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- I: Policies & Regulations in I+CT -
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International
7. ICT Infrastructure and Access
Telecommunica
tion
Union
UNESCAP/ITU Regional Training Workshop on
Enabling Policies and Regulatory Frameworks for
Information and Communication Technology (ICT)
Development in the Asia–
Asia–Pacific Region
May 5, 2004
Bangkok, Thailand
Dr. EunEun-Ju Kim
ITU
euneun-ju.kim@itu.int
Overall Structure of
Training
1300H
¾
¾
¾
¾
¾
– 1430H, Regulatory Frameworks II:
Scarce Resources (e.g., Spectrum, Numbering, etc)
Interconnection
Universal Service and Its Funds
Costing & Pricing
Others through converged ICT
Policies
Policies &
& Regulations
Regulations of
of ICT:
ICT:
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1030H – 12:00H, Regulatory Frameworks I:
¾
Independence of Regulator
¾
Competition Safeguard
¾
Licensing and its Criteria
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0830H – 10:00H, Policies & Regulations in ICT:
¾
Current Status and Challenges – Development of ICT
Infrastructure and Access
¾
Evolving Policies and Regulations in ICT driven by
Technological Development and Convergence
Agenda
1.
1. Current
CurrentStatus
Status and
andChallenges:
Challenges:
Development
Development of
of ICT
ICT Infrastructure
Infrastructureand
and Access
Access
2.
2. Evolving
Evolving Policies
Policiesand
and Regulations
Regulationsof
of ICT
ICT
driven
driven by
by Technological
TechnologicalDevelopment
Development
and
and Convergence
Convergence
1500H – 16:30H, Good Practices & Lessons of Countries
in Asia and Pacific Region – Analysis of survey
1
Telecommunications = ‘ICT’ already ?
-
Technologies
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‘Any transmission, emission or
reception of signs, signals,
writing, images and sounds or
intelligence of any nature by wire,
radio, optical or other
electromagnetic systems’
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Telecommunication:
ICT* = Converged Technologies
?
Legislations
Telecommunications
INTERNET
IT=Computer
Broadcasting
Extract from Annex to ITU Constitution
i.e., Telecommunication is already broad enough
to integrate‘Internet’: Internet is part of
evolving technologies of telecommunications.
Why ICT Is So Important, Today ?
Policies
Administrations
What is ‘access’ ?
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9Beauty of ICT is various
applications and
opportunities for “socioeconomic development”.
9But, such various ICT
applications and
opportunities won’t be able
to be achieved without
reliable and affordable ICT
infrastructure – I.e., access
to the ICT.
Regulations
Access to ICT means the making
available of facilities/and or services, to
another undertaking, under defined
conditions, on either an exclusive or
non-exclusive basis, for the purpose of
providing electronic communications
services. It covers, inter alia;
• Access to network elements and associated
facilities and services,
• Access to physical infrastructure, software
systems
• Access to number translation systems,
• Access to mobile networks, for roaming
• Access to conditional access systems for
digital television services &
• Access to Internet
2
Basic Indicators
Status of
ICT Infrastructure and Access
India
Bhutan
Sri Lanka
China
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Vietnam
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Nepal
Bangladesh
242
357
430
474
734
873
942
Philippines
984
Kazakhstan
1473
Thailand
2065
Malaysia
3971
Korea (Rep)
10188
0
2000
4000
6000
8000
10000
12000
GDP per capita (US$) in 2002
{Source: ITU World Telecommunication Indicators, 2003}
Telephone - Waiting List
Main Telephone Lines
0.51
Bhutan
Sri Lanka
Vietnam
Philippines
3.98
Vietnam
4.17
Malaysia
4.66
Kazakhstan
4.84
Thailand
Korea (Rep.)
