INTERNATIONAL TELECOMMUNICATION UNION S T R A T E G I C P L A N 1995-1999 DRAFT STRATEGIC PLAN 1995-99 TABLE OF CONTENTS Page I. Introduction 3 II. The Overall Strategy and Priorities of the Union 4 A. The ITU Mission 4 B. The Changing Telecommunication Environment 4 C. A General Strategic Approach 6 D. General Policy and Program Priorities 8 III. Sectoral Strategies and Priorities 10 A. Radiocommunication 10 B. Standardization 12 C. Development 14 IV. Management and Personnel Strategies and Priorities 16 V. Financial Considerations 17 VI. Conclusions 18 INTERNATIONAL TELECOMMUNICATION UNION DRAFT STRATEGIC PLAN 1995-99 I. Introduction 1. This report proposes a draft strategic plan for the International Telecommunication Union for the 1995-99 period. It is submitted by Council to the Kyoto Plenipotentiary Conference, as required by CS 50 of the Geneva Constitution. 2. The basic purpose of this report is to recommend strategies and priorities which will enable the ITU to achieve the purposes set out in the Geneva Constitution and Convention, in light of changes in the telecommunication environment. As directed by APP Resolution 5, it is also intended to provide the strategic framework for the Union's overall budget for 1995-99, which will be established by the Kyoto Plenipotentiary Conference. The Council will adjust the plan as required in approving biennial budgets for 1996-97 and 1998-99. 3. The draft strategic plan presented in this report builds on work done in the current plenipotentiary period. As a result of the recommendations of the High Level Committee (HLC), the Additional Plenipotentiary Conference (APP) of December, 1992 re-structured the Union so that it would be organized to respond to the new environment. Although improved structures and working methods are necessary conditions for success, they are not sufficient. With the new structures in place and the new working methods in the process of being implemented, the strategic focus for the next plenipotentiary period must shift to the activities of the Union. To achieve its purposes, the activities of the ITU must serve the changing needs of its membership - both Member Administrations and the "members" who participate in the Union's work - as efficiently and effectively as possible. The ITU may find it necessary to make further adjustments to the Union's structures and working methods at the 1998 Plenipotentiary Conference. However, the dominant strategic theme, at least in the first part of the upcoming plenipotentiary period, must be better service to the Union's various constituencies and other parties with an interest in its work. 4. The report is organized as follows: * Section II summarizes the mission of the ITU as defined in the Geneva Constitution and Convention, outlines the main trends in the telecommunication environment which will create threats and opportunities for the Union in the 1995-99 timeframe, recommends a general strategy for achieving the ITU's purposes in this period, and sets out specific policies, plans and priorities for the Union as a whole; * Section III focusses on the challenges facing the Radiocommunication, Standardization and Development Sectors in carrying out the missions they have been given by the Geneva Constitution and Convention, and outlines the strategies which have been developed by the Sectors for responding to these challenges; * Section IV discusses the organizational, management and personnel strategies that must be put in place to enhance the efficiency and effectiveness of ITU activities; * Section V presents considerations and options related to the financing of ITU activities in the 1995-99 period; * Section VI presents the report's conclusions. II. The Overall Strategy and Priorities of the Union A. The ITU Mission 5. The purposes of the ITU are set out in Article 1 of the Geneva Constitution. In essence, the Union's mission covers the following domains: * a technical domain: to promote the development and efficient operation of telecommunication facilities, in order to improve the efficiency of telecommunication services, their usefulness, and their general availability to the public; * a development domain: to promote and offer technical assistance to developing countries in the field of telecommunications, to promote the mobilization of the human and financial resources needed to develop telecommunications, and to promote the extension of the benefits of new telecommunications technologies to people everywhere; * a policy domain: to promote, at the international level, the adoption of a broader approach to the issues of telecommunications in the global information economy and society. This mission can be accomplished by the ITU in cooperation with other world and regional intergovernmental organizations and those non-governmental organizations concerned with telecommunications. 6. Article 1 of the Geneva Constitution and Convention also indicates the means intended to achieve this mission. These means are reinforced by the following principles: * cooperation between ITU Member Administrations in policy matters with a view to achieving the highest possible degree of harmonization of their actions; * participation by non-Administration entities and organizations in the activities of the ITU's Sectors; * information exchange with ITU Members and with the wider telecommunications community. B. The Changing Telecommunication Environment 7. A number of important trends in the international telecommunication environment will affect the ITU as it seeks to carry out its mission in the 1995-99 period. 8. Restructuring of the Telecommunication Sector: Telecommunications is being restructured and liberalized. This is being done by separating telecommunication operations from government administrations and by introducing competition in the provision of telecommunication equipment and services. As a result of these changes, the role of many ITU Member Administrations is changing. They were operators; now they are regulators. At the same time, the role of many operators and manufacturers is also changing, as monopoly gives way to competition in liberalized segments of the telecommunications market. These trends are changing the membership profile of the ITU and creating new needs and expectations on the part of Members and non-Administration participants alike. The priorities of the Union must therefore be re-examined and re-aligned to reflect the changed nature of the communities it is meant to serve. 