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Toward a Strategic Plan for Tele

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					 Toward a Strategic Plan for
   Telecommunications
   Services in CARICOM


            Hopeton S. Dunn, Ph.D.
Director, Telecommunications Policy and Management Programme (TPM)
                 Mona School of Business, UWI, Mona
      Overview of Presentation
   Status of Regional and Global Economy
   Definitions and Scope
   Global and Regional Trends in Telecom
   Telecommunications Landscape in CARICOM
   Regional Telecom Legislation and Policy
   Global and Regional Policy Framework
   Key Issues and Challenges
   The Strategic Planning Framework
   Approaches towards developing a CARICOM Strategy
   Closing Thoughts
Image Source: unicef.org
                Status of the Global Economy

         Global economic activity for 2009 still set to
          contract by 1.4%

         In over 25 developing countries, investment growth
          in the final quarter of 2008 fell by an average of
          6.9%

         IMF has increased its forecast of growth rate by
          0.5% to 2.5% for 2010. However growth will be
          sluggish and uneven



Source: Prospects for the Global Economy (2009). A World Bank Publication . World Economic Outlook (updated)
(2009). IMF Publication
          Impacts of Economic Crisis on
              CARICOM Countries
   US and other major markets for CARICOM exports are now in
    recession
    ◦ Traditional exports (aluminum, oil, bananas, sugar and rice)
      suffering decreasing demand

   Overall major fall off in tourist arrivals (2009)
    ◦ Anguilla (-24.2%)
    ◦ Antigua and Barbuda (-27.7%)
    ◦ Barbados ( -17.4)
    ◦ Montserrat (-12.2%)
    ◦ Cruise Ship passengers arrivals down (between 2008 and 2009)

    Source: Clegg (2009). The Caribbean and the Global Financial Crisis: Implications for
    Domestic Politics and Foreign Policy; Caribbean Tourism Organization
                      Growth of Global Services
                             Economy
                           Services as % of GDP: Time Series Trend

                      80%

                      60%
                                                                                    Germany
                      40%                                                           Japan
                                                                                    USA
                      20%

                        0%
                                 1870 1950 1987 1991 2001
                 Germany         22%       35%      55%       61%       69%
                 Japan           30%       29%      58%       59% 67.70
                 USA             26%       54%      63%       71% 75.60

Source: http://diec.onene2dev.raki.enigmainteractive.net/page/service_economy.cfm
        Growth of Services in Selected
            CARICOM Countries

       Value of CARICOM's Balance of Services 2003-2006 in
                            US$MN

1000

800
                                                            Jamaica
600                                                         TT
400                                                         LDCs
                                                            OECS
200

  0
          2003       2004       2005        2006


                      Source: CARICOM Regional Statistics
Centre-Periphery Model
Increased Competitiveness through
         Telecom Services

    Increased recognition and emphasis on Telecoms
     and ICTs as one of the major drivers of economic
     growth and development, with a focus on access
     and affordability, across the populace;

    High voice telephony penetration but low Internet
     access and connectivity

    Recognition of the rapid contraction of
     conventional agricultural export crops and limited
     manufacturing production within the region
 Definitions and Scope - WTO
 At the WTO, Telecommunications Services defined
 based on two categories:

1 - Basic Telecommunications include private and public
  services that involve end-to-end transmission of
  information and provided through a network
  infrastructure, including:
  ◦ Voice telephone services
  ◦ Packet and Circuit switched data transmission services
  ◦ Telex and Telegraph Services
  ◦ Facsimile Services
  ◦ Private leased circuit services
  Definitions and Scope - WTO
2- Value-Added Services, where suppliers “add
 value” to the customer's information by enhancing
 its form or content or by providing for its storage
 and retrieval. Services include,


                Electronic Mail
                Voice Mail
                Online information and database
                 retrieval
                Electronic Data Interchange (EDI)
     Definitions and Scope –
        Telecom Services
Telecommunications services must be
recognized as not being limited to an industry,
but as a key component to the development of
other industries in the matrix of social and
economic development, such as Manufacturing,
Banking and Finance.

