Presentation on theme: "Toward a Strategic Plan for Telecommunications Services in CARICOM"— Presentation transcript:
1 Toward a Strategic Plan for Telecommunications Services in CARICOM Hopeton S. Dunn, Ph.D.Director, Telecommunications Policy and Management Programme (TPM)Mona School of Business, UWI, Mona
2 Overview of Presentation Status of Regional and Global EconomyDefinitions and ScopeGlobal and Regional Trends in TelecomTelecommunications Landscape in CARICOMRegional Telecom Legislation and PolicyGlobal and Regional Policy FrameworkKey Issues and ChallengesThe Strategic Planning FrameworkApproaches towards developing a CARICOM StrategyClosing Thoughts
4 Status of the Global Economy Global economic activity for 2009 still set to contract by 1.4%In over 25 developing countries, investment growth in the final quarter of 2008 fell by an average of 6.9%IMF has increased its forecast of growth rate by 0.5% to 2.5% for However growth will be sluggish and unevenSources: Prospects for the Global Economy (2009). A World Bank Publication . World Economic Outlook (updated) (2009). IMF PublicationSource: Prospects for the Global Economy (2009). A World Bank Publication . World Economic Outlook (updated) (2009). IMF Publication
5 Impacts of Economic Crisis on CARICOM Countries US and other major markets for CARICOM exports are now in recessionTraditional exports (aluminum, oil, bananas, sugar and rice) suffering decreasing demandOverall major fall off in tourist arrivals (2009)Anguilla (-24.2%)Antigua and Barbuda (-27.7%)Barbados ( -17.4)Montserrat (-12.2%)Cruise Ship passengers arrivals down (between 2008 and 2009)Source: Clegg (2009). The Caribbean and the Global Financial Crisis: Implications for Domestic Politics and Foreign Policy; Caribbean Tourism OrganizationSources:
6 Growth of Global Services Economy Source:Source:
7 Growth of Services in Selected CARICOM Countries Balance of services means the difference between exports and imports of services. The line graph above is therefore saying that most CARICOM countries are NET EXPORTERS of services, which contrasts starkly with exports of goods, particularly in Jamaica where we are net importers of goods.Source: CARICOM Regional Statistics
9 Increased Competitiveness through Telecom Services Increased recognition and emphasis on Telecoms and ICTs as one of the major drivers of economic growth and development, with a focus on access and affordability, across the populace;High voice telephony penetration but low Internet access and connectivityRecognition of the rapid contraction of conventional agricultural export crops and limited manufacturing production within the region
10 Definitions and Scope - WTO At the WTO, Telecommunications Services defined based on two categories:1 - Basic Telecommunications include private and public services that involve end-to-end transmission of information and provided through a network infrastructure, including:Voice telephone servicesPacket and Circuit switched data transmission servicesTelex and Telegraph ServicesFacsimile ServicesPrivate leased circuit services
11 Definitions and Scope - WTO 2- Value-Added Services, where suppliers “add value” to the customer's information by enhancing its form or content or by providing for its storage and retrieval. Services include,Electronic MailVoice MailOnline information and database retrievalElectronic Data Interchange (EDI)
12 Definitions and Scope – Telecom Services Telecommunications services must be recognized as not being limited to an industry, but as a key component to the development of other industries in the matrix of social and economic development, such as Manufacturing, Banking and Finance. Telecommunications services do not refer only to infrastructure and hardware but also to data, information and knowledge and the associated human resource skills that are required.
13 Definition and Scope Telecommunications Services Infrastructure ICTManufacturingBusiness/FinanceOther Productive SectorsHuman Resource Skills/KnowledgeHardware/Software/Data/ Information
14 COMPETITION IN TELECOM SERVICES – MAJOR TELECOM PROVIDERS BahamasFlow (Cable Bahamas), BTCHaitiDigicel, Conatel TelecoHaitelAntiguaDigicel, LIMESt. Kitts and NevisDigicel, LIME, OrangeBelizeDigicel, Belize Telecom Ltd.SpeednetMontserratLIMEDominicaDigicel, LIME, OrangeJamaicaFlow, Digicel, LIME, ClaroSt. LuciaDigicel, LIMEAntilles CrossingSt. VincentDigicel, LIMEBarbadosDigicel, LIMETeleBarbados,Antilles CrossingGrenadaDigicel, LIME, FlowTrinidadDigicel, Flow, TSTT, LaqtelGuyanaDigicel, GT&T, Cel StarSurinameDigicel, Telesur, RTBGAdapted from Stern, 2006, Promoting Investment in ICTS in the Caribbean. Updated where information is available
15 Global and Regional Trends in Telecoms Communications intensive economies, with high demand for new, mobile technologies in support of the increasingly culturally based service economy;Increased demand for bandwidth to satisfy connectivity needs;Moves towards regional harmonization in regional policy and planning; andIncreased telecommunications and ICT investments in the region since 2000
16 Global Advancements in Telecom Focus on mobile broadband and 3G / 4G servicesIncreasing demand for high-end wireless technologies such as WiMax, mobile video calling/conferencing
17 Next Generation Networks (NGNs) Rapid growth and demand for NGN services which afford the convergence of a host of services on the computer, laptop, netbook or mobile phone including:Media servicesReal time e-transactions and other business servicesMobile marketingGPS / GIS and Security servicesSocial Networking and virtual gaming
18 Telecommunications Landscape in CARICOM Countries are at different stages on the ICT development continuumSource: Nurse. L.A. PhD. Digital Diaspora Network for Caribbean and ICT Development in CARICOM countries, 2003.
