Convergence in Information and Communication Technology

Rajendra Singh

Description

Growth in the information and communication technology (ICT) sector has exploded over the past 20 years. Continuous dynamic market and technology developments in this sector have led to a phenomenon known as convergence, which is defined in this volume as the erosion of boundaries between previously separate ICT services, networks, and business practices. Some examples include cable television networks that offer phone service, Internet television, and mergers between media and telecommunications firms.
The results are exciting and hold significant promise for developing countries, which can benefit from expanded access, greater competition, and increased investments. However, convergence in ICT is challenging traditional policy and regulatory frameworks. With convergence occurring in countries across the spectrum of economic development, it is critical that policy makers and regulators understand and respond in ways that maximize the benefits while mitigating the risks.
This volume analyzes the strategic and regulatory dimensions of convergence. It offers policy makers and regulators examples from countries around the world as they address this phenomenon. The authors suggest that countries that enable convergence are likely to reap the greater rewards, but the precise nature of the response will vary by country. Hence, this book offers global principles that should be tailored to local circumstances as regulatory frameworks evolve to address convergence.

Informations

• Publié par: world-bank-publications
• Publié le: 23 février 2010
• Nombre de lectures: 27
• EAN13: 9780821381717
• Langue: English

Extrait

STRATEGIC AND REGULATORY
CONSIDERATIONS
Rajendra Singh and Siddhartha RajaSTRATEGIC AND REGULATORY
CONSIDERATIONS
Rajendra Singh and Siddhartha Raja© 2010 T e International Bank for Reconstruction and Development / T e World Bank
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ISBN: 978-0-8213-8169-4
eISBN: 978-0-8213-8171-7
DOI: 10.1596/978-0-8213-8169-4
Library of Congress Cataloging-in-Publication Data
Convergence in information and communication technology : strategic and regulatory
considerations /Rajendra Singh and Siddhartha Raja.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-8169-4 — ISBN 978-0-8213-8171-7 (electronic)
1. Information technology. 2. Telecommunication. I. Singh, Rajendra, 1958- II. Raja,
Siddhartha, 1980-
HC79.I55C6744 2009
303.48'33—dc22 2009044651Contents
Foreword vii
Acknowledgments ix
About the Authors xi
Abbreviations xiii
1 Introduction 1
Convergence Continues to Gain Momentum Worldwide 1
Responding to Convergence 4
Notes 7
2 Thinking Strategically about ICT Convergence 9
Understanding Convergence 9
Convergence Is Reality 10
Opportunities and Challenges of Convergence for the ICT Sector 14
Options for Policy Responses 20
Nothing Endures but Change 30
Notes 31
3 Emerging Regulatory Responses to Multiple Play 33
Supply of and Demand for Multiple-Play Services Are Growing 34
Multiple-Play Challenges in Legacy Regulatory Frameworks 36
What Role Should Regulatory Frameworks Play? 38
Implementing the Regulatory Response 39
Crucial Principles for an Enabling Regulatory Environment 41
Authorizations 49
Spectrum Management 63
Interconnection and Access 72
Universal Service 85
vCONTENTS
Regulatory Agencies 93
Conclusion 98
Notes 101
References and Other Resources 105
Index 117
Boxes
2.1 Convergence in Developing Countries: A Few Examples 12
2.2 The Impact of an Enabling Environment for
Convergence: Wireline Telephony and Job Creation 26
3.1 Examples of Multiple Play in Developing Countries 35
3.2 Consultations Can Build Support for and Strengthen
Regulatory Responses 40
3.3 How Competition in Telecommunications Affects
Growth and Consumer Costs: Lessons from India
and the United States 45
3.4 The Benefits of an Open Licensing Regime:
The Case of VoIP 53
3.5 Malaysia’s Simplified Licensing Framework 57
3.6 Japan’s Move to an IP-Based Environment 80
3.7 The Potential Gap in Next-Generation Networks 91
Figures
3.1 Globally, Mobile Telephones Surpassed
Fixed Lines in 2002 64
3.2 Many Cellular Operators Derive a Large Share
of Revenues from Wireless Data Services 66
Tables
2.1 Forms of ICT Convergence 11
2.2 Government Responses to Convergence around
the World 22
3.1 Some Examples of Regulatory Impediments
to Multiple Play 38
3.2 Summary Results of a Survey of Six Countries 42
3.3 Evolving License Types to Authorize Service
Providers’ Operations 50
viForeword
The information and communication technology (ICT) sector has
experienced explosive growth over the past two decades. There are
over 4.5 billion mobile phone subscriptions globally, the Internet has
grown to include more than a billion people, and high-speed broad-
band networks reach more than 400 million subscribers. In short,
ICT now permeates every aspect of social, political, and economic
relationships. Many of these exciting developments were possible
because of policy and regulatory frameworks that spurred investment,
liberalization, and competition in ICT. Continuous dynamic market
and technology developments have led to a phenomenon called
“convergence,” which is the focus of this book. The main finding is
that developing countries can benefit tremendously from the forces
of convergence provided that policy makers create the same types of
favorable conditions that promoted the initial growth of the sector.
The ICT convergence phenomenon entails different aspects. At
the technology level, convergence allows delivery of multimedia
communications across a range of networks that were traditionally
vertically separated. This fundamentally alters the business of ICT:
infrastructure, services, companies, content, and devices can now
interact and work together in new, unprecedented ways, opening
markets, challenging existing structures, and allowing innovative
business models. At a different level, we are witnessing cross-sector
convergence, whereby many social and business services are being
viiFOREWORD
superimposed and enabled over the rapidly proliferating cellular
network platforms, such as mobile banking.
This book proposes that countries have much to gain if they under-
stand and recognize the emerging forces of convergence and if they
create the appropriate conditions for it to flourish. Although con-
vergence may increase the complexity of market structures, it will
nevertheless help extend access to a broader range of affordable ICT
services, support innovation, and open new, unforeseen opportuni-
ties. Indeed, some of these benefits are already being realized in the
developing world. For example, mobile phones now offer traditionally
underserved populations an opportunity to access Internet services, as
cable television networks are also generating greater revenues from
converged services: voice, Internet, and media. Yet, while the promise
of convergence is tremendous, the pace and magnitude of change are
challenges for those who are tasked with regulating the ICT sector.
The absence of a strategic response can hamper competition and
discourage investment. This volume proposes certain policy options
and guiding principles that could help governments explore strategic
ways to mitigate some of the risks associated with convergence while
maximizing the benefits and opportunities that it can offer. It sug-
gests that governments should liberalize their markets further, by
promoting competition and allowing technologies to deliver all that
they can. At the same time, the book recognizes that there are no
universal or global solutions, with convergence occurring across such
a wide range of ICT networks and markets. As such, any ICT policy
or business solution should be tailored to the local environment and
to the peculiarities of the specific situation.
The World Bank Group remains committed to supporting its client
countries as they create enabling policy and regulatory frameworks,
deepen ICT sector reforms, and promote private participation and
investments to ride the next wave of technological advancement.
Mohsen A. Khalil
Director, Global Information and Communication Technologies
The World Bank Group
viii