Input Paper ICT Regulations Working Group ICT Regulations Working Group Chair: The ICT Research and Development Center (CINTEL) Input Paper ICT Regulations

Input Paper ICT Regulations Working Group ICT Regulations Working Group Chair: The ICT Research and Development Center (CINTEL) Input Paper ICT Regulations Working Group1

2 *The LAC-ICT Expert Group description and members can be found in www.lac- ictexpertgroup.euwww.lac- ictexpertgroup.eu It is conformed by 12 high-level experts from the industry, academia, and scientific community 12 experts Name*OrganisationCountry Mario Castao (Chair)CINTELColombia Alejandra CastroARIAS Y MOZCosta Rica Juan Manuel Daz CREMADES & CALVO- SOTELO Colombia Julin DunayevichINNOVAREDArgentina Jos Jaime Gmez MEDIOS Y SOLUCIONES Colombia Salma JalifeCUDIMexico Ral KatzCBS CITIArgentina Roberto MayerALETIBrazil Alejandro Delgado MorenoMINTICColombia Enrique SucarINAOEMexico Mara Fernanda Cabrera LifeSTech UPMSpain Mara Lima ToivanenVTTFinland ICT Regulations Working Group

Objectives Input Paper ICT Regulations Working Group3 To study, discuss and improve the Latin American Institutional and Regulatory Framework that would orient and promote research and innovation in ICT and create appropriate conditions for strengthening international cooperation. To create an Input paper including an analysis and benchmarking of Latin American ICT R&D Regulatory and Institutional Framework in Argentina, Brazil, Chile, Colombia and Mexico in order to identify indicators, tools and methodologies to measure the gaps and distance to an efficient Regulatory and Institutional Framework and identify best practices and proper actions.

Introduction This Input Paper on ICT regulations presents the required analysis and benchmarking of LAC ICT R&D Regulatory and Institutional framework, best practices, appropriate actions and overall recommendations. The elaboration of the Input Paper, led by CINTEL, has been supported by the LAC ICT Regulations Working Group that has been created to contribute to the study, discussion and improvement of the LAC R&D Institutional and Regulatory Framework. Input Paper ICT Regulations Working Group4

Content Input Paper ICT Regulations Working Group5 Presents the prospective and convergent ICT frame of reference with the description of the most important ICT trends, indicators and indexes It provides an overview of the LAC ICT R&D Institutional Framework and presents some lessons learned Describes the key aspects of the LAC ICT R&D Regulatory Framework from three different perspectives: i) Sectorial Regulations, ii) S&T Regulations, and iii) Industrial Regulations Showcases a general review of the ICT R&I topics in EU and LAC Presents the prioritization of ICT regulatory areas of strategic interest for EU-LAC cooperation Finally, it provides overall conclusions and a set of recommendations

6Input Paper ICT Regulations Working Group Methodology A landscape on LAC and International regulations was generated; a frame was adopted to construct the analysis and recommendations; The result was the identification of areas of strategic interest; WG experts and external experts validated and prioritized these areas through and online questionnaire; Finally best practices and recommendations were identified.

Prospective and convergent framework ArgentinaBrazilChileColombiaMexicoWorld GLOBAL COMPETITIVEN ESS INDEX 2013-2014* 104 (3,76)56 (4,33)34 (4,61)69 (4,19)55 (4,34) (4,20) NETWORKED READINESS INDEX 2014* 100 (3,5)69 (4,0)35 (4,6)63 (4,0)79 (3,9)(4,10) GLOBAL INNOVATION INDEX 2014** 70 (35,1)61 (36,3)46 (40,6)68 (35,5)66 (36,0)(36,9) ICT DEVELOPMENT INDEX 2012*** 53 (5,36)62 (5,0)51 (5,46)77 (4,20)83 (3,95)(4,35) Input Paper ICT Regulations Working Group7 Identification of ICT trends, indicators and indexes Description of LAC countries performance in four of the most important ICT indexes (in green countries that performed above world average) * World Economic Forum (2014) - 148 economies **INSEAD, Cornell University & WIPO (2014) ***ITU (2013) - 157 economies

