MATERIALS TO ASSIST MEMBERS WITH
STRATEGIC PLANNING
Introduction
1.1
Pursuant to Article 11 of the Constitution, the Secretary-General
is to “prepare, with the assistance of the
Coordination Committee, material required for the preparation of a report
on the policies and strategic plan for the Union, and coordinate the
implementation of the plan”. This provision was modified in Minneapolis.
Previously the role of the Secretary-General had been to “prepare
strategic policies and plans” rather than just to prepare “material
required …”.
1.2
The first Strategic Plan of the Union covered the period 1995-1999
and the current plan covers 1999-2003. In line with moves to align the
different planning cycles of the Union (see C01/20)
the Working Group on Reform has proposed that the next plan should
cover the period 2004-07 (i.e., four years, not five), so that it would
coincide with the financial plan, the two biennial budgets, and a rolling
multi-year operational plan. The plan would be drafted by the Members,
reviewed at Council in 2002, and approved at PP-02. It is to be noted that
Resolution 71 (PP-98) calls for a strategic plan for the period 2003-2007.
1.3
The first two plans have followed a similar structure. Following a
brief introduction, there is an environmental analysis section and a
section on general goals and policies. Separate sections then follow for
each of the three Sectors. Finally there is a section dealing with the
Bureaux and the General Secretariat.
1.4
Contributions from the membership to the Sector Advisory Groups
indicate that the current plan is too long and that the next one “should
be shortened and made more succinct” and should be more closely linked
with other planning cycles of the Union. The view was also expressed that
the Sector Advisory Groups should take the lead role in developing their
respective sectoral strategic plans.
2.
Materials
2.1
In view of the new approach, which is being adopted for the
preparation of the next and final Strategic Plan, it is important that
Council provide guidance on the steps to be followed for the elaboration
of the Plan by the membership. The following materials have been
identified:
·
The report of the Working Group on ITU
Reform (document C01/25), which presents a series of recommendations for
reform of the Union’s management, functioning and structure;
·
The report of the Secretary-General and
the Directors of the Bureaux with regard to ITU reform (document C01/28);
·
The report of the UN Joint Inspection
Unit (document C01/37) on reform of the ITU;
·
A report on the linkage between the
strategic, financial and operational planning cycles of the Union (C01/20)
which proposes a number of improvements to the process;
·
Reports to the Working Group on Reform by
the Secretary-General and the Directors of the Bureau, available in WGR
documents 115, 107, 127 and 128.
·
The document on the Information and
Communication Technologies (ICT) capital fund (C01/08), which raises the
issue of the use of ICT in achieving strategic goals of the Union.
·
A draft “environmental analysis and
source materials”, attached as an Annex to this report. It is presented
for discussion and for possible inclusion, as appropriate, in a revised
form in the draft Strategic Plan to be reviewed by Council in 2002;
·
Other Council documents and membership
contributions relevant to Strategic Planning.
3.
Strategic planning in the Sector Advisory Groups
3.1
In addition to the above materials, and in line with the new
approach to strategic planning adopted in Minneapolis, there are a number
of other documents prepared by the Sector Advisory Groups that are likely
to prove useful.
3.2
In the Standardization Sector, a permanent Strategic Planning Group
has been established under the auspices of TSAG and a preliminary draft
strategic plan has been produced (see TSAG R-7, Annex 2 at: http://www.itu.int/itudoc/itu-t/tsag/reports/01-04/tsag-r7.html).
3.3
In the Radiocommunications Sector, a preliminary discussion of
strategic planning took place at the meeting of the RAG, in March 2001. A
preliminary set of observations was produced and is available as Annex 5
to the report of the meeting (see: http://www.itu.int/itudoc/itu-r/rag/rag2001/42r2_ww9.doc).
A correspondence group has been established to take the matter further.
3.4
In the Development Sector, the next WTDC-2002 is due to precede the
PP by a few months This event could be an excellent opportunity for
finalising inputs to the Strategic Plan and this topic has already been
included in the proposed draft agenda of WTDC-02 (see document C01/39). In
preparation for WTDC-02, a series of regional preparatory meetings are
being held (see: http://www.itu.int/ITU-D-Events/events.html.)
4.
Strategic planning in the General Secretariat
4.1
The main activities of the General Secretariat are carried out in
support of the Sectors and are therefore incorporated into the plans of
the Sectors. Nevertheless, there are a number of cross-sectoral activities
provided directly to the membership (e.g., PP, Council, WTPF, ITU News
etc). In addition, responsibility for financial, human resources and
information services management falls under the Secretary-General.
