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Toward a Strategic Plan for Telecommunications Services in CARICOM Hopeton S. Dunn, Ph.D. Director, Telecommunications Policy and Management Programme.

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Presentation on theme: "Toward a Strategic Plan for Telecommunications Services in CARICOM Hopeton S. Dunn, Ph.D. Director, Telecommunications Policy and Management Programme."— 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 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 Economy Definitions and Scope Global and Regional Trends in Telecom Telecommunications Landscape in CARICOM Regional Telecom Legislation and Policy Global and Regional Policy Framework Key Issues and Challenges The Strategic Planning Framework Approaches towards developing a CARICOM Strategy Closing Thoughts

3 Image Source:

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 uneven Source: 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 recession Traditional exports (aluminum, oil, bananas, sugar and rice) suffering decreasing demand Overall 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 Organization

6 Growth of Global Services Economy Source:

7 Growth of Services in Selected CARICOM Countries Source: CARICOM Regional Statistics

8 Centre-Periphery Model

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 connectivity Recognition 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 services Packet and Circuit switched data transmission services Telex and Telegraph Services Facsimile Services Private leased circuit services

11 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 Mail Voice Mail Online information and database retrieval Electronic Data Interchange (EDI) Definitions and Scope - WTO

12 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. Definitions and Scope – Telecom Services

13 Definition and Scope Telecommunications Services Infrastructure ICT Manufacturing Business/Finance Other Productive Sectors Human Resource Skills/Knowledge Hardware/ Software/Data/ Information

14 Bahamas Flow (Cable Bahamas), BTC COMPETITION IN TELECOM SERVICES – MAJOR TELECOM PROVIDERS St. Kitts and Nevis Digicel, LIME, Orange Jamaica Flow, Digicel, LIME, Claro Haiti Digicel, Conatel Teleco Haitel Suriname Digicel, Telesur, RTBG Antigua Digicel, LIME Barbados Digicel, LIME TeleBarbados, Antilles Crossing Belize Digicel, Belize Telecom Ltd. Speednet Dominica Digicel, LIME, Orange Grenada Digicel, LIME, Flow Guyana Digicel, GT&T, Cel Star Montserrat LIME St. Lucia Digicel, LIME Antilles Crossing St. Vincent Digicel, LIME Trinidad Digicel, Flow, TSTT, Laqtel Adapted 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; and Increased telecommunications and ICT investments in the region since 2000

16 Global Advancements in Telecom Focus on mobile broadband and 3G / 4G services Increasing 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 services Real time e-transactions and other business services Mobile marketing GPS / GIS and Security services Social Networking and virtual gaming

18 Telecommunications Landscape in CARICOM Countries are at different stages on the ICT development continuum Source: 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 Countries ranked in the Economist Intelligence Units E-Readiness Index, 2008 Jamaica – 49 th – 5.17 Trinidad and Tobago – 50 th – 5.07 Digital Opportunity Index (ITU, 2007) Barbados 27 th Jamaica 55 th Trinidad and Tobago 59 th St. Vincent 69 th Grenada 71 st St. Lucia 73 rd Other Digital Indices

21 Strengths: - Basic Core of Highly Skilled Professionals - Competitive Wage Structure - Cultural and Creative Edge Weaknesses: - Poor intra-country broadband connectivity - Resource availability and allocation Opportunities : - Proximity to US and Canada - Lower barriers to entry - Wider market reach facilitated through technology - Large Caribbean Diaspora Threats: - Inadequacies in the policy environment - Global Economic Downturn Preliminary SWOT Analysis

22 The most important factor that led to Americas 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 industrys structure, replacing monoliths with smaller, specialised companies which have to work with others with complementary skills. The result has been tremendous innovation. June 2, 2009

23 REGIONAL TELECOM LEGISLATION AND POLICY (1) CountryLegislationPolicies Jamaica Telecommunications Policy, 2000 The Office of Utilities Regulation Act (1995) Telecommunications Policy, 2007 National Information and Communications Technology Strategy, 2006 Barbados Telecommunications Act, 2001 Fair Trading Commission Act (2001) Utilities Regulation Act, CAP.282 (2002) VoIP policy (2007) Barbados Unregulated Services Policy (2003). Trinidad & Tobago Telecommunications 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 CountryLegislationPolicy Guyana Telecommunications ACT, 1990 The Public Utilities Commission Act (1999) Post and Telegraph Act Cap National Development Strategy ( ) OECS Telecommunications Act - St. Lucia, St. Vincent and Grenadines, St. Kitts and Nevis, 2000 (Amended 2001) - Dominica, 2000 (Amended 2001) - Grenada, 2000 ECTEL makes policy recommendations to its member states, e.g.: - St. Vincent and Grenadines recent consultations on VoIP IP Telephony regulation policy, REGIONAL TELECOM LEGISLATION AND POLICY(2)