9. Technological Convergence: The rapid development and convergence of telecommunications, computer, broadcasting and information technology are redefining the boundaries of the telecommunications industry, giving rise to new product and service opportunities, and posing new questions for government policy- makers and regulators. The development of advanced terrestrial and satellite- mobile communication systems and the parallel development of multimedia communication systems will raise issues concerning the priorities of all three ITU Sectors, the manner in which the benefits of these systems can be extended to developing countries, the regulatory environment of convergent services, at the domestic and international level and the membership profile of the ITU. The Union's response to the phenomenon of technological convergence will determine whether or not it continues to serve the interests of the rapidly expanding telecommunication sector in the twenty-first century. 10. Globalization: Global telecommunication consortia are emerging as a result of alliances, mergers and acquisitions between national operators; and through the development of entirely new systems, including mobile satellite networks intended to provide global coverage through portable, hand-held terminals. The emergence of these global consortia and systems have the potential to fundamentally change the nature of international telecommunications. In the past, international services were jointly provided by national operators. In the future, they will increasingly be provided on a trans-national basis. The ITU will of course continue to provide a forum for developing technical, operational, and service standards for global systems, and for allocating spectrum to these services. The question of how policies for global telecommunication systems should be harmonized will be one of the most important and difficult new issues faced by the ITU during the next plenipotentiary period. The exchange of technical information and regulatory experiences will assist all Members in making informed national policy choices regarding infrastructure alternatives, the role of competition, licensing and restructured regulatory regimes. National regulatory responses to global telecommunications systems are of particular interest. However, at present there is no appropriate forum in the ITU or elsewhere for harmonizing other elements of policy to facilitate the operation of these systems. 11. The Global Information Economy and Society: Technological progress and the globalization of telecommunication operations are closely related to the emergence of today's global information economy and society. These effects are particularly notable in the development of the global economy. Advances in telecommunications have unified world financial, currency and commodity markets in "real-time" trading systems, supported the development of global corporations, and changed the distribution of work between developed and developing countries in the manufacturing and service sectors. As well as supporting the globalization of economic activity, telecommunications and information goods and services are now recognized as important global industries in their own right. Participants in the recently-concluded Uruguay Round of GATT negotiations saw telecommunications as the key to expanding trade in services, as well as to improving trade efficiency in other sectors. Telecommunications also exercise an important influence on world- wide consumer demands, expectations and tastes through the dissemination of advertising and cultural products. These trends are combining to create new expectations concerning international telecommunications on the part of the international community. They are leading to the development of telecommunications-related decisions in other international organizations, most notably the GATT. If the ITU is to play "a leading role" in the information economy and society of the twenty-first century, it should establish, in cooperation with international and regional organizations, a vision of the role telecommunications will play in global economic and social development, communicate this vision to other international organizations, and coordinate its activities with them in pursuit of mankind's common goals. 12. Geopolitical Change: The rise of the global information economy and society has been accompanied by significant geopolitical changes, as structures which were built on military and political foundations have been adjusted to take account of economic and social developments. In this respect, one of the most important trends has been the development of strong regional economic and trading alliances, most notably in Europe, North America and the Asia-Pacific region. The aim of these alliances is to integrate and strengthen the economies of the regions, to better position them to compete in the global economy. In general, regional organizations have recognized the central role played by telecommunications in economic development and competitiveness. Some have therefore sought to develop regional strategies and policies which will support the growth of telecommunications, in order to further regional economic and social development. In some cases, regional institutions have been developed that closely mirror the activities of the ITU. The Union's strategies and priorities should address the respective roles and responsibilities of the ITU, other international organizations, and their regional counterparts. 13. The Development Gap: In the information economy and society, telecommunications development should no longer be viewed solely in terms of assistance provided from developed to developing countries. It must be seen in the much broader context of sustainable global development. In this perspective, the development of telecommunications is interdependent with the other elements of economic and social development. They are mutually reinforcing and should be pursued in ways that preserve and enhance the natural and human environment. Since telecommunications is now recognized as an essential infrastructure for all human development, universal access to at least basic telecommunication services should be viewed as a fundamental objective by the international community. A decade ago, the Maitland Commission suggested to the ITU that this goal should be reached by the year 2000. While there have been notable advances in some developing countries, there has been very little progress in the fifty or so Least Developed Countries (LDCs). Overall, the gap between the developed and developing worlds has widened. However, new technologies promise to make it possible to achieve the goal of universal access to basic services and to extend some of the benefits of new technologies to developing countries. Closing the development gaps between the LDCs and other developing countries, and between the developed and developing worlds, will require a concerted effort between ITU Members and "members", between Sectors, and between the ITU and other international and regional organizations. 