19 Telecommunications Landscape – Digital Access Index, ITU, 2003
20 Other Digital IndicesCountries ranked in the Economist Intelligence Unit’s E-Readiness Index, 2008Jamaica – 49th – 5.17Trinidad and Tobago – 50th – 5.07Digital Opportunity Index (ITU, 2007)Barbados 27thJamaica 55thTrinidad and Tobago 59thSt. Vincent 69thGrenada 71stSt. Lucia 73rd
21 Preliminary SWOT Analysis Strengths:- Basic Core of Highly Skilled Professionals- Competitive Wage Structure- Cultural and Creative EdgeWeaknesses: - Poor intra-country broadband connectivity - Resource availability and allocationOpportunities:- Proximity to US and Canada - Lower barriers to entry - Wider market reach facilitated through technology - Large Caribbean DiasporaThreats:- Inadequacies in the policy environment- Global Economic Downturn
22 “The most important factor that led to America’s stunning success in information technology was not the free market but government regulation… These actions opened the door to competition and lower prices. More important, they changed the industry’s structure, replacing monoliths with smaller, specialised companies which have to work with others with complementary skills. The result has been tremendous innovation.”Economist.com. June 2, 2009
23 REGIONAL TELECOM LEGISLATION AND POLICY (1) CountryLegislationPoliciesJamaicaTelecommunications Policy, 2000The Office of Utilities Regulation Act (1995)Telecommunications Policy, 2007National Information and Communications Technology Strategy, 2006BarbadosTelecommunications Act, 2001Fair Trading Commission Act (2001)Utilities Regulation Act, CAP.282 (2002)VoIP policy (2007)Barbados Unregulated Services Policy (2003).Trinidad & TobagoTelecommunications Act (2001), Amended(2004)Draft Policy for Micro, Small and Medium Sized International Public Telecommunications Service and/or Network Providers in Trinidad and Tobago(2004)National Information and Communications Technology Plan (Fastforward TT)
24 REGIONAL TELECOM LEGISLATION AND POLICY(2) CountryLegislationPolicyGuyanaTelecommunications ACT, 1990The Public Utilities Commission Act (1999)Post and Telegraph Act Cap.47.01National Development Strategy ( )OECSTelecommunications Act- St. Lucia, 2000- St. Vincent and Grenadines, 2000- St. Kitts and Nevis, (Amended 2001)- Dominica, (Amended 2001)- Grenada, 2000ECTEL makes policy recommendations to its member states, e.g.:- St. Vincent and Grenadines’ recent consultations on VoIP IP Telephony regulation policy,
25 Re-Thinking Regulation Legislation dated with many Acts and Laws governing the telecom sector pre-dating Telecom liberalization in many statesLegislation to address convergence of sector with Information Technology and media and its interactions with financial sectorOther severely outdated laws to be reassessed include:Competition LawsBroadcasting and Cinema LawsE-Transactions and E-Government legislation still under development in a number of countries
26 The Global Policy Framework WTO General Agreement on Trade in Services – provides legal framework for implementing policy reforms which would provide stability and regulatory certainty for investors in the RegionUN Millennium Development Goals – social, economic and human development by 2015Declaration and Action Plan of WSIS – framework for development of ICTs and its integration in to key social and economic sectors.
