Transcript Document

Convergence, ICT Sector Development and
New Information Economies:
Challenges for Policy and Regulation
Professor William H. Melody
Managing 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
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
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
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
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
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•
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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
Affecting Sector Investment
Supply
Telecom/ICT
Sector
Services
Demand/
Need
Intermediaries
Regulation
Facilities
End Users
Public Resources
Applications
Policy
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
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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