Membership. 1.4 Close synergy between BDT teams and ITU Members The positive evolution of ITU-D Sector Membership could not have been achieved without a strong teamwork between BDT units and many ITU Members themselves. We have also noted that BDT staff present at different important ITU and non ITU events increases ITU’s visibility and attracts companies and organizations who further become ITU-D Sector Members. -5WGPS-08-6/3-E 1.5 ITU-D Sector membership 2007 “at a glance” *+ * ** * * * ) " ! " # " " $ " " ! " ! % " $ " " & " ' ( " ' , % % * 390 : ) .. .. .. /! 0 1 /! 0 1! /! 0 1; " " " %% %% %% ITU-T 328 ITU-D 301 282 ) 314 ITU-R 285 & : Since 1993 where the newly created ITU-D Sector registered its first Sector Members, ITU-D Sector Membership has steadily increased and represent now 55% of all ITU Sector Members (Sector Members may belong to several Sectors). The gap of 154 Sector Members between ITU-D and the ITU-T which existed at the WTDC-02 in Istanbul has completely disappeared today. Nevertheless ITU-T has significantly increased its number of Associates during the period, which -6WGPS-08-6/3-E represented a need expressed by many companies/organizations who only participate to the work of a single Study Group. 1.6 10th Year Anniversary 19 companies and organizations joined ITU in 1998 and since that date have been participating in the activities of the Development sector. Congratulations and Happy 10 year Anniversary of ITU-D Sector Membership to: <4 4 @A ! ; $ ; 7 ## 9 $ $$ E ! # /% B# # $% % % " F % * 49+ %. ! " $ % !E E ! 9 ! F % % $?4 !E E ./ % $ % " $ ?/ $ ; "" * ! /+ % $ % !E E "" % *9 4 ; ! + %$ E E * ! 4 I+ ! ! ! 0 = % % % $ < % % $ 9= * $ 9 "" ! 4H + % 9 " " %% " !E E %% "" #/ $ % * 7! + *9 /+ / $ $ $ G < " $ ( ! ! " 9 % % 9 "" *; 9 + % < = "" % ' 2 %? %% @ @ % 9 % 9C > ; $D / < " $A < > $ %7 % 4 % 9 "" % # G $ ! E E ! 4 I9 4 I 9 A 10 year Anniversary certificate will be delivered to the concerned Members at the occasion of the first meeting of the Telecommunication Development Advisory Group meeting in 2008. In the same spirit and as a prove of recognition to all new ITU-D Sector Members an ITU-D SECTOR MEMBERSHIP CERTIFICATE is provided to every one of them. -7WGPS-08-6/3-E 2. ITU-D Sector Membership by region 2.1 Overall breakdown per region Since 2003, the number of new Sector Members who joined the ITU-D, the denunciations which took effect during the period, the removals due to suspensions and, finally, the position of the respective regions at the end of 2007 is the following: ' , , / ) $0 $ $ $ 3 2 5 & $6 8 0 4 : : ) ) : : 8 8 8 8 1 J 1 J J J J J ) J) 1 8 : & ) ) 8 8 ) ) ) 8 & : & 00 % 1 ) ) & J 1 J J: J) 1 J 1 J 1) J : J J 1 J: J ) 1 1 1) J ) &) & & '2 % " 2( % 7 50 0 9: 0 / ; / < A m e ric a s A ra b S ta te s A fric a A s ia P a c ific 8 , 40 E u r o p e & C IS 30 20 10 0 2002 2003 2004 2005 2006 2007 AFRICA region: modest but regular growth over the period 2003-2006. The region represented 9.7% of ITU-D Sector Membership in 2002 and 12.2% at the end of 2007. AMERICAS region: showed a continued decline since 2002. When the region represented almost 30% of ITU-D Sector membership in 2002, it represents now 19.2%. -8WGPS-08-6/3-E ARAB STATES region: it demonstrated the most active part of ITU-D Sector Membership development. The position of the region steadily increased over the year : from 15% in 2002, 18% in 2003, 19% in 2004, 23.3% in 2005, 24.6% in 2006 and 23.2% at the end of 2007. ASIA PACIFIC region: almost stable throughout the period, at #15-16% of overall ITU-D sector Membership with a slight increase in 2007 (17.4%). EUROPE & CIS region: showed a slow but continued decline over the last 4 years. The region represented 30.2% of ITU-D in 2002, then 27.5% in 2003, 26.8% in 2004, 25.8% in 2005, 25.4% in 2006 and finally an increase of 28% in 2007. It has also to be noted that a still high number of countries have no ITU-D Sector Members. Those countries should be considered as a priority in targeting new companies and organizations which can benefit of their Sector Membership. 