Toward a Strategic Plan for Telecommunications Services in CARICOM Hopeton S. Dunn, Ph.D.

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
Overview of Presentation
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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
Image Source: unicef.org
Status of the Global Economy
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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 2010. 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
Impacts of Economic Crisis on
CARICOM Countries
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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
Growth of Global Services
Economy
Services as % of GDP: Time Series Trend
80%
60%
Germany
40%
Japan
USA
20%
0%
1870 1950 1987 1991 2001
Germany
22%
35%
55%
61%
69%
Japan
30%
29%
58%
59% 67.70
USA
26%
54%
63%
71% 75.60
Source: http://diec.onene2dev.raki.enigmainteractive.net/page/service_economy.cfm
Growth of Services in Selected
CARICOM Countries
Value of CARICOM's Balance of Services 2003-2006 in
US$MN
1000
800
Jamaica
600
TT
400
LDCs
OECS
200
0
2003
2004
2005
2006
Source: CARICOM Regional Statistics
Centre-Periphery Model
Increased Competitiveness through
Telecom Services
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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
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
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 Mail
 Voice Mail
 Online information and database
retrieval
 Electronic Data Interchange (EDI)
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.
Definition and Scope
Infrastructure
Hardware/
Software/Data/
Information
ICT
Telecommunications
Services
Human Resource
Skills/Knowledge
Manufacturing
Business/Finance
Other Productive Sectors
COMPETITION IN TELECOM SERVICES
– MAJOR TELECOM PROVIDERS
Bahamas
Flow (Cable Bahamas), BTC
Belize
Digicel, Belize Telecom Ltd.
Speednet
Haiti
Digicel, Conatel Teleco
Haitel
Jamaica
Flow, Digicel, LIME, Claro
St. Kitts and Nevis
Digicel, LIME, Orange
Dominica
Digicel, LIME, Orange
St. Vincent
Digicel, LIME
Grenada
Digicel, LIME, Flow
Antigua
Digicel, LIME
Montserrat
LIME
St. Lucia
Digicel, LIME
Antilles Crossing
Barbados
Digicel, LIME
TeleBarbados,
Antilles Crossing
Trinidad
Digicel, Flow, TSTT, Laqtel
Guyana
Digicel, GT&T,
Cel Star
Adapted from Stern, 2006, Promoting Investment in ICTS in
the Caribbean. Updated where information is available
Suriname
Digicel, Telesur,
RTBG
Global and Regional
Trends in Telecoms
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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
Global Advancements in Telecom
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Focus on mobile
broadband and 3G / 4G
services
Increasing demand for
high-end wireless
technologies such as
WiMax, mobile video
calling/conferencing
Next Generation Networks (NGNs)
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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
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.
Telecommunications Landscape –
Digital Access Index, ITU, 2003
Other Digital Indices
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Countries ranked in the Economist
Intelligence Unit’s E-Readiness Index, 2008
◦ Jamaica – 49th – 5.17
◦ Trinidad and Tobago – 50th – 5.07
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Digital Opportunity Index (ITU, 2007)
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Barbados 27th
Jamaica 55th
Trinidad and Tobago 59th
St. Vincent 69th
Grenada 71st
St. Lucia 73rd
Preliminary SWOT Analysis
Strengths:
- Basic Core of Highly Skilled
Professionals
- Competitive Wage Structure
- Cultural and Creative Edge
Opportunities:
- Proximity to US and Canada
- Lower barriers to entry
- Wider market reach
facilitated through technology
- Large Caribbean Diaspora
Weaknesses:
Poor intra-country
broadband connectivity
- Resource availability and
allocation
-
Threats:
- Inadequacies in the policy
environment
- Global Economic Downturn
“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
REGIONAL TELECOM LEGISLATION AND POLICY (1)
Country
Legislation
Policies
Jamaica
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Telecommunications
Policy, 2000
 The Office of Utilities
Regulation Act (1995)
Telecommunications
Barbados
Telecommunications
Trinidad & Tobago
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Act,
2001
Fair Trading Commission
Act (2001)
Utilities Regulation Act,
CAP.282 (2002)
Telecommunications Act
(2001), Amended(2004)
Policy, 2007
National Information and
Communications Technology
Strategy, 2006
VoIP policy (2007)
 Barbados Unregulated Services
Policy (2003).
