1. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt

2. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Overview Access to ICT is determined by reach and capacity of the physical communications infrastructure Limited traditional financial resources has restricted the extension of infrastructure; State management of communications infrastructure has restricted its extension; Even where infrastructure is in place - often old and antiquated - requires upgrading to host the capacity and interactivity necessary for ICT applications Key to enhancing this infrastructure is the attraction of investment for network extension and upgrade Investment Capital is Key but Scarce

3. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Availability of Investment Capital I Telecom Stock Value – US Operators

4. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Availability of Investment Capital II Telecom Stock Value – European Operators

5. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Availability of Investment Capital III Private Participation in telecoms Investment in Emerging Markets, US$ Billions

6. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Declining levels of private investment globally Increased demand for capital investment - upgrade, roll- out Result….. Increasing demands on limited capital resources + Investors will look to where their concerns are best met

7. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt What are Investor Concerns? Transparency; Lack of Independent Regulator; Unclear and Harsh Legal and Regulatory Environment; Absence of Controls on Anti-Competitive Conduct; Property Rights; Intellectual Property;

8. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt How Can These Concerns be Addressed? Modern, clear and coherent policy; Clear and precise primary legislation supported by appropriate secondary legislation; Solid institutional foundation; Institutional independence and appropriate accountability; Effective, well trained independent judiciary; Modern licensing policy and procedure; Other appropriate legal controls.

9. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Not legally binding; Gives clear signals with respect to the development of the sector; It can impose certain obligations on the government to act with respect to particular issues; Where properly constructed and published, can add political pressure to pursue the development of a particular sector. Modern, clear and coherent policy I

10. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Sets out in broad, clear, certain and easily identifiable form: key objectives specific timetable for the achievement of those objectives parties responsible for the development of the sector means by which these objectives are to be achieved means for monitoring implementation Acts as guidance for the marketplace to optimum (competitive) state, while providing for achievement of social objectives such as universal access. Modern, clear and coherent policy II

11. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Clear and precise primary legislation supplemented by appropriate secondary legislation - I Government policy statements must be followed up with primary legislation. Primary legislation should provide a clear and concise statement of rights and obligations; Generally speaking, primary legislation will be prepared by the responsible ministry and presented to parliament who will debate and pass this legislation as a law of parliament. Fundamental incontrovertible sector principles, such as liberalisation, network access, costing methodologies, etc. should be contained in primary legislation. Detailed procedures applicable to individual elements of the sector should be contained in secondary legislation

12. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Clear and precise primary legislation supplemented by appropriate secondary legislation - II Quality of entrenchment and permanence to critical elements; Amendment is somewhat lengthy and cumbersome in most countries; Even where democratic credentials of parliaments in certain countries may not be as solid as they could be, parliamentary legislation nonetheless acts as a solidification of basic principles; Actual content and level of detail of primary legislation will vary from country to country; Because of the quality of quasi-permanence that take place before passage.

13. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Separation of telecom operations from post, broadcasting and other functions; Separation of state ownership from regulation; Separation of policy making from regulation, i.e. establishment of an independent regulatory authority: Independently financed; Independent of political and operational influence; Possessing appropriate powers. Solid Institutional Foundation

14. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Appropriate Institutional Accountability Parliamentary oversight and judicial review; Parliamentary oversight exercised through appointment of the board and chairperson of the institutions charged with implementation, administration and enforcement of the legal and regulatory framework for the sector; Similarly, parliament should have the power to dismiss such official in the strict circumstances provided for in law, through the strict exercise of procedures also set out in law; Judicial review comes from the scope of the courts to review decisions of the institutions where such decisions appear unreasonable or exceeded authority possessed by the institution.

15. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Effective Independent Judiciary Essential to effective economic performance are properly constituted, independent courts staffed with appropriately trained and paid officials. Requires a well-trained, well-paid body of judges; Such a judiciary must also be capable of reviewing acts and decisions of the government; Justice and access thereto must be efficient; Court administration process need to be modernised and clerks and support staff better trained; Additionally, the judiciary itself must also be accountable.

16. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Modern Licensing Procedure Licensing policy & market structure to be clear for all market segments International trend to general authorisations Specific licensing rules & transparent licensing mechanisms to be applied Clear rules for allocation of scarce resources, e.g. radio spectrum Regulator to enforce compliance with licence conditions Fair and equitable process Reasonable fees Appropriate rights and obligations

17. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Other Legal Controls Strong control on anti-competitive conduct essential Consumer protection Property rights Intellectual property Privatisation

18. International Seminar on ICT Policy Reform and Rural Communication Infrastructure Keio University, Shonan Fujisawa, Japan, 24th August 2004 - Paul Moffatt Thank You