14. Readers are urged to refer to the ITU's "World Telecommunication Development Report" of March 1994 for information and analysis on some of the key trends in the changing telecommunication environment. C. A General Strategic Approach 15. For the last 129 years, the ITU's fundamental mission has been technical. The greater part of the Union's resources are allocated to this mission, and its greatest successes have been in this area. The ITU is the only international organization with a thorough technical knowledge of telecommunications, not only because Member countries are represented by telecommunication administrations, but because the world's leading suppliers of telecommunication goods and services participate so actively in ITU activities. The Union's strategy should be built on its core technical competence in telecommunications. 16. In developing a strategy based on this foundation, it will be necessary to maintain and strengthen the ITU's role in standardization, in radiocommunication, and in assisting the developing countries in developing their telecommunication networks. This will be done through the activities of the three Sectors and by establishing closer links among them. 17. As a result of the changes that have taken place in the structure of the world telecommunication sector, public policies, legislative frameworks and regulatory institutions are now playing a more decisive role in the development of telecommunications. In addition, the emergence of global telecommunication operators and the GATT agreement on a global framework for regulating trade in telecommunication goods and services strongly indicate that reviewing and updating the ITU's role in the regulation of international telecommunications should be a strategic priority for the 1995-99 period. This may require the adaptation of the Union's traditional strengths. In particular, with the creation of the World Trade Organization (WTO) as the successor to the GATT, the interplay between the activities of the ITU and the WTO on telecommunications matters will have to be considered, and some adjustments in jurisdiction or procedures may ultimately be necessary. The Union should establish an effective liaison immediately with the WTO to identify issues at an early stage and avoid duplication or inconsistent activities. More generally, to maintain its claim to global technical pre-eminence in matters relating to telecommunications, the Members of the ITU and the headquarters staff should develop a core technical competence in the areas of telecommunications policy, law and regulation. 18. Priority for telecommunications development is a relatively new element in the ITU mission. However, it is clear that relatively little progress has been made in the decade since the Maitland report toward the fundamental development goal of universal access to basic telecommunication services. In the next plenipotentiary period, demonstrable success in the ITU's development mission will be critical to the Union's future as an international organization and a member of the United Nations family. ITU Members and the world community are unlikely to wait another ten years to see if the Union can contribute to the achievement of this goal. 19. As the High Level Committee noted, the telecommunications needs of developing countries are great, while the resources of the ITU are limited and currently declining. In this situation, the Union's strategy should be to use the leverage provided by its core technical competencies to help achieve its development mission. Improved cooperation and coordination between the Standardization, Radiocommunication and Development Sectors is one of the essential elements of this strategy. In addition, as discussed above, cooperation, coordination and the exchange of experience and information among Members in policy matters should be added to the inventory of the ITU. Strengthening the Union's technical pre-eminence in telecommunications will position the ITU to be a credible partner in development - to the service providers and equipment manufacturers who are driving the development of telecommunications worldwide, to the private investors and public institutions that possess the financial resources needed by developing countries, and to the other international organizations involved in infrastructure, economic and social development programs which increasingly depend for their success on telecommunications. 20. The policy role of the ITU adopted by the APP may in the long run prove to be of the greatest strategic significance to the Union. 21. The ITU's technical competence in telecommunications matters, combined with the access it provides to a global network of telecommunication experts and leaders, puts at the Union's disposal information resources which are of potentially enormous value. Products and services which could be developed using these resources would be of interest to telecommunication equipment suppliers and service providers, investors, government policy-makers, planners, international and regional organizations, the academic community, consultants, and the public at large. In the 1995-99 timeframe, the most appropriate strategy for developing the ITU's broad policy role will be to focus the attention of the international community on the issues of telecommunications in the global information economy and society. In this respect, more effective exploitation of the Union's information resources is one of the key ingredients to a successful strategy. To date, the ITU has not exploited these resources to anything like their potential, except in the operations of the TELECOM exhibits and fora. More effective exploitation of the ITU's information resources will help the Union achieve its purposes. In addition, an information resources strategy could provide new streams of revenue, and enhance its development mission by facilitating alliances with other development partners. 