Convergence, ICT Sector Development and New Information Economies: Challenges for Policy and...
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Transcript of Convergence, ICT Sector Development and New Information Economies: Challenges for Policy and...
Convergence, ICT Sector Development and New Information Economies:
Challenges for Policy and Regulation
Professor William H. MelodyManaging Director, LIRNE.NET
[email protected], www.lirne.net
Presentation to Workshop
Convergence of Media and ICT in Egypt: Challenges, Policies and Regulation
Cairo, 3 May 2006
Characteristics of 21st Century Economies
• Driven by the services sectors• Founded on information/communication
networks – next generation Internet• Dependent on effective reforms in the
telecom sector – information infrastructure• Strengthening links among local, national,
regional, internatonal networks and markets
Stages of Telecom/Information Sector Reform
• Telecom Liberalization (Participation, Univ. Access)
• Expanding Network Capacity (Broadband)
• Preparing the Network Foundation for New Services
• Developing New Services - “killer applications!”
• Applying Services Productively in Different Sectors
• Telecom Reform & Regulation – Key Driver for
Implementing Policy Reforms for the e-economy
INFORMATION INFRASTRUCTURE
Regional Development
Finance/ Banking
Disaster Management
Travel & Tourism ManufacturingMedia & Cultural Sectors
Health/Medical Government Services Education/Training
Applications
Electronic Services(Pay TV, VAS, Internet)
Multimedia, etc.(Public, User group, Private)
ContentBroadcast
MediaFilm
LibrariesSoftware
etc
Interactivity(Instant & Delayed)
VoiceData
SoundGraphics
VideoTelecommunication
Facilities Network(Information Superhighway)
Computing / Information Technology
Telecommunication Equipment Manufacturing
Equipment Supply
TelecomInfrastructure
ServiceDevelopment
Competitive Markets
Monopoly/duopoly/oligopoly Competitive Markets
Internet
VAS
Databases
NetworkManagement
TelecomEquipment
ComputerHardware
Software
ConsumerElectronics
PTOs
The telecom sector value chain
Significance of Network Unbundling for Convergence
• Industry Sectors - Equipment, Operator Networks, Services
• Fixed and Mobile
• Basic Network Layers
• *Content *Communication Services *Network Protocols, OSS & Management *Equipment & Facility Capability
Convergence Sectors Drivers of Convergence
•Technology
• Industry-Supply
• Market-Demand
• Policies/Regulation
•Industry Specific
•Convergent
Applications
• Finance
• Commerce
• Education
• Health
• Publishing
• Manufacturing
• etc.
Content
Telecom
Computing
The Dimensions of Convergence on the Information Infrastructure
Criteria for Economic Growth
Technologies
Policies
Markets
Applications Services
Regulations
Policy & Regulation: Catalyst for, or Constraint upon Growth?
Progress with Telecom Reform
• Now 130+ Countries with Separate Telecom Regulatory Authorities
• WTO Commitments to Liberalization• Industry Specific Focus of Reforms• Successes, Failures, Unanticipated
Difficulties, Continuing Delays• Policy and Regulatory Reform is
Proceeding at a Slower Pace than Technology Development or Market and Service Potential
Progress with Telecom Reform
• Regulation is often the limiting factor constraining growth
• It is not a simple matter of removing regulations or eliminating regulators. It is enhancing their competence and credibility.
• Sound regulatory foundations are needed to attract investment, foster applications of new technologies and development of new services.
• The speed of regulatory reforms needs to increase and be directed to providing a foundation for network-based e- Economies.
