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Opinion A

The general implications of IP Telephony for the ITU Membership with respect to:

  1. the telecommunications policies and regulations of ITU Member States;
  2. the implications of IP Telephony for developing countries, particularly with respect to policies and regulatory frameworks, as well as technical and economic aspects;
  3. the impact of IP Telephony on the operations of Sector Members, notably in terms of the financial challenges and commercial opportunities it presents.

The third World Telecommunication Policy Forum (Geneva, 2001),

considering

  1. that, pursuant to the basic provisions of the ITU Constitution, that each member State has the sovereign right to develop policies related to telecommunications to meet its needs and objectives, and that the purposes of the Union include:

recognizing (broader economic implications for a country)

  1. that the deployment of IP-based networks and applications has the potential to benefit users, industries, and the economy at large, because it fosters technical and market innovation, and diversity and growth in the economy; not forgetting the potential of upgrading of existing communication networks through use of other new technologies;
  2. that these new enhanced communication capabilities may be essential for the development of other service sectors, and for the production and distribution of goods in the global economy as a whole;
  3. that IP-based applications are likely to become more readily available at cost-effective prices, for the benefit of all users and industries, particularly when supplied under competitive market conditions in which multiple, alternative sources or means are available to address user and industry needs;
  4. that IP Telephony and other IP-based applications could be viewed as a significant opportunity for all countries to respond to the convergence of information and communication technologies and evolve their networks in order to expand the availability and use of a broader range of modern communication capabilities,

noting (implications for operators)

  1. the continued development of the Internet and IP-based networks as a significant medium for communications and commerce;
  2. that the flexibility of IP technologies will contribute to an integration of voice and data networks, thereby allowing suppliers to take advantage of synergies and possible cost reductions, which will enable the provision of new innovative services and applications for the benefit of all citizens;
  3. that networks that can support IP Telephony are being designed with a variety of core network and access technologies and capabilities, including wireless technologies;
  4. that mobile wireless systems are expected to migrate towards an IP-based architecture in order to deliver integrated voice, data and multimedia services, as well as access to the Internet;
  5. that Sector Members face both challenges and opportunities during this transition to a market-driven industry,

conscious (implications for government policies and regulation)

  1. that Member States pursue policies that seek to:
  1. attract capital investment so as to fund infrastructure that serves users and society as a whole;
  2. stimulate innovation in order that applications and products that meet the needs of people can be offered in the marketplace;
  3. exploit the synergies between capital investment and innovation so as to promote sustainable economic development that can attract further investment and create the environment necessary to promote more innovation;
  1. that Member States have national public policy goals in the telecommunication sector, including universal access and service, competitive markets, technology innovation and transfer of technical know-how, and the development of human resources; in addition public interest goals (for example, access to emergency services, security and privacy);
  2. that IP Telephony has created some negative impacts on voice revenues generated by a number of communication operators, particularly in some developing countries; there could also be a revenue gain for other communication operators and service providers;
  3. that the dynamic growth of IP-based networks, applications and services has been due to a combination of private and public sector investment and innovation, and an effective competitive environment;
  4. that initiatives and policies dealing with IP-based networks would benefit from input from users (consumers and business organizations),

is of the view

  1. that IP Telephony applications are best supplied in a market in which consumers have choices among multiple, alternative sources or means to address their needs, because only then will citizens, businesses and the overall economy reap the benefits of innovation and cost effectiveness;
  2. that government regulation should aim to foster an effective competitive environment and that regulation may be appropriate where there is market failure or when public interests cannot be adequately met by industry (e.g. universal access and service); for some countries, there may be other reasons for regulators to intervene, for example to ensure the rebalancing of tariffs;
  3. that Member States should examine the implications of applying existing regulatory regimes to IP-based services and applications,

invites

  1. Member States and Sector Members to consider the possibility of the introduction and deployment of IP technologies and IP applications, including the exchange of information;
  2. all Member States to review their current regulatory frameworks with a view to:
  1. encouraging investment, spurring innovation and advancing development;
  2. achieving public policy goals in the context of a converged communication services environment;
  3. considering the possibility of opening their communication services market with respect to IP Telephony by adopting a competition-oriented approach in order to achieve clearly defined public policy goals, taking into account, among other things, the concept of technology neutrality for fully-substitutable services.

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Last Modified: 2002-06-14