22. The ITU is an intergovernmental organization, and its Members clearly wish it to remain so. The need to preserve the intergovernmental nature of the ITU is therefore a fundamental premise in strategic planning for the Union for the 1995-99 timeframe. However, great advantage can be derived from enhanced participation of the private sector in the ITU. In fact, with the changes that are taking place in the structure of telecommunications, continued participation by non-Administration entities and organizations is a pre-requisite to achievement of the ITU's purposes, as stated in the Constitution. It is the surest, and possibly the only, guarantee that the Union will retain its pre-eminent competence in telecommunications. It is one of the sources of the ITU's "competitive advantage" as an international organization. The need to maintain and enhance the unique character of the ITU as a partnership between the public and private sectors is therefore a fundamental strategic premise. 23. As the Union develops its strategy in the 1995-99 timeframe, its Member Administrations must remain ever conscious of the strategic need to maintain and strengthen the relationship between the public and private sectors within the ITU. Members must be prepared to adjust the ITU's structures and working methods if it is in the long-term interest of the Union to do so. By the time of the next Plenipotentiary Conference in 1998, the Union should have a much clearer idea than it does at present of the role and functions of its non-Administration members. 24. The Union's strategy in the upcoming plenipotentiary period should be to approach this issue on a practical basis. By first determining the needs of ITU Member Administrations and Sector "members" (i.e. "Big-M" and "small-m" members), it should then be possible to examine how adequately these needs are served by existing structures and working methods, and thereby determine whether adjustments are required. As stated previously, the best strategic approach to this issue is not to discuss abstract models and theories, but to look at the concrete, evolving needs of ITU constituents. D. General Policy and Program Priorities 25. The following policy and program priorities are recommended for consideration within the budgetary limits to be adopted to carry out this strategy in the next plenipotentiary period: 1. Strengthening the Foundations of the Union 26. In order to increase the effectiveness of the ITU, the following actions should be considered for the next plenipotentiary period: * The needs of ITU Member Administrations, non-Administration participants, the world telecommunications sector including telecommunication user groups and development partners, should be systematically analysed in order to determine what they require and expect from the Union. This should initially be done on a comprehensive basis and as a matter of urgency by the 1995 Council. Further and possibly more targeted analysis should be conducted at regular intervals throughout the plenipotentiary period. * The participation in Union activities of non-Administration entities and organizations should be enhanced. Because of the intergovernmental nature of the ITU, this should be done in the first instance by encouraging national entities and organizations to participate in national delegations and in fora established by Member Administrations for developing national positions for ITU meetings and conferences. * The terms and conditions under which "members" participate in Union activities should be reviewed and updated in light of their changing needs and the ITU's changing requirements. A study program should also be undertaken to determine under what conditions "very small-m" entities and non-profit organizations might take part in ITU activities. The impact of these changes on the financial balance between the three ITU Sectors should be carefully monitored. * Linkages between the activities of the three ITU Sectors should be increased, and synergies between Radiocommunication, Standardization and Development reinforced. 2. Broadening the Scope of Union Activities 27. At the same time as the Union seeks to strengthen its current core competencies to ensure its technical pre-eminence in international telecommunications. It must take cognizance of the rapid changes taking place in the telecommunication environment and in the needs of its Members: * Considering that a purpose of the Union is to promote, at the international level, a broader approach to the issues of telecommunications in the global information economy and society, and recognizing that ITU Member Administrations realize the need for constant review of their own telecommunication policies and legislation and for coordination with those of other Members in the rapidly changing telecommunications environment, APP Resolution 15 recognized the possible need to organize a forum in which ITU members could discuss their telecommunications policies and strategies. This could be done through one of the solutions listed in Document PP94/25 for a new forum to discuss telecommunication policy or through a combination of initiatives, without prescriptive regulatory outcomes. * The impact of the GATT Uruguay Round Agreement, the implications of technological convergence, and global telecommunication systems should be topics of priority consideration in these fora. * As recommended by the HLC, developments which might lead to the need in a future plenipotentiary period to hold a World Conference on International Telecommunications (WCIT), as provided for in Article 25 of the Geneva Constitution, should be kept under review. * The Union should develop strategies to more effectively exploit its information resources. There is a huge and growing demand for information about telecommunications. By capitalizing on the technical information available through its Radiocommunication, Standardization, and Development Study Groups, the data collected by the Standardization and Development Sectors, and the telecommunication indicators program, the ITU could respond to this demand and increase the revenues of its publications program. In developing an ITU information resources strategy along these lines, the terms and conditions under which ITU Members should obtain access to ITU information resources must be carefully considered, and care taken to avoid policies which would create incentives for companies to simply purchase ITU information products and services instead of becoming Sector members. 