Prospective and convergent framework 8 ICT TRENDS Mobile broadband development Apps and mobile data traffic Fixed broadband network development Fixed-line markets regulation Mobile market regulation Licensing and market entry Competition DIGITAL ECONOMY Broadband and telecommunications Security and privacy Digital content Internet openness Consumer empowerment INTERNET VALUE CHAIN Input Paper ICT Regulations Working Group Source: AT Kearney Analysis in ITU (2014) Source: ITU (2014). Trends in Telecommunicaction Reform Special Edition 4th Generation Regulation: Driving Digital Communications Ahead. Source: OECD (2014a). OECD Work on Science, Technology and Industry 2014. Main ICT Trends, Digital Economy characteristics Value chain adopted as a frame for the ICT regulation analysis

LAC ICT R&D institutional framework ArgentinaBrazilChileColombiaMexico Public Policy Secretara de Comunicaciones del M de Planificacin Federal, Inversin Pblica y Servicios Ministrio das Comunicaes Ministerio de Transportes y Telecomunicaciones MINTIC - Ministerio de Tecnologas de la Informacin y las Comunicaciones SCT - Subsecretara de Comunicaciones de la Secretara de Comunicaciones y Transportes Regulation CNC - Comisin Nacional de Comunicaciones ANATEL - Agncia Nacional de Telecomunicaes SUBTEL - Subsecretara de Telecomunicaciones CRC - Comisin de Regulacin de Comunicaciones IFT - Instituto Federal de Telecomunicaciones Competition CNDC - Comision Nacional de Defensa de la Competencia CADE - Conselho Administrativo de Defesa Econmica TDLC - Tribunal de Defensa de la Libre competencia SIC - Superintendencia de Industria y Comercio CFCE - Comisin Federal de Competencia Universal service Fondo Fiduciario del Servicio Universal FUST - Fondo de Universalizacin de los Servicios de Telecomunicaciones FDT - Fondo de Desarrollo de las Telecomunicaciones FONTIC - Fondo de las Tecnologas de la Informacin y las Comunicaciones Fondo de Cobertura Social de Telecomunicaciones Input Paper ICT Regulations Working Group9

LAC ICT R&D institutional framework Input Paper ICT Regulations Working Group10 In the LAC region, Digital Agendas and Broadband Plans are considered good practices. There is a consolidated institutional framework of the ICT sector with authorities in the fields of competition, public policy and regulation. Currently ICT regulatory agendas in LAC combine great efforts to promote competition under an environment of technological convergence. One challenge in LAC is the reduction of legal impediments to the entrance of the new actors in ICT markets with high barriers to entry. In countries like Chile, the authority of competition is a major player in the development of the digital agenda while in countries like Colombia that agenda is led by public policy through the Ministry of ICT.

LAC ICT R&D institutional framework Input Paper ICT Regulations Working Group11 Most Latin America countries have established policies for universal access and universal service, several of which are based on the constitution of dedicated funds. The institutions around ICT in LAC has common goals such as: Encouraging open markets to competition to promote effective delivery of services; Prevent abuses of market power by dominant firms, which do not exist or fail competitive markets; Create favourable investment environment to expand telecommunications networks; Promote market confidence through transparent regulatory procedures and granting licenses; Promote greater connectivity through broadband plans; among others.

LAC ICT R&D regulatory framework 12Input Paper ICT Regulations Working Group Areas of strategic interest implemented or in implementation process in LAC targeted countries and Europe

LAC ICT R&D regulatory framework Regulatory agendas in LAC have areas of common interest, even with issues that are currently being implemented in Europe, related to: Competition Promotion, Significant Market Power analysis, Sharing and access to passive infrastructure, Quality of service, Consumer protection, Licensing and authorization, Access and Interconnection, Net neutrality, Internet Governance, Cybersecurity and Spectrum planning and management. Input Paper ICT Regulations Working Group13