Telecommunications services do not refer only
to infrastructure and hardware but also to data,
information and knowledge and the associated
human resource skills that are required.
       Definition and Scope

                   Infrastructure


                                                ICT
  Hardware/
                                          Manufacturing
Software/Data/   Telecommunications
                                         Business/Finance
                       Services
 Information                          Other Productive Sectors




                   Human Resource
                   Skills/Knowledge
                                            COMPETITION IN TELECOM SERVICES
                                              – MAJOR TELECOM PROVIDERS
                                   Bahamas
                                   Flow (Cable Bahamas), BTC




                                                      Haiti                                                    Antigua
                                                      Digicel, Conatel Teleco                                  Digicel, LIME
                                                                                   St. Kitts and Nevis
 Belize                                               Haitel
                                                                                   Digicel, LIME, Orange
 Digicel, Belize Telecom Ltd.
                                                                                                               Montserrat
 Speednet
                                                                                                               LIME
                                                                                Dominica
                         Jamaica
                                                                                Digicel, LIME, Orange
                         Flow, Digicel, LIME, Claro
                                                                                                               St. Lucia
                                                                                                               Digicel, LIME
                                                                                           St. Vincent
                                                                                                               Antilles Crossing
                                                                                           Digicel, LIME

                                                                                                               Barbados
                                                                                    Grenada
                                                                                                               Digicel, LIME
                                                                                    Digicel, LIME, Flow
                                                                                                               TeleBarbados,
                                                                                                               Antilles Crossing

                                                                                                        Trinidad
                                                                                                        Digicel, Flow, TSTT, Laqtel

                                                                                             Guyana
                                                                                             Digicel, GT&T,
                                                                                             Cel Star
                                                                                                                Suriname
Adapted from Stern, 2006, Promoting Investment in ICTS in                                                       Digicel, Telesur,
                                                                                                                RTBG
the Caribbean. Updated where information is available
    Global and Regional
    Trends in Telecoms

   Communications intensive economies,
    with high demand for new, mobile technologies in
    support of the increasingly culturally based service
    economy;
   Increased demand for bandwidth to satisfy
    connectivity needs;
   Moves towards regional harmonization in regional
    policy and planning; and
   Increased telecommunications and ICT investments
    in the region since 2000
Global Advancements in Telecom
   Focus on mobile
    broadband and 3G / 4G
    services

   Increasing demand for
    high-end wireless
    technologies such as
    WiMax, mobile video
    calling/conferencing
    Next Generation Networks (NGNs)

   Rapid growth and demand for NGN services
    which afford the convergence of a host of
    services on the computer, laptop, netbook
    or mobile phone including:
    ◦ Media services
    ◦ Real time e-transactions and other business
      services
    ◦ Mobile marketing
    ◦ GPS / GIS and Security services
    ◦ Social Networking and virtual gaming
            Telecommunications Landscape
                    in CARICOM




     Countries are at different stages on the ICT
              development continuum

Source: Nurse. L.A. PhD. Digital Diaspora Network for Caribbean and ICT Development in CARICOM
countries, 2003.
Telecommunications Landscape –
 Digital Access Index, ITU, 2003
            Other Digital Indices
   Countries ranked in the Economist
    Intelligence Unit’s E-Readiness Index, 2008
    ◦ Jamaica – 49th – 5.17
    ◦ Trinidad and Tobago – 50th – 5.07
   Digital Opportunity Index (ITU, 2007)
    ◦   Barbados 27th
    ◦   Jamaica 55th
    ◦   Trinidad and Tobago 59th
    ◦   St. Vincent 69th
    ◦   Grenada 71st
    ◦   St. Lucia 73rd
       Preliminary SWOT Analysis
Strengths:
                                 Weaknesses:
- Basic Core of Highly Skilled   - Poor intra-country
Professionals                    broadband connectivity
- Competitive Wage Structure     - Resource availability and
                                 allocation
- Cultural and Creative Edge


       Opportunities:
                                 Threats:
- Proximity to US and Canada
- Lower barriers to entry        - Inadequacies in the policy
- Wider market reach             environment
facilitated through technology   - Global Economic Downturn
- Large Caribbean Diaspora
“The most important factor that led to America’s
stunning success in information technology was
not the free market but government regulation…
These actions opened the door to competition
and lower prices. More important, they changed
the industry’s structure, replacing monoliths with
smaller, specialised companies which have to
work with others with complementary skills. The
result has been tremendous innovation.”