3. Increasing the Union's Leverage 28. The ITU's broadened and reinforced technical competence in all matters relating to global telecommunications will position the Union to play an increasingly predominant role in issues relating to the global information economy and society. Key priorities in the 1995-99 timeframe are: * Strategic alliances should be developed with other international and regional organizations which have an important influence on the development of telecommunications. At the international level, cooperation with the new WTO, the OECD, the World Bank and UNESCO should be priorities. At the regional level, regional standardization, development and financial organizations are of the greatest concern. * The ITU's relationship with the rest of the United Nations system should be strengthened. In the global information economy and society, telecommunications will be increasingly important to the activities of all international organizations, particularly those involved in large-scale peace, security and development projects. By working in partnership with other organizations and making its core technical competence in telecommunications available to support their activities, the ITU will leverage its own resources and multiply the effectiveness of its activities. * The Union's public information capabilities should be increased. At present, the ITU is surely one of the least known international organizations, in spite of the fact that the development of the global telecommunications network is increasingly vital to the welfare of humanity. The Members of the Union have asked it to play a leadership role in the international community. To do this, the ITU must communicate its message more effectively than it does at present. III. Sectoral Strategies and Priorities A. Radiocommunication A.1. The Radiocommunication Sector Mission 29. Consistent with the provisions of the Constitution and the Convention (Geneva 1992), the mission of the ITU Radiocommunication Sector is, inter alia, to ensure rational, equitable, efficient and economical use of the radio-frequency spectrum by all radiocommunication services, including those using the geostationary- satellite orbit, and to carry out studies on radiocommunication matters by: * ensuring that the Radio Regulations continue to respond to the needs of the international community through world and regional radiocommunication conferences; * coordinating efforts to eliminate harmful interference between radio stations of different countries; * making Recommendations on technical radiocommunication matters through Radiocommunication Assemblies and study groups; * providing the products and services necessary to accomplish the Sector's purposes through the Radiocommunication Bureau and the Radio Regulations Board; * developing an appropriate set of rules of procedures for use in the application of the Radio Regulations and decisions of competent radiocommunication conferences, and approved by the Radio Regulations Board. A.2. The Radiocommunication Environment 30. Notably, the radiocommunication environment is characterized by: * technological convergence of information technology and telecommunications; * rapid technological development, and the widespread application of digital techniques to most space and terrestrial systems, including mobile communications and new television and sound broadcasting systems; * increasing demand for the limited radio-frequency spectrum and orbital positions from space and terrestrial systems, different services and service providers, and different countries; * growing competition in the marketplace between "wired" and "wireless" communications; * the growing recognition of the economic value of frequencies and orbital positions leading to new approaches to national spectrum management in some countries; * the growing role of regional organizations and private sector collaboration. A.3. The Radiocommunication Sector Strategy 31. The strategy of the Radiocommunication Sector is to ensure that the ITU remains the pre-eminent global body for radiocommunications. The objectives of the Radiocommunication Sector to achieve this strategy are to carry out the functions laid down in the Convention, and specifically in 1995- 1999: * to develop and adopt more precise criteria for frequency sharing and coordination of new and existing systems in both space and terrestrial environments; * to complete the simplification of the Radio Regulations and consider any consequential impact on the Radiocommunication Sector; * in close collaboration with the Telecommunication Development Sector, and the Telecommunication Standardization Sector as appropriate, to conduct information meetings and world and regional seminars, accelerate the development of Handbooks, and facilitate the development of automated spectrum management systems; * to continue to improve the working methods and cost-effectiveness of the Radiocommunication Sector, and to aim at more efficient Radiocommunication Assemblies and Radiocommunication Conferences; * to optimize cooperation with the other Sectors and organizations and to minimize duplication of effort; * to facilitate the development and introduction of new technologies; * to implement efficient means in order to promote broader participation by Members, particularly developing countries, and others in all the activities of the Radiocommunication Sector; * to ensure that the Radio Regulations and the rights of Member Administrations and service providers are respected; * to ensure that the Radio Regulations Board carries out its functions in the sensitive area of the use made of frequency bands and satellite orbits in a manner which maintains the confidence of Member Administrations. A.4. Priorities of the Radiocommunication Sector for 1995-99 32. The priorities of the Radiocommunication Sector for 1995-1999, in addition to those identified by future conferences, are: * to facilitate the development and introduction of Mobile-Satellite Services (MSS) and Future Public Land Mobile Telecommunication Systems (FPLMTS), including the development of relevant sharing conditions; * to facilitate the development and introduction of digital television, including High-Definition Television (HDTV), and digital sound broadcasting; * to provide assistance as requested by a WTDC to facilitate the introduction of modern radio systems to assist the developing countries in raising penetration levels, particularly in rural areas; * to facilitate timely coordination between new systems and existing systems in both space and terrestrial environments; * to expand the assistance offered to Member Administrations in registering frequency assignments and in applying the Radio Regulations, with special attention to developing countries; * to assure that the Radio Regulations are respected in the increasingly competitive and commercial radiocommunications environment; * in relation to improving the working methods of the Sector, to address options for: - early establishment of user-friendly document