Page 158 - Trends in Telecommunication Reform 2016

illustrate areas of potential collaboration in the regulators must encourage investment and service
interest of sustainability and the achievement of innovation within the digital economy. The ICT
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development goals. sector regulator needs to ensure that there is a
balanced, proportionate and robust mechanism
5.3.9.3 Collaboration to enable availability of big for players in the digital economy to flourish, so
data that societal benefits can be realized.
IPR issues commonly fall outside the mandate of
“Big data” continues to transform the way we
live and work, altering the relationships between the ICT regulator. Pursuing partnerships with IP
government, citizens, businesses, and consumers. regulators will be mutually beneficial in efforts to
Public policy can set a platform for the public encourage development of relevant digital content
and private sectors to maximize the benefits of and in fostering an open and competitive digital
big data while minimizing its risks. Ideally, public environment.
policy should identify opportunities for big data to
grow economies and promote the development of 5.3.9.5 Collaboration for optimal taxation
scalable, replicable and commercially sustainable
mobile applications and services. MNOs are significant contributors to national
economies, and they do stimulate activities in the
However, it has not been possible to seize wider economy, further boosting GDP. A range of
such opportunities in some countries due to taxes are levied on MNOs and consumers, such as
policy gaps. For example, in some countries, excise duties on mobile handsets, sales taxes on
meteorological departments have blocked airtime usage, and revenue share levies on mobile
MNOs from using private weather information, operators. These taxes contribute to a high tax
reinforcing government monopolies on this type burden, which can prevent consumer take-up of
of information. This kind of barrier hinders the mobile services, discourage consumer usage and
uptake and value propositions of some commercial hinder investment in networks and services.
services and apps, including for agriculture
solutions. Regulators could consider partnering According to the ITU, although
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to unlock opportunities with development telecommunication/ICT sector tax revenues play
potential and to leverage the widespread use and an important role in supporting national public
availability of mobile networks and services. services, this role must be weighed against the
potentially adverse effects that over-taxation can
5.3.9.4 Collaboration to enable protection of bring to the growth of the telecommunication/
intellectual property rights ICT sector, broadband penetration, and national
economic growth. In this regard, the European
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In the digital economy, copyright law continues Commission High Level Expert Group on Taxation
to perform the critical function of encouraging of the Digital Economy has examined the best ways
new creative work. But it also has a wider impact, of taxing the digital economy in the EU, weighing 71
playing a significant role in fostering innovation. both the benefits and risks of various approaches.
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The impact of copyright is therefore now much
wider than the creative industry alone. Digital Adoption of an optimal taxation policy that
technologies, the companies that exploit them balances government revenue needs, socio-
and the business models they facilitate are all economic development goals and international
potentially impacted by copyright. competitiveness is imperative. The impact of
both direct and indirect taxation on the ICT sector
Endemic copyright infringement facilitated by remains a continuing concern for governments,
broadband infrastructure has drawn the MNOs businesses and consumers alike. Affordability and
and Internet communities into a debate on access to mobile services are vital, so regulators
intellectual property rights (IPRs). The film, music, should play a key role on sector taxation matters
software, publishing and television industries are to amplify the positive impacts from adjustment of
putting pressure on communication regulators to tax rates.
more actively address copyright infringement by
companies and consumers. Yet, at the same time, In Kenya, the removal of a 16 per cent value-added
tax (VAT) on mobile phone handsets in June 2009

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