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

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

Image Source: unicef.org

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 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

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

0%

20%

40%

60%

80%

Germany

Japan

USA

Germany 22% 35% 55% 61% 69%

Japan 30% 29% 58% 59% 67.70

USA 26% 54% 63% 71% 75.60

1870 1950 1987 1991 2001

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

0

200

400

600

800

1000

2003 2004 2005 2006

Jamaica

TT

LDCs

OECS

Source: CARICOM Regional Statistics

Centre-Periphery Model

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

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

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 MailVoice MailOnline information and database retrieval

Electronic Data Interchange (EDI)

Definitions and Scope - WTO

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

Definition and Scope

BahamasFlow (Cable Bahamas), BTC

COMPETITION IN TELECOM SERVICES – MAJOR TELECOM

PROVIDERS

St. Kitts and NevisDigicel, LIME, Orange

JamaicaFlow, Digicel, LIME, Claro

HaitiDigicel, Conatel TelecoHaitel

SurinameDigicel, Telesur, RTBG

AntiguaDigicel, LIME

BarbadosDigicel, LIMETeleBarbados, Antilles Crossing

BelizeDigicel, Belize Telecom Ltd.Speednet

DominicaDigicel, LIME, Orange

GrenadaDigicel, LIME, Flow

GuyanaDigicel, GT&T, Cel Star

MontserratLIME

St. LuciaDigicel, LIMEAntilles Crossing

St. VincentDigicel, LIME

TrinidadDigicel, Flow, TSTT, Laqtel

Adapted from Stern, 2006, Promoting Investment in ICTS in the Caribbean. Updated where information is available

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

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

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

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

Countries ranked in the Economist Intelligence Unit’s E-Readiness Index, 2008◦ Jamaica – 49th – 5.17◦ Trinidad and Tobago – 50th – 5.07

Digital Opportunity Index (ITU, 2007)◦ Barbados 27th

◦ Jamaica 55th

◦ Trinidad and Tobago 59th

◦ St. Vincent 69th ◦ Grenada 71st

◦ St. Lucia 73rd

Other Digital Indices

Preliminary SWOT Analysis

“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 Telecommunications Policy, 2000 The Office of Utilities Regulation Act (1995)

Telecommunications Policy, 2007National Information and Communications Technology Strategy, 2006

Barbados Telecommunications Act, 2001Fair 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)

Country Legislation Policy

Guyana Telecommunications ACT, 1990The Public Utilities Commission Act (1999) Post and Telegraph Act Cap.47.01

National Development Strategy (2001-2010)

OECS Telecommunications Act - St. Lucia, 2000 - St. Vincent and Grenadines, 2000 - 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)

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

The Global Policy Framework

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

The Regional Policy Framework

Source: Green Paper - Action Plan for Telecommunications/ICT Services in CARICOM, 2007

Key Issues and Challenges

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

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

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

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

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

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

The Strategic Planning Framework

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

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

E-Powering JamaicaE-Powering JamaicaNational ICT Strategic Plan 2007-2012National ICT Strategic Plan 2007-2012

Prepared for Prepared for Central Information Technology Office (CITO)Central Information Technology Office (CITO)

Ministry of Industry, Technology, Energy and Commerce, Government Ministry of Industry, Technology, Energy and Commerce, Government of Jamaicaof Jamaica

by by Hopeton Dunn Ph.D. and Evan W. Duggan Ph.D.Hopeton Dunn Ph.D. and Evan W. Duggan Ph.D.Mona School of Business UWI, November 2006Mona School of Business UWI, November 2006

Bridging the Bridging the Digital DivideDigital Divide

National Development Plans

Image Sources: http://www.broadcastingcommission.org/documents/2007/Vision2030.pdf

http://vision2020.info.tt/

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

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

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

Consultative Approach

Intermittent drafts to be reviewed in 3-4 consultations to be held at different locations in the region◦Jamaica◦Trinidad◦ECTEL

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

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