exchange capability; - accelerated development of recommendations and improvement in publication mechanisms (reduce unit cost and time to publish, provide wider distribution and electronic availability); - increased use of informatics for the notification and processing of frequency assignments; - a flexible organizational structure in the Radiocommunication Bureau with special attention to the training and development of the Bureau's staff; * to promote the development of a Global Information Infrastructure (GII); * to encourage the participation by non-Administration entities and organizations in the activities of the Radiocommunication Sector. A.5 The Radiocommunication Sector Actions 33. Taking into account the mission, environment, strategy, objectives and priorities the intended actions of the Radiocommunication Sector include: * conduct of information meetings, world and regional seminars and assistance to Administrations with special attention to developing countries, e.g. through the development of Handbooks; * further development of cooperation with other Sectors and organizations and avoidance of duplication; * increased use of informatics and information technologies including the development of an automated spectrum management system; * development of a flexible organizational structure, working methods, modern communications means and Bureau's staff training and development; * recognition that the ITU is an organization providing services to Administrations and members of the three Sectors; * enhanced participation by non-Administration entities and organizations. B. Standardization B.1. The Standardization Sector Mission 34. Consistent with the provisions of the Constitution and Convention (Geneva, 1992), the mission of the ITU Telecommunication Standardization Sector is to fulfil the purposes of the Union relating to telecommunication standardization by studying technical, operational and tariff questions and adopting Recommendations on them with a view to standardizing telecommunications on a worldwide basis. B.2. The Standardization Environment 35. The standardization environment is characterized by: * rapid technological change and shortened innovation cycles; * rapid development and convergence of telecommunications, broadcasting, computer and information technology; * rapid growth of new products and services; * heightened competition between and among network operators, service providers and equipment suppliers; * increasing involvement of "non-Administrations" in the standardization process; * the growing influence of regional standardization organizations and industry fora; * a worldwide shift from a "technology-driven" to a "market-driven" approach to standardization; * a parallel shift from an all-embracing "theoretical" to a "practical" approach with emphasis on rapid implementation; * emergence of global telecommunications operators and systems. B.3. The Standardization Sector Strategy 36. The goal of the Standardization Sector is to ensure that the ITU remains the pre-eminent global telecommunication standardization body. Strategies to achieve this goal include: * adopting a market-oriented approach to standardization; * delivering high-quality products (i.e. Recommendations) on time ("value for money"); * clearly defining the role of the ITU in relation to regional standardization bodies and industry fora; * developing appropriate agreements and cooperative relationships with these standardization partners; * within the ITU-T's area of competence, focussing on high priority standardization areas; * continuing to improve the working methods of the Standardization Sector, including improved and accelerated development and approval of Recommendations; * enhancing participation and involvement by "non-Administration" entities and organizations in the standardization process. B.4. The Priorities of the Standardization Sector for 1995-99 37. The Standardization Sector's priorities for 1995-99 are: * to develop global standards for incorporating the new technologies, services and capabilities in telecommunications networks, e.g. - Intelligent Networks (IN); - Broadband Integrated Services Digital Network (B-ISDN); - Asynchronous Transfer Mode (ATM); - Universal Personal Telecommunications (UPT); - Multimedia Communication Systems (MCS); - Future Public Land Mobile Telecommunication Systems (FPLMTS); - Global Virtual Network Service (GVNS); * to develop global standards required to manage increasingly complex telecommunication networks: - Telecommunication Management Network (TMN); - standards relating to quality of service and network performance; - numbering plans; * to continue to develop and review tariff and accounting principles for international telecommunications; * to continue the review of new and existing work and its distribution between ITU-R and ITU-T; * to optimize cooperation with the other Sectors of the Union and to minimize duplication of effort; * to continue to improve the efficiency of the ITU standardization process; * to continue to cooperate with other global and regional standardization organizations and industry fora to harmonize the development and implementation of global telecommunication standards. C. Development C.1 The Development Sector Mission 38. Under the Constitution and Convention (Geneva, 1992), the ITU Development Sector has a dual role reflecting the Union's status as a United Nations specialized agency and as an executing agency for implementing development projects under the UN development system or other funding arrangements. In all its efforts, the ITU Development Sector is working towards the broad aim that all countries in the world should have effective telecommunication networks and services, based on the most appropriate technology. Its mission is: * to raise awareness of the importance of telecommunications for national economic and social development; * to provide information and advice on policy and structural options; * to promote the development, expansion and operation of international, regional and national telecommunication networks by reinforcing capabilities for human resource development, planning, management, resource mobilization, and research and development, in cooperation with other ITU Sectors, other international and regional organizations and in partnership with the private sector; * to give special attention to the requirements of and provide assistance to the Least Developed Countries (LDCs). C.2 The Development Environment 39. The telecommunications development environment is characterized by the following trends: * the restructuring and