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The World Telecommunication Policy Forum (WTPF) 2009 began
with a Strategic Dialogue on ICTs: Confronting the Crisis, held
on 21 April 2009. The Strategic Dialogue brought together
industry leaders, policy-makers and governments to discuss
proactive strategies of stimulating economic recovery. H.E. Mr.
Mario Lino, Minister of Public Works, Transport and
Communications of the Government of the Portuguese Republic
opened the Strategic Dialogue and welcomed participants on
behalf of the Portuguese Government. He noted the honour,
interest and satisfaction with which the Portuguese Government
is hosting WTPF 2009 and congratulated ITU on its initiative in
convening the Strategic Dialogue.
H.E. Mr. Mario Lino emphasized the commitment of the Portuguese
Government to executing Portugal’s Technological Plan to speed
up the development of the information society. Portugal
prioritizes investment in New Generation Networks and innovative
infrastructures as one means of overcoming the crisis, in
harmony with the European Economic Recovery Plan. This will
allow the Portuguese Government to meet the needs of its
citizens and business, resulting in new behavioural patterns and
business models for public procurement, electronic invoicing and
the Citizens’ Portal. H.E. the Minister also presented
Portugal’s e-school programme and Magellan initiative. 1.1
million students registered in this programme (over one tenth of
Portugal’s population), of whom over 800,000 have already
received computers.
Dr. Hamadoun I. Touré, Secretary-General of the ITU, welcomed
participants to the Strategic Dialogue and thanked the
Portuguese Administration for their warm welcome and unfailing
support. He noted that financial crisis and global economic
slowdown are challenging the fabric of global finance and
testing governments and international institutions. He observed
that the crisis is challenging many businesses, but it will also
give birth to new institutions, revitalize communications, and
enable new entrants and technologies to emerge.
Dr. Touré emphasized the UN’s role as a unique forum where
developing countries can play their part in debating and
defining post-crisis scenarios, with the recent Chief Executives
Board meeting in Paris. He drew attention to ITU’s role in
facilitating meaningful dialogue on the crisis, with many key
stakeholders present at WTPF and consensus as a key hallmark of
ITU. Dr. Touré expressed his optimism in the outlook for the ICT
industry and his belief that the industry can carry the torch
forward and contribute to leading the world out of the crisis.
Session One asked whether this crisis is any different to
previous economic recessions. Panellists noted weakness in a
range of macroeconomic indicators. The latest economic
projections from the OECD foresee recovery beginning in 2010.
The crisis may be distinguished from previous crises by a domino
effect, whereby the crisis has propagated to many countries to
become the first truly global crisis. Panellists highlighted the
importance of creativity and innovation in driving economic
growth. They agreed that ICTs are an important part of any
stimulus package, as a strategically important sector.
The need to be wise with government spending was emphasized,
as was the need to invest in new technologies of the future,
rather than protecting the past. Some panellists suggested that
governments could create an enabling environment for investment,
rather than provide funds. Some panellists suggested that
existing systems of global governance are failing, and called
for a re-examination of our institutions and for Bretton Woods
2.0. Old models are becoming redundant (for example, in
newspaper industry, record industry and research), and we are
developing new business models. Repeated calls were made for a
Digital Marshall Plan to kickstart recovery and economic growth,
a call first made at the ITU Kigali Summit in October 2007. Such
a Plan should extend beyond the duration of the present
financial crisis.
The second Session investigated how investment and financing
can help overcome the crisis. Panellists noted that while
investors may be more cautious, they will still invest in
worthwhile business models. There are opportunities for
innovation and improved services, especially in emerging
markets. A number of panellists acknowledged a role for
government investing in infrastructure. They examined the role
of public-private partnerships and emphasized the need for
cooperation to address the crisis. Panellists also noted the
substantial investments going ahead in some countries, despite
the crisis – or, in the case of stimulus packages – in response
to the crisis. They noted that, after restructuring during the
dot.com crisis, the telecom sector is now more resilient than
other sectors.
The third session on telco strategies asked how astute operators
and telcos are navigating these uncertain times yielding fresh
opportunities. Participants reviewed recent regulatory
developments, and suggested that calls for more or less
regulation should be replaced by calls for better, more
appropriate regulation. Operators noted that they are not
immune, with pressure on margins in heavy and rapid price
reductions, but slower reductions in cost base. Operators
distinguished between mature and emerging voice markets in terms
of profit margins, data usage and investment. One operator
responded that it is moving from a focus on technology to a
focus on customers, with rewards for loyalty.
Session Four listened to the experience of industry. Panellists
emphasized that it was not a case of picking winning
technologies among competing technologies - economies of scale
are needed to boost affordability and low-cost devices,
irrespective of technology. End-users do not care about the
background technologies either - multiple capabilities must be
combined into a seamless end-user experience invisible to
end-users to grow the market. The finite resource of spectrum
must be used more intelligently. The potential of the satellite
industry in providing connectivity to large and remote areas was
also acknowledged, with growth continuing unabated by the
crisis.
Additionally, panellists acknowledged the role of technology in
including people with special needs in the information society
and in monitoring climate change.
The Portuguese Government and ITU are delighted that four panels
of such distinguished participants were able to join us to offer
their rich insights into the impact of the financial crisis on
ICT markets, based on their experience and knowledge of the
markets, ICT policy and investment.
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