ICT regulatory areas of strategic interest: (i) Sectorial regulations Competition promotion Significant Market Power analysis Unbundling Sharing and access to passive infrastructure International Roaming conditions Quality of service Consumer protection Broadband regulation TV regulation Postal sector regulation Licensing and authorization Approval & legalization of equipment Access and Interconnection Satellite communications Net neutrality Internet Governance Regulatory review Cybersecurity IMT frequency bands Spectrum planning and management 14 Market regulation best practices Single regional ICT market conditions Broadband plans and financing National Regulatory Authorities Licensing and authorization best practices Spectrum planning and management best practices Sharing and access to passive infrastructure best practices Access and Interconnection best practices Consumer empowerment Review of universal services conditions Net neutrality concept Quality of service best practices To create appropriate conditions for strengthening international cooperation To orient and promote research and innovation (R&I) in ICT Input Paper ICT Regulations Working Group

Software and IT sector regulatory incentives IT sector activities regulation Fiscal and financial regulation on the IT sector Intellectual Property Regulation Electronic Commerce (e-commerce) Regulation Electronic signature (e-signature) Regulation Electronic Billing Regulation Data Protection Regulation 15 Security and privacy Data Protection for ICT users Software and IT industry incentives Digital talent incentives HW and SW producers incentives IT education incentives Entrepreneurship incentives IT research promotion Start-ups promotion - boot camps and accelerators Regional ecosystems for entrepreneurships Regional ecosystems for innovation Digital content production incentives E-commerce mass use incentives To create appropriate conditions for strengthening international cooperation To orient and promote research and innovation (R&I) in ICT Input Paper ICT Regulations Working Group ICT regulatory areas of strategic interest: (ii) S&T regulations

Financing programs Entrepreneurships risk assessment mechanism Prioritization and industrial strategic vision Union activity promotion ICT and Internet mass use IT production fiscal incentives Knowledge and technology transfer International standards certification Business promotion Foreign investment promotion Signature of new trade agreements To combat piracy 16 ICT in health (e-health) ICT in agriculture (e-agriculture) ICT in education (e-education) ICT in justice (e-justice) ICT in defense ICT in transportation ICT in environment TIC for social challenges ICT to promote Small and Medium Enterprises (SME) E-Government To create appropriate conditions for strengthening international cooperation To orient and promote research and innovation (R&I) in ICT Input Paper ICT Regulations Working Group ICT regulatory areas of strategic interest: (iii) Industrial regulations

Prioritization of ICT areas 17Input Paper ICT Regulations Working Group Prioritized strategic areas by ICT regulation LAC experts and main stakeholders Prioritization done through an online questionnaire

Recommendations on LAC ICT R&D Institutional Framework 1.Harmonise a legal and institutional framework that would ensure a coordinated implementation of S&T strategies, ICT public policies, Broadband Plans and Regulatory Agendas within and across levels of governments in the LAC region. 2.Encourage continued work of LAC ICT regional groups and forums, such as REGULATEL or ALETI, and set up efficient communication channels with those in EU. 3.Promote the open, distributed and interconnected nature of the Internet fostering innovation, creativity and economic growth in the LAC region. 4.Ensure true independence of the LAC national regulatory authorities. 5.Merge separate regulatory bodies and harmonize regulations across different sectors, in order to support efficiency, fairness and clarity for service providers and the general public. Input Paper ICT Regulations Working Group18

Market regulation best practices 6.Carry out regular reviews of relevant markets both at wholesale and at retail level in LAC countries in order to preferably establish ex ante regulation. 7.Set up regulatory measures concerning the relevant markets for wholesale (physical) network infrastructure access and wholesale broadband access based on non-discrimination obligations and cost-oriented methodologies. Access and Interconnection 8.Establish an IP interconnection framework which will encourage competition by stimulating the development of communications services and networks. 9.Review the stages of migration towards an all-IP based interconnection architecture across EU countries. Consumer protection and Consumer empowerment 10.Foster a climate of trust among LAC ICT users in relation to information security and network security, authentication, privacy and consumer protection. 11.Develop principles to promote efficient, transparent and fair global markets for consumers. Cybersecurity 12.Create a cybersecurity strategy establishing Computer Emergency Response Teams CERT for the institutions and focusing on the protection of LAC critical information infrastructure from cyber disruptions. Input Paper ICT Regulations Working Group19 Recommendations on LAC ICT R&D Institutional Framework Sectorial regulations