4.2
In order to prepare a draft strategic plan for general policies and
goals for the Union and inter-sectoral activities, Council may wish to
consider establishing a group, as has been done in the Radiocommunication
Sector.
Annex:
Environmental analysis and source materials
Previous strategic plans have
contained a section analysing the general market environment for
information and communications technologies and the implications this
might have for the ITU. The following preliminary analysis is presented
for discussion. In addition, potential source materials are presented to
assist members with carrying out their own analysis.
A1
Trends and developments in the telecommunication environment
A1.1
During the period since the Plenipotentiary Conference in 1998, a
number of developments have occurred in the broader environment for
information and communication technologies (ICTs) that have significant
implications for the ITU.
A1.2
Growth in the fixed-line network has continued at a steady
rate and the number of fixed lines worldwide passed the one billion mark
early in 2001. Telephone users generate more than 100 billion minutes
of international telephone and fax calls each year and around 2 trillion
minutes of domestic calls. Expenditure on telecommunication services
constitutes around 2.5 per cent of the global economy.
A1.3
At the time of the 1998 Plenipotentiary, there were fewer than 300
million cellular mobile users worldwide, but by the time of the
2002 Marrakech Plenipotentiary there will be more than one billion. In a
growing number of ITU Member States, there are now more mobilephone users
than fixed-line telephone users. Over the last few years, billions of
dollars have been invested in acquiring licences for new, 3rd
generation mobile networks. In the next Plenipotentiary period,
standardisation work will focus on the technologies and services beyond
IMT-2000.
A1.4
The Internet too has continued its phenomenal growth and
there are now more than 350 million Internet users worldwide. The
inter-regional capacity of IP backbone networks increased by 280 per cent
in the year to September 2000 and now exceeds capacity available for
international voice traffic. Despite stock market pessimism about the
future of “dot.com” companies, expenditure on electronic commerce has
grown enormously since 1998 and the volume of email has increased
exponentially. Increasingly, voice communications will also be carried
over IP-based networks.
A1.5
For the satellite industry, however, the period between the
1998 and 2002 Plenipotentiaries has been mixed. The contribution of
satellites to the telecommunications sector, already below 1 per cent of
global revenue, fell further still during the period, and confidence was
dented by high-profile business failures in the Global Mobile Personal
Communications by Satellite (GMPCS) sector. However, the use of satellite
for direct-to-home television broadcasting continues to grow and the
sector has been boosted by the shift to digital transmission. Satellite
notifications awaiting processing by the ITU are running at record levels.
A1.6
Moves towards market liberalization have increased,
particularly since the implementation began of the commitments undertaken
in the Basic Telecommunications Agreement (Protocol 4) of the World
Trade Organization. Many Member States now permit fully deregulated market
entry and foreign investment, in many parts of their telecommunications
sectors. A multilateral trade-based framework is progressively replacing
the bilateral framework of international telecommunications, as set forth
in the International Telecommunication Regulations.
A1.7
Associated with market opening moves is a trend towards private
sector participation. A majority of ITU Member States now have a
privately-owned incumbent operator. In addition, leading international
satellite organisations, such as Intelsat, Inmarsat and Eutelsat have
undergone or are currently undergoing a privatisation process. The level
of state ownership has been progressively reduced in the fixed-line
network and is virtually non-existent in mobile and Internet services.
A1.8
Consistent with this process of separation of operational and
regulatory functions, there are now more than 100 independent
telecommunication regulatory agencies around the world, compared with
just 12 at the start of the decade. Many of these new agencies have been
created in the last few years.
A1.9
At the global level, policy-makers have identified the digital
divide as a critical barrier to the creation of a global information
society and economy. It is clear that the digital divide reflects
underlying inequality in the availability of telecommunications
infrastructure and resources. In recent years, middle-income developing
countries have made enormous strides towards improving access, notably
China and other newly industrialising economies, but the Least Developed
Countries have been left further behind.
A1.10
The pace of technological change shows no signs of slowing
down. Indeed, certain parts of the industry, such as optical transmission
and switching, appear to be growing at a faster rate than predicted by
Moore’s Law.
As a consequence, demand for standardization activities continues to grow
with, on the one hand, ever-stronger pressure to accelerate the approval
process, but on the other hand, strong commercial interests which make a
consensus-based approach difficult to sustain.
A1.11
In the radiocommunication sector, there is an ever-growing
demand for spectrum for new radio-based applications and expansion of
existing uses, such as for remote sensing, position determination,
aeronautical and maritime applications, scientific exploration, mobile
satellite services, broadband wireless access, etc.
This is putting considerable pressure on the agendas of, and
preparations for, World Radiocommunication Conferences and is leading to
heightened interest in these treaty-making sessions, especially on the
part of the private sector.