liberalization of the telecommunications sector at the national and international level, so that the provision of telecommunication services is increasingly governed by the laws of competition; * overall, the gap between developed and developing countries has narrowed slightly in terms of access to basic telephone services, but has arguably widened where advanced telecommunication services are concerned; * rapid development of telecommunications in some countries, particularly in the Asia-Pacific and Latin American regions, tied to general economic growth; * little progress in other countries, particularly in the Africa region, where economic growth has stagnated and telecommunications has not been restructured; * a change in the UNDP strategy which now emphasizes national execution of development projects rather than international execution through specialized agencies; * a consequent drop in project execution funding which has been only partially offset by a rise in funds-in-trust and voluntary contributions, and consequently has reduced the financial resources available to the Development Sector to discharge its dual role referred to in paragraph 38; * a shift in the global development paradigm from "aid to trade", with a consequent emphasis on policy and regulatory frameworks which create open markets and encourage foreign investment. C.3 The Development Sector Strategy 40. The strategy of the Development Sector is based on three main areas: Direct assistance - The Development Sector provides assistance to countries, in particular developing countries, to strengthen, expand and harmonize their telecommunications networks and services by: * assisting countries to create the necessary policy, strategic and investment environment that will allow and enable the successful development of telecommunications; * assisting the telecommunications sector to develop and strengthen its institutional capacity; * assisting the telecommunications sector to develop plans; * assisting those who are involved in the telecommunications sector to acquire the necessary and appropriate knowledge and expertise in the latest developments in telecommunications. Partnership - In the second area, the ITU Development Sector plays a catalytic and facilitating role in encouraging all the actors in telecommunications to work together in telecommunications development. More specifically, the ITU-D promotes and facilitates the active involvement of developed countries and the international community in the development process by: * working cooperatively with other international and national organizations in order to promote an integrated approach to sustainable development, particularly in rural areas through an Integrated Rural Development (IRD) approach; * working cooperatively with regional telecommunication organizations and with the global, regional and national development and financing organizations; * encouraging the private sector to participate in the activities of the Development Sector; * mobilizing resources in support of telecommunications development projects. Resource Development and Mobilization - including financial and human resources, technology, information and expertize for telecommunications development, through constant action by the Development Sector to: * identify sources of financing; * develop human resources management tools and systems; * develop and manage information databases of interest for the development process. C.4 Priorities of the Development Sector for 1995-99 41. The priorities of the Development Sector are: * implementation of the Buenos Aires Action Plan with emphasis on a special programme of assistance to the LDCs; * acting on Resolutions adopted by the WTDC regarding the activities of Development Study Groups; * further development of the world and regional telecommunication indicators. IV. Management and Personnel Strategies and Priorities 42. To support the strategies and priorities proposed in this report, the Secretariat should continue the process of management reform which was begun in the current plenipotentiary period, following the recommendations made by the consultants and the High Level Committee. Priorities for the 1995-99 period include: * continuing to develop and integrate the strategic planning, operational planning, financial management and performance management systems that have been put in place during the current plenipotentiary period; * continuing to improve the efficiency and effectiveness of the ITU's conference services; * developing and implementing a strategy for electronic and paper publications; * continuing to develop the ITU information systems and services strategy, particularly services such as TIES/ITUDOC which benefit members. 43. The ITU staff are among the Union's most precious resources. To enable the secretariat to effectively assist ITU members in adapting the organization's activities to the rapidly changing telecommunications environment, a global approach should be taken to the development and management of the ITU's human resources within the framework of the UN Common System. Key priorities for the 1995-99 period are: * post classification - the development of criteria which will ensure that posts are classified at levels which will attract highly qualified candidates, by taking due account of - the highly technical requirements of many ITU professional positions which need specialized expertize but do not entail extensive managerial responsibilities; - the important managerial requirements of some other positions, where the need for the relevant knowledge, skills, aptitudes, and experience outweighs the technical requirements; * manning table - the profile of established posts and the distribution of permanent and fixed-term contracts should be reviewed - in general, to achieve a better balance between permanent and fixed- term contracts across the secretariat; - in particular, to achieve a better balance between the situation of staff in the BDT and the other secretariats; * recruitment and promotion - the development and implementation of recruitment and promotion policies and procedures designed - to ensure equitable geographical representation within the ITU ; - to increase the representation of women in professional positions; - to allow for the development of a dynamic work force by creating suitable positions for the entry of recent university graduates; - to ensure career development and internal promotions; * organizational and career development - the strengthening of the organization and the enhancement of career development opportunities through - the implementation of a comprehensive in-service training program, with the provision of the necessary financial resources; - the use of D.2 level positions in the Bureaux and the General Secretariat; - the provision of career guidance, planning and counselling services. Some of these measures are described in greater detail in separate documents to the Plenipotentiary Conference, in particular in Documents PP94/12, 28, 29 and 34. V. Financial Considerations 44. The strategic plan proposed in this report calls upon the ITU to undertake a number of policy and program initiatives in the next plenipotentiary period. This section of the plan outlines the financial factors that should be considered by the Kyoto Plenipotentiary Conference when examining these proposals and presents global options for the 1995-99 period. 