20
30
40
50
Main telephone lines per 100 inhabitants in 2002
{Source: ITU World Telecommunication Indicators, 2003}
710.2
1648.8
India
48.86
10
317.3
Thailand
19.04
0
257.7
Nepal
16.69
Malaysia
168.3
Sri Lanka
13.04
China
65.9
199.1
Bangladesh
10.50
Kazakhstan
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Philippines
Korea (Rep.)
2.84
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India
China
1.41
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Nepal
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Bangladesh
60
0
200
400
600
800
1000
1200
1400
1600
1800
Waiting list for telephone lines in (000s) 2002
{Source: ITU World Telecommunication Indicators, 2003}
3
Mobile Cellular Subscribers
Telephone Tariffs
Nepal
India
Vietnam
0.01
Vietnam
Sri Lanka
0.02
Kazakhstan
0.02
China
Bangladesh
0.03
Philippines
Korea (Rep.)
0.03
Thailand
Malaysia
0.03
Malaysia
0.07
Thailand
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.81
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India
0.09
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Nepal
Bangladesh
1.22
2.34
4.92
6.43
16.09
19.13
26.04
37.68
67.95
Korea (Rep.)
0.08
0
10
Local call (US$) in 2002
0.37
Nepal
Kazakhstan
0.98
India
1.32
China
Philippines
2.77
Vietnam
3.98
Thailand
14.68
55.58
10
20
1.06
1.57
1.59
1.85
Philippines
4.40
China
4.60
7.76
Malaysia
Korea (Rep.)
0
30
40
80
0.15
Thailand
Malaysia
70
0.34
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Sri Lanka
0.72
2.76
60
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Bangladesh
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Sri Lanka
50
Internet
0.34
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India
Vietnam
40
{Source: ITU World Telecommunication Indicators, 2003}
Estimated Personal Computers
Nepal
30
Mobile cellular subscribers per 100 inhabitants in 2002
{Source: ITU World Telecommunication Indicators, 2003}
Bangladesh
20
50
Estimated PCs per 100 inhabitants In 2002
{Source: ITU World Telecommunication Indicators, 2003}
60
31.97
55.19
Korea (Rep.)
0
10
20
30
40
50
60
Internet users per 100 inhabitants in 2002
{Source: ITU World Telecommunication Indicators, 2003}
4
Mobile Internet
Broadband Subscribers
Thailand
Vietnam
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Nepal
Sri Lanka
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Bangladesh
Kazakhstan
0.1
0.3
0.7
Malaysia
2.3
India
4.5
China
Philippines
15.6
96.5
Korea (Rep.)
0
20
40
60
80
100
120
As % of total subscribers in 2002
{Source: ITU World Telecommunication Indicators, 2003}
{Source: ITU World Telecommunication Indicators, 2003}
Pay TV - Cable TV Subscribers
Thailand
Philippines
Kazakhstan
Korea (Rep.)
0.7
5.2
Nepal
Vietnam
24.1
31.1
China
45.9
Bangladesh
56.5
Nepal
Korea (Rep.)
66.0
India
10.0
20.0
30.0
40.0
50.0
Bangladesh
0.0
Sri Lanka
0.0
0.2
Philippines
62.5
0.0
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Sri Lanka
India
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Vietnam
China
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Malaysia
Pay TV - Home Satellite Antennas
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Kazakhstan
60.0
As % of TV households in 2002
{Source: ITU World Telecommunication Indicators, 2003}
70.0
Thailand
2.1
21.9
Malaysia
0
5
10
15
20
25
As % of TV households in 2002
{Source: ITU World Telecommunication Indicators, 2003}
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Digital Divide in Asia & Pacific
International communications capacity, Gbit/s, ASP
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Internet
Telephone
Bangladesh
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50
65
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60
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70
Combined density between haves & have-nots in Asia & Pacific, 2001
Lao
Nepal
Solomon Islands
Fixed
Cambodia
Mobile
Average
40
30
20
10
8
0
11
9
14
16
18
23
20
HK,China
0
0
0
0
0
1993
1994
1995
0.1
1996
2
3
1997
1998
2000
Top 6. DS L
Broadband Ethernet LANs 1. K orea (Rep.)
