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Regulatory _ Policy Challenges for the ICT Sector Lessons from voip training

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Regulatory _ Policy Challenges for the ICT Sector Lessons from  voip training Powered By Docstoc
					   Policy Issues to Enhance
Consumer and Earn Global Market
          Confidence



               October 19, 2006
Government’s Main Role

 “Creating an Enabling Environment”
 which means addressing, in a holistic
 manner, the various policy, legal, market
 and social considerations that interact
 both at domestic and global levels to
 create fertile conditions for ICT-led
 growth.
PROMOTING COMPETITION
Why Competition?

 Competition policy goals; not an end to itself, but a
 means to improved economic performance
 Competition in the ICT sector will lead to:
 –   Better ICT sector performance: More investment, more
     consumer choice, greater efficiency in the use of scarce
     resources, supplier adaptation, technological dynamism,
     responsiveness to users, and others
 –   Better macroeconomic performance: Jobs, productivity,
     economic growth, and price stability
How Does Competition Work?

  Competition refocuses management
  attention to:
  –   User needs
  –   Rivals’ rate/service offerings
  Competition creates
  –   Creates new incentive structures;
  –   Forces innovative conduct;
  –   Gives consumers greater power
THE GOAL:
EFFECTIVE AND SUSTAINABLE
COMPETITION


• EFFECTIVE COMPETITION
   •   actual and/or potential competitors restrains
       incumbents’ market behavior
   •   absence of players with significant market power

• SUSTAINABLE COMPETITION
   •   Long-run financial viability of competitors
Role of Government in Competition Policy


  Enabling, not Managing Competition

  Government can improve performance by
  –   Enabling competitive market structures
       Through licensing, spectrum allocation
  –   Requiring competitive conduct
  –   Prosecuting anticompetitive conduct
Critical Question Faced by All Regulators


  How does government compel, induce or
  otherwise persuade firms with commercial,
  technological, legal and political power to
  change market behavior in ways their
  principals consider to be against their
  commercial interests?
        PROMOTING COMPETITION
CASE STUDY: VOIP IN THE PHILIPPINES
Why Does VOIP Matter?



               internet




Because it allows you to make phone
calls over the Internet!
How VoIP Works
What are the policy objectives for
encouraging the deployment of VOIP?


                    Consumer Welfare
                    (lower communication
                    costs)
                    Increased Competition
                    & Competitiveness
                    Fundamental Fairness
                    (investment returns)
                    Innovation
IS VOIP A TELECOM SERVICE, OR AN
INTERNET SERVICE?


            If it is a telecommunications
            service, then only telephone
            companies can offer VOIP to the
            public.



            If it is an internet or value-added
            service, then anyone can offer
            VOIP to the public.
Should the NTC issue
rules for VOIP?

EFFECTS OF NO RULES:
•Discourages investment in
VoIP
•Dampens innovation in ICT
•High long distance costs

BUT: No rules is better than
bad rules!
How VoIP can be deployed has always been
framed in the context of one legal question.


                 If it is a telecommunications
                 service, then only telephone
                 companies can offer VOIP to the
                 public.

                 If it is an internet or value-added
                 service, then anyone can offer
                 VOIP to the public.
Is VoIP a Telecommunications
Service?

       Argument for YES: VoIP is a voice
       service. The voice at starting point is
       also the voice at the point of
       destination.
       Argument for NO: IP telephony is
       different from traditional PSTN
       telephony. IP makes possible a diverse
       range of data and voice applications,
       including VoIP. It is an enhancement.
Ruinous competition for Telcos?

 Huge investments have been made in the traditional PSTN
 network. This cannot be ignored.

 PSTN will not be replaced in one day. The main service
 method of VoIP still depends on PSTN for access.

 With IP, the business model will have
 to shift from quantity to quality, i.e.,
 from total call minutes to total
 available bandwidth.
The Outcome

 NTC ruled that VoIP is a value-added
 service, effectively opening the service up to
 competition.
 Within days, long distance rate offers started
 plummeting, in some cases, as much as 75%
 (from 40 cents/minute to 10 cents/minute).
BRIDGING THE DIGITAL DIVIDE
THE DIGITAL DIVIDE

 Refers to the gap between those with
 regular, effective access to digital
 technologies and those without.
 The presence of a digital divide, particularly
 between rural communities and urban
 centers, directly affects the ability of SMEs to
 reach, and compete, in the larger markets.
Why bridge the digital divide?