Intellectual Property Regulation 13.Ensure protection of Intellectual Property for promoting innovation and creativity in the ICT and S&T sectors, but also for developing employment and improving competitiveness. 14.Measure the importance of Intellectual Property rights in the LAC economy and review the EU system of IP rights which not only guarantees innovators their due reward but also stimulates a competitive market. Data Protection Regulation 15.Review and propose a reform on the data protection rules to strengthen online privacy rights and boost LAC digital economy. 16.LAC governments, the private-sector, the Internet technical community and civil society should work together to strengthen data protection regulation and to ensure effective individual control over the receipt of information and disclosure of personal data. Input Paper ICT Regulations Working Group20 Recommendations on LAC ICT R&D Institutional Framework S&T regulations

Security and privacy 17.Encourage cooperation in the LAC region to promote Internet security and the implementation of internationally recognised, market-driven security standards and EU best practices to promote online security. 18.Achieve regional and local interoperability recognising privacy rules based on global principles and laws that achieve the same objectives, and considering fundamental rights of others in society including rights to freedom of speech and to freedom of the press. Software and IT sector regulatory incentives 19.Promote an open Internet that supports the free flow of information, research, innovation, entrepreneurship as well as basic and applied research and collaborative knowledge and innovation networks. 20.Boost the creation and development of the ICT application software industry driven by innovative production clusters, made up of universities, high-level technological centres and leading businesses; angel and venture capital funds; and a culture of entrepreneurship. Input Paper ICT Regulations Working Group21 Recommendations on LAC ICT R&D Institutional Framework S&T regulations

ICT and Internet mass use 21.Provide the backing and support to the various regulators, associations, regulatory authorities, regional organizations and institutions involved in promoting access, adoption and use of broadband services so as to help reduce the digital divide while promoting economic growth and social inclusion. ICT in education (e-education) 22.Promote the use of ICT in education in order to strengthen democratic and transparent education planning and management, expand access to learning, improve quality and ensure inclusion. 23.Work with EU partners on the development and analysis of ICT policies in education and highlighting how these policies can be aligned to wider societal and economic goals. Input Paper ICT Regulations Working Group22 Recommendations on LAC ICT R&D Institutional Framework Industrial regulations

ICT in health (e-health) 24.Maximize ICT potential for enhancing the quality of health care for LAC people through public-private collaboration that brings together specialized professional teams to integrate medical, public-health and ICT knowledge. 25.LAC governments should review the EU eHealth Action Plan 2004-2011 covering electronic prescriptions and health cards to new information systems that reduce waiting times and errors, in view to explore the feasibility of the integration of telemedicine into health systems in LAC. Input Paper ICT Regulations Working Group23 Recommendations on LAC ICT R&D Institutional Framework Industrial regulations

Download the complete report at: http://www.leadershipproject.eu/?page_id=3442 http://www.leadershipproject.eu/?page_id=3442 This project has received funding from the European Unions Seventh Framework Programme for research, technological development and demonstration under grant agreement no 611099 Quotation: When quoting from information from this report, please use the following phrase: Input Paper ICT Regulations Working Group Analysis of Latin American ICT R&D Regulatory and Institutional Framework, best practices and recommendations, LEADERSHIP project. The consortium: Input Paper ICT Regulations Working Group24

Thank you www.leadershipproject.eu @LEADERSHIPeu Facebook.com/LEADERSHIPeu Linkedin Group: Co-Innovation-LAC Yolanda Ursa e-mail: [email protected]@grupoinmark.com Mario Castao e-mail: [email protected]@cintel.org.co Input Paper ICT Regulations Working Group25

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Input Paper ICT Regulations Working Group ICT Regulations Working Group Chair: The ICT Research and Development Center (CINTEL) Input Paper ICT Regulations