                             Economist.com. June 2, 2009
   REGIONAL TELECOM LEGISLATION AND POLICY (1)

Country             Legislation                    Policies

Jamaica              Telecommunications           Telecommunications   Policy, 2007
                    Policy, 2000                   National Information and
                     The Office of Utilities      Communications Technology
                    Regulation Act (1995)          Strategy, 2006
Barbados            Telecommunications     Act,    VoIP policy (2007)
                    2001                            Barbados Unregulated Services
                    Fair Trading Commission       Policy (2003).
                    Act (2001)
                    Utilities Regulation Act,
                    CAP.282 (2002)


Trinidad & Tobago    Telecommunications Act        Draft Policy for Micro, Small and
                    (2001), Amended(2004)          Medium Sized International Public
                                                   Telecommunications Service and/or
                                                   Network Providers in Trinidad and
                                                   Tobago(2004)
                                                   National Information and
                                                   Communications Technology Plan
                                                   (Fastforward TT)
       REGIONAL TELECOM LEGISLATION AND POLICY(2)

Country       Legislation                    Policy


Guyana        Telecommunications   ACT,      National Development Strategy
              1990                           (2001-2010)
              The Public Utilities
              Commission Act (1999)
              Post and Telegraph Act
              Cap.47.01
OECS           Telecommunications Act       ECTEL   makes policy
               - St. Lucia, 2000             recommendations to its member
               - St. Vincent and             states, e.g.:
              Grenadines, 2000                - St. Vincent and Grenadines’
               - St. Kitts and Nevis, 2000   recent consultations on VoIP IP
              (Amended 2001)                 Telephony regulation policy,
               - Dominica, 2000
              (Amended 2001)
               - Grenada, 2000
           Re-Thinking Regulation
   Legislation dated with many Acts and Laws governing the
    telecom sector pre-dating Telecom liberalization in many
    states

   Legislation to address convergence of sector with Information
    Technology and media and its interactions with financial sector

   Other severely outdated laws to be reassessed include:
    ◦ Competition Laws
    ◦ Broadcasting and Cinema Laws

   E-Transactions and E-Government legislation still under
    development in a number of countries
  The Global Policy Framework
WTO General Agreement on Trade in Services – provides legal
framework for implementing policy reforms which would
provide stability and regulatory certainty for investors in the
Region



UN Millennium Development Goals – social, economic and
human development by 2015



Declaration and Action Plan of WSIS – framework for
development of ICTs and its integration in to key social and
economic sectors.
The Regional Policy Framework


   CARICOM Connectivity Agenda
    ◦ Individually and collectively move towards
      expanding access to global knowledge and full
      integration with the knowledge society
    ◦ Modernization of the telecommunications sector
    ◦ Promoting and strengthening free and fair
      competition in telecommunications services
    ◦ Facilitating access to and usage of computers and
      software in our learning environments
    The Regional Policy Framework



                                              Reduced
       Affordable,                                                                 Highly
                                            barriers for       Government
      high quality         Fair and                                                trained
                                             entry and         led adoption
      ICT services       competitive                                                 and
                                             simplified       to the delivery
           and           environment                                               skilled
                                           administrative       of services
      equipment;                                                                  workforce
                                               rules;




Source: Green Paper - Action Plan for Telecommunications/ICT Services in CARICOM, 2007
        Key Issues and Challenges

Policy and Legislative   Human Resource           Infrastructure
     Framework            Requirements            Requirements




Access to and Use of     Influencing Global
                                                       Financing
Telecommunications             Policy



                                        Regional
             Sustainability and
                                      Coordination /
            Environmental Issues
                                       Cooperation
         Policy, Legislative and
         Regulatory Framework
   Pace of development of policy, legislative and
    regulatory framework not equal across the
    region

   Non-harmonized approach except in a few
    areas e.g. Spectrum policy.