in Apartment Buildings
2. Hongkong China
Cable M odem
3. Canada
4. Taiwan, China
DSL
5. Iceland
6. Sweden
Top 6. Cable M odem
1. K orea (Rep.)
2. Canada
3. Netherlands
4. United States
5. Austria
6. Belgium
Telecom expenditure of countries in Asia & the Pacific,
(2001-2002)
Australi a
Hong Kong
India
South Korea
Malaysia
Philippines
4
China
2
Singapore
Taiwan
K
or
ea
o n Can
g k ad
on a
g
Ch
in
a
Un Sw
it e ed e
d
Ta S n
iw tat
an es
,C
h in
Ne
th
a
er
la
nd
s
Au
s
Sin tr ia
ga
po
Be re
lg
De iu m
nm
ar
k
Ic
el
a
G nd
er
m
an
y
S w J ap a
it z n
er
lan
Es d
to
nia
F in
lan
d
Fr
an
A ce
us
t ra
P o l ia
rtu
ga
No l
rw
ay
Sp
N
ew
ain
Ze
ala
nd
Un
it e
d Ita ly
K
in
gd
om
0
200
Thai
H
per 100 inhabitants, June 2001
6
150
‘Access with quality’ vs. ‘investments’
TELECOMMUNICATIO
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8
100
2001
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10
50
{Source: Various ITU Publications}
1999
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12
Singapore
Taiwan,China
8
1992
Fixed Wireless
14
Japan
31
30
26
Not just service but ‘facilities’ for access
16
Internet
Korea(Rep.)
* S.Korea reached its penetration rate of 20% in 2003
-60 -50 -40 -30 -20 -10
0
10
20
30
40
50
60
{Source: Asia Pacific Development, 2002}
6
Paradigm shift To digital economy
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Shift
Shiftfrom
from
•• Agricultural
Agricultural
and/or
and/orIndustrial
Industrial
society;
society;
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Policies & Regulations in
ICT:
Tools for Improving ICT
Infrastructure & Access
to
to
•• Centralized
Centralizedcontrol
control
or
orregulation
regulationfrom
from
regulators/
regulators/
monopolies
monopoliesin
in
telecom;
telecom;
•• Significant
Significantmarket
market
powers
powersof
of
incumbent,
incumbent,
conglomerates
conglomerates&&
MNCs.
MNCs.
•• Information
Informationsociety
societywith
withaa
knowledge-driven
knowledge-drivendigital
digitaleconomy;
economy;
•• Deregulated
Deregulatedor
orprivatized
privatized
telecom;
telecom;&&
Industry-led
self-regulation
Industry-led self-regulation&&
power
powerof
ofindividual
individualconsumers;
consumers;
•• Micro,
Micro,small
small&&medium-sized
medium-sized
entrepreneurs
esp.in
inthe
theera
eraof
of
entrepreneursesp.
eBusiness
eBusinessor
oreCommerce
eCommerce;;&&
ICT
As the foundation and tool for the all
Trends of changing & evolving policies
Mobile:
– Regulated
– Dupoly/Multipl
e
¾ IT Sector:
– Un-regulated
– Multiple
TO
¾ Getting
regulated with
‘hard’ laws
BROADCASTING
Evolution over decades
Till 1980s Right to communication
POLICIES
Broadcasting Policy
1990s
onwards
LEGISLATIONS Till 1980s Broadcasting Act
COMPUTER/IT
TELECOMS
Not particular
Not particular
IT Policy
Telecom Policy
ICT Policy
None or under Commerce Telecommunication Act
Laws
Regular revision of RA
IT Act
Revision of TA
1990s
onwards
Spam Act, Convergence Bill, Communications and Multimedia Act etc.
