ITU/94-4
9 March 1994
Original: English
World Telecommunication Development Conference to propose series of reforms to national decision-makers
Four areas have been identified by the WTDC 94 Support Group for possible reforms by Governments and Telecommunication Administrations: structure of the telecoms sector, regulatory framework, general policies and financing.
Acting as a technical preparatory committee, the Support Group, on the basis of proposals received from the membership, drafted a resolution on telecommunication policies and strategies which embodies these four areas and provides guidelines when defining and implementing telecommunication development policies. The draft Resolution (DT/7) is one of three to be tabled to the forthcoming World Telecommunication Development Conference (Buenos Aires, 21–29 March 1994) by the Support Group. 
Structure of the Sector
Four reforms are proposed with a view to stimulating investments, increasing operating efficiency, broadening the supply of services and improving service quality.
They consist in:
	separation of the postal and telecommunication services in order for their respective policies to be more specific to the requirements of each branch
	separation of the regulatory and operational functions for a more efficient management based on customers' needs for more cost-effective services
	creation of a regulatory body to ensure objectivity and transparency of decisions regulating the sector and for the development and impartial supervision of competition rules
	provision of financial and management independence to operators to enable them to develop commercial policies adapted to market requirements
Regulatory framework
In establishing a telecommunication policy, the draft resolution calls for a clear and consistent regulatory framework to ensure, on a stable basis, the long-term development of the sector while facilitating technological innovation, infrastructure modernization, service diversification and improved quality of service. Such framework would also enable the provision of basic services in rural and remote areas at a reasonable price and allow sufficient flexibility to adapt to technological and commercial changes and to the growing market segmentation.
General policies
The proposed general telecommunication development policy rests on six principles. First of all, access to all basic telecommunication services, at a reasonable charge, should be ensured while harmonized development of networks and services should aim at reducing regional disparities and at improving networks interoperability worldwide. The introduction of advanced technologies should also be encouraged to develop new services capable of meeting the requirements of the economic sector and gradually moving to cost-based tariffs. A right mix of advanced technologies such as satellite, cellular telephone systems etc, could also be used to offer services in rural areas at an acceptable price. Tariff reforms would on the other hand generate increased revenues, foster further investment and stimulate greater competitivity.
To achieve these objectives, the draft resolution emphasizes the possible benefits to be derived from opening up to competition certain markets such as valued-added services, terminal equipment, new technologies-based services but also recognizes the desirability, of maintaining a certain balance between an all-competitive market and monopoly of some services. It also highlights the need for the development of local equipment industries.
Financing
To meet the considerable investment needs, it is proposed, when considering possible financing policies such as Official Development Assistance (ODA) or Build-Operate-Transfer (BOT) schemes for example to take account of factors such as the status of the operator  (state-owned enterprise, publicly, jointly or privately owned), its degree of access to multilateral, bilateral and private sources of financing, regulatory framework, tariff policies and pricing regulation and the degree of liberalization in foreign investments (restriction on foreign ownership, repatriation of profits, exchange control).
"In a constantly changing world, one which is taking giant strides towards out-and-out liberalization, it is difficult to imagine any development without the support of telecommunications" stated one of the participants to the Support Group. "To be viable", he continued, "any development project, regardless of the sector it covers, must of necessity fall within the context of sustainable development. The ITU should emphasize this aspect of the issue by adding a new dimension to the concept of sustainable development in the framework of the plans of action it develops and implements. This approach would benefit from being incorporated in a universal strategy such as the one defined in the United Nations Conference on Environment and Development Agenda 21 or UNCTAD Action 21 where international relations are based on universally acknowledged interests and needs", he concluded.
The WTDC has an ambitious agenda: to provide the right answers, canvass ideas in ways which can inspire policy-makers and provide the needed guidance to globally address these new challenges.