Information Infrastructure: Investment 1990s
• Mobile - licenses - operating; spectrum
- network development• Privatising telecom incumbents
- licenses – operating; IPO
- network development obligations• Competitive network operators
- fibre transmission
- city / business LANs
• Software, services and content (e.g., Internet)
Information Infrastructure: Investment Deficiencies 21st C
• Local - basic services access
- broadband access• Universal access - voice
- broadband• Internet - local services and content• Applications - e-economy; e-society
Policy, Regulation and Network Investment
• Licensing - paying for the privilege
• Annual Fees and charges
• Restrictions on investment opportunities
• Price and/or profit regulation
• Policy & regulatory risk
Unresolved Network Market Issues
• Public Resource Infrastructures for Telecom Networks - Rights of Way, Spectrum, Numbers, Names
• Interconnection• Termination Number Monopolies• Access Limitations in the Face of Positive
Externalities• Leverage Opportunities for Monopoly Nodes in the
Network• Achieving Faster Infrastructure Network Development
Elements of Policy and Regulatory Risk in Information Infrastructure
Development
• Credibility – regulatory independence from political intervention on substantive issues
• Credibility – Regulatory independence from incumbent monopoly power
• Transparent processes• Accountability for performance• Competence and skills• Commitment to implement policy objectives• Evident fairness
Shifting Policy/Regulatory Priorities to Stimulate Investment
• From supply of network facilities to stimulation of demand to justify investment
• From physical capital to human capital
- awareness, skill, capabilities
- applications by individuals & organisations• Diverse sources of private and public investment
- operators, service providers,
- intermediaries (e.g., Telecentres), user applications
Regulatory Relations Regulatory Relations Affecting Sector Affecting Sector
InvestmentInvestmentDemand/Need
Regulation
Policy
End Users
Services
Facilities
Supply Telecom/ICTSector
Intermediaries
Public Resources Applications
Demand/Need
Regulation
Policy
End Users
Services
Facilities
Supply Telecom/ICTSector
IntermediariesIntermediaries
Public Resources Applications
Next Generation Infrastructure (High Speed Access)
• Role of the Market• Digital Divide• Role of Government
*Promote Participation & Competition *Direct Regulation *Public Sector Applications *Public Investment - eg., Broadband
*Public/Private Partnerships• At What Level Should Gov’t Intervene?
Paths to Universal Access
• Voice - prepaid mobile• Internet, e-economy, e-society - fixed & wireless network extensions - new operators – energy, transport - radio and TV distribution networks - retail service suppliers, ISPs, VANS - greater role for intermediaries
Capacity – building for ICT Convergence Opportunities: Requires Investment in Human Capital
• Policy analysis & regulation
• Strategic analysis & management
• Innovation, experimentation & flexibility
• Demand-led diffusion of core skills
• Network linkages
Proactive Policy & Regulation for Implementing Convergence
Opportunities
• Create a favourable investment environment for physical & human capital
• Minimize barriers to participation• Facilitate demand as well as supply• Apply skills and strategic management to
achieve the spirit of the policy objectives• Can only be done if regulatory structure is
transparent and credible
World Dialogue on Regulation for Network Economies
Mission: • to facilitate an international dialogue that
generates and disseminates new knowledge• on frontier issues in regulation and
governance• to support the development of network
economies
World Dialogue on Regulation for Network Economies
Activities:
• Research on priority policy/regulation issues
• Dialogue – www.regulateonline.org
- e-brief
• Expert Forum Meetings
• Reports
World Dialogue on Regulation for Network Economies (WDR)
(available at www.regulateonline.org)
Reports• The Next Step in Telecom Reform:
ICT Convergence Regulation or Multi sector Utility Regulation ? (2003)
• Stimulating Investment in Network Development: Roles for Regulators (2005)
• Diversifying Participation in Network Development (forthcoming late 2006)
World Dialogue on Regulation for Network Economies:
Institutional Partners
• infoDev, World Bank • IDRC Canada• LIRNE.NET• Research Partner University Centres
around the world
World Dialogue on Regulation for Network Economies
• Participate in the Dialogue; review and comment on the research, www.regulateonline.org
LIRNE.NET, www.lirne.net • A Strategic Collaboration for applied research, training, policy
and regulation support, relating to information infrastructure and new network economy development
• Center for Tele-Information (CTI), TU Denmark• Economics of Infrastructures, TU Delft, Netherlands• LINK Centre, Wits University, South Africa• LIRNEasia, Colombo, Sri Lanka• LIRNEamericas, Montevideo, Uruguay• Media@lse, London School of Economics, UK