A1.12
Over and above these developments, the sectors that ITU serve are
now facing new financial challenges. Since March 2000, some US$1
trillion has been wiped off the share values of companies in the
technology, media and telecommunications sector and many companies are
making cutbacks in order to reduce debt and restore profitability.
A2
Implications for the ITU and its membership
A2.1
The industries that ITU serves are relatively healthy, at least
when measured by network growth if not by share prices. This is clearly
good for the ITU. It is reflected, for instance, in growing demand for the
ITU’s services in several key areas, such as standardization activities,
processing of satellite notifications, and the provision of independent
advice to new telecommunication regulatory bodies. Convergence means that
firms in previously unrelated sectors have an interest in ITU’s work.
One measure of this is the expansion in the number of Sector Members
participating in the work of the ITU. At the start of 1998, there were
fewer than 500 Sector Members and this had increased to 656 by the start
of 2001. The first Associates have also now joined the Union.
A2.2
However, despite the success in widening the membership of the
Union, some Sector Members have chosen to discontinue their membership and
others have reduced their financial contribution to the minimum. In the
standards-making area, for instance, there are now many competing
standards development organisations, industry fora and other relevant
bodies and ITU’s share of the limited resources its Members are able to
devote to this activity is inevitably declining. ITU has had some success
in attracting new Sector Members but many new entrants, such as Internet
Service Providers or new mobile carriers, are not active in work of the
ITU. Similarly, only a small percentage of the 2’000 or so companies
worldwide licensed to provide international telecommunication services are
ITU Sector Members. Awareness of ITU’s activities is generally low among
newcomers to the industry.
A2.3
The focus of the international community on the digital divide has
highlighted the fact that ITU’s mission needs to expand if it is to
promote, in the words of the CS, “the adoption of a broader approach
to the issues of telecommunications in the global information economy and
society”. Telecommunications is but one element in a broader
constellation of information and communication technologies. ITU has
participated actively in the work of the G8 digital opportunity task force
(DOT Force) and in other international initiatives created to coordinate
efforts towards bridging the digital divide. Many different organizations
are now involved in this effort, which has traditionally been the domain
of the ITU. If ITU is to retain a pre-eminent role, it must reach out to a
broader constituency, for instance covering telecommunication regulatory
authorities, small and medium-sized enterprises, and representatives of
civil society, such as user organisations, academic institutions and NGOs.
A2.4
In the days when the ITU was the “only show in town”, ITU could
expect that its Members would automatically entrust it with all matters
relating to telecommunication standardization, radiocommunications and
development. But now ITU must be able to earn that trust and must be able
to show the advantages it offers for activities it considers core
competencies. In the Internet area, for instance, very different
structures of governance and standards-making processes have emerged, such
as ICANN, IETF and the Internet Society. In some areas, the future role of
the ITU may become that of a “co-ordinator” among many different
inter-governmental and non-governmental bodies and standards fora, while
in other areas, the ITU will remain as the focus for primary work. For
instance, in the field of IMT-2000, much of the basic research and
development has been carried out elsewhere, while ITU has played a general
oversight and co-ordination role, whereas in the fields of optical
networking and access line technology, ITU is at the forefront of
standards-making activities.
A2.5
In order to fulfil this new role, ITU needs a different approach to
human resources management. The ITU must adopt more modern,
results-oriented management practices. The secretariat would need more
skills in expanding areas such as Internet and mobile communications and
greater capabilities in areas such as policy research and analysis,
strategic planning and management, public communications, and marketing.
In particular, the ITU will need to do more to promote its activities,
particularly in the standardization area. In traditional competencies,
such as standardization and spectrum management, ITU will need to compete
to attract and retain highly qualified staff.
A2.6
Despite the continual increase in the ITU’s workload, the
resources available have remained static and, in real terms, have actually
declined. The value of the contributory unit, for instance, has fallen
from CHF 334’000 in 1997 to CHF 315’000 in 2001. There can
be no expectation that this environment of financial austerity will
change. Instead, the ITU must move towards more flexible funding
arrangements whereby a higher percentage of its activities are financed on
a cost recovery basis and in which there is a direct link between the
output demanded and the resources made available by those demanding the
output.
A2.7
These changes represent significant challenges for the ITU. But ITU
is not facing them alone. The challenges facing the ITU are, in many
cases, the same ones that its Membership has faced over recent years and
the reforms they have made—for instance in the separation of operational
and regulatory functions, or on developing responsive, customer-oriented
organisations—are the same reforms that ITU must now make. Keywords, to
guide the reform process, include relevance, openness, accountability,
efficiency, flexibility, timeliness and responsiveness to changing
Membership needs.
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