 Internet access will enable SMEs and entrepreneurs to
 use email and VoIP to coordinate directly with buyers of
 local goods and products in the cities, effectively
 bypassing middlemen and earning a greater share of the
 revenues.
 Numerous websites allow local artisans to sell directly to
 the mature markets in the developed countries where
 their products are likely to fetch higher prices.
 The internet also helps to level the playing field for SMEs
 in remote areas by providing them with key information
 ideas on market prices, opportunities and trends.
Last Mile Initiative

 LMIP is working with the CICT, as well as
 with LGUs, NGOs and other interested
 persons/entities to:
  –   Design, develop, support, and/or set-up at least
      10 sustainable CeCs in rural and unserved areas.
  –   Identify and facilitate access to appropriate
      technologies, particularly VoIP and broadband.
  –   Document lessons learned, and best practices
      and models for broader replication.
Last Mile Initiative (Status)

 Over the past year, LMI assisted in the set-up and/or training of
 34 CeCs.
 Various promising models have been identified:
  –   E-Commerce
  –   Ecotourism
  –   Jobs
  –   Telehealth
  –   Out-of-school youth
  –   Education
The key word is Community

 The success of the CeC depends on the
 commitment and support of various
 stakeholders:
 –   Government
 –   School
 –   Students
 –   NGOs
 –   Private Sector
Catmon, Cebu. LMI provided a brand new server, 6-month DSL
connectivity and will provide VoIP solutions. World Corps and
private sector donors provided computers and basic training. The
local government provides rent-free facilities.
Catmon, Cebu. LMI provided a brand new server, 6-month DSL
connectivity and will provide VoIP solutions. World Corps and
private sector donors provided computers and basic training. The
local government provides rent-free facilities.
Manolo Fortich, Bukidnon. The congressman provided the
computers. The local government shouldered the initial costs of
broadband connectivity, as well as two facilities (school and town
hall). The telecom operator will provide VoIP solutions. LMI will bring
in private sector players (Microsoft, World Corps) to provide basic
training (trainors’ training, computer and internet literacy, as well as
teachers’ trainings)
Manolo Fortich, Bukidnon. The congressman provided the
computers. The local government shouldered the initial costs of
broadband connectivity, as well as two facilities (school and town
hall). The telecom operator will provide VoIP solutions. LMI will bring
in private sector players (Microsoft, World Corps) to provide basic
training (trainors’ training, computer and internet literacy, as well as
teachers’ trainings). CICT will provide e-government software.
SUSTAINABILITY:
It’s not just a matter of setting-up

 Multi-stakeholder support is important, but
 not enough.
 CeCs must be sustainable. I.e., it must
 provide services that the community is willing
 and able to pay for.
 Demand for use of CeC facilities must be
 increased.
Trainor’s trainings
• To provide the community with basic computer and
internet skills; and
• As a means of increasing demand for CeC facilities.




  Renren Mariano, a former out of school youth is trained to provide free
  computer/internet trainings to anyone who’s interested in Borbon, Cebu.
Identifying Useful Applications


                   Other Services:
                   •   Photocopying
                   •   Fax
                   •   Telephone
                   •   Research
E-Government Solutions




 The eLGU project of the CICT and its National Computer Center
 aims to enable local governments to integrate ICT in their operations
 for better public service

 • Real Property Tax Assessment and Billing
 • Business Permits and Licensing
Exploring Partnerships with Private
Sector Players

  Intel - Wimax trials in unserved areas
  RuralNet - Official CICT partner to provide fee-
  based government frontline services through
  rural banks
  Mozcom, SMART, Globe, SOTELCO, Linksys, etc.
  - Connectivity and VoIP solutions
  Microsoft - Unlimited Potential, and software
  grants
Challenges & Initial Lessons

 Setting up sustainable CeCs is possible.
  –   Awareness of internet possibilities is high, even in remote areas.
  –   People are willing to pay.


  BUT often, communities do need a little help or push:
  –   Connectivity – How? What are their options?
  –   Funding – often, small one-time costs are what causes delays
  –   Training assistance


 CeCs will provide benefits to poor and remote communities, but their
 poverty and remoteness still limits the potential of CeCs:
  –   Service providers (e.g. VoIP, e-commerce) are reluctant to provide services.
  –   Even with CeCs, the community is still a very small market.
Challenges & Initial Lessons

 AGGREGATION – A Major Challenge
  –   Would make it easier to sell the community and its programs and products.
  –   Would create a bigger market that service providers cannot ignore,
  –   Could make it easier for overseas citizens to contribute and participate.
  –   Will facilitate interaction between CeCs


 DOCUMENTATION AND SHARING
  –   Documentation and sharing of successes and failures, and of best practices must be
      systematized.
SOME POINTS TO REMEMBER

 CAPACITY BUILDING: Ease of access to the
 Internet is a fundamental aspect, but it is not
 the sole factor. Effective access also
 depends on ability to use ICT effectively, and
 on the quality of digital content that is
 available and can be provided.
 BROADBAND DEPLOYMENT: The
 availability of broadband connections affects
 SMEs’ decisions to adopt e-commerce.
POLICY OPTIONS FOR BRIDGING THE
DIGITAL DIVIDE

 Competition Policy
 Universal Access Fund and other related
 schemes
 CD-based applications
 Education & Training
PROTECTING THE CONSUMER
Consumer Concerns

 Consumer’s exposure to unfair marketing practices
 Insufficient information disclosure, for example,
 refund policies, cancellation terms, warranty
 information
 Contract terms, for example, their enforceability
 Merchandise and delivery practices, for example,
 failure to perform and lateness
Consumer Concerns (con’t.)

