Transcript Document

Building the Regulatory
Foundations for Development in
Network Economies
Professor William H. Melody
Managing Director
LIRNE.NET www.lirne.net
First ICT Policy and Regulatory Workshop
COMESA
Nairobi, Kenya, 13 –16 August 2002
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 Societies
• Telecom Reform & Regulation – Key Driver for
Implementing Policy Reforms
Finance/
Banking
Regional
Development
Travel & Tourism
Manufacturing
Health/Medical
Government Services
Content
Broadcast
Media
Film
Libraries
Software
etc
Disaster Management
Media & Cultural Sectors
Education/Training
Applications
Electronic Services
(Pay TV, VAS, Internet)
Multimedia, etc.
(Public, User group, Private)
Telecommunication
Facilities Network
(Information Superhighway)
Computing / Information
Technology
Interactivity
(Instant & Delayed)
Voice
Data
Sound
Graphics
Video
Telecommunication
Equipment Manufacturing
INFORMATION INFRASTRUCTURE
The telecom sector value chain
Equipment
Supply
Competitive
Markets
Telecom
Infrastructure
Monopoly/duopoly/oligopoly
Telecom
Equipment
Computer
Hardware
Software
Consumer
Electronics
Service
Development
Competitive
Markets
Internet
PTOs
VAS
Databases
Network
Management
The Dimensions of Convergence on the Information Infrastructure
Convergence Sectors
Computing
Content
Telecom
Drivers of Convergence
•Technology
• Industry-Supply
• Market-Demand
• Policies/Regulation
•Industry Specific
•Convergent
Applications
• Finance
• Commerce
• Education
• Health
• Publishing
• Manufacturing
• etc.
Criteria for Economic Growth
Technologies
Markets
Applications
Services
Regulations
Policies
Regulation: Catalyst for, or Constraint upon Growth?
Progress with Telecom Reform
• Now more than 110 Countries with Separate
Telecom Regulatory Authorities
• WTO Commitments to Liberalization
• Industry Specific Focus of Reforms
• Successes, Failures, Unanticipated
Difficulties, Continuing Delays
• Regulatory Reform is Proceeding at a Slower
Pace than Technology Development or
Market and Service Potential
Progress with Telecom Reform
• Regulation is the limiting factor constraining growth
• It is not a simple matter of removing regulations or
eliminating regulators
• Sound regulatory foundations are needed to attract
investment, foster applications of new technologies
and development of new services.
• The speed of regulatory reforms must increase and
they must be directed to providing a foundation for
Network Economies
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
Project Initiator:
• infoDev (World Bank)
Foundation Partners:
• infoDev
• LIRNE.NET Universities (TU Delft; TU Denmark)
• ITU Telecommunication Development Bureau
(BDT)
• Ford Foundation and US SSRC
• Others
World Dialogue on Regulation
for Network Economies
Core Tasks:
• Dialogue on Interactive Web Site,
www.regulateonline.org
• Country Case Studies & Research
Reports
• Forum Discussions among Experts
• Wide Dissemination in Print & Electronic
Form
World Dialogue on Regulation
for Network Economies
Dialogue Theme 2001-2002:
• The Next Step in Telecom Reform:
ICT Convergence Regulation or
Multi-sector Utility Regulation ?
World Dialogue Theme 2001-02
ICT Convergence
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digitalization of the network
mobility
next generation Internet
e-commerce
media integration
restructuring of industries
World Dialogue Theme 2001-02
ICT Convergence Regulation
• access to communication channels and
access to content
• new issues of competition and monopoly
• privacy, security, IPR
• reducing digital divides?
• can content regulation be avoided ?
• the most effective role for national telecom
regulators ?
World Dialogue Theme 2001-02
Multi-sector Utilities
• mergers across utilities
• telecom, cable TV, electricity, gas, water,
transport
• rights of way, duct sharing & co-location
• universal billing
• common management skills
World Dialogue Theme 2001-02
Multi-sector Utility Regulation
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to match the operators
efficiency across common functions
wider application of limited skills
independence from dominant firms?
technological convergence – power line
communication
• other?
World Dialogue Theme 2001-02
The Next Step in Telecom Reform ?
• Defining and Implementing Regulation to
Facilitate Growth in Network Economies
• Establishing the Options, Priorities and
Boundaries of Regulation
• Shaping the Most Effective Role for
Competition
• Determining a New Role for Regional
Regulation
World Dialogue Theme 2001-02
The Next Step in Telecom Reform?
• The Challenge: Creating regulation that leads
rather than lags technology and market
developments, providing a catalyst for growth
in network economies?
World Dialogue on Regulation for
Network Economies
• Participate in the Dialogue; review and comment on the
research, www.regulateonline.org - from 3 January 2002
• For more information contact
Merete Henriksen, WDR Coordinator, [email protected]
Tel. + 45 4525 5178; Fax + 45 4596 3171
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), Technical University of
Denmark, www.cti.dtu.dk
• Economics of Infrastructures, Delft University of Technology,
Netherlands, www.ei.tbm.tudelft.nl/
William H. Melody
• BS, MS, PhD, D. Eng.(hon)
• Managing Director, LIRNE.NET
• Professor, Economics of Infrastructures, Delft
University of Technology, The Netherlands
• Guest Professor, Center for Tele-Information (CTI),
Technical University of Denmark
• Visiting Professor, London School of Economics,
United Kingdom
• Visiting Professor, LINK Centre, Wits University,
Johannesburg, South Africa
• Contact: email: [email protected]