STATEMENT OF BRUNEI DARUSSALAM
by Dato Abdullah Bakar
Permanent Secretary, Ministry of Communications

Mr. Chairman, Secretary General Mr. Utsumi, elected officials of ITU, distinguished delegates, ladies and gentlemen.
Mr. Chairman,

Let me join the other delegates in congratulating you on your appointment as the Chairman of this Plenipotentiary Conference.

1) GLOBAL INDUSTRY LANDSCAPES

Our industry has undergone profound changes and developments and these have been eloquently and exhaustively articulated in Para 2 of Document 24 -E on the Draft Strategic Plan 2003-2007, quoted below:

• i. Significant shortages, both in telecommunication infrastructures, and in capability to access information resulting from several factors, including associated costs;
• ii. Expansion and diversification of telecommunication and radio communication networks and the challenge of securing and maintaining interoperability among telecommunication services, and between radio-based and fixed-line services;
• iii. The convergence of technological platforms for telecommunication, information and computing;
• iv. Digitization of broadcasting and increasing interactivity, new technologies, broadband applications, and new uses for existing technologies;
• v. Further moves towards market liberalization including the opening of markets to competition, greater private sector participation, and the growing role of regional organizations;
• vi. A market need for appropriate, high-quality, global standards which are developed rapidly, including those which ensure global connectivity and reliability of telecommunication networks;
• vii. Increased awareness of the role of telecommunications as a tool for the overall development of society;
• viii. A need for increased use of the six working languages of the Union to facilitate effective participation in its work by all countries;
• ix. Continued development of mobile telecommunications, which is one of the fastest-growing segments in the history of telecommunications;
• x. Continued growth of the Internet, and the creation and development of applications attached to its use, with a corresponding increase in IP access and in IP backbone networks;
• xi. Continued separation of operational and regulatory functions, and the creation of many new independent telecommunication regulatory bodies; and
• xii. Limitations to the financial and human resources available to support the Union's activities.

Meanwhile, it has been generally accepted that liberalization in telecommunications services will bring enormous benefits to all the stakeholders in our industry- consumers, governments, regulators and investors.

In a liberalized telecommunications industry, it is expected that consumers will have choices of complete services at competitive prices. Governments will be able to efficiently allocate the scarce resources such as spectrum, capital, right of way and human capacity. Regulators will enforce constant and transparent licensing and regulating regimes. Investors will have the confidence in these transparent and regulation regimes and be encouraged to invest in such an environment.

2) LOCAL INDUSTRY SITUATION

In Brunei Darussalam, a small country with a population of 300,000, we have achieved an impressive household penetration of more than 95% for fixed telephony. The mobile penetration is more than 40% - in fact the number of mobile subscribers have overtaken the number of fixed line subscribers more than two years ago. We have already installed a nationwide high capacity digital network.

Under the old industry performance measurement, this performance should be something that we can be justifiably proud of, even for a small country.

Internet penetration, however, is still relatively low at about 20%. This gap illustrates the disparity between basic access and Internet usage, thus clearly posing a cause for concern in our economy. Simply put, even within a small country, wide digital divide exists in terms of age and rural and urban socio-economic conditions.

In working towards achieving an information society in the country, we see the urgent need to address such situation. Given below are some of the initiatives we have taken.

An ICT Development Fund of B$0.7 billion has been allocated to support ICT development in the country as ICT has been identified as a potentially viable growth sector in Brunei Darussalam. This includes expansion and upgrading of nationwide network and corporate infrastructure, E-Government, E-Education, E-Health and the setting up of the Brunei Cyber Park.

New laws have been enacted to stimulate further development in the ICT industry. This includes the Telecommunications Successor Order 2001, which will enable the corporatization of Jabatan Telekom Brunei. A new company, Telekom Brunei Berhad (TelBru), has been formed to succeed JTB and is expected to commence operations by 1st April 2003. Another development is the formation of the Authority for Information and Communications Technology Industry (AiTi), under the Authority for Information and Communications Technology Industry Order 2001. It will be an independent statutory body, responsible for regulating and developing the ICT industry in Brunei Darussalam.

In implementing our liberalization and corporatization policy, we have opened up telecommunications services for competition. In 3G mobile licensing, the Government has already allocated the appropriate 3G spectrums for service providers. We have decided to award two 3G licenses - one to the incumbent mobile operator and the other to be decided later.

3) ISSUES OF CONCERN

There are three issues of great concern to us in the new information society: -

i) Positive Use of the Internet

Closely related to issues of digital divide is on the need to promote the positive use of the Internet. It is an undeniable fact that the Internet holds a strong appeal to youths and students, whose resilience need to be strengthened against any negative contents they may find on the Internet, such as online gambling.

It was estimated that 1500 gambling sites have sprouted across the globe, from 650 casinos on the Internet two years ago, covering bets from approximately 4.5 million people worldwide. Financial fraud on the Net costs business and consumer $22billion annually;

ii) Charging Arrangement for Internet Services

On the issue of Charging Arrangement for Internet Services, a costly arrangement would mean our Internet Service Providers would have to run their businesses at a high fixed operating cost - hence, directly translating to a relatively high Internet Services Charges to the Consumers. Being a small country, a sustainable charging model will help our efforts to narrow the digital divide; and

iii) Network Security

Security breaches may cost Governments or companies huge amounts in lost opportunities or productivity, so both Government and industry sectors need to adopt a more pro-active attitude towards IT security. Information Week & Pricewaterhouse Coopers have estimated a global loss of revenue resulting from security breaches, virus attacks and downtime of about US$1.6 trillion a year.

4) FUTURE HOPES AND OUTLOOK.

ITU has been indispensable to the Members and have been instrumental in ensuring the interconnectivity of the world telecommunications network. A developed and reliable telecommunications network has been called the engine of growth in the old economy.

In the new "Knowledge Based Economy", a vibrant and thriving info- communications industry is the prerequisite for national economic growth.

ITU Plenipotentiary Conferences have been highly noted for the profound achievements in providing universal awareness and initiatives for the growth of the industry for the benefits of Members. 1982 Plenipotentiary Conference was remembered for the creation of The Maitland Commission and The Missing Link Report; 1989 Plenipotentiary Conference was noted for its work on development; 1994 Plenipotentiary Conference was recognized for the work on standardization; 1998 Plenipotentiary Conference was acknowledged for the introduction of new classes of members and the participation of private sectors.

In the opening remarks of The Secretary General during the first Plenary Meeting of this conference, he mentioned the euphoria surrounding the dot.com phenomena and the industry's unexpected response. We also heard his call for "Global Policy Perspective".

We are encouraged by Draft Strategic Plan 2003-2007 appearing as Doc 24-E. We hope the plan contained in this document and the realization of " A Global Policy Perspective" will become the achievements of the 2002 Plenipotentiary Conference held in this historic city of Marrakesh.

Thank You.