25 Legislation dated with many Acts and Laws governing the telecom sector pre-dating Telecom liberalization in many states Legislation to address convergence of sector with Information Technology and media and its interactions with financial sector Other severely outdated laws to be reassessed include: Competition Laws Broadcasting and Cinema Laws E-Transactions and E-Government legislation still under development in a number of countries Re-Thinking Regulation

26 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 Region UN Millennium Development Goals – social, economic and human development by 2015 Declaration and Action Plan of WSIS – framework for development of ICTs and its integration in to key social and economic sectors. The Global Policy Framework

27 The Regional Policy Framework CARICOM Connectivity Agenda Individually and collectively move towards expanding access to global knowledge and full integration with the knowledge society Modernization of the telecommunications sector Promoting and strengthening free and fair competition in telecommunications services Facilitating access to and usage of computers and software in our learning environments

28 Affordable, high quality ICT services and equipment; Fair and competitive environment Reduced barriers for entry and simplified administrative rules; Government led adoption to the delivery of services Highly trained and skilled workforce The Regional Policy Framework Source: Green Paper - Action Plan for Telecommunications/ICT Services in CARICOM, 2007

29 Policy and Legislative Framework Human Resource Requirements Infrastructure Requirements Access to and Use of Telecommunications Influencing Global Policy Financing Sustainability and Environmental Issues Regional Coordination / Cooperation Key Issues and Challenges

30 Pace of development of policy, legislative and regulatory framework not equal across the region Non-harmonized approach except in a few areas e.g. Spectrum policy. Technological advances often outpace the rate of change of the framework Policy, Legislative and Regulatory Framework

31 Developing a renewable cadre of skilled specialists in technology and policy of the telecoms sector Identifying training and development gaps as well as the opportunities to fill those gaps within the region collaboratively Expanding existing training facilities Facilitating OPEN ACCESS cross-regionally Human Resource Requirements

32 Redressing the digital divide through regional level connectivity infrastructure Adequate investments needed in providing affordable region-wide broadband coverage Some 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. Infrastructure Requirements

33 Mobile telephony penetration is growing at a rapid rate in the region However there is a slower pace of growth in the adoption of more advanced business-oriented technologies Challenges include: Adopting regional policies that facilitate the move from basic telecommunications services to more advanced 3G applications Addressing pricing issues that make access and affordability of these services a deterrent to adoption Access to and Use of Telecommunications

34 Influencing global policy Un-coordinated regional participation in international processes, including WSIS, EPA, WTO discussions Missed opportunities to influence the global agenda Financing Enabling access to funding from indigenous financial institutions through tax incentives and otherwise Often unsuitable terms and conditions are associated with funding from multilateral agencies Other Key Issues and Challenges

35 Sustainability and Environmental Issues Mitigating adverse effects, including: carbon emissions, climate change, e-junk, etc. Regional Coordination / Cooperation Redressing 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 Other Key Issues and Challenges

36 Creating a Strategy for Telecom Services E-Business and Industry: Enabling regional e- business environment E-Government: Citizen-centric, participative governance Research and Development: For evidence based policy and applied research The Strategic Planning Framework

37 Organizational Implications Organized, co-ordinated CARICOM machinery and strong political will Common vision for telecommunications across CARICOM Public/Private sector/Civil Society partnership model Evidence-based policy making through Research and Development Mechanisms for measurement and evaluation of progress

38 Approaches towards Developing a CARICOM Strategy Policy-Relevant Data Gathering Analysis of existing plans, strategies and policies on regional and national levels Review of key global policy documents Benchmarking with other regions on existing strategies and stages in development Region-wide Consultations

39 E-Powering Jamaica National ICT Strategic Plan Prepared for Central Information Technology Office (CITO) Ministry of Industry, Technology, Energy and Commerce, Government of Jamaica by Hopeton Dunn Ph.D. and Evan W. Duggan Ph.D. Mona School of Business UWI, November 2006 Bridging the Digital Divide

40 National Development Plans Image Sources:

41 Desk Research Key documents for review and analysis Global, e.g. WSIS, GATS agreements Regional, e.g. CARICOM documents and other initiatives National, e.g. National Telecom/ICT Plans, National Telecom Policies and Regulations Statistical Indicators

42 Benchmarking Analyses Analysis of existing national and regional strategies for telecommunications services in the developed and developing world including: Europe South East Asia Africa Central America South America Also 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 countries e.g. Jamaica, Barbados, Trinidad & Tobago, ECTEL Online questionnaires and online forums for other major stakeholders across the region Data-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 region Jamaica Trinidad ECTEL

45 Expected Outcomes Final Document must be the result of consultations with stakeholders at all levels across the region Will include: Region-wide strategy with consideration of commonalities as well as the variations in the region Operational Plan with specific timelines and monitoring mechanisms

46 Closing Thoughts A 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.

47 Thank You!

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