State-owned or monopoly;
REGULATIONS Till 1980s Public-oriented; Regulation Market-led competition;
(e.g., censor, contents,
Regulation
'Hard' & 'Soft'
channel etc.)
1990s
More towards monitoring to Emerging demands for Public or private owned;
onwards protect public interest
regulation to ensure De-regulation with more
security & confidence
detailed regulatory tools
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– Regulated
– Monopoly
¾ De-Regulated,
liberalized,
privatized, or
re-regulated
with more
detailed, but
‘soft’
regulatory
frameworks
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¾ Telecom
Sector:
Fixed:
Different patch of policies, laws &
regulations in ICT Sectors
7
Liberal
. Policy vs. ICT Growth
Why liberal policies ?
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FOR
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Efficiency
Competitiveness
&
Accessbility
Affordability
¾ Industries
- Operators
- HW & SW
companies
&
¾ Consumers
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9 Most operators have been separated
from the ministries.;
9 Many underwent sectoral reforms or
restructuring by separating regulators
from policy-makers: e.g., over 110
worldwide and 17 in Asia-Pacific
(recently Nepal, Bangladesh &
Maldives).
9 Influenced by convergence of ICTs,
some moved further towards multisectoral or converged ministries (e.g.,
Korea, China, Australia, India,
Thailand, Nepal etc.) and/or regulators
(e.g., Singapore, Malaysia, Bhutan,
Mongolia etc.).
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e.g.,
Liberal Policy: Leading to Sectoral
Reform
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Liberal policy with
more detailed regulatory frameworks !
• Competition for a choice of services &
suppliers as well as for competitive – if
not, affordable - prices;
• Universal Service Obligation & its funds from
the incumbents &/or various operators
for access to even rural & underprivileged
groups;
• Pricing & Rebalancing to reduce/update
tariffs for affordability; etc.
because of
correlation between ‘policy/regulation’ & ‘access’
• Telecommunication sector, traditionally both
regulated and operated by the government
and/or state-owned monopoly, has been
transforming
towards
deregulation,
‘progressive’ liberalization or privatization;
• Liberalization with ‘competition’ especially in
mobile services led them to outnumber fixed
line services in both developed and developing
countries (e.g., Cambodia);
• Internet capacity, developed at liberal markets,
exceeded international telephone circuit
capacity in 2000.
¾ Thus, yes, liberal policy led to growth in the
telecom sector …. But !
8
Current status of sectoral reengineering
•
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Fixed Mobile
M
C
C
C
C
C
C
C
P
P
M
P
C
C
P
C
M
C
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Country Policy Maker Regulator Incumbent
Bangladesh
MPT
BTRC
BBTB
China
MII
MII
CT
India
MCIT
TRAI
BSNL
Korea (Rep.)
MIC
KCC/MIC
KT
Malaysia
MEWC
MCMC
TM
Nepal
MOICT
NTA
NT
Philippines
DOTC
NTC
several
Sri Lanka
MPT
TRC
ST
Thailand
MOICT
TOT,CAT
Major Regulatory Frameworks (1)
•
•
{Source: ITU (2002), Internet for a Mobile Generation; Trends in
Telecommunication Reform; & Global Directory}
Licensing carriers or service providers
for different types of licenses, but ideally
on ‘technology-neutral’, subject to
availability of scarce resources (e.g.,
radio spectrum);
Pricing services through
various
mechanisms ranging from price-cap, rate
of return, to rebalancing of tariffs in
accordance with maturity of markets or
industries;
Quality of Services through setting its
criteria and monitoring them;
C=competition; M=monopoly; P=partial C.
Regulatory Principles
in The Reference Paper*
Major Regulatory Frameworks (2)
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• Ensuring interconnection among different fixed &
mobile carriers’ networks on a fair, open,
transparent,
and
non-discriminatory
base
through setting the financial, administrative and
technical terms;
• Managing radio spectrum for maximizing its
limited resources with coordination
with
neighboring countries and regions to avoid any
harmful interference;
• Ensuring competition
to
provide
various
operators with level playing grounds or nondiscriminatory bases through removing entry
barriers to new entrants inter alia;
• Universal Service or Access to ensure that, as far
as possible, no geographic area or social group
(including people with disabilities and in needs) is
deprived of access to telecoms service on
reasonable terms; and so on ….
