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Competitive Markets Required to Bridge Digital Divide

Telecommunication regulators from around the world delivered a powerful message to world leaders convening in Geneva for the World Summit on the Information Society (WSIS). The regulators identified a series of steps nations can take to bridge the digital divide. They called upon countries to open their information and communications technology (ICT) sectors to greater competition. They further identified the kinds of regulations and practices needed to promote universal access to ICT services.

The regulators from more than 80 countries met in Geneva 8-9 December to participate in the 4th annual Global Symposium for Regulators (GSR) hosted by the International Telecommunication Union (ITU). Participants included international organizations such as the European Commission, the World Bank and the World Trade Organization, as well as academic and non-governmental organizations. Participants prepared a blueprint of what should be done to ensure that global access to the tools of communication is extended to all of humanity. The GSR Universal Access Best Practice Guidelines will be delivered to the first World Summit on the Information Society in Geneva 10—12 December.

"Bridging the digital divide can be achieved," said Hamadoun I. Touré, Director of ITU’s Telecommunication Development Bureau (BDT). "Developing countries have all the tools at their disposal now to make the universal access dream a reality," the BDT Director added. "The measures identified by the world’s regulators are entirely feasible. But they need the full support of governments at the highest level. I have do doubt that this support will come from the heads of state and governments participating in the World Summit on the Information Society."

Ms. Muna Nijem, Chairman of the Board and Chief Executive Officer of the Telecommunications Regulatory Commission (TRC) of Jordan, and also Chairperson of the 2020 GSR, added, "The central focus of our GSR meeting is Universal Service and Universal Access. A modern vision that we intend to articulate is the key role broadband deployment can play in meeting the Universal Service/Access goals. Here, we cannot stress enough the need for the proper enabling environment, which includes the establishment of an independent regulator and the recognition of the key role that the regulator plays in the implementation of Universal Service/Access policies. Our goal is that this enabling environment will allow the private sector to exploit new profitable opportunities to offer services that expand Universal Service/Access in ways that eliminate the need for government subsidies."

The GSR agreed on a list of best practice regulatory guidelines for achieving universal access. The guidelines call for support for regulatory reform at the highest level of government. This means treating ICTs as a tool for development rather than a source of government revenue.

Some of the key measures backed by national regulatory authorities include technologically neutral licenses (authorizations to provide services that do not distinguish on the basis of technology used, e.g., fixed line or mobile cellular) that enable service providers to use the most cost-effective technology to provide services, and reducing regulatory burdens to lower the costs of providing services.

The regulators agreed that the lessons learned from developing countries’ initial experiences with mobile cellular services should now be applied to a broader range of ICT services to foster universal access.

These lessons include providing services in a competitive framework, using new technologies that offer both innovative services and affordable pricing options (e.g., pay as you go options such as prepaid cards) to a wide range of end users.

Regulators gave the nod to innovative, low-cost technologies that will achieve long-term financial self-sustainability, greater use of public access options that respond to the needs of local users, and the promotion of government measures such as tax incentives, reduced customs tariffs and national manufacturing of ICT equipment. The blueprint identified by regulators would lead to greater competition, more open markets, and spark investment.

The measures also recognize that further steps may be needed to achieve ubiquitous access to ICTs, for example, in rural areas or to users with special needs. Universal service funds are one option that complements regulatory reform when developed as a mechanism within a broader market-oriented approach to achieving universal access.

Mr. Ernest Ndukwe, Chief Executive Officer of the Nigerian Communications Commission, said that his country has witnessed "a remarkable rise in the use of ICT services following the introduction of competition. The number of telephone lines has grown by over 500% within two years of opening our market to competition," Mr Ndukwe said. "This could only have been achieved through regulatory reform."

"India has been adding about 2 million new mobile ICT users a month this year, 5 times last year’s figure and 12 times of the 7 year’s average," Mr. Pradip Baijal, Chairman, Telecom Regulatory Authority of India, said in backing the GSR Universal Access Best Practice Guidelines. "The tariffs have come down to half of the previous year’s levels and correspondingly the growth in mobiles is 12 times the earlier year’s average. We hope to build on this success by unifying the entire license regime and converting it into an automatic license based on published guidelines and relying on accepted regulatory principles" said India’s Chief Regulator. "As you know TRAI’s proposals in this regard has been given the green light by the Cabinet. We expect even more market growth once the entire Unified Licensing Regime is implemented", he predicted, adding that the TRAI is working to further reduce the regulatory burden, remove the differences between fixed and mobile services (already blurred on account of technological developments) and continue aggressive competition between operators.

Mr. Luiz Guilherme Schymura de Oliveira, President of Anatel, said that, "Brazil has achieved great success in expanding ICTs to its citizens by first identifying national universal service objectives that include both private and public ICT access. Brazilian Universal Obligations have provided individual connections to all villages with more than 600 inhabitants, and public telephones to all villages with more than 300 inhabitants. In addition, Brazil has also established a Universal Service Fund which is going to be used in providing broadband connections for public schools by the end of next year."

FCC Commissioner Ms. Kathleen Abernathy emphasized that the goal of universal access is "to ensure that consumers have a choice of innovative telecommunications services at affordable prices." Ms. Abernathy advances this goal by "having faith in the market; ensuring transparency by adopting clear rules that are vigorously enforced and educating consumers about regulations so they can make intelligent choices."

Source: ITU