85 countries out of the 191 ITU Member States with NO ITU-D Sector Members: AFRICA (24) Angola, Benin, Burkina Faso, Cape Verde, Congo, Ecuatorial Guinea, Eritrea, Ethiopia, Gabonese Republic, Guinea, Guinea-Bissau, Madagascar, Malawi, Mali, Namibia, Niger, Democratic Republic of the Congo, Rwanda, Sao Tome and Principe, Seychelles , Sierra Leone, Swaziland, Uganda, Zambia. AMERICAS (15) Antigua and Barbuda, Barbados, Bolivia, Brazil, Chile, Dominica, El Salvador, Grenada, Guatemala, Haiti, Nicaragua, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Suriname, Uruguay. ARAB STATES (2) Comoros, Djibouti. ASIA PACIFIC (21) Bangladesh, Brunei Darussalam, Cambodia, Democratic People’s Republic of Korea, Kiribati, Lao People’s Democratic Republic, Maldives, Marshall Islands, Micronesia, Myanmar, Nauru, Nepal, New Zealand, Papua New Guinea, Solomon Islands, Samoa, Singapore, Tonga, Tuvalu, Vanuatu, Viet Nam. EUROPE/CIS (23) Albania, Andorra, Belarus, Croatia, Estonia, Georgia, Hungary, Iceland, Ireland, Latvia, Liechtenstein, Lithuania, Luxembourg, Monaco, Montenegro, Poland, Kyrgyz Republic, San Marino, Slovenia, Tajikistan, Turkmenistan, Uzbekistan, Vatican City State. 3. Financial contributions 3.1 Global 2007 ITU-D Sector members’ contributions In 2007 the ITU-D Sector Members contributed for a total of 29.3 units which represents an amount of 1’864’275 CHF based on the annual value of the 2006-2007 contributory unit (1 unit = 63’600 CHF). The overall contributions by ITU-D Sector Members reflect a 1% decrease compared to 2006. -9WGPS-08-6/3-E This modest decrease of the financial contributions can be explained by several new ITU-D Sector Members in 2007 that belong to the category of organizations exempted of ITU fees which is applied to international and regional non-for- profit organizations dealing with telecommunication matters. Those fee exempted organizations represented 9.2% of ITU-D Sector Membership in 2002. They were 15.6% in 2006 and now represent 17% of the overall Sector’s membership. It is to be noted that currently non ITU Sector Members are invited to participate in many ITU activities, in particular workshops and seminars, without paying any contribution to the Union. That could be reviewed in the near future at least on a “cost recovery basis” to avoid charging the ITU Regular budget with such activities (except in case of overall ITU/BDT promotional campaign). 3.2 Breakdown of contributory units by regions and evolution since 2002 Breakdown of contributory units by regions in 2007 (%) 170 1/16 1/8 1/2 Exempt 1/4 1 150 130 110 90 70 50 30 10 -10 2003 2004 2005 2006 2007 - 10 WGPS-08-6/3-E AFR AMS ARB ASP EUR & CIS 03 35 TOTAL 04 45 88 14 12 1 05 48 85 12 12 1 06 52 91 11 10 1 07 56 94 11 10 0 02 03 04 05 06 07 02 03 04 05 06 07 02 03 04 05 06 07 02 03 04 05 06 07 02 03 04 05 06 07 02 Exempt 4 1/16 1/8 ¼ ½ 1 2 1 1 0 5 3 1 1 0 6 4 1 0 0 6 4 1 0 0 7 4 1 0 0 7 6 9 12 12 11 12 1 3 4 1 2 1 3 4 1 2 1 4 5 1 2 1 6 6 1 2 1 6 3 4 4 5 5 6 10 14 20 21 23 25 24 19 23 26 30 32 28 26 26 27 28 27 22 30 37 43 60 66 60 14 19 19 24 28 31 10 11 12 16 16 16 99 116 127 158 169 157 4 37 33 29 28 29 27 2 1 0 0 4 2 1 4 1 1 3 2 0 2 2 0 1 1 0 1 1 0 1 2 1 7 20 22 18 17 17 16 41 35 33 31 35 40 102 97 1 2 0 3 1 0 3 1 0 3 1 0 3 1 0 3 1 0 3 0 5 3 6 3 6 7 0 5 7 0 5 6 0 5 6 0 14 16 5 15 14 5 1 10 9 The Sector Membership from developed countries varies quite a lot from one region to another. The graphic below shows the percentage of overall Sector Membership who either are exempted or pay the minimum 1/16 contributory unit. - The exempted vary from 60% in Europe & CIS to 7.8% in the Arab Region. - The 1/16 contributions vary from 79% in the Arab Region, 70% in the Africa Region to 17.4% in the Europe & CIS Region. In 2007, ITU-D did not have any Sector Member who pays 1 unit contribution (they were 5 in 2002). Breakdown of contributory units by regions in 2007 (%) 100 90 80 70 60 50 40 30 20 10 0 AFR AMS ARB ASP EUR & CIS 1/16 Exempt ____________