UNION INTERNATIONALE DES TELECOMMUNICATIONS
INTERNATIONAL TELECOMMUNICATION UNION
UNIÓN INTERNACIONAL DE TELECOMUNICACIONES
 


Asia TELECOM 93
Singapore, 18 May 1993
 
Regulatory Symposium - Effective Transition Through Regulation
Welcome Address by Pekka Tarjanne
 


Good Morning,

I would like to welcome you to this Regulatory Symposium.  The 
reputation of Singapore for hospitality in the midst of many cultures 
of the world,  will serve as a stimulus for the exchange of views and 
experiences on the important subject of regulations.

We are all aware that the role of regulation in today's business 
environment is becoming increasingly important.  No nation or society 
can function without regulations, not even telecommunications 
regulations; the alternative to having none is chaos and stagnation.

In telecommunications as in other businesses,  regulations allow fair 
treatment for all players.  While the customers demand that 
telecommunications become more responsive to their needs, the players 
demand greater opportunities to do business and to compete in an 
increasingly global market.  They need to know the rules by which 
they will operate and want to be assured of fair treatment.

Experience has shown that one way of responding to these diverse 
demands is to restructure regulations and liberalize the 
telecommunication market.  In this way,  more players can join in the 
development and provision of services and the market is open to 
competition.  The end result is more innovation of technologies,  
more investment and more economic growth.

Whatever form restructuring takes, policy-makers must establish 
regulatory environment that attracts investment and expertise and 
promotes rapid expansion.  The usual first step in liberalisation is 
to separate the regulator from the operator.  Unless this is done,  
there is the danger that regulations may end up serving the interest 
of the organization -  the operator, and  not the best economic 
interests of the country.  Also competitors will not have the 
confidence to enter the market if there is no independent regulator. 

What place does privatization have in this environment of 
liberalization of  telecommunication services?  In many countries,  
liberalization is accompanied by privatization and competition;  and 
what are the advantages?  It is a fact that private companies are 
well placed for mobilizing resources to finance investment.  They are 
also innovative in bringing new technologies and services to the 
market.  

The winds of deregulation and privatization are now blowing across 
the continents,  including the Asia-Pacific region.   The question 
facing each country today is not whether telecommunications 
liberalization will occur but rather to what extent.

It is important to note that any regulation, deregulation, 
reregulation, liberalization or  privatization introduced in a 
country must serve to satisfy the needs of users, to stimulate 
innovation,  to provide more choice of services,  to improve the 
quality of services,  to lower prices and to provide fair 
competition.  The end result  should be to maximize the benefits to 
users.

As to the different views and different models concerning these 
objectives and expectations and how they should be achieved, we shall 
benefit from the experience of the speakers and also from the 
comments of the participants at this symposium.   

In conclusion,  I would like to pay tribute to Mr.  Stewart White,  
Chairman of the Programme Committee and the Members of the Committee 
for their excellent work in producing a high quality programme for 
this symposium - not forgetting the Forum Secretariat for a job so 
far well done!

Thank you!