WELCOME AND OPENING REMARKS
Yoshio Utsumi,
ITU Secretary-General
Ladies and Gentlemen,
Colleagues,
It is my pleasure to welcome you to Geneva
to discuss the regulatory implications of broadband. The New Initiatives
programme was established two years ago when I took office as Secretary
General. It was designed to introduce new topics, of high current interest to
the membership, into the work of the ITU. In a questionnaire survey of ITU
Members we conducted last summer, the “regulatory implications of broadband”
was voted as the topic of highest concern to the
membership.
The concept of broadband is hard to define
precisely. In the background paper, we have defined broadband as any network
offering capacities greater than primary rate ISDN, in other words of 1.5
Mbit/s or higher. In practical terms, it means any network capable of supporting,
say, full-motion video, while allowing some degree of interactivity.
Even though we have been talking about
“broadband” now for fifteen to twenty years, it is only within the last few
years that interactive broadband networks have become a reality; although not
widespread yet. At the start of this year, there were perhaps 12 to 15 million
broadband subscribers worldwide, mainly using either ADSL or cable modems. Only
in a few markets, such as Korea or Canada, is the number of subscribers
attaining anything like a critical mass. Nevertheless, the broadband market is
growing fast in an increasing number of countries around the world. There is
good reason, therefore, for regulators to look ahead to the issues raised by
broadband.
In the briefing paper prepared for this
workshop, we look at the regulatory implications of broadband from a number of
different angles:
·
First, from a philosophical
perspective, what is the proper role for government in an era in which
government has stepped back from a direct role in ownership and increasingly
taking a hands-off approach to competitive markets? Huge investments will be
necessary to ensure that we move towards a broadband future. In countries like
Korea or Singapore, the success in achieving a high-level of investment in
multimedia infrastructures is often as a result of a direct government role. Is
this the right way to go, or will the operation of a free market prove the best
way to attract investment?
- Second, from a practical perspective, what is the best way to administer
the challenges posed by broadband? Is it better to move towards a
converged regulatory framework, as countries such as Malaysia or South
Africa have done, or do the existing, separate regulatory structures for
telecommunications, broadcasting and information technology provide an
adequate framework?
- Third, from a forward-looking perspective, does broadband raise
any new issues that go beyond today’s narrowband networks? Is the tendency
towards monopoly any stronger? Is cross-ownership and cross-sectoral
service provision something to be prevented or, conversely, should it be
encouraged? Should regulators require unbundling of the local loop, or
will this have the effect of deterring investors?
In order to help us answer these questions,
we have commissioned a number of country case studies, covering Australia,
Italy, Malaysia and South Africa, which will be discussed this afternoon. We
have also invited a number of experts to make presentations on key themes, such
as the policy framework for broadband, technology-neutral regulation and
infrastructure management.
It is clear that the commercial environment
for broadband has changed substantially since the loss of shareholder
confidence in telecommunications companies, which started this time last year.
Telecommunications is no longer seen as a safe, risk-free investment, and the
venture capital that is needed to create broadband networks is no longer so
readily available. Overlaid upon this is the fact that, to date, no killer
application has emerged to justify investment in broadband. Nevertheless, there
are many market opportunities, such as online games, business to-business
e-commerce, video-clips or application service provision that cannot be
realised until reliable and affordable broadband access becomes widely
available.
In compiling the agenda, we have tried to
identify topics and to commission presentations which we feel will stimulate
debate. But we have also tried to allow the maximum amount of time for
discussion of issues. In chapter five of the briefing paper, we set out a
number of regulatory questions and concerns. I would encourage each of you to
offer your own perspectives on these questions, but also to pose additional
questions that we may have missed. By Friday morning, we hope to be able to put
together a report of the discussion at the meeting that, even if it does not
provide answers, at least reaches consensus on which are the right questions to
ask.
This is the fourth in the series of
Strategic Planning Workshops held by the ITU. Others have looked at electronic
signatures and certification authorities, IP Telephony and Fixed-Mobile
Interconnection. Each of the workshops have followed a similar format, with a
briefing paper, a set of case studies, and a supporting website. All of those
we have invited to come to this workshop have been selected as experts in the
particular topics dealt with in the workshops. We have invited you in a
personal capacity, not as representatives of your respective countries or
companies. I hope you will participate on that basis, feeling free to share
your personal views rather than expressing official positions. Since the
workshops are an informal gathering of experts, there is no summary record; so
you should feel free to participate actively in the meeting and express your
opinions and points of view freely. In that way, we should be able to gain a
better understanding of the challenges and opportunities presented by
broadband. I look forward to the discussion.
*****************
In order to conduct an interesting but
disciplined discussion, we need a good chair.
I would like to propose as chair for the
meeting, Professor Deborah Hurley who is Director of the Harvard
Information Infrastructure Programme at Harvard University as well as a
lecturer at the John F. Kennedy School of Government. Previously Deborah worked
at the OECD in Paris where she was responsible for that organisation’s
pioneering work in information security and privacy protection. Among her many
publications is the book she edited in 1999 with James Keller entitled “The
first 100 feet: Options for Internet and Broadband Access”.
I hope you will join with me in welcoming
Deborah Hurley to chair this meeting.
