Restructuring and reform of the telecommunication sector: a top priority…

Ahmed Nazif
Minister of Communications and Information Technology
Arab Republic of Egypt

In most countries of the Arab region, restructuring and reform of the telecommunication sector have become a top priority issue enjoying full government support. This support is key in facing the challenges encountered in the reform process and in building modern telecommunication and information technology infrastructure.

Contributing strongly as it does to the development of other sectors, telecommunication has become a substantial factor of economic growth, and is essentially vital to the improvement of society in the areas of education, health, the environment and in almost every aspect of daily life.

The evolving technical capabilities of digital technology tend to change the operating procedures, the commercial character of telecommunications and the international environment; hence the need for a structure that is adapted to these situations and functions. The new network concept introduced to allow the transmission of all voice, data and video applications will, because of its adequate capacity and ability to convert different systems and different telecommunication protocols, finally lead to the convergence of information technology, tele-communications and broadcasting.

In order to assess the obstacles that prevent the development of telecommunications and information technologies in the Arab region, and to identify the means to address this hindrance within the framework of the strategies and programmes to be tabled at the upcoming World Telecommunication Development Conference (WTDC-02), the Regional Preparatory Meeting for the Arab States was held in Alexandria in October 2000 at the invitation of the government of Egypt. The meeting was organized by the ITU Telecommunication Development Bureau (BDT) and brought together more than 200 participants from 23 countries. Participants discussed and identified priority areas of concern to the countries of the region, and agreed on the strategies to be adopted and pursued. Top priority issues are presented in this article.

Policy and regulatory issues

Regulators in the region are facing a number of issues such as the process for the establishment of sound regulatory bodies, and the different regulatory functions to be entrusted to them. The regulation process is not a single event; nor can it be considered as a single set of rules. Rather, it is an on-going process that changes as the market develops and involves a series of difficult decisions, the nature of which changes with time.

Given that the number of countries in the region planning to establish a regulatory body is expected to rise by at least 13 in the coming few years, the Alexandria meeting considered regulatory issues to be a high priority for the Arab region and suggested having this item placed on the agenda of WTDC-02. Furthermore, BDT was requested to provide advice and support to the countries of the region based on the regulatory status of each country. BDT was also asked to carry out studies on quality of service (QoS) and other issues of benefit to end-users.

Financing and investment strategies

Huge investments are needed for the development of efficient telecommunications infrastructure in the Arab region. However, the majority of Arab countries will no longer be able to fully finance their requirements from traditional resources, namely internal cash generation and government-backed funding, as most governments are facing budgetary constraints. Alternative solutions have to be sought, and private investment must be encouraged. A growing number of developing countries have already involved the private sector through various methods, including resource and risk sharing such as the build-operate-transfer (BOT) and other revenue-sharing methods. There is need for:

• Assistance to telecommunication network operators in developing tools to determine costs, their calculation and their allocation to services.

• Advice on means of attracting investment.

• Assistance in establishing a macroeconomic, legal and regulatory framework conductive to investment.

• Assistance to Member States engaged in planning privatization of their telecommunication sector.

• Studies to assess the impact of tariffs on usage.

• Adoption of a coordinated policy in respect of alternative traffic routing, and making the necessary efforts to adapt international telephone services tariffs.

Network development

The telecommunication industry has undergone enormous technological changes in the past decade. The convergence of computers, telecommunications and information technologies is expected to bring new telecommunication products and services progressively within reach of the global population. In addition, with the integration of technologies, telecommunication administrations are under growing pressure from large national and international users requiring access to new services.

An overview of emerging technologies was considered in order to evaluate cost-effective solutions for high-capacity networks, taking into account the existing infrastructure in the various countries. There is need for:

• Advice on broadband access solutions such as very high-speed digital subscriber line (xDSL) systems and ATM-based passive optical networks (A-PON).

• Advice on data security and privacy solutions for new networks.

• Introduction of telecommunication management network (TMN) to improve network monitoring, control and management. New technologies should be taken into account to ensure interoperability and interworking between existing and new networks.

Internet and new services

	A section of the international operator’s room in Muscat Photo: Ministry of PTT, Oman (ITU900030)
	DSL standards make it possible to introduce systems that provide affordable access to the Internet, teleworking, distance learning and multimedia services Photo: PhotoDisc (ITU000039)

During the past few years, Internet has added an enormous potential for social, cultural and economic development. Introduction of IP-based services covers various applications of great social, cultural and economic interest such as telemedicine, tele-education, e-commerce and telebanking.

The Alexandria meeting recognized this issue as one of the priorities for countries in the region and identified the need for:

Organizing appropriate forums to facilitate information sharing and produce comparative studies on Internet experience in the region.

• Advice on evolution from circuit switched to IP-based networks.

• Developing more Arab content/portals in collaboration with governments, Internet companies and multilateral and bilateral organizations.

• Provision of training and education to develop skills to use the Internet, and raising Internet awareness.

• Advice on policy, technical and economic aspects of IP telephony.

• Advice on development of e-commerce toolkits for policy-makers and businesses.

Wireless communications

The past decade has been marked by considerable development of telecommunication infrastructure, in particular the massive use of radiocommunication media. Today, wireless infrastructure covers a large part of the radio-frequency spectrum, along with new technologies in the field of terrestrial and space telecommunications, fixed and mobile services and sound and television broadcasting. This trend will obviously continue and accelerate. And so prompt creation of the most appropriate conditions is needed to prepare countries in the region to take their place in the global information society. In particular, the meeting underlined the need for:

• Preparation and dissemination of models that identify the most appropriate radiocommunication solutions likely to meet present and future needs.

• Provision of training to specialists in engineering and strategic planning, information networks and broadcasting systems.

• Advice on the establishment of organs for planning and monitoring the use of the radio-frequency spectrum.

• Assisting countries in the migration process from second generation mobile to IMT-2000.

• Assessing the implications of WRC-2000 for radio and television service via satellite in the KU/KA bands.

Enhancing capacity building

The meeting recognized the challenges of training and human resources development for the Arab region in the near future. It is well recognized that regardless of how perfect a new structure may be, the desired goals will not be achieved unless the human resources that will implement it and use it are well prepared for their task.

In this respect, the meeting highlighted the following priorities:

• Assistance to training centres in adapting their products and services to the changing needs of the telecommunication organizations.

• Assistance on the establishment of complementary training programmes, human resources development and cultural change in telecommunication organizations to better meet the challenges of modernization.

• Identification of the main needs in the region in order to define the key programmes to be developed and delivered in a timely manner.

International and regional cooperation

The meeting identified the pressing needs of the least developed countries (LDC) in the Arab region and called for immediate action to:

• Mobilize additional resources for LDCs (e.g. Telecom surplus, Sector Members in the region).

• Focus special assistance on one or two LDCs at a time.

• Strengthen relations with regional and international organizations and financial institutions in order to further Arab region development activities.

• Create a database in cooperation with ITU and other regional organizations concerned, such as the League of Arab States and ESCWA.