The RPs
are not just
limited to
Telecom sector
but applicable to
IT, now ICT
sectors
1.
2.
3.
4.
5.
WTO
Competition safeguards or prevention of
anti-competitive behavior;
Interconnection guarantee and charges
transparent or public availability of
licensing criteria;
Independence of regulators from
operators;
Fair allocation and use of scarce
resources (e.g., frequencies, numbers,
rights of way etc.); and
Universal service
*RP ….. now adopted by 72 governments
9
9
9
9
9
9
9
Having ICT Policy itself is no use ,
unless ensuring & implementing: e.g.,
Other Prerequisites for improving
ICT
¾ Mechanisms to raise capital or funds (e.g., USO Funds),
¾ Development of infrastructure (e.g., electricity, road,
transportation),
¾ Payment mechanisms (e.g., banking, exchange with goods
etc.),
¾ Education and training for human resources
¾ Socio-cultural awareness (e.g. for poverty eradication,
equality of genders, access from the underprivileged
groups including the disabled),
¾ Economic empowerment (e.g., for new business and
employment opportunities),
¾ Local languages and contents (e.g., multi-lingual software,
local contents),
¾ Technical and legal measures for security and confidence
(e.g., standards, cyber laws),
¾ Research, development, transfer, and implementation of
new technologies
¾ Political wills with transparency and commitment, &
¾ Stable social, economic and political environment.
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borderless ICT era.
It will benefit for any parties,
should regulators’ activities be
publicly available and transparent
through announcing and updating
their
ordinances,
orders,
directions,
determinations,
licensing conditions and criteria,
the list of licensees, performance
pledge and so forth in their
annual reports, newsletters, or
even Internet Homepages.
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• GOVERNANCE: Policy-makers & Regulators
– Policy & regulatory tools with political wills
at national levels
• MANAGEMENT: Industries
– Operators/suppliers with their own interests
or as an obligation of universal service
– Various SMEs with more creative
entrepreneurship
• SOCIAL ACTION: Communities + Civil society
– Various initiatives like telecenters
• Users/Consumers protected
– To demand & monitor for ICTs at affordable
prices with choices and quality of services
• International & Regional Rules harmonized
– To deal with trans-border issues esp.
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with certain deadline (e.g., 30 days after
application), if not one-stop licensing;
Public Consultative Documents to resolve
problems, issues and complaints;
Public Hearings to hear various voices;
Structured Consultative Proceedings based on the
submission of written comments by interest groups;
Use of Analytic Findings by interested/consumer
groups;
Reply Comments by interest/consumer groups;
Advice from various forums or advisory committees;
Analytical researches by regulator’s own staff or
contractors on specific issues; and so forth
Why Public Availability ?
-------- For TRANSPARENCY !!!
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Streamlined regulatory Processes:
Public availability, transparency, &
efficiency
9 Streamlined regulatory processes – esp. licensing –
10
.
Conclusion
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• Policies can be a critical facilitator – I.e.,
‘means’ or ‘safeguard’ - rather than
‘goal’ or ‘burden’ for healthy
development of ICT infrastructure and
access;
• Regulatory Frameworks can be critical
means of not only market entries in
liberalized markets but also developing
ICT infrastructure & applications
How to use the means successfully is
subject to each country’s circumstances:
esp., political will and stability
And skills with expertise.
Dr. Eun-Ju Kim
ITU Regional Office
89/2 Chaengwattana Road
Laksi, Bangkok 10210
Thailand
Tel: +66 2574 8565
Fax: +66 2 574 9328
E-mail: eun-ju.kim@itu.int
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