building the regulatory foundations for development in network economies professor william h. melody...
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Building the Regulatory Foundations for Development in
Network Economies
Professor William H. MelodyManaging Director
LIRNE.NET www.lirne.net
First ICT Policy and Regulatory Workshop
COMESANairobi, Kenya, 13 –16 August 2002
Characteristics of 21st Century Economies
• Driven by the services sectors• Founded on information/communication
networks – next generation Internet• Dependent on effective reforms in the
telecom sector – information infrastructure• Strengthening links among local, national,
regional, internatonal networks and markets
Stages of Telecom/Information Sector Reform
• Telecom Liberalization (Participation, Univ. Access)
• Expanding Network Capacity (Broadband)
• Preparing the Network Foundation for New Services
• Developing New Services - “killer applications!”
• Applying Services Productively in Different Societies
• Telecom Reform & Regulation – Key Driver for
Implementing Policy Reforms
INFORMATION INFRASTRUCTURE
Regional Development
Finance/ Banking
Disaster Management
Travel & Tourism ManufacturingMedia & Cultural Sectors
Health/Medical Government Services Education/Training
Applications
Electronic Services(Pay TV, VAS, Internet)
Multimedia, etc.(Public, User group, Private)
ContentBroadcast
MediaFilm
LibrariesSoftware
etc
Interactivity(Instant & Delayed)
VoiceData
SoundGraphics
VideoTelecommunication
Facilities Network(Information Superhighway)
Computing / Information Technology
Telecommunication Equipment Manufacturing
Equipment Supply
TelecomInfrastructure
ServiceDevelopment
Competitive Markets
Monopoly/duopoly/oligopoly Competitive Markets
Internet
VAS
Databases
NetworkManagement
TelecomEquipment
ComputerHardware
Software
ConsumerElectronics
PTOs
The telecom sector value chain
Convergence Sectors Drivers of Convergence
•Technology
• Industry-Supply
• Market-Demand
• Policies/Regulation
•Industry Specific
•Convergent
Applications
• Finance
• Commerce
• Education
• Health
• Publishing
• Manufacturing
• etc.
Content
Telecom
Computing
The Dimensions of Convergence on the Information Infrastructure
Criteria for Economic Growth
Technologies
Policies
Markets
Applications Services
Regulations
Regulation: Catalyst for, or Constraint upon Growth?
Progress with Telecom Reform
• Now more than 110 Countries with Separate Telecom Regulatory Authorities
• WTO Commitments to Liberalization• Industry Specific Focus of Reforms• Successes, Failures, Unanticipated
Difficulties, Continuing Delays• Regulatory Reform is Proceeding at a Slower
Pace than Technology Development or Market and Service Potential
Progress with Telecom Reform
• Regulation is the limiting factor constraining growth• It is not a simple matter of removing regulations or
eliminating regulators• Sound regulatory foundations are needed to attract
investment, foster applications of new technologies and development of new services.
• The speed of regulatory reforms must increase and they must be directed to providing a foundation for Network Economies
World Dialogue on Regulation for Network Economies
Mission: • to facilitate an international dialogue that
generates and disseminates new knowledge• on frontier issues in regulation and
governance• to support the development of network
economies
World Dialogue on Regulation for Network Economies
Project Initiator:• infoDev (World Bank)Foundation Partners:• infoDev • LIRNE.NET Universities (TU Delft; TU Denmark)• ITU Telecommunication Development Bureau
(BDT)• Ford Foundation and US SSRC• Others
World Dialogue on Regulation for Network Economies
Core Tasks:• Dialogue on Interactive Web Site,
www.regulateonline.org • Country Case Studies & Research
Reports• Forum Discussions among Experts• Wide Dissemination in Print & Electronic
Form
World Dialogue on Regulation for Network Economies
Dialogue Theme 2001-2002:
• The Next Step in Telecom Reform:
ICT Convergence Regulation or
Multi-sector Utility Regulation ?
World Dialogue Theme 2001-02
ICT Convergence• digitalization of the network• mobility• next generation Internet• e-commerce• media integration• restructuring of industries
World Dialogue Theme 2001-02
ICT Convergence Regulation
• access to communication channels and access to content
• new issues of competition and monopoly• privacy, security, IPR• reducing digital divides?• can content regulation be avoided ?• the most effective role for national telecom
regulators ?
World Dialogue Theme 2001-02
Multi-sector Utilities
• mergers across utilities• telecom, cable TV, electricity, gas, water,
transport• rights of way, duct sharing & co-location • universal billing• common management skills
World Dialogue Theme 2001-02
Multi-sector Utility Regulation
• to match the operators• efficiency across common functions• wider application of limited skills• independence from dominant firms?• technological convergence – power line
communication• other?
World Dialogue Theme 2001-02
The Next Step in Telecom Reform ?• Defining and Implementing Regulation to
Facilitate Growth in Network Economies• Establishing the Options, Priorities and
Boundaries of Regulation• Shaping the Most Effective Role for
Competition• Determining a New Role for Regional
Regulation
World Dialogue Theme 2001-02
The Next Step in Telecom Reform?
• The Challenge: Creating regulation that leads rather than lags technology and market developments, providing a catalyst for growth in network economies?
World Dialogue on Regulation for Network Economies
• Participate in the Dialogue; review and comment on the research, www.regulateonline.org - from 3 January 2002
• For more information contact Merete Henriksen, WDR Coordinator, [email protected] Tel. + 45 4525 5178; Fax + 45 4596 3171
LIRNE.NET, www.lirne.net • A Strategic Collaboration for applied research, training, policy and
regulation support, relating to information infrastructure and new network economy development
• Center for Tele-Information (CTI), Technical University of Denmark, www.cti.dtu.dk
• Economics of Infrastructures, Delft University of Technology, Netherlands, www.ei.tbm.tudelft.nl/
William H. Melody
• BS, MS, PhD, D. Eng.(hon)
• Managing Director, LIRNE.NET
• Professor, Economics of Infrastructures, Delft University of Technology, The Netherlands
• Guest Professor, Center for Tele-Information (CTI), Technical University of Denmark
• Visiting Professor, London School of Economics, United Kingdom
• Visiting Professor, LINK Centre, Wits University, Johannesburg, South Africa
• Contact: email: [email protected]