International Telecommunication Union United Nations specialized agency for telecommunications Release This press release is published in French, English and Spanish. For further information, or for additional copies in one of the languages, please contact the Press Office, International Telecommunication Union. Telephone: +41 22 730 5969 / 730 5192 Telefax: +41 22 733 7256 / 730 5939 (For information media, not an official record) ITU/94-17 6 September 1994 ORIGINAL: English A decisive conference for the future orientation of the ITU to take place in Kyoto (Japan) mid-September Geneva - On 19 September next, the fourteenth Plenipotentiary Conference of the International Telecommunication Union (ITU) will open in Kyoto (Japan). The four-week conference will conclude on 14 October. Hosted by the Ministry of Post and Telecommunications on behalf of the Government of Japan, the Conference is among the largest international conferences ever held in Japan; it is also the first ITU Plenipotentiary taking place in the Asia/Pacific region. Some 1300 representatives from 150 countries are expected to attend. The objective of the conference is to set the Union's general policies, to adopt for the first time an overall strategic plan to guide the work of the ITU in the next four years, and to improve the Union's effectiveness in light of the changes which have marked the world of telecommunications. THE BACKGROUND The world has dramatically changed in the past few years: technologically, the convergence of computer technology, telecommunications and broadcasting has brought about new services; new delivery patterns are redefining the boundaries of the telecommunications industry, giving rise to new product and service opportunities and posing new questions to policy-makers and regulators; politically, new alliances aimed at integrating and strengthening the economies of regions to better position them to compete in the global economy have given rise to new trading patterns for which communications will be needed; at the same time, the recession has hit most economies and has forced national leaders to review their priorities and allocation of resources. In many countries, the trend is for governments to regulate telecommunications, leaving the preponderance of operational functions to autonomous entities. Competition in the provision of equipment and services is also affecting the telecommunication market. Furthermore, the growing number of wholly private networks and the possibility to resell excess capacity to the public, have led to a number of new players with very different profiles. All of these developments have had a great impact on the ITU whose role is to serve the needs of the telecommunication community at large. To adjust to this new environment, the ITU undertook, in the past 18 months, a series of reforms decided by an Additional Plenipotentiary Conference (APP) held in December 1992. These reforms essentially addressed structural and functional issues. At Kyoto, the Union will now shift its focus towards its strategies and activities with a view to repositioning the organization in the international telecommunications arena. The objective is two-fold: * to strengthen the foundation of the organization * to better serve the changing needs and the expectations of both Member Administrations (sovereign states) and sectoral members (private and public sector operators, manufacturers, scientific and industrial groups, service providers, other international organizations, etc.) Meeting these objectives will require the ITU to broaden the scope of its activities and play a catalytic role with other international and regional telecommunication organizations. The Kyoto Conference will also be called to choose the top executives who will be given the responsibility to bring to fruition the new orientations. THE ISSUES Rights and obligations of non administrations The ITU is an intergovernmental organization and its Members clearly wish it to remain so. However, the participation of non-Administration entities and organizations is a pre-requisite to achievement of the ITU's purposes and the surest, and possibly the only, guarantee that the Union retain its pre-eminent competence in telecommunications. Conversely, participation in the work of the ITU is, for the industry, one vital link in the innovation- investment chain. To maintain its government membership and attract broad participation, the ITU will have to offer services that are of value to members. In doing so, the ITU must be able to have a portfolio of products and services which both anticipate and respond to the changing needs of its customers - present and potential. The 1992 APP recognized the need and importance of enhanced participation in ITU activities of entities and organizations other than Administrations. It introduced new broad categories of participants and recommended that new criteria and procedures to govern their participation be developed by Council. These, to be examined by the Kyoto Conference, include a broader scope of rights for members, particularly in terms of access to documents, submission of proposals and interventions. As far as the right to vote is concerned, the Council decided that the question needed further study and asked that a representative survey of the members' wishes be conducted. Strengthening the financial base of the ITU The issue of membership is, however, closely linked to that of the financial foundations of the organization. As a result of the separation of the regulatory and operating functions, the ability of governments to financially support the ITU has reached a plateau. If the ITU is to better serve the needs of the telecommunications industry in the future, new sources of financing will be required. Today, the industry contributes 11% of the ITU budget through participation in the three sectors. In addition to increasing the membership, a number of possibilities exist to strengthen the financial base of the ITU. Options related to the financial contributory system, criteria and procedures to enable new categories of participants (small companies or consultants for example) were considered by the Working Group of the Council in 1993 and by the Council in 1994. Their conclusions will now be examined by the Plenipotentiary Conference. The contribution system applicable to