by Pekka Tarjanne, Secretary-General of the ITU

Ladies and gentlemen,
Friends and colleagues,

I am delighted to be here this morning to welcome you to the second World Telecommunication Development Conference.

In two weeks’ time, when this event closes, we will have defined a pragmatic and concrete programme of action to speed up telecoms development in a more equitable and balanced way worldwide. But, already today, we can highlight the main issues and challenges ahead of us.

The strategic plan which the Conference is called to adopt will define future action needed in a range of key areas, such as financing, strategic partnerships, new technology options and the future impact of regulatory changes, such as the WTO agreement on Trade in Telecommunications. The objective is simple but daunting: providing universal access. I say "access", not "service". The difference is important. Whereas universal service implies the non-discriminatory provision of a nationwide network at an affordable price, "universal access" means that a telephone should be within a reasonable distance for everyone.

Despite dramatic improvements in many areas of the world, there remain unfortunately vast pockets of humankind without access to basic telecommunication services.

Let’s look at a few facts.

• 62% of all telephone lines are concentrated in 23 industrialized countries but serve only 15% of the world’s population
• 90% of households have access to telecommunications in developed nations against 16% in the rest of the world
• In developing countries, 60% of the population lives in rural areas but they enjoy only 20% of all telephone lines

But access is not only a North-South problem: it is one that affects most countries. Even in the most industrialized nations where a high level of household telephone penetration has been achieved several decades ago, segments of disadvantaged citizens remain without access. In the United States, for example, 6 million people have no telephone today!. In the developing world however, the situation is more dramatic: a majority of households and many communities simply do not have any form of access to telecommunications. Hard to believe that in most cases, this situation arises from a shortage of capital investment when the telecoms industry scored record-breaking profits in 1996.

But it is precisely because this industry is so profitable that we face a danger of complacency which could in the long-run undermine universal access. Universal access is also challenged as a result of liberalization which raises questions about traditional cross-subsidy that have served to extend the telephone service at an affordable price. When one considers that for a number of developing countries, revenue from the international service is the main source of foreign exchange for network expansion and that the GDP per capita would be insufficient to substitute for the loss of cross-subsidies, the urgency of seeking new ways can be readily appreciated.

But with the challenges come the opportunities. I personally believe that through a good dose of imagination and creativity, innovative approaches can be found not only to alleviate the adverse impact of the possible loss of revenue traditionally obtained through the international settlement system but to attract increased foreign capital investment and know-how that would turn the situation around.

Our goals for universal access are ambitious indeed. By 2010, we want to double the teledensity of the developing world and triple the household telephone penetration.

This will not only be the main focus of the World Conference that opens tomorrow but is the subject of a new report being launched here today, the 1998 World Telecommunication Development Report.

This report, the fourth in a series of highly successful industry analyses, has been prepared by the ITU’s Telecommunication Development Bureau (BDT) to examine progress made towards universal access to communications and the reasons for the stark disparities. It also reviews possible strategies, policies and technological solutions designed to improve such access.

A number of nations have recently implemented policies designed to enhance telephone access. Instead of focusing on bringing one telephone to every home, the new policies aim to bring one phone within a reasonable distance of home or work, by increasing access to payphones, public call offices or community telecentres. Pooling resources for community access provides a very positive cost-benefit ratio. Equipped with the latest information and communication technology and services – such as stand alone and networked computers, printers, faxes, telephones, photocopiers, and a number of new services, such as connections to the Internet and other public networks and databases, Multipurpose Community Telecentres as we call them provide a wide variety of information and communication services to a population that otherwise would not have access to these facilities; they offer much more than basic telephone services, granting the opportunity to train and educate a large number of people in the use of new information and communication technologies, while providing at the same time a practical use of the infrastructure. And due to the commercial nature of the venture and the intensive usage of equipment and networks, there is a fast return on investments. This attracts local entrepreneurs and foreign investors alike, kick-start local businesses and as a result raises the standard of living of these communities, which in turn, creates added demand for telecoms services.

Adequate regulatory policies such as privatizing, contracting out, introducing competition or liberalizing and strategies to exploit advances in technology which promise to make it easier and cheaper to provide service have all demonstrated positive results. By embracing these changes, several developing countries could see the revival of their entire economies and bring to an end the long-lived economic inequalities they have endured.

Telecommunications has the potential to provide a social and economic lifeline, and has the power to bring education and medical services to people in remote communities all over the world. ITU upholds the principle of universal access to basic communication and information services, or "right to communicate" in short. Arguably, it will be impossible to create an enabling environment for economic and social development, to provide employment and sustainable livelihoods, or access to social services for all without universal access to basic communication and information services.

But the argument for access to basic services goes beyond altruism. There is a high degree of self interest too for those of us who come from developed economies. In 1995, the lower income countries, with a level of GDP per capita of less than the price of a new PC, accounted for more than half of the total number of new telephone lines installed worldwide and a growing share of the new mobile phones and Internet connections. By contrast, the high income countries provided only a third of the world market for new telephone lines. The age profile of developing countries is also very much in their favour when it comes to the paradigm shift to a digital world. Furthermore, the emerging markets are not only customers for the network that will constitute the networked economy, but also for the electronic commerce that it will support.

Bringing the benefits of new technologies to all of the world's people is no doubt a daunting challenge but I personally believe that it can be met so that universal access becomes a reality.

And on this optimistic note, I will give the floor to Ahmed Laouyane, Director of the Telecommunication Development Bureau who would like to introduce the themes and stakes of the Malta Conference and share with you his insights on the significance of the 1998 World Telecommunication Development Report. One of the co-authors, Mike Minges, is also here with us this afternoon to present to you the main findings of the Report and to answer your questions. Copies of this report – which is essential reading for anyone involved in telecommunication – will be available immediately after this Press Conference.