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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)
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REGIONAL TELECOM LEGISLATION AND POLICY(2)
Country
Legislation
Guyana
Telecommunications
OECS
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Policy
ACT,
1990
The Public Utilities
Commission Act (1999)
Post and Telegraph Act
Cap.47.01
Telecommunications Act
- St. Lucia, 2000
- St. Vincent and
Grenadines, 2000
- St. Kitts and Nevis, 2000
(Amended 2001)
- Dominica, 2000
(Amended 2001)
- Grenada, 2000
National Development Strategy
(2001-2010)
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ECTEL
makes policy
recommendations to its member
states, e.g.:
- St. Vincent and Grenadines’
recent consultations on VoIP IP
Telephony regulation policy,
Re-Thinking Regulation
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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
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
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 Regional Policy Framework
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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
The Regional Policy Framework
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
Source: Green Paper - Action Plan for Telecommunications/ICT Services in CARICOM, 2007
Key Issues and Challenges
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
Policy, Legislative and
Regulatory Framework
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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
Human Resource Requirements
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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
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Expanding existing training facilities
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Facilitating OPEN ACCESS cross-regionally
Infrastructure Requirements
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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.
Access to and Use of
Telecommunications
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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
Other Key Issues and
Challenges
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Influencing global policy
◦ Un-coordinated regional participation in international
processes, including WSIS, EPA, WTO discussions
◦ Missed opportunities to influence the global agenda
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Financing
◦ Enabling access to funding from indigenous
institutions through tax incentives and otherwise
financial
◦ Often unsuitable terms and conditions are associated with
funding from multilateral agencies
Other Key Issues and
Challenges
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Sustainability and Environmental Issues
◦ Mitigating adverse effects, including:
 carbon emissions, climate change, e-junk, etc.
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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
The Strategic Planning
Framework
E-Government:
Citizen-centric, participative
governance
E-Business and
Industry:
Research and
Development:
Enabling regional ebusiness environment
For evidence based policy
Creating a
Strategy for
Telecom
Services
and applied research
Organizational Implications
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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
Approaches towards Developing a
CARICOM Strategy
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Policy-Relevant Data Gathering
◦ Analysis of existing plans, strategies and policies
on regional and national levels
◦ Review of key global policy documents
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Benchmarking with other regions on existing
strategies and stages in development
Region-wide Consultations
Bridging the
Digital Divide
E-Powering Jamaica
National ICT Strategic Plan 2007-2012
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
National Development Plans
Image Sources: http://www.broadcastingcommission.org/documents/2007/Vision2030.pdf
http://vision2020.info.tt/
Desk Research
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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
Benchmarking Analyses
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Analysis of existing national and regional
strategies for telecommunications services in
the developed and developing world
including:
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Europe
South East Asia
Africa
Central America
South America
Also some countries: Ireland, Ghana, South
Africa, Malaysia, Costa Rica, US, UK
Fieldwork and Primary Data
Gathering
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Focus groups and interviews in a selection
of countries
◦ e.g. Jamaica, Barbados, Trinidad & Tobago, ECTEL
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Online questionnaires and online forums for
other major stakeholders across the region
Data-gathering through network of incountry research coordinators
Consultative Approach
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Intermittent drafts to be reviewed in
3-4 consultations to be held at
different locations in the region
◦ Jamaica
◦ Trinidad
◦ ECTEL
Expected Outcomes
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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
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.
Thank You!
hopetondunn@gmail.com