Regulating to Promote Connectivity and ICT Readiness

E-Government Satellite Applications WorkshopPTC 09

January 18, 2009

Laura B. Shermanlaurabsherman@yahoo.com

What is ICT Readiness? Degree to which an economy is prepared to

participate in the digital economy Composed of national policies, level of technological

development, regulatory practices, educational levels, quality of infrastructure

Five broad areas covering access, applications and confidence Network Access Networked Learning Networked Society Networked Economy Network Policy

Network Access

Access to communications network is fundamental to e-readiness

Looking at ability to access internet because it provides global platform for both data and voice services

Access is determined by Availability and affordability of network Quality and speed Availability of hardware and software Customer service

Success is principally market driven

Elements of Network Access Network Infrastructure

Teledensity Fixed line competition Availability of alternative

networks (fixed, wireless), satellite, cable TV

Foreign ownership limits Availability of Internet

Access Number of ISPs – extent of

competition Type of access (dial-up,

DSL) Pricing – flat rate, per

minute or hourly fees

Speed and quality of network

Hardware and software Customs duties and taxes

(VAT) Competitive sales channels Access to computers Availability of local

hardware/software Customer service –

installation and repair times

Reducing Prices for International Connectivity

Huge disparity in broadband costs around the world – from 2.2% a month of gross national income to 96%

Tied to lack of access to international network capacity

Restricted capacity and high prices decrease incentive to invest in all types of activities – transmission, content, education, etc

Only two solutions – submarine cables and satellites Increasing number of submarine cables is expensive and

slow Satellites are already available so increasing access is a

matter of regulatory changes

Increasing Satellite Network Access

Characteristics of Satellite Networks Satellite signals illuminate large geographical areas Blind to national boundaries Able to reach remote physical locations Can reach end users without in-country infrastructure

(except receivers) Extremely useful for tele-education and tele-medicine Provide infrastructure for access to government

services Enables immediate connectivity in times of disaster

What is an Open Skies Policy?

Accommodates the maximum number of satellite systems possible

Allows local service providers to choose any satellite system that provides needed geographical coverage

Does not require re-licensing of satellite systems authorized elsewhere

Focuses licensing on local service provider not the satellite operator

Treats foreign satellite systems the same as domestic systems

Implementing an Open Skies Policy

ELIMINATE Local entity/local presence requirements

It is not feasible to establish a presence in every market within satellite footprint

Concerns can be addressed through local post address Foreign ownership limitations of satellite licensees

Forcing satellite operator to form joint venture to provide service means that only the largest markets have a chance of being served

Capitalization requirements for satellite licensees and performance bonds If the satellite system is in orbit, the largest capital expenditure has

been made Licensing of the satellite system if it has already been

authorized by another administration

Implementing an Open Skies Policy

Adopt application fees and annual fees that reflect the actual cost of satellite regulation

Adopt transparent, non-discriminatory authorization procedures Licensing procedures should not discriminate based on the

owner of the satellite system Permit satellites to operate before the ITU

coordination process has finished Exempt satellite consumer terminals from customs

duties and duplicative testing and type approval License satellite consumer terminals as a class, not

individually

Addressing Social and Security Concerns

If the satellite operator has a direct customer relationship, consumer protection is important Can be addressed by requiring registered agent or

condition license on agreement to submit to local jurisdiction for resolution of consumer complaints

Security concerns can be addressed FSS -- focus on uplink provider MSS – through dialogue with the satellite operator

Requiring installation of a gateway or other local technical facilities is costly and unnecessary

Conclusion -- National ICT policy framework built on infrastructure

Source: UNCTAD (2003) E-Commerce and Development Report UNCTAD presentation April 26, 2007