45. The Income Side of the ITU Budget: The ordinary income of the ITU comes from three main sources: * assessed contributions of Member Administrations to the ordinary budget of the Union; * assessed contributions of "members" of the ITU Sectors to the ordinary budget of the Union; * support cost income earmarked to cover the cost of technical cooperation projects executed by the ITU Development Sector on behalf of the UNDP; 46. An analysis of income trends indicates that: * assessed contributions from Member Administrations and "members" to the ordinary budget has reached a plateau; income from these sources appears unlikely to grow dramatically and may begin to decline; * UNDP funding has declined precipitously in the current plenipotentiary period. It appears unlikely that this trend will be reversed because of the change in strategy at the UNDP. 47. These income trends are strategically significant and should be taken into account in formulating ITU policies and plans for the forthcoming plenipotentiary period. They must also be placed in perspective. Today, 86 % of the ITU's ordinary income comes from the contributions of Member Administrations. "Small-m" members contribute a further 12%, while the remaining 2% comes from the UNDP and funds-in-trust. However, the contributions of Member Administrations are the only income source which will be highly predictable to delegates at the Kyoto Plenipotentiary Conference. 48. The Expenditure Side of the ITU Budget: The ITU has both fixed and variable expenditures. * 75% of the Union's fixed expenditures are on staff costs. The bulk of the remaining fixed expenses goes towards maintaining and improving physical facilities; * the Union's variable expenditures are mainly related to its program of conferences and meetings. Approximately 20 % of the ITU's total expenditures fall in this class. 49. In considering expenditure ceilings for the forthcoming plenipotentiary period, it must be borne in mind that the overall ceiling cannot simply be extrapolated from the ceiling established by the Nice Plenipotentiary Conference, even under a scenario of zero real growth. This is principally because of differences in the conference cycle between the 1990-94 and 1995-99 periods and because the structure of the BDT which was established at Nice has now been fully implemented. It should also be borne in mind that the global cuts first imposed at Nairobi and renewed at Nice have made it more difficult for the Secretariat, because of the progressive reduction of the means available to it, to serve the needs of ITU members, at a time when the number of Members and "members" has continued to grow and their needs have increased. 50. Against this background, the Plenipotentiary Conference may wish to consider four expenditure scenarios for 1995-99: * Option 1 is based on the 1995 provisional budget. It covers conferences and meetings planned for 1996-99, with zero growth in documentation. ITU-D would remain at the 1995 provisional budget level for the period 1996-99. There would be no step increase for staff costs. * Option 2 includes option 1 plus a step increase in staff costs and a volume increase for documentation in the Radiocommunication and Telecommunication Standardization Sectors; * Option 3 includes option 2 plus increases in the ceiling resulting from reinstatement of the staff expenditures which were cut from the 1995 draft provisional budget as a result of the "global cuts" policy. It also provides additional funds for the maintenance of the ITU buildings as from 1996. * Option 4 contains the same features as option 3 and provides in addition for the full implementation of the Buenos Aires Action Plan. 51. In light of the many changes that are taking place in the telecommunications environment, Members may wish to consider undertaking a comprehensive study of the financial foundations of the Union during the next plenipotentiary period, involving participation by the Members and "members". The scope of the study should cover not only the regular income but also the extra budgetary resources which can supplement the implementation of the strategic plan. The study may also cover cost-sharing of ITU regular activities among its Members. VI. Conclusions 52. Once they have made decisions regarding the policy and program initiatives proposed in this report, delegates to the Kyoto Plenipotentiary Conference will need to consider carefully the financial strategies available to them for funding the ITU strategic plan for the next plenipotentiary period. 53. As indicated in the introduction to this report, the main strategic challenge of the forthcoming plenipotentiary period is to align the activities of the ITU with the changing needs of its Member Administrations, non-Administration participants in the activities of the ITU Sectors, the telecommunications sector, and the world community. The willingness of the ITU's constituents and other interested parties to support the Union and their satisfaction with the services they receive will be the real test of how successfully the strategy recommended in this report is developed and executed. Throughout the forthcoming plenipotentiary period, it will be incumbent on Council to closely monitor the evolution of the telecommunications environment and to adjust the Union's strategy accordingly. 54. In conclusion, the Union's overall strategic goal should be to ensure that the ITU has clearly established its pre-eminence in international telecommunications by the time of the next Plenipotentiary Conference in 1998, and that the ITU is recognized as the global focal point for all matters relating to telecommunications in the global information economy and society of the 21st century. ____________ ____________________ PAGE 2 m:\text\articles\pub\94\strpln-e.doc 04.09.94 - 13:21