   Technological advances often outpace the
    rate of change of the framework
Human Resource Requirements
   Developing a renewable cadre of skilled specialists
    in technology and policy of the telecoms sector

   Identifying training and development gaps as well
    as the opportunities to fill those gaps within the
    region collaboratively

   Expanding existing training facilities

   Facilitating OPEN ACCESS cross-regionally
    Infrastructure Requirements
   Redressing the digital divide through regional level
    connectivity infrastructure
   Adequate investments needed in providing
    affordable region-wide broadband coverage
   Some level of investment has taken place through
    foreign firms such as Digicel, Claro, Orange,
    Verizon etc.
   However, the cost of capital for indigenous firms to
    compete in providing telecommunications services
    at affordable prices to the end users is often
    prohibitive.
              Access to and Use of
              Telecommunications
   Mobile telephony penetration is growing at a rapid rate in
    the region
   However there is a slower pace of growth in the adoption
    of more advanced business-oriented technologies
   Challenges include:
    ◦ Adopting regional policies that facilitate the move from
      basic telecommunications services to more advanced
      3G applications
    ◦ Addressing pricing issues that make access and
      affordability of these services a deterrent to adoption
              Other Key Issues and
                  Challenges
   Influencing global policy
    ◦ Un-coordinated regional participation in international
      processes, including WSIS, EPA, WTO discussions
    ◦ Missed opportunities to influence the global agenda


   Financing
    ◦ Enabling access to funding from indigenous               financial
      institutions through tax incentives and otherwise
    ◦ Often unsuitable terms and conditions are associated with
      funding from multilateral agencies
             Other Key Issues and
                 Challenges
   Sustainability and Environmental Issues
    ◦ Mitigating adverse effects, including:
      carbon emissions, climate change, e-junk, etc.


   Regional Coordination / Cooperation
    ◦ Redressing the fragmented regional approach to telecom
      policy making with several institutions often with
      overlapping and confusing jurisdictions (CTU, CARICOM
      Division, CKLN)
    ◦ This also prevails at the national level in some cases
The Strategic Planning
     Framework
      Organizational Implications
   Organized, co-ordinated CARICOM machinery
    and strong political will
   Common vision for telecommunications across
    CARICOM
   Public/Private sector/Civil Society partnership
    model
   Evidence-based policy making through Research
    and Development
   Mechanisms for measurement and evaluation of
    progress
    Approaches towards Developing a
           CARICOM Strategy
   Policy-Relevant Data Gathering
    ◦ Analysis of existing plans, strategies and policies
      on regional and national levels
    ◦ Review of key global policy documents

   Benchmarking with other regions on existing
    strategies and stages in development

   Region-wide Consultations
                                                       Bridging the
                                                      Digital Divide




   E-Powering Jamaica
           National ICT Strategic Plan 2007-2012
                                  Prepared for
                  Central Information Technology Office (CITO)
Ministry of Industry, Technology, Energy and Commerce, Government of Jamaica

                                    by
               Hopeton Dunn Ph.D. and Evan W. Duggan Ph.D.
               Mona School of Business UWI, November 2006
       National Development Plans




Image Sources: http://www.broadcastingcommission.org/documents/2007/Vision2030.pdf
http://vision2020.info.tt/
                 Desk Research
   Key documents for review and analysis

    ◦ Global, e.g. WSIS, GATS agreements

    ◦ Regional, e.g. CARICOM documents and other
      initiatives

    ◦ National, e.g. National Telecom/ICT Plans, National
      Telecom Policies and Regulations

    ◦ Statistical Indicators
         Benchmarking Analyses
   Analysis of existing national and regional
    strategies for telecommunications services in
    the developed and developing world
    including:
    ◦   Europe
    ◦   South East Asia
    ◦   Africa
    ◦   Central America
    ◦   South America
   Also some countries: Ireland, Ghana, South
    Africa, Malaysia, Costa Rica, US, UK
        Fieldwork and Primary Data
                Gathering

   Focus groups and interviews in a selection
    of countries
    ◦ e.g. Jamaica, Barbados, Trinidad & Tobago, ECTEL
   Online questionnaires and online forums for
    other major stakeholders across the region
   Data-gathering through network of in-
    country research coordinators
       Consultative Approach

   Intermittent drafts to be reviewed in
    3-4 consultations to be held at
    different locations in the region
    ◦ Jamaica
    ◦ Trinidad
    ◦ ECTEL
           Expected Outcomes
   Final Document must be the result of
    consultations with stakeholders at all levels
    across the region
   Will include:

    ◦ Region-wide strategy with consideration of
      commonalities as well as the variations in the
      region

    ◦ Operational Plan with specific timelines and
      monitoring mechanisms
      Closing Thoughts
A pro-active strategy for telecom services
will   require   three    key    elements;
harmonization at all levels, co-ordination
and co-operation among all stakeholders
including governments, businesses, civil
society and international and multilateral
interests.
   Thank You!

hopetondunn@gmail.com

				
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