 Payment, for example, recovering fraudulent
 charges if credit card information falls into criminal
 hands
 Transaction confirmation and cancellation policies,
 for example, consumer’s lack of knowledge on
 cancellation rights for online transactions, including
 for mistakenly made purchases
 Fraud and deception, for example, lack means to
 authenticate merchandise purchased online.
 Unsafe products
Consumer Concerns (con’t.)

 Insecure payment methods
 Loss of personal privacy and protection of
 confidential data
 Risk misuse of personal information
 Other concerns including computer fraud, hacking,
 virus, interception and alteration of financial data,
 and misuse of personal information
Principles for Protection Consumers
Online

 Transparent and effective protection
 Fair Business, Advertising and Marketing Practices
 Online Disclosures
 Confirmation
 Process Payment
 Dispute Resolution
 Privacy
 Education and Awareness
BALANCING OF INTERESTS

 Marketing vs. Spamming
 Privacy vs. Online Transactions
 E-Commerce vs. Dispute Resolution
Public-Private Partnerships (PPP)

 To emphasize: Both the private sector
 and the public sector have crucial roles
 to play.
 The private sector leads, the
 government enables.
 It is important that both agree and are
 aware of their respective roles.
EARNING GLOBAL
  CONFIDENCE
Three key issues of global interest

 Privacy & Data Protection
 Intellectual Property Rights
 The Need for Cross Border Cooperation
Privacy & Data Protection

 Businesses need data to do business
  –   Name
  –   Age
  –   Addresses
  –   Sex
  –   Civil Status
  –   Social Security Numbers
  –   Credit Card Numbers
 Data allows businesses to provide better service
 Data enables e-transactions
Privacy & Data Protection – The
Flipside

 Identity Theft
 Fraud
 Loss of privacy

 Bottom line: There is therefore a need to strike a
 balance between privacy and the various needs to
 transmit personal data. Sform of legal protection of
 privacy is important for generating trust in e-
 commerce.
Why Privacy is important for small
businesses

 Developing countries who wish to participate
 in the global information economy, will
 increasingly need to consider laws that
 protect personal data.
 E.g. medical transcription, business process
 outsourcing
 EU Data Protection Directive
EU DATA PROTECTION DIRECTIVE


 Article 25 provides that member states must
 ensure that the transfer of personal data to
 non-E.U. countries takes place only if the
 non-E.U. country provides an adequate level
 of privacy protection.
OECD Guidelines on the Protection of Privacy and
Transborder Flows of Personal Data


  Collection Limitation Principle
  Data Quality Principle
  Purpose Specification Principle
  Use Limitation Principle
  Security Safeguards Principle
  Openness Principle
  Individual Participation Principle
  Accountability Principle
BALANCING OF INTERESTS – THE
CHALLENGE OF INTELLECTUAL
PROPERTY RIGHTS

 Developed countries vs. Developing
 Countries
 Copyright holders vs.
 Educators/Scientists/General Public
 Online Newspapers vs. Database
 producers/Information analysts
 SMEs
The Challenges Posed by New
Technologies

 Identifying authorship
 Identifying infringements
 Enforcement of rights
 When is use private?
 Public goals vs. private sector interests
 Integrity
 Cross border considerations
The Need for Cross Border Cooperation

 Privacy & Data Protection
 Cybercrime & Security
 Intellectual Property Rights
CASE STUDY: ONE INTERNET, MANY
COPYRIGHTS

 PROJECT GUTENBERG is a volunteer effort
 to put the world's literature online.
 Early in 2004, the Australian affiliate of
 Project Gutenberg posted the 1936 novel
 "Gone With the Wind" by Margaret Mitchell
 on its Web site for downloading at no charge.
 In Australia, as in a handful of other places,
 the book was free of copyright restrictions in
 1999, 50 years after Mitchell's death.
The Need for Cross Border Cooperation
– CASE STUDY: COPYRIGHT

 PROBLEM: In the United States, under an
 extension of copyright law, "Gone With the
 Wind'' will not enter the public domain until
 2031, 95 years after its original publication.
 So, after an email threat from the estate of
 Margaret Mitchell, “Gone with the Wind” was
 pulled from the website.
The Need for Cross Border Cooperation
– CASE STUDY: COPYRIGHT

 This is not an isolated incident. It is just the
 start: Elvis and Beatles songs are set to
 enter the public domain in Europe by the
 2010s. In the US, not until the 2050s.
 This is one more example of the Internet's
 inherent lack of respect for national borders,
 and the need for international cooperation.
THE END
YOUR ASSIGNMENT

 1 SUGGESTION FOR IMPROVEMENT FOR
 EACH OF THE MODULES
 1 POLICY QUESTION TO THINK ABOUT
 FOR EACH OF THE MODULES

				
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