27 The Regional Policy Framework CARICOM Connectivity AgendaIndividually and collectively move towards expanding access to global knowledge and full integration with the knowledge societyModernization of the telecommunications sectorPromoting and strengthening free and fair competition in telecommunications servicesFacilitating access to and usage of computers and software in our learning environments
28 The Regional Policy Framework Affordable, high quality ICT services and equipment;Fair and competitive environmentReduced barriers for entry and simplified administrative rules;Government led adoption to the delivery of servicesHighly trained and skilled workforceSource: Green Paper - Action Plan for Telecommunications/ICT Services in CARICOM, 2007
29 Key Issues and Challenges Policy and Legislative FrameworkHuman Resource RequirementsInfrastructure RequirementsAccess to and Use of TelecommunicationsInfluencing Global PolicyFinancingSustainability and Environmental IssuesRegional Coordination / Cooperation
30 Policy, Legislative and Regulatory Framework Pace of development of policy, legislative and regulatory framework not equal across the regionNon-harmonized approach except in a few areas e.g. Spectrum policy.Technological advances often outpace the rate of change of the framework
31 Human Resource Requirements Developing a renewable cadre of skilled specialists in technology and policy of the telecoms sectorIdentifying training and development gaps as well as the opportunities to fill those gaps within the region collaborativelyExpanding existing training facilitiesFacilitating OPEN ACCESS cross-regionally
32 Infrastructure Requirements Redressing the digital divide through regional level connectivity infrastructureAdequate investments needed in providing affordable region-wide broadband coverageSome level of investment has taken place through foreign firms such as Digicel, Claro, Orange, Verizon etc.However, the cost of capital for indigenous firms to compete in providing telecommunications services at affordable prices to the end users is often prohibitive.
33 Access to and Use of Telecommunications Mobile telephony penetration is growing at a rapid rate in the regionHowever there is a slower pace of growth in the adoption of more advanced business-oriented technologiesChallenges include:Adopting regional policies that facilitate the move from basic telecommunications services to more advanced 3G applicationsAddressing pricing issues that make access and affordability of these services a deterrent to adoption
34 Other Key Issues and Challenges Influencing global policyUn-coordinated regional participation in international processes, including WSIS, EPA, WTO discussionsMissed opportunities to influence the global agendaFinancingEnabling access to funding from indigenous financial institutions through tax incentives and otherwiseOften unsuitable terms and conditions are associated with funding from multilateral agencies
35 Other Key Issues and Challenges Sustainability and Environmental IssuesMitigating adverse effects, including:carbon emissions, climate change, e-junk, etc.Regional Coordination / CooperationRedressing the fragmented regional approach to telecom policy making with several institutions often with overlapping and confusing jurisdictions (CTU, CARICOM Division, CKLN)This also prevails at the national level in some cases
36 The Strategic Planning Framework Creating a Strategy for Telecom ServicesE-Business and Industry:Enabling regional e-business environmentE-Government:Citizen-centric, participative governanceResearch and Development:For evidence based policy and applied research
37 Organizational Implications Organized, co-ordinated CARICOM machinery and strong political willCommon vision for telecommunications across CARICOMPublic/Private sector/Civil Society partnership modelEvidence-based policy making through Research and DevelopmentMechanisms for measurement and evaluation of progress
38 Approaches towards Developing a CARICOM Strategy Policy-Relevant Data GatheringAnalysis of existing plans, strategies and policies on regional and national levelsReview of key global policy documentsBenchmarking with other regions on existing strategies and stages in developmentRegion-wide Consultations
39 E-Powering Jamaica Bridging the Digital Divide National ICT Strategic PlanPrepared forCentral Information Technology Office (CITO)Ministry of Industry, Technology, Energy and Commerce, Government of JamaicabyHopeton Dunn Ph.D. and Evan W. Duggan Ph.D.Mona School of Business UWI, November 2006
41 Desk Research Key documents for review and analysis Global, e.g. WSIS, GATS agreementsRegional, e.g. CARICOM documents and other initiativesNational, e.g. National Telecom/ICT Plans, National Telecom Policies and RegulationsStatistical Indicators
42 Benchmarking Analyses Analysis of existing national and regional strategies for telecommunications services in the developed and developing world including:EuropeSouth East AsiaAfricaCentral AmericaSouth AmericaAlso some countries: Ireland, Ghana, South Africa, Malaysia, Costa Rica, US, UK
43 Fieldwork and Primary Data Gathering Focus groups and interviews in a selection of countriese.g. Jamaica, Barbados, Trinidad & Tobago, ECTELOnline questionnaires and online forums for other major stakeholders across the regionData-gathering through network of in- country research coordinators
44 Consultative Approach Intermittent drafts to be reviewed in 3-4 consultations to be held at different locations in the regionJamaicaTrinidadECTEL
45 Expected OutcomesFinal Document must be the result of consultations with stakeholders at all levels across the regionWill include:Region-wide strategy with consideration of commonalities as well as the variations in the regionOperational Plan with specific timelines and monitoring mechanisms
46 Closing ThoughtsA pro-active strategy for telecom services will require three key elements; harmonization at all levels, co-ordination and co-operation among all stakeholders including governments, businesses, civil society and international and multilateral interests.
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