Transcript Document

Broadband Development
in Ireland
Professor William H. Melody
Managing Director, LIRNE.NET
Center for Tele-Information
Technical University of Denmark
[email protected], www.lirne.net
Presentation to
Joint Oireachtas Committee on Communications,
Marine and Natural Resources
ICT sub-Committee
8 July 2003, Dublin
Characteristics of 21st Century
Economies
• Driven by the services sectors
• Founded on information/communication
networks – Internet; e-economy
• Dependent on effective reforms in the
telecom sector – broadband 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 – Applications Everywhere
• 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
(Broadband Superhighway)
Computing / Information
Technology
Interactivity
(Instant & Delayed)
Voice
Data
Sound
Graphics
Video
Telecommunication
Equipment Manufacturing
ICT INFRASTRUCTURE for the Eeconomy
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
• Industry Sectors - Equipment, Operator
Networks, Services
• Fixed and Mobile
• Basic Network Layers
*Raw Facility Capacity
*Network OSS & Management
*Communication Services
*Content
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.
Ireland´s Convergence Contradiction
• The IT Celtic Tiger of Europe – EU Leader
* most benefits to the IT sector
• Telecom Reform & Broadband
Development
- Slow, EU Follower
* delayed benefits to economy & society
• Why?
Key Elements of Telecom Reform
• Establish an Independent Telecom
Regulator - Comreg
• Privatise the Incumbent Telecom Operator
- eircom
• Introduce Effective Competition to the
Incumbent Operator
• Minimise Barriers to Participation of New
ICT Network Services Suppliers
Ireland’s Progress in Telecom
Reform
• Delayed start (1996) compared to EU (1987),
and especially the European Leaders
• Difficulties in working through some of the
major required institutional changes
• Uneven performance – slow Internet and
broadband development; but now a leader in
mobile (80% penetration) despite relatively
high prices
Ireland’s EU Status in Implementing
Telecom Reforms - I
• Independent Regulation established and
functioning effectively as a member of the
European Regulator´s Group
• Full privatisation process for eircom not yet
complete
• Surplus eircom employment problem not yet
solved
• Only limited competition has developed so far
Ireland’s EU Status in Implementing
Telecom Reforms - II
• Limited development of wholesale markets
for network services – which restricts
opportunities for new services development
• Relatively high prices for most network
services in EU country comparisons
• eircom actively resisting implementation of
EU and Ireland pro-competitive and proparticipatory policies
Speeding Up Broadband Network
Development in Ireland - I
• Ensure the regulator (Comreg) has the resources and
support to drive the telecom reform process forward
• Facilitate completion of the structural adjustments
required of eircom in its transition from a monopoly
protecting existing services to the leading player in a
competitive market developing new services
• Wherever possible, lower the barriers to participation in
new services development & applications
* This is especially important as network management
for new services in a broadband environment is
migrating to the edges of the network in leading
countries, i.e., away from centralised management by
telecom operators
Speeding Up Broadband Network
Development in Ireland - II
• Build the essential human capital –
support/establish multidisciplinary education,
training & research on ICT issues of supply,
demand, applications, policy & regulation
• Facilitate government institutions becoming
leading edge users applying international
best practices
• Enhance awareness and diffusion of best
practices among SMEs
Speeding Up Broadband Network
Development in Ireland - III
• Encourage experimentation in the development and
application of new network services. Successes are
rarely picked in advance
• Ensure there is sufficient spectrum allocated for
wireless applications. They are likely to be a
significant component of future broadband networks
• Be careful with direct government subsidies for
broadband network construction. Experience
suggests very limited benefits; it can create
uncertainty in capital markets and reduced private
investments. Steps to stimulate demand and
promote competitive conditions for supply are
generally more effective policy paths to follow.
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
• Media@lse, London School of Economics, UK
• Participate in the the World Dialogue on Regulation for
Network Economies; review and comment on the research,
www.regulateonline.org
• For more information contact
Merete Henriksen, WDR Coordinator, [email protected]
Tel. + 45 4525 5178; Fax + 45 4596 3171