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International Telecommunication Union
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Competitive Markets Required to Bridge Digital
Divide
Regulators map ‘Universal Access’ route to Information and
Communication Technology
Geneva, 9 December 2003 —
Telecommunication regulators from around the world delivered a powerful message
to world leaders convening in Geneva for the World Summit on the Information
Society (WSIS). The regulators identified a series of steps nations can take to
bridge the digital divide. They called upon countries to open their information
and communications technology (ICT) sectors to greater competition. They further
identified the kinds of regulations and practices needed to promote universal
access to ICT services.
The regulators from more than 80 countries met in Geneva 8-9
December to participate in the 4th annual Global Symposium for Regulators (GSR)
hosted by the International Telecommunication Union (ITU). Participants included
international organizations such as the European Commission, the World Bank and
the World Trade Organization, as well as academic and non-governmental
organizations. Participants prepared a blueprint of what should be done to
ensure that global access to the tools of communication is extended to all of
humanity. The GSR Universal Access Best Practice Guidelines will be delivered to
the first World Summit on the Information Society in Geneva 10—12 December.
"Bridging the digital divide can be achieved," said
Hamadoun I. Touré, Director of ITU’s Telecommunication Development Bureau (BDT).
"Developing countries have all the tools at their disposal now to make the
universal access dream a reality," the BDT Director added. "The
measures identified by the world’s regulators are entirely feasible. But they
need the full support of governments at the highest level. I have no doubt that
this support will come from the heads of state and governments participating in
the World Summit on the Information Society."
Ms. Muna Nijem, Chairman of the Board and Chief Executive
Officer of the Telecommunications Regulatory Commission (TRC) of Jordan, and
also Chairperson of the 2003 GSR, added, "The central focus of our GSR
meeting is Universal Service and Universal Access. A modern vision that we
intend to articulate is the key role broadband deployment can play in meeting
the Universal Service/Access goals. Here, we cannot stress enough the need for
the proper enabling environment, which includes the establishment of an
independent regulator and the recognition of the key role that the regulator
plays in the implementation of Universal Service/Access policies. Our goal is
that this enabling environment will allow the private sector to exploit new
profitable opportunities to offer services that expand Universal Service/Access
in ways that eliminate the need for government subsidies."
The GSR agreed on a list of best practice regulatory
guidelines for achieving universal access. The guidelines call for support for
regulatory reform at the highest level of government. This means treating ICTs
as a tool for development rather than a source of government revenue.
Some of the key measures backed by national regulatory
authorities include technologically neutral licenses (authorizations to provide
services that do not distinguish on the basis of technology used, e.g., fixed
line or mobile cellular) that enable service providers to use the most
cost-effective technology to provide services, and reducing regulatory burdens
to lower the costs of providing services.
The regulators agreed that the lessons learned from developing
countries’ initial experiences with mobile cellular services should now be
applied to a broader range of ICT services to foster universal access.
These lessons include providing services in a competitive
framework, using new technologies that offer both innovative services and
affordable pricing options (e.g., pay as you go options such as prepaid cards)
to a wide range of end users.
Regulators gave the nod to innovative, low-cost technologies
that will achieve long-term financial self-sustainability, greater use of public
access options that respond to the needs of local users, and the promotion of
government measures such as tax incentives, reduced customs tariffs and national
manufacturing of ICT equipment. The blueprint identified by regulators would
lead to greater competition, more open markets, and spark investment.
The measures also recognize that further steps may be needed
to achieve ubiquitous access to ICTs, for example, in rural areas or to users
with special needs. Universal service funds are one option that complements
regulatory reform when developed as a mechanism within a broader market-oriented
approach to achieving universal access.
Mr. Ernest Ndukwe, Chief Executive Officer of the Nigerian
Communications Commission, said that his country has witnessed "a
remarkable rise in the use of ICT services following the introduction of
competition. The number of telephone lines has grown by over 500% within two
years of opening our market to competition," Mr Ndukwe said. "This
could only have been achieved through regulatory reform."
"India has been adding about 2 million new mobile ICT
users a month this year, 5 times last year’s figure and 12 times of the 7 year’s
average," Mr. Pradip Baijal, Chairman, Telecom Regulatory Authority of
India, said in backing the GSR Universal Access Best Practice Guidelines.
"The tariffs have come down to half of the previous year’s levels and
correspondingly the growth in mobiles is 12 times the earlier year’s average.
We hope to build on this success by unifying the entire license regime and
converting it into an automatic license based on published guidelines and
relying on accepted regulatory principles" said India’s Chief Regulator.
"As you know TRAI’s proposals in this regard has been given the green
light by the Cabinet. We expect even more market growth once the entire Unified
Licensing Regime is implemented", he predicted, adding that the TRAI is
working to further reduce the regulatory burden, remove the differences between
fixed and mobile services (already blurred on account of technological
developments) and continue aggressive competition between operators.
Mr. Luiz Guilherme Schymura de Oliveira, President of Anatel,
said that, "Brazil has achieved great success in expanding ICTs to its
citizens by first identifying national universal service objectives that include
both private and public ICT access. Brazilian Universal Obligations have
provided individual connections to all villages with more than 600 inhabitants,
and public telephones to all villages with more than 300 inhabitants. In
addition, Brazil has also established a Universal Service Fund which is going to
be used in providing broadband connections for public schools by the end of next
year."
FCC Commissioner Ms. Kathleen Abernathy emphasized that the
goal of universal access is "to ensure that consumers have a choice of
innovative telecommunications services at affordable prices." Ms. Abernathy
advances this goal by "having faith in the market; ensuring transparency by
adopting clear rules that are vigorously enforced and educating consumers about
regulations so they can make intelligent choices."
For more information please contact:
Ms Susan Schorr
ITU Regulatory Officer
Tel: +41 22 730 5638
Email: susan.schorr@itu.int
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