members of the Sectors will also be examined with a view to proposing possible changes. Finally, the possibility of funding ITU activities through voluntary contributions will be considered. The financial foundation of the organization is significant in the formulation of ITU policies and plans and is therefore be key to the long- term success of the Union. ITU's role in global telecommunications affairs The telecommunication environment has undergone considerable changes since the 1980s under the combined influence of advances in technology, the globalization of markets and growing user demand for integrated cross- border services increasingly adapted to their needs. These forces shaping the telecommunication environment have led to a restructuring of the telecommunication sector, especially the separation of regulatory and operating functions, the gradual liberalization of services and the appearance of new players in this area. To facilitate the emergence of a global market which can support the harmonious development of these services, national telecommunication policies and regulations need to be harmonized. At the international level, the outcome of the Uruguay Round of Multilateral Trade Negotiations, especially the General Agreement on Trade in Services, is to be taken into account. These agreements presuppose recognition of separate areas of competence but also envisage close cooperation between the future World Trade Organization and the ITU. These changes point to the need for an international forum to address global telecommunication policy issues. Until now, the mission of the ITU has been essentially technical. The greater part of its resources has been allocated to this mission and its greatest successes have been in this area. But the traditional strengths of the ITU may have to be adapted to the new structures, public policies, legislative frameworks and regulatory institutions which are now emerging. The Council concurred with this approach and agreed that a forum to discuss telecommunication strategies and policies was indeed needed. It is therefore submitting to the Plenipotentiary Conference a series of options highlighting, for each, the pros and cons with respect to the nature, scope of its action, financing and working methods of such a forum. The Forum would address issues such as the global information infrastructure, personal communications services, new methods of radio spectrum management, open access to networks or the transmission and reception of transborder television broadcasts. The Buenos Aires Action Plan At Kyoto, development issues will focus on the implementation of the Buenos Aires Action Plan. The Plenipotentiary Conference will have to decide on the financial resources which are required to implement the Action Plan as well as mechanisms which may be called for to establish priorities and a calendar of implementation. A central issue will be the need to allocate sufficient funding for the full implementation of the Action Plan in light of essentially zero-growth budget ceilings and competing requirements to fulfill ITU's mission in other sectors of activity. The Buenos Aires Action Plan was adopted by the World Telecommunication Development Conference earlier this year. It translates the visions, goals and objectives of telecommunications development of the Buenos Aires Declaration into concrete work programmes to be implemented over the next four years, identifying those priorities specific to the ITU and those areas of cooperation with partners of the development sector. It covers a programme of cooperation among the members of the ITU Telecommunication Development Sector through study groups, 12 cooperation programmes based on the needs and priorities of the developing countries and a special programme for the Least Developed Countries. Leadership of the organization The Conference will proceed to fill the elective posts of the organization: Secretary-General, Deputy Secretary-General, Directors of the three Bureaux. Members of the Council (ITU's management body) as well as the members of the Radio Regulation Board will also be elected by the Kyoto Conference. Radio Regulations Board Prior to 1 March 1993, date at which the provisions of the Constitution and Convention relating to the new structure and functioning of the ITU have been provisionally applicable, the Board, then called International Frequency Registration Board, consisted of 5 full-time members. On that date, the IFRB ceased to exist and the newly established Radio Regulation Board came into effect. However, the duties of the RRB were undertaken by the former members of the IFRB pending the election of the RRB members by a Plenipotentiary Conference. It will therefore be the first time, at Kyoto, that the election of the RRB members will take place. As a result, the election procedure and the geographical distribution among the nine members will need to be decided prior to their election. The Council At Council, each region is entitled to a certain number of seats to ensure equitable distribution. The current number of seats is forty-three as follows: the Americas (8 seats), Western Europe (7 seats), Eastern Europe and Northern Asia (4 seats), Africa (12 seats) and Asia/Australasia (12 seats). However, given the changes in the world's geopolitical situation, a number of countries feel that the composition of each administrative region and the number of seats per region needs to be revisited. The election of the Members of Council are therefore dependent upon decisions of the Plenipotentiary conference in this respect. 54 countries have to-date submitted their candidature to sit on the Council. The Conference will set the deadline for the submission of candidatures and will decide on the calendar and procedure for the elections. The date of taking office for elected officials and for members of the Radio Regulations Board will also be decided by the Plenipotentiary Conference. FOR FURTHER INFORMATION, PLEASE CONTACT: The Press Office Office of the Secretary-General International Telecommunication Union Place des Nations 1211 Geneva 20 Phone: +41 22 730 5969 Fax: +41 22 730 5939 Internet: lambert@itu.ch From 17 September to 16 October, the Press Office will be operating from Kyoto and can be reached at +81 75 705 1105/705 1106 (phone) or +81 75 701 9286 (fax). Page 4 of 4